Document:

Unassociated Document

    

    

    

    

    

    

    

    

    North
      Central Bancshares, Inc.

    

    2006
      Stock Incentive Plan

    

    

    

    

    

    

    

    

    Adopted
      February 24, 2006

    Effective
      as of April 28, 2006

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF CONTENTS

    
 

    
      
        	
                Article
                  I 

                Purpose

                 

              
	
                Section
                  1.1

              	
                General
                  Purpose of the Plan

                 

              
	
                Article
                  II 

                Definitions

                 

              
	
                Section
                  2.1

              	
                Award
                  Notice

              
	
                Section
                  2.2

              	
                Bank

              
	
                Section
                  2.3

              	
                Beneficiary

              
	
                Section
                  2.4

              	
                Board

              
	
                Section
                  2.5

              	
                Change
                  in Control

              
	
                Section
                  2.6

              	
                Code

              
	
                Section
                  2.7

              	
                Committee

              
	
                Section
                  2.8

              	
                Company

              
	
                Section
                  2.9

              	
                Covered
                  Employee

              
	
                Section
                  2.10

              	
                Disability

              
	
                Section
                  2.11

              	
                Disinterested
                  Board Member

              
	
                Section
                  2.12

              	
                Early
                  Retirement

              
	
                Section
                  2.13

              	
                Earliest
                  Exercise Date

              
	
                Section
                  2.14

              	
                Effective
                  Date

              
	
                Section
                  2.15

              	
                Eligible
                  Employee

              
	
                Section
                  2.16

              	
                Eligible
                  Individual

              
	
                Section
                  2.17

              	
                Employer

              
	
                Section
                  2.18

              	
                Exchange
                  Act

              
	
                Section
                  2.19

              	
                Exercise
                  Period

              
	
                Section
                  2.20

              	
                Exercise
                  Price

              
	
                Section
                  2.21

              	
                Fair
                  Market Value

              
	
                Section
                  2.22

              	
                Family
                  Member

              
	
                Section
                  2.23

              	
                Incentive
                  Stock Option

              
	
                Section
                  2.24

              	
                Non-Qualified
                  Stock Option

              
	
                Section
                  2.25

              	
                Option

              
	
                Section
                  2.26

              	
                Option
                  Agreement

              
	
                Section
                  2.27

              	
                Option
                  Holder

              
	
                Section
                  2.28

              	
                Parent

              
	
                Section
                  2.29

              	
                Performance
                  Goal

              
	
                Section
                  2.30

              	
                Performance
                  Measurement Period

              
	
                Section
                  2.31

              	
                Performance-Based
                  Restricted Stock Award

              
	
                Section
                  2.32

              	
                Permitted
                  Transferee

              
	
                Section
                  2.33

              	
                Person

              
	
                Section
                  2.34

              	
                Plan

              
	
                Section
                  2.35

              	
                Recipient

              
	
                Section
                  2.36

              	
                Restricted
                  Stock Award

              
	
                Section
                  2.37

              	
                Retirement

              
	
                Section
                  2.38

              	
                SAR
                  Agreement

              
	
                Section
                  2.39

              	
                Service

              
	
                Section
                  2.40

              	
                Share

              
	
                Section
                  2.41

              	
                Stock
                  Appreciation Right

              
	
                Section
                  2.42

              	
                Subsidiary

              
	
                Section
                  2.43

              	
                Termination
                  for Cause

              
	
                Section
                  2.44

              	
                Vesting
                  Date

                 

              
	
                Article
                  III 

                Available
                  Shares

                 

              
	
                Section
                  3.1

              	
                Shares
                  Available under the Plan

              
	
                Section
                  3.2

              	
                Shares
                  Available for Options

              
	
                Section
                  3.3

              	
                Shares
                  Available for Restricted Stock Awards

              
	
                Section
                  3.4

              	
                Shares
                  Available for Stock Appreciation Right

              
	
                Section
                  3.5

              	
                Reduction
                  in Shares Authorized

                 

              
	
                Article
                  IV 

                Administration

                 

              
	
                Section
                  4.1

              	
                Committee

              
	
                Section
                  4.2

              	
                Committee
                  Action

              
	
                Section
                  4.3

              	
                Committee
                  Responsibilities

                 

              
	
                Article
                  V 

                Stock
                  Options

                 

              
	
                Section
                  5.1

              	
                Grant
                  of Options

              
	
                Section
                  5.2

              	
                Size
                  of Option

              
	
                Section
                  5.3

              	
                Exercise
                  Price

              
	
                Section
                  5.4

              	
                Exercise
                  Period; Earliest Exercise Date

              
	
                Section
                  5.5

              	
                Vesting
                  Date

              
	
                Section
                  5.6

              	
                Additional
                  Restrictions on Incentive Stock Options

              
	
                Section
                  5.7

              	
                Method
                  of Exercise

              
	
                Section
                  5.8

              	
                Limitations
                  on Options

                 

              
	
                Article
                  VI 

                Restricted
                  Stock Awards

                 

              
	
                Section
                  6.1

              	
                In
                  General

              
	
                Section
                  6.2

              	
                Vesting
                  Date

              
	
                Section
                  6.3

              	
                Performance
                  Based Restricted Stock Awards

              
	
                Section
                  6.4

              	
                Dividend
                  Rights

              
	
                Section
                  6.5

              	
                Voting
                  Rights

              
	
                Section
                  6.6

              	
                Tender
                  Offers

              
	
                Section
                  6.7

              	
                Designation
                  of Beneficiary

              
	
                Section
                  6.8

              	
                Manner
                  of Distribution of Awards

              
	
                Section
                  6.9

              	
                Taxes

                 

              
	
                Article
                  VII 

                Stock
                  Appreciation Rights

                 

              
	
                Section
                  7.1

              	
                Grant
                  of Stock Appreciation Rights

              
	
                Section
                  7.2

              	
                Size
                  of Stock Appreciation Right

              
	
                Section
                  7.3

              	
                Exercise
                  Price

              
	
                Section
                  7.4

              	
                Exercise
                  Period

              
	
                Section
                  7.5

              	
                Vesting
                  Date

              
	
                Section
                  7.6

              	
                Method
                  of Exercise

              
	
                Section
                  7.7

              	
                Beneficiaries

                 

              
	
                Article
                  VIII 

                Special
                  Tax Provisions

                 

              
	
                Section
                  8.1

              	
                Tax
                  Withholding Rights

              
	
                Section
                  8.2

              	
                Code
                  Section 83(b) Elections

              
	
                Section
                  8.3

              	
                Election
                  to Defer Income Tax Liability Pursuant to Deferred Compensation
                  Program

                 

              
	
                Article
                  IX 

                Amendment
                  and Termination

                 

              
	
                Section
                  9.1

              	
                Termination

              
	
                Section
                  9.2

              	
                Amendment

              
	
                Section
                  9.3

              	
                Permitted
                  Adjustments

                 

              
	
                Article
                  X 

                Miscellaneous

                 

              
	
                Section
                  10.1

              	
                Status
                  as an Employee Benefit Plan

              
	
                Section
                  10.2

              	
                No
                  Right to Continued Employment

              
	
                Section
                  10.3

              	
                Construction
                  of Language

              
	
                Section
                  10.4

              	
                Governing
                  Law

              
	
                Section
                  10.5

              	
                Headings

              
	
                Section
                  10.6

              	
                Non-Alienation
                  of Benefits

              
	
                Section
                  10.7

              	
                Notices

              
	
                Section
                  10.8

              	
                Approval
                  of Shareholders

              

      

      
 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NORTH
      CENTRAL BANCSHARES, INC. 

    2006
      STOCK INCENTIVE PLAN 

    

    

    Article
      I

    

    Purpose

    

    Section
      1.1 General
      Purpose of the Plan.
      The
      purpose of the Plan is to promote the growth and profitability of North Central
      Bancshares, Inc., by providing certain directors, key officers and employees
      of
      North Central Bancshares, Inc. and its Parents and Subsidiaries with an
      incentive to achieve corporate objectives and by attracting and retaining
      individuals of outstanding competence through a participation interest in the
      performance of Common Stock of North Central Bancshares, Inc.

    

    

    Article
      II

    

    Definitions

    

    The
      following definitions shall apply for the purposes of this Plan, unless a
      different meaning is plainly indicated by the context:

    

    Section
      2.1 Award
      Notice
      means,
      with respect to a particular Restricted Stock Award, a written instrument
      evidencing the Restricted Stock Award and establishing the terms and conditions
      thereof.

    

    Section
      2.2 Bank means
      First Federal Savings Bank of Iowa and any successor thereto.

    

    Section
      2.3 Beneficiary
      means
      the Person designated by an Eligible Individual to receive any Shares subject
      to
      a Restricted Stock Award made to such Eligible Individual that become
      distributable, or to have the right to exercise any Options or Stock
      Appreciation Rights granted to such Eligible Individual that are exercisable,
      following the Eligible Individual’s death.

    

    Section
      2.4 Board
      means
      the Board of Directors of the Company.

    

    Section
      2.5 Change
      in Control
      means
      any of the following events:

    

    (a) consummation
      by North Central Bancshares, Inc. of a transaction that would result in the
      reorganization, merger or consolidation of North Central Bancshares, Inc. with
      one or more other persons, other than a transaction following
      which:

    

       
      (i)
       at
      least
      51% of the equity ownership interests of the entity resulting from such
      transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated
      under the Exchange Act) in substantially the same relative proportions by
      persons who, immediately prior to such transaction, beneficially owned (within
      the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51%
      of
      the outstanding equity ownership interests in North Central Bancshares, Inc.;
      and

    

    (ii)
       at
      least
      51% of the securities entitled to vote generally in the election of directors
      of
      the entity resulting from such transaction are beneficially owned (within the
      meaning of Rule 13d- 3 promulgated under the Exchange Act) in substantially
      the
      same relative proportions by persons who, immediately prior to such transaction,
      beneficially owned (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) at least 51% of the securities entitled to vote generally in
      the
      election of directors of North Central Bancshares, Inc.;

    

    (b)
       the
      acquisition of all or substantially all of the assets of North Central
      Bancshares, Inc. or beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of 20% or more of the outstanding securities
      of North Central Bancshares, Inc. entitled to vote generally in the election
      of
      directors by any person or by any persons acting in concert, or approval by
      the
      stockholders of North Central Bancshares, Inc. of any transaction which would
      result in such an acquisition;

    

    (c)
      a
      complete liquidation or dissolution of North Central Bancshares, Inc., or
      approval by the stockholders of North Central Bancshares, Inc. of a plan for
      such liquidation or dissolution;

    

    (d)
      the
      occurrence of any event if, immediately following such event, at least 50%
      of
      the members of the Board of Directors of North Central Bancshares, Inc. do
      not
      belong to any of the following groups:

    

    (i)
      individuals who were members of the Board of Directors of North Central
      Bancshares, Inc. on the effective date of this Plan; or

    

    (ii)
      individuals who first became members of the Board of Directors of North Central
      Bancshares, Inc. after the effective date of this Plan either:

    

    (A)
       upon
      election to serve as a member of the Board of Directors of North Central
      Bancshares, Inc. by affirmative vote of three-quarters of the members of such
      Board, or of a nominating committee thereof, in office at the time of such
      first
      election; or

    

    (B)
      upon
      election by the stockholders of North Central Bancshares, Inc. to serve as
      a
      member of the Board of North Central Bancshares, Inc., but only if nominated
      for
      election by affirmative vote of three-quarters of the members of the Board
      of
      Directors of North Central Bancshares, Inc., or of a nominating committee
      thereof, in office at the time of such first nomination; provided,
      however,
      that
      such individual's election or nomination did not result from an actual or
      threatened election contest (within the meaning of Rule 14a-11 of Regulation
      14A
      promulgated under the Exchange Act) or other actual or threatened solicitation
      of proxies or consents (within the meaning of Rule 14a-11 of Regulation 14A
      promulgated under the Exchange Act) other than by or on behalf of the Board
      of
      North Central Bancshares, Inc.; or

    

    (e)
      any
      event which would be described in section 2.5(a), (b), (c) or (d) if the term
      "Bank" were substituted for the term "North Central Bancshares, Inc."
      therein.

    

    In
      no
      event, however, shall a Change in Control be deemed to have occurred as a result
      of any acquisition of securities or assets of North Central Bancshares, Inc.,
      the Bank, or a subsidiary of either of them, by North Central Bancshares, Inc.,
      the Bank, or a subsidiary of either of them, or by any employee benefit plan
      maintained by any of them. For purposes of this section 2.5, the term "person"
      shall have the meaning assigned to it under sections 13(d)(3) or 14(d)(2) of
      the
      Exchange Act.

    

    Section
      2.6 Code
      means
      the Internal Revenue Code of 1986 (including the corresponding provisions of
      any
      succeeding law).

    

    Section
      2.7 Committee
      means
      the Committee described in section 4.1.

    

    Section
      2.8 Company means
      North Central Bancshares, Inc., a corporation organized and existing under
      the
      laws of the State of Iowa, and any successor thereto, the Bank and any successor
      thereto, and with the prior approval of the Board, any other savings bank,
      savings and loan association, bank, corporation, financial institution or other
      business organization or institution. 

    

    Section
      2.9 Covered
      Employee
      means,
      for any taxable year of the Company, a person who is, or who the Committee
      determines is reasonably likely to be, a “covered employee” (within the meaning
      of section 162(m) of the Code).

    

    

    Section
      2.10 Disability
      means a
      condition of incapacity, mental or physical, for the performance of services
      which the Committee determines, on the basis of competent medical evidence,
      is
      likely to be permanent, to continue for an indefinite period of at least one
      hundred eighty (180) days, or to result in death.

    

    

    Section
      2.11 Disinterested
      Board Member
      means a
      member of the Board who: (a) is not a current employee of the Company or a
      subsidiary, (b) is not a former employee of the Company who receives
      compensation for prior services (other than benefits under a tax-qualified
      retirement plan) during the taxable year, (c) has not been an officer of the
      Company, (d) does not receive remuneration from the Company or a subsidiary,
      either directly or indirectly, in any capacity other than as a director except
      in an amount for which disclosure would not be required pursuant to Item 404(a)
      of the proxy solicitation rules of the Securities and Exchange Commission and
      (e) does not possess an interest in any other transaction, and is not engaged
      in
      a business relationship, for which disclosure would be required pursuant to
      Items 404(a) or (b) of the proxy solicitation rules of the Securities and
      Exchange Commission. The term Disinterested Board Member shall be interpreted
      in
      such manner as shall be necessary to conform to the requirements of section
      162(m) of the Code, Rule 16b-3 promulgated under the Exchange Act and the
      corporate governance standards imposed on compensation committees under the
      listing requirements imposed by any national securities exchange on which the
      Company lists or seeks to list Shares. 

    

    Section
      2.12 Early
      Retirement
      means,
      in the case of any Recipient, termination of all Service for the Employers
      at or
      after attainment of age 55 and the completion of at least ten consecutive years
      of Service to the Employers. 

    

    Section
      2.13 Earliest
      Exercise Date
      means,
      with respect to an Option, the earliest date on which the Option may be
      exercised. The Earliest Exercise Date may, but need not, be the same as the
      Option’s Vesting Date.

    

    

    Section
      2.14 Effective
      Date
      means
      April 28, 2006.

    

    

    Section
      2.15 Eligible
      Employee
      means
      any employee of the Company, or of a Parent or Subsidiary, whom the Committee
      may determine to be a key officer or employee and select to receive a Restricted
      Stock Award or a grant of an Option or Stock Appreciation Right pursuant to
      the
      Plan. 

    

    

    Section
      2.16 Eligible
      Individual
      means:
      (a) any Eligible Employee; and (b) any non-employee director of the Company
      or a
      Parent or Subsidiary. 

    

    Section
      2.17 Employer
      means
      the Company, the Bank and any successor thereto and, with the prior approval
      of
      the Board, and subject to such terms and conditions as may be imposed by the
      Board, any other savings bank, savings and loan association, bank, corporation,
      financial institution or other business organization or institution. With
      respect to any Eligible Individual, the Employer shall mean the entity which
      employs such person or upon whose board of directors such person
      serves.

    

    Section
      2.18 Exchange
      Act
      means
      the Securities Exchange Act of 1934, as amended. 

    

    Section
      2.19 Exercise
      Period
      means
      the period during which an Option or Stock Appreciation Right may be exercised.
      

    

    

    Section
      2.20 Exercise
      Price
      means
      the price per Share at which Shares subject to an Option may be purchased upon
      exercise of the Option and on the basis of which the payment due upon exercise
      of a Stock Appreciation Right is computed. 

    

    

    Section
      2.21 Fair
      Market Value
      means,
      with respect to a Share on a specified date: 

    

    (a) the
      final
      reported sales price on the date in question (or if there is no reported sale
      on
      such date, on the last preceding date on which any reported sale occurred)
      as
      reported in the principal consolidated reporting system with respect to
      securities listed or admitted to trading on the principal United States
      securities exchange on which the Shares are listed or admitted to trading,
      as of
      the close of the market in New York and without regard to after-hours trading
      activity; or

    

    (b) if
      the
      Shares are not listed or admitted to trading on any such exchange, the closing
      bid quotation with respect to a Share on such date, as of the close of the
      market in New York and without regard to after-hours trading activity, on the
      National Association of Securities Dealers Automated Quotations System, or,
      if
      no such quotation is provided, on another similar system, selected by the
      Committee, then in use; or

    

    (c) if
      sections 2.21(a) and (b) are not applicable, the fair market value of a Share
      as
      the Committee may determine.

    

    Section
      2.22 Family
      Member
      means,
      with respect to any Eligible Individual: (a) any of the Eligible Individual’s
      children, stepchildren, grandchildren, parents, stepparents, grandparents,
      spouses, former spouses, siblings, nieces, nephews, mothers-in-law,
      fathers-in-law, sons-in-law, daughters-in-law, brothers-in-law or
      sisters-in-law, including relationships created by adoption; (b) any natural
      person sharing the Eligible Individual’s household (other than as a tenant or
      employee, directly or indirectly, of the Eligible Individual); (c) a trust
      in
      which any combination of the Eligible Individual and Persons described in
      section 2.22(a) and (b) own more than fifty percent (50%) of the beneficial
      interests; (d) a foundation in which any combination of the Eligible Individual
      and Persons described in sections 2.22(a) and (b) control management of the
      assets; or (e) any other corporation, partnership, limited liability company
      or
      other entity in which any combination of the Eligible Individual and Persons
      described in sections 2.22(a) and (b) control more than fifty percent (50%)
      of
      the voting interests.

    

    Section
      2.23 Incentive
      Stock Option
      means a
      right to purchase Shares that is granted to an Eligible Employee pursuant to
      section 5.1, that is designated by the Committee to be an Incentive Stock Option
      and that is intended to satisfy the requirements of section 422 of the Code.
      

    

    Section
      2.24 Non-Qualified
      Stock Option means
      a
      right to purchase Shares that is either (a) granted to an Eligible Individual
      who is not an Eligible Employee or (b) granted to an Eligible Employee and
      either (i) is not designated by the Committee to be an Incentive Stock Option,
      or (ii) does not satisfy the requirements of section 422 of the Code.

    

    Section
      2.25 Option
      means
      either an Incentive Stock Option or a Non-Qualified Stock Option. 

    

    Section
      2.26 Option
      Agreement
      means a
      written instrument evidencing an Option granted under the Plan.

     

    Section
      2.27 Option
      Holder
      means,
      at any relevant time with respect to an Option, the person having the right
      to
      exercise the Option.

     

    Section
      2.28 Parent
      means
      any entity, whether or not incorporated, in an unbroken chain of entities ending
      with the Company where each entity other than the first entity in the unbroken
      chain owns stock or other equity interests in one of the other entities in
      the
      unbroken chain possessing fifty percent (50%) or more of the combined voting
      power of all of the other entity’s outstanding stock or other interests that
      vote generally in the election of the other entity’s directors or other
      governing body.

    

    Section
      2.29 Performance
      Goal
      means,
      with respect to any Performance-Based Restricted Stock Award, the performance
      goal or performance goal(s) established pursuant to section 6.3(a), the
      attainment of which is a condition of vesting of the Performance-Based
      Restricted Stock Award.

    

    Section
      2.30 Performance
      Measurement Period
      means,
      with respect to any Performance Goal, the period of time over which attainment
      of the Performance Goal is measured. 

    

    Section
      2.31 Performance-Based
      Restricted Stock Award
      means a
      Restricted Stock Award to which section 6.3 is applicable. 

    

    Section
      2.32 Permitted
      Transferee
      means,
      with respect any Recipient, a Family Member of the Recipient to whom an Option
      has been transferred in accordance with section 5.8.

    

    Section
      2.33 Person
      means an
      individual, a corporation, a partnership, a limited liability company, an
      association, a joint-stock company, a trust, an estate, an unincorporated
      organization and any other business organization or
      institution.

    

    Section
      2.34 Plan
      means
      the North Central Bancshares, Inc. 2006 Stock Incentive Plan, as amended from
      time to time.

    

    Section
      2.35 Recipient
      means
      the person to whom an Option or Stock Appreciation Right is granted or a
      Restricted Stock Award is made.

    

    Section
      2.36 Restricted
      Stock Award
      means an
      award of Shares pursuant to Article VI.

    

    Section
      2.37 Retirement
      means:
      (a) termination of Service with the Employer in all capacities at or after
      attaining age 65 or (b) Early Retirement. No termination of Service shall be
      deemed a Retirement unless the terminating individual enters into a retirement
      agreement with the Employer, in form and substance satisfactory to the
      Committee, pursuant to which he agrees to provide limited transition services
      to
      the Employer on a consulting basis and/or abide by non-competition,
      confidentiality, non-derogation and non-disturbance covenants prescribed by
      the
      Committee for a fixed period specified by the Committee not to exceed two
      years.

    

    Section
      2.38 SAR
      Agreement
      means a
      written instrument evidencing a Stock Appreciation Right granted under the
      Plan.

    

    Section
      2.39 Service
      means,
      unless the Committee provides otherwise in an Option Agreement or SAR Agreement
      or Restricted Stock Award Notice, service in any capacity as a common-law
      employee, consultant or non-employee director to the Company or a Parent or
      Subsidiary.

    

    Section
      2.40 Share
      means a
      share of Common Stock, par value $.01 per share, of the North Central
      Bancshares, Inc. 

    

    Section
      2.41 Stock
      Appreciation Right
      means
      the right upon exercise to receive, in cash or Shares, the amount equal to
      the
      excess (if any) of (a) the Fair Market Value of a Share on the date of exercise
      over (b) the Exercise Price. 

    

    Section
      2.42 Subsidiary
      means
      any entity, whether or not incorporated, in an unbroken chain of entities
      beginning with the Company where each entity other than the last entity in
      the
      unbroken chain owns stock or other equity interests in one of the other entities
      in the unbroken chain possessing fifty percent (50%) or more of the combined
      voting power of all of the other entity’s outstanding stock or other interests
      that vote generally in the election of the other entity’s directors or other
      governing body.

    

    Section
      2.43 Termination
      for Cause means
      one
      of the following:

    

    (a) for
      an
      Eligible Individual who is not an officer or employee of any bank or savings
      institution regulated by the Office of Thrift Supervision, termination of
      employment with the Employer upon the occurrence of any of the following:

    

    (i) the
      employee intentionally engages in dishonest conduct in connection with his
      performance of services for the Employer resulting in his conviction of or
      plea
      of guilty or nolo contendere to a felony;

     

    (ii) the
      employee is convicted of, or pleads guilty or nolo contendere to, a felony
      or
      any crime involving moral turpitude; 

     

    (iii) the
      employee willfully fails or refuses to perform his duties under any employment
      or retention agreement and fails to cure such breach within sixty (60) days
      following written notice thereof from the Employer; 

     

    (iv) the
      employee breaches his fiduciary duties to the Employer for personal profit;
      or

     

    (v) the
      employee’s willful breach or violation of any law, rule or regulation (other
      than traffic violations or similar offenses), or final cease and desist order
      in
      connection with his performance of services for the Employer;

     

    (b) for
      an
      Eligible Individual who is an officer or employee of a bank or savings
      institution regulated by the Office of Thrift Supervision, termination of
      employment for personal dishonesty, incompetence, willful misconduct, breach
      of
      fiduciary duty involving personal profit, intentional failure to perform stated
      duties, willful violation of any law, rule or regulation (other than traffic
      violations or similar offenses) or final cease and desist order, or for any
      reason constituting cause for termination under any written employment agreement
      between the Employer and such Eligible Employee, in each case as measured
      against standards generally prevailing at the relevant time in the savings
      and
      community banking industry;

    

    (c) for
      an
      Eligible Individual who is a non-employee director, removal for cause under
      the
      terms of the laws or any law, rule or regulation applicable to the entity upon
      whose board of directors the individual serves as a non-employee
      director.

    

    Section
      2.44 Vesting
      Date
      means
      the date on which an Option, Stock Appreciation Right, Restricted Stock Award,
      or Shares acquired upon exercise of an Option cease to be forfeitable upon
      termination of the Recipient’s Service.

    

    

    

    Article
      III

    

    Available
      Shares

    

    Section
      3.1 Shares
      Available under the Plan.

    

    Subject
      to section 9.3, the maximum aggregate number of Shares which may be issued
      for
      Restricted Stock Awards and upon the exercise of Options and Stock Appreciation
      Rights shall be 125,000 Shares
      and the maximum aggregate number of Options and Stock Appreciation Rights that
      may be granted to one individual in any calendar year shall be 12,500. The
      maximum aggregate number of Restricted Stock Awards that may be granted to
      one
      individual in any calendar year shall be 6,250 Shares.

    

    Section
      3.2 Shares
      Available for Options.

    

    Subject
      to section 9.3, the maximum aggregate number of Shares which may be issued
      upon
      exercise of Options shall be 125,000 Shares,
      and the maximum aggregate number of Options which may be granted to any one
      individual in any calendar year shall be 12,500 Options.

    

    Section
      3.3 Shares
      Available for Restricted Stock Awards.

    

    Subject
      to section 9.3, the maximum number of Shares which may be issued as Restricted
      Stock Awards under the Plan shall be 100,000 Shares and the maximum aggregate
      number of Shares which may be granted as Restricted Stock Awards to any one
      individual in any calendar year shall be 6,250 Shares.

    

    Section
      3.4 Shares
      Available for Stock Appreciation Rights.

    

    Subject
      to section 9.3, the maximum aggregate number of Shares which may be issued
      upon
      exercise of Stock Appreciation Rights shall be 125,000 and
      the
      maximum number
      of
      Stock Appreciation Rights which may be granted under the Plan and to any one
      individual in any calendar year shall be 12,500 Stock
      Appreciation Rights.

    

    Section
      3.5 Reduction
      in Shares Authorized.

    

    The
      maximum number of Shares authorized under sections 3.1, 3.2, 3.3 or 3.4 as
      of
      any date (or for any calendar date) shall be reduced by one share for each
      Option, Stock Appreciation Right or Restricted Stock Award granted and
      outstanding or unexercised under this Plan as of such date (or for the
      applicable calendar year) and shall be increased by one Share for each Option,
      Stock Appreciation Right or Restricted Stock Award that has been forfeited
      or
      that has expired without being exercised as of such date (or for the applicable
      calendar year).

    

    

    Article
      IV

    

    Administration

    

    Section
      4.1 Committee.

    

    (a) Subject
      to section 4.1(b), the Plan shall be administered by the members of the
      Compensation Committee of North Central Bancshares, Inc. who are Disinterested
      Board Members. If the Committee consists of fewer than two Disinterested Board
      Members, then the Board shall appoint to the Committee such additional
      Disinterested Board Members as shall be necessary to provide for a Committee
      consisting of at least two Disinterested Board Members.

    

    (b) The
      Board
      may, in its discretion, take any action and exercise any power, privilege or
      discretion conferred on the Committee under the Plan with the same force and
      effect under the Plan as if done or exercised by the Committee.

    

    (c) No
      member
      of the Committee on the Board shall participate in any action taken by such
      body
      under the Plan if he or she is personally affected thereby, unless all members
      of the Committee or Board, as applicable, are similarly affected.

    

    Section
      4.2 Committee
      Action.

    

    The
      Committee shall hold such meetings, and may make such administrative rules
      and
      regulations, as it may deem proper. A majority of the members of the Committee
      shall constitute a quorum, and the action of a majority of the members of the
      Committee present at a meeting at which a quorum is present, as well as actions
      taken pursuant to the unanimous written consent of all of the members of the
      Committee without holding a meeting, shall be deemed to be actions of the
      Committee. All actions of the Committee shall be final and conclusive and shall
      be binding upon the Company and all other interested parties. Any Person dealing
      with the Committee shall be fully protected in relying upon any written notice,
      instruction, direction or other communication signed by the Secretary of the
      Committee and one member of the Committee, by two members of the Committee
      or by
      a representative of the Committee authorized to sign the same in its behalf.
      

    

    Section
      4.3 Committee
      Responsibilities.

    

    Subject
      to the terms and conditions of the Plan and such limitations as may be imposed
      by the Board, the Committee shall be responsible for the overall management
      and
      administration of the Plan and shall have such authority as shall be necessary
      or appropriate in order to carry out its responsibilities, including, without
      limitation, the authority: 

    

    (a) to
      interpret and construe the Plan, and to determine all questions that may arise
      under the Plan as to eligibility for participation in the Plan, the number
      of
      Shares subject to the Restricted Stock Awards, Stock Appreciation Rights or
      Options, if any, to be granted, and the terms and conditions
      thereof;

    

    (b) with
      the
      consent of the Recipient or Beneficiary, as applicable, amend or modify the
      terms of any outstanding Option, Stock Appreciation Right or Restricted Stock
      Award or accelerate or defer the Vesting Date or Earliest Exercise Date
      thereof;

    

    (c) to
      adopt
      rules and regulations and to prescribe forms for the operation and
      administration of the Plan; and 

    

    (d) to
      take
      any other action not inconsistent with the provisions of the Plan that it may
      deem necessary or appropriate. 

    

    All
      decisions, determinations and other actions of the Committee made or taken
      in
      accordance with the terms of the Plan shall be final and conclusive and binding
      upon all parties having an interest therein.

    

    

    Article
      V

    

    Stock
      Options

    

    Section
      5.1 Grant
      of Options.

    

    (a) Subject
      to the limitations of the Plan, the Committee may, in its discretion, grant
      to
      an Eligible Individual an Option to purchase Shares. An Option for an Eligible
      Employee must be designated as either an Incentive Stock Option or a
      Non-Qualified Stock Option and, if not designated as either, shall be a
      Non-Qualified Stock Option. An Option for an Eligible Individual who is not
      an
      Eligible Employee shall be a Non-Qualified Stock Option.

    

    (b) Any
      Option granted under this section 5.1 shall be evidenced by a written agreement
      which shall:

    

    (i) specify
      the number of Shares covered by the Option determined in accordance with section
      5.2;

    

    (ii) 
      specify
      the Exercise Price, determined in accordance with section 5.3, for the Shares
      subject to the Option; 

    

    (iii) specify
      the Earliest Exercise Date and the Exercise Period determined in accordance
      with
      section 5.4; 

    

    (iv) specify
      the Vesting Date determined in accordance with section 5.5;

    

    (v) set
      forth
      specifically or incorporate by reference the applicable provisions of the Plan;
      and

    

    (vi) contain
      such other terms and conditions not inconsistent with the Plan as the Committee
      may, in its discretion, prescribe with respect to an Option granted to an
      Eligible Individual.

    

    Section
      5.2 Size
      of Option.

    

    Subject
      to section 3.2 and such limitations as the Board may from time to time impose,
      the number of Shares as to which an Eligible Individual may be granted Options
      shall be determined by the Committee, in its discretion. 

    

    Section
      5.3 Exercise
      Price.

    

    The
      price
      per Share at which an Option may be exercised shall be determined by the
      Committee, in its discretion, provided,
      however,
      that
      the Exercise Price shall not be less than the Fair Market Value of a Share
      on
      the date on which the Option is granted.

    

    Section
      5.4 Exercise
      Period; Earliest Exercise Date.

    

    (a) Subject
      to section 5.4(b), the Exercise Period during which an Option may be exercised
      shall commence on the Earliest Exercise Date specified by the Committee in
      the
      Option Agreement (or, if no Earliest Exercise Date is specified in the Option
      Agreement, on the Vesting Date). It shall expire on the date specified in the
      Option Agreement (and in any event no later than the tenth anniversary of the
      date of grant) or, if no date is specified, on the earliest of: 

    

    (i) the
      date
      and time when the Recipient terminates Service for any reason other than the
      Recipient's death, Disability or discharge that is not a Termination for Cause;
      and 

    

    (ii) the
      last
      day of the three-month period that begins on the date and time when the
      Recipient terminates Service due to discharge that is not a Termination for
      Cause;

    

    (iii) 
      the last
      day of the one-year period that begins on the date and time when the Recipient
      terminates Service due to the Recipient's death or Disability; and

    

    (iv) the
      last
      day of the six-year period commencing on the date on which the Option was
      granted.

    

    A
      Recipient’s termination of Service prior to the Earliest Exercise Date of an
      Option shall, unless otherwise provided in the Option Agreement, result in
      the
      Option being canceled without consideration at the close of business on the
      last
      day of Service. An Option that remains unexercised at the close of business
      on
      the last day of the Exercise Period (including but not limited to an Option
      whose Earliest Exercise Date has not occurred) shall be canceled without
      consideration at the close of business on the last day of the Exercise
      Period.

    

    (b) Unless
      otherwise determined by the Committee and specified in the Option
      Agreement:

    

    (i) if
      a
      Change in Control occurs while an Option is outstanding and on or before its
      scheduled expiration date, then for purposes of exercising vested Options,
      the
      date on which the Exercise Period expires shall be extended to the earliest
      to
      occur of: (A) the tenth (10th)
      anniversary of the date the Option was granted; and (B) the third (3rd)
      anniversary of the date of the Change in Control; or any later date determined
      under section 5.4(b)(ii) or (iii);

    

    (ii) if
      a
      Change in Control occurs while an Option is outstanding and on or before its
      Earliest Exercise Date, then solely for the purpose of measuring the Exercise
      Period (but not for purposes of vesting), the Recipient of the Option shall
      be
      deemed to continue in Service through the applicable Earliest Exercise Date,
      and
      the date on which the Exercise Period expires shall be extended to the earliest
      to occur of: (A) the tenth (10th)
      anniversary of the date the Option was granted; (B) the third (3rd)
      anniversary of the date of the Change in Control; and (C) ninety (90) days
      after
      the Earliest Exercise Date; or any later date determined under section 5.4(b)(i)
      or (iii);

    

    (iii) if,
      on
      the date an Option is otherwise scheduled to expire, the holder of the Option
      may not then exercise the Option or sell Shares on a national securities
      exchange without violating applicable federal, state or local securities laws
      or
      the terms of a securities trading blackout (including but not limited to a
      blackout period established under the Company’s securities trading policy or a
      contractual lockup in connection with a securities offering or other transaction
      involving the Company), the date on which the Exercise Period expires shall
      be
      extended to the earliest to occur of: (A) the tenth (10th)
      anniversary of the date the Option was granted; and (B) ninety (90) days after
      the last day of the securities trading blackout; or any later date determined
      under section 5.4(b)(i) or (ii); and

    

    (iv) the
      Earliest Exercise Date (but not the Vesting Date) of any Option outstanding
      on
      the date of the Recipient’s termination of Service due to death or Disability
      shall be accelerated to the date of such termination of Service provided
      that the
      Recipient of such Option remained in continuous Service during the period
      beginning on the date the Option is granted and ending on the date of
      termination of Service.

    

    Section
      5.5 Vesting
      Date.

    

    (a) Subject
      to section 5.5(b), the Vesting Date for each Option granted under the Plan
      shall
      be the date determined by the Committee and specified in the Option Agreement.
      If no provision for vesting is made in the Option Agreement, the Vesting Date
      shall be:

    

    (i) the
      first
      anniversary of the date of grant, as to 20% of the Shares subject to the Option
      as of the date of grant;

     

    (ii) the
      second anniversary of the date of grant, as to an additional 20% of the Shares
      subject to the Option as of the date of grant;

     

    (iii) the
      third
      anniversary of the date of grant, as to an additional 20% of the Shares subject
      to the Option as of the date of grant;

    

    (iv)  the
      fourth anniversary of the date of grant, as to an additional 20% of the Shares
      subject to the Option as of the date of grant; 

     

    (v)  the
      fifth
      anniversary of the date of grant, as to any remaining balance of the Shares
      subject to the Option as of the date of grant; and

     

    (vi) in
      the
      event of the Recipient's termination of Service due to the Recipient's Death
      or
      Disability, the date of termination of Service, as to any Options otherwise
      scheduled to vest during the period of six months beginning on the date of
      termination.

    

    Failure
      of a Recipient to remain in continuous Service during the period beginning
      on
      the date an Option is granted and ending on the Option’s Vesting Date shall
      result in a cancellation of the Option without consideration at the earliest
      date and time at which the Recipient is not in continuous Service.

    

    (b) Except
      to
      the extent that an applicable Option Agreement expressly provides otherwise,
      each Option granted to an Eligible Employee that is outstanding under the Plan
      on the date on which a Change of Control occurs shall, on such date, be 100%
      vested and exercisable. 

    

    Section
      5.6 Additional
      Restrictions on Incentive Stock Options.

     

    An
      Option
      granted to an Eligible Employee designated by the Committee to be an Incentive
      Stock Option shall be subject to the following provisions:

     

    (a) If,
      for
      any calendar year, the sum of (i) plus (ii) exceeds $100,000, where (i) equals
      the Fair Market Value (determined as of the date of the grant) of Shares subject
      to an Option intended to be an Incentive Stock Option which first become
      available for purchase during such calendar year, and (ii) equals the Fair
      Market Value (determined as of the date of grant) of Shares subject to any
      other
      options intended to be Incentive Stock Options and previously granted to the
      same Eligible Employee which first become exercisable in such calendar year,
      then that number of Shares optioned which causes the sum of (i) and (ii) to
      exceed $100,000 shall be deemed to be Shares optioned pursuant to a
      Non-Qualified Stock Option or Non-Qualified Stock Options, with the same terms
      as the Option or Options intended to be an Incentive Stock Option; 

    

    (b) The
      Exercise Price of an Incentive Stock Option granted to an Eligible Employee
      who,
      at the time the Option is granted, owns Shares comprising more than 10% of
      the
      total combined voting power of all classes of stock of the Company shall not
      be
      less than 110% of the Fair Market Value of a Share, and if an Option designated
      as an Incentive Stock Option shall be granted at an Exercise Price that does
      not
      satisfy this requirement, the designated Exercise Price shall be observed and
      the Option shall be treated as a Non-Qualified Stock Option; 

    

    (c) The
      Exercise Period of an Incentive Stock Option granted to an Eligible Employee
      who, at the time the Option is granted, owns Shares comprising more than 10%
      of
      the total combined voting power of all classes of stock of the Company, shall
      expire no later than the fifth anniversary of the date on which the Option
      was
      granted, and if an Option designated as an Incentive Stock Option shall be
      granted for an Exercise Period that does not satisfy this requirement, the
      designated Exercise Period shall be observed and the Option shall be treated
      as
      a Non-Qualified Stock Option;

    

    (d) An
      Incentive Stock Option that is exercised during its designated Exercise Period
      but more than:

    

    (i) three
      (3)
      months after the termination of employment with the Company and all of its
      Parents and Subsidiaries (other than on account of disability within the meaning
      of section 22(e)(3) of the Code or death of the Eligible Employee to whom it
      was
      granted); or 

     

    (ii) one
      (1)
      year after such individual’s termination of employment with the Company, a
      parent or a subsidiary due to disability (within the meaning of section 22(e)(3)
      of the Code) or death; 

    

    may
      be
      exercised in accordance with the terms of the Option but shall at the time
      of
      exercise be treated as a Non-Qualified Stock Option; and 

     

    (e) Except
      with the prior written approval of the Committee, no individual shall dispose
      of
      Shares acquired pursuant to the exercise of an Incentive Stock Option until
      after the later of (i) the second anniversary of the date on which the Incentive
      Stock Option was granted, or (ii) the first anniversary of the date on which
      the
      Shares were acquired. 

    

    Section
      5.7 Method
      of Exercise.

     

    (a) Subject
      to the limitations of the Plan and the Option Agreement, an Option Holder may,
      at any time after the Earliest Exercise Date and during the Exercise Period,
      exercise his or her right to purchase all or any part of the Shares to which
      the
      Option relates; provided,
      however, that
      the
      minimum number of Shares which may be purchased at any time shall be 100, or,
      if
      less, the total number of Shares relating to the Option which remain
      unpurchased. An Option Holder shall exercise an Option to purchase Shares by:
      

    

    (i) giving
      written notice to the Committee, in such form and manner as the Committee may
      prescribe, of his intent to exercise the Option; 

    

    (ii) delivering
      to the Committee full payment, consistent with section 5.7(b), for the Shares
      as
      to which the Option is to be exercised; and 

    

    (iii) satisfying
      such other conditions as may be prescribed in the Option Agreement.

    

    (b) The
      Exercise Price of Shares to be purchased upon exercise of any Option shall
      be
      paid in full:

    

    (i) in
      cash
      (by certified or bank check or such other instrument as the Company may accept);
      or

    

    (ii) if
      and to
      the extent permitted by the Committee, in the form of Shares already owned
      by
      the Option holder for a period of more than six (6) months as of the exercise
      date and having an aggregate Fair Market Value on the date the Option is
      exercised equal to the aggregate Exercise Price to be paid; or

    

    (iii) by
      a
      combination thereof.

    

    If
      permitted by the Committee, payment for any Shares to be purchased upon exercise
      of an Option may also be made by delivering a properly executed exercise notice
      to the Company, together with a copy of irrevocable instructions to a broker
      to
      deliver promptly to the Company the amount of sale or loan proceeds to pay
      the
      purchase price and applicable tax withholding amounts (if any), in which event
      the Shares acquired shall be delivered to the broker promptly following receipt
      of payment. 

    

    (c) When
      the
      requirements of section 5.7(a) and (b) have been satisfied, the Committee shall
      take such action as is necessary to cause the issuance of a stock certificate
      evidencing the Option holder’s ownership of such Shares. The Person exercising
      the Option shall have no right to vote or to receive dividends, nor have any
      other rights with respect to the Shares, prior to the date as of which such
      Shares are transferred to such Person on the stock transfer records of the
      Company, and no adjustments shall be made for any dividends or other rights
      for
      which the record date is prior to the date as of which such transfer is
      effected, except as may be required under section 8.3.

    

    Section
      5.8 Limitations
      on Options.

    

    (a) An
      Option
      by its terms shall not be transferable by any Option Holder, except that (i)
      a
      Recipient may transfer a Non-Qualified Stock Option to the Recipient’s Family
      Members during his lifetime; and (b) any Option Holder may transfer Options
      remaining unexercised at his death to a Beneficiary or by will or by the laws
      of
      descent and distribution. Any permitted transfer to Family Members shall be
      effected by written notice to the Company given in such form and manner as
      the
      Committee may prescribe and shall be recognized only if such notice is received
      by the Company prior to the death of the person giving it. Thereafter, the
      Permitted Transferee shall have, with respect to such Option, all of the rights,
      privileges and obligations which would attach thereunder to the Recipient except
      the right to transfer the Option to Family Members. If a privilege of the Option
      depends on the life, Service, employment or other status of the transferor,
      such
      privilege of the Option for the transferee shall continue to depend on the
      life,
      Service, employment or other status of the transferor. The Committee shall
      have
      full and exclusive authority to interpret and apply the provisions of this
      Plan
      to transferees to the extent not specifically described herein.

    

    (b) The
      Company’s obligation to deliver Shares with respect to an Option shall, if the
      Committee so requests, be conditioned upon the receipt of a representation
      as to
      the investment intention of the Option holder to whom such Shares are to be
      delivered, in such form as the Committee shall determine to be necessary or
      advisable to comply with the provisions of applicable federal, state or local
      law. It may be provided that any such representation shall become inoperative
      upon a registration of the Shares or upon the occurrence of any other event
      eliminating the necessity of such representation. The Company shall not be
      required to deliver any Shares under the Plan prior to (i) the admission of
      such
      Shares to listing on any stock exchange on which Shares may then be listed,
      or
      (ii) the completion of such registration or other qualification under any state
      or federal law, rule or regulation as the Committee shall determine to be
      necessary or advisable. 

    

    (c) An
      Option
      holder may designate a Beneficiary to receive any Options that may be exercised
      after his death. Such designation (and any change or revocation of such
      designation) shall be made in writing in the form and manner prescribed by
      the
      Committee. In the event that the designated Beneficiary dies prior to the Option
      holder, or in the event that no Beneficiary has been designated, any Options
      that may be exercised following the Option holder’s death shall be transferred
      to the executor or administrator of the Option holder’s estate, or if no such
      executor or administrator is appointed within such time as the Committee, in
      its
      sole discretion, shall deem reasonable, to such one or more of the spouse and
      descendants and blood relatives of such deceased person as the Committee may
      select. If the Option holder and his Beneficiary shall die in circumstances
      that
      cause the Committee, in its discretion, to be uncertain which shall have been
      the first to die, the Option holder shall be deemed to have survived the
      Beneficiary.

    

    

    Article
      VI

    

    Restricted
      Stock Awards

    

    Section
      6.1 In
      General.

    

    (a) Each
      Restricted Stock Award shall be evidenced by an Award Notice issued by the
      Committee to the Eligible Individual, which notice shall: 

    

    (i) specify
      the number of Shares covered by the Restricted Stock Award; 

    

    (ii) specify
      the amount (if any) which the Recipient shall be required to pay to the Company
      in consideration for the issuance of such Shares (which shall in no event be
      less than the minimum amount required for such Shares to be validly issued,
      fully paid and non-assessable under applicable law);

    

    (iii) specify
      whether the Restricted Stock Award is a Performance-Based Award and, if it
      is,
      the applicable Performance Goal or Performance Goals;

     

    (iv) specify
      the date of grant of the Restricted Stock Award; and

    

    (v) specify
      the Vesting Date for the Restricted Stock Award;

    

    and
      contain such other terms and conditions not inconsistent with the Plan as the
      Committee may, in its discretion, prescribe. 

    

    (b) All
      Restricted Stock Awards shall be in the form of issued and outstanding Shares
      that shall be either:

    

    (i) registered
      in the name of the Committee or other trustee or custodian for the benefit
      of
      the Recipient and held by the Committee pending the vesting or forfeiture of
      the
      Restricted Stock Award;

    

    (ii) registered
      in the name of Recipient and held by the Committee, together with a stock power
      executed by the Recipient in favor of the Committee, pending the vesting or
      forfeiture of the Restricted Stock Award; or

    

    (iii) registered
      in the name of and delivered to the Recipient.

    

    In
      any
      event, the certificates evidencing the Shares shall at all times prior to the
      applicable Vesting date bear the following legend:

    

    The
      Common Stock evidenced hereby is subject to the terms of Restricted Stock Award
      Notice between North Central Bancshares, Inc. and [Name of Recipient] dated
      [Date] made pursuant to the terms of the North Central Bancshares, Inc. 2006
      Stock Incentive Plan, copies of which are on file at the executive offices
      of
      North Central Bancshares, Inc., and may not be sold, encumbered, hypothecated
      or
      otherwise transferred except in accordance with the terms of such Plan and
      Agreement. 

    

    or
      such
      other restrictive legend as the Committee, in its discretion, may
      specify.

    

    (c) An
      Award
      by its terms shall not be transferable by the Eligible Individual other than
      by
      will or by the laws of descent and distribution, and the Shares granted pursuant
      to such Award shall be distributable, during the lifetime of the Recipient,
      only
      to the Recipient. 

    

    Section
      6.2 Vesting
      Date.

    

    (a) The
      Vesting Date for each Restricted Stock Award shall be determined by the
      Committee and specified in the Award Notice and, if no date is specified in
      the
      Award Notice, shall be the first anniversary of the date of grant as to 20%
      of
      the Shares; the second anniversary of the date of grant as to an additional
      20%
      of the Shares; the third anniversary of the date of grant as to an additional
      20% of the Shares; the fourth anniversary of the date of grant as to an
      additional 20% of the Shares; and the fifth anniversary of the date of grant
      as
      to the remaining balance of the Shares.

    

    (b) Unless
      otherwise determined by the Committee and specified in the Award Notice for
      a
      Restricted Stock Award:

    

    (i) if
      the
      Recipient of a Restricted Stock Award terminates Service prior to the Vesting
      Date for any reason other than death or Disability, any unvested Shares shall
      be
      forfeited without consideration (other than a refund to the Recipient of an
      amount equal to the lesser of the amount (if any) paid by the Recipient for
      the
      Shares being forfeited upon their issuance and the Fair Market Value of such
      Shares on the date of forfeiture);

    

    (ii) if
      the
      Recipient of a Restricted Stock Award terminates Service prior to the Vesting
      Date on account of death or Disability, any unvested Shares that were scheduled
      to vest during the six-month period beginning on the date of termination shall
      become vested on the date of termination of Service; and

    

    (iii) if
      a
      Change in Control occurs prior to the Vesting Date of a Restricted Stock Award
      that is outstanding on the date of the Change in Control, the Vesting Date
      shall
      be accelerated to the date of the Change in Control. 

    

    Section
      6.3 Performance-Based
      Restricted Stock Awards.

    

    (a) At
      the
      time it grants a Performance-Based Restricted Stock Award, the Committee shall
      establish one or more Performance Goals, the attainment of which shall be a
      condition of the Recipient’s right to retain the related Shares. The Performance
      Goals shall be selected from among the following: 

    

    (i) earnings
      per share;

    

    (ii) net
      income;

    

    (iii) return
      on
      average equity;

    

    (iv) return
      on
      average assets;

    

    (v) core
      earnings;

    
      

      (vi) stock
        price;

    

     

    (vii) operating
      income;

    

    (viii) operating
      efficiency ratio;

    

    (ix) net
      interest rate spread;

    

    (x) loan
      production volumes;

    

    (xi) non-performing
      loans;

    

    (xii) cash
      flow;

    

    (xiii) strategic
      business objectives, consisting of one or more objectives based on meeting
      specified cost targets, business expansion goals, and goals relating to
      acquisitions or divestitures;

    

    (xiv) except
      in
      the case of a Covered Employee, any other performance criteria established
      by
      the Committee; and

    

    (xv) any
      combination of (i) through (xiii) above.

    

    Performance
      Goals may be established on the basis of reported earnings or cash earnings,
      and
      consolidated results or individual business units and may, in the discretion
      of
      the Committee, include or exclude extraordinary items and/or the results of
      discontinued operations. Each Performance Goal may be expressed on an absolute
      and/or relative basis, may be based on or otherwise employ comparisons based
      on
      internal targets, the past performance of the Company (or individual business
      units) and/or the past or current performance of other companies.

    

    (b) At
      the
      time it grants a Performance-Based Restricted Stock Award, the Committee shall
      establish a Performance Measurement Period for each Performance Goal. The
      Performance Measurement Period shall be the period over which the Performance
      Goal is measured and its attainment is determined. The Performance Goals must
      be
      established no later than ninety (90) days after the beginning of the
      Performance Measurement Period and in any event during the first twenty-five
      percent (25%) of that Performance Measurement Period. 

    

    (c) As
      promptly as practicable following the end of each Performance Measurement
      Period, the Committee shall determine, on the basis of such evidence as it
      deems
      appropriate, whether the Performance Goals for such Performance Measurement
      Period have been attained and, if they have been attained, shall certify such
      fact in writing. 

    

    (d) If
      the
      Performance Goals for a Performance-Based Restricted Stock Award have been
      attained and certified, the Committee shall either:

    

    (i) if
      the
      relevant Vesting Date has occurred, cause the ownership of the Shares subject
      to
      such Restricted Stock Award, together with all dividends and other distributions
      with respect thereto that have been accumulated, to be transferred on the stock
      transfer records of the Company, free of any restrictive legend other than
      as
      may be required by applicable law, to the Recipient of the Restricted Stock
      Award; or

    

    (ii) in
      all
      other cases, continue the Shares in their current status pending the occurrence
      of the relevant Vesting Date or forfeiture of the Shares.

    

    If
      any
      one or more of the relevant Performance Goals have not been attained, all of
      the
      Shares subject to such Restricted Stock Award shall be forfeited without a
      consideration (other than a refund to the Recipient or his estate of an amount
      equal to the lesser of the amount (if any) paid by the Recipient for the Shares
      being forfeited upon their issuance and the Fair Market Value of such Shares
      on
      the date of forfeiture). 

    

    (e) If
      the
      Performance Goals for any Performance Measurement Period shall have been
      affected by special factors (including material changes in accounting policies
      or practices, material acquisitions or dispositions of property, or other
      unusual items) that in the Committee’s judgment should or should not be taken
      into account, in whole or in part, in the equitable administration of the Plan,
      the Committee may, for any purpose of the Plan, adjust such Performance Goals
      and make payments accordingly under the Plan; provided, however, that any
      adjustments made in accordance with or for the purposes of this section 6.3(e)
      shall be disregarded for purposes of calculating the Performance Goals for
      a
      Performance-Based Restricted Stock Award to a Covered Employee if and to the
      extent that such adjustments would have the effect of increasing the amount
      of
      the Restricted Stock Award to such Covered Employee.

    

    (f) If
      provided by the Committee when a Performance-Based Restricted Stock Award is
      granted, to the extent that the relevant Performance Goals are achieved prior
      to
      the end of the Performance Measurement Period and certified by the Committee,
      a
      vested Performance-Based Restricted Stock Award may be paid at any time
      following such certification.

     

    Section
      6.4 Dividend
      Rights.

    

    Unless
      the Committee determines otherwise with respect to any Restricted Stock Award
      and specifies such determination in the relevant Award Notice, any dividends
      or
      distributions declared and paid with respect to Shares subject to the Restricted
      Stock Award, whether or not in cash, shall be held and accumulated (with
      investment earnings or losses) pending vesting at the same time and subject
      to
      the same terms and conditions as the underlying Shares and, pending vesting,
      shall be accumulated and held in a cash or cash equivalent account.

    

    Section
      6.5 Voting
      Rights.

    

    Unless
      the Committee determines otherwise with respect to any Restricted Stock Award
      and specifies such determination in the relevant Award Notice, voting rights
      appurtenant to the Shares subject to the Restricted Stock Award, shall be
      exercised by the Committee in its discretion.

    

    Section
      6.6 Tender
      Offers.

    

    Unless
      the Committee determines otherwise with respect to any Restricted Stock Award
      and specifies such determination in the relevant Award Notice, each Recipient
      to
      whom a Restricted Stock Award is outstanding shall have the right to respond,
      or
      to direct the response, with respect to the related Shares, to any tender offer,
      exchange offer or other offer made to the holders of Shares. Such a direction
      for any such Shares shall be given by proxy or ballot (if the Recipient is
      the
      beneficial owner of the Shares for voting purposes) or by completing and filing,
      with the inspector of elections, the Trustee or such other person who shall
      be
      independent of the Company as the Committee shall designate in the direction
      (if
      the Recipient is not such a beneficial owner), a written direction in the form
      and manner prescribed by the Committee. If no such direction is given, then
      the
      Shares shall not be tendered.

    

    Section
      6.7 Designation
      of Beneficiary.

    

    An
      Eligible Individual who has received a Restricted Stock Award may designate
      a
      Beneficiary to receive any unvested Shares that become vested on the date of
      his
      death. Such designation (and any change or revocation of such designation)
      shall
      be made in writing in the form and manner prescribed by the Committee. In the
      event that the Beneficiary designated by an Eligible Individual dies prior
      to
      the Eligible Individual, or in the event that no Beneficiary has been
      designated, any vested Shares that become available for distribution on the
      Eligible Individual’s death shall be paid to the executor or administrator of
      the Eligible Individual’s estate, or if no such executor or administrator is
      appointed within such time as the Committee, in its sole discretion, shall
      deem
      reasonable, to such one or more of the spouse and descendants and blood
      relatives of such deceased person as the Committee may select. If the Eligible
      Individual who has received a Restricted Stock Award and his Beneficiary shall
      die in circumstances that cause the Committee, in its discretion, to be
      uncertain which shall have been the first to die, the Option holder shall be
      deemed to have survived the Beneficiary.

    

    Section
      6.8 Manner
      of Distribution of Awards.

    

    The
      Company’s obligation to deliver Shares with respect to a Restricted Stock Award
      shall, if the Committee so requests, be conditioned upon the receipt of a
      representation as to the investment intention of the Eligible Individual or
      Beneficiary to whom such Shares are to be delivered, in such form as the
      Committee shall determine to be necessary or advisable to comply with the
      provisions of applicable federal, state or local law. It may be provided that
      any such representation shall become inoperative upon a registration of the
      Shares or upon the occurrence of any other event eliminating the necessity
      of
      such representation. The Company shall not be required to deliver any Shares
      under the Plan prior to (i) the admission of such Shares to listing on any
      stock
      exchange on which Shares may then be listed, or (ii) the completion of such
      registration or other qualification under any state or federal law, rule or
      regulation as the Committee shall determine to be necessary or advisable.

    

    Section
      6.9 Taxes.

    

    The
      Company or the Committee shall have the right to require any person entitled
      to
      receive Shares pursuant to a Restricted Stock Award to pay the amount of any
      tax
      which is required to be withheld with respect to such Shares, or, in lieu
      thereof, to retain, or to sell without notice, a sufficient number of Shares to
      cover the amount required to be withheld. 

    

    

    Article
      VII

    

    Stock
      Appreciation Rights

    

    Section
      7.1 Grant
      of Stock Appreciation Rights.

    

    (a) Subject
      to the limitations of the Plan, the Committee may, in its discretion, grant
      to
      an Eligible Individual a Stock Appreciation Right. A Stock Appreciation Right
      must be designated as either a tandem Stock Appreciation Right or a stand-alone
      Stock Appreciation Right and, if not so designated, shall be deemed to be a
      stand-alone Stock Appreciation Right. A tandem Stock Appreciation Right may
      only
      be granted at the same time as the Option to which it relates.

    

    (b) Any
      Stock
      Appreciation Right granted under this section 7.1 shall be evidenced by a
      written agreement which shall:

    

    (i) in
      the
      case of a tandem Stock Appreciation Right, relate to the same number of Shares;
      be settled only in Shares; have the same Exercise Price, Exercise Period,
      Vesting Date and other terms and conditions as the Option to which it relates
      and provide that the exercise of the related Option shall be deemed to cancel
      the Stock Appreciation Right for a like number of Shares and that the exercise
      of the Stock Appreciation Right shall be deemed to cancel the related Option
      for
      a like number of Shares;

    

    (ii) in
      the
      case of a stand-alone Stock Appreciation Right:

    

    (A) 
      specify
      the number of Shares covered by the Stock Appreciation Right;

    

    (B) specify
      the Exercise Price, determined in accordance with section 7.3; 

    

    (C) specify
      the Earliest Exercise Date and the Exercise Period; 

    

    (D) specify
      the Vesting Date;

    

    (E) specify
      whether the Stock Appreciation will be settled in cash or in
      Shares;

    

    (F) set
      forth
      specifically or incorporate by reference the applicable provisions of the Plan;
      and

    

    (G) contain
      such other terms and conditions not inconsistent with the Plan as the Committee
      may, in its discretion, prescribe with respect to an Stock Appreciation Right
      granted to an Eligible Individual.

    

    Section
      7.2 Size
      of Stock Appreciation Right.

    

    Subject
      to section 3.4 and such limitations as the Board may from time to time impose,
      the number of Shares as to which an Eligible Individual may be granted
      stand-alone Stock Appreciation Rights shall be determined by the Committee,
      in
      its discretion; provided,
      however, that
      a
      tandem Stock Appreciation Right shall be granted for a number of Shares no
      greater than the number of Shares subject to the related Option.

    

    Section
      7.3 Exercise
      Price.

    

    The
      price
      per Share at which a stand-alone Stock Appreciation Right may be exercised
      shall
      be determined by the Committee, in its discretion, provided,
      however,
      that
      the Exercise Price shall not be less than the Fair Market Value of a Share
      on
      the date on which the Option is granted.

    

    Section
      7.4 Exercise
      Period.

    

    (a) Subject
      to section 7.4(b), the Exercise Period during which a stand-alone Stock
      Appreciation Right may be exercised shall commence on the Vesting Date and
      shall
      expire on the date specified in the SAR Agreement (and in any event no later
      than the tenth anniversary of the date of grant) or, if no date is specified,
      on
      the earliest of: 

     

    (i) the
      date
      and time when the Recipient terminates Service for any reason; and 

     

    (ii) the
      last
      day of the six-year period commencing on the date on which the Option was
      granted.

     

    A
      Recipient’s termination of Service prior to the Vesting Date of a Stock
      Appreciation Right shall, unless otherwise provided in the SAR Agreement, result
      in the Stock Appreciation Right being canceled without consideration at the
      close of business on the last day of Service. A Stock Appreciation Right that
      is
      vested and remains unexercised at the close of business on the last day of
      the
      Exercise Period shall be deemed automatically exercised on such date.

    

    Section
      7.5 Vesting
      Date.

    

    (a) Subject
      to section 7.5(b), the Vesting Date for each stand-alone Stock Appreciation
      Right granted under the Plan shall be the date determined by the Committee
      and
      specified in the SAR Agreement or, if no provision for vesting is made in the
      SAR Agreement, the Vesting Date shall be:

    

    (i) the
      first
      anniversary of the date of grant, as to 20% of the Shares subject to the Stock
      Appreciation Right as of the date of grant;

     

    (ii) the
      second anniversary of the date of grant, as to an additional 20% of the Shares
      subject to the Stock Appreciation Right as of the date of grant;

     

    (iii) the
      third
      anniversary of the date of grant, as to an additional 20% of the Shares subject
      to the Stock Appreciation Right as of the date of grant;

     

    (iv)
       the
      fourth anniversary of the date of grant, as to an additional 20% of the Shares
      subject to the Stock Appreciation Right as of the date of grant;

     

    (v) the
      fifth
      anniversary of the date of grant, as to any remaining balance of the Shares
      subject to the Stock Appreciation Right as of the date of grant;
      and

     

    (vi) in
      the
      event of the Recipient's termination of Service due to the Recipient's Death
      or
      Disability, the date of termination of Service, as to any Stock Appreciation
      Rights otherwise scheduled to vest during the period of six months beginning
      on
      the date of termination.

     

    Failure
      of a Recipient to remain in continuous Service during the period beginning
      on
      the date a Stock Appreciation Right is granted and ending on the Stock
      Appreciation Right’s Vesting Date shall result in a cancellation of the Stock
      Appreciation Right without consideration at the earliest date and time at which
      the Recipient is not in continuous Service.

     

    (b) Except
      to
      the extent that an applicable SAR Agreement expressly provides otherwise, each
      Stock Appreciation Right that is outstanding under the Plan on the date on
      which
      a Change of Control occurs shall, on such date, be 100% vested and exercisable.
      

    

    Section
      7.6 Method
      of Exercise.

    

    (a) Subject
      to the limitations of the Plan and the SAR Agreement, a Recipient may, at any
      time after the Vesting Date and during the Exercise Period, exercise his or
      her
      Stock Appreciation Right as to all or any part of the Shares to which the Stock
      Appreciation Right relates; provided,
      however, that
      the
      minimum number of Shares as to which a Stock Appreciation Right may be exercised
      shall be 100, or, if less, the total number of Shares relating to the Stock
      Appreciation Right which remain unexercised. A Recipient shall exercise a Stock
      Appreciation Right by: 

     

    (i) giving
      written notice to the Committee, in such form and manner as the Committee may
      prescribe, of his intent to exercise the Stock Appreciation Right;
      and

     

    (ii) satisfying
      such other conditions as may be prescribed in the SAR Agreement.

     

    Any
      stand-alone Stock Appreciation Rights that are vested and remain unexercised
      at
      the expiration date of the relevant Exercise Period shall be deemed
      automatically exercised on such date without the requirement of notice or any
      other action on the part of the Recipient. 

    

    (b) When
      the
      requirements of section 7.6(a) have been satisfied, the Committee shall take
      such action as is necessary to cause the remittance to the Recipient (or, in
      the
      event of his death, his Beneficiary) of a payment in an amount per Share equal
      to the excess (if any) of (i) the Fair Market Value of a Share on the date
      of
      exercise over (ii) the Exercise Price per Share, or, if applicable Shares with
      an aggregate Fair Market Value of a like amount.

    

    Section
      7.7 Beneficiaries.

     

    The
      Recipient of a stand-alone Stock Appreciation Right may designate a Beneficiary
      to receive any payment in respect of outstanding stand-alone Stock Appreciation
      Rights that may be made after his death. Such designation (and any change or
      revocation of such designation) shall be made in writing in the form and manner
      prescribed by the Committee. In the event that the designated Beneficiary dies
      prior to the Recipient, or in the event that no Beneficiary has been designated,
      the executor or administrator of the Recipient's estate, or if no such executor
      or administrator is appointed within such time as the Committee, in its sole
      discretion, shall deem reasonable, such one or more of the spouse and
      descendants and blood relatives of such deceased person as the Committee may
      select, shall be deemed the Beneficiary. If the Recipient and his Beneficiary
      shall die in circumstances that cause the Committee, in its discretion, to
      be
      uncertain which shall have been the first to die, the Recipient shall be deemed
      to have survived the Beneficiary.

    

    

    Article
      VIII

    

    Special
      Tax Provisions

    

    Section
      8.1 Tax
      Withholding Rights.

    

    The
      Company shall have the right to deduct from all amounts paid by the Company
      in
      cash with respect to an Option or Stock Appreciation Right under the Plan any
      taxes required by law to be withheld with respect to such Option or Stock
      Appreciation Right. Where any Person is entitled to receive Shares, the Company
      shall have the right to require such Person to pay to the Company the amount
      of
      any tax which the Company is required to withhold with respect to such Shares,
      or, in lieu thereof, to retain, or to sell without notice, a sufficient number
      of Shares to cover the minimum amount required to be withheld. To the extent
      determined by the Committee and specified in the Option Agreement, an Option
      Holder shall have the right to direct the Company to satisfy the minimum
      required federal, state and local tax withholding by reducing the number of
      Shares subject to the Option (without issuance of such Shares to the Option
      Holder) by a number equal to the quotient of (a) the total minimum amount of
      required tax withholding divided by (b) the excess of the Fair Market Value
      of a
      Share on the Option Exercise Date over the Option Exercise Price per
      Share.

    

    Section
      8.2 Code
      Section 83(b) Elections.

    

    If
      and to
      the extent permitted by the Committee and specified in an Option Agreement
      for a
      Non-Qualified Stock Option or a Restricted Stock Award Agreement for a
      Restricted Stock Award other than a Performance-Based Restricted Stock Award,
      a
      Recipient may be permitted or required to make an election under section 83(b)
      of the Code to include the compensation related thereto in income for federal
      income tax purposes at the time of issuance of the Shares to such Recipient
      instead of at a subsequent Vesting Date. In such event, the Shares issued prior
      to their Vesting Date shall be issued in certificated form only, and the
      certificates therefor shall bear the legend set forth in section 6.1(b) or
      such
      other restrictive legend as the Committee, in its discretion, may specify.
      In
      the event of the Recipient’s termination of Service prior to the relevant
      Vesting Date or forfeiture of the Shares for any other reason, the Recipient
      shall be required to return all forfeited Shares to the Company without
      consideration therefor (other than a refund to the Recipient or his estate
      of an
      amount equal to the lesser of the amount paid by the Recipient for the Shares
      upon their issuance or the Fair Market Value of the Shares on the date of
      forfeiture).

    

    Section
      8.3 Election
      to Defer Income Tax Liability Pursuant to Deferred
Compensation
      Program.

    

    To
      the
      extent permitted by the Committee, the Recipient of a Non-Qualified Stock
      Option, Stock Appreciation Right or Restricted Stock Award may elect to defer
      the income tax liability associated therewith pursuant to the terms of a
      non-qualified deferred compensation plan in which the Recipient is eligible
      to
      participate.

    

    

    Article
      IX

    

    Amendment
      and Termination

    

    Section
      9.1 Termination.

    

    The
      Board
      may suspend or terminate the Plan in whole or in part at any time prior to
      the
      tenth anniversary of the Effective Date by giving written notice of such
      suspension or termination to the Committee. Unless sooner terminated, the Plan
      shall terminate automatically on the day preceding the tenth anniversary of
      the
      Effective Date. In the event of any suspension or termination of the Plan,
      all
      Options, Stock Appreciation Rights and Restricted Stock Awards theretofore
      granted under the Plan that are outstanding on the date of such suspension
      or
      termination of the Plan shall remain outstanding and exercisable for the period
      and on the terms and conditions set forth in the Option and Stock Appreciation
      Right agreements and the Award Notices evidencing such Options, Stock
      Appreciation Rights and Restricted Stock Awards.

    

    Section
      9.2 Amendment.

    

    The
      Board
      may amend or revise the Plan in whole or in part at any time; provided,
      however, that,
      to
      the extent required to comply with section 162(m) of the Code or the corporate
      governance standards imposed under the listing requirements imposed by any
      national securities exchange on which the Company lists or seeks to list Shares,
      no such amendment or revision shall be effective if it amends a material term
      of
      the Plan unless approved by the holders of a majority of the votes cast on
      a
      proposal to approve such amendment or revision. In no event shall any such
      amendment or revision result in any reduction of the Exercise Price (including
      as a result of the surrender for cancellation of outstanding Options in
      consideration of a grant of Options with a lower Exercise Price within six
      (6)
      months thereafter) of any outstanding Option or Stock Appreciation Right unless
      such amendment is approved by a majority of the holders for any material
      amendment.

    

    Section
      9.3 Permitted
      Adjustments.

    

    (a)  Neither
      the Committee nor the Board shall be authorized to adjust the terms of any
      outstanding Option or Stock Appreciation Right in a manner that reduces its
      Exercise Price (including as a result of the surrender for cancellation of
      outstanding Options in consideration of a grant of Options with a lower Exercise
      Price within six (6) months thereafter) other than: (i) by amendment of the
      Plan
      in accordance with section 9.2 or (ii) as permitted in sections 9.3(b) or (c).
      

    

    (b) In
      the
      event any recapitalization, forward or reverse split, reorganization, merger,
      consolidation, spin-off, combination, repurchase, or exchange of Shares or
      other
      securities, stock dividend or other special and nonrecurring dividend or
      distribution (whether in the form of cash, securities or other property),
      liquidation, dissolution, or other similar corporate transaction or event,
      affects the Shares such that an adjustment is appropriate in order to prevent
      dilution or enlargement of the rights of Recipients under the Plan, then the
      Committee shall, in such manner as it may deem equitable, adjust any or all
      of
      (i) the number and kind of securities deemed to be available thereafter for
      grants of Options, Stock Appreciation Rights and Restricted Stock Awards in
      the
      aggregate to all Eligible Individuals and individually to any one Eligible
      Individual, (ii) the number and kind of securities that may be delivered or
      deliverable in respect of outstanding Options, Stock Appreciation Rights and
      Restricted Stock Awards, and (iii) the Exercise Price of Options and Stock
      Appreciation Rights. In addition, the Committee is authorized to make
      adjustments in the terms and conditions of, and the criteria included in,
      Options, Stock Appreciation Rights or Restricted Stock Awards (including,
      without limitation, cancellation of Options, Stock Appreciation Rights and
      Restricted Stock Awards in exchange for the in-the-money value, if any, of
      the
      vested portion thereof, or substitution of Options, Stock Appreciation Rights
      or
      Restricted Stock Awards using stock of a successor or other entity) in
      recognition of unusual or nonrecurring events (including, without limitation,
      events described in the preceding sentence) affecting the Company or any Parent
      or Subsidiary or the financial statements of the Company or any Parent or
      Subsidiary, or in response to changes in applicable laws, regulations, or
      account principles; provided,
      however,
      that
      any such adjustment to an Option, Stock Appreciation Right or Performance-Based
      Restricted Stock Award granted to a Recipient who is a Covered Employee shall
      conform to the requirements of section 162(m) of the Code and the regulations
      thereunder then in effect. The authority granted in section 9.3(b) shall be
      exercised so as to avoid the enlargement or diminution of the economic rights
      represented by the Options or Stock Appreciation Rights being adjusted.

    

    (c) In
      the
      event of any merger, consolidation, or other business reorganization (including
      but not limited to a Change in Control) in which the Company is not the
      surviving entity, any Options or Stock Appreciation Rights granted under the
      Plan which remain outstanding shall be converted into options to purchase voting
      common equity securities of the business entity which survives such merger,
      consolidation or other business reorganization or stock appreciation rights
      having substantially the same terms and conditions as the outstanding Options
      under this Plan and reflecting the same economic benefit (as measured by the
      difference between the aggregate exercise price and the value exchanged for
      outstanding Shares in such merger, consolidation or other business
      reorganization), all as determined by the Committee prior to the consummation
      of
      such merger; provided,
      however, that
      the
      Committee may, at any time prior to the consummation of such merger,
      consolidation or other business reorganization, direct that all, but not less
      than all, outstanding Options and Stock Appreciation Rights be canceled as
      of
      the effective date of such merger, consolidation or other business
      reorganization in exchange for a cash payment per Share equal to the excess
      (if
      any) of the value exchanged for an outstanding Share in such merger,
      consolidation or other business reorganization over the Exercise Price of the
      Option or Stock Appreciation Right being canceled.

    

    (d) In
      the
      event of any merger, consolidation, or other business reorganization (including
      but not limited to a Change in Control) in which the Company is not the
      surviving entity, any Restricted Stock Award shall be adjusted by allocating
      to
      the Recipient the amount of money, stock, securities or other property to be
      received by the other shareholders of record, and such money, stock, securities
      or other property shall be subject to the same terms and conditions of the
      Restricted Stock Award that applied to the Shares for which it has been
      exchanged. 

    

    

    Article
      X

    

    Miscellaneous

    

    Section
      10.1 Status
      as an Employee Benefit Plan.

    

    This
      Plan
      is not intended to satisfy the requirements for qualification under section
      401(a) of the Code or to satisfy the definitional requirements for an "employee
      benefit plan" under section 3(3) of the Employee Retirement Income Security
      Act
      of 1974, as amended. It is intended to be a non-qualified incentive compensation
      program that is exempt from the regulatory requirements of the Employee
      Retirement Income Security Act of 1974, as amended. The Plan shall be construed
      and administered so as to effectuate this intent.

    

    Section
      10.2 No
      Right to Continued Employment.

    

    Neither
      the establishment of the Plan nor any provisions of the Plan nor any action
      of
      the Board or the Committee with respect to the Plan shall be held or construed
      to confer upon any Eligible Individual any right to a continuation of his or
      her
      position as a director or employee of the Company. The Employers reserve the
      right to remove any participating member of the Board or dismiss any Eligible
      Employee or otherwise deal with any Eligible Individual to the same extent
      as
      though the Plan had not been adopted.

    

    Section
      10.3 Construction
      of Language.

    

    Whenever
      appropriate in the Plan, words used in the singular may be read in the plural,
      words used in the plural may be read in the singular, and words importing the
      masculine gender may be read as referring equally to the feminine or the neuter.
      Any reference to an Article or section number shall refer to an Article or
      section of this Plan unless otherwise indicated. 

    

    Section
      10.4 Governing
      Law.

    

    The
      Plan
      shall be construed, administered and enforced according to the laws of the
      State
      of Iowa without giving effect to the conflict of laws principles thereof, except
      to the extent that such laws are preempted by federal law. The federal and
      state
      courts shall have exclusive jurisdiction over any claim, action, complaint
      or
      lawsuit brought under the terms of the Plan. By accepting any Restricted Stock
      Award, Stock Appreciation Right or Option granted under this Plan, the Eligible
      Individual, and any other person claiming any rights under the Plan, agrees
      to
      submit himself, and any such legal action as he shall bring under the Plan,
      to
      the sole jurisdiction of such courts for the adjudication and resolution of
      any
      such disputes.

    

    Section
      10.5 Headings.

    

    The
      headings of Articles and sections are included solely for convenience of
      reference. If there is any conflict between such headings and the text of the
      Plan, the text shall control.

    

    Section
      10.6 Non-Alienation
      of Benefits.

    

    The
      right
      to receive a benefit under the Plan shall not be subject in any manner to
      anticipation, alienation or assignment, nor shall such right be liable for
      or
      subject to debts, contracts, liabilities, engagements or torts.

    

    Section
      10.7 Notices.

    

    Any
      communication required or permitted to be given under the Plan, including any
      notice, direction, designation, comment, instruction, objection or waiver,
      shall
      be in writing and shall be deemed to have been given at such time as it is
      delivered personally or five (5) days after mailing if mailed, postage prepaid,
      by registered or certified mail, return receipt requested, addressed to such
      party at the address listed below, or at such other address as one such party
      may by written notice specify to the other party: 

    

    (a)         
      If
      to the
      Committee:

    

    North
      Central Bancshares, Inc.

    c/o
      First
      Federal Savings Bank of Iowa

    825
      Central Avenue

    Fort
      Dodge, Iowa 50501

    

    Attention:
      Chairman

    

    (b)         
      If
      to a
      Recipient, Beneficiary or Option Holder, to the Recipient’s, Beneficiary's or
      Option Holder's address as shown in the Employer’s records.

    

    Section
      10.8 Approval
      of Shareholders.

    

    The
      Plan
      shall be subject to approval by the Company’s shareholders within twelve (12)
      months before or after the Effective Date. Any Option, Stock Appreciation Right
      or Restricted Stock Award granted prior to the date such approval is obtained
      shall be granted contingent on such approval and shall be void ab
      initio
      in the
      event such approval is not obtained. No Performance-Based Restricted Stock
      Awards shall be granted after the fifth (5th)
      anniversary of the Effective Date unless, prior to such date, the listing of
      permissible Performance Goals set forth in section 6.3 shall have been
      re-approved by the stockholders of the Company in the manner required by section
      162(m) of the Code and the regulations thereunder.Unassociated Document

    

      EXHIBIT
        4.1

      

      
 

      

      ACE
        SECURITIES CORP.

      Depositor

       

      OCWEN
        LOAN SERVICING, LLC

      a
        Servicer

       

      WELLS
        FARGO BANK, NATIONAL ASSOCIATION 

      a
        Servicer

       

      WELLS
        FARGO BANK, NATIONAL ASSOCIATION 

      Master
        Servicer and Securities Administrator

       

      HSBC
        BANK
        USA, NATIONAL ASSOCIATION

      Trustee

       

      POOLING
        AND SERVICING AGREEMENT

       

      Dated
        as
        of February 28, 2006

       

      ACE
        Securities Corp. Home Equity Loan Trust, Series 2006-SD1

       

      Asset
        Backed Pass-Through Certificates

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF
        CONTENTS

       

       

      
        	
                ARTICLE
                  I

              	
                DEFINITIONS

              

      

       

      SECTION
        1.01    Defined
        Terms. 

      SECTION
        1.02    Allocation
        of
        Certain Interest Shortfalls. 

       

      
        	
                ARTICLE
                  II

              	
                CONVEYANCE
                  OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                  CERTIFICATES

              

      

       

      SECTION
        2.01    Conveyance
        of
        the Mortgage Loans. 

      SECTION
        2.02    Acceptance
        of
        REMIC I by Trustee. 

      SECTION
        2.03    Repurchase
        or
        Substitution of Mortgage Loans. 

      SECTION
        2.04    Representations
        and
        Warranties of the Master Servicer. 

      SECTION
        2.05    Representations,
        Warranties and Covenants of Ocwen and Wells Fargo. 

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

      SECTION
        2.07    Conveyance
        of the REMIC I Regular Interests; Acceptance of REMIC I by the Trustee.

      SECTION
        2.08    Issuance
        of the Residual Certificates. 

      SECTION
        2.09    Establishment
        of the Trust. 

      SECTION
        2.10    Purpose
        and Powers of the Trust. 

       

      
        	
                ARTICLE
                  III

              	
                ADMINISTRATION
                  AND SERVICING OF THE OCWEN MORTGAGE LOANS AND WELLS FARGO MORTGAGE
                  LOANS;
                  ACCOUNTS

              

      

       

      SECTION
        3.01    Ocwen
        and
        Wells Fargo to Act as a Servicer. 

      SECTION
        3.02    Sub-Servicing
        Agreement Between Each Servicer and Sub-Servicers. 

      SECTION
        3.03    Successor
        Sub-Servicers. 

      SECTION
        3.04    No
        Contractual Relationship Between Sub-Servicer, Subcontractor, Trustee or
        the
        Certificateholders. 

      SECTION
        3.05    Assumption
        or Termination of Sub-Servicing Agreement by Successor Servicer. 

      SECTION
        3.06    Collection
        of Certain Mortgage Loan Payments. 

      SECTION
        3.07    Collection
        of Taxes, Assessments and Similar Items; Servicing Accounts. 

      SECTION
        3.08    Collection
        Accounts, Simple Interest Excess Sub-Account and Distribution Account.

      SECTION
        3.09    Withdrawals
        from the Collection Accounts and Distribution Account. 

      SECTION
        3.10    Investment
        of Funds in the Investment Accounts. 

      SECTION
        3.11    Maintenance
        of Hazard Insurance, Errors and Omissions and Fidelity Coverage and Primary
        Mortgage Insurance. 

      SECTION
        3.12    Enforcement
        of Due-on-Sale Clauses; Assumption Agreements. 

      SECTION
        3.13    Realization
        Upon Defaulted Mortgage Loans. 

      SECTION
        3.14    Trustee
        to Cooperate; Release of Mortgage Files. 

      SECTION
        3.15    Servicing
        Compensation. 

      SECTION
        3.16    Collection
        Account Statements. 

      SECTION
        3.17    Annual
        Statement as to Compliance. 

      SECTION
        3.18    Assessments
        of Compliance and Attestation Reports. 

      SECTION
        3.19    Annual
        Certification; Additional Information. 

      SECTION
        3.20    Access
        to
        Certain Documentation. 

      SECTION
        3.21    Title,
        Management and Disposition of REO Property. 

      SECTION
        3.22    Obligations
        of Each Servicer in Respect of Prepayment Interest Shortfalls; Relief Act
        Interest Shortfalls. 

      SECTION
        3.23    Obligations
        of Each Servicer in Respect of Mortgage Rates and Monthly Payments.

      SECTION
        3.24    Reserve
        Fund.

      SECTION
        3.25    Advance
        Facility. 

      SECTION
        3.26    The
        Servicer’s Indemnification Obligation. 

       

      
        	
                ARTICLE
                  IV

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

              

      

       

      SECTION
        4.01    Master
        Servicer. 

      SECTION
        4.02    REMIC-Related
        Covenants. 

      SECTION
        4.03    Monitoring
        of the Servicers. 

      SECTION
        4.04    Fidelity
        Bond. 

      SECTION
        4.05    Power
        to Act;
        Procedures. 

      SECTION
        4.06    Due-on-Sale
        Clauses; Assumption Agreements. 

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

      SECTION
        4.08    Standard
        Hazard Insurance and Flood Insurance Policies. 

      SECTION
        4.09    Presentment
        of Claims and Collection of Proceeds. 

      SECTION
        4.10    Maintenance
        of Primary Mortgage Insurance Policies. 

      SECTION
        4.11    Trustee
        to Retain Possession of Certain Insurance Policies and Documents. 

      SECTION
        4.12    Realization
        Upon Defaulted Mortgage Loans. 

      SECTION
        4.13    Compensation
        for the Master Servicer. 

      SECTION
        4.14    REO
        Property.

      SECTION
        4.15    Master
        Servicer Annual Statement of Compliance. 

      SECTION
        4.16    Master
        Servicer Assessments of Compliance. 

      SECTION
        4.17    Master
        Servicer Attestation Reports. 

      SECTION
        4.18    Annual
        Certification. 

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

      SECTION
        4.20    Prepayment
        Penalty Verification. 

       

      
        	
                ARTICLE
                  V

              	
                PAYMENTS
                  TO CERTIFICATEHOLDERS

              

      

       

      SECTION
        5.01    Distributions.
        

      SECTION
        5.02    Statements
        to Certificateholders. 

      SECTION
        5.03    Servicer
        Reports; P&I Advances. 

      SECTION
        5.04    Allocation
        of Realized Losses. 

      SECTION
        5.05    Compliance
        with Withholding Requirements. 

      SECTION
        5.06    Reports
        Filed with Securities and Exchange Commission. 

       

      
        	
                ARTICLE
                  VI

              	
                THE
                  CERTIFICATES

              

      

       

      SECTION
        6.01    The
        Certificates. 

      SECTION
        6.02    Registration
        of Transfer and Exchange of Certificates. 

      SECTION
        6.03    Mutilated,
        Destroyed, Lost or Stolen Certificates. 

      SECTION
        6.04    Persons
        Deemed Owners. 

      SECTION
        6.05    Certain
        Available Information. 

       

      
        	
                ARTICLE
                  VII

              	
                THE
                  DEPOSITOR, OCWEN, WELLS FARGO AND THE MASTER
                  SERVICER

              

      

       

      SECTION
        7.01    Liability
        of the Depositor, Ocwen, Wells Fargo and the Master Servicer. 

      SECTION
        7.02    Merger
        or
        Consolidation of the Depositor, Ocwen, Wells Fargo or the Master Servicer.
        

      SECTION
        7.03    Limitation
        on Liability of the Depositor, Ocwen, Wells Fargo, the Master Servicer and
        Others. 

      SECTION
        7.04    Limitation
        on
        Resignation of Ocwen and Wells Fargo. 

      SECTION
        7.05    Limitation
        on Resignation of the Master Servicer. 

      SECTION
        7.06    Assignment
        of
        Master Servicing. 

      SECTION
        7.07    Rights
        of
        the Depositor in Respect of Ocwen, Wells Fargo and the Master Servicer.

      SECTION
        7.08    Duties
        of
        the Loan Performance Advisor. 

      SECTION
        7.09    Limitation
        Upon Liability of the Loan Performance Advisor. 

      SECTION
        7.10    Removal
        of
        the Loan Performance Advisor. 

      SECTION
        7.11    Transfer
        of
        Servicing by Sponsor. 

       

      
        	
                ARTICLE
                  VIII

              	
                DEFAULT

              

      

       

      SECTION
        8.01    Servicer
        Events of Default. 

      SECTION
        8.02    Master
        Servicer to Act; Appointment of Successor. 

      SECTION
        8.03    Notification
        to Certificateholders. 

      SECTION
        8.04    Waiver
        of
        Servicer Events of Default. 

       

      
        	
                ARTICLE
                  IX

              	
                CONCERNING
                  THE TRUSTEE AND THE SECURITIES
                  ADMINISTRATOR

              

      

       

      SECTION
        9.01    Duties
        of
        Trustee and Securities Administrator. 

      SECTION
        9.02    Certain
        Matters Affecting Trustee and Securities Administrator. 

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

      SECTION
        9.04    Trustee
        and
        Securities Administrator May Own Certificates. 

      SECTION
        9.05    Fees
        and
        Expenses of Trustee, Custodians and Securities Administrator. 

      SECTION
        9.06    Eligibility
        Requirements for Trustee and Securities Administrator. 

      SECTION
        9.07    Resignation
        and Removal of Trustee and Securities Administrator. 

      SECTION
        9.08    Successor
        Trustee or Securities Administrator. 

      SECTION
        9.09    Merger
        or
        Consolidation of Trustee or Securities Administrator. 

      SECTION
        9.10    Appointment
        of Co-Trustee or Separate Trustee. 

      SECTION
        9.11    Appointment
        of Office or Agency. 

      SECTION
        9.12    Representations
        and
        Warranties. 

       

      
        	
                ARTICLE
                  X

              	
                TERMINATION

              

      

       

      SECTION
        10.01    Termination
        Upon Repurchase or Liquidation of All Mortgage Loans. 

      SECTION
        10.02    Additional
        Termination Requirements. 

       

      
        	
                ARTICLE
                  XI

              	
                REMIC
                  PROVISIONS

              

      

       

      SECTION
        11.01    REMIC
        Administration. 

      SECTION
        11.02    Prohibited
        Transactions and Activities. 

      SECTION
        11.03    Indemnification.
        

       

      
        	
                ARTICLE
                  XII

              	
                MISCELLANEOUS
                  PROVISIONS

              

      

       

      SECTION
        12.01    Amendment.
        

      SECTION
        12.02    Recordation
        of Agreement; Counterparts. 

      SECTION
        12.03    Limitation
        on
        Rights of Certificateholders. 

      SECTION
        12.04    Governing
        Law. 

      SECTION
        12.05    Notices.
        

      SECTION
        12.06    Severability
        of Provisions. 

      SECTION
        12.07    Notice
        to
        Rating Agencies. 

      SECTION
        12.08    Article
        and
        Section References. 

      SECTION
        12.09    Grant
        of
        Security Interest. 

      SECTION
        12.10    Survival
        of Indemnification. 

      SECTION
        12.11    Servicing
        Agreement. 

      SECTION
        12.12    Intention
        of the Parties and Interpretation. 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibits

       

      
        	
                Exhibit
                  A-1

              	
                Form
                  of Class A Certificate

              
	
                Exhibit
                  A-2

              	
                Form
                  of Class M Certificate

              
	
                Exhibit
                  A-3

              	
                Form
                  of Class CE-1 Certificate

              
	
                Exhibit
                  A-4

              	
                Form
                  of Class CE-2 Certificate

              
	
                Exhibit
                  A-5

              	
                Form
                  of Class P Certificate

              
	
                Exhibit
                  A-6

              	
                Form
                  of Class R Certificate

              
	
                Exhibit
                  B-1

              	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class CE-1 Certificates,
                  Class
                  CE-2 Certificates, Class P Certificates and Residual Certificates
                  Pursuant
                  to Rule 144A Under the Securities Act

              
	
                Exhibit
                  B-2

              	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class CE-1 Certificates,
                  Class
                  CE-2 Certificates, Class P Certificates and Residual Certificates
                  Pursuant
                  to Rule 501 (a) Under the Securities Act

              
	
                Exhibit
                  B-3

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

              
	
                Exhibit
                  C

              	
                Form
                  of Back-Up Certification

              
	
                Exhibit
                  D

              	
                Form
                  of Power of Attorney

              
	
                Exhibit
                  E

              	
                Servicing
                  Criteria

              
	
                Exhibit
                  F

              	
                Mortgage
                  Loan Purchase Agreement

              
	
                Exhibit
                  G

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

              
	
                Exhibit
                  H

              	
                Additional
                  Disclosure Notification

              
	 	 
	
                Schedule
                  1

              	
                Mortgage
                  Loan Schedule

              
	
                Schedule
                  2

              	
                Prepayment
                  Charge Schedule

              
	
                Schedule
                  3

              	
                Standard
                  File Layout - Delinquency Reporting

              
	
                Schedule
                  4

              	
                Standard
                  File Layout - Master Servicing

              
	
                Schedule
                  5

              	
                Standard
                  File Layout - Simple Interest Mortgage Loans

              
	
                Schedule
                  6

              	
                Servicing
                  Advance Schedule

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        Pooling and Servicing Agreement, is dated and effective as of February 28,
        2006, among ACE SECURITIES CORP., as Depositor, OCWEN LOAN SERVICING, LLC,
        as a
        Servicer, WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Servicer, WELLS FARGO
        BANK, NATIONAL ASSOCIATION, as Master Servicer and Securities Administrator
        and
        HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee.

       

      PRELIMINARY
        STATEMENT:

       

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

       

      REMIC
        I

       

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

       

      
        	
                Designation

              	 	
                REMIC
                  I

                Remittance
                  Rate

              	 	
                Initial

                Uncertificated
                  Balance

              	 	
                Latest
                  Possible

                Maturity
                  Date (1)

              
	
                I-LTAA

              	 	
                Variable(2)

              	 	
                $

              	
                166,709,682.60

              	 	
                February
                  2036

              
	
                I-LTA1A

              	 	
                Variable(2)

              	 	
                $

              	
                500,000.00

              	 	
                February
                  2036

              
	
                I-LTA1B

              	 	
                Variable(2)

              	 	
                $

              	
                690,780.00

              	 	
                February
                  2036

              
	
                I-LTM1

              	 	
                Variable(2)

              	 	
                $

              	
                182,020.00

              	 	
                February
                  2036

              
	
                I-LTM2

              	 	
                Variable(2)

              	 	
                $

              	
                107,170.00

              	 	
                February
                  2036

              
	
                I-LTM3

              	 	
                Variable(2)

              	 	
                $

              	
                63,790.00

              	 	
                February
                  2036

              
	
                I-LTM4

              	 	
                Variable(2)

              	 	
                $

              	
                25,520.00

              	 	
                February
                  2036

              
	
                I-LTM5

              	 	
                Variable(2)

              	 	
                $

              	
                34,020.00

              	 	
                February
                  2036

              
	
                I-LTZZ

              	 	
                Variable(2)

              	 	
                $

              	
                1,798,938.42

              	 	
                February
                  2036

              
	
                I-LTP

              	 	
                Variable(2)

              	 	
                $

              	
                100.00

              	 	
                February
                  2036

              
	
                I-LTCE2

              	 	
                Variable(2)

              	 	 	
                N/A(3)

              	 	
                February
                  2036

              

      

      ________________

      
        	
                (1)

              	
                For
                  purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                  the
                  Distribution Date immediately following the maturity date for the
                  Mortgage
                  Loan with the latest maturity date has been designated as the “latest
                  possible maturity date” for each REMIC I Regular
                  Interest.

              

      

       

      
        	
                (2)

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

              

      

       

      
        	
                (3)

              	
                REMIC
                  I Regular Interest I-LTCE2 will not have an Uncertificated Balance,
                  but
                  will accrue interest on its Notional Amount calculated in accordance
                  with
                  the definition of “REMIC I Remittance Rate”
                  herein.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      REMIC
        II

       

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

       

      
        	
                Designation

              	 	
                Pass-Through
                  Rate

              	 	
                Initial
                  Aggregate

                Certificate
                  Principal Balance

              	 	
                Latest
                  Possible

                Maturity
                  Date (1)

              
	
                Class
                  A-1A

              	 	
                Variable(2)

              	 	
                $

              	
                50,000,000.00

              	 	
                February
                  2036

              
	
                Class
                  A-1B

              	 	
                Variable(2)

              	 	
                $

              	
                69,078,000.00

              	 	
                February
                  2036

              
	
                Class
                  M-1

              	 	
                Variable(2)

              	 	
                $

              	
                18,202,000.00

              	 	
                February
                  2036

              
	
                Class
                  M-2

              	 	
                Variable(2)

              	 	
                $

              	
                10,717,000.00

              	 	
                February
                  2036

              
	
                Class
                  M-3

              	 	
                Variable(2)

              	 	
                $

              	
                6,379,000.00

              	 	
                February
                  2036

              
	
                Class
                  M-4

              	 	
                Variable(2)

              	 	
                $

              	
                2,552,000.00

              	 	
                February
                  2036

              
	
                Class
                  M-5

              	 	
                Variable(2)

              	 	
                $

              	
                3,402,000.00

              	 	
                February
                  2036

              
	
                Class
                  P

              	 	
                N/A(3)

              	 	
                $

              	
                100.00

              	 	
                February
                  2036

              
	
                Class
                  CE-1

              	 	
                N/A(4)

              	 	
                $

              	
                9,781,921.02

              	 	
                February
                  2036

              
	
                Class
                  CE-2

              	 	
                N/A(5)

              	 	 	
                N/A(6)

              	 	
                February
                  2036

              

      

      ________________

      
        	(1)	
                For
                  purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                  the
                  Distribution Date immediately following the maturity date for the
                  Mortgage
                  Loan with the latest maturity date has been designated as the “latest
                  possible maturity date” for each Class of
                  Certificates.

              

      

       

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

              

      

       

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

              

      

       

      
        	(4)	
                The
                  Class CE-1 Certificates will accrue interest at their variable
                  Pass-Through Rate on the Notional Amount of the Class CE-1 Certificates
                  outstanding from time to time which shall equal the Uncertificated
                  Balance
                  of the REMIC I Regular Interests (other than REMIC I Regular Interest
                  I-LTP). The Class CE-1 Certificates will not accrue interest on
                  their
                  Certificate Principal Balance.

              

      

       

      
        	(5)	
                The
                  Class CE-2 Certificates are an interest only class and for each
                  Distribution Date the Class CE-2 Certificates will be entitled
                  to receive
                  100% of the amounts distributed on REMIC I Regular Interest
                  I-LTCE2.

              

      

       

      
        	(6)	
                For
                  federal income tax purposes, the Class CE-2 Certificates will not
                  have a
                  Certificate Principal Balance, but will have a Notional Amount
                  equal to
                  the Notional Amount of REMIC I Regular Interest
                  I-LTCE2.

              

      

       

      

      As
        of the
        Cut-off Date, the Mortgage Loans had an aggregate Scheduled Principal Balance
        equal to $170,112,021.02.

       

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

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

         
        ARTICLE I  

       

      DEFINITIONS

       

      SECTION
        1.01  Defined
        Terms.

       

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

       

      “60-day
        Delinquent Mortgage Loan”: With respect to any Mortgage Loan or any date of
        determination, the excess, if any, of (i) the number of days the most delinquent
        Monthly Payment for such Mortgage Loan was delinquent as of the close of
        business on the last day of the related Due Period minus (ii) the number
        of days
        the most delinquent Monthly Payment for such Mortgage Loan was delinquent
        as of
        the close of business on the Cut-off Date, is greater than or equal to
        60.

       

      “Accepted
        Master Servicing Practices”: With respect to any Mortgage Loan, as applicable,
        either (x) those customary mortgage master servicing practices of prudent
        mortgage servicing institutions that master service mortgage loans of the
        same
        type and quality as such Mortgage Loan in the jurisdiction where the related
        Mortgaged Property is located, to the extent applicable to the Master Servicer
        (except in its capacity as successor to a Servicer), or (y) as provided in
        Section 3.01 hereof, but in no event below the standard set forth in clause
        (x).

       

      “Accepted
        Servicing Practices”: As defined in Section 3.01.

       

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

       

      “Accrued
        Certificate Interest”: With respect to any Class A, Mezzanine, Class CE-1 or
        Class CE-2 Certificate and each Distribution Date, interest accrued during
        the
        related Interest Accrual Period at the Pass-Through Rate for such Certificate
        for such Distribution Date on the Certificate Principal Balance, in the case
        of
        the Class A Certificates and the Mezzanine Certificates, or on the Notional
        Amount in the case of the Class CE-1 Certificates and the Class CE-2
        Certificates, of such Certificate immediately prior to such Distribution
        Date.
        The Class P Certificates are not entitled to distributions in respect of
        interest and, accordingly, will not accrue interest. All distributions of
        interest on the Class A Certificates and the Mezzanine Certificates will
        be
        calculated on the basis of a 360-day year and the actual number of days in
        the
        applicable Interest Accrual Period. All distributions of interest on the
        Class
        CE-1 Certificates and Class CE-2 Certificates will be based on a 360 day
        year
        consisting of twelve 30 day months. Accrued Certificate Interest with respect
        to
        each Distribution Date, as to any Class A, Mezzanine or Class CE-1 Certificate
        shall be reduced by an amount equal to the portion allocable to such Certificate
        pursuant to Section 1.02 hereof, if any, of the sum of (a) the aggregate
        Prepayment Interest Shortfall, if any, for such Distribution Date to the
        extent
        not covered by payments pursuant to Section 3.22 or Section 4.19 of
        this Agreement or pursuant to the Servicing Agreement and (b) the aggregate
        amount of any Relief Act Interest Shortfall, if any, for such Distribution Date.
        In addition, Accrued Certificate Interest with respect to each Distribution
        Date, as to any Class CE-1 Certificate, shall be reduced by an amount equal
        to
        the portion allocable to such Class CE-1 Certificate of Realized Losses,
        if any,
        pursuant to Section 1.02 and Section 5.04 hereof.

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Administration
        Fees”: The sum of (i) the Servicing Fee, (ii) the Master Servicing Fee and (iii)
        the Loan Performance Advisor Fee.

       

      “Administration
        Fee Rate”: The sum of (i) the Servicing Fee Rate, (ii) the Master Servicer Fee
        Rate and (iii) the Loan Performance Advisor Fee Rate.

       

      “Advance
        Facility”: As defined in Section 3.25(a).

       

      “Advance
        Financing Person”: As defined in Section 3.25(a).

       

      “Advance
        Reimbursement Amounts”: As defined in Section 3.25(b).

       

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

       

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

       

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

       

      “Allocated
        Realized Loss Amount”: With respect to any Class of Mezzanine Certificates and
        any Distribution Date, an amount equal to the sum of any Realized Loss allocated
        to that Class of Certificates on the Distribution Date pursuant to
        Section 5.04 and any Allocated Realized Loss Amount for that Class
        remaining unpaid from the previous Distribution Date.

       

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

       

      “Annual
        Statement of Compliance”: As defined in Section 3.17.

       

      “Arrearages”:
        With respect to each Mortgage Loan, the amount, if any, equal to the interest
        portion of the payments due on such Mortgage Loan on or prior to the Cut-off
        Date but not yet received by the related Servicer by such date, as shown
        on the
        Mortgage Loan Schedule.

       

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

       

      “Assignment
        Agreement”: The Assignment, Assumption and Recognition Agreement, dated as of
        March 27, 2006, by and among the Sponsor, the Depositor and SPS evidencing
        the
        assignment of the Servicing Agreement, to the extent of the servicing of
        the SPS
        Mortgage Loans, to the Depositor.

       

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

       

      “Available
        Distribution Amount”: With respect to any Distribution Date, an amount equal to
        (1) the sum of (a) the aggregate of the amounts on deposit in the Custodial
        Account, the Collection Accounts and the Distribution Account as of the close
        of
        business on the related Servicer Remittance Date, (b) the aggregate of any
        amounts deposited in the Distribution Account by the Servicers or the Master
        Servicer in respect of Prepayment Interest Shortfalls for such Distribution
        Date
        pursuant to Section 3.22 or Section 4.19 of this Agreement or pursuant
        to the Servicing Agreement, (c) the aggregate of any P&I Advances for such
        Distribution Date made by the Servicers pursuant to Section 5.03 of this
        Agreement or pursuant to the Servicing Agreement and (d) the aggregate of
        any
        P&I Advances made by a successor Servicer (including the Master Servicer or
        the Trustee) for such Distribution Date pursuant to Section 8.02 of this
        Agreement or the Servicing Agreement, reduced (to an amount not less than
        zero)
        by (2) the portion of the amount described in clause (1)(a) above that
        represents (i) Amounts Held for Future Distribution, (ii) Principal Prepayments
        on the Mortgage Loans received after the related Prepayment Period (together
        with any interest payments received with such Principal Prepayments to the
        extent they represent the payment of interest accrued on the Mortgage Loans
        during a period subsequent to the related Prepayment Period), (iii) Liquidation
        Proceeds and Insurance Proceeds received in respect of the Mortgage Loans
        after
        the related Prepayment Period, (iv) amounts reimbursable or payable to the
        Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
        Administrator, the Custodians or the Loan Performance Advisor pursuant to
        Section 3.09 or Section 9.05 of this Agreement or otherwise payable in
        respect of Extraordinary Trust Fund Expenses or reimbursable or payable under
        the Servicing Agreement, (v) the Loan Performance Advisor Fee, (vi) amounts
        deposited in a Custodial Account, a Collection Account or the Distribution
        Account in error, (vii) the amount of any Prepayment Charges collected by
        the
        Servicers in connection with the Principal Prepayment of any of the Mortgage
        Loans and (viii) amounts reimbursable to a successor Servicer (including
        the
        Master Servicer or the Trustee) pursuant to Section 8.02 of this Agreement
        or pursuant to the Servicing Agreement.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Certificate”:
        Any one of ACE Securities Corp., Asset Backed Pass-Through Certificates,
        Series
        2006-SD1, Class A-1A, Class A-1B, Class M-1, Class M-2, Class M-3, Class
        M-4,
        Class M-5, Class CE-1, Class CE-2, Class P and Class R issued under this
        Agreement.

       

      “Certificate
        Factor”: With respect to any Class of Certificates (other than the Residual
        Certificates) as of any Distribution Date, a fraction, expressed as a decimal
        carried to six places, the numerator of which is the aggregate Certificate
        Principal Balance (or Notional Amount, in the case of the Class CE-1
        Certificates and Class CE-2 Certificates) of such Class of Certificates on
        such
        Distribution Date (after giving effect to any distributions of principal
        and
        allocations of Realized Losses resulting in reduction of the Certificate
        Principal Balance (or Notional Amount, in the case of the Class CE-1
        Certificates and Class CE-2 Certificates) of such Class of Certificates to
        be
        made on such Distribution Date), and the denominator of which is the initial
        aggregate Certificate Principal Balance (or Notional Amount, in the case
        of the
        Class CE-1 Certificates and Class CE-2 Certificates) of such Class of
        Certificates as of the Closing Date.

       

      “Certificate
        Margin”: With respect to the Class A-1A Certificates and, for purposes of the
        definition of “Marker Rate”, REMIC I Regular Interest I-LTA1A, 0.13% in the case
        of each Distribution Date through and including the Optional Termination
        Date
        and 0.26% in the case of each Distribution Date thereafter.

       

      With
        respect to the Class A-1B Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTA1B, 0.35% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.70%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-1 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM1, 0.62% in the case of each
        Distribution Date through and including the Optional Termination Date and
        0.93%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-2 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM2, 0.80% in the case of each
        Distribution Date through and including the Optional Termination Date and
        1.20%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-3 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM3, 2.10% in the case of each
        Distribution Date through and including the Optional Termination Date and
        2.60%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-4 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM4, 2.50% in the case of each
        Distribution Date through and including the Optional Termination Date and
        3.00%
        in the case of each Distribution Date thereafter.

       

      With
        respect to the Class M-5 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM5, 2.50% in the case of each
        Distribution Date through and including the Optional Termination Date and
        3.00%
        in the case of each Distribution Date thereafter.

       

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

       

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

       

      “Certificate
        Principal Balance”: With respect to each Class A, Mezzanine or Class P
        Certificate as of any date of determination, the Certificate Principal Balance
        of such Certificate on the Distribution Date immediately prior to such date
        of
        determination plus any Subsequent Recoveries added to the Certificate Principal
        Balance of such Certificate pursuant to Section 5.04 of this Agreement,
        minus all distributions allocable to principal made thereon and Realized
        Losses
        allocated thereto, if any, on such immediately prior Distribution Date (or,
        in
        the case of any date of determination up to and including the first Distribution
        Date, the initial Certificate Principal Balance of such Certificate, as stated
        on the face thereof). With respect to each Class CE-1 Certificate as of any
        date
        of determination, an amount equal to the Percentage Interest evidenced by
        such
        Certificate times the excess, if any, of (A) the then aggregate Uncertificated
        Balances of the REMIC I Regular Interests over (B) the then aggregate
        Certificate Principal Balances of the Class A, Mezzanine and Class P
        Certificates then outstanding. The aggregate initial Certificate Principal
        Balance of each Class of Regular Certificates is set forth in the Preliminary
        Statement hereto.

       

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

       

      “Certification
        Parties”: Has the meaning set forth in Section 3.19 of this
        Agreement.

       

      “Certifying
        Person”: Has the meaning set forth in Section 3.19 of this
        Agreement.

       

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

       

      “Class
        A
        Certificates”: Any Class A-1A Certificate or Class A-1B
        Certificate.

       

      “Class
        A
        Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of the Certificate Principal Balances of the Class
        A-1A
        Certificates and the Class A-1B Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) 36.20% and
        (ii)
        the aggregate Scheduled Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Scheduled Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period (after giving effect to scheduled
        payments of principal due during the related Due Period, to the extent received
        or advanced and unscheduled collections of principal received during the
        related
        Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date.

       

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

       

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

       

      “Class
        CE-1 Certificate”: Any one of the Class CE-1 Certificates executed and
        authenticated by the Securities Administrator and delivered by the Trustee,
        substantially in the form annexed hereto as Exhibit A-3 and evidencing a
        Regular
        Interest in REMIC II for purposes of the REMIC Provisions.

       

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

       

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

       

      “Class
        M-1 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date) and (ii) the
        Certificate Principal Balance of the Class M-1 Certificates immediately prior
        to
        such Distribution Date over (y) the lesser of (A) the product of (i) 57.60%
        and
        (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans as of
        the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Scheduled Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period (after giving effect to scheduled
        payments of principal due during the related Due Period, to the extent received
        or advanced and unscheduled collections of principal received during the
        related
        Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date.

       

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

       

      “Class
        M-2 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the Certificate
        Principal Balance of the Class M-1 Certificates (after taking into account
        the
        payment of the Class M-1 Principal Distribution Amount on such Distribution
        Date) and (iii) the Certificate Principal Balance of the Class M-2 Certificates
        immediately prior to such Distribution Date over (y) the lesser of (A) the
        product of (i) 70.20% and (ii) the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans as of the last day of the related Due Period (after giving
        effect
        to scheduled payments of principal due during the related Due Period, to
        the
        extent received or advanced and unscheduled collections of principal received
        during the related Prepayment Period) and (B) the aggregate Scheduled Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        (after giving effect to scheduled payments of principal due during the related
        Due Period, to the extent received or advanced and unscheduled collections
        of
        principal received during the related Prepayment Period) minus the product
        of
        (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans
        as of
        the Cut-off Date.

       

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

       

      “Class
        M-3 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the Certificate
        Principal Balance of the Class M-1 Certificates (after taking into account
        the
        payment of the Class M-1 Principal Distribution Amount on such Distribution
        Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
        (after taking into account the payment of the Class M-2 Principal Distribution
        Amount on such Distribution Date) and (iv) the Certificate Principal Balance
        of
        the Class M-3 Certificates immediately prior to such Distribution Date over
        (y)
        the lesser of (A) the product of (i) 77.70% and (ii) the aggregate Scheduled
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period (after giving effect to scheduled payments of principal due during
        the
        related Due Period, to the extent received or advanced and unscheduled
        collections of principal received during the related Prepayment Period) and
        (B)
        the aggregate Scheduled Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) minus the product of (i) 0.50% and (ii) the aggregate principal
        balance of the Mortgage Loans as of the Cut-off Date.

       

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

       

      “Class
        M-4 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the Certificate
        Principal Balance of the Class M-1 Certificates (after taking into account
        the
        payment of the Class M-1 Principal Distribution Amount on such Distribution
        Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
        (after taking into account the payment of the Class M-2 Principal Distribution
        Amount on such Distribution Date), (iv) the Certificate Principal Balance
        of the
        Class M-3 Certificates (after taking into account the payment of the Class
        M-3
        Principal Distribution Amount on such Distribution Date) and (v) the Certificate
        Principal Balance of the Class M-4 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) 80.70% and
        (ii)
        the aggregate Scheduled Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced
        and unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Scheduled Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period (after giving effect to scheduled
        payments of principal due during the related Due Period, to the extent received
        or advanced and unscheduled collections of principal received during the
        related
        Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date.

       

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

       

      “Class
        M-5 Principal Distribution Amount”: With respect to any Distribution Date on or
        after the Stepdown Date and on which a Trigger Event is not in effect, the
        excess of (x) the sum of (i) the aggregate Certificate Principal Balance
        of the
        Class A Certificates (after taking into account the payment of the Class
        A
        Principal Distribution Amount on such Distribution Date), (ii) the Certificate
        Principal Balance of the Class M-1 Certificates (after taking into account
        the
        payment of the Class M-1 Principal Distribution Amount on such Distribution
        Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
        (after taking into account the payment of the Class M-2 Principal Distribution
        Amount on such Distribution Date), (iv) the Certificate Principal Balance
        of the
        Class M-3 Certificates (after taking into account the payment of the Class
        M-3
        Principal Distribution Amount on such Distribution Date), (v) the Certificate
        Principal Balance of the Class M-4 Certificates (after taking into account
        the
        payment of the Class M-4 Principal Distribution Amount on such Distribution
        Date) and (v) the Certificate Principal Balance of the Class M-5 Certificates
        immediately prior to such Distribution Date over (y) the lesser of (A) the
        product of (i) 84.70% and (ii) the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans as of the last day of the related Due Period (after giving
        effect
        to scheduled payments of principal due during the related Due Period, to
        the
        extent received or advanced and unscheduled collections of principal received
        during the related Prepayment Period) and (B) the aggregate Scheduled Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        (after giving effect to scheduled payments of principal due during the related
        Due Period, to the extent received or advanced and unscheduled collections
        of
        principal received during the related Prepayment Period) minus the product
        of
        (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans
        as of
        the Cut-off Date.

       

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

       

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

       

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

       

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

       

      “Closing
        Date”: March 27, 2006.

       

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

       

      “Collection
        Account”: The separate account or accounts created and maintained, or caused to
        be created and maintained, by each of Ocwen and Wells Fargo pursuant to
        Section 3.08(a) of this Agreement, which shall be entitled (i) with respect
        to the Ocwen Mortgage Loans, “Ocwen Loan Servicing, LLC, as Servicer for HSBC
        Bank USA, National Association, as Trustee, in trust for the registered holders
        of ACE Securities Corp. Home Equity Loan Trust, Series 2006-SD1, Asset Backed
        Pass-Through Certificates” and (ii) with respect to the Wells Fargo Mortgage
        Loans, “Wells Fargo Bank, National Association, as Servicer for HSBC Bank USA,
        National Association, as Trustee, in trust for the registered holders of
        ACE
        Securities Corp. Home Equity Loan Trust, Series 2006-SD1, Asset Backed
        Pass-Through Certificates. Any Collection Account must be an Eligible
        Account.

       

      “Commission”:
        The Securities and Exchange Commission.

       

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

       

      “Corporate
        Trust Office”: The principal corporate trust office of the Trustee or the
        Securities Administrator, as the case may be, at which, at any particular
        time,
        its corporate trust business in connection with this Agreement shall be
        administered, which office at the date of the execution of this instrument
        is
        located at (i) with respect to the Trustee, HSBC Bank USA, National Association,
        452 Fifth Avenue, New York, New York 10018, Attention: ACE Securities Corp.,
        2006-SD1, or at such other address as the Trustee may designate from time
        to
        time by notice to the Certificateholders, the Depositor, the Master Servicer,
        the Securities Administrator and the Servicers or (ii) with respect to the
        Securities Administrator, (A) for purposes of Certificate transfers and
        surrender, Wells Fargo Bank, National Association, Sixth Street and Marquette
        Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust (ACE 2006-SD1),
        and (B) for all other purposes, Wells Fargo Bank, National Association, P.O.
        Box
        98, Columbia, Maryland 21046, Attention: Corporate Trust (ACE 2006-SD1) (or
        for
        overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland 21045,
        Attention: Corporate Trust (ACE 2006-SD1)), or at such other address as the
        Securities Administrator may designate from time to time by notice to the
        Certificateholders, the Depositor, the Master Servicer, the Servicers and
        the
        Trustee.

       

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

       

      
        	
                REMIC
                  I Regular Interest

              	 	
                Class

              
	
                REMIC
                  I Regular Interest I-LTA1A

              	 	
                A-1A

              
	
                REMIC
                  I Regular Interest I-LTA1B

              	 	
                A-1B

              
	
                REMIC
                  I Regular Interest I-LTM1

              	 	
                M-1

              
	
                REMIC
                  I Regular Interest I-LTM2

              	 	
                M-2

              
	
                REMIC
                  I Regular Interest I-LTM3

              	 	
                M-3

              
	
                REMIC
                  I Regular Interest I-LTM4

              	 	
                M-4

              
	
                REMIC
                  I Regular Interest I-LTM5

              	 	
                M-5

              
	
                REMIC
                  I Regular Interest I-LTP

              	 	
                P

              
	
                REMIC
                  I Regular Interest I-LTCE2

              	 	
                CE-2

              
	 	 	 

      

      “Credit
        Enhancement Percentage”: For any Distribution Date is the percentage obtained by
        dividing (x) the aggregate Certificate Principal Balance of the Subordinate
        Certificates(which includes the Overcollateralization Amount) by (y) the
        aggregate principal balance of the Mortgage Loans, calculated after taking
        into
        account collections of principal on the Mortgage Loans and distribution of
        the
        Principal Distribution Amount to the holders of the Certificates then entitled
        to distributions of principal on the Distribution Date.

       

      “Custodial
        Account”: The separate account or accounts maintained by SPS under the Servicing
        Agreement.

       

      “Custodial
        Agreement”: Any of (i) the DBNTC Custodial Agreement, (ii) the U.S. Bank
        Custodial Agreement or (iii) the Wells Fargo Custodial Agreement, or any
        other
        custodial agreement entered into after the date hereof with respect to any
        Mortgage Loan subject to this Agreement.

       

      “Custodian”:
        Any of DBNTC, U.S. Bank or Wells Fargo or any other custodian appointed under
        any custodial agreement entered into after the date of this
        Agreement.

       

      “Cut-off
        Date”: With respect to each Mortgage Loan, the close of business on
        February 28, 2006. With respect to all Qualified Substitute Mortgage Loans,
        their respective dates of substitution. References herein to the “Cut-off Date,”
when used with respect to more than one Mortgage Loan, shall be to the
        respective Cut-off Dates for such Mortgage Loans.

       

      “DBNTC”:
        Deutsche Bank National Trust Company, a national banking association, or
        its
        successor in interest.

       

      “DBNTC
        Custodial Agreement”: The Custodial Agreement, dated as of February 28,
        2006, among the Trustee, DBNTC, Ocwen and Wells Fargo, as may be amended
        from
        time to time.

       

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

       

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

       

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

       

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

       

      “Delinquency
        Percentage”: As of the last day of the related Due Period, the rolling six month
        average of a fraction, expressed as a percentage, the numerator of which
        is the
        aggregate Scheduled Principal Balance of all 60-day Delinquent Mortgage Loans,
        as of the close of business of the last day of the related Due Period, provided
        that in the case of (i) Mortgage Loans that are the subject of forebearance
        plans and (ii) Mortgage Loans with respect to which the related Mortgagor
        is the
        subject of bankruptcy proceedings, delinquency shall be deemed to mean
        delinquency of the Monthly Payment due under the related forebearance plan
        or
        bankruptcy plan, as applicable, and the denominator of which is the aggregate
        Scheduled Principal Balance of the Mortgage Loans and REO Properties as of
        the
        close of business of the last day of the related Due Period.

       

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

       

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

       

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

       

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

       

      “Determination
        Date”: With respect to (i) Ocwen and each Distribution Date, the 15th
        day of
        the calendar month in which such Distribution Date occurs, or if such
        15th
        day is
        not a Business Day, the Business Day immediately preceding such 15th
        day and
        (ii) Wells Fargo and each Distribution Date, the Business Day preceding the
        related Servicer Remittance Date. With respect to SPS, the date specified
        in the
        Servicing Agreement. The Determination Date for purposes of Article X hereof
        shall mean the 15th
        day of
        the month or, if such 15th
        day is
        not a Business Day, the first Business Day following such 15th
        day.

       

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

       

      “Disqualified
        Organization”: Any of the following: (i) the United States, any State or
        political subdivision thereof, any possession of the United States, or any
        agency or instrumentality of any of the foregoing (other than an instrumentality
        which is a corporation if all of its activities are subject to tax and, except
        for Freddie Mac, a majority of its board of directors is not selected by
        such
        governmental unit), (ii) any foreign government, any international organization,
        or any agency or instrumentality of any of the foregoing, (iii) any organization
        (other than certain farmers’ cooperatives described in Section 521 of the
        Code) which is exempt from the tax imposed by Chapter 1 of the Code (including
        the tax imposed by Section 511 of the Code on unrelated business taxable
        income), (iv) rural electric and telephone cooperatives described in
        Section 1381(a)(2)(C) of the Code, (v) an “electing large partnership” and
        (vi) any other Person so designated by the Trustee based upon an Opinion
        of
        Counsel that the holding of an Ownership Interest in a Residual Certificate
        by
        such Person may cause any Trust REMIC or any Person having an Ownership Interest
        in any Class of Certificates (other than such Person) to incur a liability
        for
        any federal tax imposed under the Code that would not otherwise be imposed
        but
        for the Transfer of an Ownership Interest in a Residual Certificate to such
        Person. The terms “United States,” “State” and “international organization”
shall have the meanings set forth in Section 7701 of the Code or successor
        provisions.

       

      “Distribution
        Account”: The separate trust account or accounts created and maintained by the
        Securities Administrator pursuant to Section 3.08(c) of this Agreement in
        the name of the Securities Administrator for the benefit of the
        Certificateholders and designated “Wells Fargo Bank, National Association, in
        trust for registered holders of ACE Securities Corp. Home Equity Loan Trust,
        Series 2006-SD1”. Funds in the Distribution Account shall be held in trust for
        the Certificateholders for the uses and purposes set forth in this Agreement.
        The Distribution Account must be an Eligible Account.

       

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

       

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

       

      “Due
        Period”: With respect to the Distribution Date in April 2006, the period
        commencing on March 1, 2006 and ending on April 1, 2006, and with respect
        to any
        Distribution Date thereafter, the period commencing on the second day of
        the
        month immediately preceding the month in which such Distribution Date occurs
        and
        ending on the first day of the month in which such Distribution Date
        occurs.

       

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

       

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

       

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

       

      “Excess
        Liquidation Proceeds”: To the extent that such amount is not required by law to
        be paid to the related Mortgagor, the amount, if any, by which Liquidation
        Proceeds with respect to a liquidated Mortgage Loan exceed the sum of (i)
        the
        outstanding principal balance of such Mortgage Loan and accrued but unpaid
        interest at the related Net Mortgage Rate through the last day of the month
        in
        which the related Liquidation Event occurs, plus (ii) related liquidation
        expenses or other amounts to which the related Servicer is entitled to be
        reimbursed from Liquidation Proceeds with respect to such liquidated Mortgage
        Loan pursuant to Section 3.09 of this Agreement or pursuant to the
        Servicing Agreement.

       

      “Excess
        Servicing Fee”: As defined in Section 5.01(b) of this
        Agreement.

       

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

       

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

       

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

       

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

       

      “Final
        Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO
        Property (other than a Mortgage Loan or REO Property purchased by the Sponsor
        or
        the Terminator pursuant to or as contemplated by Section 2.03,
        Section 3.13(c) or Section 10.01 of this Agreement), a determination
        made by the related Servicer that all Insurance Proceeds, Liquidation Proceeds
        and other payments or recoveries which the related Servicer, in its reasonable
        good faith judgment, expects to be finally recoverable in respect thereof
        have
        been so recovered, which determination shall be evidenced by a certificate
        of a
        Servicing Officer of the related Servicer delivered to the Master Servicer
        and
        maintained in its records.

       

      “Fitch”:
        Fitch Ratings or any successor thereto.

       

      “Foreclosure
        Restricted Mortgage Loans”: A Mortgage Loan that was 90 or more days delinquent
        as of the Closing Date and which was not current under a repayment plan and
        identified as such on the Mortgage Loan Schedule.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Interest
        Accrual Period”: With respect to any Distribution Date and the Offered
        Certificates, the period commencing on the Distribution Date of the month
        immediately preceding the month in which such Distribution Date occurs (or,
        in
        the case of the first Distribution Date, commencing on the Closing Date)
        and
        ending on the day preceding such Distribution Date. With respect to any
        Distribution Date and the Class CE-1 Certificates and Class CE-2 Certificates
        and the REMIC I Regular Interests, the one-month period ending on the last
        day
        of the calendar month immediately preceding the month in which such Distribution
        Date occurs.

       

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

       

      “Interest
        Determination Date”: With respect to the Class A Certificates, the Mezzanine
        Certificates, REMIC I Regular Interest I-LTA1A, REMIC I Regular Interest
        I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2,
        REMIC
        I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4 and REMIC I Regular
        Interest I-LTM5 and any Interest Accrual Period therefor, the second London
        Business Day preceding the commencement of such Interest Accrual
        Period.

       

      “Interest
        Distribution Amount”: With respect to any Distribution Date and any Class A
        Certificate, any Mezzanine Certificate, any Class CE-1 Certificate and any
        Class
        CE-2 Certificate, the aggregate Accrued Certificate Interest on the Certificates
        of such Class for such Distribution Date.

       

      “Interest
        Remittance Amount”: With respect to any Distribution Date, the portion of the
        Available Distribution Amount for such Distribution Date that represents
        interest received or advanced on the Mortgage Loans (other than any Simple
        Interest Excess, if applicable, and net of the Administration Fees, Arrearages
        collected by the Servicers and any Prepayment Charges and after taking into
        account amounts payable or reimbursable to the Trustee, the Custodians, the
        Securities Administrator, the Master Servicer, the Loan Performance Advisor
        or
        the Servicers pursuant to this Agreement, the Servicing Agreement or the
        Custodial Agreements, as applicable), plus any amounts withdrawn from the
        Simple
        Interest Excess Sub-Account.

       

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

       

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

       

      “Liquidation
        Event”: With respect to any Mortgage Loan, any of the following events: (i) such
        Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
        as to
        such Mortgage Loan or (iii) such Mortgage Loan is removed from REMIC I by
        reason
        of its being purchased, sold or replaced pursuant to or as contemplated by
        Section 2.03, Section 3.13(c) or Section 10.01 of this Agreement.
        With respect to any REO Property, either of the following events: (i) a Final
        Recovery Determination is made as to such REO Property or (ii) such REO Property
        is removed from REMIC I by reason of its being purchased pursuant to
        Section 10.01 of this Agreement.

       

      “Liquidation
        Proceeds”: The amount (other than Insurance Proceeds, amounts received in
        respect of the rental of any REO Property prior to REO Disposition, or required
        to be released to a Mortgagor or a senior lienholder in accordance with
        applicable law or the terms of the related Mortgage Loan Documents) received
        by
        the related Servicer in connection with (i) the taking of all or a part of
        a
        Mortgaged Property by exercise of the power of eminent domain or condemnation
        (other than amounts required to be released to the Mortgagor or a senior
        lienholder), (ii) the liquidation of a defaulted Mortgage Loan through a
        trustee’s sale, foreclosure sale or otherwise, (iii) the repurchase,
        substitution or sale of a Mortgage Loan or an REO Property pursuant to or
        as
        contemplated by Section 2.03, Section 3.13(c), Section 3.21 or
        Section 10.01 of this Agreement or pursuant to the Servicing Agreement or
        (iv) any Subsequent Recoveries.

       

      “Loan
        Performance Advisor”: MortgageRamp, Inc., a Delaware corporation, and its
        successors and assigns.

       

      “Loan
        Performance Advisor Agreement”: The Loan Performance Advisor Agreement, dated
        March 27, 2006, between the Depositor and the Loan Performance
        Advisor.

       

      “Loan
        Performance Advisor Fee”: The amount payable to the Loan Performance Advisor on
        each Distribution Date as compensation for all services rendered by it in
        the
        exercise and performance of any and all powers and duties of the Loan
        Performance Advisor under the Loan Performance Monitoring Agreements, which
        amount shall equal one twelfth of the product of (i) the Loan Performance
        Advisor Fee Rate multiplied by (ii) the Scheduled Principal Balance of the
        Mortgage Loans and any related REO Properties as of the first day of the
        related
        Due Period; provided,
        however
        that the
        Loan Performance Advisor Fee for any Distribution Date shall not be lower
        than
        $1,500.00.

       

      “Loan
        Performance Advisor Fee Rate”: 0.015% per annum.

       

      “Loan
        Performance Monitoring Agreements”: The agreement between (i) the Loan
        Performance Advisor and Ocwen and (ii) the Loan Performance Advisor and Wells
        Fargo, each regarding the loss mitigation and advisory services to be provided
        by the Loan Performance Advisor.

       

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

       

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

       

      “Loss
        Severity Percentage”: With respect to any Distribution Date, the percentage
        equivalent of a fraction, the numerator of which is the amount of Realized
        Losses incurred on a Mortgage Loan and the denominator of which is the principal
        balance of such Mortgage Loan immediately prior to the liquidation of such
        Mortgage Loan.

       

      “Marker
        Rate”: With respect to the Class CE-1 Certificates and any Distribution Date,
        a
        per annum rate equal to two (2) times the weighted average of the REMIC I
        Remittance Rate for each of REMIC I Regular Interest I-LTA1A, REMIC I Regular
        Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
        I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4,
        REMIC
        I Regular Interest I-LTM5 and REMIC I Regular Interest I-LTZZ, with the rate
        on
        each such REMIC I Regular Interest (other than REMIC I Regular Interest I-LTZZ)
        subject to a cap equal to the lesser of (i) the related One-Month LIBOR
        Pass-Through Rate and (ii) the related Net WAC Pass-Through Rate for the
        Corresponding Certificates for the purpose of this calculation for such
        Distribution Date and with the rate on REMIC I Regular Interest I-LTZZ subject
        to a cap of zero for the purpose of this calculation; provided however, each
        such cap for each REMIC I Regular Interest shall be multiplied by a fraction
        the
        numerator of which is the actual number of days in the related Interest Accrual
        Period and the denominator of which is 30.

       

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

       

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

       

      “Master
        Servicer Fee Rate”: 0.0475% per annum.

       

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

       

      “Maximum
        I-LTZZ Uncertificated Interest Deferral Amount”: With respect to any
        Distribution Date, the excess of (i) accrued interest at the REMIC I Remittance
        Rate applicable to REMIC I Regular Interest I-LTZZ for such Distribution
        Date on
        a balance equal to the Uncertificated Balance of REMIC I Regular Interest
        I-LTZZ
        minus the REMIC I Overcollateralization Amount, in each case for such
        Distribution Date, over (ii) Uncertificated Interest on REMIC I Regular Interest
        I-LTA1A, REMIC I Regular Interest I-LTA1B, REMIC I Regular Interest I-LTM1,
        REMIC I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I
        Regular Interest I-LTM4 and REMIC I Regular Interest I-LTM5 for such
        Distribution Date, with the rate on each such REMIC I Regular Interest subject
        to a cap equal to the lesser of (i) the related One-Month LIBOR Pass-Through
        Rate and (ii) the related Net WAC Pass-Through Rate for the Corresponding
        Certificates for the purpose of this calculation for such Distribution Date;
        provided however, each such cap for each REMIC I Regular Interest shall be
        multiplied by a fraction the numerator of which is the actual number of days
        in
        the related Interest Accrual Period and the denominator of which is
        30.

       

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

       

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

       

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

       

      “Mezzanine
        Certificate”: Any Class M-1, Class M-2, Class M-3, Class M-4 or Class M-5
        Certificate.

       

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

       

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

       

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

       

      “Monthly
        Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
        principal and interest on such Mortgage Loan which is payable by the related
        Mortgagor from time to time under the related Mortgage Note, a bankruptcy
        or a
        forebearance plan determined: (a) after giving effect to (i) any Deficient
        Valuation and/or Debt Service Reduction with respect to such Mortgage Loan
        and
        (ii) any reduction in the amount of interest collectible from the related
        Mortgagor pursuant to the Relief Act or similar state laws; (b) without giving
        effect to any extension granted or agreed to by the related Servicer pursuant
        to
        Section 3.01 of this Agreement or pursuant to the Servicing Agreement; and
        (c) on the assumption that all other amounts, if any, due under such Mortgage
        Loan are paid when due.

       

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

       

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

       

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

       

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

       

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

       

      “Mortgage
        Loan Purchase Agreement”: Shall mean the Mortgage Loan Purchase Agreement, dated
        as of March 27, 2006, between the Depositor and the Sponsor, a copy of which
        is
        attached hereto as Exhibit F.

       

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

       

      (i)  the
        Mortgage Loan identifying number;

       

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

       

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

       

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

       

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

       

      (vi)  the
        original months to maturity;

       

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

       

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

       

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

       

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

       

      (xi)  the
        stated maturity date;

       

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

       

      (xiii)  the
        amount of the Monthly Payment (including as set forth in a forebearance plan
        or
        in connection with a bankruptcy proceeding) as of the Cut-off Date;

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (xxii)  the
        Mortgage Rate at origination;

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      (xxx)  the
        Appraised Value of the Mortgaged Property;

       

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

       

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

       

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

       

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

       

      (xxxv)  the
        FICO
        score at origination;

       

      (xxxvi)  the
        amount of any Arrearage;

       

      (xxxvii)  a
        code
        indicating a Foreclosure Restricted Mortgage Loan;

       

      (xxxviii)  whether
        such Mortgage Loan is a Simple Interest Mortgage Loan;

       

      (xxxix)  the
        Servicing Fee; 

       

      (xl)  the
        Servicer; and

       

      (xli)  the
        Custodian.

       

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

       

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

       

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

       

      “Mortgaged
        Property”: The underlying property securing a Mortgage Loan, including any REO
        Property, consisting of an Estate in Real Property, which may or may not
        be
        improved by a Residential Dwelling.

       

      “Mortgagor”:
        The obligor on a Mortgage Note.

       

      “Net
        Monthly Excess Cashflow”: With respect to any Distribution Date, the sum of (i)
        the amount of any collections in respect of Arrearages on the Mortgage Loans,
        (ii) any Overcollateralization Reduction Amount for such Distribution Date
        and
        (iii) the excess of (x) the Available Distribution Amount for such Distribution
        Date over (y) the sum of (A) the aggregate Senior Interest Distribution Amount
        payable to the Holders of the Class A Certificates, (B) the aggregate Interest
        Distribution Amounts payable to the Holders of the Mezzanine Certificates
        and
        (C) the Principal Remittance Amount.

       

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

       

      “Net
        Simple Interest Excess”: As of any Distribution Date, an amount equal to the
        excess, if any, of the aggregate amount of Simple Interest Excess with respect
        to the Mortgage Loans over the amount of Simple Interest Shortfall with respect
        to the Mortgage Loans.

       

      “Net
        Simple Interest Shortfall”: As of any Distribution Date, an amount equal to the
        excess, if any, of the aggregate amount of Simple Interest Shortfall with
        respect to the Mortgage Loans over the amount of Simple Interest Excess with
        respect to the Mortgage Loans.

       

      “Net
        WAC
        Pass-Through Rate”: The Net WAC Pass-Through Rate for any Distribution Date and
        the Offered Certificates is a rate per annum (adjusted for the actual number
        of
        days elapsed in the related Interest Accrual Period) equal to the weighted
        average of the Net Mortgage Rates on the then outstanding Mortgage Loans,
        weighted based on their Scheduled Principal Balances as of the first day
        of the
        calendar month preceding the month in which such Distribution Date occurs.
        For
        federal income tax purposes, the economic equivalent of such rate shall be
        expressed as the weighted average of (adjusted for the actual number of days
        elapsed in the related Interest Accrual Period) the REMIC I Remittance Rates
        on
        the REMIC I Regular Interests, weighted on the basis of the Uncertificated
        Balance of each such REMIC I Regular Interest.

       

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

       

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

       

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

       

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

       

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

       

      “Notional
        Amount”: With respect to the Class CE-1 Certificates and any Distribution Date,
        the Uncertificated Balance of the REMIC I Regular Interests (other than REMIC
        I
        Regular Interest I-LTP) for such Distribution Date. As of the Closing Date,
        the
        Notional Amount of the Class CE-1 Certificates is equal to $170,111,921.02.
        

       

      With
        respect to the Class CE-2 Certificates and any Distribution Date, the Notional
        Amount of REMIC I Regular Interest I-LTCE2 for such Distribution Date.

       

      With
        respect to REMIC I Regular Interest I-LTCE2 and any Distribution Date, the
        sum
        of the aggregate principal balances of the (i) Ocwen Mortgage Loans, (ii)
        Wells
        Fargo Mortgage Loans and (iii) SPS Mortgage Loans for such Distribution
        Date.

       

      “Ocwen”:
        Ocwen Loan Servicing, LLC or any successor thereto.

       

      “Ocwen
        Mortgage Loans”: The Mortgage Loans serviced by Ocwen pursuant to the terms of
        this Agreement as specified on the Mortgage Loan Schedule.

       

      “Ocwen
        Servicing Fee Rate”: 0.40% per annum.

       

      “Offered
        Certificates”: The Class A Certificates and Mezzanine Certificates,
        collectively.

       

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

       

      “One-Month
        LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates,
        REMIC I Regular Interest I-LTA1A, REMIC I Regular Interest I-LTA1B, REMIC
        I
        Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
        Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
        I-LTM5 and any Interest Accrual Period therefor, the rate determined by the
        Securities Administrator on the related Interest Determination Date on the
        basis
        of the offered rate for one-month U.S. dollar deposits, as such rate appears
        on
        Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest Determination
        Date; provided that if such rate does not appear on Telerate Page 3750, the
        rate
        for such date will be determined on the basis of the offered rates of the
        Reference Banks for one-month U.S. dollar deposits, as of 11:00 a.m. (London
        time) on such Interest Determination Date. In such event, the Securities
        Administrator will request the principal London office of each of the Reference
        Banks to provide a quotation of its rate. If on such Interest Determination
        Date, two or more Reference Banks provide such offered quotations, One-Month
        LIBOR for the related Interest Accrual Period shall be the arithmetic mean
        of
        such offered quotations (rounded upwards if necessary to the nearest whole
        multiple of 1/16). If on such Interest Determination Date, fewer than two
        Reference Banks provide such offered quotations, One-Month LIBOR for the
        related
        Interest Accrual Period shall be the higher of (i) LIBOR as determined on
        the
        previous Interest Determination Date and (ii) the Reserve Interest Rate.
        Notwithstanding the foregoing, if, under the priorities described above,
        LIBOR
        for an Interest Determination Date would be based on LIBOR for the previous
        Interest Determination Date for the third consecutive Interest Determination
        Date, the Securities Administrator shall select an alternative comparable
        index
        (over which the Securities Administrator has no control), used for determining
        one-month Eurodollar lending rates that is calculated and published (or
        otherwise made available) by an independent party. The establishment of
        One-Month LIBOR by the Securities Administrator and the Securities
        Administrator’s subsequent calculation of the One-Month LIBOR Pass-Through Rates
        for the relevant Interest Accrual Period, shall, in the absence of manifest
        error, be final and binding.

       

      “One-Month
        LIBOR Pass-Through Rate”: With respect to the Class A-1A Certificates and, for
        purposes of the definition of “Marker Rate”, REMIC I Regular Interest
        I-LTA1A,
        a per
        annum rate equal to One-Month LIBOR plus the related Certificate
        Margin.

       

      With
        respect to the Class A-1B Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTA1B, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-1 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM1, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-2 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM2, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-3 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM3, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-4 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM4, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

      With
        respect to the Class M-5 Certificates and, for purposes of the definition
        of
“Marker Rate”, REMIC I Regular Interest I-LTM5, a per annum rate equal to
        One-Month LIBOR plus the related Certificate Margin.

       

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

       

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

       

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

       

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

       

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

       

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

       

      “P&I
        Advance”: As to any Mortgage Loan or REO Property, any advance made by a
        Servicer in respect of any Determination Date pursuant to Section 5.03 of
        this Agreement or pursuant to the Servicing Agreement, an Advance Financing
        Person pursuant to Section 3.25 of this Agreement or in respect of any
        Distribution Date by a successor Servicer pursuant to Section 8.02 of this
        Agreement or pursuant to the Servicing Agreement (which advances shall not
        include principal or interest shortfalls due to bankruptcy proceedings or
        application of the Relief Act or similar state or local laws.)

       

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

       

      With
        respect to the Class CE-1 Certificates and any Distribution Date, a rate
        per
        annum equal to the percentage equivalent of a fraction, the numerator of
        which
        is the sum of the amounts calculated pursuant to clauses (i) through (x)
        below,
        and the denominator of which is the aggregate Uncertificated Balances of
        REMIC I
        Regular Interest I-LTAA, REMIC I Regular Interest I-LTA1A, REMIC I Regular
        Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
        I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4,
        REMIC
        I Regular Interest I-LTM5 and REMIC I Regular Interest I-LTZZ. For purposes
        of
        calculating the Pass-Through Rate for the Class CE-1 Certificates, the numerator
        is equal to the sum of the following components:

       

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

       

      (ii)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTA1A minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTA1A;

       

      (iii)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTA1B minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTA1B;

       

      (iv)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTM1 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTM1;

       

      (v)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTM2 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTM2;

       

      (vi)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTM3 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTM3;

       

      (vii)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTM4 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTM4;

       

      (viii)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTM5 minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTM5;

       

      (ix)  the
        REMIC
        I Remittance Rate for REMIC I Regular Interest I-LTZZ minus the Marker Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC I Regular
        Interest I-LTZZ; and

       

      (x)  100%
        of
        the interest on REMIC I Regular Interest I-LTP.

       

      With
        respect to the Class CE-2 Certificates and any Distribution Date, an amount
        equal to 100% of the amounts distributed on REMIC I Regular Interest
        I-LTCE2.

       

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

       

      “Percentage
        Interest”: With respect to any Class of Certificates (other than the Residual
        Certificates), the undivided percentage ownership in such Class evidenced
        by
        such Certificate, expressed as a percentage, the numerator of which is the
        initial Certificate Principal Balance represented by such Certificate and
        the
        denominator of which is the aggregate initial Certificate Principal Balance
        or
        Notional Amount of all of the Certificates of such Class. The Offered
        Certificates are issuable only in minimum Percentage Interests corresponding
        to
        minimum initial Certificate Principal Balances of $25,000 and integral multiples
        of $1.00 in excess thereof. The Class P Certificates are issuable only in
        Percentage Interests corresponding to initial Certificate Principal Balances
        of
        $20 and integral multiples thereof. The Class CE-1 Certificates and the Class
        CE-2 Certificates are issuable only in minimum Percentage Interests
        corresponding to minimum initial Notional Amounts of $10,000 and integral
        multiples of $1.00 in excess thereof; provided, however, that a single
        Certificate of each such Class of Certificates may be issued having a Percentage
        Interest corresponding to the remainder of the aggregate initial Notional
        Amount
        of such Class or to an otherwise authorized denomination for such Class plus
        such remainder. With respect to any Residual Certificate, the undivided
        percentage ownership in such Class evidenced by such Certificate, as set
        forth
        on the face of such Certificate. The Residual Certificates are issuable in
        Percentage Interests of 20% and integral multiples of 5% in excess
        thereof.

       

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

       

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

       

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

       

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

       

      (iii)  repurchase
        obligations with a term not to exceed 30 days with respect to any security
        described in clause (i) above and entered into with a depository institution
        or
        trust company (acting as principal) rated A-1+ or higher by S&P, F-1 or
        higher by Fitch and A-2 or higher by Moody’s, provided, however, that collateral
        transferred pursuant to such repurchase obligation must be of the type described
        in clause (i) above and must (A) be valued daily at current market prices
        plus
        accrued interest, (B) pursuant to such valuation, be equal, at all times,
        to
        105% of the cash transferred by a party in exchange for such collateral and
        (C)
        be delivered to such party or, if such party is supplying the collateral,
        an
        agent for such party, in such a manner as to accomplish perfection of a security
        interest in the collateral by possession of certificated
        securities;

       

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

       

      (v)  commercial
        paper (including both non-interest-bearing discount obligations and
        interest-bearing obligations payable on demand or on a specified date not
        more
        than 30 days after the date of acquisition thereof) that is rated by each
        Rating
        Agency that rates such securities in its highest short-term unsecured debt
        rating available at the time of such investment;

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Prepayment
        Assumption”: A prepayment rate for the Mortgage Loans of 25% CPR. The Prepayment
        Assumption is used solely for determining the accrual of original issue discount
        on the Certificates for federal income tax purposes. A CPR (or Constant
        Prepayment Rate) represents an annualized constant assumed rate of prepayment
        each month of a pool of mortgage loans relative to its outstanding principal
        balance for the life of such pool.

       

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

       

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

       

      (i)  the
        Mortgage Loan identifying number;

       

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

       

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

       

      (iv)  the
        term
        of the related Prepayment Charge;

       

      (v)  the
        original Scheduled Principal Balance of the related Mortgage Loan;
        and

       

      (vi)  the
        Scheduled Principal Balance of the related Mortgage Loan as of the Cut-off
        Date.

       

      “Prepayment
        Interest Excess”: With respect to each Ocwen Mortgage Loan or Wells Fargo
        Mortgage Loan that was the subject of a Principal Prepayment in full during
        the
        portion of the related Prepayment Period occurring between the first day
        of the
        calendar month in which such Distribution Date occurs and (i) with respect
        to
        Ocwen, the Determination Date of the calendar month in which such Distribution
        Date occurs, and (ii) with respect to Wells Fargo, the 13th
        day of
        the month in which such Distribution Date occurs, an amount equal to interest
        (to the extent received) at the applicable Net Mortgage Rate on the amount
        of
        such Principal Prepayment for the number of days commencing on the first
        day of
        the calendar month in which such Distribution Date occurs and ending on the
        last
        date through which interest is collected from the related Mortgagor. Ocwen
        and
        Wells Fargo may withdraw such Prepayment Interest Excess from the related
        Collection Account in accordance with Section 3.09(a)(x) of this Agreement.
        The entitlement of SPS, if any, with respect to Prepayment Interest Excess
        is
        set forth in the Servicing Agreement.

       

      “Prepayment
        Interest Shortfall”: With respect to any Distribution Date, for each such
        Mortgage Loan that was the subject of a Principal Prepayment in full or in
        part
        during the portion of the related Prepayment Period occurring between the
        first
        day of the related Prepayment Period and the last day of the calendar month
        preceding the month in which such Distribution Date occurs that was applied
        by
        the related Servicer to reduce the outstanding principal balance of such
        Mortgage Loan on a date preceding the Due Date in the succeeding Prepayment
        Period, an amount equal to interest at the applicable Net Mortgage Rate on
        the
        amount of such Principal Prepayment for the number of days commencing on
        the
        date on which the prepayment is applied and ending on the last day of the
        calendar month preceding such Distribution Date. The obligations of Ocwen,
        Wells
        Fargo and the Master Servicer in respect of any Prepayment Interest Shortfall
        are set forth in Section 3.22 and Section 4.19, respectively of this
        Agreement. The obligations of SPS in respect of any Prepayment Interest
        Shortfalls are set forth in the Servicing Agreement.

       

      “Prepayment
        Period”: With respect to (i) the Ocwen Mortgage Loans and any Distribution Date,
        the calendar month preceding the month in which the related Distribution
        Date
        occurs with respect to Principal Prepayments in part, and the period beginning
        on the 16th
        day of
        the month preceding the related Distribution Date (or, the period commencing
        on
        the Cut-off Date, in connection with the first Prepayment Period) and ending
        on
        the 15th day of the month in which such Distribution Date occurs with respect
        to
        Principal Prepayments in full, (ii) the Wells Fargo Mortgage Loans, the calendar
        month preceding the month in which the related Distribution Date occurs with
        respect to Principal Prepayments in part, and the period beginning on the
        14th
        day of
        the month preceding the related Distribution Date (or the period commencing
        on
        the Cut-off Date, in connection with the first Prepayment Period) and ending
        on
        the 13th
        day of
        the month in which such Distribution Date occurs with respect to Principal
        Prepayments in full. With respect to the SPS Mortgage Loans, the period
        specified in the Servicing Agreement.

       

      “Principal
        Prepayment”: Any voluntary payment of principal made by the Mortgagor on a
        Mortgage Loan which is received in advance of its scheduled Due Date and
        which
        is not accompanied by an amount of interest representing the full amount
        of
        scheduled interest due on any Due Date in any month or months subsequent
        to the
        month of prepayment.

       

      “Principal
        Distribution Amount”: With respect to any Distribution Date will be the sum of
        (i) the principal portion of all Monthly Payments on the Mortgage Loans due
        during the related Due Period, whether or not received on or prior to the
        related Determination Date; (ii) the principal portion of all proceeds received
        in respect of the repurchase of a Mortgage Loan or, in the case of a
        substitution, certain amounts representing a principal adjustment, during
        the
        immediately preceding calendar month pursuant to or as contemplated by
        Section 2.03, Section 3.13(c) and Section 10.01 of this
        Agreement; (iii) the principal portion of all other unscheduled collections,
        including Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries,
        and
        all Principal Prepayments in full and in part received during the related
        Prepayment Period, to the extent applied as recoveries of principal on the
        Mortgage Loans, net in each case of payments or reimbursements to the Trustee,
        the Custodians, the Master Servicer, the Loan Performance Advisor, the
        Securities Administrator or the Servicers and (iv) the amount of any
        Overcollateralization Increase Amount for such Distribution Date minus (v)
        the
        amount of any Overcollateralization Reduction Amount for such Distribution
        Date.

       

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

       

      “Purchase
        Price”: With respect to any Mortgage Loan or REO Property to be purchased
        pursuant to or as contemplated by Section 2.03, Section 3.13(c) or
        Section 10.01 of this Agreement, and as confirmed by a certification of a
        Servicing Officer of the related Servicer to the Trustee, an amount equal
        to the
        sum of (i) 100% of the Scheduled Principal Balance thereof as of the date
        of
        purchase (or such other price as provided in Section 10.01 of this
        Agreement), (ii) in the case of (x) a Mortgage Loan, accrued interest on
        such
        Scheduled Principal Balance at the applicable Net Mortgage Rate in effect
        from
        time to time from the Due Date as to which interest was last covered by a
        payment by the Mortgagor or a P&I Advance by a Servicer, which payment or
        P&I Advance had as of the date of purchase been distributed pursuant to
        Section 5.01 of this Agreement, through the end of the calendar month in
        which the purchase is to be effected and (y) an REO Property, the sum of
        (1)
        accrued interest on such Scheduled Principal Balance at the applicable Net
        Mortgage Rate in effect from time to time from the Due Date as to which interest
        was last covered by a payment by the Mortgagor or a P&I Advance by a
        Servicer through the end of the calendar month immediately preceding the
        calendar month in which such REO Property was acquired, plus (2) REO Imputed
        Interest for such REO Property for each calendar month commencing with the
        calendar month in which such REO Property was acquired and ending with the
        calendar month in which such purchase is to be effected, net of the total
        of all
        net rental income, Insurance Proceeds, Liquidation Proceeds and P&I Advances
        that as of the date of purchase had been distributed as or to cover REO Imputed
        Interest pursuant to Section 5.01 of this Agreement, (iii) any unreimbursed
        Servicing Advances and P&I Advances (including Nonrecoverable P&I
        Advances and Nonrecoverable Servicing Advances) and any unpaid Servicing
        Fees
        allocable to such Mortgage Loan or REO Property, (iv) any amounts previously
        withdrawn from the related Collection Account pursuant to
        Section 3.09(a)(ix) and Section 3.13(b) of this Agreement or the
        Custodial Account pursuant to corresponding sections of the Servicing Agreement
        and (v) in the case of a Mortgage Loan required to be purchased pursuant
        to
        Section 2.03 of this Agreement, expenses reasonably incurred or to be
        incurred by a Servicer or the Trustee in respect of the breach or defect
        giving
        rise to the purchase obligation and any costs and damages incurred by the
        Trust
        Fund and the Trustee in connection with any violation by any such Mortgage
        Loan
        of any predatory or abusive lending law.

       

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

       

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

       

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

       

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

       

      “Realized
        Loss”: With respect to each Mortgage Loan as to which a Final Recovery
        Determination has been made, an amount (not less than zero), as reported
        by the
        related Servicer to the Master Servicer (in substantially the form of Schedule
        4
        hereto, or another form mutually acceptable to the related Servicer and the
        Master Servicer), equal to (i) the unpaid principal balance of such Mortgage
        Loan as of the commencement of the calendar month in which the Final Recovery
        Determination was made, plus (ii) accrued interest from the Due Date as to
        which
        interest was last paid by the Mortgagor through the end of the calendar month
        in
        which such Final Recovery Determination was made, calculated in the case
        of each
        calendar month during such period (A) at an annual rate equal to the annual
        rate
        at which interest was then accruing on such Mortgage Loan and (B) on a principal
        amount equal to the Scheduled Principal Balance of such Mortgage Loan as
        of the
        close of business on the Distribution Date during such calendar month, plus
        (iii) any amounts previously withdrawn from the related Collection Account
        or
        the Custodial Account in respect of such Mortgage Loan pursuant to
        Section 3.09(a)(ix) and Section 3.13(b) of this Agreement or pursuant
        to corresponding sections of the Servicing Agreement, minus (iv) the proceeds,
        if any, received in respect of such Mortgage Loan during the calendar month
        in
        which such Final Recovery Determination was made, net of amounts that are
        payable therefrom to the related Servicer with respect to such Mortgage Loan
        pursuant to Section 3.09(a)(iii) of this Agreement or pursuant to the
        Servicing Agreement.

       

      With
        respect to any REO Property as to which a Final Recovery Determination has
        been
        made, an amount (not less than zero) equal to (i) the unpaid principal balance
        of the related Mortgage Loan as of the date of acquisition of such REO Property
        on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to
        which
        interest was last paid by the Mortgagor in respect of the related Mortgage
        Loan
        through the end of the calendar month immediately preceding the calendar
        month
        in which such REO Property was acquired, calculated in the case of each calendar
        month during such period (A) at an annual rate equal to the annual rate at
        which
        interest was then accruing on the related Mortgage Loan and (B) on a principal
        amount equal to the Scheduled Principal Balance of the related Mortgage Loan
        as
        of the close of business on the Distribution Date during such calendar month,
        plus (iii) REO Imputed Interest for such REO Property for each calendar month
        commencing with the calendar month in which such REO Property was acquired
        and
        ending with the calendar month in which such Final Recovery Determination
        was
        made, plus (iv) any amounts previously withdrawn from the related Collection
        Account or the Custodial Account in respect of the related Mortgage Loan
        pursuant to Section 3.09(a)(ix) and Section 3.13(b) of this Agreement
        or pursuant to corresponding sections of the Servicing Agreement, as applicable,
        minus (v) the aggregate of all P&I Advances and Servicing Advances (in the
        case of Servicing Advances, without duplication of amounts netted out of
        the
        rental income, Insurance Proceeds and Liquidation Proceeds described in clause
        (vi) below) made by the related Servicer in respect of such REO Property
        or the
        related Mortgage Loan for which the related Servicer has been or, in connection
        with such Final Recovery Determination, will be reimbursed pursuant to
        Section 3.21 of this Agreement or pursuant to the Servicing Agreement out
        of rental income, Insurance Proceeds and Liquidation Proceeds received in
        respect of such REO Property, minus (vi) the total of all net rental income,
        Insurance Proceeds and Liquidation Proceeds received in respect of such REO
        Property that has been, or in connection with such Final Recovery Determination,
        will be transferred to the Distribution Account pursuant to Section 3.21 of
        this Agreement or pursuant to the Servicing Agreement.

       

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

       

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

       

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

       

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

       

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

       

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

       

      “Regular
        Certificate”: Any Class A Certificate, Mezzanine Certificate, Class CE-1
        Certificate, Class CE-2 Certificate or Class P Certificate.

       

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

       

      “Regulation
        AB”: Means Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
        §§229.1100-229.1123, as such may be amended from time to time, and subject
        to
        such clarification and interpretation as have been provided by the Commission
        in
        the adopting release (Asset-Backed Securities, Securities Act Release No.
        33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
        Commission, or as may be provided by the Commission or its staff from time
        to
        time.

       

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

       

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

       

      “Release
        Date”: The 40th day after the later of (i) commencement of the offering of the
        Class CE-1 Certificates or the Class CE-2 Certificates and (ii) the Closing
        Date.

       

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

       

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

       

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

       

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

       

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

       

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

       

      “REMIC
        I
        Overcollateralization Amount”: With respect to any date of determination, (i) 1%
        of the aggregate Uncertificated Balances of the REMIC I Regular Interests
        (other
        than the REMIC I Regular Interest I-LTP) minus (ii) the aggregate of the
        Uncertificated Balances of REMIC I Regular Interest I-LTA1A, REMIC I Regular
        Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
        I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4
        and
        REMIC I Regular Interest I-LTM5, in each case as of such date of
        determination.

       

      “REMIC
        I
        Principal Loss Allocation Amount”: With respect to any Distribution Date, an
        amount equal to (a) the product of (i) the aggregate Scheduled Principal
        Balance
        of the Mortgage Loans and REO Properties then outstanding and (ii) 1 minus
        a
        fraction, the numerator of which is two times the aggregate of the
        Uncertificated Balances of REMIC I Regular Interest I-LTA1A, REMIC I Regular
        Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
        I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4,
        REMIC
        I Regular Interest I-LTM5 and the denominator of which is the aggregate of
        the
        Uncertificated Balances of REMIC I Regular Interest I-LTA1A, REMIC I Regular
        Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
        I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4,
        REMIC
        I Regular Interest I-LTM5 and REMIC I Regular Interest I-LTZZ.

       

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

       

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

       

      “REMIC
        I
        Regular Interest I-LTA1A”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTA1A shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest I-LTA1B”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTA1B shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest I-LTM1”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTM1 shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest I-LTM2”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTM2 shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest I-LTM3”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTM3 shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest I-LTM4”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTM4 shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

      “REMIC
        I
        Regular Interest I-LTM5”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTM5 shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time, and shall
        be
        entitled to distributions of principal, subject to the terms and conditions
        hereof, in an aggregate amount equal to its initial Uncertificated Balance
        as
        set forth in the Preliminary Statement hereto.

       

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

       

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

       

      “REMIC
        I
        Regular Interest I-LTCE2”: One of the separate non-certificated beneficial
        ownership interests in REMIC I issued hereunder and designated as a Regular
        Interest in REMIC I. REMIC I Regular Interest I-LTCE2 shall accrue interest
        at
        the related REMIC I Remittance Rate in effect from time to time. REMIC I
        Regular
        Interest I-LTCE2 shall not be entitled to distributions of
        principal.

       

      “REMIC
        I
        Remittance Rate”: With respect to REMIC I Regular Interest I-LTAA, REMIC I
        Regular Interest I-LTA1A, REMIC I Regular Interest I-LTA1B, REMIC I Regular
        Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
        I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5,
        REMIC
        I Regular Interest I-LTZZ and REMIC I Regular Interest I-LTP, the weighted
        average of the Net Mortgage Rates of the Mortgage Loans. With respect to
        REMIC I
        Regular Interest I-LTCE2, a weighted average per annum rate, determined on
        a
        Mortgage Loan by Mortgage Loan basis (and solely with respect to the Ocwen
        Mortgage Loans, Wells Fargo Mortgage Loans and SPS Mortgage Loans), equal
        to the
        excess, if any, of (i) the excess of (a) the Mortgage Rate for each such
        Mortgage Loan over (b) the sum of the (x) Ocwen Servicing Fee Rate, Wells
        Fargo
        Servicing Fee Rate or SPS Servicing Fee Rate, as applicable, and provided,
        however, that each such rate shall be subject to a cap equal to the Servicing
        Fee Rate, (y) the Master Servicing Fee Rate and (z) Loan Performance Advisor
        Fee
        Rate, over (ii) the Net Mortgage Rate of each such Mortgage Loan.

       

      “REMIC
        I
        Required Overcollateralization Amount”: 1% of the Required Overcollateralization
        Amount.

       

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

       

      “REMIC
        II
        Certificate”: Any Regular Certificate or Class R Certificate.

       

      “REMIC
        II
        Certificateholder”: The Holder of any REMIC II Certificate.

       

      “REMIC
        Provisions”: Provisions of the federal income tax law relating to real estate
        mortgage investment conduits, which appear at Section 860A through 860G of
        the
        Code, and related provisions, and proposed, temporary and final regulations
        and
        published rulings, notices and announcements promulgated thereunder, as the
        foregoing may be in effect from time to time.

       

      “Remittance
        Report”: A report by Ocwen or Wells Fargo pursuant to Section 5.03(a) of
        this Agreement or by SPS pursuant to the Servicing Agreement.

       

      “Rents
        from Real Property”: With respect to any REO Property, gross income of the
        character described in Section 856(d) of the Code as being included in the
        term “rents from real property.”

       

      “REO
        Account”: The account or accounts maintained, or caused to be maintained, by
        Ocwen or Wells Fargo in respect of an REO Property pursuant to Section 3.21
        of this Agreement or by SPS pursuant to the Servicing Agreement.

       

      “REO
        Disposition”: The sale or other disposition of an REO Property on behalf of
        REMIC I.

       

      “REO
        Imputed Interest”: As to any REO Property, for any calendar month during which
        such REO Property was at any time part of REMIC I, one month’s interest at the
        applicable Net Mortgage Rate on the Scheduled Principal Balance of such REO
        Property (or, in the case of the first such calendar month, of the related
        Mortgage Loan, if appropriate) as of the close of business on the Distribution
        Date in such calendar month.

       

      “REO
        Principal Amortization”: With respect to any REO Property, for any calendar
        month, the excess, if any, of (a) the aggregate of all amounts received in
        respect of such REO Property during such calendar month, whether in the form
        of
        rental income, sale proceeds (including, without limitation, that portion
        of the
        Termination Price paid in connection with a purchase of all of the Mortgage
        Loans and REO Properties pursuant to Section 10.01 of this Agreement that
        is allocable to such REO Property) or otherwise, net of any portion of such
        amounts (i) payable in respect of the proper operation, management and
        maintenance of such REO Property or (ii) payable or reimbursable to Ocwen
        or
        Wells Fargo, as applicable, pursuant to Section 3.21(d) of this Agreement
        or SPS pursuant to the Servicing Agreement for unpaid Servicing Fees in respect
        of the related Mortgage Loan and unreimbursed Servicing Advances and P&I
        Advances in respect of such REO Property or the related Mortgage Loan, over
        (b)
        the REO Imputed Interest in respect of such REO Property for such calendar
        month.

       

      “REO
        Property”: A Mortgaged Property acquired by a Servicer or its nominee on behalf
        of REMIC I through foreclosure or deed-in-lieu of foreclosure, as described
        in
        Section 3.21 of this Agreement or by SPS pursuant to the Servicing
        Agreement.

       

      “Reportable
        Event”: Has the meaning set forth in Section 5.06(b) of this
        Agreement.

       

      “Required
        Overcollateralization Amount”: With respect to any Distribution Date (i) prior
        to the Stepdown Date, the product of (a) 5.75%
        (which
        shall build to 7.65%) and (b) the aggregate Scheduled Principal Balance of
        the
        Mortgage Loans as of the Cut-off Date, (ii) on or after the Stepdown Date
        provided a Trigger Event is not in effect, the greater of (a) the product
        of (x)
        15.30% and (y) the aggregate Scheduled Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period and (b) an amount equal to the
        product of (x) 0.50% and (y) the aggregate Scheduled Principal Balance of
        the
        Mortgage Loans as of the Cut-off Date, and (iii) on or after the Stepdown
        Date
        and a Trigger Event is in effect, the Required Overcollateralization Amount
        for
        the immediately preceding Distribution Date. Notwithstanding the foregoing,
        on
        and after any Distribution Date following the reduction of the aggregate
        Certificate Principal Balance of the Class A Certificates and the Mezzanine
        Certificates to zero, the Required Overcollateralization Amount shall be
        zero.

       

      “Reserve
        Fund”: A fund created pursuant to Section 3.24 which shall be an asset of
        the Trust Fund but which shall not be an asset of any Trust REMIC.

       

      “Reserve
        Interest Rate”: With respect to any Interest Determination Date, the rate per
        annum that the Securities Administrator determines to be either (i) the
        arithmetic mean (rounded upwards if necessary to the nearest whole multiple
        of
        1/16%) of the one-month U.S. dollar lending rates which New York City banks
        selected by the Securities Administrator, after consultation with the Depositor,
        are quoting on the relevant Interest Determination Date to the principal
        London
        offices of leading banks in the London interbank market or (ii) in the event
        that the Securities Administrator can determine no such arithmetic mean,
        the
        lowest one-month U.S. dollar lending rate which New York City banks selected
        by
        the Securities Administrator are quoting on such Interest Determination Date
        to
        leading European banks.

       

      “Residential
        Dwelling”: Any one of the following: (i) a detached one-family dwelling, (ii) a
        detached two- to four-family dwelling, (iii) a one-family dwelling unit in
        a
        Fannie Mae eligible condominium project, (iv) a cooperative, (v) a townhouse,
        (vi) a manufactured home, or (vii) a detached one-family dwelling in a planned
        unit development, none of which is a mobile home.

       

      “Residual
        Certificate”: Any one of the Class R Certificates.

       

      “Residual
        Interest”: The sole class of “residual interests” in a REMIC within the meaning
        of Section 860G(a)(2) of the Code.

       

      “Responsible
        Officer”: When used with respect to the Trustee, any officer of the Trustee
        having direct responsibility for the administration of this Agreement and,
        with
        respect to a particular matter, to whom such matter is referred because of
        such
        officer’s knowledge of and familiarity with the particular subject.

       

      “Rule
        144A”: As defined in Section 6.01(d).

       

      “S&P”:
        Standard and Poor’s Ratings Service, a division of the McGraw-Hill Companies,
        Inc.

       

      “Sarbanes-Oxley
        Act”: Means the Sarbanes-Oxley Act of 2002 and the rules and regulations of the
        Commission promulgated thereunder (including any interpretations thereof
        by the
        Commission’s staff). 

       

      “Sarbanes-Oxley
        Certification”: A written certification signed by an officer of the Master
        Servicer that complies with (i) the Sarbanes-Oxley Act of 2002, as amended
        from
        time to time, and (ii) Exchange Act Rules 13a-14(d) and 15d-14(d), as in
        effect
        from time to time; provided that if, after the Closing Date (a) the
        Sarbanes-Oxley Act of 2002 is amended, (b) the Rules referred to in clause
        (ii)
        are modified or superceded by any subsequent statement, rule or regulation
        of
        the Commission or any statement of a division thereof, or (c) any future
        releases, rules and regulations are published by the Commission from time
        to
        time pursuant to the Sarbanes-Oxley Act of 2002, which in any such case affects
        the form or substance of the required certification and results in the required
        certification being, in the reasonable judgment of the Master Servicer,
        materially more onerous that then form of the required certification as of
        the
        Closing Date, the Sarbanes-Oxley Certification shall be as agreed to by the
        Master Servicer, the Depositor and the Sponsor following a negotiation in
        good
        faith to determine how to comply with any such new requirements.

       

      “Scheduled
        Principal Balance”: With respect to any Mortgage Loan: (a) as of the Cut-off
        Date, the outstanding principal balance of such Mortgage Loan as of such
        date as
        set forth on the Mortgage Loan Schedule; (b) as of any Due Date subsequent
        to
        the Cut-off Date up to and including the Due Date in the calendar month in
        which
        a Liquidation Event occurs with respect to such Mortgage Loan, the outstanding
        principal balance of such Mortgage Loan as of the Cut-off Date, minus the
        sum of
        (i) the principal portion of each Monthly Payment due on or before such Due
        Date
        but subsequent to the Cut-off Date, whether or not received, (ii) the principal
        portion of all Monthly Payments due before the Cut-off Date and collected
        by the
        related Servicer after the Cut-off Date, (iii) all Principal Prepayments
        received before such Due Date but after the Cut-off Date, (iv) the principal
        portion of all Liquidation Proceeds and Insurance Proceeds received before
        such
        Due Date but after the Cut-off Date, net of any portion thereof that represents
        principal due (without regard to any acceleration of payments under the related
        Mortgage and Mortgage Note) on a Due Date occurring on or before the date
        on
        which such proceeds were received and (v) any Realized Loss incurred with
        respect thereto as a result of a Deficient Valuation occurring before such
        Due
        Date, but only to the extent such Realized Loss represents a reduction in
        the
        portion of principal of such Mortgage Loan not yet due (without regard to
        any
        acceleration of payments under the related Mortgage and Mortgage Note) as
        of the
        date of such Deficient Valuation; and (c) as of any Due Date subsequent to
        the
        occurrence of a Liquidation Event with respect to such Mortgage Loan, zero.
        With
        respect to any REO Property: (a) as of any Due Date subsequent to the date
        of
        its acquisition on behalf of the Trust Fund up to and including the Due Date
        in
        the calendar month in which a Liquidation Event occurs with respect to such
        REO
        Property, an amount (not less than zero) equal to the Scheduled Principal
        Balance of the related Mortgage Loan as of the Due Date in the calendar month
        in
        which such REO Property was acquired, minus the aggregate amount of REO
        Principal Amortization, if any, in respect of REO Property for all previously
        ended calendar months; and (b) as of any Due Date subsequent to the occurrence
        of a Liquidation Event with respect to such REO Property, zero.

       

      “Securities
        Act”: The Securities Act of 1933, as amended and the rules and regulations
        thereunder.

       

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

       

      “Senior
        Interest Distribution Amount”: With respect to any Distribution Date, an amount
        equal to the sum of (i) the Interest Distribution Amount for such Distribution
        Date for the Class A Certificates and (ii) the Interest Carry Forward Amount,
        if
        any, for such Distribution Date for the Class A Certificates.

       

      “Servicer”:
        Ocwen, Wells Fargo or SPS, or any successor thereto appointed hereunder or
        under
        the Servicing Agreement, as applicable, in connection with the servicing
        and
        administration of the related Mortgage Loans.

       

      “Servicer
        Event of Default”: One or more of the events described in
        Section 8.01(a).

       

      “Servicer
        Remittance Date”: With respect to any Distribution Date and (i) (A) Wells Fargo,
        on or before the close of business on the 22nd day of the month in which
        such
        Distribution Date occurs and (B) Ocwen, on or before 12:00 noon New York
        time on
        the 22nd day of the month in which such Distribution Date occurs; provided
        that
        if such 22nd day of a given month is not a Business Day, the Servicer Remittance
        Date for such month shall be the Business Day immediately preceding such
        22nd
        day and (ii) SPS, as set forth in the Servicing Agreement.

       

      “Servicer
        Report”: A report (substantially in the form of Schedules 3, 4 and 5 hereto) or
        otherwise in form and substance acceptable to the related Servicer, the Master
        Servicer and the Securities Administrator on an electronic data file or tape
        prepared by the related Servicer pursuant to Section 5.03(a) of this
        Agreement or pursuant to the Servicing Agreement, as applicable, with such
        additions, deletions and modifications as agreed to by the Master Servicer,
        the
        Securities Administrator and the related Servicer.

       

      “Service(s)(ing)”:
        Means, in accordance with Regulation AB, the act of servicing and administering
        the Mortgage Loans or any other assets of the Trust by an entity that meets
        the
        definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
        to the disclosure requirements set forth in Item 1108 of Regulation AB. For
        clarification purposes, any uncapitalized occurrence of this term shall have
        the
        meaning commonly understood by participants in the residential mortgage-backed
        securitization market.

       

      “Servicing
        Advances”: The
        customary and reasonable “out-of-pocket” costs and expenses incurred prior to or
        on or after the Cut-off Date (the amounts incurred prior to the Cut-off Date
        shall be identified on the Servicing Advance Schedule by (a) the related
        Servicer with respect to any Mortgage Loans that were transferred to such
        Servicer prior to the Cut-off Date and/or (b) the Depositor with respect
        to any
        Mortgage Loans that were transferred to the related Servicer after the Cut-off
        Date, as applicable) by a Servicer in connection with a default, delinquency
        or
        other unanticipated event by such Servicer in the performance of its servicing
        obligations, including, but not limited to, the cost of (i) the preservation,
        restoration and protection of a Mortgaged Property, (ii) any enforcement
        or
        judicial proceedings, including but not limited to foreclosures, in respect
        of a
        particular Mortgage Loan, including any expenses incurred in relation to
        any
        such proceedings that result from the Mortgage Loan being registered on the
        MERS® System, (iii) the management (including reasonable fees in connection
        therewith) and liquidation of any REO Property, (iv) the performance of its
        obligations under Section 3.01, Section 3.07, Section 3.11,
        Section 3.13 and Section 3.21 of this Agreement or under the Servicing
        Agreement, as applicable, and (v) obtaining any legal documentation required
        to
        be included in the Mortgage File and/or correcting any outstanding title
        issues
        (i.e. any lien or encumbrance on the Mortgaged Property that prevents the
        effective enforcement of the intended lien position) reasonably necessary
        for
        the related Servicer to perform its obligations under this Agreement or under
        the Servicing Agreement, as applicable. Servicing Advances also include any
        reasonable “out-of-pocket” cost and expenses (including legal fees) incurred by
        the related Servicer in connection with executing and recording instruments
        of
        satisfaction, deeds of reconveyance or Assignments to the extent not recovered
        from the Mortgagor or otherwise payable under this Agreement or under the
        Servicing Agreement, as applicable. The Servicers shall not be required to
        make
        any Nonrecoverable Servicing Advances.

       

      “Servicing
        Advance Schedule”: With respect to any Servicing Advances incurred prior to the
        Cut-off Date, the schedule or schedules provided by (a) the related Servicer
        with respect to any Mortgage Loans that were transferred to such Servicer
        prior
        to the Cut-off Date and/or (b) the Depositor with respect to any Mortgage
        Loans
        that were transferred to the related Servicer after the Cut-off Date, as
        applicable, to the Master Servicer and, if such schedule is provided by the
        Depositor, the related Servicer, on the earlier of the date on which such
        Servicer seeks reimbursement for a Servicing Advance made prior to the Cut-off
        Date, which schedule or schedules shall contain the information set forth
        on
        Schedule 6.

       

      “Servicing
        Agreement”: The Servicing Agreement, dated as of February 28, 2006, by and
        between the Sponsor and SPS, as modified by the Assignment
        Agreement.

       

      “Servicing
        Criteria”: Means the criteria set forth in paragraph (d) of Item 1122 of
        Regulation AB, as such may be amended from time to time.

       

      “Servicing
        Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
        equal to one-twelfth of the product of the Servicing Fee Rate multiplied
        by the
        Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the
        preceding calendar month. The Servicing Fee is payable solely from collections
        of interest on the Mortgage Loans or as otherwise provided herein or in the
        Servicing Agreement; provided, however, the Servicers shall only be entitled
        to
        a portion of the servicing fee calculated at the Ocwen Servicing Fee Rate,
        the
        Wells Fargo Servicing Fee Rate or the SPS Servicing Fee Rate, as
        applicable.

       

      “Servicing
        Fee Rate”: 0.50% per annum.

       

      “Servicing
        Function Participant”: Means any Sub-Servicer, Subcontractor or any other
        Person, other than each Servicer, the Master Servicer, each Custodian, the
        Trustee and the Securities Administrator, that is determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, without regard to any threshold referenced therein.

       

      “Servicing
        Officer”: Any officer of the related Servicer or Master Servicer involved in, or
        responsible for, the administration and servicing of Mortgage Loans, whose
        name
        and specimen signature appear on a list of Servicing Officers furnished by
        the
        related Servicer or the Master Servicer to the Trustee, the Master Servicer
        (in
        the case of a Servicer), the Securities Administrator and the Depositor on
        the
        Closing Date, as such list may from time to time be amended.

       

      “Simple
        Interest Excess”: As of any Determination Date for each Simple Interest
        Qualifying Loan, the excess, if any, of (i) the portion of the Monthly Payment
        received from the Mortgagor for such Mortgage Loan allocable to interest
        with
        respect to the related Due Period, over (ii) 30 days’ interest on the Scheduled
        Principal Balance of such Mortgage Loan at the Mortgage Rate.

       

      “Simple
        Interest Excess Sub-Account”: The sub-account of the Collection Account
        established by each of Ocwen and Wells Fargo pursuant to Section 3.08(b).
        Each Simple Interest Excess Sub-Account shall be an Eligible
        Account.

       

      “Simple
        Interest Mortgage Loan”: Any Mortgage Loan for which the interest due thereon is
        calculated based on the actual number of days elapsed between the date on
        which
        interest was last paid through the date on which the most current payment
        is
        received and identified as such on the Mortgage Loan Schedule.

       

      “Simple
        Interest Qualifying Loan”: As of any Determination Date, any Simple Interest
        Mortgage Loan that was neither prepaid in full during the related Due Period,
        nor delinquent with respect to a payment that became due during the related
        Due
        Period as of the close of business on the Determination Date following such
        Due
        Period.

       

      “Simple
        Interest Shortfall”: As of any Determination Date for each Simple Interest
        Qualifying Loan, the excess, if any, of (i) 30 days’ interest on the Scheduled
        Principal Balance of such Mortgage Loan at the Mortgage Rate, over (ii) the
        portion of the Monthly Payment received from the Mortgagor for such Mortgage
        Loan allocable to interest with respect to the related Due Period.

       

      “Single
        Certificate”: With respect to any Class of Certificates (other than the Residual
        Certificates), a hypothetical Certificate of such Class evidencing a Percentage
        Interest for such Class corresponding to an initial Certificate Principal
        Balance of $1,000. With respect to the Residual Certificates, a hypothetical
        Certificate of such Class evidencing a 100% Percentage Interest in such
        Class.

       

      “Sponsor”:
        DB Structured Products, Inc. or its successor in interest, in its capacity
        as
        seller under the Mortgage Loan Purchase Agreement.

       

      “SPS”:
        Select Portfolio Servicing, Inc. or any successor thereto.

       

      “SPS
        Mortgage Loans”: The Mortgage Loans being serviced by SPS pursuant to the
        Servicing Agreement.

       

      “SPS
        Servicing Fee Rate”: 0.40% per annum.

       

      “Startup
        Day”: With respect to each Trust REMIC, the day designated as such pursuant to
        Section 11.01(b) hereof.

       

      “Stepdown
        Date”: The earlier to occur of (i) the later to occur of (a) the Distribution
        Date occurring in April 2009 and (b) the first Distribution Date on which
        the
        Credit Enhancement Percentage (calculated for this purpose only after taking
        into account collections of principal on the Mortgage Loans but prior to
        any
        distribution of the Principal Distribution Amount to the holders of the
        Certificates then entitled to distributions of principal on such Distribution
        Date) is equal to or greater than 63.80% and (ii) the first Distribution
        Date
        following the Distribution Date on which the Certificate Principal Balance
        of
        the Class A Certificates has been reduced to zero.

       

      “Subcontractor”:
        means any vendor, subcontractor or other Person that is not responsible for
        the
        overall servicing of Mortgage Loans but performs one or more discrete functions
        identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
        under
        the direction or authority of any Servicer (or a Sub-Servicer of any Servicer),
        the Master Servicer, the Trustee, the Custodian or the Securities
        Administrator.

       

      “Subordinate
        Certificates”: Collectively, the Mezzanine Certificates and the Class CE-1
        Certificates.

       

      “Subsequent
        Recoveries”: As of any Distribution Date, amounts received during the related
        Prepayment Period by the related Servicer specifically related to a defaulted
        Mortgage Loan or disposition of an REO Property prior to the related Prepayment
        Period that resulted in a Realized Loss, after the liquidation or disposition
        of
        such defaulted Mortgage Loan, net of any amounts reimbursable to such Servicer
        related to obtaining such Subsequent Recovery.

       

      “Sub-Servicer”:
        Means any Person that (i) is considered to be a Servicing Function Participant,
        (ii) services Mortgage Loans on behalf of any Servicer, the Master Servicer,
        the
        Securities Administrator or the Trustee, and (iii) is responsible for the
        performance (whether directly or through sub-servicers or Subcontractors)
        of
        Servicing functions required to be performed under this Agreement or any
        related
        Sub-Servicing Agreement that is identified in Item 1122(d) of Regulation
        AB.

       

      “Sub-Servicing
        Agreement”: The written contract between a Servicer and a Sub-Servicer relating
        to servicing and administration of certain Mortgage Loans as provided in
        Section 3.02 of this Agreement or the Servicing Agreement, as
        applicable.

       

      “Substitution
        Shortfall Amount”: As defined in Section 2.03 of this
        Agreement.

       

      “Tax
        Returns”: The federal income tax return on Internal Revenue Service Form 1066,
        U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
        Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC
        Taxable Income or Net Loss Allocation, or any successor forms, to be filed
        on
        behalf of the Trust REMICs under the REMIC Provisions, together with any
        and all
        other information reports or returns that may be required to be furnished
        to the
        Certificateholders or filed with the Internal Revenue Service or any other
        governmental taxing authority under any applicable provisions of federal,
        state
        or local tax laws.

       

      “Telerate
        Page 3750”: The display designated as page “3750” on the Dow Jones Telerate
        Capital Markets Report (or such other page as may replace page 3750 on that
        report for the purpose of displaying London interbank offered rates of major
        banks).

       

      “Termination
        Price”: As defined in Section 10.01.

       

      “Terminator”:
        As defined in Section 10.01.

       

      “Transfer”:
        Any direct or indirect transfer, sale, pledge, hypothecation, or other form
        of
        assignment of any Ownership Interest in a Certificate.

       

      “Transferee”:
        Any Person who is acquiring by Transfer any Ownership Interest in a
        Certificate.

       

      “Transferor”:
        Any Person who is disposing by Transfer of any Ownership Interest in a
        Certificate.

       

      “Trigger
        Event”: A Trigger Event has occurred with respect to a Distribution Date on or
        after the Stepdown Date if either (x) the Delinquency Percentage exceeds
        25.00%
        of the Senior Credit Enhancement Percentage with respect to such Distribution
        Date or (y) the aggregate amount of Realized Losses incurred since the Cut-off
        Date through the last day of the related Due Period divided by the aggregate
        principal balance of the Mortgage Loans as of the Cut-off Date exceeds the
        applicable percentages set forth below with respect to such Distribution
        Date:

       

      
        	
                Distribution
                  Date

              	 	
                Percentage

              
	
                April
                  2008 to March 2009

              	 	
                2.50%,
                  plus 1/12 of 2.25% for each month thereafter

              
	
                April
                  2009 to March 2010

              	 	
                4.75%,
                  plus 1/12 of 1.75% for each month thereafter

              
	
                April
                  2010 to March 2011

              	 	
                6.50%,
                  plus 1/12 of 1.25% for each month thereafter

              
	
                April
                  2011 to March 2012

              	 	
                7.75%,
                  plus 1/12 of 0.50% for each month thereafter

              
	
                April
                  2012 and thereafter

              	 	
                8.25%,

              
	 	 	 

      

      

      “Trust”:
        ACE Securities Corp., Home Equity Loan Trust, Series 2006-SD1, the trust
        created
        hereunder.

       

      “Trust
        Fund”: Collectively, all of the assets of REMIC I, REMIC II and the Reserve Fund
        and any amounts on deposit therein and any proceeds thereof, and the Prepayment
        Charges.

       

      “Trust
        REMIC”: REMIC I or REMIC II.

       

      “Trustee”:
        HSBC Bank USA, National Association a national banking association, or its
        successor in interest, or any successor trustee appointed as herein
        provided.

       

      “Uncertificated
        Balance”: The principal amount of each of the REMIC I Regular Interests
        outstanding as of any date of determination. As of the Closing Date, the
        Uncertificated Balance of each REMIC I Regular Interest shall equal the amount
        set forth in the Preliminary Statement hereto as its initial uncertificated
        balance. On each Distribution Date, the Uncertificated Balance of each REMIC
        I
        Regular Interest shall be reduced by all distributions of principal made
        on such
        REMIC I Regular Interest on such Distribution Date pursuant to Section 5.01
        of
        this Agreement and, if and to the extent necessary and appropriate, shall
        be
        further reduced on such Distribution Date by Realized Losses as provided
        in
        Section 5.04 of this Agreement and the Uncertificated Balance of REMIC I
        Regular
        Interest I-LTZZ shall be increased by interest deferrals as provided in Section
        5.01(a)(1)(i) of this Agreement. The Uncertificated Balance of each REMIC
        I
        Regular Interest shall never be less than zero.

       

      “Uncertificated
        Interest”: With respect to any REMIC I Regular Interest for any Distribution
        Date, one month’s interest at the REMIC I Remittance Rate applicable to such
        REMIC I Regular Interest for such Distribution Date, accrued on the
        Uncertificated Balance thereof immediately prior to such Distribution Date.
        Uncertificated Interest in respect of each REMIC I Regular Interests shall
        accrue on the basis of a 360-day year consisting of twelve 30-day months.
        Uncertificated Interest with respect to each Distribution Date, as to any
        REMIC
        I Regular Interest, shall be reduced by an amount equal to the sum of (a)
        the
        aggregate Prepayment Interest Shortfall, if any, for such Distribution Date
        to
        the extent not covered by payments pursuant to Section 3.22 or Section 4.19
        of
        this Agreement or pursuant to the Servicing Agreement and (b) the aggregate
        amount of any Relief Act Interest Shortfall, if any allocated, in each case,
        to
        such REMIC I Regular Interest or REMIC I Regular Interest pursuant to Section
        1.02 of this Agreement. In addition, Uncertificated Interest with respect
        to
        each Distribution Date, as to any Uncertificated REMIC Regular Interest,
        shall
        be reduced by Realized Losses, if any, allocated to such Uncertificated REMIC
        Regular Interest pursuant to Section 1.02 and Section 5.04 of this
        Agreement.

       

      “Uninsured
        Cause”: Any cause of damage to a Mortgaged Property such that the complete
        restoration of such property is not fully reimbursable by the hazard insurance
        policies required to be maintained pursuant to Section 3.11 of this
        Agreement.

       

      “United
        States Person”: A citizen or resident of the United States, a corporation,
        partnership or other entity created or organized in, or under the laws of,
        the
        United States or any political subdivision thereof (except, in the case of
        a
        partnership, to the extent provided in regulations) provided that, for purposes
        solely of the restrictions on the transfer of any Class R Certificate, no
        partnership or other entity treated as a partnership for United States federal
        income tax purposes shall be treated as a United States Person unless all
        persons that own an interest in such partnership either directly or through
        any
        entity that is not a corporation for United States federal income tax purposes
        are required to be United States Persons, or an estate whose income is subject
        to United States federal income tax regardless of its source, or a trust
        if a
        court within the United States is able to exercise primary supervision over
        the
        administration of the trust and one or more United States persons have the
        authority to control all substantial decisions of the trust. To the extent
        prescribed in regulations by the Secretary of the Treasury, a trust which
        was in
        existence on August 20, 1996 (other than a trust treated as owned by the
        grantor
        under subpart E of part I of subchapter J of chapter I of the Code), and
        which
        was treated as a United States person on August 20, 1996 may elect to continue
        to be treated as a United States person notwithstanding the previous sentence.
        The term “United States” shall have the meaning set forth in Section 7701
        of the Code.

       

      “U.S.
        Bank”: U.S. Bank National Association, or any successor thereto.

       

      “U.S.
        Bank Custodial Agreement”: The Custodial Agreement dated as of February 28,
        2006, among the Trustee, Ocwen, SPS and U.S. Bank, as may be amended or
        supplemented from time to time.

       

      “Value”:
        With respect to any Mortgaged Property, the lesser of (i) the lesser of (a)
        the
        value thereof as determined by an appraisal made for the related originator
        of
        the Mortgage Loan at the time of origination of the Mortgage Loan by an
        appraiser who met the minimum requirements of Fannie Mae and Freddie Mac
        and (b)
        the value thereof as determined by a review appraisal conducted by the related
        originator of the Mortgage Loan in accordance with the related originator’s
        underwriting guidelines, (ii) the purchase price paid for the related Mortgaged
        Property by the Mortgagor with the proceeds of the Mortgage Loan; provided,
        however, (A) in the case of a Refinanced Mortgage Loan, such value of the
        Mortgaged Property is based solely upon the lesser of (1) the value determined
        by an appraisal made for the related originator of the Mortgage Loan of such
        Refinanced Mortgage Loan at the time of origination of such Refinanced Mortgage
        Loan by an appraiser who met the minimum requirements of Fannie Mae and Freddie
        Mac and (2) the value thereof as determined by a review appraisal conducted
        by
        the related originator of the Mortgage Loan in accordance with the related
        originator’s underwriting guidelines, and (B) in the case of a Mortgage Loan
        originated in connection with a “lease-option purchase,” such value of the
        Mortgaged Property is based on the lower of the value determined by an appraisal
        made for the related originator of such Mortgage Loan at the time of origination
        or the sale price of such Mortgaged Property if the “lease option purchase
        price” was set less than 12 months prior to origination, and is based on the
        value determined by an appraisal made for the originator of such Mortgage
        Loan
        at the time of origination if the “lease option purchase price” was set 12
        months or more prior to origination and (iii) the value determined pursuant
        to a
        broker’s price opinion or an automated value model conducted on behalf of the
        Sponsor.

       

      “Verification
        Report”: As defined in Section 4.20.

       

      “Voting
        Rights”: The portion of the voting rights of all of the Certificates which is
        allocated to any such Certificate. With respect to any date of determination,
        98% of all Voting Rights will be allocated among the Holders of the Class
        A
        Certificates, the Mezzanine Certificates and the Class CE-1 Certificates
        in
        proportion to the then outstanding Certificate Principal Balances of their
        respective Certificates, 1% of all Voting Rights will be allocated among
        the
        Holders of the Class P Certificates and 1% of all Voting Rights will be
        allocated among the Holders of the Class R Certificates. The Voting Rights
        allocated to each Class of Certificate shall be allocated among Holders of
        each
        such Class in accordance with their respective Percentage Interests as of
        the
        most recent Record Date.

       

      “Wells
        Fargo”: Wells Fargo Bank, National Association or any successor thereto, in its
        capacity as a Servicer hereunder or a Custodian under the Wells Fargo Custodial
        Agreement.

       

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

       

      “Wells
        Fargo Additional Servicing Fee Rate”: The Wells Fargo Servicing Fee Rate minus
        the Servicing Fee Rate.

       

      “Wells
        Fargo Custodial Agreement”: The Custodial Agreement dated as of
        February 28, 2006, among the Trustee, Wells Fargo as a Servicer and a
        Custodian and Ocwen, as may be amended or supplemented from time to
        time.

       

      “Wells
        Fargo Mortgage Loans”: The Mortgage Loans serviced by Wells Fargo pursuant to
        the terms of this Agreement as specified on the Mortgage Loan
        Schedule.

       

      “Wells
        Fargo Servicing Fee Rate”: 0.70% per annum.

       

      SECTION
        1.02  Allocation
        of Certain Interest Shortfalls.

       

      For
        purposes of calculating the amount of Accrued Certificate Interest and the
        amount of the Interest Distribution Amount for the Class A, Mezzanine and
        Class
        CE-1 Certificates for any Distribution Date, (1) the aggregate amount of
        any
        Prepayment Interest Shortfalls (to the extent not covered by payments by
        the
        related Servicer pursuant to Section 3.22 of this Agreement or pursuant to
        the Servicing Agreement or by the Master Servicer pursuant to Section 4.19
        of this Agreement) and any Relief Act Interest Shortfalls incurred in respect
        of
        the Mortgage Loans for any Distribution Date shall be allocated first, to
        the
        Class CE-1 Certificates, second, to the Class M-5 Certificates, third, to
        the
        Class M-4 Certificates, fourth, to the Class M-3 Certificates, fifth, to
        the
        Class M-2 Certificates, sixth, to the Class M-1 Certificates and seventh,
        to the
        Class A Certificates (on a pro rata basis, based on their respective Senior
        Interest Distribution Amounts before such reduction), on a pro rata basis,
        in
        each case based on, and to the extent of, one month’s interest at the then
        applicable respective Pass-Through Rate on the respective Certificate Principal
        Balance or Notional Amount, as applicable, of each such Certificate and (2)
        the
        aggregate amount of any Realized Losses allocated to the Mezzanine Certificates
        and Net WAC Rate Carryover Amounts paid to the Class A Certificates and the
        Mezzanine Certificates incurred for any Distribution Date shall be allocated
        to
        the Class CE-1 Certificates on a pro rata basis based on, and to the extent
        of,
        one month’s interest at the then applicable respective Pass-Through Rate on the
        respective Certificate Principal Balance or Notional Amount thereof, as
        applicable.

       

      For
        purposes of calculating the amount of Uncertificated Interest for the REMIC
        I
        Regular Interests for any Distribution Date, the aggregate amount of any
        Prepayment Interest Shortfalls (to the extent not covered by payments by
        the
        related Servicer pursuant to Section 3.22 of this Agreement or the Servicing
        Agreement or by the Master Servicer pursuant to Section 4.19 of this Agreement)
        and any Relief Act Interest Shortfalls incurred in respect of the Mortgage
        Loans
        for any Distribution Date shall be allocated among REMIC I Regular Interest
        I-LTAA, REMIC I Regular Interest I-LTA1A, REMIC I Regular Interest I-LTA1B,
        REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I
        Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular
        Interest I-LTM5 and REMIC I Regular Interest I-LTZZ pro rata based on, and
        to
        the extent of, one month’s interest at the then applicable respective REMIC I
        Remittance Rate on the respective Uncertificated Balance of each such REMIC
        I
        Regular Interest.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        II  

       

      CONVEYANCE
        OF MORTGAGE LOANS; 

      ORIGINAL
        ISSUANCE OF CERTIFICATES

       

      SECTION
        2.01  Conveyance
        of the Mortgage Loans.

       

      The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee, on behalf
        of the
        Trust, without recourse, for the benefit of the Certificateholders, all the
        right, title and interest of the Depositor, including any security interest
        therein for the benefit of the Depositor, in and to the Mortgage Loans
        identified on the Mortgage Loan Schedule, the rights (but not the obligations)
        of the Depositor under the Mortgage Loan Purchase Agreement and the Assignment
        Agreement (including, without limitation the right to enforce the obligations
        of
        the other parties thereto thereunder) and the right to all other assets included
        or to be included in REMIC I. Such assignment includes all interest and
        principal received by the Depositor and the Servicers on or with respect
        to the
        Mortgage Loans (including all payments of principal and interest due on such
        Mortgage Loans on or before the Cut-off Date, but not paid by the related
        Mortgagors by such date). The Depositor herewith delivers to the Trustee
        and the
        Servicers a copy of the Mortgage Loan Purchase Agreement.

       

      In
        connection with such transfer and assignment, the Depositor does hereby deliver
        to, and deposit with the related Custodian pursuant to the related Custodial
        Agreement the documents with respect to each Mortgage Loan as described under
        Section 2 of the Custodial Agreement (the “Mortgage Loan Documents”). In
        connection with such delivery and as further described in the Custodial
        Agreements, the Custodians will be required to review such Mortgage Loan
        Documents and deliver to the Trustee, the Depositor, the related Servicer
        and
        the Sponsor certifications (in the forms attached to the Custodial Agreements)
        with respect to such review with exceptions noted thereon. In addition, under
        the Custodial Agreements the Depositor will be required to cure certain defects
        with respect to the Mortgage Loan Documents for the related Mortgage Loans
        after
        the delivery thereof by the Depositor to the Custodians as more particularly
        set
        forth therein.

       

      Notwithstanding
        anything to the contrary contained herein, the parties hereto acknowledge
        that
        the functions of the Trustee with respect to the custody, acceptance, inspection
        and release of the Mortgage Files, including, but not limited to certain
        insurance policies and documents contemplated by Section 4.11 of this
        Agreement, and preparation and delivery of the certifications shall be performed
        by the Custodians pursuant to the terms and conditions of the Custodial
        Agreements.

       

      The
        Depositor shall deliver or cause the related originator to deliver to the
        related Servicer copies of all trailing documents required to be included
        in the
        related Mortgage File at the same time the originals or certified copies
        thereof
        are delivered to the Trustee or Custodians, such documents including the
        mortgagee policy of title insurance and any Mortgage Loan Documents upon
        return
        from the recording office. The Servicers shall not be responsible for any
        custodian fees or other costs incurred in obtaining such documents and the
        Depositor shall cause the Servicers to be reimbursed for any such costs the
        Servicers may incur in connection with performing their obligations under
        this
        Agreement or the Servicing Agreement, as applicable.

       

      The
        Mortgage Loans permitted by the terms of this Agreement to be included in
        the
        Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant
        to the Mortgage Loan Purchase Agreement, which contains, among other
        representations and warranties, a representation and warranty of the Sponsor
        that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
        Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
        Home Loan Protection Act effective January 1, 2004, as defined in the
        Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
        (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
        Act,
        effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9)
        or a
“high risk home loan” under the Illinois High Risk Home Loan Act, effective as
        of January 1, 2004), and (ii) Qualified Substitute Mortgage Loans (which,
        by
        definition as set forth herein and referred to in the Mortgage Loan Purchase
        Agreement, are required to conform to, among other representations and
        warranties, the representation and warranty of the Sponsor that no Qualified
        Substitute Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
        Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
        Home Loan Protection Act effective January 1, 2004, as defined in the
        Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
        (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
        Act,
        effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9)).
        The
        Depositor and the Trustee on behalf of the Trust understand and agree that
        it is
        not intended that any Mortgage Loan be included in the Trust that is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
        November 27, 2003, as defined in the New Mexico Home Loan Protection Act
        effective January 1, 2004, as defined in the Massachusetts Predatory Home
        Loan
        Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
        defined in the Indiana Home Loan Practices Act, effective January 1, 2005
        (Ind.
        Code Ann. Sections 24-9-1 through 24-9-9) or a “high risk home loan” under the
        Illinois High Risk Home Loan Act, effective as of January 1, 2004.

       

      SECTION
        2.02  Acceptance
        of REMIC I by Trustee.

       

      The
        Trustee acknowledges receipt, subject to the provisions of Section 2.01
        hereof and Section 2 of the Custodial Agreements, of the Mortgage Loan
        Documents and all other assets included in the definition of “REMIC I” under
        clauses (i), (iii), (iv) and (v) (to the extent of amounts deposited into
        the
        Distribution Account) and declares that it holds (or the applicable Custodian
        on
        its behalf holds) and will hold such documents and the other documents delivered
        to it constituting a Mortgage Loan Document, and that it holds (or the
        applicable Custodian on its behalf holds) or will hold all such assets and
        such
        other assets included in the definition of “REMIC I” in trust for the exclusive
        use and benefit of all present and future Certificateholders.

       

      SECTION
        2.03  Repurchase
        or Substitution of Mortgage Loans.

       

      (a)  Upon
        discovery or receipt of notice (i) of any materially defective document in
        a
        Mortgage File or that a document is missing from a Mortgage File, other than
        a
        defective or missing document with respect to the Mortgage Loans listed on
        Schedule A to the Mortgage Loan Purchase Agreement, or (ii) of a breach by
        the
        Sponsor of any representation, warranty or covenant under the Mortgage Loan
        Purchase Agreement in respect of any Mortgage Loan that materially and adversely
        affects the value of such Mortgage Loan or the interest therein of the
        Certificateholders, which notice shall be provided in accordance with
        Section 9.02(a)(viii), the Trustee shall promptly notify the Sponsor and
        the related Servicer of such defect, missing document or breach and request
        that
        the Sponsor deliver such missing document, cure such defect or breach within
        sixty (60) days from the date the Sponsor was notified of such missing document,
        defect or breach, and if the Sponsor does not deliver such missing document
        or
        cure such defect or breach in all material respects during such period, the
        Trustee shall enforce the obligations of the Sponsor under the Mortgage Loan
        Purchase Agreement to repurchase such Mortgage Loan from REMIC I at the Purchase
        Price within ninety (90) days after the date on which the Sponsor was notified
        of such missing document, defect or breach, if and to the extent that the
        Sponsor is obligated to do so under the Mortgage Loan Purchase Agreement.
        The
        Purchase Price for the repurchased Mortgage Loan shall be remitted to the
        related Servicer for deposit in the related Collection Account or the Custodial
        Account, as applicable, and the Trustee, upon receipt of written certification
        from the related Servicer of such deposit, shall release or cause the applicable
        Custodian (upon receipt of a request for release in the form attached to
        the
        related Custodial Agreement) to release to the Sponsor the related Mortgage
        File
        and the Trustee shall execute and deliver such instruments of transfer or
        assignment, in each case without recourse, representation or warranty, as
        the
        Sponsor shall furnish to it and as shall be necessary to vest in the Sponsor
        any
        Mortgage Loan released pursuant hereto, and the Trustee shall not have any
        further responsibility with regard to such Mortgage File. In lieu of
        repurchasing any such Mortgage Loan as provided above, if so provided in
        the
        Mortgage Loan Purchase Agreement, the Sponsor may cause such Mortgage Loan
        to be
        removed from REMIC I (in which case it shall become a Deleted Mortgage Loan)
        and
        substitute one or more Qualified Substitute Mortgage Loans in the manner
        and
        subject to the limitations set forth in Section 2.03(b) of this Agreement.
        It is understood and agreed that the obligation of the Sponsor to cure or
        to
        repurchase (or to substitute for) any Mortgage Loan as to which a document
        is
        missing, a material defect in a constituent document exists or as to which
        such
        a breach has occurred and is continuing shall constitute the sole remedy
        respecting such omission, defect or breach available to the Trustee and the
        Certificateholders.

       

      In
        addition, promptly upon the earlier of discovery by a Servicer or receipt
        of
        notice by a Servicer of the breach of the representation or covenant of the
        Sponsor set forth in Section 5(xvii)
        of the
        Mortgage Loan Purchase Agreement which materially and adversely affects the
        interests of the Holders of the Class P Certificates in any Prepayment Charge,
        such Servicer shall promptly notify the Sponsor and the Trustee of such breach.
        The Trustee shall enforce the obligations of the Sponsor under the Mortgage
        Loan
        Purchase Agreement to remedy such breach to the extent and in the manner
        set
        forth in the Mortgage Loan Purchase Agreement.

       

      (b)  Any
        substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage
        Loans
        made pursuant to Section 2.03(a) of this Agreement must be effected prior
        to the date which is two years after the Startup Day for REMIC I.

       

      As
        to any
        Deleted Mortgage Loan for which the Sponsor substitutes a Qualified Substitute
        Mortgage Loan or Loans, such substitution shall be effected by the Sponsor
        delivering to the Trustee or the applicable Custodian on behalf of the Trustee,
        for such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note,
        the
        Mortgage, the Assignment to the Trustee, and such other documents and
        agreements, with all necessary endorsements thereon, as are required by
        Section 2 of the Custodial Agreements, as applicable, together with an
        Officers’ Certificate providing that each such Qualified Substitute Mortgage
        Loan satisfies the definition thereof and specifying the Substitution Shortfall
        Amount (as described below), if any, in connection with such substitution.
        The
        applicable Custodian on behalf of the Trustee shall acknowledge receipt of
        such
        Qualified Substitute Mortgage Loan or Loans and, within ten (10) Business
        Days
        thereafter, review such documents and deliver to the Depositor, the Trustee
        and
        the related Servicer, with respect to such Qualified Substitute Mortgage
        Loan or
        Loans, an initial certification pursuant to the related Custodial Agreement,
        with any applicable exceptions noted thereon. Within one year of the date
        of
        substitution, the applicable Custodian on behalf of the Trustee shall deliver
        to
        the Depositor, the Trustee and the related Servicer a final certification
        pursuant to the related Custodial Agreement with respect to such Qualified
        Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
        Monthly Payments due with respect to Qualified Substitute Mortgage Loans
        in the
        month of substitution are not part of REMIC I and will be retained by the
        Sponsor. For the month of substitution, distributions to Certificateholders
        will
        reflect the Monthly Payment due on such Deleted Mortgage Loan on or before
        the
        Due Date in the month of substitution, and the Sponsor shall thereafter be
        entitled to retain all amounts subsequently received in respect of such Deleted
        Mortgage Loan. The Depositor shall give or cause to be given written notice
        to
        the Certificateholders that such substitution has taken place, shall amend
        the
        Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan
        from
        the terms of this Agreement and the substitution of the Qualified Substitute
        Mortgage Loan or Loans and shall deliver a copy of such amended Mortgage
        Loan
        Schedule to the Trustee and the related Servicer. Upon such substitution,
        such
        Qualified Substitute Mortgage Loan or Loans shall constitute part of the
        Trust
        Fund and shall be subject in all respects to the terms of this Agreement
        and the
        Mortgage Loan Purchase Agreement, including all applicable representations
        and
        warranties thereof included herein or in the Mortgage Loan Purchase
        Agreement.

       

      For
        any
        month in which the Sponsor substitutes one or more Qualified Substitute Mortgage
        Loans for one or more Deleted Mortgage Loans, the related Servicer will
        determine the amount (the “Substitution Shortfall Amount”), if any, by which the
        aggregate Purchase Price of all such Deleted Mortgage Loans exceeds the
        aggregate of, as to each such Qualified Substitute Mortgage Loan, the Scheduled
        Principal Balance thereof as of the date of substitution, together with one
        month’s interest on such Scheduled Principal Balance at the applicable Net
        Mortgage Rate, plus all outstanding P&I Advances and Servicing Advances
        (including Nonrecoverable P&I Advances and Nonrecoverable Servicing
        Advances) related thereto. On the date of such substitution, the Sponsor
        will
        deliver or cause to be delivered to the related Servicer for deposit in the
        related Collection Account or the Custodial Account an amount equal to the
        Substitution Shortfall Amount, if any, and the Trustee or the applicable
        Custodian on behalf of the Trustee, upon receipt of the related Qualified
        Substitute Mortgage Loan or Loans, upon receipt of a request for release
        in the
        form attached to the related Custodial Agreement and certification by the
        related Servicer of such deposit, shall release to the Sponsor the related
        Mortgage File or Files and the Trustee shall execute and deliver such
        instruments of transfer or assignment, in each case without recourse,
        representation or warranty, as the Sponsor shall deliver to it and as shall
        be
        necessary to vest therein any Deleted Mortgage Loan released pursuant
        hereto.

       

      In
        addition, the Sponsor shall obtain at its own expense and deliver to the
        Trustee
        an Opinion of Counsel to the effect that such substitution will not cause
        (a)
        any federal tax to be imposed on any Trust REMIC, including without limitation,
        any federal tax imposed on “prohibited transactions” under
        Section 860F(a)(1) of the Code or on “contributions after the startup date”
under Section 860G(d)(1) of the Code, or (b) any Trust REMIC to fail to
        qualify as a REMIC at any time that any Certificate is outstanding.

       

      (c)  Upon
        discovery by the Depositor, the Sponsor, a Servicer or the Trustee that any
        Mortgage Loan does not constitute a “qualified mortgage” within the meaning of
        Section 860G(a)(3) of the Code, the party discovering such fact shall
        within two (2) Business Days give written notice thereof to the other parties.
        In connection therewith, the Sponsor shall repurchase or substitute one or
        more
        Qualified Substitute Mortgage Loans for the affected Mortgage Loan within
        ninety
        (90) days of the earlier of discovery or receipt of such notice with respect
        to
        such affected Mortgage Loan. Such repurchase or substitution shall be made
        by
        (i) the Sponsor if the affected Mortgage Loan’s status as a non-qualified
        mortgage is or results from a breach of any representation, warranty or covenant
        made by the Sponsor under the Mortgage Loan Purchase Agreement or (ii) the
        Depositor, if the affected Mortgage Loan’s status as a non-qualified mortgage
        does not result from a breach of a representation or warranty. Any such
        repurchase or substitution shall be made in the same manner as set forth
        in
        Section 2.03(a) of this Agreement. The Trustee shall reconvey to the
        Sponsor the Mortgage Loan to be released pursuant hereto in the same manner,
        and
        on the same terms and conditions, as it would a Mortgage Loan repurchased
        for
        breach of a representation or warranty.

       

      (d) With
        respect to a breach of the representations made pursuant to Section 5(xvii)
        of the Mortgage Loan Purchase Agreement that materially and adversely affects
        the value of such Mortgage Loan or the interest therein of the
        Certificateholders, the Sponsor shall be required to take the actions set
        forth
        in this Section 2.03 of this Agreement.

       

      (e) Within
        ninety (90) days of the earlier of discovery by Ocwen or Wells Fargo or receipt
        of notice by Ocwen or Wells Fargo of the breach of any representation, warranty
        or covenant of Ocwen or Wells Fargo, as applicable, set forth in
        Section 2.05 of this Agreement, which materially and adversely affects the
        interests of the Certificateholders in any Mortgage Loan or Prepayment Charge,
        Ocwen or Wells Fargo, as applicable, shall cure such breach in all material
        respects.

       

      SECTION
        2.04  Representations
        and Warranties of the Master Servicer.

       

      The
        Master Servicer hereby represents, warrants and covenants to Ocwen, Wells
        Fargo,
        the Depositor and the Trustee, for the benefit of each of the Trustee and
        the
        Certificateholders, that as of the Closing Date or as of such date specifically
        provided herein:

       

      (i)  The
        Master Servicer is a national banking association duly formed, validly existing
        and in good standing under the laws of the United States of America and is
        duly
        authorized and qualified to transact any and all business contemplated by
        this
        Agreement to be conducted by the Master Servicer;

       

      (ii)  The
        Master Servicer has the full power and authority to conduct its business
        as
        presently conducted by it and to execute, deliver and perform, and to enter
        into
        and consummate, all transactions contemplated by this Agreement. The Master
        Servicer has duly authorized the execution, delivery and performance of this
        Agreement, has duly executed and delivered this Agreement, and this Agreement,
        assuming due authorization, execution and delivery by the other parties hereto,
        constitutes a legal, valid and binding obligation of the Master Servicer,
        enforceable against it in accordance with its terms except as the enforceability
        thereof may be limited by bankruptcy, insolvency, reorganization or similar
        laws
        affecting the enforcement of creditors’ rights generally and by general
        principles of equity;

       

      (iii)  The
        execution and delivery of this Agreement by the Master Servicer, the
        consummation by the Master Servicer of any other of the transactions herein
        contemplated, and the fulfillment of or compliance with the terms hereof
        are in
        the ordinary course of business of the Master Servicer and will not (A) result
        in a breach of any term or provision of the charter and by-laws of the Master
        Servicer or (B) conflict with, result in a breach, violation or acceleration
        of,
        or result in a default under, the terms of any other material agreement or
        instrument to which the Master Servicer is a party or by which it may be
        bound,
        or any statute, order or regulation applicable to the Master Servicer of
        any
        court, regulatory body, administrative agency or governmental body having
        jurisdiction over the Master Servicer; and the Master Servicer is not a party
        to, bound by, or in breach or violation of any indenture or other agreement
        or
        instrument, or subject to or in violation of any statute, order or regulation
        of
        any court, regulatory body, administrative agency or governmental body having
        jurisdiction over it, which materially and adversely affects or, to the Master
        Servicer’s knowledge, would in the future materially and adversely affect, (x)
        the ability of the Master Servicer to perform its obligations under this
        Agreement or (y) the business, operations, financial condition, properties
        or
        assets of the Master Servicer taken as a whole;

       

      (iv)  The
        Master Servicer does not believe, nor does it have any reason or cause to
        believe, that it cannot perform each and every covenant made by it and contained
        in this Agreement;

       

      (v)  No
        litigation is pending against the Master Servicer that would materially and
        adversely affect the execution, delivery or enforceability of this Agreement
        or
        the ability of the Master Servicer to perform any of its other obligations
        hereunder in accordance with the terms hereof;

       

      (vi)  There
        are
        no actions or proceedings against, or investigations known to it of, the
        Master
        Servicer before any court, administrative or other tribunal (A) that might
        prohibit its entering into this Agreement, (B) seeking to prevent the
        consummation of the transactions contemplated by this Agreement or (C) that
        might prohibit or materially and adversely affect the performance by the
        Master
        Servicer of its obligations under, or validity or enforceability of, this
        Agreement; and

       

      (vii)  No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Master
        Servicer of, or compliance by the Master Servicer with, this Agreement or
        the
        consummation by it of the transactions contemplated by this Agreement, except
        for such consents, approvals, authorizations or orders, if any, that have
        been
        obtained prior to the Closing Date.

       

      It
        is
        understood and agreed that the representations, warranties and covenants
        set
        forth in this Section 2.04 shall survive the resignation or termination of
        the parties hereto and the termination of this Agreement and shall inure
        to the
        benefit of the Trustee, the Depositor and the Certificateholders.

       

      SECTION
        2.05  Representations,
        Warranties and Covenants of Ocwen and Wells Fargo.

       

      (a)  Ocwen
        hereby represents, warrants and covenants to the Master Servicer, Wells Fargo,
        the Securities Administrator, the Depositor and the Trustee, for the benefit
        of
        each of such Persons and the Certificateholders that as of the Closing Date
        or
        as of such date specifically provided herein:

       

      (i)  Ocwen
        is
        a limited liability company duly organized and validly existing under the
        laws
        of the jurisdiction of its formation, and is duly authorized and qualified
        to
        transact any and all business contemplated by this Agreement to be conducted
        by
        Ocwen in any state in which a Mortgaged Property related to an Ocwen Mortgage
        Loan is located or is otherwise not required under applicable law to effect
        such
        qualification and, in any event, is in compliance with the doing business
        laws
        of any such State, to the extent necessary to ensure its ability to enforce
        each
        Ocwen Mortgage Loan and to service the Ocwen Mortgage Loans in accordance
        with
        the terms of this Agreement;

       

      (ii)  Ocwen
        has
        the full power and authority to conduct its business as presently conducted
        by
        it and to execute, deliver and perform, and to enter into and consummate,
        all
        transactions contemplated by this Agreement. Ocwen has duly authorized the
        execution, delivery and performance of this Agreement, has duly executed
        and
        delivered this Agreement, and this Agreement, assuming due authorization,
        execution and delivery by the other parties hereto, constitutes a legal,
        valid
        and binding obligation of Ocwen, enforceable against it in accordance with
        its
        terms, except as the enforceability thereof may be limited by bankruptcy,
        insolvency, reorganization or similar laws affecting the enforcement of
        creditors’ rights generally and by general principles of equity;

       

      (iii)  The
        execution and delivery of this Agreement by Ocwen, the servicing of the Ocwen
        Mortgage Loans by Ocwen hereunder, the consummation by Ocwen of any other
        of the
        transactions herein contemplated, and the fulfillment of or compliance with
        the
        terms hereof are in the ordinary course of business of Ocwen and will not
        (A)
        result in a breach of any term or provision of the charter or by-laws of
        Ocwen
        or (B) conflict with, result in a breach, violation or acceleration of, or
        result in a default under, the terms of any other material agreement or
        instrument to which Ocwen is a party or by which it may be bound, or any
        statute, order or regulation applicable to Ocwen of any court, regulatory
        body,
        administrative agency or governmental body having jurisdiction over Ocwen;
        and
        Ocwen is not a party to, bound by, or in breach or violation of any indenture
        or
        other agreement or instrument, or subject to or in violation of any statute,
        order or regulation of any court, regulatory body, administrative agency
        or
        governmental body having jurisdiction over it, which materially and adversely
        affects or, to Ocwen’s knowledge, would in the future materially and adversely
        affect, (x) the ability of Ocwen to perform its obligations under this
        Agreement, (y) the business, operations, financial condition, properties
        or
        assets of Ocwen taken as a whole or (z) the legality, validity or enforceability
        of this Agreement;

       

      (iv)  Ocwen
        does not believe, nor does it have any reason or cause to believe, that it
        cannot perform each and every covenant made by it and contained in this
        Agreement;

       

      (v)  No
        litigation is pending against Ocwen that would materially and adversely affect
        the execution, delivery or enforceability of this Agreement or the ability
        of
        Ocwen to service the Ocwen Mortgage Loans or to perform any of its other
        obligations hereunder in accordance with the terms hereof;

       

      (vi)  There
        are
        no actions or proceedings against, or investigations known to it of, Ocwen
        before any court, administrative or other tribunal (A) that might prohibit
        its
        entering into this Agreement, (B) seeking to prevent the consummation of
        the
        transactions contemplated by this Agreement or (C) that might prohibit or
        materially and adversely affect the performance by Ocwen of its obligations
        under, or the validity or enforceability of, this Agreement;

       

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

       

      (viii)  Ocwen
        has
        fully furnished and will continue to fully furnish, in accordance with the
        Fair
        Credit Reporting Act and its implementing regulations, accurate and complete
        information (e.g., favorable and unfavorable) on its borrower credit files
        to
        Equifax, Experian and Trans Union Credit Information Company or their successors
        on a monthly basis; 

       

      (ix)  Ocwen
        will not waive any Prepayment Charge related to an Ocwen Mortgage Loan other
        than in accordance with the standard set forth in Section 3.01 of this
        Agreement; and

       

      (x)  Ocwen
        is
        a member of MERS in good standing, and will comply in all material respects
        with
        the rules and procedures of MERS in connection with the servicing of the
        Ocwen
        Mortgage Loans that are registered with MERS.

       

      (b)  Wells
        Fargo hereby represents, warrants and covenants to the Master Servicer, Ocwen,
        the Securities Administrator, the Depositor and the Trustee, for the benefit
        of
        each of such Persons and the Certificateholders that as of the Closing Date
        or
        as of such date specifically provided herein:

       

      (i)  Wells
        Fargo is a national banking association duly organized and validly existing
        under the laws of the United States of America and is duly authorized and
        qualified to transact any and all business contemplated by this Agreement
        to be
        conducted by Wells Fargo in any state in which a Mortgaged Property related
        to a
        Wells Fargo Mortgage Loan is located or is otherwise not required under
        applicable law to effect such qualification and, in any event, is in compliance
        with the doing business laws of any such State, to the extent necessary to
        ensure its ability to enforce each Wells Fargo Mortgage Loan and to service
        the
        Wells Fargo Mortgage Loans in accordance with the terms of this
        Agreement;

       

      (ii)  Wells
        Fargo has the full power and authority to conduct its business as presently
        conducted by it and to execute, deliver and perform, and to enter into and
        consummate, all transactions contemplated by this Agreement. Wells Fargo
        has
        duly authorized the execution, delivery and performance of this Agreement,
        has
        duly executed and delivered this Agreement, and this Agreement, assuming
        due
        authorization, execution and delivery by the other parties hereto, constitutes
        a
        legal, valid and binding obligation of Wells Fargo, enforceable against it
        in
        accordance with its terms, except as the enforceability thereof may be limited
        by bankruptcy, insolvency, reorganization or similar laws affecting the
        enforcement of creditors’ rights generally and by general principles of
        equity;

       

      (iii)  The
        execution and delivery of this Agreement by Wells Fargo, the servicing of
        the
        Wells Fargo Mortgage Loans by Wells Fargo hereunder, the consummation by
        Wells
        Fargo of any other of the transactions herein contemplated, and the fulfillment
        of or compliance with the terms hereof are in the ordinary course of business
        of
        Wells Fargo and will not (A) result in a breach of any term or provision
        of the
        charter or by-laws of Wells Fargo or (B) conflict with, result in a breach,
        violation or acceleration of, or result in a default under, the terms of
        any
        other material agreement or instrument to which Wells Fargo is a party or
        by
        which it may be bound, or any statute, order or regulation applicable to
        Wells
        Fargo of any court, regulatory body, administrative agency or governmental
        body
        having jurisdiction over Wells Fargo; and Wells Fargo is not a party to,
        bound
        by, or in breach or violation of any indenture or other agreement or instrument,
        or subject to or in violation of any statute, order or regulation of any
        court,
        regulatory body, administrative agency or governmental body having jurisdiction
        over it, which materially and adversely affects or, to Wells Fargo’s knowledge,
        would in the future materially and adversely affect, (x) the ability of Wells
        Fargo to perform its obligations under this Agreement, (y) the business,
        operations, financial condition, properties or assets of Wells Fargo taken
        as a
        whole or (z) the legality, validity or enforceability of this
        Agreement;

       

      (iv)  Wells
        Fargo does not believe, nor does it have any reason or cause to believe,
        that it
        cannot perform each and every covenant made by it and contained in this
        Agreement;

       

      (v)  No
        litigation is pending against Wells Fargo that would materially and adversely
        affect the execution, delivery or enforceability of this Agreement or the
        ability of Wells Fargo to service the Wells Fargo Mortgage Loans or to perform
        any of its other obligations hereunder in accordance with the terms
        hereof;

       

      (vi)  There
        are
        no actions or proceedings against, or investigations known to it of, Wells
        Fargo
        before any court, administrative or other tribunal (A) that might prohibit
        its
        entering into this Agreement, (B) seeking to prevent the consummation of
        the
        transactions contemplated by this Agreement or (C) that might prohibit or
        materially and adversely affect the performance by Wells Fargo of its
        obligations under, or the validity or enforceability of, this
        Agreement;

       

      (vii)  No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by Wells Fargo
        of,
        or compliance by Wells Fargo with, this Agreement or the consummation by
        it of
        the transactions contemplated by this Agreement, except for such consents,
        approvals, authorizations or orders, if any, that have been obtained prior
        to
        the Closing Date;

       

      (viii)  Wells
        Fargo has fully furnished and will continue to fully furnish, in accordance
        with
        the Fair Credit Reporting Act and its implementing regulations, accurate
        and
        complete information (e.g., favorable and unfavorable) on its borrower credit
        files to Equifax, Experian and Trans Union Credit Information Company or
        their
        successors on a monthly basis; 

       

      (ix)  Wells
        Fargo will not waive any Prepayment Charge related to a Wells Fargo Mortgage
        Loan other than in accordance with the standard set forth in Section 3.01
        of this Agreement; and

       

      (x)  Wells
        Fargo is a member of MERS in good standing, and will comply in all material
        respects with the rules and procedures of MERS in connection with the servicing
        of the Wells Fargo Mortgage Loans that are registered with MERS.

       

      (c)  Notwithstanding
        anything to the contrary contained in this Agreement, if the covenant of
        Ocwen
        or Wells Fargo set forth in clause (ix) of Section 2.05(a) or (b) above is
        breached, Ocwen or Wells Fargo, as applicable will pay the amount of such
        waived
        Prepayment Charge, from its own funds without any right of reimbursement,
        for
        the benefit of the Holders of the Class P Certificates, by depositing such
        amount into the related Collection Account within ninety (90) days of the
        earlier of discovery by Ocwen or Wells Fargo, as applicable, or receipt of
        notice by Ocwen or Wells Fargo, as applicable, of such breach. Furthermore,
        notwithstanding any other provisions of this Agreement, any payments made
        by
        Ocwen or Wells Fargo, as applicable, in respect of any waived Prepayment
        Charges
        pursuant to this paragraph shall be deemed to be paid outside of the Trust
        Fund.

       

      (d)  It
        is
        understood and agreed that the representations, warranties and covenants
        set
        forth in this Section 2.05 shall survive the resignation or termination of
        the parties hereto, the termination of this Agreement and the delivery of
        the
        Mortgage Files to the related Custodian and shall inure to the benefit of
        the
        Trustee, the Master Servicer, the Securities Administrator, the Depositor
        and
        the Certificateholders. Upon discovery by any such Person or Ocwen or Wells
        Fargo, as applicable, of a breach of any of the foregoing representations,
        warranties and covenants which materially and adversely affects the value
        of any
        Mortgage Loan, Prepayment Charge or the interests therein of the
        Certificateholders, the party discovering such breach shall give prompt written
        notice (but in no event later than two (2) Business Days following such
        discovery) to the Trustee. Subject to Section 8.01 of this Agreement,
        unless such breach shall not be susceptible of cure within ninety (90) days,
        the
        obligation of Ocwen or Wells Fargo, as applicable, set forth in
        Section 2.03(e) of this Agreement to cure breaches shall constitute the
        sole remedy against Ocwen or Wells Fargo, as applicable, available to the
        Certificateholders, the Depositor or the Trustee on behalf of the
        Certificateholders respecting a breach of the representations, warranties
        and
        covenants contained in this Section 2.05.

       

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

       

      The
        Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
        to the applicable Custodian on its behalf of the Mortgage Loan Documents,
        subject to the provisions of Section 2.01 and Section 2.02 hereof and
        Section 2 of the related Custodial Agreement, together with the assignment
        to it of all other assets included in REMIC I, the receipt of which is hereby
        acknowledged. The interests evidenced by the Class R-I Interest, together
        with
        the REMIC I Regular Interests, constitute the entire beneficial ownership
        interest in REMIC I. The rights of the Holders of the Class R-I Interest
        and
        REMIC I (as holder of the REMIC I Regular Interests) to receive distributions
        from the proceeds of REMIC I in respect of the Class R-I Interest and the
        REMIC
        I Regular Interests, respectively, and all ownership interests evidenced
        or
        constituted by the Class R-I Interest and the REMIC I Regular Interests,
        shall
        be as set forth in this Agreement.

       

      SECTION
        2.07  Conveyance
        of the REMIC I Regular Interests; Acceptance of REMIC I by the
        Trustee.

       

      The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee, without recourse
        all the right, title and interest of the Depositor in and to the REMIC I
        Regular
        Interests for the benefit of the Class R-II Interest and REMIC II (as holder
        of
        the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC
        I
        Regular Interests and declares that it holds and will hold the same in trust
        for
        the exclusive use and benefit of all present and future Holders of the Class
        R-II Interest and REMIC II (as holder of the REMIC I Regular Interests).
        The
        rights of the Holder of the Class R-II Interest and REMIC II (as holder of
        the
        REMIC I Regular Interests) to receive distributions from the proceeds of
        REMIC
        II in respect of the Class R-II Interest and the Regular Certificates,
        respectively, and all ownership interests evidenced or constituted by the
        Class
        R-II Interest and the Regular Certificates, shall be as set forth in this
        Agreement. The Class R-II Interest and the Regular Certificates shall constitute
        the entire beneficial ownership interest in REMIC II.

       

      SECTION
        2.08  Issuance
        of the Residual Certificates.

       

      The
        Trustee acknowledges the assignment to it of the REMIC I Regular Interests
        and,
        concurrently therewith and in exchange therefor, pursuant to the written
        request
        of the Depositor executed by an officer of the Depositor, the Securities
        Administrator has executed and authenticated and the Trustee has delivered
        to or
        upon the order of the Depositor, the Class R Certificates in authorized
        denominations. The Class R Certificates evidence ownership in the Class R-I
        Interest and the Class R-II Interest.

       

      SECTION
        2.09  Establishment
        of the Trust.

       

      The
        Depositor does hereby establish, pursuant to the further provisions of this
        Agreement and the laws of the State of New York, an express trust to be known,
        for convenience, as “ACE Securities Corp., Home Equity Loan Trust, Series
        2006-SD1” and does hereby appoint HSBC Bank USA, National Association as Trustee
        in accordance with the provisions of this Agreement.

       

      SECTION
        2.10  Purpose
        and Powers of the Trust.

       

      The
        purpose of the common law trust, as created hereunder, is to engage in the
        following activities:

       

      (a)  acquire
        and hold the Mortgage Loans and the other assets of the Trust Fund and the
        proceeds therefrom;

       

      (b)  to
        issue
        the Certificates sold to the Depositor in exchange for the Mortgage
        Loans;

       

      (c)  to
        make
        payments on the Certificates;

       

      (d)  to
        engage
        in those activities that are necessary, suitable or convenient to accomplish
        the
        foregoing or are incidental thereto or connected therewith; and

       

      (e)  subject
        to compliance with this Agreement, to engage in such other activities as
        may be
        required in connection with conservation of the Trust Fund and the making
        of
        distributions to the Certificateholders.

       

      The
        trust
        is hereby authorized to engage in the foregoing activities. The Trustee shall
        not cause the trust to engage in any activity other than in connection with
        the
        foregoing or other than as required or authorized by the terms of this Agreement
        (or those ancillary thereto) while any Certificate is outstanding, and this
        Section 2.10 may not be amended, without the consent of the Certificateholders
        evidencing 51% or more of the aggregate voting rights of the
        Certificates.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        III

      ADMINISTRATION
        AND SERVICING OF THE OCWEN MORTGAGE LOANS 

      AND
        WELLS
        FARGO MORTGAGE LOANS; ACCOUNTS

       

      SECTION
        3.01  Ocwen
        and Wells Fargo to Act as a Servicer.

       

      The
        obligations of each of Ocwen and Wells Fargo hereunder to service and administer
        the Mortgage Loans shall be limited to the Ocwen Mortgage Loans and the Wells
        Fargo Mortgage Loans, respectively, and with respect to the duties and
        obligations of each Servicer references herein to the related Mortgage Loans
        shall be limited to the Ocwen Mortgage Loans (and the related proceeds thereof
        and related REO Properties) in the case of Ocwen, and the Wells Fargo Mortgage
        Loans (and the related proceeds thereof and related REO Properties) in the
        case
        of Wells Fargo, and in no event shall either Servicer have any responsibility
        or
        liability with respect to any Mortgage Loans serviced by the other Servicer
        hereunder. In addition, from and after the Closing Date, the SPS Mortgage
        Loans
        will be serviced and administered by SPS pursuant to the Servicing Agreement,
        and neither Ocwen nor Wells Fargo will have any responsibility to service
        or
        administer such Mortgage Loans or have any other obligation with respect
        to such
        Mortgage Loans (including reporting or remitting funds to the Master Servicer).
        Except as otherwise expressly stated herein, references in this Article III
        to
“Servicer” shall refer to Ocwen or Wells Fargo, as the case may be, and any
        successor thereto as a Servicer. 

       

      From
        and
        after the Closing Date with respect to the Ocwen Mortgage Loans and the Wells
        Fargo Mortgage Loans, Ocwen and Wells Fargo shall service and administer
        the
        related Mortgage Loans on behalf of the Trust Fund and in the best interests
        of
        and for the benefit of the Certificateholders (as determined by the related
        Servicer in its reasonable judgment) in accordance with the terms of this
        Agreement and the respective Mortgage Loans and all applicable law and
        regulations and, to the extent consistent with such terms, in the same manner
        in
        which it services and administers similar mortgage loans for its own portfolio,
        giving due consideration to customary and usual standards of practice of
        prudent
        mortgage lenders and loan servicers administering similar mortgage loans
        but
        without regard to:

       

      (i)  any
        relationship that the related Servicer or any Affiliate of the related Servicer
        may have with the related Mortgagor;

       

      (ii)  the
        ownership of any Certificate by the related Servicer or any Affiliate of
        the
        related Servicer;

       

      (iii)  the
        related Servicer’s obligation to make P&I Advances or Servicing Advances;
        or

       

      (iv)  the
        related Servicer’s right to receive compensation for its services
        hereunder.

       

      To
        the
        extent consistent with the foregoing, the related Servicer shall also seek
        to
        maximize the timely and complete recovery of principal and interest on the
        Mortgage Notes with respect to the related Mortgage Loans and shall waive
        (or
        permit a Sub-Servicer to waive) a Prepayment Charge only under the following
        circumstances: (i) such waiver is standard and customary in servicing similar
        Mortgage Loans and such waiver is related to a default or reasonably foreseeable
        default and would, in the reasonable judgment of the related Servicer, maximize
        recovery of total proceeds taking into account the value of such Prepayment
        Charge and the related Mortgage Loan and, if such waiver is made in connection
        with a refinancing of the related Mortgage Loan, such refinancing is related
        to
        a default or a reasonably foreseeable default, (ii) such Prepayment Charge
        is
        unenforceable in accordance with applicable law or the collection of such
        related Prepayment Charge would otherwise violate applicable law or (iii)
        the
        collection of such Prepayment Charge would be considered “predatory” pursuant to
        written guidance published or issued by any applicable federal, state or
        local
        regulatory authority acting in its official capacity and having jurisdiction
        over such matters. Notwithstanding any provision in this Agreement to the
        contrary, in the event the Prepayment Charge payable under the terms of the
        Mortgage Note is less than the amount of the Prepayment Charge set forth
        in the
        Prepayment Charge Schedule or other information provided to the related
        Servicer, the related Servicer shall not have any liability or obligation
        with
        respect to such difference (including any obligation to recalculate any
        prepayment charges), and in addition shall not have any liability or obligation
        to pay the amount of any uncollected Prepayment Charge if the failure to
        collect
        such amount is the direct result of inaccurate or incomplete information
        on the
        Prepayment Charge Schedule.

       

      Subject
        only to the above-described servicing standards (the “Accepted Servicing
        Practices”) and the terms of this Agreement and of the respective Mortgage
        Loans, the related Servicer shall have full power and authority, to do or
        cause
        to be done any and all things in connection with such servicing and
        administration which it may deem necessary or desirable with the goal of
        maximizing proceeds of the Mortgage Loan. Without limiting the generality
        of the
        foregoing, the related Servicer in its own name is hereby authorized and
        empowered by the Trustee when the related Servicer believes it appropriate
        in
        its best judgment, to execute and deliver, on behalf of the Trust Fund, the
        Certificateholders and the Trustee or any of them, and upon written notice
        to
        the Trustee, any and all instruments of satisfaction or cancellation, or
        of
        partial or full release or discharge or subordination, and all other comparable
        instruments, with respect to the Mortgage Loans and the Mortgaged Properties
        and
        to institute foreclosure proceedings or obtain a deed-in-lieu of foreclosure
        so
        as to convert the ownership of such properties, and to hold or cause to be
        held
        title to such properties, on behalf of the Trustee, for the benefit of the
        Trust
        Fund and the Certificateholders. The related Servicer shall service and
        administer the Mortgage Loans in accordance with applicable state and federal
        law and shall provide to the Mortgagors any reports required to be provided
        to
        them thereby. The related Servicer shall also comply in the performance of
        this
        Agreement with all reasonable rules and requirements of each insurer under
        any
        standard hazard insurance policy. Subject to Section 3.14 of this
        Agreement, the Trustee shall execute, at the written request of a Servicer,
        and
        furnish to the related Servicer a power of attorney in the form of Exhibit
        D
        hereto and other documents necessary or appropriate to enable the related
        Servicer to carry out its servicing and administrative duties hereunder or
        under
        the Servicing Agreement, as applicable, and furnished to the Trustee by the
        related Servicer, and the Trustee shall not be liable for the actions of
        the
        related Servicer under such powers of attorney and shall be indemnified by
        the
        related Servicer for any cost, liability or expense incurred by the Trustee
        in
        connection with the related Servicer’s use or misuse of any such power of
        attorney.

       

      Each
        Servicer further is hereby authorized and empowered in its own name or in
        the
        name of the Sub-Servicer, when such Servicer or the Sub-Servicer, as the
        case
        may be, believes it is appropriate in its best judgment to register any Mortgage
        Loan on the MERS® System, or cause the removal from the registration of any
        Mortgage Loan on the MERS® System, to execute and deliver, on behalf of the
        Trustee and the Certificateholders or any of them, any and all instruments
        of
        assignment and other comparable instruments with respect to such assignment
        or
        re-recording of a Mortgage in the name of MERS, solely as nominee for the
        Trustee and its successors and assigns. Any reasonable expenses incurred
        in
        connection with the actions described in the preceding sentence or as a result
        of MERS discontinuing or becoming unable to continue operations in connection
        with the MERS® System, shall be reimbursable by the Trust Fund to such
        Servicer.

       

      In
        accordance with Accepted Servicing Practices, the related Servicer shall
        make or
        cause to be made Servicing Advances as necessary for the purpose of effecting
        the payment of taxes and assessments on the Mortgaged Properties, which
        Servicing Advances shall be reimbursable in the first instance from related
        collections from the related Mortgagors pursuant to Section 3.07 of this
        Agreement, and further as provided in Section 3.09 of this Agreement;
        provided, however, the related Servicer shall only make such Servicing Advance
        if the related Mortgagor has not made such payment and if the failure to
        make
        such Servicing Advance would result in the loss of the related Mortgaged
        Property due to a tax sale or foreclosure as result of a tax lien; provided,
        however, that each Servicer shall be required to make such Servicing Advances
        only to the extent that such Servicing Advances, in the good faith judgment
        of
        such Servicer, will be recoverable by such Servicer out of Insurance Proceeds,
        Liquidation Proceeds, or otherwise out of the proceeds of the related Mortgage
        Loan. Any cost incurred by the related Servicer in effecting the payment
        of
        taxes and assessments on a Mortgaged Property shall not, for the purpose
        of
        calculating the Scheduled Principal Balance of such Mortgage Loan or
        distributions to Certificateholders, be added to the unpaid principal balance
        of
        the related Mortgage Loan, notwithstanding that the terms of such Mortgage
        Loan
        so permit.

       

      The
        parties to this Agreement acknowledge that Servicing Advances shall be
        reimbursable pursuant to Section 3.09 of this Agreement, and agree that no
        Servicing Advance shall be rejected or disallowed by any party unless it
        has
        been shown that such Servicing Advance was not made in accordance with the
        terms
        of this Agreement. Notwithstanding the foregoing, the parties hereto understand
        and agree that, with respect to any Mortgage Loan (1) the Master Servicer
        shall
        not approve the reimbursement of any Servicing Advance made with respect
        to such
        Mortgage Loan prior to the Cut-off Date (each, a “Pre-Cut-off Date Advance”)
        unless and until it has received a Servicing Advance Schedule listing the
        amount
        of Pre-Cut-off Date Advances made in respect of such Mortgage Loan from (a)
        the
        related Servicer with respect to any Mortgage Loans that were transferred
        to
        such Servicer prior to the Cut-off Date and/or (b) the Depositor with respect
        to
        any Mortgage Loans that were transferred to the related Servicer after the
        Cut-off Date, as applicable, (2) the aggregate Pre-Cut-off Date Advances
        reimbursable hereunder with respect to such Mortgage Loan shall not exceed
        the
        amount of Pre-Cut-off Date Advances for such Mortgage Loan shown on the
        Servicing Advance Schedule delivered to the Master Servicer, (3) the Depositor
        shall be deemed to have agreed with and approved the Pre-Cut-off Date Advances
        shown on any Servicing Advance Schedule furnished to the Master Servicer
        and (4)
        the Master Servicer will have no liability to the Depositor, any Servicer
        or any
        other Person, including any Certificateholder, for approving reimbursement
        of
        related Pre-Cut-off Date Advances so long as the aggregate amount of such
        advances reimbursed hereunder does not exceed of the amount of Pre-Cut-off
        Date
        Advances for such Mortgage Loan shown on the Servicing Advance
        Schedule.

       

      Notwithstanding
        anything in this Agreement to the contrary, the related Servicer may not
        make
        any future advances with respect to a Mortgage Loan and the related Servicer
        shall not permit any modification with respect to any Mortgage Loan serviced
        by
        such Servicer that would change the Mortgage Rate, reduce or increase the
        principal balance (except for reductions resulting from actual payments of
        principal) or change the final maturity date on such related Mortgage Loan
        (unless, as provided in Section 3.06 of this Agreement, the related
        Mortgagor is in default with respect to the related Mortgage Loan or such
        default is, in the judgment of the related Servicer, reasonably foreseeable)
        or
        any modification, waiver or amendment of any term of any Mortgage Loan that
        would both (A) effect an exchange or reissuance of such Mortgage Loan under
        Section 1001 of the Code (or final, temporary or proposed Treasury
        regulations promulgated thereunder) and (B) cause any Trust REMIC created
        hereunder to fail to qualify as a REMIC under the Code or the imposition
        of any
        tax on “prohibited transactions” or “contributions after the startup date” under
        the REMIC Provisions.

       

      In
        the
        event that the Mortgage Loan Documents relating to any Mortgage Loan contain
        provisions requiring the related Mortgagor to arbitrate disputes (at the
        option
        of the Trustee, on behalf of the Trust), the Trustee hereby authorizes the
        related Servicer to waive the Trustee’s right or option to arbitrate disputes
        and to send written notice of such waiver to the Mortgagor, although the
        Mortgagor may still require arbitration at its option.

       

      SECTION
        3.02  Sub-Servicing
        Agreement Between Each Servicer and Sub-Servicers.

       

      (a)  Each
        Servicer may arrange for the subservicing of any Mortgage Loan by a Sub-Servicer
        pursuant to a Sub-Servicing Agreement; provided that such sub-servicing
        arrangement and the terms of the related Sub-Servicing Agreement must provide
        for the servicing of such Mortgage Loans in a manner consistent with the
        servicing arrangements contemplated hereunder and the related Servicer shall
        cause any Sub-Servicer to comply with the provisions of this Agreement
        (including, without limitation, to provide the information required to be
        delivered under Sections 3.17, 3.18 and 3.19 hereof), to the same extent
        as if
        such Sub-Servicer were the Servicer. The related Servicer shall be responsible
        for obtaining from each Sub-Servicer and delivering to the Master Servicer
        any
        annual statement of compliance, assessment of compliance, attestation report
        and
        Sarbanes-Oxley related certification as and when required to be delivered.
        Each
        Sub-Servicer shall be (i) authorized to transact business in the state or
        states
        where the related Mortgaged Properties it is to service are situated, if
        and to
        the extent required by applicable law to enable the Sub-Servicer to perform
        its
        obligations hereunder and under the Sub-Servicing Agreement and (ii) a Freddie
        Mac or Fannie Mae approved mortgage servicer. Notwithstanding the provisions
        of
        any Sub-Servicing Agreement, any of the provisions of this Agreement relating
        to
        agreements or arrangements between the related Servicer or a Sub-Servicer
        or
        reference to actions taken through the related Servicer or otherwise, the
        related Servicer shall remain obligated and liable to the Depositor, the
        Trustee
        and the Certificateholders for the servicing and administration of the Mortgage
        Loans in accordance with the provisions of this Agreement without diminution
        of
        such obligation or liability by virtue of such Sub-Servicing Agreement or
        arrangements or by virtue of indemnification from the Sub-Servicer and to
        the
        same extent and under the same terms and conditions as if the related Servicer
        alone were servicing and administering the Mortgage Loans. Every Sub-Servicing
        Agreement entered into by the related Servicer shall contain a provision
        giving
        the successor Servicer the option to terminate such agreement in the event
        a
        successor Servicer is appointed. All actions of each Sub-Servicer performed
        pursuant to the related Sub-Servicing Agreement shall be performed as an
        agent
        of the related Servicer with the same force and effect as if performed directly
        by the related Servicer.

       

      (b)  Notwithstanding
        the foregoing, each Servicer shall be entitled to outsource one or more separate
        servicing functions to a Subcontractor that does not meet the eligibility
        requirements for a Sub-Servicer, so long as such outsourcing does not constitute
        the delegation of such Servicer’s obligation to perform all or substantially all
        of the servicing of the related Mortgage Loans to such Subcontractor. The
        related Servicer shall promptly, upon request, provide to the Master Servicer,
        the Trustee and the Depositor a written description (in form and substance
        reasonably satisfactory to the Master Servicer, the Trustee and the Depositor)
        of the role and function of each Subcontractor utilized by the related Servicer,
        specifying (i) the identity of each such Subcontractor “participating in the
        servicing function” within the meaning of Item 1122 of Regulation AB, and (ii)
        which elements of the Servicing Criteria will be addressed in assessments
        of
        compliance provided by each Subcontractor identified pursuant to clause (i)
        of
        this subsection; provided, however, that the Servicer shall not be required
        to
        provide the information in clauses (i) or (ii) of this subsection until such
        time that the applicable assessment of compliance is due pursuant to Section
        3.18 of this Agreement. The use by a Servicer of any such Subcontractor shall
        not release such Servicer from any of its obligations hereunder and such
        Servicer shall remain responsible hereunder for all acts and omissions of
        such
        Subcontractor as fully as if such acts and omissions were those of such
        Servicer, and such Servicer shall pay all fees and expenses of the Subcontractor
        from such Servicer’s own funds.

       

      (c)  As
        a
        condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the related Servicer shall cause any such Subcontractor used
        by
        such Servicer for the benefit of the Master Servicer, the Trustee and the
        Depositor to comply with the provisions of Sections 3.18 and 3.19 of this
        Agreement to the same extent as if such Subcontractor were the related Servicer.
        The related Servicer shall be responsible for obtaining from each such
        Subcontractor and delivering to the Master Servicer, the Trustee and any
        Depositor any assessment of compliance, attestation report and Sarbanes-Oxley
        related certification required to be delivered by such Subcontractor under
        Sections 3.18 and 3.19, in each case as and when required to be
        delivered.

       

      (d)  For
        purposes of this Agreement, the related Servicer shall be deemed to have
        received any collections, recoveries or payments with respect to the Mortgage
        Loans that are received by a Sub-Servicer regardless of whether such payments
        are remitted by the Sub-Servicer to such Servicer. 

       

      SECTION
        3.03  Successor
        Sub-Servicers.

       

      Any
        Sub-Servicing Agreement shall provide that the related Servicer shall be
        entitled to terminate any Sub-Servicing Agreement and to either itself directly
        service the related Mortgage Loans or enter into a Sub-Servicing Agreement
        with
        a successor Sub-Servicer which qualifies under Section 3.02 of this Agreement.
        Any Sub-Servicing Agreement shall include the provision that such agreement
        may
        be immediately terminated by any successor to the related Servicer without
        fee
        or, in the event a termination fee exists, such fee shall be payable by the
        related Servicer from its own funds without reimbursement therefor, in
        accordance with the terms of this Agreement, in the event that the related
        Servicer (or any successor to the related Servicer) shall, for any reason,
        no
        longer be the Servicer of the related Mortgage Loans (including termination
        due
        to a Servicer Event of Default). Each Servicer shall be entitled to enter
        into
        an agreement with its Sub-Servicer and Subcontractor for indemnification
        of such
        Servicer or Subcontractor, as applicable, by such Sub-Servicer and nothing
        contained in this Agreement shall be deemed to limit or modify such
        indemnification.

       

      SECTION
        3.04  No
        Contractual Relationship Between Sub-Servicer, Subcontractor, Trustee or
        the
        Certificateholders.

       

      Any
        Sub-Servicing Agreement and any other transactions or services relating to
        the
        Mortgage Loans involving a Sub-Servicer or a Subcontractor, as applicable,
        shall
        be deemed to be between the Sub-Servicer or Subcontractor, as applicable,
        and
        the related Servicer alone, and the Master Servicer, the Trustee and the
        Certificateholders shall not be deemed parties thereto and shall have no
        claims,
        rights, obligations, duties or liabilities with respect to any Sub-Servicer
        or
        Subcontractor except as set forth in Section 3.05 of this
        Agreement.

       

      SECTION
        3.05  Assumption
        or Termination of Sub-Servicing Agreement by Successor
        Servicer.

       

      In
        connection with the assumption of the responsibilities, duties and liabilities
        and of the authority, power and rights of the related Servicer hereunder
        by a
        successor Servicer (which may be the Trustee or the Master Servicer) pursuant
        to
        Section 8.02 of this Agreement, it is understood and agreed that the
        related Servicer’s rights and obligations under any Sub-Servicing Agreement then
        in force between the related Servicer and a Sub-Servicer shall be assumed
        simultaneously by such successor Servicer without act or deed on the part
        of
        such successor Servicer; provided, however, that any successor Servicer may
        terminate the Sub-Servicer.

       

      The
        related Servicer shall, upon the reasonable request of the Master Servicer,
        but
        at its own expense, deliver to the assuming party documents and records relating
        to each Sub-Servicing Agreement and an accounting of amounts collected and
        held
        by it and otherwise use its best efforts to effect the orderly and efficient
        transfer of the Sub-Servicing Agreement to the assuming party.

       

      The
        Servicing Fee payable to any such successor Servicer shall be payable from
        payments received on the Mortgage Loans in the amount and in the manner set
        forth in this Agreement.

       

      SECTION
        3.06  Collection
        of Certain Mortgage Loan Payments.

       

      Each
        Servicer shall make reasonable efforts to collect all payments called for
        under
        the terms and provisions of the related Mortgage Loans, and shall, to the
        extent
        such procedures shall be consistent with this Agreement and Accepted Servicing
        Practices, follow such collection procedures as it would follow with respect
        to
        mortgage loans comparable to the Mortgage Loans and held for its own account.
        Consistent with the foregoing, each Servicer may in its discretion (i) waive
        any
        late payment charge or, if applicable, penalty interest or (ii) extend the
        due
        dates for the Monthly Payments due on a Mortgage Note for a period of not
        greater than one-hundred and eighty (180) days; provided that any extension
        pursuant to this clause shall not affect the amortization schedule of any
        Mortgage Loan for purposes of any computation hereunder. Notwithstanding
        the
        foregoing, in the event that any Mortgage Loan is in default or, in the judgment
        of the related Servicer, such default is reasonably foreseeable, the related
        Servicer, consistent with Accepted Servicing Practices may waive, modify
        or vary
        any term of such Mortgage Loan (including, but not limited to, modifications
        that change the Mortgage Rate, forgive the payment of principal or interest
        or
        extend the final maturity date of such Mortgage Loan), accept payment from
        the
        related Mortgagor of an amount less than the Scheduled Principal Balance
        in
        final satisfaction of such Mortgage Loan, or consent to the postponement
        of
        strict compliance with any such term or otherwise grant indulgence to any
        Mortgagor if in the related Servicer’s determination such waiver, modification,
        postponement or indulgence is not materially adverse to the interests of
        the
        Certificateholders (taking into account any estimated Realized Loss that
        might
        result absent such action). No Servicer shall be required to institute or
        join
        in litigation with respect to collection of any payment (whether under a
        Mortgage, Mortgage Note or otherwise or against any public or governmental
        authority with respect to a taking or condemnation) if it reasonably believes
        that enforcing the provision of the Mortgage or other instrument pursuant
        to
        which such payment is required is prohibited by applicable law.

       

      SECTION
        3.07  Collection
        of Taxes, Assessments and Similar Items; Servicing Accounts.

       

      To
        the
        extent the terms of a Mortgage provide for Escrow Payments, the related Servicer
        shall establish and maintain one or more accounts (the “Servicing Accounts”),
        into which all collections from the related Mortgagors (or related advances
        from
        Sub-Servicers) for the payment of taxes, assessments, fire, flood, and hazard
        insurance premiums, and comparable items for the account of the Mortgagors
        (“Escrow Payments”) shall be deposited and retained. Servicing Accounts shall be
        Eligible Accounts. The related Servicer shall deposit in the clearing account
        in
        which it customarily deposits payments and collections on mortgage loans
        in
        connection with its mortgage loan servicing activities on a daily basis,
        and in
        no event more than one Business Day after the related Servicer’s receipt
        thereof, all Escrow Payments collected on account of the related Mortgage
        Loans
        and shall thereafter deposit such Escrow Payments in the Servicing Accounts,
        in
        no event later than the second Business Day after the deposit of good funds
        into
        the clearing account, and retain therein, all Escrow Payments collected on
        account of the Mortgage Loans, for the purpose of effecting the timely payment
        of any such items as required under the terms of this Agreement. Withdrawals
        of
        amounts from a Servicing Account may be made by the related Servicer only
        to (i)
        effect timely payment of taxes, assessments, fire, flood, and hazard insurance
        premiums, and comparable items; (ii) reimburse itself out of related collections
        for any Servicing Advances made prior to the Cut-off Date by the Sponsor
        or the
        related Servicer to the extent not previously reimbursed or following the
        Cut-off Date by the related Servicer pursuant to Section 3.01 of this
        Agreement (with respect to taxes and assessments) and Section 3.11 of this
        Agreement (with respect to fire, flood and hazard insurance); (iii) refund
        to
        Mortgagors any sums as may be determined to be overages; (iv) for application
        to
        restore or repair the related Mortgaged Property in accordance with Section
        3.11; (v) pay interest, if required and as described below, to Mortgagors
        on
        balances in the Servicing Account; or, only to the extent not required to
        be
        paid to the related Mortgagors, to pay itself interest on balances in the
        Servicing Account; or (vi) clear and terminate the Servicing Account at the
        termination of the related Servicer’s obligations and responsibilities in
        respect of the related Mortgage Loans under this Agreement in accordance
        with
        Article X. As part of its servicing duties, the related Servicer shall pay
        to
        the Mortgagors interest on funds in Servicing Accounts, to the extent required
        by law and, to the extent that interest earned on funds in the Servicing
        Accounts is insufficient, to pay such interest from its or their own funds,
        without any reimbursement therefor. Notwithstanding the foregoing, the Servicers
        shall not be obligated to collect Escrow Payments if the related Mortgage
        Loan
        does not require such payments, but the related Servicer shall nevertheless
        be
        obligated to make Servicing Advances as provided in Section 3.01 and
        Section 3.11 of this Agreement. In the event a Servicer shall deposit in
        the Servicing Accounts any amount not required to be deposited therein, it
        may
        at any time withdraw such amount from the related Servicing Accounts, any
        provision to the contrary notwithstanding.

       

      To
        the
        extent that a Mortgage does not provide for Escrow Payments, the related
        Servicer (i) shall determine whether any such payments are made by the Mortgagor
        in a manner and at a time that is necessary to avoid the loss of the Mortgaged
        Property due to a tax sale or the foreclosure as a result of a tax lien and
        (ii)
        shall ensure that all insurance required to be maintained on the Mortgaged
        Property pursuant to this Agreement is maintained. If any such payment has
        not
        been made and the related Servicer receives notice of a tax lien with respect
        to
        the Mortgage Loan being imposed, the related Servicer shall, promptly and
        to the
        extent required to avoid loss of the Mortgaged Property, advance or cause
        to be
        advanced funds necessary to discharge such lien on the Mortgaged Property
        unless
        the related Servicer determines the advance to be nonrecoverable. Each Servicer
        assumes full responsibility for the payment of all such bills and shall effect
        payments of all such bills irrespective of the Mortgagor’s faithful performance
        in the payment of same or the making of the Escrow Payments and shall make
        Servicing Advances to effect such payments subject to its determination of
        recoverability.

       

      SECTION
        3.08  Collection
        Accounts, Simple Interest Excess Sub-Account and Distribution
        Account.

       

      (a)  On
        behalf
        of the Trust Fund, each Servicer shall establish and maintain one or more
        “Collection Accounts”, held in trust for the benefit of the Trustee and the
        Certificateholders. On behalf of the Trust Fund, each Servicer shall deposit
        or
        cause to be deposited in the clearing account in which it customarily deposits
        payments and collections on mortgage loans in connection with its mortgage
        loan
        servicing activities on a daily basis, and in no event more than one (1)
        Business Day after such Servicer’s receipt thereof, and shall thereafter deposit
        in the related Collection Account, in no event later than two (2) Business
        Days
        after the deposit of good funds into the clearing account, as and when received
        or as otherwise required hereunder, the following payments and collections
        received or made by it on or subsequent to the Cut-off Date:

       

      (i)  all
        payments on account of principal, including Principal Prepayments, on the
        related Mortgage Loans;

       

      (ii)  all
        payments on account of interest (net of the related Servicing Fee payable
        to
        such Servicer and any Prepayment Interest Excess) on each related Mortgage
        Loan;

       

      (iii)  all
        Insurance Proceeds and Liquidation Proceeds (other than proceeds collected
        in
        respect of any particular REO Property) and all Subsequent Recoveries with
        respect to the related Mortgage Loans;

       

      (iv)  any
        amounts required to be deposited by the related Servicer pursuant to
        Section 3.10 of this Agreement in connection with any losses realized on
        Permitted Investments with respect to funds held in the related Collection
        Account;

       

      (v)  any
        amounts required to be deposited by the related Servicer pursuant to the
        second
        paragraph of Section 3.11(a) of this Agreement in respect of any blanket
        policy deductibles;

       

      (vi)  any
        Purchase Price or Substitution Shortfall Amount delivered to the related
        Servicer and all proceeds (net of amounts payable or reimbursable to the
        related
        Servicer, the Master Servicer, the Trustee, the Custodians or the Securities
        Administrator) of the related Mortgage Loans purchased in accordance with
        Section 2.03, Section 3.13 or Section 10.01 of this Agreement;
        and

       

      (vii)  any
        Prepayment Charges collected by the related Servicer in connection with the
        Principal Prepayment of any of the related Mortgage Loans or amounts required
        to
        be deposited by the related Servicer in connection with a breach of its
        obligations under Section 2.05 of this Agreement.

       

      The
        foregoing requirements for deposit in the related Collection Account shall
        be
        exclusive, it being understood and agreed that, without limiting the generality
        of the foregoing, payments in the nature of late payment charges, assumption
        fees or other similar fees need not be deposited by the related Servicer
        in the
        related Collection Account and may be retained by the related Servicer as
        additional servicing compensation. In the event a Servicer shall deposit
        in the
        related Collection Account any amount not required to be deposited therein,
        it
        may at any time withdraw such amount from such Collection Account, any provision
        herein to the contrary notwithstanding.

       

      (b)  Except
        as
        set forth below, no later than the Closing Date, each Servicer servicing
        Simple
        Interest Mortgage Loans shall establish and maintain a sub-account of the
        related Collection Account titled “[Servicer’s name], Simple Interest Excess
        Sub-Account in trust for the Holders of ACE Securities Corp. Home Equity
        Loan
        Trust, Series 2006-SD1, Asset Backed Pass-Through Certificates”. The related
        Servicer shall, on each Determination Date transfer from the Collection Account
        to the Simple Interest Excess Sub-Account all Net Simple Interest Excess,
        if
        any, pursuant to Section 3.09(a)(xi) of this Agreement, and shall maintain
        a record of all such deposits. In lieu of establishing a Simple Interest
        Excess
        Sub-Account, each Servicer may maintain any Net Simple Interest Excess in
        the
        Collection Account and maintain a separate accounting therefor.

       

      The
        related Servicer shall withdraw amounts on deposit in the Simple Interest
        Excess
        Sub-Account or in the related Collection Account (in respect of any Net Simple
        Interest Excess) on each Determination Date for deposit to the Distribution
        Account in an amount equal to the lesser of (i) the amount on deposit therein,
        and (ii) the Net Simple Interest Shortfall for such Distribution
        Date.

       

      The
        related Servicer shall remit to the Securities Administrator which shall
        thereupon distribute to the Class CE-1 Certificateholder, based on the
        information provided to it by such Servicer, the amount of any Net Simple
        Interest Excess remaining in the Simple Interest Excess Sub-Account or in
        the
        related Collection Account, as applicable, on the Distribution Date each
        year
        occurring in December, commencing in December 2006. Such distributions shall
        be
        deemed to be made on a first-in, first-out basis. In addition, the related
        Servicer shall clear and terminate the Simple Interest Excess Sub-Account,
        if
        any, upon the termination of this Agreement and retain any funds remaining
        therein.

       

      (c)  On
        behalf
        of the Trust Fund, the Securities Administrator shall establish and maintain
        one
        or more accounts (such account or accounts, the “Distribution Account”), held in
        trust for the benefit of the Trustee, the Trust Fund and the Certificateholders.
        On behalf of the Trust Fund, SPS shall deliver funds to the Securities
        Administrator for deposit in the Distribution Account as specified in the
        Servicing Agreement, and Ocwen and Wells Fargo shall deliver to the Securities
        Administrator in immediately available funds for deposit in the Distribution
        Account on the Servicer Remittance Date and with respect to Ocwen on or before
        12:00 noon New York time on the Servicer Remittance Date, that portion of
        the
        Available Distribution Amount (calculated without regard to the references
        in
        clause (2) of the definition thereof to amounts that may be withdrawn from
        the
        Distribution Account) for the related Distribution Date then on deposit in
        the
        related Collection Account and the amount of all Prepayment Charges collected
        by
        Ocwen or Wells Fargo in connection with the Principal Prepayment of any of
        the
        related Mortgage Loans then on deposit in the related Collection Account
        and the
        amount of any funds reimbursable to an Advance Financing Person pursuant
        to
        Section 3.25 of this Agreement. If the balance on deposit in a Collection
        Account exceeds $100,000 as of the commencement of business on any Business
        Day
        and such Collection Account constitutes an Eligible Account solely pursuant
        to
        clause (ii) of the definition of “Eligible Account,” the related Servicer shall,
        on or before 5:00 p.m. New York time on such Business Day, withdraw from
        such
        Collection Account any and all amounts payable or reimbursable to the Depositor,
        such Servicer, the Trustee, the Master Servicer, the Securities Administrator
        or
        the Sponsor pursuant to Section 3.09 of this Agreement and shall pay such
        amounts to the Persons entitled thereto or shall establish a separate Collection
        Account (which shall also be an Eligible Account) and withdraw from the existing
        Collection Account the amount on deposit therein in excess of $100,000 and
        deposit such excess in the newly created Collection Account.

       

      With
        respect to any remittance received by the Securities Administrator after
        the
        Servicer Remittance Date on which such payment was due, the Securities
        Administrator shall send written notice thereof to the related Servicer.
        The
        related Servicer shall pay to the Securities Administrator interest on any
        such
        late payment by such Servicer at an annual rate equal to Prime Rate (as defined
        in The Wall Street Journal) plus one percentage point, but in no event greater
        than the maximum amount permitted by applicable law. Such interest shall
        be paid
        by the related Servicer to the Securities Administrator on the date such
        late
        payment is made and shall cover the period commencing with the day following
        the
        Servicer Remittance Date and ending with the Business Day on which such payment
        is made, both inclusive. The payment by the related Servicer of any such
        interest, or the failure of the Securities Administrator to notify the related
        Servicer of such interest, shall not be deemed an extension of time for payment
        or a waiver of any Event of Default by the related Servicer.

       

      (d)  Funds
        in
        each Collection Account in each Simple Interest Excess Sub-Account and funds
        in
        the Distribution Account may be invested in Permitted Investments in accordance
        with the provisions set forth in Section 3.10 of this Agreement. The
        related Servicer shall give notice to the Trustee, the Securities Administrator
        and the Master Servicer of the location of the Collection Account maintained
        by
        it when established and prior to any change thereof. The Securities
        Administrator shall give notice to the Servicers and the Depositor of the
        location of the Distribution Account when established and prior to any change
        thereof.

       

      (e)  Funds
        held in a Collection Account at any time may be delivered by the related
        Servicer in immediately available funds to the Securities Administrator for
        deposit in the Distribution Account. In the event a Servicer shall deliver
        to
        the Securities Administrator for deposit in the Distribution Account any
        amount
        not required to be deposited therein, it may at any time request that the
        Securities Administrator withdraw such amount from the Distribution Account
        and
        remit to it any such amount, any provision herein to the contrary
        notwithstanding. In no event shall the Securities Administrator incur liability
        as a result of withdrawals from the Distribution Account at the direction
        of a
        Servicer in accordance with the immediately preceding sentence. In addition,
        each Servicer shall deliver to the Securities Administrator no later than
        the
        Servicer Remittance Date the amounts set forth in clauses (i) through (iv)
        below:

       

      (i)  any
        P&I Advances, as required pursuant to Section 5.03 of this
        Agreement;

       

      (ii)  any
        amounts required to be deposited pursuant to Section 3.21(d) or 3.21(f) of
        this Agreement in connection with any REO Property;

       

      (iii)  any
        amounts to be paid in connection with a purchase of Mortgage Loans and REO
        Properties pursuant to Section 10.01 of this Agreement; and

       

      (iv)  any
        amounts required to be deposited pursuant to Section 3.22 of this Agreement
        in connection with any Prepayment Interest Shortfalls.

       

      SECTION
        3.09  Withdrawals
        from the Collection Accounts and Distribution Account.

       

      (a)  Each
        Servicer shall, from time to time, make withdrawals from the related Collection
        Account for any of the following purposes or as described in Section 5.03
        of this Agreement:

       

      (i)  to
        remit
        to the Securities Administrator for deposit in the Distribution Account the
        amounts required to be so remitted pursuant to Section 3.08(c) of this
        Agreement or permitted to be so remitted pursuant to the first sentence of
        Section 3.08(e) of this Agreement;

       

      (ii)  subject
        to Section 3.13(d) of this Agreement, to reimburse itself (including any
        successor Servicer) for P&I Advances made by it, but only to the extent of
        amounts received which represent Late Collections (net of the related Servicing
        Fees payable to such Servicer) of Monthly Payments on related Mortgage Loans
        with respect to which such P&I Advances were made in accordance with the
        provisions of Section 5.03 of this Agreement;

       

      (iii)  subject
        to Section 3.13(d) of this Agreement, to pay itself any unpaid Servicing
        Fees payable to such Servicer and reimburse itself any unreimbursed Servicing
        Advances made by the Sponsor or the related Servicer prior to or following
        the
        Cut-off Date with respect to each Mortgage Loan, but only to the extent of
        any
        Liquidation Proceeds and Insurance Proceeds received with respect to such
        Mortgage Loan or rental or other income from the related REO
        Property;

       

      (iv)  to
        pay to
        itself as servicing compensation (in addition to the Servicing Fee payable
        to
        such Servicer) on the Servicer Remittance Date any interest or investment
        income
        earned on funds deposited in the related Collection Account and the Simple
        Interest Excess Sub-Account;

       

      (v)  to
        pay to
        itself or the Sponsor, as the case may be, with respect to each Mortgage
        Loan
        that has previously been purchased or replaced pursuant to Section 2.03 or
        Section 3.13(c) of this Agreement all amounts received thereon not included
        in the Purchase Price or the Substitution Shortfall Amount;

       

      (vi)  to
        reimburse itself (including any successor Servicer) for

       

      (A)
        any
        P&I Advance or Servicing Advance previously made by it, which the related
        Servicer has determined to be a Nonrecoverable P&I Advance or a
        Nonrecoverable Servicing Advance in accordance with the provisions of
        Section 5.03 of this Agreement; provided however, that a Servicer shall not
        be entitled to reimbursement for any Servicing Advance made prior to the
        Cut-off
        Date if such Servicer determines that such Servicing Advance constitutes
        a
        Nonrecoverable Servicing Advance;

       

      (B)
        any
        unpaid Servicing Fees payable to such Servicer to the extent not recoverable
        from Liquidation Proceeds, Insurance Proceeds or other amounts received with
        respect to the related Mortgage Loan under Section 3.08(a)(iii) of this
        Agreement; or

       

      (C)
        any
        P&I Advance or Servicing Advance made with respect to a delinquent Mortgage
        Loan which Mortgage Loan has been modified by the Servicer in accordance
        with
        the terms of this Agreement; provided that the Servicer shall only reimburse
        itself for such P&I Advances and Servicing Advances at the time of such
        modification or as otherwise provided in Section 3.09.

       

      (vii)  to
        reimburse itself or the Depositor for expenses incurred by or reimbursable
        to
        itself or the Depositor, as the case may be, pursuant to Section 3.01 or
        Section 7.03 of this Agreement;

       

      (viii)  to
        reimburse itself or the Trustee, as the case may be, for expenses reasonably
        incurred in respect of the breach or defect giving rise to the purchase
        obligation under Section 2.03 of this Agreement that were included in the
        Purchase Price of the related Mortgage Loan, including any expenses arising
        out
        of the enforcement of the purchase obligation;

       

      (ix)  to
        pay,
        or to reimburse itself for advances in respect of, expenses incurred in
        connection with any Mortgage Loan pursuant to Section 3.13(b) of this
        Agreement;

       

      (x)  to
        pay to
        itself any Prepayment Interest Excess on the related Mortgage Loans to the
        extent not retained pursuant to Section 3.08(a)(ii) of this
        Agreement;

       

      (xi)  to
        deposit in the Simple Interest Excess Sub-Account any amount required to
        be
        deposited therein pursuant to Section 3.08(b) of this Agreement;
        and

       

      (xii)  to
        clear
        and terminate the related Collection Account pursuant to Section 10.01 of
        this Agreement.

       

      Each
        Servicer shall keep and maintain separate accounting, on a Mortgage Loan
        by
        Mortgage Loan basis, for the purpose of justifying any withdrawal from the
        related Collection Account, to the extent held by or on behalf of it, pursuant
        to subclauses (ii), (iii), (v), (vi), (vii), (viii), (ix), (x) and (xi)
        above.

       

      (b)  The
        Securities Administrator shall, from time to time, make withdrawals from
        the
        Distribution Account, for any of the following purposes, without
        priority:

       

      (i)  to
        make
        distributions to Certificateholders in accordance with Section 5.01 of this
        Agreement;

       

      (ii)  to
        pay to
        itself, the Custodians and the Master Servicer amounts to which it is entitled
        pursuant to Section 9.05 or any other provision of this Agreement and any
        Extraordinary Trust Fund Expenses;

       

      (iii)  to
        reimburse itself or the Master Servicer pursuant to Section 8.02 of this
        Agreement;

       

      (iv)  [reserved];

       

      (v)  to
        pay
        any amounts in respect of taxes pursuant to Section 11.01(g)(v) of this
        Agreement;

       

      (vi)  to
        pay
        the Master Servicing Fee to the Master Servicer;

       

      (vii)  to
        pay
        the Loan Performance Advisor Fee to the Loan Performance Advisor; 

       

      (viii)  to
        pay
        the Wells Fargo Additional Servicing Fee to Wells Fargo pursuant to Section
        5.01(b) of this Agreement;

       

      (ix)  to
        pay
        the Excess Servicing Fee, if any, to the Class CE-2 Certificateholder pursuant
        to Section 5.01(b) of this Agreement; and

       

      (x)  to
        clear
        and terminate the Distribution Account pursuant to Section 10.01 of this
        Agreement.

       

      SECTION
        3.10  Investment
        of Funds in the Investment Accounts.

       

      (a)  Each
        Servicer may direct, by means of written directions (which may be standing
        directions), any depository institution maintaining the related Collection
        Account or Simple Interest Excess Sub-Account to invest the funds in such
        Collection Account or Simple Interest Excess Sub-Account (for purposes of
        this
        Section 3.10, an “Investment Account”) in one or more Permitted Investments
        bearing interest or sold at a discount, and maturing, unless payable on demand,
        (i) no later than the Business Day immediately preceding the date on which
        such
        funds are required to be withdrawn from such account pursuant to this Agreement,
        if a Person other than the Securities Administrator is the obligor thereon,
        and
        (ii) no later than the date on which such funds are required to be withdrawn
        from such account pursuant to this Agreement, if the Securities Administrator
        is
        the obligor on such Permitted Investment. Amounts in the Distribution Account
        may be invested in Permitted Investments as directed in writing by the Master
        Servicer and maturing, unless payable on demand, (i) no later than the Business
        Day immediately preceding the date on which such funds are required to be
        withdrawn from such account pursuant to this Agreement, if a Person other
        than
        the Securities Administrator is the obligor thereon, and (ii) no later than
        the
        date on which such funds are required to be withdrawn from such account pursuant
        to this Agreement, if the Securities Administrator is the obligor thereon.
        All
        such Permitted Investments shall be held to maturity, unless payable on demand.
        Any investment of funds shall be made in the name of the Trustee (in its
        capacity as such) or in the name of a nominee of the Trustee. The Securities
        Administrator shall be entitled to sole possession over each such investment
        in
        the Distribution Account and, subject to subsection (b) below, the income
        thereon, and any certificate or other instrument evidencing any such investment
        shall be delivered directly to the Securities Administrator or its agent,
        together with any document of transfer necessary to transfer title to such
        investment to the Trustee or its nominee. In the event amounts on deposit
        in a
        Collection Account are at any time invested in a Permitted Investment payable
        on
        demand, the party with investment discretion over such Investment Account
        shall:

       

      (x) consistent
        with any notice required to be given thereunder, demand that payment thereon
        be
        made on the last day such Permitted Investment may otherwise mature hereunder
        in
        an amount equal to the lesser of (1) all amounts then payable thereunder
        and (2)
        the amount required to be withdrawn on such date; and

       

      (y) demand
        payment of all amounts due thereunder promptly upon receipt by such party
        of
        written notice from the related Servicer that such Permitted Investment would
        not constitute a Permitted Investment in respect of funds thereafter on deposit
        in the Investment Account.

       

      (b)  All
        income and gain realized from the investment of funds deposited in the related
        Collection Account or Simple Interest Excess Sub-Account shall be for the
        benefit of the related Servicer and shall be subject to its withdrawal in
        accordance with Section 3.09 of this Agreement. Each Servicer shall deposit
        in the related Collection Account or Simple Interest Excess Sub-Account the
        amount of any loss incurred in respect of any such Permitted Investment made
        with funds in such account immediately upon realization of such loss. All
        earnings and gain realized from the investment of funds deposited in the
        Distribution Account shall be for the benefit of the Master Servicer. The
        Master
        Servicer shall remit from its own funds for deposit into the Distribution
        Account the amount of any loss incurred on Permitted Investments in the
        Distribution Account.

       

      (c)  Except
        as
        otherwise expressly provided in this Agreement, if any default occurs in
        the
        making of a payment due under any Permitted Investment, or if a default occurs
        in any other performance required under any Permitted Investment, the Trustee
        may and, subject to Section 9.01 and Section 9.02(a)(v) of this
        Agreement, shall, at the written direction of the related Servicer, take
        such
        action as may be appropriate to enforce such payment or performance, including
        the institution and prosecution of appropriate proceedings.

       

      (d)  The
        Trustee, the Master Servicer or their respective Affiliates are permitted
        to
        receive additional compensation that could be deemed to be in the Trustee’s or
        the Master Servicer’s economic self-interest for (i) serving as investment
        adviser, administrator, shareholder servicing agent, custodian or sub-custodian
        with respect to certain of the Permitted Investments, (ii) using Affiliates
        to
        effect transactions in certain Permitted Investments and (iii) effecting
        transactions in certain Permitted Investments. Such compensation shall not
        be
        considered an amount that is reimbursable or payable to the Trustee or the
        Master Servicer pursuant to Section 3.09 or Section 3.10 of this
        Agreement or otherwise payable in respect of Extraordinary Trust Fund Expenses.
        Such additional compensation shall not be an expense of the Trust
        Fund.

       

      SECTION
        3.11  Maintenance
        of Hazard Insurance, Errors and Omissions and Fidelity Coverage and Primary
        Mortgage Insurance.

       

      (a)  The
        terms
        of each Mortgage Note require the related Mortgagor to maintain fire, flood
        and
        hazard insurance policies. To the extent such policies are not maintained,
        the
        related Servicer shall cause to be maintained for each Mortgaged Property
        related to a Mortgage Loan serviced by such Servicer fire and hazard insurance
        with extended coverage as is customary in the area where the Mortgaged Property
        is located in an amount which is at least equal to the lesser of the current
        principal balance of such Mortgage Loan and the amount necessary to compensate
        fully for any damage or loss to the improvements which are a part of such
        property on a replacement cost basis, in each case in an amount not less
        than
        such amount as is necessary to avoid the application of any coinsurance clause
        contained in the related hazard insurance policy. Each Servicer shall also
        cause
        to be maintained fire and hazard insurance on each REO Property with extended
        coverage as is customary in the area where the Mortgaged Property is located
        in
        an amount which is at least equal to the lesser of (i) the maximum insurable
        value of the improvements which are a part of such property and (ii) the
        outstanding principal balance of the related Mortgage Loan at the time it
        became
        an REO Property. Each Servicer will comply in the performance of this Agreement
        with all reasonable rules and requirements of each insurer under any such
        hazard
        policies. Any amounts to be collected by the related Servicer under any such
        policies (other than amounts to be applied to the restoration or repair of
        the
        property subject to the related Mortgage or amounts to be released to the
        Mortgagor in accordance with Accepted Servicing Practices, subject to the
        terms
        and conditions of the related Mortgage and Mortgage Note) shall be deposited
        in
        the related Collection Account, subject to withdrawal pursuant to
        Section 3.09 of this Agreement, if received in respect of a Mortgage Loan,
        or in the REO Account, subject to withdrawal pursuant to Section 3.21 of
        this Agreement, if received in respect of an REO Property. Any cost incurred
        by
        a Servicer in maintaining any such insurance shall not, for the purpose of
        calculating distributions to Certificateholders, be added to the unpaid
        principal balance of the related Mortgage Loan, notwithstanding that the
        terms
        of such Mortgage Loan so permit. It is understood and agreed that no earthquake
        or other additional insurance is to be required of any Mortgagor other than
        pursuant to such applicable laws and regulations as shall at any time be
        in
        force and as shall require such additional insurance. If the Mortgaged Property
        or REO Property is at any time in an area identified in the Federal Register
        by
        the Federal Emergency Management Agency as having special flood hazards,
        the
        related Servicer will cause to be maintained a flood insurance policy in
        respect
        thereof. Such flood insurance shall be in an amount equal to the lesser of
        (i)
        the unpaid principal balance of the related Mortgage Loan and (ii) the maximum
        amount of such insurance available for the related Mortgaged Property under
        the
        national flood insurance program (assuming that the area in which such Mortgaged
        Property is located is participating in such program).

       

      In
        the
        event that a Servicer shall obtain and maintain a blanket policy with an
        insurer
        having a General Policy Rating of B:VI or better in Best’s Key Rating Guide or
        otherwise acceptable to Fannie Mae or Freddie Mac insuring against hazard
        losses
        on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied
        its obligations to cause fire and hazard insurance to be maintained on the
        Mortgaged Properties, it being understood and agreed that such policy may
        contain a deductible clause, in which case the related Servicer shall, in
        the
        event that there shall not have been maintained on the related Mortgaged
        Property or REO Property a policy complying with the first two sentences
        of this
        Section 3.11, and there shall have been one or more losses which would have
        been covered by such policy, deposit to the related Collection Account from
        its
        own funds the amount not otherwise payable under the blanket policy because
        of
        such deductible clause. In connection with its activities as administrator
        and
        servicer of the Mortgage Loans, the related Servicer agrees to prepare and
        present, on behalf of itself, the Trustee, the Trust Fund and the
        Certificateholders, claims under any such blanket policy in a timely fashion
        in
        accordance with the terms of such policy.

       

      (b)  Each
        Servicer shall keep in force during the term of this Agreement a policy or
        policies of insurance covering errors and omissions for failure in the
        performance of its respective obligations under this Agreement, which policy
        or
        policies shall be in such form and amount that would meet the requirements
        of
        Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans,
        unless
        the related Servicer has obtained a waiver of such requirements from Fannie
        Mae
        or Freddie Mac. Each Servicer shall also maintain a fidelity bond in the
        form
        and amount that would meet the requirements of Fannie Mae or Freddie Mac,
        unless
        the related Servicer has obtained a waiver of such requirements from Fannie
        Mae
        or Freddie Mac. A Servicer shall be deemed to have complied with this provision
        if an Affiliate of such Servicer, has such errors and omissions and fidelity
        bond coverage and, by the terms of such insurance policy or fidelity bond,
        the
        coverage afforded thereunder extends to such Servicer. Any such errors and
        omissions policy and fidelity bond shall by its terms not be cancelable without
        thirty days’ prior written notice to the Trustee.

       

      (c)  The
        Servicers shall not take any action that would result in noncoverage under
        any
        applicable primary mortgage insurance policy of any loss which, but for the
        actions of the related Servicer would have been covered thereunder. Each
        Servicer shall use its best efforts to keep in force and effect any applicable
        primary mortgage insurance policy and, to the extent that the related Mortgage
        Loan requires the Mortgagor to maintain such insurance, any other primary
        mortgage insurance applicable to any Mortgage Loan. Except as required by
        applicable law or the related Mortgage Loan Documents, the Servicers shall
        not
        cancel or refuse to renew any such primary mortgage insurance policy that
        is in
        effect at the date of the initial issuance of the related Mortgage Note and
        is
        required to be kept in force hereunder.

       

      Each
        Servicer agrees to present on behalf of the Trustee and the Certificateholders
        claims to the applicable insurer under any primary mortgage insurance policies
        and, in this regard, to take such reasonable action as shall be necessary
        to
        permit recovery under any primary mortgage insurance policies respecting
        defaulted Mortgage Loans. Pursuant to Section 3.08 of this Agreement, any
        amounts collected by a Servicer under any primary mortgage insurance policies
        shall be deposited in the related Collection Account, subject to withdrawal
        pursuant to Section 3.09 of this Agreement. Notwithstanding any provision
        to the contrary, a Servicer shall not have any responsibility with respect
        to a
        primary mortgage insurance policy unless such Servicer has been made aware
        of
        such policy, as reflected on the Mortgage Loan Schedule or otherwise and
        have
        been provided with adequate information to administer such policy.

       

      (d)  A
        Servicer need not obtain the approval of the Master Servicer prior to releasing
        any Insurance Proceeds to the Mortgagor to be applied to the restoration
        or
        repair of the Mortgaged Property if such release is in accordance with Accepted
        Servicing Practices. At a minimum, each Servicer shall comply with the following
        conditions in connection with any such release of Insurance Proceeds in excess
        of $10,000:

       

      (i)  such
        Servicer shall receive satisfactory independent verification of completion
        of
        repairs and issuance of any required approvals with respect
        thereto;

       

      (ii)  such
        Servicer shall take all steps necessary to preserve the priority of the lien
        of
        the Mortgage, including, but not limited to requiring waivers with respect
        to
        mechanics’ and materialmen’s liens; and

       

      (iii)  pending
        repairs or restoration, such Servicer shall place the Insurance Proceeds
        in the
        related Escrow Account, if any.

       

      SECTION
        3.12  Enforcement
        of Due-on-Sale Clauses; Assumption Agreements.

       

      Each
        Servicer shall, to the extent it has knowledge of any conveyance of any
        Mortgaged Property by any related Mortgagor (whether by absolute conveyance
        or
        by contract of sale, and whether or not the Mortgagor remains or is to remain
        liable under the Mortgage Note and/or the Mortgage), exercise its rights
        to
        accelerate the maturity of such Mortgage Loan under the “due-on-sale” clause, if
        any, applicable thereto; provided, however, that the related Servicer shall
        not
        exercise any such rights if prohibited by law from doing so. If a Servicer
        reasonably believes that it is unable under applicable law to enforce such
        “due-on-sale” clause, or if any of the other conditions set forth in the proviso
        to the preceding sentence apply, the related Servicer shall make reasonable
        efforts to enter into an assumption and modification agreement from or with
        the
        person to whom such property has been conveyed or is proposed to be conveyed,
        pursuant to which such person becomes liable under the Mortgage Note and,
        to the
        extent permitted by applicable state law, the Mortgagor remains liable thereon.
        The related Servicer is also authorized to enter into a substitution of
        liability agreement with such person, pursuant to which the original Mortgagor
        is released from liability and such person is substituted as the Mortgagor
        and
        becomes liable under the Mortgage Note, provided that no such substitution
        shall
        be effective unless such person satisfies the then current underwriting criteria
        of the related Servicer for mortgage loans similar to the Mortgage Loans.
        In
        connection with any assumption or substitution, the related Servicer shall
        apply
        such underwriting standards and follow such practices and procedures as shall
        be
        normal and usual in its general mortgage servicing activities and as it applies
        to other mortgage loans owned solely by it. The related Servicer shall not
        take
        or enter into any assumption and modification agreement, however, unless
        (to the
        extent practicable in the circumstances) it shall have received confirmation,
        in
        writing, of the continued effectiveness of any applicable hazard insurance
        policy. Any fee collected by the related Servicer in respect of an assumption
        or
        substitution of liability agreement will be retained by such Servicer as
        additional servicing compensation. In connection with any such assumption,
        no
        material term of the Mortgage Note (including but not limited to the related
        Mortgage Rate and the amount of the Monthly Payment) may be amended or modified,
        except as otherwise required pursuant to the terms thereof. The related Servicer
        shall notify the Trustee (or the applicable Custodian) that any such
        substitution or assumption agreement has been completed by forwarding to
        the
        Trustee (or the applicable Custodian) the executed original of such substitution
        or assumption agreement, which document shall be added to the related Mortgage
        File and shall, for all purposes, be considered a part of such Mortgage File
        to
        the same extent as all other documents and instruments constituting a part
        thereof.

       

      Notwithstanding
        the foregoing paragraph or any other provision of this Agreement, the related
        Servicer shall not be deemed to be in default, breach or any other violation
        of
        its obligations hereunder by reason of any assumption of a Mortgage Loan
        by
        operation of law or by the terms of the Mortgage Note or any assumption which
        the related Servicer may be restricted by law from preventing, for any reason
        whatever. For purposes of this Section 3.12, the term “assumption” is
        deemed to also include a sale (of the Mortgaged Property) subject to the
        Mortgage that is not accompanied by an assumption or substitution of liability
        agreement.

       

      SECTION
        3.13  Realization
        Upon Defaulted Mortgage Loans.

       

      (a)  Each
        Servicer shall use its best efforts, consistent with Accepted Servicing
        Practices, to foreclose upon or otherwise comparably convert the ownership
        of
        properties securing such of the Mortgage Loans as come into and continue
        in
        default and as to which no satisfactory arrangements can be made for collection
        of delinquent payments pursuant to Section 3.06 of this Agreement. Each
        Servicer shall be responsible for all costs and expenses incurred by it in
        any
        such proceedings; provided, however, that such costs and expenses will be
        recoverable as Servicing Advances by the related Servicer as contemplated
        in
        Section 3.09 and Section 3.21 of this Agreement. The foregoing is
        subject to the provision that, in any case in which a Mortgaged Property
        shall
        have suffered damage from an Uninsured Cause, the related Servicer shall
        not be
        required to expend its own funds toward the restoration of such property
        unless
        it shall determine in its discretion that such restoration will increase
        the
        proceeds of liquidation of the related Mortgage Loan after reimbursement
        to
        itself for such expenses.

       

      (b)  Notwithstanding
        the foregoing provisions of this Section 3.13 or any other provision of
        this Agreement, with respect to any Mortgage Loan as to which a Servicer
        has
        received actual notice of, or has actual knowledge of, the presence of any
        toxic
        or hazardous substance on the related Mortgaged Property, such Servicer shall
        not, on behalf of the Trust Fund, either (i) obtain title to such Mortgaged
        Property as a result of or in lieu of foreclosure or otherwise, or (ii)
        otherwise acquire possession of, or take any other action with respect to,
        such
        Mortgaged Property, if, as a result of any such action, the Trust Fund, the
        Trustee or the Certificateholders would be considered to hold title to, to
        be a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
        Mortgaged Property within the meaning of the Comprehensive Environmental
        Response, Compensation and Liability Act of 1980, as amended from time to
        time,
        or any comparable law, unless such Servicer has also previously determined,
        based on its reasonable judgment and a prudent report prepared by an Independent
        Person who regularly conducts environmental audits using customary industry
        standards, that:

       

      (1) such
        Mortgaged Property is in compliance with applicable environmental laws or,
        if
        not, that it would be in the best economic interest of the Trust Fund to
        take
        such actions as are necessary to bring the Mortgaged Property into compliance
        therewith; and

       

      (2) there
        are
        no circumstances present at such Mortgaged Property relating to the use,
        management or disposal of any hazardous substances, hazardous materials,
        hazardous wastes or petroleum-based materials for which investigation, testing,
        monitoring, containment, clean-up or remediation could be required under
        any
        federal, state or local law or regulation, or that if any such materials
        are
        present for which such action could be required, that it would be in the
        best
        economic interest of the Trust Fund to take such actions with respect to
        the
        affected Mortgaged Property.

       

      The
        cost
        of the environmental audit report contemplated by this Section 3.13 shall
        be advanced by the related Servicer, subject to such Servicer’s right to be
        reimbursed therefor from the related Collection Account as provided in
        Section 3.09(a)(ix) of this Agreement, such right of reimbursement being
        prior to the rights of Certificateholders to receive any amount in the related
        Collection Account received in respect of the affected Mortgage Loan or other
        Mortgage Loans.

       

      If
        the
        related Servicer determines, as described above, that it is in the best economic
        interest of the Trust Fund to take such actions as are necessary to bring
        any
        such Mortgaged Property into compliance with applicable environmental laws,
        or
        to take such action with respect to the containment, clean-up or remediation
        of
        hazardous substances, hazardous materials, hazardous wastes, or petroleum-based
        materials affecting any such Mortgaged Property, then such Servicer shall
        take
        such action as it deems to be in the best economic interest of the Trust
        Fund.
        The cost of any such compliance, containment, cleanup or remediation shall
        be
        advanced by the related Servicer, subject to such Servicer’s right to be
        reimbursed therefor from the Collection Account as provided in
        Section 3.09(a)(iii) or Section 3.09(a)(ix) of this Agreement, such
        right of reimbursement being prior to the rights of Certificateholders to
        receive any amount in the related Collection Account received in respect
        of the
        affected Mortgage Loan or other Mortgage Loans.

       

      (c)  The
        Class
        CE-1 Certificateholder shall have the right to purchase from REMIC I any
        Mortgage Loan which was not delinquent as of the Closing Date but which becomes
        delinquent in payment by 90 days or more and, in the event that the Class
        CE-1
        Certificateholder fails to exercise such option, Ocwen shall have the right
        to
        purchase from REMIC I any such Mortgage Loan, which Ocwen determines in good
        faith will otherwise become subject to foreclosure proceedings (evidence
        of such
        determination to be delivered in writing to the Trustee, in form and substance
        satisfactory to Ocwen and the Trustee prior to purchase). The Purchase Price
        for
        any Mortgage Loan purchased pursuant to this clause (c) shall be (i) remitted
        to
        the Securities Administrator for deposit into the Distribution Account with
        respect to a purchase by the Class CE-1 Certificateholder or (ii) deposited
        in
        the related Collection Account with respect to a purchase by Ocwen, and the
        Trustee, upon receipt of written certification from the Securities Administrator
        or Ocwen, as applicable, of such deposit, shall release or cause to be released
        to the Class CE-1 Certificateholder or Ocwen, as applicable, the related
        Mortgage File and the Trustee shall execute and deliver such instruments
        of
        transfer or assignment, in each case without recourse, representation or
        warranty, as the Class CE-1 Certificateholder or Ocwen, as applicable, shall
        furnish and as shall be necessary to vest in the Class CE-1 Certificateholder
        or
        Ocwen, as applicable, title to any Mortgage Loan released pursuant
        hereto.

       

      (d)  Proceeds
        received in connection with any Final Recovery Determination, as well as
        any
        recovery resulting from a partial collection of Insurance Proceeds or
        Liquidation Proceeds, in respect of any Mortgage Loan, will be applied in
        the
        following order of priority: first, to reimburse the related Servicer for
        any
        related unreimbursed Servicing Advances and P&I Advances, pursuant to
        Section 3.09(a)(ii) or Section 3.09(a)(iii) of this Agreement; second,
        to accrued and unpaid interest on the Mortgage Loan, to the date of the Final
        Recovery Determination, or to the Due Date prior to the Distribution Date
        on
        which such amounts are to be distributed if not in connection with a Final
        Recovery Determination; and third, as a recovery of principal of the Mortgage
        Loan. If the amount of the recovery so allocated to interest is less than
        the
        full amount of accrued and unpaid interest due on such Mortgage Loan, the
        amount
        of such recovery will be allocated by the related Servicer as follows: first,
        to
        unpaid Servicing Fees; and second, to the balance of the interest then due
        and
        owing. The portion of the recovery so allocated to unpaid Servicing Fees
        shall
        be reimbursed to the related Servicer pursuant to Section 3.09(a)(iii) of
        this Agreement. The portion of the recovery allocated to interest (net of
        unpaid
        Servicing Fees) and the portion of the recovery allocated to principal of
        the
        Mortgage Loan shall be applied as follows: first, to reimburse the related
        Servicer for any related unreimbursed P&I Advances or Servicing Advances in
        accordance with Section 3.09(a)(ii) and Section 3.09(a)(iii) of this
        Agreement and any other amounts reimbursable to such Servicer pursuant to
        Section 3.09 of this Agreement, and second, as part of the amounts to be
        transferred to the Distribution Account in accordance with Section 3.08(c)
        of this Agreement.

       

      (e)  Notwithstanding
        the foregoing provisions of this Section 3.13 or any other provision of
        this Agreement, no Servicer shall acquire title to a Mortgaged Property related
        to a Foreclosure Restricted Mortgage Loan if acquiring title to such Mortgaged
        Property would cause the adjusted basis (for federal income tax purposes)
        of the
        Mortgaged Properties in respect of Foreclosure Restricted Mortgage Loans
        that
        are currently owned by REMIC I after foreclosure (along with any other assets
        owned by REMIC I other than “qualified mortgages” and “permitted investments”
within the meaning of Section 860G of the Internal Revenue Code) to exceed
        0.75% of the adjusted basis of the assets in REMIC I. Instead, such Servicer
        shall dispose of the Foreclosure Restricted Mortgage Loan for cash in a
        foreclosure sale. In addition, if such Servicer determines that, following
        a
        distribution on any Distribution Date, the adjusted basis of the REO Properties
        relating to such Foreclosure Restricted Mortgage Loans (along with any other
        assets owned by REMIC I other than “qualified mortgages” and “permitted
        investments” within the meaning of Section 860G of the Internal Revenue
        Code) exceeds 1.0% of the adjusted basis of the assets of REMIC I immediately
        after the Distribution Date, then prior to the next Distribution Date, such
        Servicer shall dispose of enough of such REO Properties for cash, so that
        the
        adjusted basis of such REO Properties relating to Foreclosure Restricted
        Mortgage Loans (along with any other assets owned by REMIC I other than
“qualified mortgages” and “permitted investments” within the meaning of
        Section 860G of the Internal Revenue Code) will be less than 1.0% of the
        adjusted basis of the assets of REMIC I. In either event, such Servicer is
        permitted to acquire (for its own account and not on behalf of the Trust
        Fund)
        the REO Property at the foreclosure sale for an amount not less than the
        greater
        of: (i) the highest amount bid by any other person at the foreclosure sale,
        or
        (ii) the estimated fair market value of the REO Property, as determined by
        such
        Servicer in good faith. These restrictions will be lifted with respect to
        a
        Foreclosure Restricted Mortgage Loan if such Mortgage Loan becomes current
        for
        three consecutive Monthly Payments.

       

      The
        Servicers and the Master Servicer agree to cooperate in providing each Servicer
        with the information regarding the Foreclosure Restricted Mortgage Loans
        serviced by the other Servicer in order to comply with this Section
        3.13(e).

       

      SECTION
        3.14  Trustee
        to Cooperate; Release of Mortgage Files.

       

      (a)  Upon
        becoming aware of the payment in full of any Mortgage Loan, or the receipt
        by a
        Servicer of a notification that payment in full has been escrowed in a manner
        customary for such purposes for payment to Certificateholders on the next
        Distribution Date, the related Servicer will promptly furnish to the applicable
        Custodian, on behalf of the Trustee, two copies of a request for release
        substantially in the form attached to the related Custodial Agreement signed
        by
        a Servicing Officer or in a mutually agreeable electronic format which will,
        in
        lieu of a signature on its face, originate from a Servicing Officer (which
        certification shall include a statement to the effect that all amounts received
        in connection with such payment that are required to be deposited in the
        related
        Collection Account have been or will be so deposited) and shall request that
        such Custodian, on behalf of the Trustee, deliver to the related Servicer
        the
        related Mortgage File. Upon receipt of such certification and request, the
        applicable Custodian, on behalf of the Trustee, shall within five (5) Business
        Days release the related Mortgage File to the related Servicer and the Trustee
        and the applicable Custodian shall have no further responsibility with regard
        to
        such Mortgage File. Upon any such payment in full, the related Servicer is
        authorized, to give, as agent for the Trustee, as the mortgagee under the
        Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or
        assignment of mortgage without recourse) regarding the Mortgaged Property
        subject to the Mortgage, which instrument of satisfaction or assignment,
        as the
        case may be, shall be delivered to the Person or Persons entitled thereto
        against receipt therefor of such payment, it being understood and agreed
        that no
        expenses incurred in connection with such instrument of satisfaction or
        assignment, as the case may be, shall be chargeable to the related Collection
        Account.

       

      (b)  From
        time
        to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan, the Trustee shall execute such documents as shall be prepared and
        furnished to the Trustee by the related Servicer (in form reasonably acceptable
        to the Trustee) and as are necessary to the prosecution of any such proceedings.
        The applicable Custodian, on behalf of the Trustee, shall, upon the request
        of
        the related Servicer, and delivery to the applicable Custodian of two copies
        of
        a request for release signed by a Servicing Officer substantially in the
        form
        attached to the related Custodial Agreement (or in a mutually agreeable
        electronic format which will, in lieu of a signature on its face, originate
        from
        a Servicing Officer), release within five (5) Business Days the related Mortgage
        File held in its possession or control to the related Servicer. Such trust
        receipt shall obligate the related Servicer to return the Mortgage File to
        the
        applicable Custodian on behalf of the Trustee, when the need therefor by
        such
        Servicer no longer exists unless the Mortgage Loan shall be liquidated, in
        which
        case, upon receipt of a certificate of a Servicing Officer similar to that
        hereinabove specified, the Mortgage File shall be released by the applicable
        Custodian, on behalf of the Trustee, to the related Servicer.

       

      Notwithstanding
        the foregoing, in connection with a Principal Prepayment in full of any Mortgage
        Loan, the Master Servicer may request release of the related Mortgage File
        from
        the applicable Custodian, in accordance with the provisions of the related
        Custodial Agreement, in the event the related Servicer fails to do
        so.

       

      Upon
        written certification of a Servicing Officer, the Trustee shall execute and
        deliver to the related Servicer, any court pleadings, requests for trustee’s
        sale or other documents prepared and delivered to the Trustee and reasonably
        acceptable to it and necessary to the foreclosure or trustee’s sale in respect
        of a Mortgaged Property or to any legal action brought to obtain judgment
        against any Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency
        judgment, or to enforce any other remedies or rights provided by the Mortgage
        Note or Mortgage or otherwise available at law or in equity. Each such
        certification shall include a request that such pleadings or documents be
        executed by the Trustee and a statement as to the reason such documents or
        pleadings are required and that the execution and delivery thereof by the
        Trustee will not invalidate or otherwise affect the lien of the Mortgage,
        except
        for the termination of such a lien upon completion of the foreclosure or
        trustee’s sale. So long as no Servicer Event of Default shall have occurred and
        be continuing, the related Servicer shall have the right to execute any and
        all
        such court pleadings, requests and other documents as attorney-in-fact for,
        and
        on behalf of the Trustee. Notwithstanding the preceding sentence, the Trustee
        shall in no way be liable or responsible for the willful malfeasance of the
        Servicer, or for any wrongful or negligent actions taken by the Servicer,
        while
        the Servicer is acting in its capacity as attorney-in-fact for and on behalf
        of
        the Trustee.

       

      SECTION
        3.15  Servicing
        Compensation.

       

      As
        compensation for its activities hereunder, Wells Fargo shall be entitled
        to the
        Servicing Fee calculated at the Servicing Fee Rate and Ocwen shall be entitled
        to a Servicing Fee calculated at the Ocwen Servicing Fee Rate with respect
        to
        each Mortgage Loan serviced by such Servicer payable solely from payments
        of
        interest in respect of such Mortgage Loan, subject to Section 3.22 of this
        Agreement. In addition, the related Servicer shall be entitled to recover
        unpaid
        Servicing Fees out of Insurance Proceeds or Liquidation Proceeds to the extent
        permitted by Section 3.09(a)(iii) of this Agreement and out of amounts
        derived from the operation and sale of an REO Property to the extent permitted
        by Section 3.21 of this Agreement. Subject to Section 3.25 of this
        Agreement, the right to receive the Servicing Fee may not be transferred
        in
        whole or in part except in connection with the transfer of all of the related
        Servicer’s responsibilities and obligations under this Agreement to the extent
        permitted herein.

       

      Additional
        servicing compensation in the form of assumption fees, late payment charges,
        customary real estate referral fees and other miscellaneous fees (other than
        Prepayment Charges), and ancillary income shall be retained by the related
        Servicer only to the extent such fees or charges are received by such Servicer.
        Each Servicer shall also be entitled pursuant to Section 3.09(a)(iv) of
        this Agreement to withdraw from the related Collection Account and pursuant
        to
        Section 3.21(b) of this Agreement to withdraw from any REO Account, as
        additional servicing compensation, interest or other income earned on deposits
        therein, subject to Section 3.10 of this Agreement. In addition, each
        Servicer shall be entitled to retain or withdraw from the related Collection
        Account, pursuant to Section 3.09(a)(x) of this Agreement, any Prepayment
        Interest Excess with respect to the Mortgage Loans serviced by it as additional
        servicing compensation. Each Servicer shall be required to pay all expenses
        incurred by it in connection with its servicing activities hereunder and
        shall
        not be entitled to reimbursement therefor except as specifically provided
        herein.

       

      SECTION
        3.16  Collection
        Account Statements.

       

      Upon
        request, not later than fifteen days after each Distribution Date,
        each
        Servicer shall forward to the Master Servicer and with respect to Ocwen,
        to the
        Securities Administrator, the Trustee and the Depositor a statement prepared
        by
        the institution at which the related Collection Account is maintained setting
        forth the status of the related Collection Account as of the close of business
        on such Distribution Date and showing, for the period covered by such statement,
        the aggregate amount of deposits into and withdrawals from the related
        Collection Account of each category of deposit specified in Section 3.08(a)
        of this Agreement and each category of withdrawal specified in Section 3.09
        of this Agreement. The Master Servicer shall forward the statement provided
        by
        Wells Fargo pursuant to the preceding sentence to the Securities Administrator,
        the Trustee and the Depositor, upon request, within a reasonable time after
        its
        receipt of such statement from Wells Fargo. Copies of such statement and
        any
        similar statements provided by the Servicers shall be provided by the Securities
        Administrator to any Certificateholder and to any Person identified to the
        Securities Administrator as a prospective transferee of a Certificate, upon
        request at the expense of the requesting party, provided such statement is
        delivered by the related Servicer to the Securities Administrator.

       

      SECTION
        3.17  Annual
        Statement as to Compliance.

       

      (a)  Each
        Servicer shall deliver (and shall cause any Additional Servicer engaged by
        it to
        deliver) to the Master Servicer and the Depositor on or before March 15 of
        each
        year, commencing in March 2007, an Officer’s Certificate stating, as to the
        signer thereof, that (A) a review of such party’s activities during the
        preceding calendar year or portion thereof and of such Servicer’s performance
        under this Agreement, or such other applicable agreement in the case of an
        Additional Servicer, has been made under such officer’s supervision and (B) to
        the best of such officer’s knowledge, based on such review, such party has
        fulfilled all its obligations under this Agreement, or such other applicable
        agreement in the case of an Additional Servicer, in all material respects
        throughout such year or portion thereof, or, if there has been a failure
        to
        fulfill any such obligation in any material respect, specifying each such
        failure known to such officer and the nature and status thereof. Promptly
        after
        receipt of each such Officer’s Certificate from a Servicer or any Additional
        Servicer engaged by a Servicer, the Depositor shall review such Officer’s
        Certificate and, if applicable, consult with each such party, as applicable,
        as
        to the nature of any failures by such party, in the fulfillment of any of
        such
        Servicer’s obligations hereunder or, in the case of an Additional Servicer,
        under such other applicable agreement.

       

      (b)  Failure
        of a Servicer to comply timely with this Section 3.17 shall be deemed a Servicer
        Event of Default as to such Servicer, automatically, without notice and without
        any cure period, and the Master Servicer may, in addition to whatever rights
        the
        Master Servicer may have under this Agreement and at law or in equity or
        to
        damages, including injunctive relief and specific performance, terminate
        all the
        rights and obligations of such Servicer under this Agreement and in and to
        the
        Mortgage Loans and the proceeds thereof without compensating such Servicer
        for
        the same (other than the Servicer’s right to reimbursement of unreimbursed
        P&I Advances and Servicing Advances and accrued and unpaid Servicing Fees in
        the manner provided in this Agreement). This paragraph shall supersede any
        other
        provision in this Agreement or any other agreement to the contrary.

       

      SECTION
        3.18  Assessments
        of Compliance and Attestation Reports.

       

      (a)  By
        March
        15 of each year, commencing in March 2007, each Servicer, at its own expense,
        shall furnish, and shall cause any Servicing Function Participant engaged
        by it
        to furnish, each at its own expense, to the Master Servicer, a report on
        an
        assessment of compliance with the Relevant Servicing Criteria that contains
        (A)
        a statement by such party of its responsibility for assessing compliance
        with
        the Relevant Servicing Criteria, (B) a statement that such party used the
        Relevant Servicing Criteria to assess compliance with the Relevant Servicing
        Criteria, (C) such party’s assessment of compliance with the Relevant Servicing
        Criteria as of and for the fiscal year covered by the Form 10-K required
        to be
        filed pursuant to Section 5.06(d), including, if there has been any material
        instance of noncompliance with the Relevant Servicing Criteria, a discussion
        of
        each such failure and the nature and status thereof, and (D) a statement
        that a
        registered public accounting firm has issued an attestation report on such
        party’s assessment of compliance with the Relevant Servicing Criteria as of and
        for such period. Notwithstanding the foregoing, neither Servicer nor any
        Servicing Function Participant engaged by a Servicer shall be required to
        deliver any assessments until March 31st
        in any
        given year so long as it has not received written confirmation from the
        Depositor that a Form 10-K is required to be filed in respect of the Trust
        for
        the preceding calendar year, however, notwithstanding anything herein to
        the
        contrary, no Subcontractor will be required to deliver any assessments in
        any
        such given year in which the Form 10-K is not required to be filed.

       

      (b)  By
        March
        15 of each year, commencing in March 2007, each Servicer, at its own expense,
        shall cause, and each Servicer shall cause any Servicing Function Participant
        engaged by it to cause, each at its own expense, a registered public accounting
        firm (which may also render other services to such Servicer or such other
        Servicing Function Participants, as the case may be) and that is a member
        of the
        American Institute of Certified Public Accountants to furnish a report to
        the
        Master Servicer, to the effect that (i) it has obtained a representation
        regarding certain matters from the management of such party, which includes
        an
        assertion that such party has complied with the Relevant Servicing Criteria,
        and
        (ii) on the basis of an examination conducted by such firm in accordance
        with
        standards for attestation engagements issued or adopted by the PCAOB, it
        is
        expressing an opinion as to whether such party’s compliance with the Relevant
        Servicing Criteria was fairly stated in all material respects, or it cannot
        express an overall opinion regarding such party’s assessment of compliance with
        the Relevant Servicing Criteria. In the event that an overall opinion cannot
        be
        expressed, such registered public accounting firm shall state in such report
        why
        it was unable to express such an opinion. Such report must be available for
        general use and not contain restricted use language. Notwithstanding the
        foregoing, neither Servicer nor any Servicing Function Participant engaged
        by a
        Servicer shall be required to deliver or cause the delivery of such reports
        until March 31st
        in any
        given year so long as such Servicer has not received written confirmation
        from
        the Depositor that a Form 10-K is required to be filed in respect of the
        Trust
        for the preceding fiscal year, however, notwithstanding anything herein to
        the
        contrary, no Subcontractor will be required to deliver any report in any
        such
        given year in which the Form 10-K is not required to be filed..

       

      (c)  Failure
        of a Servicer to comply timely with this Section 3.18 shall be deemed a Servicer
        Event of Default as to such Servicer, automatically, without notice and without
        any cure period, and the Master Servicer may, in addition to whatever rights
        the
        Master Servicer may have under this Agreement and at law or in equity or
        to
        damages, including injunctive relief and specific performance, terminate
        all the
        rights and obligations of such Servicer under this Agreement and in and to
        the
        Mortgage Loans and the proceeds thereof without compensating such Servicer
        for
        the same (other than the Servicer’s right to reimbursement of unreimbursed
        P&I Advances and Servicing Advances and accrued and unpaid Servicing Fees in
        the manner provided for in this Agreement). This paragraph shall supersede
        any
        other provision in this Agreement or any other agreement to the
        contrary.

       

      SECTION
        3.19  Annual
        Certification; Additional Information.

       

      (a)  Each
        Servicer shall and shall cause any Servicing Function Participant engaged
        by it
        to, provide to the Person who signs the Sarbanes-Oxley Certification (the
        “Certifying Person”), by March 15 of each year in which the Trust is subject to
        the reporting requirements of the Exchange Act a certification (each, a “Back-Up
        Certification”), in the form attached hereto as Exhibit C, upon which the
        Certifying Person, the entity for which the Certifying Person acts as an
        officer, and such entity’s officers, directors and Affiliates (collectively with
        the Certifying Person, “Certification Parties”) can reasonably rely. The officer
        of the Master Servicer in charge of the master servicing function shall serve
        as
        the Certifying Person on behalf of the Trust. In the event a Servicer or
        any
        Servicing Function Participant engaged by it is terminated or resigns pursuant
        to the terms of this Agreement, or any applicable Sub-Servicing agreement,
        as
        the case may be, such party shall provide a Back-Up Certification to the
        Certifying Person pursuant to this Section 3.19 with respect to the period
        of
        time it was subject to this Agreement or any applicable Sub-Servicing Agreement,
        as the case may be.

       

      (b)  Each
        Servicer shall indemnify and hold harmless the Master Servicer, the Securities
        Administrator, the Trustee, the Depositor and their respective officers,
        directors, agents and affiliates from and against any losses, damages,
        penalties, fines, forfeitures, reasonable legal fees and related costs,
        judgments and other costs and expenses arising out of or based upon a breach
        by
        such Servicer or any of its officers, directors, agents or affiliates of
        its
        obligations under this Section 3.19 or such Servicer’s negligence, bad
        faith or willful misconduct in connection therewith. Such indemnity shall
        survive the termination or resignation of the parties hereto or the termination
        of this Agreement. If the indemnification provided for herein is unavailable
        or
        insufficient to hold harmless the Master Servicer, the Securities Administrator,
        the Trustee and the Depositor, then the related Servicer agrees that it shall
        contribute to the amount paid or payable by the Master Servicer, the Securities
        Administrator, the Trustee and the Depositor as a result of the losses, claims,
        damages or liabilities of the Master Servicer, the Securities Administrator,
        the
        Trustee and the Depositor in such proportion as is appropriate to reflect
        the
        relative fault of the Master Servicer, the Securities Administrator, the
        Trustee
        and the Depositor on the one hand and the related Servicer on the other in
        connection with a breach of such Servicer’s obligations under this
        Section 3.19.

       

      (c)  Each
        Servicer shall provide to the Master Servicer prompt notice of the occurrence
        of
        any of the following: 

       

      (i)  any
        Servicer Event of Default under the terms of this Agreement, any merger,
        consolidation or sale of substantially all of the assets of such Servicer,
        such
        Servicer’s engagement of any Sub-Servicer to perform or assist in the
        performance of any of such Servicer’s obligations under this Agreement, any
        material litigation involving such Servicer that is material to the
        Certificateholders, and to the extent disclosure is required under Regulation
        AB, any affiliation or other significant relationship between such Servicer
        and
        the Sponsor, the Depositor, the Master Servicer, the Securities Administrator,
        the Trustee, the Custodians, another Servicer, Quick Loan Funding Inc., Fremont
        Investment & Loan, Madison Equity LLC, WMC Mortgage Corp. and Imperial
        Lending LLC.

       

      (ii)  If
        the
        Servicer has knowledge of the occurrence of any of the events described in
        this
        clause (ii), then no later than ten days prior to the deadline for the filing
        of
        any Distribution Report on Form 10-D in respect of the Trust, such Servicer
        shall provide to the Master Servicer notice of the occurrence of any of the
        following events along with all information, data, and materials related
        thereto
        as may be required to be included in the related Distribution Report on Form
        10-D (as specified in the provisions of Regulation AB referenced
        below):

       

      (A) any
        material modifications, extensions or waivers of pool asset terms, fees,
        penalties or payments relating to the Mortgage Loans serviced by the Servicer
        during the distribution period or that have cumulatively become material
        over
        time (Item 1121(a)(11) of Regulation AB);

       

      (B) material
        breaches of pool asset representations or warranties or servicer transaction
        covenants relating to the Mortgage Loans serviced by the Servicer (Item
        1121(a)(12) of Regulation AB); and

       

      (C) any
        material pool asset changes (such as, additions, substitutions or repurchases)
        relating to the Mortgage Loans serviced by the Servicer (Item 1121(a)(14)
        of
        Regulation AB).

       

      (d)  Each
        Servicer shall provide to the Master Servicer and the Securities Administrator
        such additional information as the Master Servicer and the Securities
        Administrator may reasonably request, including evidence of the authorization
        of
        the person signing any certification or statement, financial information
        and
        reports and of the fidelity bond and errors and omissions insurance policy
        required to be maintained by such Servicer pursuant to this Agreement, and
        such
        other information related to such Servicer or its performance
        hereunder.

       

      SECTION
        3.20  Access
        to Certain Documentation.

       

      Each
        Servicer shall provide to the Office of Thrift Supervision, the FDIC, and
        any
        other federal or state banking or insurance regulatory authority that may
        exercise authority over any Certificate Owner, access to the documentation
        regarding the Mortgage Loans required by applicable laws and regulations.
        Such
        access shall be afforded without charge, but only upon reasonable request
        and
        during normal business hours at the offices of the related Servicer designated
        by it. Nothing in this Section 3.20 shall limit the obligation of the
        related Servicer to comply with any applicable law prohibiting disclosure
        of
        information regarding the Mortgagors and the failure of such Servicer to
        provide
        access as provided in this Section as a result of such obligation shall not
        constitute a breach of this Section. Nothing in this Section 3.20 shall
        require any Servicer to collect, create, collate or otherwise generate any
        information that it does not generate in its usual course of business. The
        Servicers shall not be required to make copies of or ship documents to any
        Person unless provisions have been made for the reimbursement of the costs
        thereof.

       

      SECTION
        3.21  Title,
        Management and Disposition of REO Property.

       

      (a)  The
        deed
        or certificate of sale of any REO Property shall be taken in the name of
        the
        Trustee, or its nominee, on behalf of the Trust Fund and for the benefit
        of the
        Certificateholders. The related Servicer, on behalf of REMIC I, shall either
        sell any REO Property by the close of the third calendar year following the
        calendar year in which REMIC I acquires ownership of such REO Property for
        purposes of Section 860G(a)(8) of the Code or request from the Internal
        Revenue Service, no later than sixty (60) days before the day on which the
        three-year grace period would otherwise expire an extension of the three-year
        grace period, unless such Servicer had delivered to the Trustee an Opinion
        of
        Counsel, addressed to the Trustee and the Depositor, to the effect that the
        holding by REMIC I of such REO Property subsequent to three years after its
        acquisition will not result in the imposition on any Trust REMIC created
        hereunder of taxes on “prohibited transactions” thereof, as defined in
        Section 860F of the Code, or cause any Trust REMIC hereunder to fail to
        qualify as a REMIC under Federal law at any time that any Certificates are
        outstanding. Each Servicer shall manage, conserve, protect and operate each
        REO
        Property for the Certificateholders solely for the purpose of its prompt
        disposition and sale in a manner which does not cause such REO Property to
        fail
        to qualify as “foreclosure property” within the meaning of
        Section 860G(a)(8) of the Code or result in the receipt by any Trust REMIC
        created hereunder of any “income from non-permitted assets” within the meaning
        of Section 860F(a)(2)(B) of the Code, or any “net income from foreclosure
        property” which is subject to taxation under the REMIC Provisions.

       

      (b)  Each
        Servicer shall segregate and hold all funds collected and received in connection
        with the operation of any REO Property separate and apart from its own funds
        and
        general assets and shall establish and maintain with respect to REO Properties
        an account held in trust for the Trustee, on behalf of the Trust Fund and
        for
        the benefit of the Certificateholders (the “REO Account”), which shall be an
        Eligible Account. The related Servicer shall be permitted to allow the related
        Collection Account to serve as the REO Account, subject to the maintenance
        of
        separate ledgers for each REO Property. The related Servicer shall be entitled
        to retain or withdraw any interest income paid on funds deposited in the
        REO
        Account.

       

      (c)  Each
        Servicer shall have full power and authority, subject only to the specific
        requirements and prohibitions of this Agreement, to do any and all things
        in
        connection with any REO Property as are consistent with the manner in which
        such
        Servicer manages and operates similar property owned by it or any of its
        Affiliates, all on such terms and for such period as such Servicer deems
        to be
        in the best interests of Certificateholders. In connection therewith, the
        related Servicer shall deposit, or cause to be deposited in the clearing
        account
        in which it customarily deposits payments and collections on mortgage loans
        in
        connection with its mortgage loan servicing activities on a daily basis,
        and in
        no event more than one Business Day after such Servicer’s receipt thereof, and
        shall thereafter deposit in the REO Account, in no event more than two Business
        Days after the deposit of good funds into the clearing account, all revenues
        received by it with respect to an REO Property and shall withdraw therefrom
        funds necessary for the proper operation, management and maintenance of such
        REO
        Property including, without limitation:

       

      (i)  all
        insurance premiums due and payable in respect of such REO Property;

       

      (ii)  all
        real
        estate taxes and assessments in respect of such REO Property that may result
        in
        the imposition of a lien thereon; and

       

      (iii)  all
        costs
        and expenses necessary to maintain such REO Property.

       

      To
        the
        extent that amounts on deposit in the REO Account with respect to an REO
        Property are insufficient for the purposes set forth in clauses (i) through
        (iii) above with respect to such REO Property, the related Servicer shall
        advance from its own funds such amount as is necessary for such purposes
        if, but
        only if, such Servicer would make such advances if such Servicer owned the
        REO
        Property and if in such Servicer’s judgment, the payment of such amounts will be
        recoverable from the rental or sale of the REO Property.

       

      Subject
        to compliance with applicable laws and regulations as shall at any time be
        in
        force, and notwithstanding the foregoing, the related Servicer, on behalf
        of the
        Trust Fund, shall not:

       

      (i)  enter
        into, renew or extend any New Lease with respect to any REO Property, if
        the New
        Lease by its terms will give rise to any income that does not constitute
        Rents
        from Real Property;

       

      (ii)  permit
        any amount to be received or accrued under any New Lease other than amounts
        that
        will constitute Rents from Real Property;

       

      (iii)  authorize
        or permit any construction on any REO Property, other than the completion
        of a
        building or other improvement thereon, and then only if more than ten percent
        of
        the construction of such building or other improvement was completed before
        default on the related Mortgage Loan became imminent, all within the meaning
        of
        Section 856(e)(4)(B) of the Code; or

       

      (iv)  allow
        any
        Person to Directly Operate any REO Property on any date more than ninety
        (90)
        days after its date of acquisition by the Trust Fund;

       

      unless,
        in any such case, the related Servicer has obtained an Opinion of Counsel,
        provided to such Servicer and the Trustee, to the effect that such action
        will
        not cause such REO Property to fail to qualify as “foreclosure property” within
        the meaning of Section 860G(a)(8) of the Code at any time that it is held
        by REMIC I, in which case such Servicer may take such actions as are specified
        in such Opinion of Counsel.

       

      Each
        Servicer may contract with any Independent Contractor for the operation and
        management of any REO Property, provided that:

       

      (i)  the
        terms
        and conditions of any such contract shall not be inconsistent
        herewith;

       

      (ii)  any
        such
        contract shall require, or shall be administered to require, that the
        Independent Contractor pay all costs and expenses incurred in connection
        with
        the operation and management of such REO Property, including those listed
        above
        and remit all related revenues (net of such costs and expenses) to such Servicer
        as soon as practicable, but in no event later than thirty days following
        the
        receipt thereof by such Independent Contractor;

       

      (iii)  none
        of
        the provisions of this Section 3.21(c) relating to any such contract or to
        actions taken through any such Independent Contractor shall be deemed to
        relieve
        the Servicer of any of its duties and obligations to the Trustee on behalf
        of
        the Trust Fund and for the benefit of the Certificateholders with respect
        to the
        operation and management of any such REO Property; and

       

      (iv)  Such
        Servicer shall be obligated with respect thereto to the same extent as if
        it
        alone were performing all duties and obligations in connection with the
        operation and management of such REO Property.

       

      Each
        Servicer shall be entitled to enter into any agreement with any Independent
        Contractor performing services for it related to its duties and obligations
        hereunder for indemnification of such Servicer by such Independent Contractor,
        and nothing in this Agreement shall be deemed to limit or modify such
        indemnification. The related Servicer shall be solely liable for all fees
        owed
        by it to any such Independent Contractor, irrespective of whether such
        Servicer’s compensation pursuant to Section 3.15 of this Agreement is
        sufficient to pay such fees. Any such agreement shall include a provision
        that
        such agreement may be immediately terminated by any successor servicer
        (including the Master Servicer) without fee, in the event the related Servicer
        shall for any reason, no longer be the Servicer of the Mortgage Loans (including
        termination due to a Servicer Event of Default).

       

      (d)  In
        addition to the withdrawals permitted under Section 3.21(c) of this
        Agreement, each Servicer may from time to time make withdrawals from the
        related
        REO Account for any REO Property: (i) to pay itself unpaid Servicing Fees
        in
        respect of the related Mortgage Loan; and (ii) to reimburse itself or any
        Sub-Servicer for unreimbursed Servicing Advances and Advances made in respect
        of
        such REO Property or the related Mortgage Loan. On the Servicer Remittance
        Date,
        the related Servicer shall withdraw from each REO Account maintained by it
        and
        deposit into the Distribution Account in accordance with
        Section 3.08(e)(ii) of this Agreement, for distribution on the related
        Distribution Date in accordance with Section 5.01 of this Agreement, the
        income from the related REO Property received during the prior calendar month,
        net of any withdrawals made pursuant to Section 3.21(c) of this Agreement
        or this Section 3.21(d).

       

      (e)  Subject
        to the time constraints set forth in Section 3.21(a) of this Agreement,
        each REO Disposition shall be carried out by the related Servicer at such
        price
        and upon such terms and conditions as such Servicer shall deem necessary
        or
        advisable, as shall be normal and usual in accordance with Accepted Servicing
        Practices.

       

      (f)  The
        proceeds from the REO Disposition, net of any amount required by law to be
        remitted to the Mortgagor under the related Mortgage Loan and net of any
        payment
        or reimbursement to the related Servicer as provided above, shall be deposited
        in the Distribution Account in accordance with Section 3.08(e)(ii) of this
        Agreement on the Servicer Remittance Date in the month following the receipt
        thereof for distribution on the related Distribution Date in accordance with
        Section 5.01 of this Agreement. Any REO Disposition shall be for cash only
        (unless changes in the REMIC Provisions made subsequent to the Startup Day allow
        a sale for other consideration).

       

      (g)  Each
        Servicer shall file information returns (and shall provide a certification
        of a
        Servicing Officer to the Master Servicer that such filings have been made)
        with
        respect to the receipt of mortgage interest received in a trade or business,
        reports of foreclosures and abandonments of any Mortgaged Property and
        cancellation of indebtedness income with respect to any Mortgaged Property
        as
        required by Sections 6050H, 6050J and 6050P of the Code, respectively. Such
        reports shall be in form and substance sufficient to meet the reporting
        requirements imposed by such Sections 6050H, 6050J and 6050P of the
        Code.

       

      SECTION
        3.22  Obligations
        of Each Servicer in Respect of Prepayment Interest Shortfalls; Relief Act
        Interest Shortfalls.

       

      Each
        Servicer shall deliver to the Securities Administrator for deposit into the
        Distribution Account on the Servicer Remittance Date and with respect to
        Ocwen
        on or before 12:00 noon New York time on the Servicer Remittance Date from
        its
        own funds an amount equal to the lesser of (i) the aggregate amount of the
        Prepayment Interest Shortfalls attributable to Principal Prepayments in full
        on
        the Mortgage Loans for the related Distribution Date resulting solely from
        voluntary Principal Prepayments received by the related Servicer during the
        portion of the Prepayment Period occurring from (i) with respect to Wells
        Fargo,
        the 14th
        day of
        the month preceding the month in which the related Distribution Date occurs
        and
        ending on the last day of the month preceding the month in which the related
        Distribution Date occurs and (ii) with respect to Ocwen, the 16th
        day of
        the month preceding the month in which the related Distribution Date occurs
        and
        ending on the last day of the month preceding the month in which the related
        Distribution Date occurs and (ii) the aggregate amount of the related Servicing
        Fees payable to the related Servicer on such Distribution Date with respect
        to
        the related Mortgage Loans. The Servicers shall not have the right to
        reimbursement for any amounts remitted to the Securities Administrator in
        respect of this Section 3.22. The Servicers shall not be obligated to pay
        the amounts set forth in this Section 3.22 with respect to shortfalls
        resulting from the application of the Relief Act.

       

      SECTION
        3.23  Obligations
        of Each Servicer in Respect of Mortgage Rates and Monthly
        Payments.

       

      In
        the
        event that a shortfall in any collection on or liability with respect to
        any
        Mortgage Loan results from or is attributable to adjustments to Mortgage
        Rates,
        Monthly Payments or Scheduled Principal Balances that were made by the related
        Servicer in a manner not consistent with the terms of the related Mortgage
        Note
        and this Agreement, such Servicer, upon discovery or receipt of notice thereof,
        immediately shall deliver to the Securities Administrator for deposit in
        the
        Distribution Account from its own funds the amount of any such shortfall
        and
        shall indemnify and hold harmless the Trust Fund, the Trustee, the Securities
        Administrator, the Master Servicer, the Depositor and any successor servicer
        in
        respect of any such liability. Such indemnities shall survive the termination
        or
        discharge of this Agreement. Notwithstanding the foregoing, this
        Section 3.23 shall not limit the ability of the related Servicer to seek
        recovery of any such amounts from the related Mortgagor under the terms of
        the
        related Mortgage Note and Mortgage, to the extent permitted by applicable
        law.

       

      SECTION
        3.24  Reserve
        Fund.

       

      (a)  No
        later
        than the Closing Date, the Securities Administrator shall establish and maintain
        a separate, segregated trust account entitled, “Reserve Fund, Wells Fargo Bank,
        National Association, in trust for the registered holders of ACE Securities
        Corp. Home Equity Loan Trust, Series 2006-SD1, Asset Backed Pass-Through
        Certificates.” On the Closing Date, the Depositor will deposit, or cause to be
        deposited, into the Reserve Fund $1,000. 

       

      (b)  On
        each
        Distribution Date, the Securities Administrator shall deposit into the Reserve
        Fund the amounts described in clause sixth
        of
        Section 5.01(a)(5) of this Agreement, rather than distributing such amounts
        to the Class CE-1 Certificateholders, and in clause seventh
        of
        Section 5.01(a)(5) of this Agreement. On each such Distribution Date, the
        Securities Administrator shall hold all such amounts for the benefit of the
        Holders of the Class A Certificates and the Mezzanine Certificates and will
        distribute such amounts to the Holders of the Class A Certificates and the
        Mezzanine Certificates, in the amounts and priorities set forth in
        Section 5.01(a) of this Agreement. If no Net WAC Rate Carryover Amounts are
        payable on a Distribution Date, the Securities Administrator shall deposit,
        into
        the Reserve Fund on behalf of the Class CE-1 Certificateholders, from amounts
        otherwise distributable to the Class CE-1 Certificateholders, an amount such
        that when added to other amounts already on deposit in the Reserve Fund,
        the
        aggregate amount on deposit therein is equal to $1,000.

       

      (c)  It
        is the
        intention of the parties hereto that, for federal and state income and state
        and
        local franchise tax purposes, the Reserve Fund be disregarded as an entity
        separate from the Holder of the Class CE-1 Certificates unless and until
        the
        date when either (a) there is more than one Class CE-1 Certificateholder
        or (b)
        any Class of Certificates in addition to the Class CE-1 Certificates is
        recharacterized as an equity interest in the Reserve Fund for federal income
        tax
        purposes, in which case it is the intention of the parties hereto that, for
        federal and state income and state and local franchise tax purposes, the
        Reserve
        Fund be treated as a partnership. All amounts deposited into the Reserve
        Fund
        (other than the initial deposit therein of $1,000) shall be treated as amounts
        distributed by REMIC II to the Holders of the Class CE-1 Certificates. Upon
        the
        termination of the Trust Fund, or the payment in full of the Class A
        Certificates and the Mezzanine Certificates, all amounts remaining on deposit
        in
        the Reserve Fund will be released by the Trust Fund and distributed to the
        Class
        CE-1 Certificateholders or their designees. The Reserve Fund will be part
        of the
        Trust Fund but not part of any REMIC and any payments to the Holders of the
        Class A Certificates or the Mezzanine Certificates of Net WAC Rate Carryover
        Amounts will not be payments with respect to a “regular interest” in a REMIC
        within the meaning of Code Section 860(G)(a)(1).

       

      (d)  By
        accepting a Class CE-1 Certificate, each Class CE-1 Certificateholder hereby
        agrees that the Securities Administrator will deposit into the Reserve Fund
        the
        amounts described above on each Distribution Date rather than distributing
        such
        amounts to the Class CE-1 Certificateholders. By accepting a Class CE-1
        Certificate, each Class CE-1 Certificateholder further agrees that its agreement
        to such action by the Securities Administrator is given for good and valuable
        consideration, the receipt and sufficiency of which is acknowledged by such
        acceptance.

       

      (e)  At
        the
        direction of the Holders of a majority in Percentage Interest in the Class
        CE-1
        Certificates, the Securities Administrator shall direct any depository
        institution maintaining the Reserve Fund to invest the funds in such account
        in
        one or more Permitted Investments bearing interest or sold at a discount,
        and
        maturing, unless payable on demand, (i) no later than the Business Day
        immediately preceding the date on which such funds are required to be withdrawn
        from such account pursuant to this Agreement, if a Person other than the
        Securities Administrator or an Affiliate manages or advises such investment,
        and
        (ii) no later than the date on which such funds are required to be withdrawn
        from such account pursuant to this Agreement, if the Securities Administrator
        or
        an Affiliate manages or advises such investment. All income and gain earned
        upon
        such investment shall be deposited into the Reserve Fund. In no event shall
        the
        Securities Administrator be liable for any investments made pursuant to this
        clause (e). If the Holders of a majority in Percentage Interest in the Class
        CE-1 Certificates fail to provide investment instructions, funds on deposit
        in
        the Reserve Fund shall be held uninvested by the Securities Administrator
        without liability for interest or compensation.

       

      (f)  For
        federal tax return and information reporting, the right of the Class A
        Certificateholders and the Mezzanine Certificateholders to receive payments
        from
        the Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be
        assigned a value of $1,000.00.

       

      SECTION
        3.25  Advance
        Facility.

       

      (a)  Notwithstanding
        anything to the contrary contained herein, (i) each Servicer is hereby
        authorized to enter into an advance facility (“Advance Facility”) but no more
        than two Advance Facilities without the prior written consent of the Trustee,
        which consent shall not be unreasonably withheld, under which (A) such Servicer
        sells, assigns or pledges to an advancing person (an “Advance Financing Person”)
        its rights under this Agreement to be reimbursed for any P&I Advances or
        Servicing Advances and/or (B) an Advance Financing Person agrees to finance
        some
        or all P&I Advances or Servicing Advances required to be made by such
        Servicer pursuant to this Agreement and (ii) each Servicer is hereby authorized
        to assign its rights to the Servicing Fee (which rights shall terminate upon
        the
        resignation, termination or removal of such Servicer pursuant to the terms
        of
        this Agreement); it being understood that neither the Trust Fund nor any
        party
        hereto shall have a right or claim (including without limitation any right
        of
        offset) to any amounts for reimbursement of P&I Advances or Servicing
        Advances so assigned or to the portion of the Servicing Fee so assigned.
        Subject
        to the provisions of the first sentence of this Section 3.25(a), no consent
        of the Depositor, Trustee, Master Servicer, Certificateholders or any other
        party is required before the related Servicer may enter into an Advance
        Facility, but such Servicer shall provide notice to the Depositor, Master
        Servicer and the Trustee of the existence of any such Advance Facility promptly
        upon the consummation thereof stating (a) the identity of the Advance Financing
        Person and (b) the identity of any Person (“Servicer’s Assignee”) who has the
        right to receive amounts in reimbursement of previously unreimbursed P&I
        Advances or Servicing Advances. Notwithstanding the existence of any Advance
        Facility under which an advancing person agrees to finance P&I Advances
        and/or Servicing Advances on the related Servicer’s behalf, such Servicer shall
        remain obligated pursuant to this Agreement to make P&I Advances and
        Servicing Advances pursuant to and as required by this Agreement, and shall
        not
        be relieved of such obligations by virtue of such Advance Facility.

       

      (b)  Reimbursement
        amounts (“Advance Reimbursement Amounts”) shall consist solely of amounts in
        respect of P&I Advances and/or Servicing Advances made with respect to the
        Mortgage Loans for which the related Servicer would be permitted to reimburse
        itself in accordance with this Agreement, assuming such Servicer had made
        the
        related P&I Advance(s) and/or Servicing Advance(s).

       

      (c)  Each
        Servicer shall maintain and provide to any successor Servicer (with, upon
        request, a copy to the Trustee) a detailed accounting on a loan-by-loan basis
        as
        to amounts advanced by, pledged or assigned to, and reimbursed to any advancing
        person. The successor Servicer shall be entitled to rely on any such information
        provided by the predecessor Servicer, and the successor Servicer shall not
        be
        liable for any errors in such information.

       

      (d)  Reimbursement
        amounts distributed with respect to each Mortgage Loan shall be allocated
        to
        outstanding unreimbursed P&I Advances or Servicing Advances (as the case may
        be) made with respect to that Mortgage Loan on a “first-in, first out” (FIFO)
        basis. The documentation establishing any Advance Facility shall require
        the
        related Servicer to provide to the related advancing person or its designee
        loan-by-loan information with respect to each such reimbursement amount
        distributed to such advancing person or Advance Facility trustee on each
        Distribution Date, to enable the advancing person or Advance Facility trustee
        to
        make the FIFO allocation of each such reimbursement amount with respect to
        each
        Mortgage Loan. The related Servicer shall remain entitled to be reimbursed
        by
        the advancing person or Advance Facility trustee for all P&I Advances and
        Servicing Advances funded by the related Servicer to the extent the related
        rights to be reimbursed therefor have not been sold, assigned or pledged
        to an
        advancing person.

       

      (e)  Any
        amendment to this Section 3.25 or to any other provision of this Agreement
        that may be necessary or appropriate to effect the terms of an Advance Facility
        as described generally in this Section 3.25, including amendments to add
        provisions relating to a successor Servicer, may be entered into by the Trustee,
        the Depositor and the related Servicer without the consent of any
        Certificateholder, notwithstanding anything to the contrary in this Agreement,
        provided, that the Trustee has been provided an Opinion of Counsel that such
        amendment is authorized hereunder and has no material adverse effect on the
        Certificateholders, which opinion shall be an expense of the party requesting
        such opinion but in any case shall not be an expense of the Trustee or the
        Trust
        Fund; provided, further, that the amendment shall not be deemed to adversely
        affect in any material respect the interests of the Certificateholders if
        the
        Person requesting the amendment obtains a letter from each Rating Agency
        (instead of obtaining an Opinion of Counsel to such effect) stating that
        the
        amendment would not result in the downgrading or withdrawal of the respective
        ratings then assigned to the Certificates; it being understood and agreed
        that
        any such rating letter in and of itself will not represent a determination
        as to
        the materiality of any such amendment and will represent a determination
        only as
        to the credit issues affecting any such rating. Prior to entering into an
        Advance Facility, the related Servicer shall notify the lender under such
        facility in writing that: (a) the P&I Advances and/or Servicing Advances
        financed by and/or pledged to the lender are obligations owed to such Servicer
        on a non-recourse basis payable only from the cash flows and proceeds received
        under this Agreement for reimbursement of P&I Advances and/or Servicing
        Advances only to the extent provided herein, and neither the Master Servicer,
        the Securities Administrator, the Trustee nor the Trust are otherwise obligated
        or liable to repay any P&I Advances and/or Servicing Advances financed by
        the lender; (b) such Servicer will be responsible for remitting to the lender
        the applicable amounts collected by it as Servicing Fees and as reimbursement
        for P&I Advances and/or Servicing Advances funded by the lender, as
        applicable, subject to the restrictions and priorities created in this
        Agreement; and (c) neither the Master Servicer, the Securities Administrator
        nor
        the Trustee shall have any responsibility to calculate any amount payable
        under
        an Advance Facility or to track or monitor the administration of the financing
        arrangement between such Servicer and the lender or the payment of any amount
        under an Advance Facility.

       

      (f)  The
        related Servicer shall indemnify the Master Servicer, the Securities
        Administrator, the Trustee and the Trust Fund for any cost, liability or
        expense
        relating to the Advance Facility including, without limitation, a claim,
        pending
        or threatened, by an Advance Financing Person.

       

      SECTION
        3.26  The
        Servicer’s Indemnification Obligation.

       

      Each
        Servicer agrees to indemnify the Trustee, the Master Servicer and the Securities
        Administrator, from, and hold the Trustee, Master Servicer and the Securities
        Administrator harmless against, any loss, liability or expense (including
        reasonable attorney’s fees and expenses) incurred by any such Person by reason
        of such Servicer’s willful misfeasance, bad faith or gross negligence in the
        performance of its duties under this Agreement or by reason of such Servicer’s
        reckless disregard of its obligations and duties under this Agreement. Such
        indemnity shall survive the termination or discharge of this Agreement and
        the
        resignation or removal of the related Servicer, the Trustee, the Master Servicer
        and the Securities Administrator. Any payment hereunder made by the related
        Servicer to any such Person shall be from such Servicer’s own funds, without
        reimbursement from REMIC I therefor.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        IV  

       

      ADMINISTRATION
        AND MASTER SERVICING

      OF
        THE
        MORTGAGE LOANS BY THE MASTER SERVICER

       

      SECTION
        4.01  Master
        Servicer.

       

      The
        Master Servicer shall, from and after the Closing Date, supervise, monitor
        and
        oversee the obligations of Ocwen and Wells Fargo under this Agreement and
        SPS
        under the Servicing Agreement to service and administer the related Mortgage
        Loans in accordance with the terms of this Agreement and the Servicing Agreement
        and shall have full power and authority to do any and all things which it
        may
        deem necessary or desirable in connection with such master servicing and
        administration. In performing its obligations hereunder, the Master Servicer
        shall act in a manner consistent with Accepted Master Servicing Practices.
        Furthermore, the Master Servicer shall oversee and consult with the Servicers
        as
        necessary from time-to-time to carry out the Master Servicer’s obligations
        hereunder, shall receive, review and evaluate all reports, information and
        other
        data provided to the Master Servicer by the Servicers and shall cause the
        Servicers to perform and observe the covenants, obligations and conditions
        to be
        performed or observed by the related Servicer under this Agreement or the
        Servicing Agreement, as applicable. The Master Servicer shall independently
        and
        separately monitor each Servicer’s servicing activities with respect to each
        related Mortgage Loan, reconcile the results of such monitoring with such
        information provided in the previous sentence on a monthly basis and coordinate
        corrective adjustments to each Servicer’s and Master Servicer’s records, and
        based on such reconciled and corrected information, prepare the statements
        specified in Section 5.03 and any other information and statements required
        to be provided by the Master Servicer hereunder. The Master Servicer shall
        reconcile the results of its Mortgage Loan monitoring with the actual
        remittances of each Servicer to the Distribution Account pursuant to the
        terms
        hereof based on information provided to the Master Servicer by each Servicer.
        

       

      The
        Trustee shall furnish the Servicers and the Master Servicer with any limited
        powers of attorney in the form set forth on Exhibit D hereto or attached
        to the
        Servicing Agreement, as applicable, and other documents in a form acceptable
        to
        the Trustee, and necessary or appropriate to enable the Servicers and the
        Master
        Servicer to service and administer the related Mortgage Loans and REO
        Properties. The Trustee shall have no responsibility for any action of the
        Master Servicer or the Servicers pursuant to any such limited power of attorney
        and shall be indemnified by the Master Servicer or the related Servicer,
        as
        applicable, for any cost, liability or expense incurred by the Trustee in
        connection with such Person’s misuse of any such power of attorney.

       

      The
        Trustee, the Custodians and the Securities Administrator shall provide access
        to
        the records and documentation in possession of the Trustee, the Custodians
        or
        the Securities Administrator regarding the related Mortgage Loans and REO
        Property and the servicing thereof to the Certificateholders, the FDIC, and
        the
        supervisory agents and examiners of the FDIC, such access being afforded
        only
        upon reasonable prior written request and during normal business hours at
        the
        office of the Trustee, the Custodians or the Securities Administrator; provided,
        however, that, unless otherwise required by law, none of the Trustee, the
        Custodians or the Securities Administrator shall be required to provide access
        to such records and documentation if the provision thereof would violate
        the
        legal right to privacy of any Mortgagor. The Custodians shall allow
        representatives of the Trustee and the Securities Administrator to photocopy
        any
        of the records and documentation and shall provide equipment for that purpose
        at
        a charge that covers the Custodians’ actual costs.

       

      The
        Trustee shall execute and deliver to the Servicers or the Master Servicer
        upon
        request any court pleadings, requests for trustee’s sale or other documents
        necessary or desirable to (i) the foreclosure or trustee’s sale with respect to
        a Mortgaged Property; (ii) any legal action brought to obtain judgment against
        any Mortgagor on the Mortgage Note or any other Mortgage Loan Document; (iii)
        obtain a deficiency judgment against the Mortgagor; or (iv) enforce any other
        rights or remedies provided by the Mortgage Note or any other Mortgage Loan
        Document or otherwise available at law or equity.

       

      SECTION
        4.02  REMIC-Related
        Covenants.

       

      For
        as
        long as each REMIC shall exist, the Trustee and the Securities Administrator
        shall act in accordance herewith to treat such REMIC as a REMIC, and the
        Trustee
        and the Securities Administrator shall comply with any directions of the
        Sponsor, the Servicers or the Master Servicer to assure such continuing
        treatment. In particular, the Trustee shall not (a) sell or permit the sale
        of
        all or any portion of the Mortgage Loans or of any investment of deposits
        in an
        Account unless such sale is as a result of a repurchase of the Mortgage Loans
        pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
        at the expense of the Trust Fund; and (b) other than with respect to a
        substitution pursuant to the Mortgage Loan Purchase Agreement or
        Section 2.03 of this Agreement, as applicable, accept any contribution to
        any REMIC after the Startup Day without receipt of a Opinion of Counsel stating
        that such contribution will not result in an Adverse REMIC Event as defined
        in
        Section 11.01(f) of this Agreement.

       

      SECTION
        4.03  Monitoring
        of the Servicers.

       

      (a)  The
        Master Servicer shall be responsible for monitoring the compliance by Ocwen
        and
        Wells Fargo with their duties under this Agreement and SPS with its duties
        under
        the Servicing Agreement. In the review of the related Servicer’s activities, the
        Master Servicer may rely upon an officer’s certificate of the related Servicer
        with regard to such Servicer’s compliance with the terms of this Agreement or
        the Servicing Agreement, as applicable. In the event that the Master Servicer,
        in its judgment, determines that a Servicer should be terminated in accordance
        with the terms hereof or the terms of the Servicing Agreement or that a notice
        should be sent pursuant to the terms hereof or the terms of the Servicing
        Agreement with respect to the occurrence of an event that, unless cured,
        would
        constitute a Servicer Event of Default, or an event of default under the
        Servicing Agreement, the Master Servicer shall notify the related Servicer,
        the
        Sponsor and the Trustee thereof and (i) with respect to Ocwen or SPS, the
        Master
        Servicer shall issue such notice or take such other action as it deems
        appropriate and (ii) with respect to Wells Fargo, the Trustee shall issue
        such
        notice or take such other action as it deems appropriate.

       

      (b)  The
        Master Servicer, for the benefit of the Trustee and the Certificateholders,
        shall enforce the obligations of Ocwen under this Agreement and SPS under
        the
        Servicing Agreement. The Trustee, for the benefit of the Certificateholders,
        shall enforce the obligations of Wells Fargo under this Agreement. In the
        event
        that Ocwen fails to perform its obligations in accordance with this Agreement
        the Master Servicer shall, subject to this Section and Article VIII, terminate
        the rights and obligations of Ocwen hereunder in accordance with the provisions
        of Article VIII of this Agreement. In the event that Wells Fargo fails to
        perform its obligations in accordance with this Agreement the Trustee shall,
        subject to this Section and Article VIII, terminate the rights and obligations
        of Wells Fargo hereunder in accordance with the provisions of Article VIII
        of
        this Agreement. In the event that SPS fails to perform its obligations in
        accordance with the Servicing Agreement, the Master Servicer shall terminate
        the
        rights and obligations of such Servicer as servicer in accordance with the
        Servicing Agreement. Such enforcement, including, without limitation, the
        legal
        prosecution of claims and the pursuit of other appropriate remedies, shall
        be in
        such form and carried out to such an extent and at such time as the Master
        Servicer, in its good faith business judgment, would require were it the
        owner
        of the related Mortgage Loans. Except as set forth below, the Master Servicer
        shall pay the costs of such enforcement at its own expense, provided that
        the
        Master Servicer and the Trustee shall not be required to prosecute or defend
        any
        legal action except to the extent that the Master Servicer or the Trustee,
        as
        applicable, shall have received reasonable indemnity for its costs and expenses
        in pursuing such action. To the extent that such costs and expenses are not
        indemnified by Ocwen, Wells Fargo or SPS hereunder or under the Servicing
        Agreement, then the Trustee and the Master Servicer shall be indemnified
        for
        such costs and expenses out of the Trust Fund.

       

      (c)  The
        Master Servicer or, in the case of Wells Fargo, the Trustee, shall be entitled
        to be reimbursed by the related Servicer (or from amounts on deposit in the
        Distribution Account if the related Servicer is unable to fulfill its
        obligations hereunder or under the Servicing Agreement) for all reasonable
        out-of-pocket or third party costs associated with the transfer of servicing
        from the predecessor Servicer (or if the predecessor Servicer is the Master
        Servicer, from the related Servicer immediately preceding the Master Servicer),
        including without limitation, any reasonable out-of-pocket or third party
        costs
        or expenses associated with the complete transfer of all servicing data and
        the
        completion, correction or manipulation of such servicing data as may be required
        by the Master Servicer or, in the case of Wells Fargo, the Trustee to correct
        any errors or insufficiencies in the servicing data or otherwise to enable
        a
        successor servicer (which may be the Master Servicer except with respect
        to the
        Wells Fargo Mortgage Loans) to service the related Mortgage Loans properly
        and
        effectively, upon presentation of reasonable documentation of such costs
        and
        expenses.

       

      (d)  The
        Master Servicer shall require the Servicers to comply with the remittance
        requirements and other obligations set forth in this Agreement and the Servicing
        Agreement, as applicable.

       

      (e)  If
        the
        Master Servicer acts as successor to a Servicer, it will not assume liability
        for the representations and warranties of the terminated Servicer. The Master
        Servicer shall not act as a successor to Wells Fargo in its capacity as the
        Servicer of the Wells Fargo Mortgage Loans.

       

      SECTION
        4.04  Fidelity
        Bond.

       

      The
        Master Servicer, at its expense, shall maintain in effect a blanket fidelity
        bond and an errors and omissions insurance policy, affording coverage with
        respect to all directors, officers, employees and other Persons acting on
        such
        Master Servicer’s behalf, and covering errors and omissions in the performance
        of the Master Servicer’s obligations hereunder. The errors and omissions
        insurance policy and the fidelity bond shall be in such form and amount
        generally acceptable for entities serving as master servicers or
        trustees.

       

      SECTION
        4.05  Power
        to Act; Procedures.

       

      The
        Master Servicer shall master service the Mortgage Loans and shall have full
        power and authority, subject to the REMIC Provisions and the provisions of
        Article XI, to do any and all things that it may deem necessary or desirable
        in
        connection with the master servicing and administration of the Mortgage Loans,
        including but not limited to the power and authority (i) to execute and deliver,
        on behalf of the Certificateholders and the Trustee, customary consents or
        waivers and other instruments and documents, (ii) to consent to transfers
        of any
        Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages,
        (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and (iv)
        to
        effectuate foreclosure or other conversion of the ownership of the Mortgaged
        Property securing any Mortgage Loan, in each case, in accordance with the
        provisions of this Agreement; provided, however, that the Master Servicer
        shall
        not (and, consistent with its responsibilities under Section 4.03, shall
        not permit a Servicer) knowingly or intentionally take any action, or fail
        to
        take (or fail to cause to be taken) any action reasonably within its control
        and
        the scope of duties more specifically set forth herein, that, under the REMIC
        Provisions, if taken or not taken, as the case may be, would cause REMIC
        I or
        REMIC II to fail to qualify as a REMIC or result in the imposition of a tax
        upon
        the Trust Fund (including but not limited to the tax on prohibited transactions
        as defined in Section 860F(a)(2) of the Code and the tax on contributions
        to a REMIC set forth in Section 860G(d) of the Code) unless the Master
        Servicer has received an Opinion of Counsel (but not at the expense of the
        Master Servicer) to the effect that the contemplated action will not cause
        REMIC
        I or REMIC II to fail to qualify as a REMIC or result in the imposition of
        a tax
        upon REMIC I or REMIC II, as the case may be. The Trustee shall furnish the
        Master Servicer, upon written request from a Servicing Officer, with any
        powers
        of attorney prepared and delivered to it and reasonably acceptable to it
        by
        empowering the Master Servicer or the Servicers to execute and deliver
        instruments of satisfaction or cancellation, or of partial or full release
        or
        discharge, and to foreclose upon or otherwise liquidate Mortgaged Property,
        and
        to appeal, prosecute or defend in any court action relating to the Mortgage
        Loans or the Mortgaged Property, in accordance with this Agreement or the
        Servicing Agreement, and the Trustee shall execute and deliver such other
        documents prepared and delivered to it and reasonably acceptable to it, as
        the
        Master Servicer or the related Servicer may request, to enable the Master
        Servicer to master service and administer the related Mortgage Loans and
        carry
        out its duties hereunder, in each case in accordance with Accepted Master
        Servicing Practices (and the Trustee shall have no liability for the use
        or
        misuse of any such powers of attorney or such other executed documents delivered
        by the Trustee pursuant to this paragraph by the Master Servicer or the
        Servicers and shall be indemnified by the Master Servicer or the related
        Servicer, as applicable, for any cost, liability or expense incurred by the
        Trustee in connection with such Person’s use or misuse of any such power of
        attorney or such other executed documents delivered by the Trustee pursuant
        to
        this paragraph). If the Master Servicer or the Trustee has been advised that
        it
        is likely that the laws of the state in which action is to be taken prohibit
        such action if taken in the name of the Trustee or that the Trustee would
        be
        adversely affected under the “doing business” or tax laws of such state if such
        action is taken in its name, the Master Servicer shall join with the Trustee
        in
        the appointment of a co-trustee pursuant to Section 9.10. In the
        performance of its duties hereunder, the Master Servicer shall be an independent
        contractor and shall not, except in those instances where it is taking action
        in
        the name of the Trustee, be deemed to be the agent of the Trustee.

       

      SECTION
        4.06  Due-on-Sale
        Clauses; Assumption Agreements.

       

      To
        the
        extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
        Servicer shall cause the Servicers to enforce such clauses in accordance
        with
        this Agreement or the Servicing Agreement. If applicable law prohibits the
        enforcement of a due-on-sale clause or such clause is otherwise not enforced
        in
        accordance with this Agreement or the Servicing Agreement and, as a consequence,
        a Mortgage Loan is assumed, the original Mortgagor may be released from
        liability in accordance with this Agreement or the Servicing
        Agreement.

       

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

       

      (a)  The
        Master Servicer shall transmit to the Trustee or the applicable Custodian
        such
        documents and instruments coming into the possession of the Master Servicer
        from
        time to time as are required by the terms hereof to be delivered to the Trustee
        or the applicable Custodian. Any funds received by the Master Servicer in
        respect of any Mortgage Loan or which otherwise are collected by the Master
        Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any
        Mortgage Loan shall be remitted to the Securities Administrator for deposit
        in
        the Distribution Account. The Master Servicer shall, and, subject to
        Section 3.20 of this Agreement or, to the extent provided therein, the
        Servicing Agreement, shall cause the Servicers to provide access to information
        and documentation regarding the Mortgage Loans to the Trustee, its agents
        and
        accountants at any time upon reasonable request and during normal business
        hours, and to Certificateholders that are savings and loan associations,
        banks
        or insurance companies, the Office of Thrift Supervision, the FDIC and the
        supervisory agents and examiners of such Office and Corporation or examiners
        of
        any other federal or state banking or insurance regulatory authority if so
        required by applicable regulations of the Office of Thrift Supervision or
        other
        regulatory authority, such access to be afforded without charge but only
        upon
        reasonable request in writing and during normal business hours at the offices
        of
        the Master Servicer designated by it. In fulfilling such a request the Master
        Servicer shall not be responsible for determining the sufficiency of such
        information.

       

      (b)  All
        Mortgage Files and funds collected or held by, or under the control of, the
        Master Servicer, in respect of any Mortgage Loans, whether from the collection
        of principal and interest payments or from Liquidation Proceeds or Insurance
        Proceeds, shall be remitted to the Securities Administrator for deposit in
        the
        Distribution Account.

       

      SECTION
        4.08  Standard
        Hazard Insurance and Flood Insurance Policies.

       

      For
        each
        Mortgage Loan, the Master Servicer shall enforce the obligation of Ocwen
        and
        Wells Fargo under this Agreement and SPS under the Servicing Agreement to
        maintain or cause to be maintained standard fire and casualty insurance and,
        where applicable, flood insurance, all in accordance with the provisions
        of this
        Agreement or the Servicing Agreement. It is understood and agreed that such
        insurance shall be with insurers meeting the eligibility requirements set
        forth
        in Section 3.11 of the Agreement or the eligibility requirements set forth
        in the Servicing Agreement, as applicable, and that no earthquake or other
        additional insurance is to be required of any Mortgagor or to be maintained
        on
        property acquired in respect of a defaulted loan, other than pursuant to
        such
        applicable laws and regulations as shall at any time be in force and as shall
        require such additional insurance.

       

      SECTION
        4.09  Presentment
        of Claims and Collection of Proceeds.

       

      The
        Master Servicer shall enforce each Servicer’s obligations under this Agreement
        or under the Servicing Agreement, as applicable, to prepare and present on
        behalf of the Trustee and the Certificateholders all claims under the insurance
        policies and take such actions (including the negotiation, settlement,
        compromise or enforcement of the insured’s claim) as shall be necessary to
        realize recovery under such policies. Any proceeds disbursed to the Master
        Servicer (or disbursed to the Servicer and remitted to the Master Servicer)
        in
        respect of such policies, bonds or contracts shall be promptly deposited
        in the
        Distribution Account upon receipt, except that any amounts realized that
        are to
        be applied to the repair or restoration of the related Mortgaged Property
        as a
        condition precedent to the presentation of claims on the related Mortgage
        Loan
        to the insurer under any applicable insurance policy need not be so deposited
        or
        remitted.

       

      SECTION
        4.10  Maintenance
        of Primary Mortgage Insurance Policies.

       

      (a)  The
        Master Servicer shall not take, or permit a Servicer to take (to the extent
        such
        action is prohibited by this Agreement or the Servicing Agreement), any action
        that would result in noncoverage under any primary mortgage insurance policy
        of
        any loss which, but for the actions of the Master Servicer or the related
        Servicer, as applicable, would have been covered thereunder. The Master Servicer
        shall use its best reasonable efforts to cause the Servicers to keep in force
        and effect (to the extent that the Mortgage Loan requires the Mortgagor to
        maintain such insurance), primary mortgage insurance applicable to each Mortgage
        Loan in accordance with the provisions of this Agreement or the Servicing
        Agreement. The Master Servicer shall not, and shall not permit the Servicers
        to,
        cancel or refuse to renew any primary mortgage insurance policy that is in
        effect at the date of the initial issuance of the Mortgage Note and is required
        to be kept in force hereunder except in accordance with the provisions of
        this
        Agreement or the Servicing Agreement.

       

      (b)  The
        Master Servicer agrees to cause the Servicers to present, on behalf of the
        Trustee and the Certificateholders, claims to the insurer under any primary
        mortgage insurance policies and, in this regard, to take such reasonable
        action
        as shall be necessary to permit recovery under any primary mortgage insurance
        policies respecting defaulted Mortgage Loans.

       

      SECTION
        4.11  Trustee
        to Retain Possession of Certain Insurance Policies and
        Documents.

       

      The
        Trustee or the applicable Custodian, as applicable, shall retain possession
        and
        custody of the originals (to the extent available) of any primary mortgage
        insurance policies, or certificate of insurance if applicable, and any
        certificates of renewal as to the foregoing as may be issued from time to
        time
        as contemplated by this Agreement. Until all amounts distributable in respect
        of
        the Certificates have been distributed in full and the Master Servicer and
        the
        Servicers have otherwise fulfilled their respective obligations under this
        Agreement or the Servicing Agreement, as applicable, the Trustee or the
        applicable Custodian shall also retain possession and custody of each Mortgage
        File in accordance with and subject to the terms and conditions of this
        Agreement and the related Custodial Agreement. The Master Servicer shall
        promptly deliver or cause to be delivered to the Trustee or the applicable
        Custodian, upon the execution or receipt thereof the originals of any primary
        mortgage insurance policies, any certificates of renewal, and such other
        documents or instruments that constitute Mortgage Loan Documents that come
        into
        the possession of the Master Servicer from time to time.

       

      SECTION
        4.12  Realization
        Upon Defaulted Mortgage Loans.

       

      Subject
        to Section 3.13(e) of this Agreement, the Master Servicer shall cause the
        Servicers to foreclose upon, repossess or otherwise comparably convert the
        ownership of Mortgaged Properties securing such of the Mortgage Loans as
        come
        into and continue in default and as to which no satisfactory arrangements
        can be
        made for collection of delinquent payments, all in accordance with this
        Agreement or the Servicing Agreement, as applicable.

       

      SECTION
        4.13  Compensation
        for the Master Servicer.

       

      As
        compensation for the activities of the Master Servicer hereunder, the Master
        Servicer shall be entitled to the Master Servicing Fee and the income from
        investment of or earnings on the funds from time to time in the Distribution
        Account, as provided in Section 3.10 of this Agreement. The Master
        Servicing Fee payable to the Master Servicer in respect of any Distribution
        Date
        shall be reduced in accordance with Section 4.19 of this Agreement. The
        Master Servicer shall be required to pay all expenses incurred by it in
        connection with its activities hereunder and shall not be entitled to
        reimbursement therefor except as provided in this Agreement.

       

      SECTION
        4.14  REO
        Property.

       

      (a)  In
        the
        event the Trust Fund acquires ownership of any REO Property in respect of
        any
        related Mortgage Loan, the deed or certificate of sale shall be issued to
        the
        Trustee, or to its nominee, on behalf of the related Certificateholders.
        The
        Master Servicer shall cause the Servicers to sell, any REO Property as
        expeditiously as possible and in accordance with the provisions of this
        Agreement or the Servicing Agreement, as applicable. Further, the Master
        Servicer shall cause the Servicers to sell any REO Property prior to three
        years
        after the end of the calendar year of its acquisition by REMIC I unless (i)
        the
        Trustee shall have been supplied by the related Servicer with an Opinion
        of
        Counsel to the effect that the holding by the Trust Fund of such REO Property
        subsequent to such three-year period will not result in the imposition of
        taxes
        on “prohibited transactions” of any REMIC hereunder as defined in
        Section 860F of the Code or cause any REMIC hereunder to fail to qualify as
        a REMIC at any time that any Certificates are outstanding, in which case
        the
        Trust Fund may continue to hold such Mortgaged Property (subject to any
        conditions contained in such Opinion of Counsel) or (ii) the related Servicer
        shall have applied for, prior to the expiration of such three-year period,
        an
        extension of such three-year period in the manner contemplated by
        Section 856(e)(3) of the Code, in which case the three-year period shall be
        extended by the applicable extension period. The Master Servicer shall cause
        the
        related Servicer to protect and conserve, such REO Property in the manner
        and to
        the extent required by this Agreement or the Servicing Agreement, as applicable,
        in accordance with the REMIC Provisions and in a manner that does not result
        in
        a tax on “net income from foreclosure property” or cause such REO Property to
        fail to qualify as “foreclosure property” within the meaning of
        Section 860G(a)(8) of the Code.

       

      (b)  The
        Master Servicer shall cause the Servicers to deposit all funds collected
        and
        received in connection with the operation of any REO Property in the REO
        Account
        or in the account designated for such amounts under the Servicing
        Agreement.

       

      SECTION
        4.15  Master
        Servicer Annual Statement of Compliance.

       

      (a)  The
        Master Servicer and the Securities Administrator shall deliver (or otherwise
        make available) (and the Master Servicer and Securities Administrator shall
        cause any Additional Servicer or Servicing Function Participant engaged by
        it to
        deliver) to the Depositor and the Securities Administrator, and in the case
        of
        the Master Servicer, to the Trustee, on or before March 15 of each year,
        commencing in March 2007, an Officer’s Certificate stating, as to the signer
        thereof, that (A) a review of such party’s activities during the preceding
        calendar year or portion thereof and of such party’s performance under this
        Agreement, or such other applicable agreement in the case of an Additional
        Servicer or Servicing Function Participant, has been made under such officer’s
        supervision and (B) to the best of such officer’s knowledge, based on such
        review, such party has fulfilled all its obligations under this Agreement,
        or
        such other applicable agreement in the case of an Additional Servicer or
        Servicing Function Participant, in all material respects throughout such
        year or
        portion thereof, or, if there has been a failure to fulfill any such obligation
        in any material respect, specifying each such failure known to such officer
        and
        the nature and status thereof.

       

      (b)  The
        Master Servicer shall include all annual statements of compliance received
        by it
        from the Servicers with its own annual statement of compliance to be submitted
        to the Securities Administrator pursuant to this Section.

       

      (c)  In
        the
        event the Master Servicer, the Securities Administrator or any Servicing
        Function Participant engaged by such parties is terminated, assigns its rights
        and obligations under, or resigns pursuant to the terms of this Agreement,
        or
        any applicable agreement in the case of a Servicing Function Participant,
        as the
        case may be, such party shall provide an Officer’s Certificate pursuant to this
        Section 4.15(c) or to such applicable agreement, as the case may be,
        notwithstanding any such termination, assignment or resignation.

       

      (d)  Failure
        of the Master Servicer to comply timely with this Section 4.15 shall be deemed
        a
        Master Servicer Event of Default, automatically, without notice and without
        any
        cure period, and the Trustee may, in addition to whatever rights the Trustee
        may
        have under this Agreement and at law or in equity or to damages, including
        injunctive relief and specific performance, terminate all the rights and
        obligations of the Master Servicer under this Agreement and in and to the
        Mortgage Loans and the proceeds thereof without compensating the Master Servicer
        for the same. This paragraph shall supersede any other provision in this
        Agreement or any other agreement to the contrary.

       

      (e)  Copies
        of
        such Master Servicer annual statements of compliance shall be provided to
        any
        Certificateholder upon request, by the Master Servicer or by the Trustee
        at the
        Master Servicer’s expense if the Master Servicer failed to provide such copies
        (unless (i) the Master Servicer shall have failed to provide the Trustee
        with
        such statement or (ii) the Trustee shall be unaware of the Master Servicer’s
        failure to provide such statement).

       

      SECTION
        4.16  Master
        Servicer Assessments of Compliance.

       

      (a)  By
        March
        15 of each year, commencing in March 2007, the Master Servicer and the
        Securities Administrator, each at its own expense, shall furnish, or otherwise
        make available, and each such party shall cause any Servicing Function
        Participant engaged by it to furnish, each at its own expense, to the Securities
        Administrator and the Depositor, a report on an assessment of compliance
        with
        the Relevant Servicing Criteria that contains (A) a statement by such party
        of
        its responsibility for assessing compliance with the Relevant Servicing
        Criteria, (B) a statement that such party used the Relevant Servicing Criteria
        to assess compliance with the Relevant Servicing Criteria, (C) such party’s
        assessment of compliance with the Relevant Servicing Criteria as of and for
        the
        fiscal year covered by the Form 10-K required to be filed pursuant to Section
        5.06(d), including, if there has been any material instance of noncompliance
        with the Relevant Servicing Criteria, a discussion of each such failure and
        the
        nature and status thereof, and (D) a statement that a registered public
        accounting firm has issued an attestation report on such party’s assessment of
        compliance with the Relevant Servicing Criteria as of and for such
        period.

       

      (b)  No
        later
        than the end of each fiscal year for the Trust for which a Form 10-K is required
        to be filed, the Master Servicer shall forward to the Securities Administrator
        and the Depositor the name of each Servicing Function Participant engaged
        by it
        and what Relevant Servicing Criteria will be addressed in the report on
        assessment of compliance prepared by such Servicing Function Participant.
        When
        the Master Servicer and the Securities Administrator (or any Servicing Function
        Participant engaged by them) submit their assessments to the Securities
        Administrator, such parties will also at such time include the assessment
        (and
        attestation pursuant to Section 4.17) of each Servicing Function Participant
        engaged by it. 

       

      (c)  Promptly
        after receipt of each such report on assessment of compliance, (i) the Depositor
        shall review each such report and, if applicable, consult with the Master
        Servicer, the Securities Administrator and any Servicing Function Participant
        engaged by such parties as to the nature of any material instance of
        noncompliance with the Relevant Servicing Criteria by each such party, and
        (ii)
        the Securities Administrator shall confirm that the assessments, taken as
        a
        whole, address all of the Servicing Criteria and taken individually address
        the
        Relevant Servicing Criteria for each party as set forth on Exhibit E and
        notify
        the Depositor of any exceptions. 

       

      (d)  The
        Master Servicer shall include all annual reports on assessment of compliance
        received by it from the Servicers with its own assessment of compliance to
        be
        submitted to the Securities Administrator pursuant to this Section.

       

      (e)  In
        the
        event the Master Servicer, the Securities Administrator or any Servicing
        Function Participant engaged by the parties is terminated, assigns its rights
        and obligations under, or resigns pursuant to the terms of this Agreement,
        or
        any other applicable agreement, as the case may be, such party shall provide
        a
        report on assessment of compliance pursuant to this Section 4.16 or to such
        other applicable agreement, notwithstanding any such termination, assignment
        or
        resignation.

       

      (f)  Failure
        of the Master Servicer to comply timely with this Section 4.16 shall be deemed
        a
        Master Servicer Event of Default, automatically, without notice and without
        any
        cure period, and the Trustee may, in addition to whatever rights the Trustee
        may
        have under this Agreement and at law or in equity or to damages, including
        injunctive relief and specific performance, terminate all the rights and
        obligations of the Master Servicer under this Agreement and in and to the
        Mortgage Loans and the proceeds thereof without compensating the Master Servicer
        for the same. This paragraph shall supersede any other provision in this
        Agreement or any other agreement to the contrary.

       

      (g)  Delivery
        under this Section 4.16 of such reports, information and documents to the
        Trustee is for informational purposes only, and the Trustee’s receipt of such
        shall not constitute constructive notice of any information contained therein
        or
        determinable from information contained therein, including the Master Servicer’s
        compliance with any of its covenants hereunder (as to which the Trustee is
        entitled to conclusively rely exclusively on an Officer’s
        Certificate).

       

      SECTION
        4.17  Master
        Servicer Attestation Reports.

       

      (a)  By
        March
        15 of each year, commencing in March 2007, the Master Servicer and the
        Securities Administrator, each at its own expense, shall cause, and each
        such
        party shall cause any Servicing Function Participant engaged by it to cause,
        each at its own expense, a registered public accounting firm (which may also
        render other services to the Master Servicer, the Securities Administrator,
        or
        such other Servicing Function Participants, as the case may be) and that
        is a
        member of the American Institute of Certified Public Accountants to furnish
        an
        attestation report to the Securities Administrator and the Depositor, to
        the
        effect that (i) it has obtained a representation regarding certain matters
        from
        the management of such party, which includes an assertion that such party
        has
        complied with the Relevant Servicing Criteria, and (ii) on the basis of an
        examination conducted by such firm in accordance with standards for attestation
        engagements issued or adopted by the PCAOB, it is expressing an opinion as
        to
        whether such party’s compliance with the Relevant Servicing Criteria was fairly
        stated in all material respects, or it cannot express an overall opinion
        regarding such party’s assessment of compliance with the Relevant Servicing
        Criteria. In the event that an overall opinion cannot be expressed, such
        registered public accounting firm shall state in such report why it was unable
        to express such an opinion. Such report must be available for general use
        and
        not contain restricted use language. 

       

      (b)  Promptly
        after receipt of each such assessment of compliance and attestation report
        from
        the Master Servicer, the Securities Administrator or any Servicing Function
        Participant engaged by such parties, the Securities Administrator shall confirm
        that each assessment submitted pursuant to Section 4.16 is coupled with an
        attestation meeting the requirements of this Section and notify the Depositor
        of
        any exceptions.

       

      (c)  The
        Master Servicer shall include each such attestation received by it from the
        Servicers with its own attestation to be submitted to the Securities
        Administrator pursuant to this Section.

       

      (d)  In
        the
        event the Master Servicer, the Securities Administrator or any Servicing
        Function Participant engaged by the parties is terminated assigns its rights
        and
        under, or resigns pursuant to the terms of this Agreement, or any applicable
        agreement in the case of a Servicing Function Participant, as the case may
        be,
        such party shall cause a registered public accounting firm to provide an
        attestation pursuant to this Section 4.17, or such other applicable agreement,
        notwithstanding any such termination, assignment or resignation.

       

      (e)  Failure
        of the Master Servicer to comply timely with this Section 4.17 shall be deemed
        a
        Master Servicer Event of Default, automatically, without notice and without
        any
        cure period, and the Trustee may, in addition to whatever rights the Trustee
        may
        have under this Agreement and at law or in equity or to damages, including
        injunctive relief and specific performance, terminate all the rights and
        obligations of the Master Servicer under this Agreement and in and to the
        Mortgage Loans and the proceeds thereof without compensating the Master Servicer
        for the same. This paragraph shall supersede any other provision in this
        Agreement or any other agreement to the contrary.

       

      SECTION
        4.18  Annual
        Certification.

       

      Each
        Form
        10-K required to be filed for the Trust pursuant to Section 5.06 shall include
        a
        certification (the “Sarbanes-Oxley Certification”) required to be included
        therewith pursuant to the Sarbanes-Oxley Act. Each of the Master Servicer
        and
        the Securities Administrator shall provide, and shall cause any Servicing
        Function Participant engaged by it to, provide to the Person who signs the
        Sarbanes-Oxley Certification (the “Certifying Person”), by March 15 of each year
        in which the Trust is subject to the reporting requirements of the Exchange
        Act
        and otherwise within a reasonable period of time upon request, a certification
        (each, a “Back-Up Certification”), in the form attached hereto as Exhibit C,
        upon which the Certifying Person, the entity for which the Certifying Person
        acts as an officer, and such entity’s officers, directors and Affiliates
        (collectively with the Certifying Person, “Certification Parties”) can
        reasonably rely. The senior officer of the Master Servicer in charge of the
        master servicing function shall serve as the Certifying Person on behalf
        of the
        Trust. Such officer of the Certifying Person can be contacted by e-mail at
        cts.sec.notifications@wellsfargo.com or by facsimile at 410-715-2380. In
        the
        event the Master Servicer, the Securities Administrator or any Servicing
        Function Participant engaged by parties is terminated or resigns pursuant
        to the
        terms of this Agreement, or any applicable Sub-Servicing Agreement, as the
        case
        may be, such party shall provide a Back-Up Certification to the Certifying
        Person pursuant to this Section 4.18 with respect to the period of time it
        was
        subject to this Agreement or any applicable Sub-Servicing Agreement, as the
        case
        may be. Notwithstanding the foregoing, (i) the Master Servicer and the
        Securities Administrator shall not be required to deliver a Back-Up
        Certification to each other if both are the same Person and the Master Servicer
        is the Certifying Person and (ii) the Master Servicer shall not be obligated
        to
        sign the Sarbanes-Oxley Certification in the event that it does not receive
        any
        Back-Up Certification required to be furnished to it pursuant to this section
        or
        any servicing agreement.

       

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

       

      In
        the
        event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit
        into the Distribution Account not later than the related Distribution Date
        an
        amount equal to the lesser of (i) the aggregate amounts required to be paid
        by
        the Servicers with respect to Prepayment Interest Shortfalls attributable
        to
        Principal Prepayments in full on the Mortgage Loans for the related Distribution
        Date, and not so paid by the Servicers and (ii) the aggregate amount of the
        related Master Servicing Fees for such Distribution Date, without reimbursement
        therefor.

       

      SECTION
        4.20  Prepayment
        Penalty Verification.

       

      On
        or
        prior to each Servicer Remittance Date, each Servicer shall provide, in an
        electronic format acceptable to the Master Servicer, the data necessary for
        the
        Master Servicer to perform its verification duties set forth in this
        Section 4.20. The Master Servicer or a third party reasonably acceptable to
        the Master Servicer and the Depositor (the “Verification Agent”) will perform
        such verification duties and will use its best efforts to issue its findings
        in
        a report (the “Verification Report”) delivered to the Master Servicer and the
        Depositor within ten (10) Business Days following the related Distribution
        Date;
        provided, however, that if the Verification Agent is unable to issue the
        Verification Report within ten (10) Business Days following the Distribution
        Date, the Verification Agent may issue and deliver to the Master Servicer
        and
        the Depositor the Verification Report upon the completion of its verification
        duties. The Master Servicer shall forward the Verification Report to the
        related
        Servicer and shall notify such Servicer if the Master Servicer has determined
        that such Servicer did not deliver the appropriate Prepayment Charge to the
        Securities Administrator in accordance with this Agreement. Such written
        notification from the Master Servicer shall include the loan number, prepayment
        penalty code and prepayment penalty amount as calculated by the Master Servicer
        or the Verification Agent, as applicable, of each Mortgage Loan for which
        there
        is a discrepancy. If the related Servicer agrees with the verified amounts,
        such
        Servicer shall adjust the immediately succeeding Servicer Report and the
        amount
        remitted to the Securities Administrator with respect to prepayments
        accordingly. If the related Servicer disagrees with the determination of
        the
        Master Servicer, such Servicer shall, within five (5) Business Days of its
        receipt of the Verification Report, notify the Master Servicer of such
        disagreement and provide the Master Servicer with detailed information to
        support its position. The related Servicer and the Master Servicer shall
        cooperate to resolve any discrepancy on or prior to the immediately succeeding
        Servicer Remittance Date, and such Servicer will indicate the effect of such
        resolution on the related Servicer Report and shall adjust the amount remitted
        with respect to prepayments on such Servicer Remittance Date
        accordingly.

       

      During
        such time as the related Servicer and the Master Servicer are resolving
        discrepancies with respect to the Prepayment Charges, no payments in respect
        of
        any disputed Prepayment Charges will be remitted to the Securities Administrator
        for deposit in the Distribution Account and the Master Servicer shall not
        be
        obligated to deposit such payments, unless otherwise required pursuant to
        Section 8.01 hereof. In connection with such duties, the Master Servicer
        shall be able to rely solely on the information provided to it by the related
        Servicer in accordance with this Section. The Master Servicer shall not be
        responsible for verifying the accuracy of any of the information provided
        to it
        by the related Servicer.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        V  

       

      PAYMENTS
        TO CERTIFICATEHOLDERS

       

      SECTION
        5.01  Distributions.

       

      (a)  (1)
        On
        each Distribution Date, the following amounts, in the following order of
        priority, shall be distributed by REMIC I to REMIC II on account of the REMIC
        I
        Regular Interests or withdrawn from the Distribution Account and distributed
        to
        the holders of the Class R Certificates, in respect of the Class R-I Interest,
        as the case may be:

       

      (i)  to
        Holders of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTA1A,
        REMIC I Regular Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC
        I
        Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular
        Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest
        I-LTZZ, REMIC I Regular Interest I-LTCE2 and REMIC I Regular Interest I-LTP,
        pro
        rata,
        in an
        amount equal to (A) the Uncertificated Interest for such Distribution Date,
        plus
        (B) any amounts in respect thereof remaining unpaid from previous Distribution
        Dates. Amounts payable as Uncertificated Interest in respect of REMIC I Regular
        Interest I-LTZZ shall be reduced when the REMIC I Overcollateralization Amount
        is less than the REMIC I Required Overcollateralization Amount, by the lesser
        of
        (x) the amount of such difference and (y) the Maximum I-LTZZ Uncertificated
        Interest Deferral Amount and such amount will be payable to the Holders of
        REMIC
        I Regular Interest I-LTA1A, REMIC I Regular Interest I-LTA1B, REMIC I Regular
        Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
        I-LTM3, REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTM5,
        in
        the same proportion as the Overcollateralization Increase Amount is allocated
        to
        the Corresponding Certificates and the Uncertificated Balance of REMIC I
        Regular
        Interest I-LTZZ shall be increased by such amount;

       

      (ii)  to
        the
        Holders of REMIC I Regular Interests, in an amount equal to the remainder
        of the
        Available Distribution Amount for such Distribution Date after the distributions
        made pursuant to clause (i) above, allocated as follows:

       

      (A) 98.00%
        of
        such remainder to the Holders of REMIC I Regular Interest I-LTAA, until the
        Uncertificated Balance of such Uncertificated REMIC I Regular Interest is
        reduced to zero;

       

      (B) 2.00%
        of
        such remainder first to the Holders of REMIC I Regular Interest I-LTA1A,
        REMIC I
        Regular Interest I-LTA1B, REMIC I Regular Interest I-LTM1, REMIC I Regular
        Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
        I-LTM4 and REMIC I Regular Interest I-LTM5, 1.00% of and in the same proportion
        as principal payments are allocated to the Corresponding Certificates, until
        the
        Uncertificated Balances of such REMIC I Regular Interests are reduced to
        zero
        and second to the Holders of REMIC I Regular Interest I-LTZZ, until the
        Uncertificated Balance of such REMIC I Regular Interest is reduced to
        zero;

       

      (C) to
        the
        Holders of REMIC I Regular Interest I-LTP, (1) on each Distribution Date,
        100%
        of the amount paid in respect of Prepayment Charges and (2) on the Distribution
        Date immediately following the expiration of the latest Prepayment Charge
        as
        identified on the Prepayment Charge Schedule or any Distribution Date thereafter
        until $100 has been distributed pursuant to this clause; then

       

      (D) any
        remaining amount to the Holders of the Class R-I Interest, in respect of
        the
        Class R-I Interest;

       

      provided,
        however, that 98.00% and 2.00% of any principal payments that are attributable
        to an Overcollateralization Reduction Amount shall be allocated to Holders
        of
        REMIC I Regular Interest I-LTAA and REMIC I Regular Interest I-LTZZ,
        respectively.

       

      Notwithstanding
        the distributions described in Section 5.01(a)(1), distributions of funds
        shall
        be made to Certificateholders only in accordance with Section 5.01(a)(2)
        through
        (5) and Section 5.01(b).

       

      (2) On
        each
        Distribution Date, the Securities Administrator shall withdraw from the
        Distribution Account to the extent on deposit therein an amount equal to
        the
        Interest Remittance Amount and make the following disbursements and transfers
        in
        the order of priority described below, in each case to the extent of the
        Interest Remittance Amount remaining for such Distribution Date:

       

      first,
        concurrently, to the Holders of the Class A-1A Certificates and the Class
        A-1B
        Certificates, the Senior Interest Distribution Amount allocable to each such
        Class, on a pro rata basis, based on the entitlement of each such
        Class;

       

      second,
        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
        M-4
        and Class M-5 Certificates, in that order, the Interest Distribution Amount
        allocable to each such Class; and

       

      third,
        the
        portion, if any, of the Interest Remittance Amount remaining after application
        pursuant to clauses first
        and
second
        above,
        will be applied as part of the Net Monthly Excess Cashflow for such Distribution
        Date, as described in Section 5.01(a)(5) below.

       

      (3) On
        each
        Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
        Event
        is in effect, the Securities Administrator shall withdraw from the Distribution
        Account to the extent on deposit therein an amount equal to the Principal
        Distribution Amount and distribute to the Certificateholders the following
        amounts, in the following order of priority:

       

      first,
        sequentially, to the Holders of the Class A-1A Certificates and the Class
        A-1B
        Certificates, in that order, until the Certificate Principal Balance of the
        each
        such Class has been reduced to zero; and

       

      second,
        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
        M-4
        and Class M-5 Certificates, in that order, until the Certificate Principal
        Balance of each such Class has been reduced to zero.

       

      (4) On
        each
        Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
        Event is not in effect, the Securities Administrator shall withdraw from
        the
        Distribution Account to the extent on deposit therein an amount equal to
        the
        Principal Distribution Amount and distribute to the Certificateholders the
        following amounts, in the following order of priority:

       

      first,
        sequentially, to the Holders of the Class A-1A Certificates and the Class
        A-1B
        Certificates, in that order, the Class A Principal Distribution Amount, until
        the Certificate Principal Balance of the each such Class has been reduced
        to
        zero;

       

      second,
        to the
        Holders of the Class M-1 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the amount distributed to the Holders
        of
        the Class A Certificates under clause first
        above,
        and (y) the Class M-1 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-1 Certificates has been reduced to
        zero;

       

      third,
        to the
        Holders of the Class M-2 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Holders of the Class A Certificates under clause first
        above
        and to the Holders of the Class M-1 Certificates under clause second
        above,
        and (y) the Class M-2 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-2 Certificates has been reduced to
        zero;

       

      fourth,
        to the
        Holders of the Class M-3 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Holders of the Class A Certificates under clause first
        above,
        to the Holders of the Class M-1 Certificates under clause second
        above
        and to the Holders of the Class M-2 Certificates under clause third
        above,
        and (y) the Class M-3 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-3 Certificates has been reduced to
        zero;

       

      fifth,
        to the
        Holders of the Class M-4 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Holders of the Class A Certificates under clause first
        above,
        to the Holders of the Class M-1 Certificates under clause second
        above,
        to the Holders of the Class M-2 Certificates under clause third
        above
        and to the Holders of the Class M-3 Certificates under clause fourth
        above
        and (y) the Class M-4 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-4 Certificates has been reduced to
        zero;

       

      sixth,
        to the
        Holders of the Class M-5 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Holders of the Class A Certificates under clause first
        above,
        to the Holders of the Class M-1 Certificates under clause second
        above,
        to the Holders of the Class M-2 Certificates under clause third
        above,
        to the Holders of the Class M-3 Certificates under clause fourth
        above
        and to the Holders of the Class M-4 Certificates under clause fifth
        above
        and (y) the Class M-5 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-5 Certificates has been reduced to zero;
        and

       

      seventh,
        the
        portion, if any, of the Principal Distribution Amount remaining after
        application pursuant to clauses first
        through
sixth
        above,
        will be applied as part of the Net Monthly Excess Cashflow for such Distribution
        Date, as described in Section 5.01(a)(5) below.

       

      (5) On
        each
        Distribution Date, the Net Monthly Excess Cashflow (or, in the case of clause
        first
        below,
        the Net Monthly Excess Cashflow exclusive of any Overcollateralization Reduction
        Amount) shall be distributed as follows:

       

      first,
        to the
        Holders of the Class or Classes of Certificates then entitled to receive
        distributions in respect of principal, in an amount equal to the
        Overcollateralization Increase Amount for such Distribution Date, which shall
        be
        included in the Principal Distribution Amount and paid in accordance with
        the
        priorities set forth in Section 5.01(a)(3) and Section 5.01(a)(4)
        above;

       

      second,
        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
        M-4
        and Class M-5 Certificates, in that order, in an amount equal to the Interest
        Carry Forward Amount allocable to each such Class;

       

      third,
        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
        M-4
        and Class M-5 Certificates, in that order, in an amount equal to the Allocated
        Realized Loss Amount allocable to each such Class;

       

      fourth,
        concurrently, to the Holders of the Class A Certificates, in an amount equal
        to
        such Certificates’ allocated share of any Prepayment Interest Shortfalls on the
        Mortgage Loans to the extent not covered by payments pursuant to
        Section 3.22 or 4.19 of this Agreement or pursuant to the Servicing
        Agreement and any shortfalls resulting from the application of the Relief
        Act or
        similar state or local law or the bankruptcy code with respect to the Mortgage
        Loans to the extent not previously reimbursed pursuant to Section 1.02 of
        this Agreement;

       

      fifth,
        sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
        M-4
        and Class M-5 Certificates, in an amount equal to each such Certificates’
allocated share of any Prepayment Interest Shortfalls on the Mortgage Loans
        to
        the extent not covered by payments pursuant to Section 3.22 or 4.19 of this
        Agreement or pursuant to the Servicing Agreement and any shortfalls resulting
        from the application of the Relief Act or similar state or local law or the
        bankruptcy code with respect to the Mortgage Loans to the extent not previously
        reimbursed pursuant to Section 1.02 of this Agreement;

       

      sixth,
        to the
        Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts, if
        any,
        with respect to the Offered Certificates exceeds the amount in the Reserve
        Fund
        that was not distributed on prior Distribution Dates;

       

      seventh,
        to the
        Holders of the Class CE-1 Certificates the sum of (a) the Interest Distribution
        Amount and (b) any Overcollateralization Reduction Amount, in each case,
        for
        such Distribution Date; and

       

      eighth,
        , to the
        Holders of the Class R Certificates, in respect of the Class R-II Interest,
        any
        remaining amounts; provided that if such Distribution Date is the Distribution
        Date immediately following the expiration of the latest Prepayment Charge
        term
        as identified on the Mortgage Loan Schedule or any Distribution Date thereafter,
        then any such remaining amounts will be distributed first, to the Holders
        of the
        Class P Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero; and second, to the Holders of the Class R
        Certificates.

       

      The
        Class
        CE-1 Certificates are intended to receive all principal and interest received
        by
        the Trust on the Mortgage Loans that is not otherwise distributable to any
        other
        Class of Regular Certificates or REMIC Regular Interests. If the Securities
        Administrator determines that the Residual Certificates are entitled to any
        distributions on any Distribution Date other than the final Distribution
        Date,
        the Securities Administrator, prior to any such distribution to any Residual
        Certificate, shall notify the Depositor of such impending distribution. Upon
        such notification, the Depositor will prepare and request that the other
        parties
        hereto enter into an amendment to this Agreement pursuant to Section 12.01,
        to revise such mistake in the distribution provisions. The consent of the
        Holder
        of the Class R Certificate is not required in connection with any such
        amendment,

       

      On
        each
        Distribution Date, after making the distributions of the Available Distribution
        Amount as set forth above, the Securities Administrator will first, withdraw
        from the Reserve Fund all income from the investment of funds in the Reserve
        Fund and distribute such amount to the Holders of the Class CE-1 Certificates,
        and second, withdraw from the Reserve Fund, to the extent of amounts remaining
        on deposit therein, the amount of any Net WAC Rate Carryover Amount for such
        Distribution Date and distribute such amount first, concurrently to the Class
        A
        Certificates, on a pro
        rata
        basis;
        second, to the Class M-1 Certificates, third, to the Class M-2 Certificates,
        fourth, to the Class M-3 Certificates, fifth, to the Class M-4 Certificates
        and
        sixth, to the Class M-5 Certificates,, in each case to the extent any Net
        WAC
        Rate Carryover Amount is allocable to each such Class.

       

      (b)  On
        each
        Distribution Date, for so long as Ocwen is the Servicer of the Ocwen Mortgage
        Loans, Wells Fargo is the Servicer of the Wells Fargo Mortgage Loans or SPS
        is
        the servicer of the SPS Mortgage Loans, the Securities Administrator shall
        distribute to the Holders of the Class CE-2 Certificates, with respect to
        each
        such Mortgage Loan, one-twelfth of the product of (i) the excess of the
        Servicing Fee Rate over the Ocwen Servicing Fee Rate, the Wells Fargo Servicing
        Fee Rate and the SPS Servicing Fee Rate, as applicable, if any, multiplied
        by
        (ii) the Scheduled Principal Balance of the related Mortgage Loan as of the
        Due
        Date in the preceding calendar month (the “Excess Servicing Fee”); provided,
        however, that by accepting a Class CE-2 Certificate, each Class CE-2
        Certificateholder hereby agrees that prior to distribution by the Securities
        Administrator of the Excess Servicing Fee to the Class CE-2 Certificateholder,
        any Excess Servicing Fee will be paid to Wells Fargo to pay the Wells Fargo
        Additional Servicing Fee and, provided further, that in the event the Excess
        Servicing Fee is not sufficient to pay the Wells Fargo Additional Servicing
        Fee
        to Wells Fargo, the Class CE-2 Certificateholder shall remit to the Securities
        Administrator for deposit into the Distribution Account such shortfall amount
        prior to the following Distribution Date. With respect to any successor servicer
        and the Wells Fargo Mortgage Loans, such successor servicer shall not be
        entitled to the Wells Fargo Additional Servicing Fee. On each Distribution
        Date,
        the Securities Administrator shall withdraw any amounts then on deposit in
        the
        Distribution Account that represent Prepayment Charges and shall distribute
        such
        amounts to the Class P Certificateholders as described above.

       

      (c)  All
        distributions made with respect to each Class of Certificates on each
        Distribution Date shall be allocated pro rata among the outstanding Certificates
        in such Class based on their respective Percentage Interests. Payments in
        respect of each Class of Certificates on each Distribution Date will be made
        to
        the Holders of the respective Class of record on the related Record Date
        (except
        as otherwise provided in Section 5.01(e) or Section 10.01 of this
        Agreement respecting the final distribution on such Class), based on the
        aggregate Percentage Interest represented by their respective Certificates,
        and
        shall be made by wire transfer of immediately available funds to the account
        of
        any such Holder at a bank or other entity having appropriate facilities
        therefor, if such Holder shall have so notified the Securities Administrator
        in
        writing at least five Business Days prior to the Record Date immediately
        prior
        to such Distribution Date and is the registered owner of Certificates having
        an
        initial aggregate Certificate Principal Balance that is in excess of the
        lesser
        of (i) $5,000,000 or (ii) two-thirds of the initial Certificate Principal
        Balance of such Class of Certificates, or otherwise by check mailed by first
        class mail to the address of such Holder appearing in the Certificate Register.
        The final distribution on each Certificate will be made in like manner, but
        only
        upon presentment and surrender of such Certificate at the Corporate Trust
        Office
        of the Securities Administrator or such other location specified in the notice
        to Certificateholders of such final distribution.

       

      Each
        distribution with respect to a Book-Entry Certificate shall be paid to the
        Depository, as Holder thereof, and the Depository shall be responsible for
        crediting the amount of such distribution to the accounts of its Depository
        Participants in accordance with its normal procedures. Each Depository
        Participant shall be responsible for disbursing such distribution to the
        Certificate Owners that it represents and to each indirect participating
        brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
        it acts as agent. Each brokerage firm shall be responsible for disbursing
        funds
        to the Certificate Owners that it represents. None of the Trustee, the
        Depositor, the Servicers, the Securities Administrator or the Master Servicer
        shall have any responsibility therefor except as otherwise provided by this
        Agreement or applicable law.

       

      (d)  The
        rights of the Certificateholders to receive distributions in respect of the
        Certificates, and all interests of the Certificateholders in such distributions,
        shall be as set forth in this Agreement. None of the Holders of any Class
        of
        Certificates, the Trustee, the Servicers, the Securities Administrator or
        the
        Master Servicer shall in any way be responsible or liable to the Holders
        of any
        other Class of Certificates in respect of amounts properly previously
        distributed on the Certificates.

       

      (e)  Except
        as
        otherwise provided in Section 10.01 of this Agreement, whenever the
        Securities Administrator expects that the final distribution with respect
        to any
        Class of Certificates will be made on the next Distribution Date, the Securities
        Administrator shall, no later than three (3) days before the related
        Distribution Date, mail to each Holder on such date of such Class of
        Certificates a notice to the effect that:

       

      (i)  the
        Securities Administrator expects that the final distribution with respect
        to
        such Class of Certificates will be made on such Distribution Date but only
        upon
        presentation and surrender of such Certificates at the office of the Securities
        Administrator therein specified, and

       

      (ii)  no
        interest shall accrue on such Certificates from and after the end of the
        related
        Interest Accrual Period.

       

      Any
        funds
        not distributed to any Holder or Holders of Certificates of such Class on
        such
        Distribution Date because of the failure of such Holder or Holders to tender
        their Certificates shall, on such date, be set aside and held in trust by
        the
        Securities Administrator and credited to the account of the appropriate
        non-tendering Holder or Holders. If any Certificates as to which notice has
        been
        given pursuant to this Section 5.01(e) shall not have been surrendered for
        cancellation within six months after the time specified in such notice, the
        Securities Administrator shall mail a second notice to the remaining
        non-tendering Certificateholders to surrender their Certificates for
        cancellation in order to receive the final distribution with respect thereto.
        If
        within one year after the second notice all such Certificates shall not have
        been surrendered for cancellation, the Securities Administrator shall, directly
        or through an agent, mail a final notice to the remaining non-tendering
        Certificateholders concerning surrender of their Certificates but shall continue
        to hold any remaining funds for the benefit of non-tendering Certificateholders.
        The costs and expenses of maintaining the funds in trust and of contacting
        such
        Certificateholders shall be paid out of the assets remaining in such trust
        fund.
        If within one year after the final notice any such Certificates shall not
        have
        been surrendered for cancellation, the Securities Administrator shall pay
        to the
        Depositor all such amounts, and all rights of non-tendering Certificateholders
        in or to such amounts shall thereupon cease. No interest shall accrue or
        be
        payable to any Certificateholder on any amount held in trust by the Securities
        Administrator as a result of such Certificateholder’s failure to surrender its
        Certificate(s) on the final Distribution Date for final payment thereof in
        accordance with this Section 5.01(e). Any such amounts held in trust by the
        Securities Administrator shall be held uninvested in an Eligible
        Account.

       

      (f)  Notwithstanding
        anything to the contrary herein, (i) in no event shall the Certificate Principal
        Balance of a Class A Certificate or a Mezzanine Certificate be reduced more
        than
        once in respect of any particular amount both (a) allocated to such Certificate
        in respect of Realized Losses pursuant to Section 5.04 of this Agreement
        and (b) distributed to the Holder of such Certificate in reduction of the
        Certificate Principal Balance thereof pursuant to this Section 5.01 from
        Net Monthly Excess Cashflow and (ii) in no event shall the Uncertificated
        Balance of a REMIC Regular Interest be reduced more than once in respect
        of any
        particular amount both (a) allocated to such REMIC Regular Interest in respect
        of Realized Losses pursuant to Section 5.04 of this Agreement and (b)
        distributed on such REMIC Regular Interest in reduction of the Uncertificated
        Balance thereof pursuant to this Section 5.01.

       

      SECTION
        5.02  Statements
        to Certificateholders.

       

      On
        each
        Distribution Date, the Securities Administrator (based on the information
        set
        forth in the Servicer Reports for such Distribution Date and information
        provided by the Trustee) shall make available to each Holder of the Certificates
        and each Servicer, a statement as to the distributions made on such Distribution
        Date setting forth:

       

      (i)  the
        amount of the distribution made on such Distribution Date to the Holders
        of the
        Certificates of each Class allocable to principal, and the amount of the
        distribution made on such Distribution Date to the Holders of the Class P
        Certificates allocable to Prepayment Charges;

       

      (ii)  the
        amount of the distribution made on such Distribution Date to the Holders
        of the
        Certificates of each Class allocable to interest;

       

      (iii)  the
        aggregate Servicing Fee received by the Servicers and Master Servicing Fee
        received by the Master Servicer during the related Due Period;

       

      (iv)  applicable
        Interest Accrual Periods and general Distribution Dates;

       

      (v)  the
        total
        cash flows received and the general sources thereof;

       

      (vi)  the
        amount, if any, of other fees or expenses accrued and paid, with an
        identification of the payee and the general purpose of such fees; 

       

      (vii)  the
        amount of the related distribution to Holders of the Certificates (by class)
        allocable to principal, separately identifying (A) the aggregate amount of
        any
        Principal Prepayments included therein, (B) the aggregate of all scheduled
        payments of principal included therein and (C) any Overcollateralization
        Increase Amount included therein;

       

      (viii)  the
        Interest Carry Forward Amounts and any Net WAC Rate Carryover Amounts for
        the
        related Certificates (if any);

       

      (ix)  the
        aggregate amount of P&I Advances included in the distributions on the
        Distribution Date (including the general purpose of such P&I
        Advances);

       

      (x)  the
        number and aggregate principal balance of any Mortgage Loans that were (A)
        delinquent (exclusive of Mortgage Loans in foreclosure) using the “OTS” method
        (1) one scheduled payment is delinquent, (2) two scheduled payments are
        delinquent, (3) three scheduled payments are delinquent and (4) foreclosure
        proceedings have been commenced, and loss information for the
        period;

       

      (xi)  the
        number, aggregate principal balance, weighted average remaining term to maturity
        and weighted average Mortgage Rate of the Mortgage Loans as of the related
        Due
        Date;

       

      (xii)  with
        respect to any Mortgage Loan that was liquidated during the preceding calendar
        month, the loan number and Scheduled Principal Balance of, and Realized Loss
        on,
        such Mortgage Loan as of the end of the related Prepayment Period;

       

      (xiii)  the
        total
        number and principal balance of any real estate owned, or REO Properties,
        as of
        the end of the related Prepayment Period;

       

      (xiv)  whether
        the Stepdown Date has occurred and whether Trigger Event is in
        effect;

       

      (xv)  the
        cumulative Realized Losses through the end of the preceding month;

       

      (xvi)  if
        available, the book value of any REO Property as of the close of business
        on the
        last Business Day of the calendar month preceding the Distribution
        Date;

       

      (xvii)  the
        aggregate amount of Principal Prepayments made during the related Prepayment
        Period and the aggregate amount of any Prepayment Charges received in respect
        thereof;

       

      (xviii)  the
        aggregate amount of Realized Losses incurred during the related Prepayment
        Period and the aggregate amount of Realized Losses incurred since the Closing
        Date;

       

      (xix)  the
        aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
        Distribution Account for such Distribution Date;

       

      (xx)  the
        Certificate Principal Balance of the related Certificates before and after
        giving effect to the distribution of principal and allocation of Allocated
        Realized Loss Amounts on such Distribution Date;

       

      (xxi)  the
        number and Scheduled Principal Balance of all the Mortgage Loans for the
        following Distribution Date;

       

      (xxii)  the
        three-month rolling average of the percent equivalent of a fraction, the
        numerator of which is the aggregate Scheduled Principal Balance of the Mortgage
        Loans that are 60 days or more delinquent or are in bankruptcy or foreclosure
        or
        are REO Properties, and the denominator of which is the Scheduled Principal
        Balances of all of the Mortgage Loans;

       

      (xxiii)  the
        Certificate Factor for each such Class of Certificates applicable to such
        Distribution Date;

       

      (xxiv)  the
        Interest Distribution Amount in respect of the Class A Certificates, the
        Mezzanine Certificates and the Class CE-1 Certificates for such Distribution
        Date and the Interest Carry Forward Amount, if any, with respect to the Class
        A
        Certificates and the Mezzanine Certificates on such Distribution Date, and
        in
        the case of the Class A Certificates and the Mezzanine Certificates separately
        identifying any reduction thereof due to allocations of Prepayment Interest
        Shortfalls and interest shortfalls including the following: Realized Losses,
        Relief Act Interest Shortfalls and Net WAC Rate Carryover Amounts;

       

      (xxv)  the
        aggregate amount of any Prepayment Interest Shortfall for such Distribution
        Date, to the extent not covered by payments by Ocwen and Wells Fargo pursuant
        to
        Section 3.22 of this Agreement, the Master Servicer pursuant to
        Section 4.19 of this Agreement or SPS pursuant to the Servicing
        Agreement;

       

      (xxvi)  the
        aggregate amount of Relief Act Interest Shortfalls for such Distribution
        Date;

       

      (xxvii)  the
        amount of, if any, of Net Monthly Excess Cashflow or excess spread and the
        application of such Net Monthly Excess Cashflow;

       

      (xxviii)  the
        Required Overcollateralization Amount and the Credit Enhancement Percentage
        for
        such Distribution Date;

       

      (xxix)  the
        Overcollateralization Increase Amount, if any, for such Distribution
        Date;

       

      (xxx)  the
        Overcollateralization Reduction Amount, if any, for such Distribution
        Date;

       

      (xxxi)  the
        Net
        WAC Rate Carryover Amount, if any, outstanding after reimbursements therefor
        on
        such Distribution Date;

       

      (xxxii)  the
        respective Pass-Through Rates applicable to the Class A Certificates, the
        Mezzanine Certificates and the Class CE-1 Certificates for such Distribution
        Date;

       

      (xxxiii)  the
        amount of any deposit to the Reserve Fund contemplated by
        Section 3.24(b);

       

      (xxxiv)  the
        balance of the Reserve Fund prior to the deposit or withdrawal of any amounts
        on
        such Distribution Date;

       

      (xxxv)  the
        amount of any deposit to the Reserve Fund pursuant to clause
        sixth
        of
        Section 5.01(a)(5);

       

      (xxxvi)  the
        balance of the Reserve Fund after all deposits and withdrawals on such
        Distribution Date;

       

      (xxxvii)  the
        Loss
        Severity Percentage with respect to each Mortgage Loan;

       

      (xxxviii)  the
        Aggregate Loss Severity Percentage; 

       

      (xxxix)  the
        amount of the Prepayment Charges remitted by the Servicers; and

       

      (xl)  the
        number and aggregate unpaid principal balance of (a) Mortgage Loans with
        respect
        to which bankruptcy protection is in force that are delinquent 60 or more
        days
        under an applicable bankruptcy plan as of the last day of the preceding calendar
        month and (b) Mortgage Loans that are the subject of forebearance plans that
        are
        delinquent 60 or more days under an applicable forebearance plan as of the
        last
        day of the preceding calendar month.

       

      The
        Securities Administrator will make such statement (and, at its option, any
        additional files containing the same information in an alternative format)
        available each month to the Certificateholders and the Rating Agencies via
        the
        Securities Administrator’s internet website. The Securities Administrator’s
        internet website shall initially be located at http:\\www.ctslink.com and
        assistance in using the website can be obtained by calling the Securities
        Administrator’s customer service desk at 1-301-815-6600. Parties that are unable
        to use the above distribution options are entitled to have a paper copy mailed
        to them via first class mail by calling the customer service desk and indicating
        such. The Securities Administrator shall have the right to change the way
        such
        statements are distributed in order to make such distribution more convenient
        and/or more accessible to the above parties and the Securities Administrator
        shall provide timely and adequate notification to all above parties regarding
        any such changes.

       

      In
        the
        case of information furnished pursuant to subclauses (i) and (ii) above,
        the
        amounts shall be expressed as a dollar amount per Single Certificate of the
        relevant Class.

       

      Within
        a
        reasonable period of time after the end of each calendar year, the Securities
        Administrator shall furnish upon request to each Person who at any time during
        the calendar year was a Holder of a Regular Certificate a statement containing
        the information set forth in subclauses (i) through (iii) above, aggregated
        for
        such calendar year or applicable portion thereof during which such person
        was a
        Certificateholder. Such obligation of the Securities Administrator shall
        be
        deemed to have been satisfied to the extent that substantially comparable
        information shall be provided by the Securities Administrator pursuant to
        any
        requirements of the Code as from time to time are in force.

       

      Within
        a
        reasonable period of time after the end of each calendar year, the Securities
        Administrator shall furnish upon request to each Person who at any time during
        the calendar year was a Holder of a Residual Certificate a statement setting
        forth the amount, if any, actually distributed with respect to the Residual
        Certificates, as appropriate, aggregated for such calendar year or applicable
        portion thereof during which such Person was a Certificateholder.

       

      The
        Securities Administrator shall, upon request, furnish to each Certificateholder
        during the term of this Agreement, such periodic, special, or other reports
        or
        information, whether or not provided for herein, as shall be reasonable with
        respect to the Certificateholder, as applicable, or otherwise with respect
        to
        the purposes of this Agreement, all such reports or information to be provided
        at the expense of the Certificateholder, in accordance with such reasonable
        and
        explicit instructions and directions as the Certificateholder may
        provide.

       

      On
        each
        Distribution Date the Securities Administrator shall provide Bloomberg Financial
        Markets, L.P. (“Bloomberg”) CUSIP level factors for each Class of Certificates
        as of such Distribution Date, using a format and media mutually acceptable
        to
        the Securities Administrator and Bloomberg.

       

      SECTION
        5.03  Servicer
        Reports; P&I Advances.

       

      (a)  On
        the
        18th calendar day of each month, and if the 18th calendar day is not a Business
        Day, the immediately following Business Day and with respect to Ocwen on
        or
        before 12:00 noon New York time, each Servicer shall deliver to the Master
        Servicer and the Securities Administrator by telecopy or electronic mail
        (or by
        such other means as such Servicer, the Master Servicer and the Securities
        Administrator may agree from time to time) a remittance report containing
        such
        information with respect to the related Mortgage Loans and the related
        Distribution Date as is reasonably available to such Servicer as the Master
        Servicer or the Securities Administrator may reasonably require so as to
        enable
        the Master Servicer to master service the Mortgage Loans and oversee the
        servicing by such Servicer and the Securities Administrator to fulfill its
        obligations hereunder with respect to securities and tax reporting.
        Any
        report delivered by a Servicer pursuant to this Section 5.03(a) shall
        include the amount collected by such Servicer in respect of Arrearages and
        principal due on the Mortgage Loans prior to the Cut-off Date.

       

      (b)  The
        amount of P&I Advances to be made by the related Servicer on any
        Distribution Date shall equal, subject to Section 5.03(d), (i) with respect
        to the Mortgage Loans other than the Simple Interest Mortgage Loans, the
        aggregate amount of Monthly Payments (net of the related Servicing Fees),
        due
        during the related Due Period in respect of the Mortgage Loans, which Monthly
        Payments were delinquent as of the close of business on the related
        Determination Date, (ii) with respect to the Simple Interest Mortgage Loans,
        thirty (30) days’ interest (net of the related Servicing Fees) on each such
        Simple Interest Mortgage Loan for which the Monthly Payment was due during
        the
        related Due Period which Monthly Payments were delinquent as of the close
        of
        business on the related Determination Date and (iii) with respect to each
        REO
        Property which was acquired during or prior to the related Prepayment Period
        and
        as to which an REO Disposition did not occur during the related Prepayment
        Period, an amount equal to the excess, if any, of the REO Imputed Interest
        on
        such REO Property for the most recently ended calendar month, over the net
        income from such REO Property deposited in the related Collection Account
        pursuant to Section 3.21 of this Agreement for distribution on such
        Distribution Date; provided, however, no Servicer shall be required to make
        P&I Advances with respect to any Monthly Payments due on a Mortgage Loan
        prior to the Cut-off Date, any Relief Act Interest Shortfalls, shortfalls
        due to
        bankruptcy proceedings or with respect to Prepayment Interest Shortfalls
        in
        excess of its obligations under Section 3.22 of this Agreement. For
        purposes of the preceding sentence, the Monthly Payment on each Balloon Mortgage
        Loan with a delinquent Balloon Payment is equal to the assumed monthly payment
        that would have been due on the related Due Date based on the original principal
        amortization schedule for such Balloon Mortgage Loan. Notwithstanding the
        generality of the foregoing, for purposes of a Servicer’s determination of
        whether or not a P&I Advance is required to be made on a Mortgage Loan for
        which the Mortgagor has failed to make one or more Monthly Payments due on
        such
        Mortgage Loan on or prior to the Cut-off Date, any payment in an amount
        equal to a Monthly Payment received by the related Servicer during the Due
        Period relating to such Servicer Remittance Date shall be deemed to be the
        Monthly Payment due during such Due Period and the related Servicer shall
        not be
        required to make a P&I Advance with respect to such Mortgage Loan. In
        addition, no portion of such Monthly Payment received on such Mortgage Loan
        will
        constitute the receipt of an Arrearage with respect to such Mortgage Loan
        unless
        all Monthly Payments required to be made on such Mortgage Loan for all prior
        Due
        Periods occurring subsequent to the Cut-off Date have been received by the
        related Servicer.

       

      On
        the
        Servicer Remittance Date and with respect to Ocwen by 12:00 noon New York
        time
        on the Servicer Remittance Date, each Servicer shall remit in immediately
        available funds to the Securities Administrator for deposit in the Distribution
        Account an amount equal to the aggregate amount of P&I Advances, if any, to
        be made in respect of the Mortgage Loans serviced by such Servicer for the
        related Distribution Date either (i) from its own funds or (ii) from the
        related
        Collection Account, to the extent of any Amounts Held For Future Distribution
        on
        deposit therein (in which case it will cause to be made an appropriate entry
        in
        the records of the related Collection Account that Amounts Held For Future
        Distribution have been, as permitted by this Section 5.03, used by the
        related Servicer in discharge of any such P&I Advance) or (iii) in the form
        of any combination of (i) and (ii) aggregating the total amount of P&I
        Advances to be made by the related Servicer with respect to the Mortgage
        Loans.
        In addition, the related Servicer shall have the right to reimburse itself
        for
        any outstanding P&I Advance made from its own funds from Amounts Held for
        Future Distribution. Any Amounts Held For Future Distribution used by the
        related Servicer to make P&I Advances or to reimburse itself for outstanding
        P&I Advances shall be appropriately reflected in such Servicer’s records and
        replaced by such Servicer by deposit in the related Collection Account no
        later
        than the close of business on the Servicer Remittance Date immediately following
        the Due Period or Prepayment Period for which such amounts relate. The
        Securities Administrator will notify the related Servicer and the Master
        Servicer by the close of business on the Business Day prior to the Distribution
        Date in the event that the amount remitted by the related Servicer to the
        Securities Administrator on such date is less than the P&I Advances required
        to be made by such Servicer for the related Distribution Date.

       

      (c) The
        obligation of each Servicer to make such P&I Advances with respect to the
        Mortgage Loans serviced by such Servicer is mandatory, notwithstanding any
        other
        provision of this Agreement but subject to (d) below, and, with respect to
        any
        Mortgage Loan or REO Property, shall continue until a Final Recovery
        Determination in connection therewith or the removal thereof from the Trust
        Fund
        pursuant to any applicable provision of this Agreement, except as otherwise
        provided in this Section.

       

      (d) Notwithstanding
        anything herein to the contrary, no P&I Advance or Servicing Advance shall
        be required to be made hereunder by any Servicer if such P&I Advance or
        Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
        Nonrecoverable Servicing Advance, respectively. The determination by the
        related
        Servicer that it has made a Nonrecoverable P&I Advance or a Nonrecoverable
        Servicing Advance or that any proposed P&I Advance or Servicing Advance, if
        made, would constitute a Nonrecoverable P&I Advance or Nonrecoverable
        Servicing Advance, respectively, shall be evidenced by a certification of
        a
        Servicing Officer delivered to the Master Servicer.

       

      (e) Subject
        to and in accordance with the provisions of Article VIII of this Agreement,
        in
        the event a Servicer fails to make any required P&I Advance, then the Master
        Servicer (in its capacity as successor servicer) or any other successor Servicer
        shall be required to make such P&I Advance on the Distribution Date on which
        the related Servicer was required to make such Advance, subject to its
        determination of recoverability. Subject to and in accordance with the
        provisions of Article VIII of this Agreement, in the event Wells Fargo fails
        to
        make any required P&I Advance, then the successor servicer shall be required
        to make such P&I Advance on the Distribution Date on which Wells Fargo was
        required to make such Advance, subject to its determination of recoverability.
        In addition, in the event that SPS fails to make a required P&I Advance
        under the Servicing Agreement, the Master Servicer (in its capacity as successor
        Servicer) will be required to make such P&I Advance on the Distribution Date
        on which such Servicer was required to make such P&I Advance, subject to its
        determination of recoverability.

       

      SECTION
        5.04  Allocation
        of Realized Losses.

       

      (a)  On
        or
        before 12:00 noon New York time on the 18th calendar day of each month, and
        if
        the 18th calendar day is not a Business Day, the immediately following Business
        Day, the related Servicer shall determine as to each Mortgage Loan serviced
        by
        such Servicer and any related REO Property and include in the monthly remittance
        report provided to the Master Servicer and the Securities Administrator
        (substantially in the form of Schedule 4 hereto), such information as is
        reasonably available to the related Servicer, as the Master Servicer or the
        Securities Administrator may reasonably require so as to enable the Master
        Servicer to master service the Mortgage Loans and oversee the servicing by
        the
        related Servicer and the Securities Administrator to fulfill its obligations
        hereunder with respect to securities and tax reporting, which shall include,
        but
        not be limited to: (i) the total amount of Realized Losses, if any, incurred
        in
        connection with any Final Recovery Determinations made during the related
        Prepayment Period; and (ii) the respective portions of such Realized Losses
        allocable to interest and allocable to principal. Prior to each Determination
        Date, the Servicers shall also determine as to each Mortgage Loan: (i) the
        total
        amount of Realized Losses, if any, incurred in connection with any Deficient
        Valuations made during the related Prepayment Period; and (ii) the total
        amount
        of Realized Losses, if any, incurred in connection with Debt Service Reductions
        in respect of Monthly Payments due during the related Due Period.

       

      (b)  All
        Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest
        pursuant to Section 5.04(c) of this Agreement for each Distribution Date
        will first, cause a reduction in Net Monthly Excess Cashflow for that
        Distribution Date and second, cause a reduction in the Overcollateralization
        Amount for that Distribution Date until reduced to zero. To the extent that
        Realized Losses on a Distribution Date cause the aggregate Certificate Principal
        Balance of the Offered Certificates (after taking into account all distributions
        on such Distribution Date) to exceed the aggregate Scheduled Principal Balance
        of the Mortgage Loans as of the last day of the related Due Period, such
        excess
        shall be allocated by the Securities Administrator as follows: first, to
        the
        Class M-5 Certificates, until the Certificate Principal Balance of the Class
        M-5
        Certificates has been reduced to zero; second, to the Class M-4 Certificates,
        until the Certificate Principal Balance of the Class M-4 Certificates has
        been
        reduced to zero; third, to the Class M-3 Certificates, until the Certificate
        Principal Balance of the Class M-3 Certificates has been reduced to zero;
        fourth, to the Class M-2 Certificates, until the Certificate Principal Balance
        of the Class M-2 Certificates has been reduced to zero; and fifth, to the
        Class
        M-1 Certificates, until the Certificate Principal Balance of the Class M-1
        Certificates has been reduced to zero. All Realized Losses to be allocated
        to
        the Certificate Principal Balances of all Classes on any Distribution Date
        shall
        be so allocated after the actual distributions to be made on such date as
        provided above. All references above to the Certificate Principal Balance
        of any
        Class of Certificates shall be to the Certificate Principal Balance of such
        Class immediately prior to the relevant Distribution Date, before reduction
        thereof by any Realized Losses, in each case to be allocated to such Class
        of
        Certificates, on such Distribution Date.

       

      Any
        allocation of Realized Losses to a Mezzanine Certificate on any Distribution
        Date shall be made by reducing the Certificate Principal Balance thereof
        by the
        amount so allocated. No allocations of any Realized Losses shall be made
        to the
        Certificate Principal Balances of the Class A Certificates or the Class P
        Certificates.

       

      As
        used
        herein, an allocation of a Realized Loss on a “pro rata basis” among two or more
        specified Classes of Certificates means an allocation on a pro rata basis,
        among
        the various Classes so specified, to each such Class of Certificates on the
        basis of their then outstanding Certificate Principal Balances prior to giving
        effect to distributions to be made on such Distribution Date. All Realized
        Losses and all other losses allocated to a Class of Certificates hereunder
        will
        be allocated among the, Certificates of such Class in proportion to the
        Percentage Interests evidenced thereby.

       

      In
        addition, in the event that a Servicer receives any Subsequent Recoveries,
        such
        Servicer shall deposit such funds into the related Collection Account pursuant
        to Section 3.08 of this Agreement or into the Custodial Account pursuant to
        the Servicing Agreement. If, after taking into account such Subsequent
        Recoveries the amount of a Realized Loss is reduced, the amount of such
        Subsequent Recoveries will be applied to increase the Certificate Principal
        Balance of the Mezzanine Certificates with the highest payment priority to
        which
        Realized Losses have been allocated, but not by more than the amount of Realized
        Losses previously allocated to that Class of Mezzanine Certificates pursuant
        to
        this Section 5.04 and not previously reimbursed to such Class of Mezzanine
        Certificates with Net Monthly Excess Cashflow pursuant to clause third
        of
        Section 5.01(a)(5) of this Agreement. The amount of any remaining
        Subsequent Recoveries will be applied to sequentially increase the Certificate
        Principal Balance of the Mezzanine Certificates, beginning with the Class
        of
        Mezzanine Certificates with the next highest payment priority, up to the
        amount
        of such Realized Losses previously allocated to such Class of Mezzanine
        Certificates pursuant to this Section 5.04 and not previously reimbursed to
        such Class of Mezzanine Certificates with Net Monthly Excess Cashflow pursuant
        to clause third
        of
        Section 5.01(a)(5). Holders of such Certificates will not be entitled to
        any payment in respect of current interest on the amount of such increases
        for
        any Interest Accrual Period preceding the Distribution Date on which such
        increase occurs. Any such increases shall be applied to the Certificate
        Principal Balance of each Mezzanine Certificate of such Class in accordance
        with
        its respective Percentage Interest.

       

      (c)  All
        Realized Losses on the Mortgage Loans shall be allocated by the Securities
        Administrator, on each Distribution Date to the following REMIC I Regular
        Interests in the specified percentages, as follows: first, to Uncertificated
        Interest payable to the REMIC I Regular Interest I-LTAA and REMIC I Regular
        Interest I-LTZZ up to an aggregate amount equal to the REMIC I Interest Loss
        Allocation Amount, 98.00% and 2.00%, respectively; second, to the Uncertificated
        Balances of the REMIC I Regular Interest I-LTAA and REMIC I Regular Interest
        I-LTZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation
        Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Balances
        of
        REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC
        I
        Regular Interest I-LTZZ, 98.00%, 1.00% and 1.00%, respectively, until the
        Uncertificated Balance of REMIC I Regular Interest I-LTM5 has been reduced
        to
        zero; fourth, to the Uncertificated Balances of REMIC I Regular Interest
        I-LTAA,
        REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98.00%,
        1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC
        I
        Regular Interest I-LTM4 has been reduced to zero; fifth, to the Uncertificated
        Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3
        and
        REMIC I Regular Interest I-LTZZ, 98.00%, 1.00% and 1.00%, respectively, until
        the Uncertificated Balance of REMIC I Regular Interest I-LTM3 has been reduced
        to zero; sixth, to the Uncertificated Balances of REMIC I Regular Interest
        I-LTAA, REMIC I Regular Interest I-LTM2 and REMIC I Regular Interest I-LTZZ,
        98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of
        REMIC
        I Regular Interest I-LTM2 has been reduced to zero; and seventh, to the
        Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
        Interest I-LTM1 and REMIC I Regular Interest I-LTZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC I Regular Interest
        I-LTM1 has been reduced to zero.

       

      SECTION
        5.05  Compliance
        with Withholding Requirements.

       

      Notwithstanding
        any other provision of this Agreement, the Trustee and the Securities
        Administrator shall comply with all federal withholding requirements respecting
        payments to Certificateholders of interest or original issue discount that
        the
        Trustee reasonably believes are applicable under the Code. The consent of
        Certificateholders shall not be required for such withholding. In the event
        the
        Securities Administrator does withhold any amount from interest or original
        issue discount payments or advances thereof to any Certificateholder pursuant
        to
        federal withholding requirements, the Securities Administrator shall indicate
        the amount withheld to such Certificateholders.

       

      SECTION
        5.06  Reports
        Filed with Securities and Exchange Commission.

       

      (a)  (i)Within
        15
        days after each Distribution Date (subject to permitted extensions under
        the
        Exchange Act), the Securities Administrator shall prepare and file on behalf
        of
        the Trust any Form 10-D required by the Exchange Act, in form and substance
        as
        required by the Exchange Act. The Securities Administrator shall file each
        Form
        10-D with a copy of the related Monthly Statement attached thereto. Any
        disclosure in addition to the Monthly Statement that is required to be included
        on Form 10-D (“Additional Form 10-D Disclosure”) shall be reported by the
        parties set forth on Exhibit G to the Depositor and the Securities Administrator
        and directed and approved by the Depositor pursuant to the following paragraph,
        and the Securities Administrator will have no duty or liability for any failure
        hereunder to determine or prepare any Additional Form 10-D Disclosure, except
        as
        set forth in the next paragraph.

       

      (ii)  As
        set
        forth on Exhibit G hereto, within 5 calendar days after the related Distribution
        Date, (A) certain parties to the ACE Securities Corp., Home Equity Loan Trust,
        Series 2006-SD1 transaction shall be required to provide to the Securities
        Administrator and the Depositor, to the extent known by a responsible officer
        thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
        upon by the Securities Administrator and such party, the form and substance
        of
        any Additional Form 10-D Disclosure, if applicable, together with an Additional
        Disclosure Notification in the form of Exhibit H hereto (an “Additional
        Disclosure Notification”) and (B) the Depositor will approve, as to form and
        substance, or disapprove, as the case may be, the inclusion of the Additional
        Form 10-D Disclosure on Form 10-D. The Depositor will be responsible for
        any
        reasonable fees and expenses assessed or incurred by the Securities
        Administrator in connection with including any Additional Form 10-D Disclosure
        on Form 10-D pursuant to this paragraph. 

       

      (iii)  After
        preparing the Form 10-D, the Securities Administrator shall upon request,
        forward electronically a copy of the Form 10-D to the Depositor (provided
        that
        such Form 10-D includes any Additional Form 10-D Disclosure). Within two
        (2)
        Business Days after receipt of such copy but no later than the 12th
        calendar
        day after the Distribution Date, the Depositor shall notify the Securities
        Administrator in writing (which may be furnished electronically) of any changes
        to or approval of such Form 10-D. In the absence of receipt of any written
        changes or approval by the due date specified herein, or if the Depositor
        does
        not request a copy of a Form 10-D, the Securities Administrator shall be
        entitled to assume that such Form 10-D is in final form and the Securities
        Administrator may proceed with the execution and filing of the Form 10-D.
        A duly
        authorized representative of the Master Servicer shall sign each Form 10-D.
        If a
        Form 10-D cannot be filed on time or if a previously filed Form 10-D needs
        to be
        amended, the Securities Administrator will follow the procedures set forth
        in
        Section 5.06(c)(ii). Promptly (but no later than 1 Business Day) after filing
        with the Commission, the Securities Administrator will make available on
        its
        internet website a final executed copy of each Form 10-D filed by the Securities
        Administrator. Each party to this Agreement acknowledges that the performance
        by
        the Securities Administrator and the Master Servicer of their duties under
        this
        Section 5.06(a) related to the timely preparation, execution and filing of
        Form
        10-D is contingent upon such parties strictly observing all applicable deadlines
        in the performance of their duties as set forth in this Agreement. Neither
        the
        Securities Administrator nor the Master Servicer shall have any liability
        for
        any loss, expense, damage, claim arising out of or with respect to any failure
        to properly prepare, execute and/or timely file such Form 10-D, where such
        failure results from the Securities Administrator’s inability or failure to
        receive, on a timely basis, any information from any other party hereto needed
        to prepare, arrange for execution or file such Form 10-D, not resulting from
        its
        own negligence, bad faith or willful misconduct.

       

      (b)  (i)Within
        four (4) Business Days after the occurrence of an event requiring disclosure
        on
        Form 8-K (each such event, a “Reportable Event”), and if requested by the
        Depositor, the Securities Administrator shall prepare and file on behalf
        of the
        Trust a Form 8-K, as required by the Exchange Act, provided
        that the
        Depositor shall file the initial Form 8-K in connection with the issuance
        of the
        Certificates. Any disclosure or information related to a Reportable Event
        or
        that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure
        Information”) shall be reported by the parties set forth on Exhibit G to the
        Depositor and the Securities Administrator and directed and approved by the
        Depositor pursuant to the following paragraph, and the Securities Administrator
        will have no duty or liability for any failure hereunder to determine or
        prepare
        any Form 8-K Disclosure Information or any Form 8-K, except as set forth
        in the
        next paragraph.

       

      (ii)  As
        set
        forth on Exhibit G hereto, for so long as the Trust is subject to the Exchange
        Act reporting requirements, no later than the close of business New York
        City
        time on the 2nd Business Day after the occurrence of a Reportable Event (i)
        the
        parties to the ACE Securities Corp., Home Equity Loan Trust, Series 2006-SD1
        transaction shall be required to provide to the Securities Administrator
        and the
        Depositor, to the extent known by a responsible officer thereof, in
        EDGAR-compatible form, or in such other form as otherwise agreed upon by
        the
        Securities Administrator and such party, the form and substance of any Form
        8-K
        Disclosure Information, if applicable, together with an Additional Disclosure
        Notification, and (ii) the Depositor will approve, as to form and substance,
        or
        disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
        Information. The Depositor will be responsible for any reasonable fees and
        expenses assessed or incurred by the Securities Administrator in connection
        with
        including any Form 8-K Disclosure Information on Form 8-K pursuant to this
        paragraph. 

       

      (iii)  After
        preparing the Form 8-K, the Securities Administrator shall upon request,
        forward
        electronically a copy of the Form 8-K to the Depositor. Promptly, but no
        later
        than the close of business on the third Business Day after the Reportable
        Event,
        the Depositor shall notify the Securities Administrator in writing (which
        may be
        furnished electronically) of any changes to or approval of such Form 8-K.
        In the
        absence of receipt of any written changes or approval by the third Business
        Day,
        or if the Depositor does not request a copy of a Form 8-K, the Securities
        Administrator shall be entitled to assume that such Form 8-K is in final
        form
        and the Securities Administrator may proceed with the execution and filing
        of
        the Form 8-K. A duly authorized representative of the Master Servicer shall
        sign
        each Form 8-K. If a Form 8-K cannot be filed on time or if a previously filed
        Form 8-K needs to be amended, the Securities Administrator will follow the
        procedures set forth in Section 5.06(c)(ii). Promptly (but no later than
        1
        Business Day) after filing with the Commission, the Securities Administrator
        will, make available on its internet website a final executed copy of each
        Form
        8-K that has been prepared and filed by the Securities Administrator. The
        parties to this Agreement acknowledge that the performance by the Master
        Servicer and the Securities Administrator of their duties under this Section
        5.06(b) related to the timely preparation, execution and filing of Form 8-K
        is
        contingent upon such parties strictly observing all applicable deadlines
        in the
        performance of their duties under this Agreement. Neither the Master Servicer
        nor the Securities Administrator shall have any liability for any loss, expense,
        damage, claim arising out of or with respect to any failure to properly prepare,
        execute and/or timely file such Form 8-K, where such failure results from
        the
        Securities Administrator’s inability or failure to receive, on a timely basis,
        any information from any other party hereto needed to prepare, execute or
        arrange for execution or file such Form 8-K, not resulting from its own
        negligence, bad faith or willful misconduct.

       

      (c)  (i)On
        or
        prior to January 30th of the first year in which the Securities Administrator
        is
        able to do so under applicable law, the Securities Administrator shall prepare
        and file a Form 15 suspension notification relating to the automatic suspension
        of reporting in respect of the Trust under the Exchange Act. 

       

      (ii)  In
        the
        event that the Securities Administrator is unable to timely file with the
        Commission all or any required portion of any Form 8-K, 10-D or 10-K required
        to
        be filed by this Agreement because required disclosure information was either
        not delivered to it or delivered to it after the delivery deadlines set forth
        in
        this Agreement or for any other reason, the Securities Administrator will
        promptly notify electronically the Depositor. In the case of Form 10-D and
        10-K,
        the parties to this Agreement will cooperate to prepare and file a Form 12b-25
        and a 10-DA and 10-KA, as applicable, pursuant to Rule 12b-25 of the Exchange
        Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
        of
        all required Form 8-K Disclosure Information and upon the approval and direction
        of the Depositor, include such disclosure information on the next Form 10-D.
        In
        the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
        in connection with any Additional Form 10-D Disclosure (other than for the
        purpose of restating any Monthly Report), any Additional Form 10-K Disclosure
        or
        any Form 8-K Disclosure Information or any amendment to such disclosure,
        the
        Securities Administrator will notify electronically the Depositor only if
        the
        amendment pertains to an additional reporting item being revised and/or amended
        on such form, but not if an amendment is being filed as a result of a Remittance
        Report revision, and the Depositor will cooperate with the Securities
        Administrator in preparing any necessary 8-KA, 10-DA or 10-KA. Any Form 15,
        Form
        12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a duly
        authorized representative, or senior officer in charge of the master servicing,
        as applicable, of the Master Servicer. The parties to this Agreement acknowledge
        that the performance by the Securities Administrator and the Master Servicer
        of
        their duties under this Section 5.06(c) related to the timely preparation,
        execution and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K,
        10-D or 10-K is contingent upon each such party performing its duties under
        this
        Agreement. Neither the Master Servicer nor the Securities Administrator shall
        have any liability for any loss, expense, damage, claim arising out of or
        with
        respect to any failure to properly prepare, execute and/or timely file any
        such
        Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where
        such
        failure results from the Securities Administrator’s inability or failure to
        receive, on a timely basis, any information from any other party hereto needed
        to prepare, execute or arrange for execution or file such Form 15, Form 12b-25
        or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its own
        negligence, bad faith or willful misconduct.

       

      (d)  (i)On
        or
        prior to the 90th
        day
        after the end of each fiscal year of the Trust or such earlier date as may
        be
        required by the Exchange Act (the “10-K Filing Deadline”) (it being understood
        that the fiscal year for the Trust ends on December 31st
        of each
        year), commencing in March 2007, the Securities Administrator shall prepare
        and
        file on behalf of the Trust a Form 10-K, in form and substance as required
        by
        the Exchange Act. Each such Form 10-K shall include the following items,
        in each
        case to the extent they have been delivered to the Securities Administrator
        within the applicable time frames set forth in this Agreement, (i) an annual
        compliance statement for each Servicer, each Additional Servicer, the Master
        Servicer, the Securities Administrator and any Servicing Function Participant
        engaged by such parties (each, a “Reporting Servicer”) as described under
        Section 3.17 and Section 4.15, (ii)(A) the annual reports on assessment of
        compliance with servicing criteria for each Reporting Servicer, as described
        under Section 3.18 and Section 4.16, and in such other agreements and (B)
        if
        each Reporting Servicer’s report on assessment of compliance with servicing
        criteria described under Section 3.18 and Section 4.16 identifies any material
        instance of noncompliance, disclosure identifying such instance of
        noncompliance, or if each Reporting Servicer’s report on assessment of
        compliance with servicing criteria described under Section 3.18 and Section
        4.16
        is not included as an exhibit to such Form 10-K, disclosure that such report
        is
        not included and an explanation why such report is not included, (iii)(A)
        the
        registered public accounting firm attestation report for each Reporting
        Servicer, as described under Section 3.18 and Section 4.17, or in such other
        agreement and (B) if any registered public accounting firm attestation report
        described under Section 3.18 and Section 4.17 identifies any material instance
        of noncompliance, disclosure identifying such instance of noncompliance,
        or if
        any such registered public accounting firm attestation report is not included
        as
        an exhibit to such Form 10-K, disclosure that such report is not included
        and an
        explanation why such report is not included, and (iv) a Sarbanes-Oxley
        Certification as described in Section 3.20 and Section 4.18 (provided, however,
        that the Securities Administrator, at its discretion, may omit from the Form
        10-K any annual compliance statement, assessment of compliance or attestation
        report that is not required to be filed with such Form 10-K pursuant to
        Regulation AB). Any disclosure or information in addition to (i) through
        (iv)
        above that is required to be included on Form 10-K (“Additional Form 10-K
        Disclosure”) shall be reported by the parties set forth on Exhibit G to the
        Depositor and the Securities Administrator and directed and approved by the
        Depositor pursuant to the following paragraph, and the Securities Administrator
        will have no duty or liability for any failure hereunder to determine or
        prepare
        any Additional Form 10-K Disclosure, except as set forth in the next
        paragraph.

       

      (ii)  As
        set
        forth on Exhibit G hereto, no later than March 15 of each year that the Trust
        is
        subject to the Exchange Act reporting requirements, commencing in 2007, (i)
        the
        parties to the ACE Securities Corp., Home Equity Loan Trust, Series 2006-SD1
        transaction shall be required to provide to the Securities Administrator
        and the
        Depositor, to the extent known by a responsible officer thereof, in
        EDGAR-compatible form, or in such other form as otherwise agreed upon by
        the
        Securities Administrator and such party, the form and substance of any
        Additional Form 10-K Disclosure, if applicable, together with an Additional
        Disclosure Notification, and (ii) the Depositor will approve, as to form
        and
        substance, or disapprove, as the case may be, the inclusion of the Additional
        Form 10-K Disclosure on Form 10-K. The Depositor will be responsible for
        any
        reasonable fees and expenses assessed or incurred by the Securities
        Administrator in connection with including any Additional Form 10-K Disclosure
        on Form 10-K pursuant to this paragraph.

       

      (iii)  After
        preparing the Form 10-K, the Securities Administrator shall upon request,
        forward electronically a copy of the Form 10-K to the Depositor. Within three
        (3) Business Days after receipt of such copy, but in no event later than
        March
        25th
        of each
        year that the Trust is subject to the Exchange Act reporting requirements,
        the
        Depositor shall notify the Securities Administrator in writing (which may
        be
        furnished electronically) of any changes to or approval of such Form 10-K.
        In
        the absence of receipt of any written changes or approval by March 25th,
        or if
        the Depositor does not request a copy of a Form 10-K, the Securities
        Administrator shall be entitled to assume that such Form 10-K is in final
        form
        and the Securities Administrator may proceed with the execution and filing
        of
        the Form 10-K. A senior officer of the Master Servicer in charge of the master
        servicing function shall sign the Form 10-K. If a Form 10-K cannot be filed
        on
        time or if a previously filed Form 10-K needs to be amended, the Securities
        Administrator will follow the procedures set forth in Section 5.06(c)(ii).
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Securities Administrator will make available on its internet website
        a final
        executed copy of each Form 10-K filed by the Securities Administrator. The
        parties to this Agreement acknowledge that the performance by the Master
        Servicer and the Securities Administrator of their respective duties under
        this
        Section 5.06(d) related to the timely preparation, execution and filing of
        Form
        10-K is contingent upon such parties (and any Additional Servicer or Servicing
        Function Participant) strictly observing all applicable deadlines in the
        performance of their duties under this Section 5.06(d), Section 3.17, Section
        3.18, Section 3.19, Section 4.16, Section 4.17 and Section 4.18. Neither
        the
        Master Servicer nor the Securities Administrator shall have any liability
        for
        any loss, expense, damage or claim arising out of or with respect to any
        failure
        to properly prepare, execute and/or timely file such Form 10-K, where such
        failure results from the Securities Administrator’s inability or failure to
        receive, on a timely basis, any information from any other party hereto needed
        to prepare, arrange for execution or file such Form 10-K, not resulting from
        its
        own negligence, bad faith or willful misconduct.

       

      (e)  The
        Securities Administrator shall indemnify and hold harmless the Depositor,
        the
        Trustee and their respective officers, directors and Affiliates from and
        against
        any losses, damages, penalties, fines, forfeitures, reasonable and necessary
        legal fees and related costs, judgments and other costs and expenses arising
        out
        of or based upon a breach of the Master Servicer’s obligations under this
        Section 5.06 or the Master Servicer’s negligence, bad faith or willful
        misconduct in connection therewith. 

       

      (f)  Notwithstanding
        the provisions of Section 12.01, this Section 5.06 may be amended without
        the
        consent of the Certificateholders.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        VI  

       

      THE
        CERTIFICATES

       

      SECTION
        6.01  The
        Certificates.

       

      (a)  The
        Certificates in the aggregate will represent the entire beneficial ownership
        interest in the Mortgage Loans and all other assets included in REMIC I and
        REMIC II.

       

      The
        Certificates will be substantially in the forms annexed hereto as Exhibits
        A-1
        through A-6. The Certificates of each Class will be issuable in registered
        form
        only, in denominations of authorized Percentage Interests as described in
        the
        definition thereof. Each Certificate will share ratably in all rights of
        the
        related Class.

       

      Upon
        original issue, the Certificates shall be executed and authenticated by the
        Securities Administrator and delivered by the Trustee to and upon the written
        order of the Depositor. The Certificates shall be executed by manual or
        facsimile signature on behalf of the Trust by the Securities Administrator
        by an
        authorized signatory. Certificates bearing the manual or facsimile signatures
        of
        individuals who were at any time the proper officers of the Securities
        Administrator shall bind the Trust, notwithstanding that such individuals
        or any
        of them have ceased to hold such offices prior to the authentication and
        delivery of such Certificates or did not hold such offices at the date of
        such
        Certificates. No Certificate shall be entitled to any benefit under this
        Agreement or be valid for any purpose, unless there appears on such Certificate
        a certificate of authentication substantially in the form provided herein
        executed by the Securities Administrator by manual signature, and such
        certificate of authentication shall be conclusive evidence, and the only
        evidence, that such Certificate has been duly authenticated and delivered
        hereunder. All Certificates shall be dated the date of their
        authentication.

       

      (b)  The
        Class
        A Certificates and the Mezzanine Certificates shall initially be issued as
        one
        or more Certificates held by the Book-Entry Custodian or, if appointed to
        hold
        such Certificates as provided below, the Depository and registered in the
        name
        of the Depository or its nominee and, except as provided below, registration
        of
        such Certificates may not be transferred by the Securities Administrator
        except
        to another Depository that agrees to hold such Certificates for the respective
        Certificate Owners with Ownership Interests therein. The Certificate Owners
        shall hold their respective Ownership Interests in and to such Certificates
        through the book-entry facilities of the Depository and, except as provided
        below, shall not be entitled to definitive, fully registered Certificates
        (“Definitive Certificates”) in respect of such Ownership Interests. All
        transfers by Certificate Owners of their respective Ownership Interests in
        the
        Book-Entry Certificates shall be made in accordance with the procedures
        established by the Depository Participant or brokerage firm representing
        such
        Certificate Owner. Each Depository Participant shall only transfer the Ownership
        Interests in the Book-Entry Certificates of Certificate Owners it represents
        or
        of brokerage firms for which it acts as agent in accordance with the
        Depository’s normal procedures. The Securities Administrator is hereby initially
        appointed as the Book-Entry Custodian and hereby agrees to act as such in
        accordance herewith and in accordance with the agreement that it has with
        the
        Depository authorizing it to act as such. The Book-Entry Custodian may, and,
        if
        it is no longer qualified to act as such, the Book-Entry Custodian shall,
        appoint, by a written instrument delivered to the Depositor, the Servicers
        and,
        if the Trustee is not the Book-Entry Custodian, the Trustee, any other transfer
        agent (including the Depository or any successor Depository) to act as
        Book-Entry Custodian under such conditions as the predecessor Book-Entry
        Custodian and the Depository or any successor Depository may prescribe, provided
        that the predecessor Book-Entry Custodian shall not be relieved of any of
        its
        duties or responsibilities by reason of any such appointment of other than
        the
        Depository. If the Securities Administrator resigns or is removed in accordance
        with the terms hereof, the successor Securities Administrator or, if it so
        elects, the Depository shall immediately succeed to its predecessor’s duties as
        Book-Entry Custodian. The Depositor shall have the right to inspect, and
        to
        obtain copies of, any Certificates held as Book-Entry Certificates by the
        Book-Entry Custodian.

       

      (c)  The
        Class
        CE-1 Certificates and the Class CE-2 Certificates initially offered and sold
        in
        offshore transactions in reliance on Regulation S shall be issued in the
        form of
        a temporary global certificate in definitive, fully registered form (each,
        a
“Regulation S Temporary Global Certificate”), which shall be deposited with the
        Securities Administrator or an agent of the Securities Administrator as
        custodian for the Depository and registered in the name of Cede & Co. as
        nominee of the Depository for the account of designated agents holding on
        behalf
        of Euroclear or Clearstream. Beneficial interests in each Regulation S Temporary
        Global Certificate may be held only through Euroclear or Clearstream; provided,
        however, that such interests may be exchanged for interests in a Definitive
        Certificate in accordance with the requirements described in Section 6.02.
        After the expiration of the Release Date, a beneficial interest in a Regulation
        S Temporary Global Certificate may be exchanged for a beneficial interest
        in the
        related permanent global certificate of the same Class (each, a “Regulation S
        Permanent Global Certificate”), in accordance with the procedures set forth in
        Section 6.02. Each Regulation S Permanent Global Certificate shall be
        deposited with the Securities Administrator or an agent of the Securities
        Administrator as custodian for the Depository and registered in the name
        of Cede
& Co. as nominee of the Depository.

       

      (d)  The
        Class
        CE-1, Class CE-2 and Class P Certificates offered and sold to Qualified
        Institutional Buyers (“QIBs”) in reliance on Rule 144A under the Securities Act
        (“Rule 144A”) will be issued in the form of Definitive
        Certificates.

       

      (e)  The
        Trustee, the Servicers, the Securities Administrator, the Master Servicer
        and
        the Depositor may for all purposes (including the making of payments due
        on the
        Book-Entry Certificates and global certificates) deal with the Depository
        as the
        authorized representative of the Certificate Owners with respect to the
        Book-Entry Certificates for the purposes of exercising the rights of
        Certificateholders hereunder. The rights of Certificate Owners with respect
        to
        the Book-Entry Certificates and global certificates shall be limited to those
        established by law and agreements between such Certificate Owners and the
        Depository Participants and brokerage firms representing such Certificate
        Owners. Multiple requests and directions from, and votes of, the Depository
        as
        Holder of the Book-Entry Certificates and global certificates with respect
        to
        any particular matter shall not be deemed inconsistent if they are made with
        respect to different Certificate Owners. The Securities Administrator may
        establish a reasonable record date in connection with solicitations of consents
        from or voting by Certificateholders and shall give notice to the Depository
        of
        such record date.

       

      If
        (i)(A)
        the Depositor advises the Securities Administrator in writing that the
        Depository is no longer willing or able to properly discharge its
        responsibilities as Depository, and (B) the Depositor is unable to locate
        a
        qualified successor, (ii) the Depositor at its option advises the Securities
        Administrator in writing that it elects to terminate the book-entry system
        through the Depository or (iii) after the occurrence of a Servicer Event
        of
        Default, Certificate Owners representing in the aggregate not less than 51%
        of
        the Ownership Interests of the Book-Entry Certificates advise the Securities
        Administrator through the Depository, in writing, that the continuation of
        a
        book-entry system through the Depository is no longer in the best interests
        of
        the Certificate Owners, the Securities Administrator shall notify all
        Certificate Owners, through the Depository, of the occurrence of any such
        event
        and of the availability of Definitive Certificates to Certificate Owners
        requesting the same. The Holder of a Regulation S Permanent Global Certificate
        may request that its interest in a global certificate be exchanged for a
        Definitive Certificate. Upon surrender to the Securities Administrator of
        the
        Book-Entry Certificates or Regulation S Permanent Global Certificate by the
        Book-Entry Custodian or the Depository or the Regulation S Permanent Global
        Certificate by the Depository, as applicable, accompanied by registration
        instructions from the Depository for registration of transfer, the Securities
        Administrator shall cause the Definitive Certificates to be issued. Such
        Definitive Certificates will be issued in minimum denominations of $10,000
        except that any beneficial ownership that was represented by a Book-Entry
        Certificate or a Regulation S Permanent Global Certificate, as applicable,
        in an
        amount less than $10,000 immediately prior to the issuance of a Definitive
        Certificate shall be issued in a minimum denomination equal to the amount
        represented by such Book-Entry Certificate or Regulation S Permanent Global
        Certificate, as applicable. None of the Depositor, the Servicers, the Master
        Servicer, the Securities Administrator or the Trustee shall be liable for
        any
        delay in the delivery of such instructions and may conclusively rely on,
        and
        shall be protected in relying on, such instructions. Upon the issuance of
        Definitive Certificates all references herein to obligations imposed upon
        or to
        be performed by the Depository shall be deemed to be imposed upon and performed
        by the Securities Administrator, to the extent applicable with respect to
        such
        Definitive Certificates, and the Securities Administrator shall recognize
        the
        Holders of the Definitive Certificates as Certificateholders
        hereunder.

       

      SECTION
        6.02  Registration
        of Transfer and Exchange of Certificates.

       

      (a)  The
        Securities Administrator shall cause to be kept at one of the offices or
        agencies to be appointed by the Securities Administrator in accordance with
        the
        provisions of Section 9.11 of this Agreement, a Certificate Register for
        the Certificates in which, subject to such reasonable regulations as it may
        prescribe, the Securities Administrator shall provide for the registration
        of
        Certificates and of transfers and exchanges of Certificates as herein
        provided.

       

      (b)  No
        transfer of any Class CE-1 Certificate, Class CE-2 Certificate, Class P
        Certificate or Residual Certificate shall be made unless that transfer is
        made
        pursuant to an effective registration statement under the Securities Act
        of
        1933, as amended (the “Securities Act”), and effective registration or
        qualification under applicable state securities laws, or is made in a
        transaction that does not require such registration or qualification. In
        the
        event that such a transfer of a Class CE-1 Certificate, Class CE-2 Certificate,
        Class P Certificate or Residual Certificate is to be made without registration
        or qualification (other than in connection with the initial transfer of any
        such
        Certificate by the Depositor), the Securities Administrator shall require
        receipt of: (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A under the Securities Act, written certifications from the Certificateholder
        desiring to effect the transfer and from such Certificateholder’s prospective
        transferee, substantially in the form attached hereto as Exhibit B-1; (ii)
        if
        such transfer is purportedly being made in reliance upon Rule 501(a) under
        the
        Securities Act, written certifications from the Certificateholder desiring
        to
        effect the transfer and from such Certificateholder’s prospective transferee,
        substantially in the form attached hereto as Exhibit B-2; (iii) with respect
        to
        any Class CE-1, Class CE-2 or Class P Certificate, if such transfer is
        purportedly being made in reliance or Regulation S, a written certification
        from
        the prospective transferee, substantially in the form of Exhibit B-1 and
        (iv) in
        all other cases, an Opinion of Counsel satisfactory to the Securities
        Administrator that such transfer may be made without such registration or
        qualification (which Opinion of Counsel shall not be an expense of the Trust
        Fund or of the Depositor, the Trustee, the Master Servicer, the Securities
        Administrator or the Servicers), together with copies of the written
        certification(s) of the Certificateholder desiring to effect the transfer
        and/or
        such Certificateholder’s prospective transferee upon which such Opinion of
        Counsel is based, if any. Neither of the Depositor nor the Securities
        Administrator is obligated to register or qualify any such Certificates under
        the Securities Act or any other securities laws or to take any action not
        otherwise required under this Agreement to permit the transfer of such
        Certificates without registration or qualification. Any Certificateholder
        desiring to effect the transfer of any such Certificate shall, and does hereby
        agree to, indemnify the Trustee, the Depositor, the Master Servicer, the
        Securities Administrator and the Servicers against any liability that may
        result
        if the transfer is not so exempt or is not made in accordance with such federal
        and state laws.

       

      A
        holder
        of a beneficial interest in a Regulation S Temporary Global Certificate must
        provide Euroclear or Clearstream, as the case may be, with a certificate
        in the
        form of Annex A to Exhibit B-1 hereto certifying that the beneficial owner
        of
        the interest in such Global Certificate is not a U.S. Person (as defined
        in
        Regulation S), and Euroclear or Clearstream, as the case may be, must provide
        to
        the Trustee and Securities Administrator a certificate in the form of Exhibit
        B-1 hereto prior to (i) the payment of interest or principal with respect
        to
        such holder’s beneficial interest in the Regulation S Temporary Global
        Certificate and (ii) any exchange of such beneficial interest for a beneficial
        interest in a Regulation S Permanent Global Certificate.

       

      (c)  No
        transfer of a Class CE-1 Certificate, Class CE-2 Certificate, Class P
        Certificate or Residual Certificate or any interest therein shall be made
        to any
        Plan subject to ERISA or Section 4975 of the Code, any Person acting,
        directly or indirectly, on behalf of any such Plan or any Person acquiring
        such
        Certificates with “Plan Assets” of a Plan within the meaning of the Department
        of Labor regulation promulgated at 29 C.F.R. § 2510.3-101 (“Plan Assets”) unless
        the Securities Administrator is provided with an Opinion of Counsel on which
        the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        and
        the Servicers may rely, which establishes to the satisfaction of the Securities
        Administrator that the purchase of such Certificates is permissible under
        applicable law, will not constitute or result in any prohibited transaction
        under ERISA or Section 4975 of the Code and will not subject the Depositor,
        the Servicers, the Trustee, the Master Servicer, the Securities Administrator
        or
        the Trust Fund to any obligation or liability (including obligations or
        liabilities under ERISA or Section 4975 of the Code) in addition to those
        undertaken in this Agreement, which Opinion of Counsel shall not be an expense
        of the Depositor, any Servicer, the Trustee, the Master Servicer, the Securities
        Administrator or the Trust Fund. An Opinion of Counsel will not be required
        in
        connection with the initial transfer of any such Certificate by the Depositor
        to
        an affiliate of the Depositor (in which case, the Depositor or any affiliate
        thereof shall have deemed to have represented that such affiliate is not
        a Plan
        or a Person investing Plan Assets) and the Securities Administrator shall
        be
        entitled to conclusively rely upon a representation (which, upon the request
        of
        the Securities Administrator, shall be a written representation) from the
        Depositor of the status of such transferee as an affiliate of the
        Depositor.

       

      Each
        holder of a Mezzanine Certificate or any interest therein shall be deemed
        to
        have represented, by virtue of its acquisition or holding of that Certificate
        or
        interest therein, that either (i) it is not a plan investor or (ii)(1) it
        is an
        insurance company, (2) the source of the funds used to acquire or hold the
        Certificate or interest therein is an “insurance company general account,” as
        such term is defined in PTCE 95-60, and (3) the conditions in Sections I
        and III
        of PTCE 95-60 have been satisfied.

       

      If
        any
        Certificate or any interest therein is acquired or held in violation of the
        conditions described in this Section 6.02(c), the next preceding permitted
        beneficial owner will be treated as the beneficial owner of that Certificate,
        retroactive to the date of transfer to the purported beneficial owner. Any
        purported beneficial owner whose acquisition or holding of any Certificate
        or
        interest therein was effected in violation of the conditions described in
        this
        Section 6.02(c) shall indemnify and hold harmless the Depositor, the
        Trustee, the Servicers, the Master Servicer, the Securities Administrator
        and
        the Trust Fund from and against any and all liabilities, claims, costs or
        expenses incurred by those parties as a result of that acquisition or
        holding.

       

      (d)  (i)
        Each
        Person who has or who acquires any Ownership Interest in a Residual Certificate
        shall be deemed by the acceptance or acquisition of such Ownership Interest
        to
        have agreed to be bound by the following provisions and to have irrevocably
        authorized the Securities Administrator or its designee under clause (iii)(A)
        below to deliver payments to a Person other than such Person and to negotiate
        the terms of any mandatory sale under clause (iii)(B) below and to execute
        all
        instruments of Transfer and to do all other things necessary in connection
        with
        any such sale. The rights of each Person acquiring any Ownership Interest
        in a
        Residual Certificate are expressly subject to the following
        provisions:

       

      (A) Each
        Person holding or acquiring any Ownership Interest in a Residual Certificate
        shall be a Permitted Transferee and shall promptly notify the Securities
        Administrator of any change or impending change in its status as a Permitted
        Transferee.

       

      (B) In
        connection with any proposed Transfer of any Ownership Interest in a Residual
        Certificate, the Securities Administrator shall require delivery to it, and
        shall not register the Transfer of any Residual Certificate until its receipt
        of, an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the
        form attached hereto as Exhibit B-3) from the proposed Transferee, in form
        and
        substance satisfactory to the Securities Administrator, representing and
        warranting, among other things, that such Transferee is a Permitted Transferee,
        that it is not acquiring its Ownership Interest in the Residual Certificate
        that
        is the subject of the proposed Transfer as a nominee, trustee or agent for
        any
        Person that is not a Permitted Transferee, that for so long as it retains
        its
        Ownership Interest in a Residual Certificate, it will endeavor to remain
        a
        Permitted Transferee, and that it has reviewed the provisions of this
        Section 6.02(d) and agrees to be bound by them.

       

      (C) Notwithstanding
        the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
        under clause (B) above, if an authorized officer of the Securities Administrator
        who is assigned to this transaction has actual knowledge that the proposed
        Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
        in a Residual Certificate to such proposed Transferee shall be
        effected.

       

      (D) Each
        Person holding or acquiring any Ownership Interest in a Residual Certificate
        shall agree (x) to require a Transfer Affidavit and Agreement from any other
        Person to whom such Person attempts to transfer its Ownership Interest in
        a
        Residual Certificate and (Y) not to transfer its Ownership Interest unless
        it
        provides a Transferor Affidavit (in the form attached hereto as Exhibit B-2)
        to
        the Securities Administrator stating that, among other things, it has no
        actual
        knowledge that such other Person is not a Permitted Transferee.

       

      (E) Each
        Person holding or acquiring an Ownership Interest in a Residual Certificate,
        by
        purchasing an Ownership Interest in such Certificate, agrees to give the
        Securities Administrator written notice that it is a “pass-through interest
        holder” within the meaning of temporary Treasury regulation
        Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership
        Interest in a Residual Certificate, if it is, or is holding an Ownership
        Interest in a Residual Certificate on behalf of, a “pass-through interest
        holder.”

       

      (ii)  The
        Securities Administrator will register the Transfer of any Residual Certificate
        only if it shall have received the Transfer Affidavit and Agreement and all
        of
        such other documents as shall have been reasonably required by the Securities
        Administrator as a condition to such registration. In addition, no Transfer
        of a
        Residual Certificate shall be made unless the Securities Administrator shall
        have received a representation letter from the Transferee of such Certificate
        to
        the effect that such Transferee is a Permitted Transferee.

       

      (iii)  (A)
        If
        any purported Transferee shall become a Holder of a Residual Certificate
        in
        violation of the provisions of this Section 6.02(d), then the last
        preceding Permitted Transferee shall be restored, to the extent permitted
        by
        law, to all rights as holder thereof retroactive to the date of registration
        of
        such Transfer of such Residual Certificate. The Securities Administrator
        shall
        be under no liability to any Person for any registration of Transfer of a
        Residual Certificate that is in fact not permitted by this Section 6.02(d)
        or for making any payments due on such Certificate to the holder thereof
        or for
        taking any other action with respect to such holder under the provisions
        of this
        Agreement.

       

      (B) If
        any
        purported Transferee shall become a holder of a Residual Certificate in
        violation of the restrictions in this Section 6.02(d) and to the extent
        that the retroactive restoration of the rights of the holder of such Residual
        Certificate as described in clause (iii)(A) above shall be invalid, illegal
        or
        unenforceable, then the Securities Administrator shall have the right, without
        notice to the holder or any prior holder of such Residual Certificate, to
        sell
        such Residual Certificate to a purchaser selected by the Securities
        Administrator on such terms as the Securities Administrator may choose. Such
        purported Transferee shall promptly endorse and deliver each Residual
        Certificate in accordance with the instructions of the Securities Administrator.
        Such purchaser may be the Securities Administrator itself or any Affiliate
        of
        the Securities Administrator. The proceeds of such sale, net of the commissions
        (which may include commissions payable to the Securities Administrator or
        its
        Affiliates), expenses and taxes due, if any, will be remitted by the Securities
        Administrator to such purported Transferee. The terms and conditions of any
        sale
        under this clause (iii)(B) shall be determined in the sole discretion of
        the
        Securities Administrator, and the Securities Administrator shall not be liable
        to any Person having an Ownership Interest in a Residual Certificate as a
        result
        of its exercise of such discretion.

       

      (iv)  The
        Securities Administrator shall make available to the Internal Revenue Service
        and those Persons specified by the REMIC Provisions all information necessary
        to
        compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
        in a Residual Certificate to any Person who is a Disqualified Organization,
        including the information described in Treasury regulations sections
        1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
        such Residual Certificate and (B) as a result of any regulated investment
        company, real estate investment trust, common trust fund, partnership, trust,
        estate or organization described in Section 1381 of the Code that holds an
        Ownership Interest in a Residual Certificate having as among its record holders
        at any time any Person which is a Disqualified Organization. Reasonable
        compensation for providing such information may be charged or collected by
        the
        Securities Administrator.

       

      (v)  The
        provisions of this Section 6.02(d) set forth prior to this subsection (v)
        may be modified, added to or eliminated, provided that there shall have been
        delivered to the Securities Administrator at the expense of the party seeking
        to
        modify, add to or eliminate any such provision the following:

       

      (A) written
        notification from each Rating Agency to the effect that the modification,
        addition to or elimination of such provisions will not cause such Rating
        Agency
        to downgrade its then-current ratings of any Class of Certificates;
        and

       

      (B) an
        Opinion of Counsel, in form and substance satisfactory to the Securities
        Administrator, to the effect that such modification of, addition to or
        elimination of such provisions will not cause any Trust REMIC to cease to
        qualify as a REMIC and will not cause any Trust REMIC, as the case may be,
        to be
        subject to an entity-level tax caused by the Transfer of any Residual
        Certificate to a Person that is not a Permitted Transferee or a Person other
        than the prospective transferee to be subject to a REMIC-tax caused by the
        Transfer of a Residual Certificate to a Person that is not a Permitted
        Transferee.

       

      (e)  Subject
        to the preceding subsections, upon surrender for registration of transfer
        of any
        Certificate at any office or agency of the Securities Administrator maintained
        for such purpose pursuant to Section 9.11 of this Agreement, the Securities
        Administrator shall execute, authenticate and deliver, in the name of the
        designated Transferee or Transferees, one or more new Certificates of the
        same
        Class of a like aggregate Percentage Interest.

       

      (f)  At
        the
        option of the Holder thereof, any Certificate may be exchanged for other
        Certificates of the same Class with authorized denominations and a like
        aggregate Percentage Interest, upon surrender of such Certificate to be
        exchanged at any office or agency of the Securities Administrator maintained
        for
        such purpose pursuant to Section 9.11 of this Agreement. Whenever any
        Certificates are so surrendered for exchange, the Securities Administrator
        shall
        execute, authenticate and deliver, the Certificates which the Certificateholder
        making the exchange is entitled to receive. Every Certificate presented or
        surrendered for transfer or exchange shall (if so required by the Securities
        Administrator) be duly endorsed by, or be accompanied by a written instrument
        of
        transfer in the form satisfactory to the Securities Administrator duly executed
        by, the Holder thereof or his attorney duly authorized in writing. In addition,
        with respect to each Class R Certificate, the holder thereof may exchange,
        in
        the manner described above, such Class R Certificate for two separate
        certificates, each representing such holder's respective Percentage Interest
        in
        the Class R-I Interest and the Class R-II Interest, respectively, in each
        case
        that was evidenced by the Class R Certificate being exchanged.

       

      (g)  No
        service charge to the Certificateholders shall be made for any transfer or
        exchange of Certificates, but the Securities Administrator may require payment
        of a sum sufficient to cover any tax or governmental charge that may be imposed
        in connection with any transfer or exchange of Certificates.

       

      (h)  All
        Certificates surrendered for transfer and exchange shall be canceled and
        destroyed by the Securities Administrator in accordance with its customary
        procedures.

       

      SECTION
        6.03  Mutilated,
        Destroyed, Lost or Stolen Certificates.

       

      If
        (i)
        any mutilated Certificate is surrendered to the Securities Administrator,
        or the
        Securities Administrator receives evidence to its satisfaction of the
        destruction, loss or theft of any Certificate and of the ownership thereof,
        and
        (ii) there is delivered to the Securities Administrator such security or
        indemnity as may be required by it to save it harmless, then, in the absence
        of
        actual knowledge by the Securities Administrator that such Certificate has
        been
        acquired by a protected purchaser, the Securities Administrator, shall execute,
        authenticate and deliver, in exchange for or in lieu of any such mutilated,
        destroyed, lost or stolen Certificate, a new Certificate of the same Class
        and
        of like denomination and Percentage Interest. Upon the issuance of any new
        Certificate under this Section, the Securities Administrator may require
        the
        payment of a sum sufficient to cover any tax or other governmental charge
        that
        may be imposed in relation thereto and any other expenses (including the
        fees
        and expenses of the Securities Administrator) connected therewith. Any
        replacement Certificate issued pursuant to this Section shall constitute
        complete and indefeasible evidence of ownership in the applicable REMIC created
        hereunder, as if originally issued, whether or not the lost, stolen or destroyed
        Certificate shall be found at any time.

       

      SECTION
        6.04  Persons
        Deemed Owners.

       

      The
        Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        any Certificate is registered as the owner of such Certificate for the purpose
        of receiving distributions pursuant to Section 5.01 and for all other
        purposes whatsoever, and none of the Depositor, the Servicers, the Trustee,
        the
        Master Servicer, the Securities Administrator or any agent of any of them
        shall
        be affected by notice to the contrary.

       

      SECTION
        6.05  Certain
        Available Information.

       

      On
        or
        prior to the date of the first sale of any Class CE-1 Certificate, Class
        CE-2
        Certificate, Class P Certificate or Residual Certificate to an Independent
        third
        party, the Depositor shall provide to the Securities Administrator ten copies
        of
        any private placement memorandum or other disclosure document used by the
        Depositor in connection with the offer and sale of such Certificate. In
        addition, if any such private placement memorandum or disclosure document
        is
        revised, amended or supplemented at any time following the delivery thereof
        to
        the Securities Administrator, the Depositor promptly shall inform the Securities
        Administrator of such event and shall deliver to the Securities Administrator
        ten copies of the private placement memorandum or disclosure document, as
        revised, amended or supplemented. The Securities Administrator shall maintain
        at
        its office as set forth in Section 12.05 hereof and shall make available
        free of charge during normal business hours for review by any Holder of a
        Certificate or any Person identified to the Securities Administrator as a
        prospective transferee of a Certificate, originals or copies of the following
        items: (i) in the case of a Holder or prospective transferee of a Class CE-1
        Certificate, Class CE-2 Certificate, Class P Certificate or Residual
        Certificate, the related private placement memorandum or other disclosure
        document relating to such Class of Certificates, in the form most recently
        provided to the Securities Administrator; and (ii) in all cases, (A) this
        Agreement and any amendments hereof entered into pursuant to Section 12.01
        of this Agreement, (B) all monthly statements required to be delivered to
        Certificateholders of the relevant Class pursuant to Section 5.02 of this
        Agreement since the Closing Date, and all other notices, reports, statements
        and
        written communications delivered to the Certificateholders of the relevant
        Class
        pursuant to this Agreement since the Closing Date and (C) any copies of all
        Officers’ Certificates of a Servicer since the Closing Date delivered to the
        Master Servicer to evidence such Person’s determination that any P&I Advance
        or Servicing Advance was, or if made, would be a Nonrecoverable P&I Advance
        or Nonrecoverable Servicing Advance. Copies and mailing of any and all of
        the
        foregoing items will be available from the Securities Administrator upon
        request
        at the expense of the Person requesting the same.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        VII  

       

      THE
        DEPOSITOR, OCWEN, WELLS FARGO AND THE MASTER SERVICER

       

      SECTION
        7.01  Liability
        of the Depositor, Ocwen, Wells Fargo and the Master Servicer.

       

      The
        Depositor, Ocwen, Wells Fargo and the Master Servicer each shall be liable
        in
        accordance herewith only to the extent of the obligations specifically imposed
        by this Agreement upon them in their respective capacities as Depositor,
        Servicer and Master Servicer and undertaken hereunder by the Depositor, the
        related Servicer and the Master Servicer herein.

       

      SECTION
        7.02  Merger
        or Consolidation of the Depositor, Ocwen, Wells Fargo or the Master
        Servicer.

       

      Subject
        to the following paragraph, the Depositor will keep in full effect its
        existence, rights and franchises as a corporation under the laws of the
        jurisdiction of its incorporation. Subject to the following paragraph, Ocwen
        will keep in full effect its existence, rights and franchises as a limited
        liability company and Wells Fargo will keep in full effect its existence,
        rights
        and franchises as a national banking association. Subject to the following
        paragraph, the Master Servicer will keep in full effect its existence, rights
        and franchises as a national banking association. The Depositor, Ocwen, Wells
        Fargo and the Master Servicer each will obtain and preserve its qualification
        to
        do business as a foreign entity in each jurisdiction in which such qualification
        is or shall be necessary to protect the validity and enforceability of this
        Agreement, the Certificates or any of the Mortgage Loans and to perform its
        respective duties under this Agreement.

       

      The
        Depositor, Ocwen, Wells Fargo or the Master Servicer may be merged or
        consolidated with or into any Person, or transfer all or substantially all
        of
        its assets to any Person, in which case any Person resulting from any merger
        or
        consolidation to which the Depositor, Ocwen, Wells Fargo or the Master Servicer
        shall be a party, or any Person succeeding to the business of the Depositor,
        such Servicer or the Master Servicer, shall be the successor of the Depositor,
        such Servicer or the Master Servicer, as the case may be, hereunder, without
        the
        execution or filing of any paper or any further act on the part of any of
        the
        parties hereto, anything herein to the contrary notwithstanding; provided,
        however, that any successor to Ocwen, Wells Fargo or the Master Servicer
        shall
        meet the eligibility requirements set forth in clauses (i) and (iii) of the
        last
        paragraph of Section 8.02(a) or Section 7.06 of this
        Agreement.

       

      SECTION
        7.03  Limitation
        on Liability of the Depositor, Ocwen, Wells Fargo, the Master Servicer and
        Others.

       

      None
        of
        the Depositor, Ocwen, Wells Fargo, the Securities Administrator, the Master
        Servicer or any of the directors, officers, employees or agents of the
        Depositor, Ocwen, Wells Fargo or the Master Servicer shall be under any
        liability to the Trust Fund or the Certificateholders for any action taken
        or
        for refraining from the taking of any action in good faith pursuant to this
        Agreement or for errors in judgment; provided, however, that this provision
        shall not protect the Depositor Ocwen, Wells Fargo, the Securities
        Administrator, the Master Servicer or any such person against any breach
        of
        warranties, representations or covenants made herein or against any specific
        liability imposed on any such Person pursuant hereto or against any liability
        which would otherwise be imposed by reason of willful misfeasance, bad faith
        or
        gross negligence in the performance of duties or by reason of reckless disregard
        of obligations and duties hereunder. The Depositor, Ocwen, Wells Fargo, the
        Securities Administrator, the Master Servicer and any director, officer,
        employee or agent of the Depositor, Ocwen, Wells Fargo, the Securities
        Administrator and the Master Servicer may rely in good faith on any document
        of
        any kind which, prima facie, is properly executed and submitted by any Person
        respecting any matters arising hereunder. The Depositor, Ocwen, Wells Fargo,
        the
        Securities Administrator, the Master Servicer and any director, officer,
        employee or agent of the Depositor, Ocwen, Wells Fargo, the Securities
        Administrator or the Master Servicer shall be indemnified and held harmless
        by
        the Trust Fund against any loss, liability or expense incurred in connection
        with any legal action relating to this Agreement, the Certificates or any
        Loan
        Performance Monitoring Agreement or any loss, liability or expense incurred
        other than by reason of willful misfeasance, bad faith or gross negligence
        in
        the performance of duties hereunder or by reason of reckless disregard of
        obligations and duties hereunder. None of the Depositor, Ocwen, Wells Fargo,
        the
        Securities Administrator or the Master Servicer shall be under any obligation
        to
        appear in, prosecute or defend any legal action unless such action is related
        to
        its respective duties under this Agreement and, in its opinion, does not
        involve
        it in any expense or liability; provided, however, that each of the Depositor,
        Ocwen, Wells Fargo, the Securities Administrator and the Master Servicer
        may in
        its discretion undertake any such action which it may deem necessary or
        desirable with respect to this Agreement and the rights and duties of the
        parties hereto and the interests of the Certificateholders hereunder. In
        such
        event, the legal expenses and costs of such action and any liability resulting
        therefrom (except any loss, liability or expense incurred by reason of willful
        misfeasance, bad faith or gross negligence in the performance of duties
        hereunder or by reason of reckless disregard of obligations and duties
        hereunder) shall be expenses, costs and liabilities of the Trust Fund, and
        the
        Depositor, Ocwen, Wells Fargo, the Securities Administrator and the Master
        Servicer shall be entitled to be reimbursed therefor from the related Collection
        Account or the Distribution Account as and to the extent provided in Article
        III
        and Article IV of this Agreement, any such right of reimbursement being prior
        to
        the rights of the Certificateholders to receive any amount in the Collection
        Accounts and the Distribution Account.

       

      Notwithstanding
        anything to the contrary contained herein, Ocwen and Wells Fargo shall not
        be
        liable for any actions or inactions prior to the Cut-off Date of any prior
        servicer of the Mortgage Loans and the Master Servicer shall not be liable
        for
        any action or inaction of the Servicers, except to the extent expressly provided
        herein, or the Loan Performance Monitoring Agreements.

       

      SECTION
        7.04  Limitation
        on Resignation of Ocwen and Wells Fargo.

       

      (a)  Except
        as
        expressly provided herein, Ocwen and Wells Fargo shall not assign all or
        substantially all of its rights under this Agreement or the servicing hereunder
        or delegate all or substantially all of its duties hereunder nor sell or
        otherwise dispose of all or substantially all of its property or assets without,
        in each case, the prior written consent of the Master Servicer, which consent
        shall not be unreasonably withheld; provided, that in each case, there must
        be
        delivered to the Trustee and the Master Servicer a letter from each Rating
        Agency to the effect that such transfer of servicing or sale or disposition
        of
        assets will not result in a qualification, withdrawal or downgrade of the
        then-current rating of any of the Certificates. Notwithstanding the foregoing,
        Ocwen and Wells Fargo, without the consent of the Trustee or the Master
        Servicer, may retain third-party contractors to perform certain servicing
        and
        loan administration functions, including without limitation hazard insurance
        administration, tax payment and administration, flood certification and
        administration, collection services and similar functions, provided, however,
        that the retention of such contractors by the related Servicer shall not
        limit
        the obligation of such Servicer to service the related Mortgage Loans pursuant
        to the terms and conditions of this Agreement. Neither Ocwen nor Wells Fargo
        shall resign from the obligations and duties hereby imposed on it except
        by
        consent of the Master Servicer or upon determination that its duties hereunder
        are no longer permissible under applicable law. Any such determination pursuant
        to the preceding sentence permitting the resignation of Ocwen or Wells Fargo
        shall be evidenced by an Opinion of Counsel to such effect obtained at the
        expense of the related Servicer and delivered to the Trustee and the Rating
        Agencies. No resignation of Ocwen or Wells Fargo shall become effective until
        the Master Servicer or a successor Servicer shall have assumed the related
        Servicer’s responsibilities, duties, liabilities (other than those liabilities
        arising prior to the appointment of such successor) and obligations under
        this
        Agreement.

       

      (b)  Except
        as
        expressly provided herein, neither Ocwen nor Wells Fargo shall assign or
        transfer any of its rights, benefits or privileges hereunder to any other
        Person, or delegate to or subcontract with, or authorize or appoint any other
        Person to perform any of the duties, covenants or obligations to be performed
        by
        the related Servicer hereunder. The foregoing prohibition on assignment shall
        not prohibit the related Servicer from designating a Sub-Servicer as payee
        of
        any indemnification amount payable to the related Servicer hereunder; provided,
        however, that as provided in Section 3.02 of this Agreement, no
        Sub-Servicer shall be a third-party beneficiary hereunder and the parties
        hereto
        shall not be required to recognize any Sub-Servicer as an indemnitee under
        this
        Agreement.

       

      SECTION
        7.05  Limitation
        on Resignation of the Master Servicer.

       

      The
        Master Servicer shall not resign from the obligations and duties hereby imposed
        on it except upon determination that its duties hereunder are no longer
        permissible under applicable law. Any such determination pursuant to the
        preceding sentence permitting the resignation of the Master Servicer shall
        be
        evidenced by an Opinion of Counsel to such effect obtained at the expense
        of the
        Master Servicer and delivered to the Trustee and the Rating Agencies. No
        resignation of the Master Servicer shall become effective until the Trustee
        or a
        successor Master Servicer meeting the criteria specified in Section 7.06 of
        this Agreement shall have assumed the Master Servicer’s responsibilities,
        duties, liabilities (other than those liabilities arising prior to the
        appointment of such successor) and obligations under this
        Agreement.

       

      SECTION
        7.06  Assignment
        of Master Servicing.

       

      The
        Master Servicer may sell and assign its rights and delegate its duties and
        obligations in its entirety as Master Servicer under this Agreement; provided,
        however, that: (i) the purchaser or transferee accept in writing such assignment
        and delegation and assume the obligations of the Master Servicer hereunder
        (a)
        shall have a net worth of not less than $25,000,000 (unless otherwise approved
        by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
        satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
        and (c) shall execute and deliver to the Trustee an agreement, in form and
        substance reasonably satisfactory to the Trustee, which contains an assumption
        by such Person of the due and punctual performance and observance of each
        covenant and condition to be performed or observed by it as master servicer
        under this Agreement, any custodial agreement from and after the effective
        date
        of such agreement; (ii) each Rating Agency shall be given prior written notice
        of the identity of the proposed successor to the Master Servicer and each
        Rating
        Agency’s rating of the Certificates in effect immediately prior to such
        assignment, sale and delegation will not be downgraded, qualified or withdrawn
        as a result of such assignment, sale and delegation, as evidenced by a letter
        to
        such effect delivered to the Master Servicer and the Trustee; and (iii) the
        Master Servicer assigning and selling the master servicing shall deliver
        to the
        Trustee an Officer’s Certificate and an Opinion of Independent counsel, each
        stating that all conditions precedent to such action under this Agreement
        have
        been completed and such action is permitted by and complies with the terms
        of
        this Agreement. No such assignment or delegation shall affect any liability
        of
        the Master Servicer arising out of acts or omissions prior to the effective
        date
        thereof.

       

      SECTION
        7.07  Rights
        of the Depositor in Respect of Ocwen, Wells Fargo and the Master
        Servicer.

       

      Each
        of
        the Master Servicer and any Servicer that is a party hereto shall afford
        (and
        any Sub-Servicing Agreement or sub-contracting agreement shall provide that
        each
        Sub-Servicer or Subcontractor, as applicable, shall afford) the Depositor
        and
        the Trustee, upon reasonable notice, during normal business hours, access
        to all
        records maintained by the Master Servicer or the related Servicer (and any
        such
        Sub-Servicer or Subcontractor, as applicable) in respect of the related
        Servicer’s rights and obligations hereunder and access to officers of the Master
        Servicer or such Servicer (and those of any such Sub-Servicer or Subcontractor,
        as applicable) responsible for such obligations, and the Master Servicer
        shall
        have access to all such records maintained by such Servicer and any
        Sub-Servicers or Subcontractors. Upon request, each of the Master Servicer
        and
        the related Servicer shall furnish to the Depositor and the Trustee its (and
        any
        such Sub-Servicer’s or Subcontractor’s) most recent financial statements and
        such other information relating to the Master Servicer’s or such Servicer’s
        capacity to perform its obligations under this Agreement as it possesses
        (and
        that any such Sub-Servicer or Subcontractor possesses). To the extent that
        the
        Master Servicer, Ocwen or Wells Fargo informs the Depositor and the Trustee
        that
        such information is not otherwise available to the public, the Depositor
        and the
        Trustee shall not disseminate any information obtained pursuant to the preceding
        two sentences without the Master Servicer’s or the related Servicer’s written
        consent, except as required pursuant to this Agreement or to the extent that
        it
        is appropriate to do so (i) to its legal counsel, auditors, taxing authorities
        or other governmental agencies and the Certificateholders, (ii) pursuant
        to any
        law, rule, regulation, order, judgment, writ, injunction or decree of any
        court
        or governmental authority having jurisdiction over the Depositor and the
        Trustee
        or the Trust Fund, and in any case, the Depositor or the Trustee, (iii)
        disclosure of any and all information that is or becomes publicly known,
        or
        information obtained by the Trustee from sources other than the Depositor,
        the
        related Servicer or the Master Servicer, (iv) disclosure as required pursuant
        to
        this Agreement or (v) disclosure of any and all information (A) in any
        preliminary or final offering circular, registration statement or contract
        or
        other document pertaining to the transactions contemplated by the Agreement
        approved in advance by the Depositor, the related Servicer or the Master
        Servicer or (B) to any affiliate, independent or internal auditor, agent,
        employee or attorney of the Trustee having a need to know the same, provided
        that the Trustee advises such recipient of the confidential nature of the
        information being disclosed, shall use its best efforts to assure the
        confidentiality of any such disseminated non-public information. Nothing
        in this
        Section 7.07 shall limit the obligation of Ocwen or Wells Fargo to comply
        with any applicable law prohibiting disclosure of information regarding the
        Mortgagors and the failure of Ocwen or Wells Fargo to provide access as provided
        in this Section 7.07 as a result of such obligation shall not constitute a
        breach of this Section. Nothing in this Section 7.07 shall require Ocwen or
        Wells Fargo to collect, create, collate or otherwise generate any information
        that it does not generate in its usual course of business. Ocwen and Wells
        Fargo
        shall not be required to make copies of or ship documents to any party unless
        provisions have been made for the reimbursement of the costs thereof. The
        Depositor may, but is not obligated to, enforce the obligations of the Master
        Servicer, Ocwen and Wells Fargo under this Agreement and may, but is not
        obligated to, perform, or cause a designee to perform, any defaulted obligation
        of the Master Servicer, Ocwen or Wells Fargo under this Agreement or exercise
        the rights of the Master Servicer, Ocwen or Wells Fargo under this Agreement;
        provided that none of the Master Servicer, Ocwen or Wells Fargo shall be
        relieved of any of its obligations under this Agreement by virtue of such
        performance by the Depositor or its designee. The Depositor shall not have
        any
        responsibility or liability for any action or failure to act by the Master
        Servicer, Ocwen or Wells Fargo and is not obligated to supervise the performance
        of the Master Servicer, Ocwen or Wells Fargo under this Agreement or
        otherwise.

       

      SECTION
        7.08  Duties
        of the Loan Performance Advisor.

       

      For
        and
        on behalf of the Depositor pursuant to the Loan Performance Advisor Agreement,
        the Loan Performance Advisor will among other duties set forth in the Loan
        Performance Advisor Agreement, provide reports and recommendations concerning
        certain delinquent and defaulted Mortgage Loans, and as to the collection
        of any
        Prepayment Charges with respect to the Mortgage Loans. Such reports and
        recommendations will be based upon information provided to the Loan Performance
        Advisor pursuant to the Loan Performance Monitoring Agreements, and the Loan
        Performance Advisor shall look solely to the related Servicer for all
        information and data (including loss and delinquency information and data)
        relating to the servicing of the related Mortgage Loans.

       

      SECTION
        7.09  Limitation
        Upon Liability of the Loan Performance Advisor.

       

      Neither
        the Loan Performance Advisor, nor any of its directors, officers, employees,
        or
        agents shall be under any liability to the Trustee, the Certificateholders,
        or
        the Depositor for any action taken or for refraining from the taking of any
        action made in good faith pursuant to this Agreement, in reliance upon
        information provided by a Servicer under the related Loan Performance Monitoring
        Agreement, or for errors in judgment; provided, however, that this provision
        shall not protect the Loan Performance Advisor or any such person against
        liability that would otherwise be imposed by reason of willful malfeasance
        or
        bad faith in its performance of its duties. The Loan Performance Advisor
        and any
        director, officer, employee, or agent of the Loan Performance Advisor may
        rely
        in good faith on any document of any kind prima facie properly executed and
        submitted by any Person respecting any matters arising hereunder or under
        the
        related Loan Performance Monitoring Agreement, and may rely in good faith
        upon
        the accuracy of information furnished by a Servicer pursuant to the related
        Loan
        Performance Monitoring Agreement in the performance of its duties thereunder
        and
        hereunder. The Loan Performance Advisor shall be held harmless and indemnified
        by the Trust Fund for any claims, costs or liability (each a “Claim”) arising
        out of or related in any way to the performance of its duties hereunder absent
        bad faith, willful misfeasance or gross negligence on the part of the Loan
        Performance Advisor with respect to the applicable Claim and the legal expenses
        for any applicable Claim shall be expenses, costs and liabilities of the
        Trust
        Fund.

       

      SECTION
        7.10  Removal
        of the Loan Performance Advisor.

       

      So
        long
        as Deutsche Bank Securities Inc. is the Holder of the Class CE-1 Certificate
        it
        may, at its option, terminate the Loan Performance Advisor if the Loan
        Performance Advisor breaches its obligations under the Loan Performance
        Monitoring Agreements in any material respect and has not cured such breach
        as
        promptly as practicable but in no event later than 30 days after receiving
        written notice of such breach. In the event that a party other than Deutsche
        Bank Securities Inc. is the Holder of the Class CE-1 Certificate, the Holder
        of
        the Class CE-1 Certificate shall not have such termination right. In addition,
        the Loan Performance Advisor may be removed as Loan Performance Advisor under
        both Loan Performance Monitoring Agreements by Certificateholders holding
        not
        less than 66 2/3% of the Voting Rights in the Trust Fund, in the exercise
        of its
        or their sole discretion. Upon the termination of the Loan Performance Advisor
        by the Certificateholders or Deutsche Bank Securities Inc. as provided above,
        the Certificateholders or Deutsche Bank Securities Inc., as applicable, shall
        provide written notice of the Loan Performance Advisor’s removal to the Trustee
        and the Servicers. Upon receipt of such notice, the Trustee shall provide
        written notice to the Loan Performance Advisor of its removal, which shall
        be
        effective upon receipt of such notice by the Loan Performance Advisor with
        a
        copy to the Securities Administrator and the Master Servicer.

       

      Upon
        the
        termination of the Loan Performance Advisor by the Holder of the Class CE-1
        Certificate as provided above, the Holder of the Class CE-1 Certificate may,
        at
        its option, appoint a successor Loan Performance Advisor. If the Holder of
        the
        Class CE-1 Certificate fails to appoint a successor Loan Performance Advisor,
        the Depositor may appoint a successor Loan Performance Advisor. Upon the
        termination of the Loan Performance Advisor by the Certificateholders as
        provided above, the Depositor shall appoint a successor Loan Performance
        Advisor. Notwithstanding the foregoing, the termination of the Loan Performance
        Advisor pursuant to this Section shall not become effective until the
        appointment of a successor Loan Performance Advisor.

       

      SECTION
        7.11  Transfer
        of Servicing by Sponsor.

       

      The
        Sponsor may, at its option, transfer the servicing responsibilities of each
        Servicer with respect to the related Mortgage Loans at any time without cause.
        No such transfer shall become effective unless and until a successor to the
        related Servicer shall have been appointed to service and administer the
        related
        Mortgage Loans pursuant to the terms and conditions of this Agreement. No
        appointment shall be effective unless (i) such successor meets the eligibility
        criteria set forth in Section 7.04 and (ii) all amounts reimbursable to such
        Servicer under this Agreement shall have been paid by the successor appointed
        pursuant to the terms of this Section 7.11 or by the Sponsor including without
        limitation, all unreimbursed P&I Advances and Servicing Advances made by
        such Servicer accrued and unpaid Servicing Fees and all out-of-pocket expenses
        of such Servicer incurred in connection with the transfer of servicing to
        such
        successor. The Sponsor shall provide a copy of the written confirmation of
        the
        Rating Agencies to the Trustee, the Securities Administrator and the Master
        Servicer. In connection with such appointment and assumption described herein,
        the Sponsor may make such arrangements for the compensation of such successor
        out of payments on Mortgage Loans as it and such successor shall agree;
        provided, however, that no such compensation shall be in excess of that
        permitted for the related Servicer hereunder. In addition, with respect to
        any
        successor servicer to Wells Fargo hereunder, such compensation shall not
        be in
        excess of the Servicing Fee Rate. The Sponsor shall take such action, consistent
        with this Agreement, as shall be necessary to effectuate any such
        succession.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

          
        ARTICLE VIII  

       

      DEFAULT

       

      SECTION
        8.01  Servicer
        Events of Default.

       

      (a)  “Servicer
        Event of Default,” wherever used herein, means with respect to Ocwen and Wells
        Fargo any one of the following events:

       

      (i)  any
        failure by the related Servicer to remit to the Securities Administrator
        for
        distribution to the Certificateholders any payment (other than a P&I Advance
        required to be made from its own funds on any Servicer Remittance Date pursuant
        to Section 5.03 of this Agreement) required to be made by the related
        Servicer under the terms of the Certificates and this Agreement which continues
        unremedied for a period of one (1) Business Day after the date upon which
        written notice of such failure, requiring the same to be remedied, shall
        have
        been given to such Servicer by the Depositor or the Trustee (in which case
        notice shall be provided by telecopy), or to such Servicer, the Depositor
        and
        the Trustee by the Holders of Certificates entitled to at least 25% of the
        Voting Rights; or

       

      (ii)  any
        failure on the part of the related Servicer duly to observe or perform in
        any
        material respect any other of the covenants or agreements on the part of
        such
        Servicer contained in this Agreement, or the material breach by such Servicer
        of
        any representation and warranty contained in Section 2.05 of this
        Agreement, which continues unremedied for a period of thirty (30) days after
        the
        date on which written notice of such failure, requiring the same to be remedied,
        shall have been given to such Servicer by the Depositor or the Trustee or
        to
        such Servicer, the Depositor and the Trustee by the Holders of Certificates
        entitled to at least 25% of the Voting Rights; provided, however, that in
        the
        case of a failure that cannot be cured within thirty (30) days, the cure
        period
        may be extended for an additional thirty (30) days if the related Servicer
        can
        demonstrate to the reasonable satisfaction of the Trustee that such Servicer
        is
        diligently pursuing remedial action; or

       

      (iii)  a
        decree
        or order of a court or agency or supervisory authority having jurisdiction
        in
        the premises in an involuntary case under any present or future federal or
        state
        bankruptcy, insolvency or similar law or the appointment of a conservator
        or
        receiver or liquidator in any insolvency, readjustment of debt, marshalling
        of
        assets and liabilities or similar proceeding, or for the winding-up or
        liquidation of its affairs, shall have been entered against the related Servicer
        and such decree or order shall have remained in force undischarged or unstayed
        for a period of ninety (90) days; or

       

      (iv)  the
        related Servicer shall consent to the appointment of a conservator or receiver
        or liquidator in any insolvency, readjustment of debt, marshalling of assets
        and
        liabilities or similar proceedings of or relating to it or of or relating
        to all
        or substantially all of its property; or

       

      (v)  the
        related Servicer shall admit in writing its inability to pay its debts generally
        as they become due, file a petition to take advantage of any applicable
        insolvency or reorganization statute, make an assignment for the benefit
        of its
        creditors, or voluntarily suspend payment of its obligations; or

       

      (vi)  failure
        by the related Servicer to duly perform, within the required time period,
        its
        obligations under Sections 3.17, 3.18 or 3.19; or

       

      (vii)  any
        failure of the related Servicer to make any P&I Advance on any Servicer
        Remittance Date required to be made from its own funds pursuant to
        Section 5.03 which continues unremedied until 3:00 p.m. New York time on
        the Business Day immediately following the Servicer Remittance Date;
        or

       

      (viii)  failure
        of the related Servicer to maintain at least an “average” rating from the Rating
        Agencies.

       

      A
        “Servicer Event of Default” whenever used herein means, with respect to SPS, an
        event of default by SPS under the Servicing Agreement.

       

      If
        a
        Servicer Event of Default described in clauses (a)(i) through (vi) or (viii)
        of
        this Section or a corresponding Servicer Event of Default under the
        Servicing Agreement shall occur, then, and in each and every such case, so
        long
        as such Servicer Event of Default shall not have been remedied, the Depositor
        or
        the Trustee may, and at the written direction of the Holders of Certificates
        entitled to at least 51% of Voting Rights, the Trustee shall, by notice in
        writing to the defaulting Servicer (and to the Depositor if given by the
        Trustee
        or to the Trustee if given by the Depositor) with a copy to the Master Servicer
        and each Rating Agency, terminate all of the rights and obligations of the
        defaulting Servicer in its capacity as a Servicer under this Agreement, to
        the
        extent permitted by law, and in and to the related Mortgage Loans and the
        proceeds thereof. If a Servicer Event of Default described in clause (vii)
        hereof or the corresponding Servicer Event of Default under the Servicing
        Agreement shall occur, the Trustee shall, by notice in writing to the defaulting
        Servicer, the Depositor and the Master Servicer, terminate all of the rights
        and
        obligations of the defaulting Servicer in its capacity as a Servicer under
        this
        Agreement and in and to the related Mortgage Loans and the proceeds thereof.
        Subject to Section 8.02 of this Agreement, on or after the receipt by the
        defaulting Servicer of such written notice, all authority and power of the
        defaulting Servicer under this Agreement or the Servicing Agreement, as
        applicable, whether with respect to the Certificates (other than as a Holder
        of
        any Certificate) or the related Mortgage Loans or otherwise, shall pass to
        and
        be vested in the Master Servicer or, with respect to a default by Wells Fargo,
        to a successor Servicer appointed by the Trustee pursuant to and under this
        Section, and, without limitation, the Master Servicer is hereby authorized
        and
        empowered, as attorney-in-fact or otherwise, to execute and deliver, on behalf
        of and at the expense of the defaulting Servicer, any and all documents and
        other instruments and to do or accomplish all other acts or things necessary
        or
        appropriate to effect the purposes of such notice of termination, whether
        to
        complete the transfer and endorsement or assignment of the related Mortgage
        Loans and related documents, or otherwise. The defaulting Servicer agrees
        promptly (and in any event no later than ten Business Days subsequent to
        such
        notice) to provide the Master Servicer or other successor Servicer with all
        documents and records requested by it to enable it to assume such Servicer’s
        functions under this Agreement, and to cooperate with the Master Servicer
        or,
        with respect to Wells Fargo, the Trustee in effecting the termination of
        the
        defaulting Servicer’s responsibilities and rights under this Agreement,
        including, without limitation, the transfer within one Business Day to the
        Master Servicer or other successor Servicer for administration by it of all
        cash
        amounts which at the time shall be or should have been credited by the
        defaulting Servicer to the related Collection Account held by or on behalf
        of
        such Servicer or thereafter be received with respect to the related Mortgage
        Loans or any related REO Property (provided, however, that the defaulting
        Servicer shall continue to be entitled to receive all amounts accrued or
        owing
        to it under this Agreement on or prior to the date of such termination, whether
        in respect of P&I Advances, Servicing Advances, accrued and unpaid Servicing
        Fees or otherwise, and shall continue to be entitled to the benefits of
        Section 7.03 of this Agreement, notwithstanding any such termination, with
        respect to events occurring prior to such termination). Reimbursement of
        unreimbursed P&I Advances, Servicing Advances and accrued and unpaid
        Servicing Fees shall be made on a first in, first out (“FIFO”) basis no later
        than the Servicer Remittance Date. For purposes of this Section 8.01(a),
        the Trustee shall not be deemed to have knowledge of a Servicer Event of
        Default
        unless a Responsible Officer of the Trustee assigned to and working in the
        Trustee’s Corporate Trust Office has actual knowledge thereof or unless written
        notice of any event which is in fact such a Servicer Event of Default is
        received by the Trustee at its Corporate Trust Office and such notice references
        the Certificates, the Trust or this Agreement. The Trustee shall promptly
        notify
        the Master Servicer and the Rating Agencies of the occurrence of a Servicer
        Event of Default of which it has knowledge as provided above.

       

      The
        Master Servicer, any other successor servicer and the Trustee shall be entitled
        to be reimbursed by the defaulting Servicer (or from amounts on deposit in
        the
        Distribution Account if the defaulting Servicer is unable to fulfill its
        obligations hereunder) for all reasonable out-of-pocket or third party costs
        associated with the transfer of servicing from the predecessor Servicer (or
        if
        the predecessor Servicer is the Master Servicer, from the Servicer immediately
        preceding the Master Servicer), including without limitation, any reasonable
        out-of-pocket or third party costs or expenses associated with the complete
        transfer of all servicing data and the completion, correction or manipulation
        of
        such servicing data as may be required by the Master Servicer to correct
        any
        errors or insufficiencies in the servicing data or otherwise to enable the
        Master Servicer to service the Mortgage Loans properly and effectively, upon
        presentation of reasonable documentation of such costs and
        expenses.

       

      (b)  “Master
        Servicer Event of Default,” wherever used herein, means any one of the following
        events:

       

      (i)  any
        failure on the part of the Master Servicer duly to observe or perform in
        any
        material respect any other of the covenants or agreements on the part of
        the
        Master Servicer contained in this Agreement, or the breach by the Master
        Servicer of any representation and warranty contained in Section 2.04,
        which continues unremedied for a period of 30 days after the date on which
        written notice of such failure, requiring the same to be remedied, shall
        have
        been given to the Master Servicer by the Depositor or the Trustee or to the
        Master Servicer, the Depositor and the Trustee by the Holders of Certificates
        entitled to at least 25% of the Voting Rights; or

       

      (ii)  a
        decree
        or order of a court or agency or supervisory authority having jurisdiction
        in
        the premises in an involuntary case under any present or future federal or
        state
        bankruptcy, insolvency or similar law or the appointment of a conservator
        or
        receiver or liquidator in any insolvency, readjustment of debt, marshalling
        of
        assets and liabilities or similar proceeding, or for the winding-up or
        liquidation of its affairs, shall have been entered against the Master Servicer
        and such decree or order shall have remained in force undischarged or unstayed
        for a period of ninety (90) days; or

       

      (iii)  the
        Master Servicer shall consent to the appointment of a conservator or receiver
        or
        liquidator in any insolvency, readjustment of debt, marshalling of assets
        and
        liabilities or similar proceedings of or relating to it or of or relating
        to all
        or substantially all of its property; or

       

      (iv)  the
        Master Servicer shall admit in writing its inability to pay its debts generally
        as they become due, file a petition to take advantage of any applicable
        insolvency or reorganization statute, make an assignment for the benefit
        of its
        creditors, or voluntarily suspend payment of its obligations; or

       

      (v)  failure
        by the Master Servicer to duly perform, within the required time period,
        its
        obligations under Sections 4.15, 4.16, 4.17 and 4.18.

       

      If
        a
        Master Servicer Event of Default shall occur, then, and in each and every
        such
        case, so long as such Master Servicer Event of Default shall not have been
        remedied, the Depositor or the Trustee may, and at the written direction
        of the
        Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee
        shall, by notice in writing to the Master Servicer (and to the Depositor
        if
        given by the Trustee or to the Trustee if given by the Depositor) with a
        copy to
        each Rating Agency, terminate all of the rights and obligations of the Master
        Servicer in its capacity as Master Servicer under this Agreement, to the
        extent
        permitted by law, and in and to the Mortgage Loans and the proceeds thereof.
        On
        or after the receipt by the Master Servicer of such written notice, all
        authority and power of the Master Servicer under this Agreement, whether
        with
        respect to the Certificates (other than as a Holder of any Certificate) or
        the
        Mortgage Loans or otherwise including, without limitation, the compensation
        payable to the Master Servicer under this Agreement, shall pass to and be
        vested
        in the Trustee pursuant to and under this Section, and, without limitation,
        the
        Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise,
        to
        execute and deliver, on behalf of and at the expense of the Master Servicer,
        any
        and all documents and other instruments and to do or accomplish all other
        acts
        or things necessary or appropriate to effect the purposes of such notice
        of
        termination, whether to complete the transfer and endorsement or assignment
        of
        the Mortgage Loans and related documents, or otherwise. The Master Servicer
        agrees promptly (and in any event no later than ten Business Days subsequent
        to
        such notice) to provide the Trustee with all documents and records requested
        by
        it to enable it to assume the Master Servicer’s functions under this Agreement,
        and to cooperate with the Trustee in effecting the termination of the Master
        Servicer’s responsibilities and rights under this Agreement (provided, however,
        that the Master Servicer shall continue to be entitled to receive all amounts
        accrued or owing to it under this Agreement on or prior to the date of such
        termination and shall continue to be entitled to the benefits of
        Section 7.03 of this Agreement, notwithstanding any such termination, with
        respect to events occurring prior to such termination). For purposes of this
        Section 8.01(b), the Trustee shall not be deemed to have knowledge of a
        Master Servicer Event of Default unless a Responsible Officer of the Trustee
        assigned to and working in the Trustee’s Corporate Trust Office has actual
        knowledge thereof or unless written notice of any event which is in fact
        such a
        Master Servicer Event of Default is received by the Trustee and such notice
        references the Certificates, the Trust or this Agreement. The Trustee shall
        promptly notify the Rating Agencies of the occurrence of a Master Servicer
        Event
        of Default of which it has knowledge as provided above.

       

      To
        the
        extent that the costs and expenses of the Trustee related to the termination
        of
        the Master Servicer, appointment of a successor Master Servicer or the transfer
        and assumption of the master servicing by the Trustee (including, without
        limitation, (i) all legal costs and expenses and all due diligence costs
        and
        expenses associated with an evaluation of the potential termination of the
        Master Servicer as a result of a Master Servicer Event of Default and (ii)
        all
        costs and expenses associated with the complete transfer of the master
        servicing, including all servicing files and all servicing data and the
        completion, correction or manipulation of such servicing data as may be required
        by the successor Master Servicer to correct any errors or insufficiencies
        in the
        servicing data or otherwise to enable the successor Master Servicer to master
        service the Mortgage Loans in accordance with this Agreement) are not fully
        and
        timely reimbursed by the terminated Master Servicer, the Trustee shall be
        entitled to reimbursement of such costs and expenses from the Distribution
        Account.

       

      Neither
        the Trustee nor any other successor master servicer shall be deemed to be
        in
        default hereunder by reason of any failure to make, or any delay in making,
        any
        distribution hereunder or any portion thereof or any failure to perform,
        or any
        delay in performing, any duties or responsibilities hereunder, in either
        case
        caused by the failure of the Master Servicer to deliver or provide, or any
        delay
        in delivering or providing, any cash, information, documents or records to
        it.

       

      Notwithstanding
        the foregoing, the Trustee may, if it shall be unwilling to continue to act,
        or
        shall, if it is unable to so act, petition a court of competent jurisdiction
        to
        appoint, or appoint on its own behalf, any established housing and home finance
        institution servicer, master servicer, servicing or mortgage servicing
        institution having a net worth of not less than $25,000,000 and meeting such
        other standards for a successor master servicer as are set forth in this
        Agreement, as the successor to such Master Servicer in the assumption of
        all of
        the responsibilities, duties or liabilities of a master servicer.

       

      SECTION
        8.02  Master
        Servicer to Act; Appointment of Successor.

       

      (a)  On
        and
        after the time a Servicer receives a notice of termination, the Master Servicer
        or other successor Servicer as appointed by the Trustee shall be the successor
        in all respects to such Servicer in its capacity as a Servicer under this
        Agreement or the Servicing Agreement, as applicable, and the transactions
        set
        forth or provided for herein or therein, and all the responsibilities, duties
        and liabilities relating thereto and arising thereafter shall be assumed
        by the
        Master Servicer or such successor Servicer (except for any representations
        or
        warranties of the related Servicer under this Agreement or the Servicing
        Agreement, as applicable, the responsibilities, duties and liabilities contained
        in Section 2.03 of this Agreement and the obligation to deposit amounts in
        respect of losses pursuant to Section 3.10(b) of this Agreement) by the
        terms and provisions hereof including, without limitation, the related
        Servicer’s obligations to make P&I Advances pursuant to Section 5.03 of
        this Agreement or pursuant to the Servicing Agreement; provided that the
        Trustee
        shall be obligated to make P&I Advances in connection with the Wells Fargo
        Mortgage Loans in the event Wells Fargo is terminated as Servicer hereunder;
        provided, further, that if the Master Servicer or other successor servicer,
        is
        prohibited by law or regulation from obligating itself to make advances
        regarding delinquent mortgage loans, then the Master Servicer or other successor
        servicer shall not be obligated to make P&I Advances pursuant to
        Section 5.03 of this Agreement or pursuant to the Servicing Agreement; and
        provided further, that any failure to perform such duties or responsibilities
        caused by the related Servicer’s failure to provide information required by
        Section 8.01 of this Agreement or under the Servicing Agreement shall not
        be considered a default by the Master Servicer as successor to such Servicer
        hereunder; provided, however, that (1) it is understood and acknowledged
        by the
        parties hereto that there will be a period of transition (not to exceed 120
        days) before the actual servicing functions can be fully transferred to the
        Master Servicer or any successor Servicer appointed in accordance with the
        following provisions and (2) any failure to perform such duties or
        responsibilities caused by the related Servicer’s failure to provide information
        required by Section 8.01 of this Agreement or under the Servicing Agreement
        shall not be considered a default by the Master Servicer as successor to
        such
        Servicer. As compensation therefor, the Master Servicer or other successor
        servicer, as applicable, shall be entitled to the Servicing Fee and all funds
        relating to the Mortgage Loans to which the terminated Servicer would have
        been
        entitled if it had continued to act hereunder or under the Servicing Agreement.
        Notwithstanding the above and subject to the immediately following paragraph,
        the Master Servicer may, if it shall be unwilling to so act, or shall, if
        it is
        unable to so act promptly appoint or petition a court of competent jurisdiction
        to appoint, a Person that satisfies the eligibility criteria set forth below
        as
        the successor to the terminated Servicer under this Agreement or under the
        Servicing Agreement in the assumption of all or any part of the
        responsibilities, duties or liabilities of the related Servicer under this
        Agreement or under the Servicing Agreement.

       

      Notwithstanding
        anything herein to the contrary, in no event shall the Trustee or the Master
        Servicer be liable for any Servicing Fee or for any differential in the amount
        of the Servicing Fee paid hereunder or under the Servicing Agreement and
        the
        amount necessary to induce any successor Servicer to act as successor Servicer
        under this Agreement or the Servicing Agreement and the transactions set
        forth
        or provided for herein.

       

      Any
        successor Servicer appointed under this Agreement must (i) be an established
        mortgage loan servicing institution that is a Fannie Mae and Freddie Mac
        approved seller/servicer, (ii) be approved by each Rating Agency by a written
        confirmation from each Rating Agency that the appointment of such successor
        Servicer would not result in the reduction or withdrawal of the then current
        ratings of any outstanding Class of Certificates, (iii) have a net worth
        of not
        less than $25,000,000 and (iv) assume all the responsibilities, duties or
        liabilities of the related Servicer (other than liabilities of the related
        Servicer hereunder incurred prior to termination of the related Servicer
        under
        Section 8.01 herein) under this Agreement as if originally named as a party
        to this Agreement.

       

      (b)  (1)
        All
        servicing transfer costs (including, without limitation, servicing transfer
        costs of the type described in Section 8.02(a) of this Agreement and
        incurred by the Trustee, the Master Servicer and any successor Servicer under
        paragraph (b)(2) below) in connection with the termination of a Servicer
        shall
        be paid by the terminated Servicer upon presentation of reasonable documentation
        of such costs, and if such predecessor or initial Servicer, as applicable,
        defaults in its obligation to pay such costs, the successor Servicer, the
        Master
        Servicer and the Trustee shall be entitled to reimbursement therefor from
        the
        assets of the Trust Fund.

       

      (2)
        No
        appointment of a successor to a Servicer under this Agreement shall be effective
        until the assumption by the successor of all of such Servicer’s
        responsibilities, duties and liabilities hereunder. In connection with such
        appointment and assumption described herein, the Trustee may make such
        arrangements for the compensation of such successor out of payments on the
        related Mortgage Loans as it and such successor shall agree; provided,
        however,
        that no
        such compensation shall be in excess of that permitted the related Servicer
        as
        such hereunder or under the Servicing Agreement. The Depositor, the Trustee
        and
        such successor shall take such action, consistent with this Agreement, as
        shall
        be necessary to effectuate any such succession. Pending appointment of a
        successor to a Servicer under this Agreement, the Master Servicer shall act
        in
        such capacity as hereinabove provided.

       

      SECTION
        8.03  Notification
        to Certificateholders.

       

      (a)  Upon
        any
        termination of a Servicer or the Master Servicer pursuant to the Servicing
        Agreement or Section 8.01(a) or Section 8.01(b) of this Agreement, as
        applicable, or any appointment of a successor to a Servicer or the Master
        Servicer pursuant to the Servicing Agreement or Section 8.02 of this
        Agreement, as applicable, the Trustee shall give prompt written notice thereof
        to the Certificateholders at the expense of the Trust Fund at their respective
        addresses appearing in the Certificate Register.

       

      (b)  Not
        later
        than the later of sixty (60) days after the occurrence of any event, which
        constitutes or which, with notice or lapse of time or both, would constitute
        a
        Servicer Event of Default or a Master Servicer Event of Default or five (5)
        days
        after a Responsible Officer of the Trustee becomes aware of the occurrence
        of
        such an event, the Trustee shall transmit by mail to all Holders of Certificates
        notice of each such occurrence, unless such default or Servicer Event of
        Default
        or Master Servicer Event of Default shall have been cured or
        waived.

       

      SECTION
        8.04  Waiver
        of Servicer Events of Default.

       

      The
        Holders representing at least 66% of the Voting Rights evidenced by all Classes
        of Certificates affected by any default, Servicer Event of Default or Master
        Servicer Event of Default hereunder may waive such default, Servicer Event
        of
        Default or Master Servicer Event of Default; provided,
        however,
        that a
        Servicer Event of Default under clause (i) or (vii) of Section 8.01(a) of
        this Agreement may be waived only by all of the Holders of the Regular
        Certificates. Upon any such waiver of a default, Servicer Event of Default
        or
        Master Servicer Event of Default, such default, Servicer Event of Default
        or
        Master Servicer Event of Default shall cease to exist and shall be deemed
        to
        have been remedied for every purpose hereunder. No such waiver shall extend
        to
        any subsequent or other default, Servicer Event of Default or Master Servicer
        Event of Default or impair any right consequent thereon except to the extent
        expressly so waived.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        IX  

       

      CONCERNING
        THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

       

      SECTION
        9.01  Duties
        of Trustee and Securities Administrator.

       

      The
        Trustee, prior to the occurrence of a Master Servicer Event of Default and
        after
        the curing or waiver of all Master Servicer Events of Default which may have
        occurred, and the Securities Administrator each undertake to perform such
        duties
        and only such duties as are specifically set forth in this Agreement as duties
        of the Trustee and the Securities Administrator, respectively. During the
        continuance of a Master Servicer Event of Default, the Trustee shall exercise
        such of the rights and powers vested in it by this Agreement, and use the
        same
        degree of care and skill in its exercise as a prudent person would exercise
        or
        use under the circumstances in the conduct of such person’s own affairs. Any
        permissive right of the Trustee enumerated in this Agreement shall not be
        construed as a duty.

       

      Each
        of
        the Trustee and the Securities Administrator, upon receipt of all resolutions,
        certificates, statements, opinions, reports, documents, orders or other
        instruments furnished to it, which are specifically required to be furnished
        pursuant to any provision of this Agreement, shall examine them to determine
        whether they conform to the requirements of this Agreement. If any such
        instrument is found not to conform to the requirements of this Agreement
        in a
        material manner, the Trustee or the Securities Administrator, as the case
        may
        be, shall take such action as it deems appropriate to have the instrument
        corrected, and if the instrument is not corrected to its satisfaction, the
        Securities Administrator will provide notice to the Trustee thereof and the
        Trustee will provide notice to the Certificateholders.

       

      The
        Trustee shall promptly remit to the related Servicer any complaint, claim,
        demand, notice or other document (collectively, the “Notices”) delivered to the
        Trustee as a consequence of the assignment of any Mortgage Loan hereunder
        and
        relating to the servicing of the Mortgage Loans; provided than any such notice
        (i) is delivered to the Trustee at its Corporate Trust Office, (ii) is in
        writing and contains information sufficient to permit the Trustee to make
        a
        determination that the real property to which such document relates is a
        Mortgaged Property. The Trustee shall have no duty hereunder with respect
        to any
        Notice it may receive or which may be alleged to have been delivered to or
        served upon it unless such Notice is delivered to it or served upon it at
        its
        Corporate Trust Office and such Notice contains the information required
        pursuant to clause (ii) of the preceding sentence.

       

      No
        provision of this Agreement shall be construed to relieve the Trustee or
        the
        Securities Administrator from liability for its own negligent action, its
        own
        negligent failure to act or its own misconduct; provided,
        however,
        that:

       

      (i)  Prior
        to
        the occurrence of a Master Servicer Event of Default, and after the curing
        or
        waiver of all such Master Servicer Events of Default which may have occurred
        with respect to the Trustee and at all times with respect to the Securities
        Administrator, the duties and obligations of the Trustee shall be determined
        solely by the express provisions of this Agreement, neither the Trustee nor
        the
        Securities Administrator shall be liable except for the performance of such
        duties and obligations as are specifically set forth in this Agreement, no
        implied covenants or obligations shall be read into this Agreement against
        the
        Trustee or the Securities Administrator and, in the absence of bad faith
        on the
        part of the Trustee or the Securities Administrator, respectively, the Trustee
        or the Securities Administrator, respectively, may conclusively rely, as
        to the
        truth of the statements and the correctness of the opinions expressed therein,
        upon any certificates or opinions furnished to the Trustee or the Securities
        Administrator, respectively, that conform to the requirements of this
        Agreement;

       

      (ii)  Neither
        the Trustee nor the Securities Administrator shall be liable for an error
        of
        judgment made in good faith by a Responsible Officer or Responsible Officers
        of
        the Trustee or an officer or officers of the Securities Administrator,
        respectively, unless it shall be proved that the Trustee or the Securities
        Administrator, respectively, was negligent in ascertaining the pertinent
        facts;
        and

       

      (iii)  Neither
        the Trustee nor the Securities Administrator shall be liable with respect
        to any
        action taken, suffered or omitted to be taken by it in good faith in accordance
        with the direction of the Holders of Certificates entitled to at least 25%
        of
        the Voting Rights relating to the time, method and place of conducting any
        proceeding for any remedy available to the Trustee or the Securities
        Administrator or exercising any trust or power conferred upon the Trustee
        or the
        Securities Administrator under this Agreement.

       

      SECTION
        9.02  Certain
        Matters Affecting Trustee and Securities Administrator.

       

      (a)  Except
        as
        otherwise provided in Section 9.01 of this Agreement:

       

      (i)  Before
        taking any action hereunder, the Trustee and the Securities Administrator
        may
        request and rely upon and shall be protected in acting or refraining from
        acting
        upon any resolution, Officers’ Certificate, certificate of auditors or any other
        certificate, statement, instrument, opinion, report, notice, request, consent,
        order, appraisal, bond or other paper or document reasonably believed by
        it to
        be genuine and to have been signed or presented by the proper party or
        parties;

       

      (ii)  The
        Trustee and the Securities Administrator may consult with counsel of its
        selection and any advice of such counsel or any Opinion of Counsel shall
        be full
        and complete authorization and protection in respect of any action taken
        or
        suffered or omitted by it hereunder in good faith and in accordance with
        such
        advice or Opinion of Counsel;

       

      (iii)  Neither
        the Trustee nor the Securities Administrator shall be under any obligation
        to
        exercise any of the trusts or powers vested in it by this Agreement or to
        institute, conduct or defend any litigation hereunder or in relation hereto
        at
        the request, order or direction of any of the Certificateholders, pursuant
        to
        the provisions of this Agreement, unless such Certificateholders shall have
        offered to the Trustee or the Securities Administrator, as the case may be,
        reasonable security or indemnity satisfactory to it against the costs, expenses
        and liabilities which may be incurred therein or thereby; nothing contained
        herein shall, however, relieve the Trustee of the obligation, upon the
        occurrence of a Master Servicer Event of Default (which has not been cured
        or
        waived), to exercise such of the rights and powers vested in it by this
        Agreement, and to use the same degree of care and skill in their exercise
        as a
        prudent person would exercise or use under the circumstances in the conduct
        of
        such person’s own affairs;

       

      (iv)  Neither
        the Trustee nor the Securities Administrator shall be liable for any action
        taken, suffered or omitted by it in good faith and believed by it to be
        authorized or within the discretion or rights or powers conferred upon it
        by
        this Agreement;

       

      (v)  Prior
        to
        the occurrence of a Master Servicer Event of Default hereunder and after
        the
        curing or waiver of all Master Servicer Events of Default which may have
        occurred with respect to the Trustee and at all times with respect to the
        Securities Administrator, neither the Trustee nor the Securities Administrator
        shall be bound to make any investigation into the facts or matters stated
        in any
        resolution, certificate, statement, instrument, opinion, report, notice,
        request, consent, order, approval, bond or other paper or document, unless
        requested in writing to do so by the Holders of Certificates entitled to
        at
        least 25% of the Voting Rights; provided,
        however,
        that if
        the payment within a reasonable time to the Trustee or the Securities
        Administrator of the costs, expenses or liabilities likely to be incurred
        by it
        in the making of such investigation is, in the opinion of the Trustee or
        the
        Securities Administrator, as applicable, not reasonably assured to the Trustee
        or the Securities Administrator by such Certificateholders, the Trustee or
        the
        Securities Administrator, as applicable, may require reasonable indemnity
        satisfactory to it against such expense, or liability from such
        Certificateholders as a condition to taking any such action;

       

      (vi)  The
        Trustee may execute any of the trusts or powers hereunder or perform any
        duties
        hereunder either directly or by or through agents or attorneys and the Trustee
        shall not be responsible for any misconduct or negligence on the part of
        any
        agent or attorney appointed with due care by it hereunder;

       

      (vii)  The
        Trustee shall not be liable for any loss resulting from (a) the investment
        of
        funds held in any Collection Account or the Custodial Account, (b) the
        investment of funds held in the Reserve Fund, (c) the investment of funds
        in the
        Distribution Account or (d) the redemption or sale of any such investment
        as
        therein authorized;

       

      (viii)  The
        Trustee shall not be deemed to have notice of any default, Master Servicer
        Event
        of Default or Servicer Event of Default unless a Responsible Officer of the
        Trustee has actual knowledge thereof or unless written notice of any event
        which
        is in fact such a default is received by a Responsible Officer of the Trustee
        at
        the Corporate Trust Office of the Trustee, and such notice references the
        Certificates and this Agreement; and

       

      (ix)  The
        rights, privileges, protections, immunities and benefits given to the Trustee,
        including, without limitation, its right to be indemnified, are extended
        to, and
        shall be enforceable by, each agent, custodian and other Person employed
        to act
        hereunder.

       

      (b)  All
        rights of action under this Agreement or under any of the Certificates,
        enforceable by the Trustee, may be enforced by it without the possession
        of any
        of the Certificates, or the production thereof at the trial or other proceeding
        relating thereto, and any such suit, action or proceeding instituted by the
        Trustee shall be brought in its name for the benefit of all the Holders of
        such
        Certificates, subject to the provisions of this Agreement.

       

      (c)  [Reserved].

       

      (d)  None
        of
        the Securities Administrator, the Master Servicer, the Servicers, the Sponsor,
        the Depositor, the Custodians or the Trustee shall be responsible for the
        acts
        or omissions of the others, it being understood that this Agreement shall
        not be
        construed to render those partners joint venturers or agents of one
        another.

       

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

       

      The
        recitals contained herein and in the Certificates (other than the signature
        of
        the Securities Administrator, the authentication of the Securities Administrator
        on the Certificates, the acknowledgments of the Trustee contained in Article
        II
        and the representations and warranties of the Trustee in Section 9.12 of
        this Agreement) shall be taken as the statements of the Depositor and neither
        the Trustee nor the Securities Administrator assumes any responsibility for
        their correctness. Neither the Trustee nor the Securities Administrator makes
        any representations or warranties as to the validity or sufficiency of this
        Agreement (other than as specifically set forth in Section 9.12 of this
        Agreement) or of the Certificates (other than the signature of the Securities
        Administrator and authentication of the Securities Administrator on the
        Certificates) or of any Mortgage Loan or related document. The Trustee and
        the
        Securities Administrator shall not be accountable for the use or application
        by
        the Depositor of any of the Certificates or of the proceeds of such
        Certificates, or for the use or application of any funds paid to the Depositor
        or the Master Servicer in respect of the Mortgage Loans or deposited in or
        withdrawn from any Collection Account or the Custodial Account by the related
        Servicer, other than with respect to the Securities Administrator any funds
        held
        by it or on behalf of the Trustee in accordance with Section 3.23 and
        Section 3.24 of this Agreement.

       

      SECTION
        9.04  Trustee
        and Securities Administrator May Own Certificates.

       

      Each
        of
        the Trustee and the Securities Administrator in its individual capacity or
        any
        other capacity may become the owner or pledgee of Certificates and may transact
        business with other interested parties and their Affiliates with the same
        rights
        it would have if it were not Trustee or the Securities
        Administrator.

       

      SECTION
        9.05  Fees
        and Expenses of Trustee, Custodians and Securities
        Administrator.

       

      The
        fees
        of the Trustee and the Securities Administrator hereunder and of Wells Fargo
        as
        the Custodian under the Wells Fargo Custodial Agreement and of DBNTC as the
        Custodian under the DBNTC Custodial Agreement and of U.S. Bank as Custodian
        under the U.S. Bank Custodial Agreement shall be paid in accordance with
        a side
        letter agreement with the Master Servicer and at the sole expense of the
        Master
        Servicer. In addition, the Trustee, the Securities Administrator, the Custodians
        and any director, officer, employee or agent of the Trustee, the Securities
        Administrator and the Custodians shall be indemnified by the Trust and held
        harmless against any loss, liability or expense (including reasonable attorney’s
        fees and expenses) incurred by the Trustee, the Custodians or the Securities
        Administrator in connection with any claim or legal action or any pending
        or
        threatened claim or legal action arising out of or in connection with the
        acceptance or administration of its respective obligations and duties under
        this
        Agreement, including any and all other agreements related hereto, other than
        any
        loss, liability or expense (i) for which the Trustee is indemnified by the
        Master Servicer or any Servicer, (ii) that constitutes a specific liability
        of
        the Trustee or the Securities Administrator pursuant to Section 11.01(g) of
        this Agreement or (iii) any loss, liability or expense incurred by reason
        of
        willful misfeasance, bad faith or negligence in the performance of duties
        hereunder by the Trustee or the Securities Administrator or by reason of
        reckless disregard of obligations and duties hereunder. In no event shall
        the
        Trustee, the Custodians, the Master Servicer or the Securities Administrator
        be
        liable for special, indirect or consequential loss or damage of any kind
        whatsoever (including but not limited to lost profits), even if it has been
        advised of the likelihood of such loss or damage and regardless of the form
        of
        action. The Master Servicer agrees to indemnify the Trustee, from, and hold
        the
        Trustee harmless against, any loss, liability or expense (including reasonable
        attorney’s fees and expenses) incurred by the Trustee by reason of the Master
        Servicer’s willful misfeasance, bad faith or gross negligence in the performance
        of its duties under this Agreement or by reason of the Master Servicer’s
        reckless disregard of its obligations and duties under this Agreement. In
        addition, the Sponsor agrees to indemnify the Trustee for, and to hold the
        Trustee harmless against, any loss, liability or expense arising out of,
        or in
        connection with, the provisions set forth in the last paragraph of
        Section 2.01 of this Agreement, including, without limitation, all costs,
        liabilities and expenses (including reasonable legal fees and expenses) of
        investigating and defending itself against any claim, action or proceeding,
        pending or threatened, relating to the provisions of such paragraph. The
        indemnities in this Section 9.05 shall survive the termination or discharge
        of this Agreement and the resignation or removal of the Master Servicer,
        the
        Trustee, the Securities Administrator or the Custodians. Any payment under
        this
        Section 9.05 made by the Master Servicer to the Trustee in respect of the
        Trustee’s fees or the Master Servicer’s indemnification obligation to the
        Trustee shall be from the Master Servicer’s own funds, without reimbursement
        from REMIC I therefor.

       

      SECTION
        9.06  Eligibility
        Requirements for Trustee and Securities Administrator.

       

      The
        Trustee and the Securities Administrator shall at all times be a corporation
        or
        an association (other than the Depositor, the Sponsor, the Master Servicer
        or
        any Affiliate of the foregoing) organized and doing business under the laws
        of
        any state or the United States of America, authorized under such laws to
        exercise corporate trust powers, having a combined capital and surplus of
        at
        least $50,000,000 (or a member of a bank holding company whose capital and
        surplus is at least $50,000,000) and subject to supervision or examination
        by
        federal or state authority. If such corporation or association publishes
        reports
        of conditions at least annually, pursuant to law or to the requirements of
        the
        aforesaid supervising or examining authority, then for the purposes of this
        Section the combined capital and surplus of such corporation or association
        shall be deemed to be its combined capital and surplus as set forth in its
        most
        recent report of conditions so published. In case at any time the Trustee
        or the
        Securities Administrator, as applicable, shall cease to be eligible in
        accordance with the provisions of this Section, the Trustee or the Securities
        Administrator, as applicable, shall resign immediately in the manner and
        with
        the effect specified in Section 9.07 of this Agreement.

       

      Additionally,
        the Securities Administrator (i) may not be an originator, Master Servicer,
        Servicer, the Depositor or an affiliate of the Depositor unless the Securities
        Administrator is in an institutional trust department, (ii) must be authorized
        to exercise corporate trust powers under the laws of its jurisdiction of
        organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch
        is a
        Rating Agency, or the equivalent rating by S&P (or such rating acceptable to
        Fitch pursuant to a rating confirmation). If no successor securities
        administrator shall have been appointed and shall have accepted appointment
        within 60 days after Wells Fargo Bank, National Association, as Securities
        Administrator, ceases to be the securities administrator pursuant to this
        Section 9.06, then the Trustee shall perform the duties of the Securities
        Administrator pursuant to this Agreement. The Trustee shall notify the Rating
        Agencies of any change of Securities Administrator. Notwithstanding the above,
        the Trustee may, if it shall be unwilling to so act, or shall, if it is unable
        to so act, promptly appoint or petition a court of competent jurisdiction
        to
        appoint, a Person that satisfies the eligibility criteria set forth herein
        as
        the Trustee under this Agreement in the assumption of all or any part of
        the
        responsibilities, duties or liabilities of the Trustee under this
        Agreement.

       

      SECTION
        9.07  Resignation
        and Removal of Trustee and Securities Administrator.

       

      The
        Trustee and the Securities Administrator may at any time resign and be
        discharged from the trust hereby created by giving written notice thereof
        to the
        Depositor, to the Master Servicer, to the Securities Administrator (or the
        Trustee, if the Securities Administrator resigns) and to the Certificateholders.
        Upon receiving such notice of resignation, the Depositor shall promptly appoint
        a successor trustee or successor securities administrator by written instrument,
        in duplicate, which instrument shall be delivered to the resigning Trustee
        or
        Securities Administrator, as applicable, and to the successor trustee or
        successor securities administrator, as applicable. A copy of such instrument
        shall be delivered to the Certificateholders, the Trustee, the Securities
        Administrator and the Master Servicer by the Depositor. If no successor trustee
        or successor securities administrator shall have been so appointed and have
        accepted appointment within thirty (30) days after the giving of such notice
        of
        resignation, the resigning Trustee or Securities Administrator, as the case
        may
        be, may, at the expense of the Trust Fund, petition any court of competent
        jurisdiction for the appointment of a successor trustee, successor securities
        administrator, Trustee or Securities Administrator, as applicable.

       

      If
        at any
        time the Trustee or the Securities Administrator shall cease to be eligible
        in
        accordance with the provisions of Section 9.06 of this Agreement and shall
        fail to resign after written request therefor by the Depositor, or if at
        any
        time the Trustee or the Securities Administrator shall become incapable of
        acting, or shall be adjudged bankrupt or insolvent, or a receiver of the
        Trustee
        or the Securities Administrator or of its property shall be appointed, or
        any
        public officer shall take charge or control of the Trustee or the Securities
        Administrator or of its property or affairs for the purpose of rehabilitation,
        conservation or liquidation, then the Depositor may remove the Trustee or
        the
        Securities Administrator, as applicable and appoint a successor trustee or
        successor securities administrator, as applicable, by written instrument,
        in
        duplicate, which instrument shall be delivered to the Trustee or the Securities
        Administrator so removed and to the successor trustee or successor securities
        administrator. A copy of such instrument shall be delivered to the
        Certificateholders, the Trustee, the Securities Administrator and the Master
        Servicer by the Depositor.

       

      The
        Holders of Certificates entitled to at least 51% of the Voting Rights may
        at any
        time remove the Trustee or the Securities Administrator and appoint a successor
        trustee or successor securities administrator by written instrument or
        instruments, in triplicate, signed by such Holders or their attorneys-in-fact
        duly authorized, one complete set of which instruments shall be delivered
        to the
        Depositor, one complete set to the Trustee or the Securities Administrator
        so
        removed and one complete set to the successor so appointed. A copy of such
        instrument shall be delivered to the Certificateholders, the Trustee (in
        the
        case of the removal of the Securities Administrator), the Securities
        Administrator (in the case of the removal of the Trustee) and the Master
        Servicer by the Depositor.

       

      Any
        resignation or removal of the Trustee or the Securities Administrator and
        appointment of a successor trustee or successor securities administrator
        pursuant to any of the provisions of this Section shall not become effective
        until acceptance of appointment by the successor trustee or successor securities
        administrator, as applicable, as provided in Section 9.08.

       

      Notwithstanding
        anything to the contrary contained herein, the Master Servicer and the
        Securities Administrator shall at all times be the same Person.

       

      SECTION
        9.08  Successor
        Trustee or Securities Administrator.

       

      Any
        successor trustee or successor securities administrator appointed as provided
        in
        Section 9.07 of this Agreement shall execute, acknowledge and deliver to
        the Depositor and its predecessor trustee or predecessor securities
        administrator an instrument accepting such appointment hereunder, and thereupon
        the resignation or removal of the predecessor trustee or predecessor securities
        administrator shall become effective and such successor trustee or successor
        securities administrator without any further act, deed or conveyance, shall
        become fully vested with all the rights, powers, duties and obligations of
        its
        predecessor hereunder, with the like effect as if originally named as trustee
        or
        securities administrator herein. The predecessor trustee or predecessor
        securities administrator shall deliver to the successor trustee or successor
        securities administrator all Mortgage Loan Documents and related documents
        and
        statements to the extent held by it hereunder, as well as all monies, held
        by it
        hereunder, and the Depositor and the predecessor trustee or predecessor
        securities administrator shall execute and deliver such instruments and do
        such
        other things as may reasonably be required for more fully and certainly vesting
        and confirming in the successor trustee or successor securities administrator
        all such rights, powers, duties and obligations.

       

      No
        successor trustee or successor securities administrator shall accept appointment
        as provided in this Section unless at the time of such acceptance such successor
        trustee or successor securities administrator shall be eligible under the
        provisions of Section 9.06 and the appointment of such successor trustee or
        successor securities administrator shall not result in a downgrading of any
        Class of Certificates by any Rating Agency, as evidenced by a letter from
        each
        Rating Agency.

       

      Upon
        acceptance of appointment by a successor trustee or successor securities
        administrator as provided in this Section, the Depositor shall mail notice
        of
        the succession of such trustee hereunder to all Holders of Certificates at
        their
        addresses as shown in the Certificate Register. If the Depositor fails to
        mail
        such notice within ten (10) days after acceptance of appointment by the
        successor trustee or successor securities administrator, the successor trustee
        or successor securities administrator shall cause such notice to be mailed
        at
        the expense of the Depositor.

       

      SECTION
        9.09  Merger
        or Consolidation of Trustee or Securities Administrator.

       

      Any
        corporation or association into which the Trustee or the Securities
        Administrator may be merged or converted or with which it may be consolidated
        or
        any corporation or association resulting from any merger, conversion or
        consolidation to which the Trustee or the Securities Administrator shall
        be a
        party, or any corporation or association succeeding to the business of the
        Trustee or the Securities Administrator shall be the successor of the Trustee
        or
        the Securities Administrator hereunder, provided such corporation or association
        shall be eligible under the provisions of Section 9.06 of this Agreement,
        without the execution or filing of any paper or any further act on the part
        of
        any of the parties hereto, anything herein to the contrary
        notwithstanding.

       

      SECTION
        9.10  Appointment
        of Co-Trustee or Separate Trustee.

       

      Notwithstanding
        any other provisions hereof, at any time, for the purpose of meeting any
        legal
        requirements of any jurisdiction in which any part of the REMIC I or property
        securing the same may at the time be located, the Trustee shall have the
        power
        and shall execute and deliver all instruments to appoint one or more Persons
        approved by the Trustee to act as co-trustee or co-trustees, jointly with
        the
        Trustee, or separate trustee or separate trustees, of all or any part of
        REMIC
        I, and to vest in such Person or Persons, in such capacity, and for the benefit
        of the Holders of the Certificates, such title to REMIC I, or any part thereof,
        and, subject to the other provisions of this Section 9.10, such powers,
        duties, obligations, rights and trusts as the Trustee may consider necessary
        or
        desirable. No co-trustee or separate trustee hereunder shall be required
        to meet
        the terms of eligibility as a successor trustee under Section 9.06
        hereunder and no notice to Holders of Certificates of the appointment of
        co-trustee(s) or separate trustee(s) shall be required under Section 9.08
        hereof.

       

      In
        the
        case of any appointment of a co-trustee or separate trustee pursuant to this
        Section 9.10 all rights, powers, duties and obligations conferred or
        imposed upon the Trustee shall be conferred or imposed upon and exercised
        or
        performed by the Trustee and such separate trustee or co-trustee jointly,
        except
        to the extent that under any law of any jurisdiction in which any particular
        act
        or acts are to be performed by the Trustee (whether as Trustee hereunder
        or as
        successor to a defaulting Master Servicer hereunder), the Trustee shall be
        incompetent or unqualified to perform such act or acts, in which event such
        rights, powers, duties and obligations (including the holding of title to
        REMIC
        I or any portion thereof in any such jurisdiction) shall be exercised and
        performed by such separate trustee or co-trustee at the direction of the
        Trustee.

       

      Any
        notice, request or other writing given to the Trustee shall be deemed to
        have
        been given to each of the then separate trustees and co-trustees, as effectively
        as if given to each of them. Every instrument appointing any separate trustee
        or
        co-trustee shall refer to this Agreement and the conditions of this Article
        IX.
        Each separate trustee and co-trustee, upon its acceptance of the trust
        conferred, shall be vested with the estates or property specified in its
        instrument of appointment, either jointly with the Trustee, or separately,
        as
        may be provided therein, subject to all the provisions of this Agreement,
        specifically including every provision of this Agreement relating to the
        conduct
        of, affecting the liability of, or affording protection to, the Trustee.
        Every
        such instrument shall be filed with the Trustee.

       

      Any
        separate trustee or co-trustee may, at any time, constitute the Trustee,
        its
        agent or attorney-in-fact, with full power and authority, to the extent not
        prohibited by law, to do any lawful act under or in respect of this Agreement
        on
        its behalf and in its name. If any separate trustee or co-trustee shall die,
        become incapable of acting, resign or be removed, all of its estates,
        properties, rights, remedies and trusts shall vest in and be exercised by
        the
        Trustee, to the extent permitted by law, without the appointment of a new
        or
        successor trustee or co-trustee.

       

      SECTION
        9.11  Appointment
        of Office or Agency.

       

      The
        Certificates may be surrendered for registration of transfer or exchange
        at the
        Securities Administrator’s office located at Sixth Street and Marquette Avenue,
        Minneapolis, Minnesota 55479, and presented for final distribution at the
        Corporate Trust Office of the Securities Administrator where notices and
        demands
        to or upon the Securities Administrator in respect of the Certificates and
        this
        Agreement may be served.

       

      SECTION
        9.12  Representations
        and Warranties.

       

      The
        Trustee hereby represents and warrants to the Master Servicer, the Securities
        Administrator, the Servicers and the Depositor as applicable, as of the Closing
        Date, that:

       

      (i)  It
        is a
        national banking association duly organized, validly existing and in good
        standing under the laws of the United States of America.

       

      (ii)  The
        execution and delivery of this Agreement by it, and the performance and
        compliance with the terms of this Agreement by it, will not violate its articles
        of association or bylaws or constitute a default (or an event which, with
        notice
        or lapse of time, or both, would constitute a default) under, or result in
        the
        breach of, any material agreement or other instrument to which it is a party
        or
        which is applicable to it or any of its assets.

       

      (iii)  It
        has
        the full power and authority to enter into and consummate all transactions
        contemplated by this Agreement, has duly authorized the execution, delivery
        and
        performance of this Agreement, and has duly executed and delivered this
        Agreement.

       

      (iv)  This
        Agreement, assuming due authorization, execution and delivery by the other
        parties hereto, constitutes a valid, legal and binding obligation of it,
        enforceable against it in accordance with the terms hereof, subject to (A)
        applicable bankruptcy, insolvency, receivership, reorganization, moratorium
        and
        other laws affecting the enforcement of creditors’ rights generally, and (B)
        general principles of equity, regardless of whether such enforcement is
        considered in a proceeding in equity or at law.

       

      (v)  It
        is not
        in violation of, and its execution and delivery of this Agreement and its
        performance and compliance with the terms of this Agreement will not constitute
        a violation of, any law, any order or decree of any court or arbiter, or
        any
        order, regulation or demand of any federal, state or local governmental or
        regulatory authority, which violation, in its good faith and reasonable
        judgment, is likely to affect materially and adversely either the ability
        of it
        to perform its obligations under this Agreement or its financial
        condition.

       

      (vi)  No
        litigation is pending or, to the best of its knowledge, threatened against
        it,
        which would prohibit it from entering into this Agreement or, in its good
        faith
        reasonable judgment, is likely to materially and adversely affect either
        the
        ability of it to perform its obligations under this Agreement or its financial
        condition.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

          
        ARTICLE X  

       

      TERMINATION

       

      SECTION
        10.01  Termination
        Upon Repurchase or Liquidation of All Mortgage Loans.

       

      (a)  Subject
        to Section 10.02 of this Agreement, the respective obligations and
        responsibilities under this Agreement of the Depositor, the Master Servicer,
        the
        Securities Administrator, the Servicers and the Trustee (other than the
        obligations of the Master Servicer to the Trustee pursuant to Section 9.05
        of this Agreement and of the Servicers to make remittances to the Securities
        Administrator and the Securities Administrator to make payments in respect
        of
        the REMIC I Regular Interests, REMIC I Regular Interests or the Classes of
        Certificates as hereinafter set forth) shall terminate upon payment to the
        Certificateholders and the deposit of all amounts held by or on behalf of
        the
        Trustee and required hereunder to be so paid or deposited on the Distribution
        Date coinciding with or following the earlier to occur of (i) the purchase
        by
        the Terminator (as defined below) of all Mortgage Loans and each REO Property
        remaining in REMIC I and (ii) the final payment or other liquidation (or
        any
        advance with respect thereto) of the last Mortgage Loan or REO Property
        remaining in REMIC I; provided,
        however,
        that in
        no event shall the trust created hereby continue beyond the earlier of (a)
        the
        expiration of 21 years from the death of the last survivor of the descendants
        of
        Joseph P. Kennedy, the late ambassador of the United States to the Court
        of St.
        James, living on the date hereof and (b) the Last Scheduled Distribution
        Date.
        The purchase by the Terminator (defined below) of all Mortgage Loans and
        each
        REO Property remaining in REMIC I shall be at a price (the “Termination Price”)
        equal to the sum of (i) the greater of (A) the aggregate Purchase Price of
        all
        the Mortgage Loans included in REMIC I, plus the appraised value of each
        REO
        Property, if any, included in REMIC I, such appraisal to be conducted by
        an
        appraiser mutually agreed upon by the Master Servicer and the Trustee in
        their
        reasonable discretion and (B) the aggregate fair market value of all of the
        assets of REMIC I (as determined by the Master Servicer, as of the close
        of
        business on the third Business Day next preceding the date upon which notice
        of
        any such termination is furnished to Certificateholders pursuant to the third
        paragraph of this Section 10.01) plus (ii) any amounts due the Servicers
        and the Master Servicer in respect of unpaid Servicing Fees and outstanding
        P&I Advances and Servicing Advances.

       

      (b)  The
        Master Servicer or, if the Master Servicer fails to exercise such optional
        termination right, Ocwen (either the Master Servicer or Ocwen, the “Terminator”)
        shall have the right to purchase all of the Mortgage Loans and each REO Property
        remaining in REMIC I pursuant to clause (i) of the preceding paragraph no
        later
        than the Determination Date in the month immediately preceding the Distribution
        Date on which the Certificates will be retired; provided, however, that the
        Terminator may elect to purchase all of the Mortgage Loans and each REO Property
        remaining in REMIC I pursuant to clause (i) above only if the aggregate
        Scheduled Principal Balance of the Mortgage Loans and each REO Property
        remaining in the Trust Fund at the time of such election is reduced to less
        than
        or equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage
        Loans as of the Cut-off Date. By acceptance of the Residual Certificates,
        the
        Holder of the Residual Certificates agrees, in connection with any termination
        hereunder, to assign and transfer any portion of the Termination Price in
        excess
        of par, and to the extent received in respect of such termination, to pay
        any
        such amounts to the Holders of the Class CE-1 Certificates. Notwithstanding
        the
        foregoing, the optional termination right may only be exercised by Ocwen
        if (1)
        Ocwen receives written notification from the Master Servicer that the Master
        Servicer will not exercise such optional termination right or (2) Ocwen does
        not
        receive such written notification from the Master Servicer, and the Master
        Servicer fails to exercise its optional termination right by the third
        Distribution Date following the date such right became exercisable; provided,
        however, in no event shall Ocwen exercise its optional termination right
        under
        (1) or (2) above unless it first provides written notice to the Authorized
        Officers of the Sponsor that it intends to exercise such optional termination
        right.

       

      (c)  Notice
        of
        the liquidation of the Certificates shall be given promptly by the Securities
        Administrator by letter to the Certificateholders mailed (a) in the event
        such
        notice is given in connection with the purchase of the Mortgage Loans and
        each
        REO Property by the Terminator, not earlier than the 15th day and not later
        than
        the 25th day of the month next preceding the month of the final distribution
        on
        the Certificates or (b) otherwise during the month of such final distribution
        on
        or before the Determination Date in such month, in each case specifying (i)
        the
        Distribution Date upon which the Trust Fund will terminate and the final
        payment
        in respect of the REMIC I Regular Interests or the Certificates will be made
        upon presentation and surrender of the related Certificates at the office
        of the
        Securities Administrator therein designated, (ii) the amount of any such
        final
        payment, (iii) that no interest shall accrue in respect of the REMIC I Regular
        Interests or the Certificates from and after the Interest Accrual Period
        relating to the final Distribution Date therefor and (iv) that the Record
        Date
        otherwise applicable to such Distribution Date is not applicable, payments
        being
        made only upon presentation and surrender of the Certificates at the office
        of
        the Securities Administrator. In the event such notice is given in connection
        with the purchase of all of the Mortgage Loans and each REO Property remaining
        in REMIC I by the Terminator, the Terminator shall deliver to the Securities
        Administrator for deposit in the Distribution Account not later than the
        Business Day prior to the Distribution Date on which the final distribution
        on
        the Certificates an amount in immediately available funds equal to the
        above-described Termination Price. The Securities Administrator shall remit
        to
        the Servicers, the Master Servicer, the Trustee and the applicable Custodian
        from such funds deposited in the Distribution Account (i) any amounts which
        the
        related Servicer would be permitted to withdraw and retain from the Custodial
        Account pursuant to the Servicing Agreement or from the related Collection
        Account pursuant to Section 3.09 of this Agreement, as applicable, as if
        such funds had been deposited therein (including all unpaid Servicing Fees,
        Master Servicer Fees and all outstanding P&I Advances and Servicing
        Advances) and (ii) any other amounts otherwise payable by the Securities
        Administrator to the Master Servicer, the Trustee, the applicable Custodian
        and
        the Servicers from amounts on deposit in the Distribution Account pursuant
        to
        the terms of this Agreement or the Servicing Agreement prior to making any
        final
        distributions pursuant to Section 10.01(d) below. Upon certification to the
        Trustee by the Securities Administrator of the making of such final deposit,
        the
        Trustee shall promptly release or cause to be released to the Terminator
        the
        Mortgage Files for the remaining Mortgage Loans, and Trustee shall execute
        all
        assignments, endorsements and other instruments delivered to it and necessary
        to
        effectuate such transfer.

       

      (d)  Upon
        presentation of the Certificates by the Certificateholders on the final
        Distribution Date, the Securities Administrator shall distribute to each
        Certificateholder so presenting and surrendering its Certificates the amount
        otherwise distributable on such Distribution Date in accordance with
        Section 5.01 in respect of the Certificates so presented and surrendered.
        Any funds not distributed to any Holder or Holders of Certificates being
        retired
        on such Distribution Date because of the failure of such Holder or Holders
        to
        tender their Certificates shall, on such date, be set aside and held in trust
        and credited to the account of the appropriate non-tendering Holder or Holders.
        If any Certificates as to which notice has been given pursuant to this
        Section 10.01 shall not have been surrendered for cancellation within six
        months after the time specified in such notice, the Securities Administrator
        shall mail a second notice to the remaining non-tendering Certificateholders
        to
        surrender their Certificates for cancellation in order to receive the final
        distribution with respect thereto. If within one year after the second notice
        all such Certificates shall not have been surrendered for cancellation, the
        Securities Administrator shall, directly or through an agent, mail a final
        notice to the remaining non-tendering Certificateholders concerning surrender
        of
        their Certificates. The costs and expenses of maintaining the funds in trust
        and
        of contacting such Certificateholders shall be paid out of the assets remaining
        in the trust funds. If within one year after the final notice any such
        Certificates shall not have been surrendered for cancellation, the Securities
        Administrator shall pay to the Depositor all such amounts, and all rights
        of
        non-tendering Certificateholders in or to such amounts shall thereupon cease.
        No
        interest shall accrue or be payable to any Certificateholder on any amount
        held
        in trust by the Securities Administrator as a result of such Certificateholder’s
        failure to surrender its Certificate(s) on the final Distribution Date for
        final
        payment thereof in accordance with this Section 10.01. Any such amounts
        held in trust by the Securities Administrator shall be held uninvested in
        an
        Eligible Account.

       

      SECTION
        10.02  Additional
        Termination Requirements.

       

      (a)  In
        the
        event that the Terminator purchases all the Mortgage Loans and each REO Property
        or the final payment on or other liquidation of the last Mortgage Loan or
        REO
        Property remaining in REMIC I pursuant to Section 10.01, the Trust Fund
        shall be terminated in accordance with the following additional
        requirements:

       

      (i)  The
        Trustee shall specify the first day in the 90-day liquidation period in a
        statement attached to each Trust REMIC’s final Tax Return pursuant to Treasury
        regulation Section 1.860F-1 and shall satisfy all requirements of a
        qualified liquidation under Section 860F of the Code and any regulations
        thereunder, as evidenced by an Opinion of Counsel obtained by and at the
        expense
        of the Terminator;

       

      (ii)  During
        such 90-day liquidation period and, at or prior to the time of making of
        the
        final payment on the Certificates, the Trustee shall sell all of the assets
        of
        REMIC I to the Terminator for cash; and

       

      (iii) At
        the
        time of the making of the final payment on the Certificates, the Securities
        Administrator shall distribute or credit, or cause to be distributed or
        credited, to the Holders of the Residual Certificates all cash on hand in
        the
        Trust Fund (other than cash retained to meet claims), and the Trust Fund
        shall
        terminate at that time.

       

      (b)  At
        the
        expense of the Terminator (or, if the Trust Fund is being terminated as a
        result
        of the occurrence of the event described in clause (ii) of the first paragraph
        of Section 10.01, at the expense of the Trust Fund), the Terminator shall
        prepare or cause to be prepared the documentation required in connection
        with
        the adoption of a plan of liquidation of each Trust REMIC pursuant to this
        Section 10.02.

       

      (c)  By
        their
        acceptance of Certificates, the Holders thereof hereby agree to authorize
        the
        Trustee to specify the 90-day liquidation period for each Trust REMIC, which
        authorization shall be binding upon all successor
        Certificateholders.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        XI  

       

      REMIC
        PROVISIONS

       

      SECTION
        11.01  REMIC
        Administration.

       

      (a)  The
        Trustee shall elect to treat each Trust REMIC as a REMIC under the Code and,
        if
        necessary, under applicable state law. Each such election will be made by
        the
        Securities Administrator on Form 1066 or other appropriate federal tax or
        information return or any appropriate state return for the taxable year ending
        on the last day of the calendar year in which the Certificates are issued.
        For
        the purposes of the REMIC election in respect of REMIC I, the REMIC I Regular
        Interests shall be designated as the Regular Interests in REMIC I and the
        Class
        R-I Interest shall be designated as the Residual Interests in REMIC I. The
        Class
        A Certificates and the Mezzanine Certificates (exclusive of any right to
        receive
        payments from the Reserve Fund), the Class P Certificates, the Class CE-1
        Certificates and the Class CE-2 Certificates shall be designated as the Regular
        Interests in REMIC II and the Class R-II Interest shall be designated as
        the
        Residual Interests in REMIC II. The Trustee shall not permit the creation
        of any
“interests” in each Trust REMIC (within the meaning of Section 860G of the Code)
        other than the REMIC I Regular Interests and the interests represented by
        the
        Certificates.

       

      (b)  The
        Closing Date is hereby designated as the “Startup Day” of each Trust REMIC
        within the meaning of Section 860G(a)(9) of the Code.

       

      (c)  The
        Securities Administrator shall be reimbursed for any and all expenses relating
        to any tax audit of the Trust Fund (including, but not limited to, any
        professional fees or any administrative or judicial proceedings with respect
        to
        each Trust REMIC that involve the Internal Revenue Service or state tax
        authorities), including the expense of obtaining any tax related Opinion
        of
        Counsel except as specified herein. The Securities Administrator, as agent
        for
        each Trust REMIC’s tax matters person shall (i) act on behalf of the Trust Fund
        in relation to any tax matter or controversy involving any Trust REMIC and
        (ii)
        represent the Trust Fund in any administrative or judicial proceeding relating
        to an examination or audit by any governmental taxing authority with respect
        thereto. The holder of the largest Percentage Interest of each Class of Residual
        Certificates shall be designated, in the manner provided under Treasury
        regulations section 1.860F-4(d) and Treasury regulations section
        301.6231(a)(7)-1, as the tax matters person of the related REMIC created
        hereunder. By their acceptance thereof, the holder of the largest Percentage
        Interest of the Residual Certificates hereby agrees to irrevocably appoint
        the
        Securities Administrator or an Affiliate as its agent to perform all of the
        duties of the tax matters person for the Trust Fund.

       

      (d)  The
        Securities Administrator shall prepare and file and the Trustee shall sign
        all
        of the Tax Returns in respect of each REMIC created hereunder. The expenses
        of
        preparing and filing such returns shall be borne by the Securities Administrator
        without any right of reimbursement therefor.

       

      (e)  The
        Securities Administrator shall perform on behalf of each Trust REMIC all
        reporting and other tax compliance duties that are the responsibility of
        such
        REMIC under the Code, the REMIC Provisions or other compliance guidance issued
        by the Internal Revenue Service or any state or local taxing authority. Among
        its other duties, as required by the Code, the REMIC Provisions or other
        such
        compliance guidance, the Securities Administrator shall provide (i) to any
        Transferor of a Residual Certificate such information as is necessary for
        the
        application of any tax relating to the transfer of a Residual Certificate
        to any
        Person who is not a Permitted Transferee upon receipt of additional reasonable
        compensation, (ii) to the Certificateholders such information or reports
        as are
        required by the Code or the REMIC Provisions including reports relating to
        interest, original issue discount and market discount or premium (using the
        Prepayment Assumption as required) and (iii) to the Internal Revenue Service
        the
        name, title, address and telephone number of the person who will serve as
        the
        representative of each Trust REMIC. The Depositor shall provide or cause
        to be
        provided to the Securities Administrator, within ten (10) days after the
        Closing
        Date, all information or data that the Securities Administrator reasonably
        determines to be relevant for tax purposes as to the valuations and issue
        prices
        of the Certificates, including, without limitation, the price, yield, prepayment
        assumption and projected cash flow of the Certificates.

       

      (f)  To
        the
        extent in the control of the Trustee or the Securities Administrator, each
        such
        Person (i) shall take such action and shall cause each REMIC created hereunder
        to take such action as shall be necessary to create or maintain the status
        thereof as a REMIC under the REMIC Provisions, (ii) shall not take any action,
        cause the Trust Fund to take any action or fail to take (or fail to cause
        to be
        taken) any action that, under the REMIC Provisions, if taken or not taken,
        as
        the case may be, could (A) endanger the status of each Trust REMIC as a REMIC
        or
        (B) result in the imposition of a tax upon the Trust Fund (including but
        not
        limited to the tax on prohibited transactions as defined in
        Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
        forth in Section 860G(d) of the Code) (either such event, an “Adverse REMIC
        Event”) unless such action or inaction is permitted under this Agreement or the
        Trustee and the Securities Administrator have received an Opinion of Counsel,
        addressed to the them (at the expense of the party seeking to take such action
        but in no event at the expense of the Trustee or the Securities Administrator)
        to the effect that the contemplated action will not, with respect to any
        Trust
        REMIC, endanger such status or result in the imposition of such a tax, nor
        (iii)
        shall the Securities Administrator take or fail to take any action (whether
        or
        not authorized hereunder) as to which the Trustee has advised it in writing
        that
        it has received an Opinion of Counsel to the effect that an Adverse REMIC
        Event
        could occur with respect to such action; provided that the Securities
        Administrator may conclusively rely on such Opinion of Counsel and shall
        incur
        no liability for its action or failure to act in accordance with such Opinion
        of
        Counsel. In addition, prior to taking any action with respect to any Trust
        REMIC
        or the respective assets of each, or causing any Trust REMIC to take any
        action,
        which is not contemplated under the terms of this Agreement, the Securities
        Administrator will consult with the Trustee or its designee, in writing,
        with
        respect to whether such action could cause an Adverse REMIC Event to occur
        with
        respect to any Trust REMIC, and the Securities Administrator shall not take
        any
        such action or cause any Trust REMIC to take any such action as to which
        the
        Trustee has advised it in writing that an Adverse REMIC Event could occur.
        The
        Trustee may consult with counsel to make such written advice, and the cost
        of
        same shall be home by the party seeking to take the action not permitted
        by this
        Agreement, but in no event shall such cost be an expense of the
        Trustee.

       

      (g)  In
        the
        event that any tax is imposed on “prohibited transactions” of any REMIC created
        hereunder as defined in Section 860F(a)(2) of the Code, on the “net income
        from foreclosure property” of such REMIC as defined in Section 860G(c) of
        the Code, on any contributions to any such REMIC after the Startup Day therefor
        pursuant to Section 860G(d) of the Code, or any other tax is imposed by the
        Code or any applicable provisions of state or local tax laws, such tax shall
        be
        charged (i) to the Trustee pursuant to Section 11.03 of this Agreement, if
        such tax arises out of or results from a breach by the Trustee of any of
        its
        obligations under this Article XI, (ii) to the Securities Administrator pursuant
        to Section 11.03 of this Agreement, if such tax arises out of or results
        from a breach by the Securities Administrator of any of its obligations under
        this Article XI, (iii) to the Master Servicer pursuant to Section 11.03 of
        this Agreement, if such tax arises out of or results from a breach by the
        Master
        Servicer of any of its obligations under Article IV or under this Article
        XI,
        (iv) to the related Servicer pursuant to Section 11.03 of this Agreement,
        if such tax arises out of or results from a breach by a Servicer of any of
        its
        obligations under Article III or under this Article XI, or (v) in all other
        cases, against amounts on deposit in the Distribution Account and shall be
        paid
        by withdrawal therefrom.

       

      (h)  The
        Securities Administrator shall, for federal income tax purposes, maintain
        books
        and records with respect to each Trust REMIC on a calendar year and on an
        accrual basis.

       

      (i)  Following
        the Startup Day, neither the Securities Administrator nor the Trustee shall
        accept any contributions of assets to any Trust REMIC other than in connection
        with any Qualified Substitute Mortgage Loan delivered in accordance with
        Section 2.03 unless it shall have received an Opinion of Counsel to the
        effect that the inclusion of such assets in the Trust Fund will not cause
        the
        related REMIC to fail to qualify as a REMIC at any time that any Certificates
        are outstanding or subject such REMIC to any tax under the REMIC Provisions
        or
        other applicable provisions of federal, state and local law or
        ordinances.

       

      (j)  Neither
        the Trustee nor the Securities Administrator shall knowingly enter into any
        arrangement by which any Trust REMIC will receive a fee or other compensation
        for services nor permit either REMIC to receive any income from assets other
        than “qualified mortgages” as defined in Section 860G(a)(3) of the Code or
“permitted investments” as defined in Section 860G(a)(5) of the
        Code.

       

      (k)  The
        Securities Administrator shall apply for an employer identification number
        with
        the Internal Revenue Service via a Form SS-4 or other comparable method for
        each
        REMIC. In connection with the foregoing, the Securities Administrator shall
        provide the name and address of the person who can be contacted to obtain
        information required to be reported to the holders of Regular Interests in
        each
        REMIC as required by IRS Form 8811.

       

      SECTION
        11.02  Prohibited
        Transactions and Activities.

       

      None
        of
        the Depositor, any Servicer, the Securities Administrator, the Master Servicer
        or the Trustee shall sell, dispose of or substitute for any of the Mortgage
        Loans (except in connection with (i) the foreclosure of a Mortgage Loan,
        including but not limited to, the acquisition or sale of a Mortgaged Property
        acquired by deed in lieu of foreclosure, (ii) the bankruptcy of REMIC I,
        (iii)
        the termination of REMIC I pursuant to Article X of this Agreement, (iv)
        a
        substitution pursuant to Article II of this Agreement or (v) a purchase of
        Mortgage Loans pursuant to Article II of this Agreement), nor acquire any
        assets
        for any Trust REMIC (other than REO Property acquired in respect of a defaulted
        Mortgage Loan), nor sell or dispose of any investments in the Collection
        Accounts, the Custodial Account or the Distribution Account for gain, nor
        accept
        any contributions to any Trust REMIC after the Closing Date (other than a
        Qualified Substitute Mortgage Loan delivered in accordance with
        Section 2.03), unless it has received an Opinion of Counsel, addressed to
        the Trustee and the Securities Administrator (at the expense of the party
        seeking to cause such sale, disposition, substitution, acquisition or
        contribution but in no event at the expense of the Trustee) that such sale,
        disposition, substitution, acquisition or contribution will not (a) affect
        adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust
        REMIC
        to be subject to a tax on “prohibited transactions” or “contributions” pursuant
        to the REMIC Provisions.

       

      SECTION
        11.03  Indemnification.

       

      (a)  The
        Trustee agrees to be liable for any taxes and costs incurred by the Trust
        Fund,
        the Depositor, the Master Servicer, the Securities Administrator or the
        Servicers including,
        without
        limitation, any
        reasonable attorneys fees imposed on or incurred by the Trust Fund, the
        Depositor, the Master Servicer, the Securities Administrator or a Servicer
        as a
        result of the Trustee’s failure to perform its covenants set forth in this
        Article XI in accordance with the standard of care of the Trustee set forth
        in
        this Agreement.

       

      (b)  Each
        Servicer party hereto agrees to indemnify the Trust Fund, the Depositor,
        the
        Master Servicer, the Securities Administrator, the other Servicer and the
        Trustee for any taxes and costs including, without limitation, any reasonable
        attorneys’ fees imposed on or incurred by the Trust Fund, the Depositor, the
        Master Servicer, the Securities Administrator, the other Servicer or the
        Trustee, as a result of the related Servicer’s failure to perform its covenants
        set forth in Article III in accordance with the standard of care of such
        Servicer set forth in this Agreement.

       

      (c)  The
        Master Servicer agrees to indemnify the Trust Fund, the Depositor, each Servicer
        party hereto and the Trustee for any taxes and costs including, without
        limitation, any reasonable attorneys’ fees imposed on or incurred by the Trust
        Fund, the Depositor, the Servicers or the Trustee, as a result of the Master
        Servicer’s failure to perform its covenants set forth in Article IV in
        accordance with the standard of care of the Master Servicer set forth in
        this
        Agreement.

       

      (d)  The
        Securities Administrator agrees to be liable for any taxes and costs incurred
        by
        the Trust Fund, the Depositor, the Servicers which are a party hereto or
        the
        Trustee including, without limitation, any reasonable attorneys’ fees imposed on
        or incurred by the Trust Fund, the Depositor, a Servicer or the Trustee as
        a
        result of the Securities Administrator’s failure to perform its covenants set
        forth in this Article XI in accordance with the standard of care of the
        Securities Administrator set forth in this Agreement.

       

      (e)  Each
        of
        the Depositor, Master Servicer, Securities Administrator and any Servicing
        Function Participant engaged by such party, respectively, shall indemnify
        and
        hold harmless the Master Servicer, the Securities Administrator and the
        Depositor, respectively, and each of its directors, officers, employees,
        agents,
        and affiliates from and against any and all claims, losses, damages, penalties,
        fines, forfeitures, reasonable legal fees and related costs, judgments and
        other
        costs and expenses arising out of or based upon (a) any breach by such party
        of
        any if its obligations under hereunder, including particularly its obligations
        to provide any Assessment of Compliance, Attestation Report, Compliance
        Statement or any information, data or materials required to be included in
        any
        Exchange Act report, (b) any material misstatement or omission in any
        information, data or materials provided by such party (or, in the case of
        the
        Securities Administrator or Master Servicer, any material misstatement or
        material omission in (i) any Compliance Statement, Assessment of Compliance
        or
        Attestation Report delivered by it, or by any Servicing Function Participant
        engaged by it, pursuant to this Agreement, or (ii) any Additional Form 10-D
        Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure concerning
        the Master Servicer or the Securities Administrator), or (c) the negligence,
        bad
        faith or willful misconduct of such indemnifying party in connection with
        its
        performance hereunder. If the indemnification provided for in this Section
        11.03(e) is unavailable or insufficient to hold harmless the Master Servicer,
        the Securities Administrator or the Depositor, as the case may be, then each
        such party agrees that it shall contribute to the amount paid or payable
        by the
        Master Servicer, the Securities Administrator or the Depositor, as applicable,
        as a result of any claims, losses, damages or liabilities incurred by such
        party
        in such proportion as is appropriate to reflect the relative fault of the
        indemnified party on the one hand and the indemnifying party on the other.
        This
        indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        XII  

       

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        12.01  Amendment.

       

      This
        Agreement may be amended from time to time by the Depositor, Ocwen, Wells
        Fargo,
        the Master Servicer, the Securities Administrator and the Trustee, but without
        the consent of any of the Certificateholders, (i) to cure any ambiguity or
        defect, (ii) to correct, modify or supplement any provisions herein (including
        to give effect to the expectations of Certificateholders), (iii) to ensure
        compliance with Regulation AB, or (iv) to make any other provisions with
        respect
        to matters or questions arising under this Agreement which shall not be
        inconsistent with the provisions of this Agreement, and that such action
        shall
        not, as evidenced by an Opinion of Counsel delivered to the Trustee, adversely
        affect in any material respect the interests of any Certificateholder; provided
        that any such amendment shall be deemed not to adversely affect in any material
        respect the interests of the Certificateholders and no such Opinion of Counsel
        shall be required if the Person requesting such amendment obtains a letter
        from
        each Rating Agency stating that such amendment would not result in the
        downgrading or withdrawal of the respective ratings then assigned to the
        Certificates. No amendment shall be deemed to adversely affect in any material
        respect the interests of any Certificateholder who shall have consented thereto,
        and no Opinion of Counsel shall be required to address the effect of any
        such
        amendment on any such consenting Certificateholder.

       

      This
        Agreement may also be amended from time to time by the Depositor, Ocwen,
        Wells
        Fargo, the Master Servicer, the Securities Administrator and the Trustee
        with
        the consent of the Holders of Certificates entitled to at least 66% of the
        Voting Rights for the purpose of adding any provisions to or changing in
        any
        manner or eliminating any of the provisions of this Agreement or of modifying
        in
        any manner the rights of the Holders of Certificates; provided, however,
        that no
        such amendment shall (i) reduce in any manner the amount of, or delay the
        timing
        of, payments received on Mortgage Loans which are required to be distributed
        on
        any Certificate without the consent of the Holder of such Certificate, (ii)
        adversely affect in any material respect the interests of the Holders of
        any
        Class of Certificates in a manner, other than as described in (i), without
        the
        consent of the Holders of Certificates of such Class evidencing at least
        66% of
        the Voting Rights allocated to such Class, or (iii) modify the consents required
        by the immediately preceding clauses (i) and (ii) without the consent of
        the
        Holders of all Certificates then outstanding. Notwithstanding any other
        provision of this Agreement, for purposes of the giving or withholding of
        consents pursuant to this Section 12.01, Certificates registered in the
        name of the Depositor or a Servicer or any Affiliate thereof shall be entitled
        to Voting Rights with respect to matters affecting such Certificates. Without
        limiting the generality of the foregoing, any amendment to this Agreement
        required in connection with the compliance with or the clarification of any
        reporting obligations described in Section 5.06 hereof shall not require
        the consent of any Certificateholder and without the need for any Opinion
        of
        Counsel or Rating Agency confirmation.

       

      Notwithstanding
        any contrary provision of this Agreement, the Trustee shall not consent to
        any
        amendment to this Agreement unless it shall have first received an Opinion
        of
        Counsel to the effect that such amendment is permitted hereunder and will
        not
        result in the imposition of any tax on any Trust REMIC pursuant to the REMIC
        Provisions or cause any Trust REMIC to fail to qualify as a REMIC at any
        time
        that any Certificates are outstanding and that such amendment is authorized
        or
        permitted by this Agreement.

       

      Promptly
        after the execution of any such amendment the Trustee shall furnish a copy
        of
        such amendment to each Certificateholder.

       

      It
        shall
        not be necessary for the consent of Certificateholders under this
        Section 12.01 to approve the particular form of any proposed amendment, but
        it shall be sufficient if such consent shall approve the substance thereof.
        The
        manner of obtaining such consents and of evidencing the authorization of
        the
        execution thereof by Certificateholders shall be subject to such reasonable
        regulations as the Trustee may prescribe.

       

      The
        cost
        of any Opinion of Counsel to be delivered pursuant to this Section 12.01
        shall be borne by the Person seeking the related amendment, but in no event
        shall such Opinion of Counsel be an expense of the Trustee.

       

      The
        Trustee may, but shall not be obligated to enter into any amendment pursuant
        to
        this Section that affects its rights, duties and immunities under this
        Agreement or otherwise.

       

      SECTION
        12.02  Recordation
        of Agreement; Counterparts.

       

      To
        the
        extent permitted by applicable law, this Agreement (or an abstract hereof,
        if
        acceptable by the applicable recording office) is subject to recordation
        in all
        appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any or all of the properties subject
        to
        the Mortgages are situated, and in any other appropriate public recording
        office
        or elsewhere, such recordation to be effected by the Depositor at the expense
        of
        the Certificateholders, but only after the Depositor has delivered to the
        Trustee an Opinion of Counsel to the effect that such recordation materially
        and
        beneficially affects the interests of the Certificateholders.

       

      For
        the
        purpose of facilitating the recordation of this Agreement as herein provided
        and
        for other purposes, this Agreement may be executed simultaneously in any
        number
        of counterparts, each of which counterparts shall be deemed to be an original,
        and such counterparts shall constitute but one and the same
        instrument.

       

      SECTION
        12.03  Limitation
        on Rights of Certificateholders.

       

      The
        death
        or incapacity of any Certificateholder shall not operate to terminate this
        Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
        representatives or heirs to claim an accounting or to take any action or
        proceeding in any court for a partition or winding up of the Trust Fund,
        nor
        otherwise affect the rights, obligations and liabilities of the parties hereto
        or any of them.

       

      No
        Certificateholder shall have any right to vote (except as expressly provided
        for
        herein) or in any manner otherwise control the operation and management of
        the
        Trust Fund, or the obligations of the parties hereto, nor shall anything
        herein
        set forth, or contained in the terms of any of the Certificates, be construed
        so
        as to constitute the Certificateholders from time to time as partners or
        members
        of an association; nor shall any Certificateholder be under any liability
        to any
        third person by reason of any action taken by the parties to this Agreement
        pursuant to any provision hereof.

       

      No
        Certificateholder shall have any right by virtue of any provision of this
        Agreement to institute any suit, action or proceeding in equity or at law
        upon
        or under or with respect to this Agreement, unless such Holder previously
        shall
        have given to the Trustee a written notice of default and of the continuance
        thereof, as hereinbefore provided, and unless also the Holders of Certificates
        entitled to at least 25% of the Voting Rights shall have made written request
        upon the Trustee to institute such action, suit or proceeding in its own
        name as
        Trustee hereunder and shall have offered to the Trustee such reasonable
        indemnity as it may require against the costs, expenses and liabilities to
        be
        incurred therein or thereby, and the Trustee, for 15 days after its receipt
        of
        such notice, request and offer of indemnity, shall have neglected or refused
        to
        institute any such action, suit or proceeding. It is understood and intended,
        and expressly covenanted by each Certificateholder with every other
        Certificateholder. and the Trustee, that no one or more Holders of Certificates
        shall have any right in any manner whatsoever by virtue of any provision
        of this
        Agreement to affect, disturb or prejudice the rights of the Holders of any
        other
        of such Certificates, or to obtain or seek to obtain priority over or preference
        to any other such Holder, or to enforce any right under this Agreement, except
        in the manner herein provided and for the equal, ratable and common benefit
        of
        all Certificateholders. For the protection and enforcement of the provisions
        of
        this Section, each and every Certificateholder and the Trustee shall be entitled
        to such relief as can be given either at law or in equity.

       

      SECTION
        12.04  Governing
        Law.

       

      This
        Agreement shall be construed in accordance with the laws of the State of
        New
        York and the obligations, rights and remedies of the parties hereunder shall
        be
        determined in accordance with such laws without regard to conflicts of laws
        principles thereof other than Section 5-1401 of the New York General Obligations
        Law which shall govern.

       

      SECTION
        12.05  Notices.

       

      All
        directions, demands and notices hereunder shall be in writing and shall be
        deemed to have been duly given when received if sent by facsimile, receipt
        confirmed, if personally delivered at or mailed by first class mail, postage
        prepaid, or by express delivery service or delivered in any other manner
        specified herein, to (a) in the case of the Depositor, ACE Securities Corp.,
        AMACAR GROUP, 6525 Morrison Boulevard, Suite 318, Charlotte, North Carolina
        28211, Attention: Juliana Johnson (telecopy number: (704) 365-1362) with
        a copy
        to Deutsche Bank Securities, Inc. Attention: Legal Department (telecopy number:
        (212) 797-4561), or such other address or telecopy number as may hereafter
        be
        furnished to the Servicers, the Master Servicer, the Securities Administrator
        and the Trustee in writing by the Depositor, (b) in the case of Ocwen, Ocwen
        Loan Servicing, LLC, 1661 Worthington Road, Centrepark West, Suite 100, West
        Palm Beach, Florida 33409, Attention: Secretary (telecopy number: (561)
        682-8177), or such other address or telecopy number as may hereafter be
        furnished to the Trustee, the Master Servicer, the Securities Administrator
        and
        the Depositor in writing by Ocwen, (c) in the case of Wells Fargo, Wells
        Fargo
        Bank, National Association, 1 Home Campus, Des Moines, Iowa 50328, Attention:
        Tammy Jeannotte (telecopy number: (301) 846-8201), or such other address
        or
        telecopy number as may hereafter be furnished to the Trustee, the Master
        Servicer, the Securities Administrator and the Depositor in writing by Wells
        Fargo, (d) in the case of the Master Servicer and the Securities Administrator,
        P.O. Box 98, Columbia, Maryland 21046 and for overnight delivery to 9062
        Old
        Annapolis Road, Columbia, Maryland 21045, Attention: Ace Securities Corp.,
        2006-SD1 (telecopy number: (410) 715-2380), or such other address or telecopy
        number as may hereafter be furnished to the Trustee, the Depositor and the
        Servicers in writing by the Master Servicer or the Securities Administrator
        and
        (e) in the case of the Trustee, at the Corporate Trust Office or such other
        address or telecopy number as the Trustee may hereafter be furnish to the
        Servicers, the Master Servicer, the Securities Administrator and the Depositor
        in writing by the Trustee. Any notice required or permitted to be given to
        a
        Certificateholder shall be given by first class mail, postage prepaid, at
        the
        address of such Holder as shown in the Certificate Register. Any notice so
        mailed within the time prescribed in this Agreement shall be conclusively
        presumed to have been duly given when mailed, whether or not the
        Certificateholder receives such notice. A copy of any notice required to
        be
        telecopied hereunder also shall be mailed to the appropriate party in the
        manner
        set forth above.

       

      SECTION
        12.06  Severability
        of Provisions.

       

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

       

      SECTION
        12.07  Notice
        to Rating Agencies.

       

      The
        Trustee shall use its best efforts promptly to provide notice to the Rating
        Agencies with respect to each of the following of which a Responsible Officer
        has actual knowledge:

       

      	1.  	
              Any
                material change or amendment to this
                Agreement;

            

       

      	2.  	
              The
                occurrence of any Servicer Event of Default or Master Servicer Event
                of
                Default that has not been cured or
                waived;

            

       

      	3.  	
              The
                resignation or termination of a Servicer, the Master Servicer or
                the
                Trustee;

            

       

      	4.  	
              The
                repurchase or substitution of Mortgage Loans pursuant to or as
                contemplated by Section 2.03;

            

       

      	5.  	
              The
                final payment to the Holders of any Class of
                Certificates;

            

       

      	6.  	
              Any
                change in the location of the Distribution Account;
                and

            

       

      	7.  	
              Any
                event that would result in the inability of the Trustee as successor
                to
                Wells Fargo in its capacity as a Servicer hereunder to make advances
                regarding delinquent Wells Fargo Mortgage
                Loans.

            

       

      In
        addition, the Securities Administrator shall promptly make available to each
        Rating Agency copies of each report to Certificateholders described in
        Section 5.02 of this Agreement.

       

      Each
        Servicer shall make available to each Rating Agency copies of the
        following:

       

      	1.  	
              Each
                Annual Statement of Compliance described in Section 3.17 of this
                Agreement;

            

       

      	2.  	
              Each
                Assessment of Compliance and Attestation Report described in
                Section 3.18 of this Agreement; and

            

       

      	3.  	
              Any
                change in the location of the related Collection
                Account.

            

       

      Any
        such
        notice pursuant to this Section 12.07 shall be in writing and shall be
        deemed to have been duly given if personally delivered at or mailed by first
        class mail, postage prepaid, or by express delivery service to Standard &
Poor’s, a division of the McGraw-Hill Companies, Inc., 55 Water Street, New
        York, New York 10041; to Moody’s Investors Service, Inc., 99 Church Street, New
        York, New York 10007; and to Fitch Ratings, 1 State Street Plaza, New York,
        New
        York 10004 or such other addresses as the Rating Agencies may designate in
        writing to the parties hereto.

       

      SECTION
        12.08  Article
        and Section References.

       

      All
        article and section references used in this Agreement, unless otherwise
        provided, are to articles and sections in this Agreement.

       

      SECTION
        12.09  Grant
        of Security Interest.

       

      It
        is the
        express intent of the parties hereto that the conveyance of the Mortgage
        Loans
        by the Depositor to the Trustee, on behalf of the Trust and for the benefit
        of
        the Certificateholders, be, and be construed as, a sale of the Mortgage Loans
        by
        the Depositor and not a pledge of the Mortgage Loans to secure a debt or
        other
        obligation of the Depositor. However, in the event that, notwithstanding
        the
        aforementioned intent of the parties, the Mortgage Loans are held to be property
        of the Depositor, then, (a) it is the express intent of the parties that
        such
        conveyance be deemed a pledge of the Mortgage Loans by the Depositor to the
        Trustee, on behalf of the Trust and for the benefit of the Certificateholders,
        to secure a debt or other obligation of the Depositor and (b)(1) this Agreement
        shall also be deemed to be a security agreement within the meaning of Articles
        8
        and 9 of the Uniform Commercial Code as in effect from time to time in the
        State
        of New York; (2) the conveyance provided for in Section 2.01 shall be
        deemed to be a grant by the Depositor to the Trustee, on behalf of the Trust
        and
        for the benefit of the Certificateholders, of a security interest in all
        of the
        Depositor’s right, title and interest in and to the Mortgage Loans and all
        amounts payable to the holders of the Mortgage Loans in accordance with the
        terms thereof and all proceeds of the conversion, voluntary or involuntary,
        of
        the foregoing into cash, instruments, securities or other property, including
        without limitation all amounts, other than investment earnings, from time
        to
        time held or invested in the Collection Accounts and the Distribution Account,
        whether in the form of cash, instruments, securities or other property; (3)
        the
        obligations secured by such security agreement shall be deemed to be all
        of the
        Depositor’s obligations under this Agreement, including the obligation to
        provide to the Certificateholders the benefits of this Agreement relating
        to the
        Mortgage Loans and the Trust Fund; and (4) notifications to persons holding
        such
        property, and acknowledgments, receipts or confirmations from persons holding
        such property, shall be deemed notifications to, or acknowledgments, receipts
        or
        confirmations from, financial intermediaries, bailees or agents (as applicable)
        of the Trustee for the purpose of perfecting such security interest under
        applicable law. Accordingly, the Depositor hereby grants to the Trustee,
        on
        behalf of the Trust and for the benefit of the Certificateholders, a security
        interest in the Mortgage Loans and all other property described in clause
        (2) of
        the preceding sentence, for the purpose of securing to the Trustee the
        performance by the Depositor of the obligations described in clause (3) of
        the
        preceding sentence. Notwithstanding the foregoing, the parties hereto intend
        the
        conveyance pursuant to Section 2.01 to be a true, absolute and
        unconditional sale of the Mortgage Loans and assets constituting the Trust
        Fund
        by the Depositor to the Trustee, on behalf of the Trust and for the benefit
        of
        the Certificateholders.

       

      SECTION
        12.10  Survival
        of Indemnification.

       

      Any
        and
        all indemnities to be provided by any party to this Agreement shall survive
        the
        termination and resignation of any party hereto and the termination of this
        Agreement.

       

      SECTION
        12.11  Servicing
        Agreement.

       

      With
        respect to the Servicing Agreement, in the event of any conflict between
        the
        provisions of this Agreement and the provisions of the Servicing Agreement,
        the
        provisions of the Servicing Agreement shall control.

       

      SECTION
        12.12  Intention
        of the Parties and Interpretation.

       

      Each
        of
        the parties acknowledges and agrees that the purpose of Sections 3.17, 3.18,
        3.19, 4.15, 4.16, 4.17, 4.18 and 5.06 of this Agreement is to facilitate
        compliance by the Sponsor, the Master Servicer, the Securities Administrator
        and
        the Depositor with the provisions of Regulation AB promulgated by the SEC
        under
        the Exchange Act (17 C.F.R. §§ 229.1100 - 229.1123), as such may be amended from
        time to time and subject to clarification and interpretive advice as may
        be
        issued by the staff of the SEC from time to time. Therefore, each of the
        parties
        agrees that (a) the obligations of the parties hereunder shall be interpreted
        in
        such a manner as to accomplish that purpose, (b) the parties’ obligations
        hereunder will be supplemented and modified as necessary to be consistent
        with
        any such amendments, interpretive advice or guidance, convention or consensus
        among active participants in the asset-backed securities markets, advice
        of
        counsel, or otherwise in respect of the requirements of Regulation AB and
        (c)
        the parties shall comply with reasonable requests made by the Master Servicer,
        the Securities Administrator, the Sponsor or the Depositor for delivery of
        additional or different information as the Master Servicer, the Securities
        Administrator, the Sponsor or the Depositor may determine in good faith is
        necessary to comply with the provisions of Regulation AB.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Depositor, Ocwen, Wells Fargo, the Master Servicer,
        the
        Securities Administrator and the Trustee have caused their names to be signed
        hereto by their respective officers thereunto duly authorized, in each case
        as
        of the day and year first above written.

       

      
        	 	
                ACE
                  SECURITIES CORP., 

                as
                  Depositor

              
	 
	 
	
                By:
                  /s/
                  Evelyn
                  Echevarria                              

              
	
                Name: Evelyn
                  Echevarria

              
	
                Title: Vice
                  President

              

      

      

      
        	 	 
	
                By:
                  /s/
                  Doris J.
                  Hearn                                        

              
	
                Name: Doris
                  J. Hearn

              
	
                Title: Vice
                  President

              

      

      

      
        	 	
                OCWEN
                  LOAN SERVICING, LLC,

                as
                  a Servicer

              
	 
	 
	
                By:
                  /s/
                  Richard
                  Delgado                                       

              
	
                Name: Richard
                  Delgado

              
	
                Title: Authorized
                  Representative

              

      

      

      
        	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  a Servicer

              
	 
	 
	
                By:
                  /s/ Laurie McGoogan

              
	
                Name:
                  Laurie McGoogan 

              
	
                Title:
                  Vice President

              

      

      

      
        	 	
                HSBC
                  BANK USA, NATIONAL ASSOCIATION

                not
                  in its individual capacity but solely as Trustee

              
	 
	 
	
                By:
                  /s/
                  Susie
                  Moy                                              

              
	
                Name: Susie
                  Moy

              
	
                Title: Vice
                  President

              

      

      

      
        	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Master Servicer and Securities Administrator

              
	 
	 
	
                By:
                  /s/
                  Jennifer L.
                  Richardson                                  

              
	
                Name: Jennifer
                  L. Richardson

              
	
                Title: Assistant
                  Vice President

              
	 	 
	 	
                Acknowledged
                  and Agreed for purposes of Sections 7.08, 7.09 and
                  7.10:

              

      

      

      
        	 	
                MORTGAGERAMP,
                  INC.

              
	 
	 
	
                By:
                  /s/
                  Gregory
                  Weisman                                           

              
	
                Name: Gregory
                  Weisman

              
	
                Title: Secretary

              
	 	 
	 	
                Acknowledged
                  and Agreed for purposes of
                  Section 9.05:

              

      

      

      
        	 	
                DB
                  STRUCTURED PRODUCTS, INC.

              
	 
	 
	
                By:
                  /s/ Susan Valenti

              
	
                Name:
                  Susan Valenti 

              
	
                Title:
                  Director 

              

      

      

      
        	 	 
	
                By:
                  /s/ Rika Yano 

              
	
                Name:
                  Rika Yano 

              
	
                Title:
                  Vice President 

              

      

       

      
        	 	
                Acknowledged
                  and Agreed for purposes of Section
                  5.01(b):

              

      

      

      
        	 	
                DEUTSCHE
                  BANK SECURITIES INC. as Class CE-2 Certificateholder

              
	 
	 
	
                By:
                  /s/ Susan Valenti

              
	
                Name:
                  Susan Valenti 

              
	
                Title:
                  Director 

              

      

      

      
        	 	 
	
                By:
                  /s/ Rika Yano

              
	
                Name:
                  Rika Yano 

              
	
                Title:
                  Vice President 

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      

      On
        the
        ___ day of March 2006, before me, a notary public in and for said State,
        personally appeared _____________________ known to me to be a
        _____________________ of ACE Securities Corp., one of the corporations that
        executed the within instrument, and also known to me to be the person who
        executed it on behalf of said corporation, and acknowledged to me that such
        corporation executed the within instrument.

       

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

       

      
        	 	 
	
                Notary
                  Public

              

      

      

      

      [Notarial
        Seal]                                                                          My
        commission
        expires

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      

      On
        the
        ___ day of March 2006, before me, a notary public in and for said State,
        personally appeared _____________________ known to me to be a
        _____________________ of ACE Securities Corp., one of the corporations that
        executed the within instrument, and also known to me to be the person who
        executed it on behalf of said corporation, and acknowledged to me that such
        corporation executed the within instrument.

       

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

       

      
        	 	 
	
                Notary
                  Public

              

      

      

      

      [Notarial
        Seal]                                                                          My
        commission
        expires

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      

      On
        the
        ___ day of March 2006, before me, a notary public in and for said State,
        personally appeared _____________________ known to me to be a
        _____________________ of Wells Fargo Bank, National Association, a national
        banking association that executed the within instrument, and also known to
        me to
        be the person who executed it on behalf of said national banking association,
        and acknowledged to me that such national banking association executed the
        within instrument.

       

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

       

      
        	 	 
	
                Notary
                  Public

              

      

      

      

      [Notarial
        Seal]                                                                          My
        commission
        expires

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      

      On
        the __
        day of March 2006, before me, a notary public in and for said State, personally
        appeared ___________________________ known to me to be a ____________________
        of
        Ocwen Loan Servicing, LLC, a Delaware limited liability company that executed
        the within instrument, and also known to me to be the person who executed
        it on
        behalf of said entity, and acknowledged to me that such entity executed the
        within instrument.

       

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

       

      
        	 	 
	
                Notary
                  Public

              

      

      

      

      [Notarial
        Seal]                                                                          My
        commission
        expires

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      

      On
        the
        ___ day of March 2006, before me, a notary public in and for said State,
        personally appeared _____________________ known to me to be a
        _____________________ of Wells Fargo Bank, National Association, a national
        banking association that executed the within instrument, and also known to
        me to
        be the person who executed it on behalf of said national banking association,
        and acknowledged to me that such national banking association executed the
        within instrument.

       

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

       

      
        	 	 
	
                Notary
                  Public

              

      

      

      

      [Notarial
        Seal]                                                                          My
        commission
        expires

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      

      On
        the
        ___ day of March 2006, before me, a notary public in and for said State,
        personally appeared _____________________ known to me to be a
        _____________________ of HSBC Bank USA, National Association, a national
        banking
        association that executed the within instrument, and also known to me to
        be the
        person who executed it on behalf of said national banking association, and
        acknowledged to me that such national banking association executed the within
        instrument.

       

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

       

      
        	 	 
	
                Notary
                  Public

              

      

      

      

      [Notarial
        Seal]                                                                          My
        commission
        expires

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    
Unassociated Document 

    

      EXHIBIT
        A-1

       

      FORM
        OF
        CLASS A-1[A][B] CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD1, Class A-1[A][B]

              	 	
                Aggregate
                  Certificate Principal Balance of the Class A-1[A][ B] Certificates
                  as of
                  the Issue Date: $________

              
	 	 	 
	
                Pass-Through
                  Rate: Variable

              	 	
                Denomination:
                  $_____________________

              
	 	 	 
	
                Date
                  of Pooling and Servicing Agreement: 

                February
                  28, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, N.A.

              
	 	 	 
	
                First
                  Distribution Date: April 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

              
	 	 	 
	
                Cut-off
                  Date: February 28, 2006

              	 	
                Issue
                  Date: March 27, 2006

              
	 	 	 
	
                No.__

              	 	
                CUSIP:________________

              
	 	 	 

      

      

      DISTRIBUTIONS
        IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY
        BE
        MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
        PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
        AS
        THE DENOMINATION OF THIS CERTIFICATE.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD1

       

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family family, fixed and
        adjustable-rate first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that [Cede & Co.] is the registered owner of a Percentage Interest
        (obtained by dividing the denomination of this Certificate by the aggregate
        Certificate Principal Balance of the Class A-1[A][B] Certificates as of the
        Issue Date) in that certain beneficial ownership interest evidenced by all
        the
        Class A-1[A][B] Certificates in REMIC II created pursuant to a Pooling and
        Servicing Agreement, dated as specified above (the “Agreement”), among ACE
        Securities Corp. as depositor (hereinafter called the “Depositor”, which term
        includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”),
        Wells Fargo Bank, N.A. as a servicer (“Wells Fargo”) and HSBC Bank USA, National
        Association as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. Certain of the Mortgage Loans
        are
        being serviced by Select Portfolio Servicing, Inc. (“SPS,” together with Ocwen
        and Wells Fargo, each a “Servicer” and together the “Servicers”) pursuant to a
        separate servicing agreement. To the extent not defined herein, the capitalized
        terms used herein have the meanings assigned in the Agreement. This Certificate
        is issued under and is subject to the terms, provisions and conditions of
        the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        the
        acceptance hereof assents and by which such Holder is bound.

       

      Pursuant
        to the terms of the Agreement, distributions will be made on the 25th
        day of
        each month or, if such 25th
        day is
        not a Business Day, the Business Day immediately following such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the Business
        Day
        immediately preceding such Distribution Date (the “Record Date”), in an amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amount required to be distributed to the Holders of Class A-1[A][B]
        Certificates on such Distribution Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class A-1[A][B] Certificates
        the aggregate initial Certificate Principal Balance of which is in excess
        of the
        lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
        Principal Balance of the Class A-1[A][B] Certificates, or otherwise by check
        mailed by first class mail to the address of the Person entitled thereto,
        as
        such name and address shall appear on the Certificate Register. Notwithstanding
        the above, the final distribution on this Certificate will be made after
        due
        notice by the Securities Administrator of the pendency of such distribution
        and
        only upon presentation and surrender of this Certificate at the office or
        agency
        appointed by the Securities Administrator for that purpose as provided in
        the
        Agreement.

       

      The
        Pass-Through Rate applicable to the calculation of interest payable with
        respect
        to this Certificate on any Distribution Date shall be a rate per annum equal
        to
        the lesser of (i) One-Month LIBOR plus [___]%, in the case of each Distribution
        Date through and including the Distribution Date on which the aggregate
        principal balance of the Mortgage Loans (and properties acquired in respect
        thereof) remaining in the Trust Fund is reduced to less than or equal to
        10% of
        the aggregate principal balance of the Mortgage Loans as of the Cut-off Date,
        or
        One-Month LIBOR plus [___]%, in the case of any Distribution Date thereafter
        and
        (ii) the Net WAC Pass-Through Rate for such Distribution Date.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Certificate Principal
        Balance of the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries in respect of the Mortgage Loans , as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Account and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans. 

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. Any such consent by the Holder
        of
        this Certificate shall be conclusive and binding on such Holder and upon
        all
        future Holders of this Certificate and of any Certificate issued upon the
        transfer hereof or in exchange herefor or in lieu hereof whether or not notation
        of such consent is made upon this Certificate. The Agreement also permits
        the
        amendment thereof, in certain limited circumstances, without the consent
        of the
        Holders of any of the Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same.

       

      No
        service charge will be made for any such registration of transfer or exchange
        of
        Certificates, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge that may be imposed
        in
        connection with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The
        exercise of such right will effect early retirement of the Certificates;
        however, such right to purchase is subject to the aggregate Scheduled Principal
        Balance of the Mortgage Loans (and properties acquired in respect thereof)
        at
        the time of purchase being less than or equal to 10% of the aggregate Scheduled
        Principal Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      
        This
          is
          one of the Class A-1[A][B] Certificates referred to in the within-mentioned
          Agreement.

      

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                     Custodian      

                (Cust)
                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	 	 	 	 
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	 	 	 	 
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              
	 

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee)

       

      a
        Percentage Interest equal to ____%
        evidenced by the within Asset Backed Pass-Through Certificate and hereby
        authorize(s) the registration of transfer of such interest to assignee on
        the
        Certificate Register of the Trust Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to
                  ____________________________________________________________________________________________________

              
	 _____________________________________________________________________________________________
	
                for
                  the account of
                  _____________________________________________________________________________________________

              
	
                account
                  number ___________________________________________ or,
                  if mailed by check, to ________________________________

              
	 _____________________________________________________________________________________________
	
                Applicable
                  statements should be mailed to
                  __________________________________________________________________________

              
	 _____________________________________________________________________________________________
	 
	
                This
                  information is provided by
                  ____________________________________________________________________________

              
	
                assignee
                  named above, or
                  _______________________________________________________________________________________

              
	
                its
                  agent.

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-2

       

      FORM
        OF
        CLASS M-[1][2][3][4][5] CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      THIS
        CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES [[,/AND] CLASS M-1
        CERTIFICATES] [[,/AND] CLASS M-2 CERTIFICATES] [[,/AND] CLASS M-3 CERTIFICATES]
        [[AND] CLASS M-4 CERTIFICATES] TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED
        TO HEREIN.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH SECTION
        6.02(c) OF THE AGREEMENT REFERRED TO HEREIN.

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
        IN
        THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
        OF
        THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
        BE
        DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
        MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
        ADMINISTRATOR NAMED HEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD1, Class M-[1][2][3][4][5]

              	 	
                Aggregate
                  Certificate Principal Balance of the Class M-[1][2][3][4][5] Certificates
                  as of the Issue Date: $______________

              
	 	 	 
	
                Pass-Through
                  Rate: Variable

              	 	
                Denomination:
                  $______________

              
	 	 	 
	
                Date
                  of Pooling and Servicing Agreement: February 28, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, N.A.

              
	 	 	 
	
                First
                  Distribution Date: April 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

              
	 	 	 
	
                Cut-off
                  Date: February 28, 2006

              	 	
                Issue
                  Date: March 27, 2006

              
	 	 	 
	
                No.___

              	 	
                CUSIP:_________________

              
	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD1

       

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that [Cede & Co.] is the registered owner of a Percentage Interest
        (obtained by dividing the denomination of this Certificate by the aggregate
        Certificate Principal Balance of the Class M-[1][2][3][4][5] Certificates
        as of
        the Issue Date) in that certain beneficial ownership interest evidenced by
        all
        the Class M-[1][2][3][4][5] Certificates in REMIC II created pursuant to
        a
        Pooling and Servicing Agreement, dated as specified above (the “Agreement”),
        among ACE Securities Corp. as depositor (hereinafter called the “Depositor”,
        which term includes any successor entity under the Agreement), Wells Fargo
        Bank,
        N.A. as master servicer (the “Master Servicer”) and securities administrator
        (the “Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer
        (“Ocwen”), Wells Fargo Bank, N.A. as a servicer (“Wells Fargo”) and HSBC Bank
        USA, National Association as trustee (the “Trustee”), a summary of certain of
        the pertinent provisions of which is set forth hereafter. Certain of the
        Mortgage Loans are being serviced by Select Portfolio Servicing, Inc. (“SPS,”
together with Ocwen and Wells Fargo, each a “Servicer” and together the
“Servicers”) pursuant to a separate servicing agreement. To the extent not
        defined herein, the capitalized terms used herein have the meanings assigned
        in
        the Agreement. This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound.

       

      Pursuant
        to the terms of the Agreement, distributions will be made on the 25th
        day of
        each month or, if such 25th
        day is
        not a Business Day, the Business Day immediately following such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the Business
        Day
        immediately preceding such Distribution Date (the “Record Date”), in an amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amount required to be distributed to the Holders of Class
        M-[1][2][3][4][5] Certificates on such Distribution Date pursuant to the
        Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class M-[1][2][3][4][5]
        Certificates the aggregate initial Certificate Principal Balance of which
        is in
        excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate
        initial Certificate Principal Balance of the Class M-[1][2][3][4][5]
        Certificates, or otherwise by check mailed by first class mail to the address
        of
        the Person entitled thereto, as such name and address shall appear on the
        Certificate Register. Notwithstanding the above, the final distribution on
        this
        Certificate will be made after due notice by the Securities Administrator
        of the
        pendency of such distribution and only upon presentation and surrender of
        this
        Certificate at the office or agency appointed by the Securities Administrator
        for that purpose as provided in the Agreement.

       

      The
        Pass-Through Rate applicable to the calculation of interest payable with
        respect
        to this Certificate on any Distribution Date shall be a rate per annum equal
        to
        the lesser of (i) One-Month LIBOR plus ____%, in the case of each
        Distribution Date through and including the Distribution Date on which the
        aggregate principal balance of the Mortgage Loans (and properties acquired
        in
        respect thereof) remaining in the Trust Fund is reduced to less than or equal
        to
        10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
        Date, or One-Month LIBOR plus ____%, in the case of any Distribution Date
        thereafter and (ii) the Net WAC Pass-Through Rate for such Distribution
        Date.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Certificate Principal
        Balance of the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries in respect of the Mortgage Loans, as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Account and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. Any such consent by the Holder
        of
        this Certificate shall be conclusive and binding on such Holder and upon
        all
        future Holders of this Certificate and of any Certificate issued upon the
        transfer hereof or in exchange herefor or in lieu hereof whether or not notation
        of such consent is made upon this Certificate. The Agreement also permits
        the
        amendment thereof, in certain limited circumstances, without the consent
        of the
        Holders of any of the Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
transferees.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same.

       

      No
        transfer of this Certificate may be made except in accordance with Section
        6.02(c) of the Agreement.

       

      No
        service charge will be made for any such registration of transfer or exchange
        of
        Certificates, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge that may be imposed
        in
        connection with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; however,
        such
        right to purchase is subject to the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans (and properties acquired in respect thereof) at the time of
        purchase being less than or equal to 10% of the aggregate Scheduled Principal
        Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator by manual signature, this Certificate shall not be entitled
        to any
        benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class M-[1][2][3][4][5] Certificates referred to in the
        within-mentioned Agreement.

       

      

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                     Custodian      

                (Cust)
                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	 	 	 	 
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	 	 	 	 
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              
	 

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

       (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee)

       

      a
        Percentage Interest equal to _____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
         

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to
                    ____________________________________________________________________________________________________

                
	 _____________________________________________________________________________________________
	
                  for
                    the account of
                    _____________________________________________________________________________________________

                
	
                  account
                    number ___________________________________________ or,
                    if mailed by check, to ________________________________

                
	 _____________________________________________________________________________________________
	
                  Applicable
                    statements should be mailed to
                    __________________________________________________________________________

                
	 _____________________________________________________________________________________________
	 
	
                  This
                    information is provided by
                    ____________________________________________________________________________

                
	
                  assignee
                    named above, or
                    _______________________________________________________________________________________

                
	
                  its
                    agent.

                	 

        

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-3

       

      FORM
        OF
        CLASS CE-1 CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      THIS
        CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE MEZZANINE
        CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “1933 ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN
        COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF
        THE
        UNITED STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER
        THE 1933 ACT (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO
(A)
        “QUALIFIED INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH
        RULE 144A UNDER THE 1933 ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS
        THAT ARE “ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3)
        OR (7) OF “REGULATION D” UNDER THE 1933 ACT.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
        TO HEREIN.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD1, Class CE-1

              	 	
                Aggregate
                  Notional Amount of the Class CE-1 Certificates as of the Issue
                  Date:
                  $_____________

              
	 	 	 
	
                Pass-Through
                  Rate: Variable

              	 	
                Denomination:
                  $_________________

              
	 	 	 
	
                Date
                  of Pooling and Servicing Agreement: February 28, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, N.A.

              
	 	 	 
	
                First
                  Distribution Date: April 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

              
	 	 	 
	
                Cut-off
                  Date: February 28, 2006

              	 	
                Issue
                  Date: March 27, 2006

              
	 	 
	
                No.
                  __

              	 
	 	 

      

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD1

       

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that [Deutsche Bank Securities Inc.] is the registered owner of
        a
        Percentage Interest (obtained by dividing the denomination of this Certificate
        by the aggregate Certificate Principal Balance of the Class CE-1 Certificates
        as
        of the Issue Date) in that certain beneficial ownership interest evidenced
        by
        all the Class CE-1 Certificates in REMIC II created pursuant to a Pooling
        and
        Servicing Agreement, dated as specified above (the “Agreement”), among ACE
        Securities Corp. as depositor (hereinafter called the “Depositor,” which term
        includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”),
        Wells Fargo Bank, N.A. as a servicer (“Wells Fargo”) and HSBC Bank USA, National
        Association as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. Certain of the Mortgage Loans
        are
        being serviced by Select Portfolio Servicing, Inc. (“SPS,” together with Ocwen
        and Wells Fargo, each a “Servicer” and together the “Servicers”) pursuant to a
        separate servicing agreement. To the extent not defined herein, the capitalized
        terms used herein have the meanings assigned in the Agreement. This Certificate
        is issued under and is subject to the terms, provisions and conditions of
        the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        the
        acceptance hereof assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue during the month prior to the month in which
        a
        Distribution Date (as hereinafter defined) occurs on the Notional Amount
        (as
        defined in the Agreement) hereof at a per annum rate equal to the applicable
        Pass-Through Rate as set forth in the Agreement. Pursuant to the terms of
        the
        Agreement, distributions will be made on the 25th
        day of
        each month or, if such 25th
        day is
        not a Business Day, the Business Day immediately following such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “Record Date”), in an amount equal to the product
        of the Percentage Interest evidenced by this Certificate and the amount required
        to be distributed to the Holders of Class CE-1 Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class CE-1 Certificates
        the
        aggregate initial Certificate Principal Balance of which is in excess of
        the
        lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
        Principal Balance of the Class CE-1 Certificates, or otherwise by check mailed
        by first class mail to the address of the Person entitled thereto, as such
        name
        and address shall appear on the Certificate Register. Notwithstanding the
        above,
        the final distribution on this Certificate will be made after due notice
        by the
        Securities Administrator of the pendency of such distribution and only upon
        presentation and surrender of this Certificate at the office or agency appointed
        by the Securities Administrator for that purpose as provided in the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Notional Amount of
        the
        Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Account and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. Any such consent by the Holder
        of
        this Certificate shall be conclusive and binding on such Holder and upon
        all
        future Holders of this Certificate and of any Certificate issued upon the
        transfer hereof or in exchange herefor or in lieu hereof whether or not notation
        of such consent is made upon this Certificate. The Agreement also permits
        the
        amendment thereof, in certain limited circumstances, without the consent
        of the
        Holders of any of the Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the 1933 Act, and an effective
        registration or qualification under applicable state securities laws, or
        is made
        in a transaction that does not require such registration or qualification.
        In
        the event that such a transfer of this Certificate is to be made without
        registration or qualification, the Securities Administrator shall require
        receipt of (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A or Regulation S under the 1933 Act, written certifications from the
        Holder
        of the Certificate desiring to effect the transfer, and from such Holder’s
        prospective transferee, substantially in the forms attached to the Agreement
        as
        Exhibit B-1, (ii) if such transfer is purportedly being made in reliance
        upon
        Rule 501(a) under the 1933 Act, written certifications from the Holder of
        the
        Certificate desiring to effect the transfer and from such Holder’s prospective
        transferee, substantially in the form attached to the Agreement as Exhibit
        B-2
        and (iii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Master Servicer or the Securities Administrator in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. None
        of the
        Depositor, the Trustee or the Securities Administrator is obligated to register
        or qualify the Class of Certificates specified on the face hereof under the
        1933
        Act or any other securities law or to take any action not otherwise required
        under the Agreement to permit the transfer of such Certificates without
        registration or qualification. Any Holder desiring to effect a transfer of
        this
        Certificate shall be required to indemnify the Trustee, the Depositor, the
        Master Servicer and the Securities Administrator against any liability that
        may
        result if the transfer is not so exempt or is not made in accordance with
        such
        federal and state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02(c) of the Agreement.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same. No service charge
        will be made for any such registration of transfer or exchange of Certificates,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge that may be imposed in connection
        with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; however,
        such
        right to purchase is subject to the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans (and properties acquired in respect hereof) at the time of
        purchase being less than or equal to 10% of the aggregate Scheduled Principal
        Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class CE-1 Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                     Custodian      

                (Cust)
                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	 	 	 	 
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	 	 	 	 
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              
	 

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

       

         

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to
                    ____________________________________________________________________________________________________

                
	 _____________________________________________________________________________________________
	
                  for
                    the account of
                    _____________________________________________________________________________________________

                
	
                  account
                    number ___________________________________________ or,
                    if mailed by check, to ________________________________

                
	 _____________________________________________________________________________________________
	
                  Applicable
                    statements should be mailed to
                    __________________________________________________________________________

                
	 _____________________________________________________________________________________________
	 
	
                  This
                    information is provided by
                    ____________________________________________________________________________

                
	
                  assignee
                    named above, or
                    _______________________________________________________________________________________

                
	
                  its
                    agent.

                	 

        

        

         

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-4

       

      FORM
        OF
        CLASS CE-2 CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “1933 ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE 1933 ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES
        WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE 1933
        ACT
        (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED
        INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A
        UNDER THE 1933 ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE
“ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
“REGULATION D” UNDER THE 1933 ACT.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
        TO HEREIN.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD1, Class CE-2

              	 	
                Aggregate
                  Percentage Interest of the Class CE-2 Certificates as of the Issue
                  Date:
                  100.00%

              
	 	 	 
	
                Pass-Through
                  Rate: Variable

              	 	
                Master
                  Servicer: Wells Fargo Bank, N.A.

              
	 	 	 
	
                Date
                  of Pooling and Servicing Agreement: February 28, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

              
	 	 	 
	
                First
                  Distribution Date: April 25, 2006

              	 	
                Issue
                  Date: March 27, 2006

              
	 	 	 
	
                Cut-off
                  Date: February 28, 2006

              	 	 
	 	 
	
                No.
                  __

              	 
	 	 

      

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD1

       

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that ________________ is the registered owner of a Percentage Interest
        set forth above in that certain beneficial ownership interest evidenced by
        all
        the Class CE-2 Certificates in REMIC II created pursuant to a Pooling and
        Servicing Agreement, dated as specified above (the “Agreement”), among ACE
        Securities Corp. as depositor (hereinafter called the “Depositor,” which term
        includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”),
        Wells Fargo Bank, N.A. as a servicer (“Wells Fargo”) and HSBC Bank USA, National
        Association as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. Certain of the Mortgage Loans
        are
        being serviced by Select Portfolio Servicing, Inc. (“SPS,” together with Ocwen
        and Wells Fargo, each a “Servicer” and together the “Servicers”) pursuant to a
        separate servicing agreement. To the extent not defined herein, the capitalized
        terms used herein have the meanings assigned in the Agreement. This Certificate
        is issued under and is subject to the terms, provisions and conditions of
        the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        the
        acceptance hereof assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue during the month prior to the month in which
        a
        Distribution Date (as hereinafter defined) occurs on the Notional Balance
        hereof
        at a per annum rate equal to the applicable Pass-Through Rate as set forth
        in
        the Agreement. Pursuant to the terms of the Agreement, distributions will
        be
        made on the 25th
        day of
        each month or, if such 25th
        day is
        not a Business Day, the Business Day immediately following such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “Record Date”), in an amount equal to the product
        of the Percentage Interest evidenced by this Certificate and the amount required
        to be distributed to the Holders of Class CE-2 Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class CE-2 Certificates,
        or
        otherwise by check mailed by first class mail to the address of the Person
        entitled thereto, as such name and address shall appear on the Certificate
        Register. Notwithstanding the above, the final distribution on this Certificate
        will be made after due notice by the Securities Administrator of the pendency
        of
        such distribution and only upon presentation and surrender of this Certificate
        at the office or agency appointed by the Securities Administrator for that
        purpose as provided in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Account and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. Any such consent by the Holder
        of
        this Certificate shall be conclusive and binding on such Holder and upon
        all
        future Holders of this Certificate and of any Certificate issued upon the
        transfer hereof or in exchange herefor or in lieu hereof whether or not notation
        of such consent is made upon this Certificate. The Agreement also permits
        the
        amendment thereof, in certain limited circumstances, without the consent
        of the
        Holders of any of the Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the 1933 Act, and an effective
        registration or qualification under applicable state securities laws, or
        is made
        in a transaction that does not require such registration or qualification.
        In
        the event that such a transfer of this Certificate is to be made without
        registration or qualification, the Securities Administrator shall require
        receipt of (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A or Regulation S under the 1933 Act, written certifications from the
        Holder
        of the Certificate desiring to effect the transfer, and from such Holder’s
        prospective transferee, substantially in the forms attached to the Agreement
        as
        Exhibit B-1, (ii) if such transfer is purportedly being made in reliance
        upon
        Rule 501(a) under the 1933 Act, written certifications from the Holder of
        the
        Certificate desiring to effect the transfer and from such Holder’s prospective
        transferee, substantially in the form attached to the Agreement as Exhibit
        B-2
        and (iii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Master Servicer or the Securities Administrator in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. None
        of the
        Depositor, the Trustee or the Securities Administrator is obligated to register
        or qualify the Class of Certificates specified on the face hereof under the
        1933
        Act or any other securities law or to take any action not otherwise required
        under the Agreement to permit the transfer of such Certificates without
        registration or qualification. Any Holder desiring to effect a transfer of
        this
        Certificate shall be required to indemnify the Trustee, the Depositor, the
        Master Servicer and the Securities Administrator against any liability that
        may
        result if the transfer is not so exempt or is not made in accordance with
        such
        federal and state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02(c) of the Agreement.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same. No service charge
        will be made for any such registration of transfer or exchange of Certificates,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge that may be imposed in connection
        with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; however,
        such
        right to purchase is subject to the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans (and properties acquired in respect hereof) at the time of
        purchase being less than or equal to 10% of the aggregate Scheduled Principal
        Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class CE-2 Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                     Custodian      

                (Cust)
                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	 	 	 	 
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	 	 	 	 
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              
	 

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

       

         

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to
                    ____________________________________________________________________________________________________

                
	 _____________________________________________________________________________________________
	
                  for
                    the account of
                    _____________________________________________________________________________________________

                
	
                  account
                    number ___________________________________________ or,
                    if mailed by check, to ________________________________

                
	 _____________________________________________________________________________________________
	
                  Applicable
                    statements should be mailed to
                    __________________________________________________________________________

                
	 _____________________________________________________________________________________________
	 
	
                  This
                    information is provided by
                    ____________________________________________________________________________

                
	
                  assignee
                    named above, or
                    _______________________________________________________________________________________

                
	
                  its
                    agent.

                	 

        

        

         

      

      

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-5

       

      FORM
        OF
        CLASS P CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES,
        THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT
        CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
        THE INTERNAL REVENUE CODE OF 1986, AS MENDED (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
        HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY
        BE
        REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
        THE
        ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN
        THE
        MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
        OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
        THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
        (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
        MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
        ACT.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
        TO HEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD1, Class P

              	 	
                Aggregate
                  Certificate Principal Balance of the Class P Certificates as of
                  the Issue
                  Date: $100.00

              
	 	 	 
	
                Cut-off
                  Date and date of Pooling and Servicing Agreement: February 28,
                  2006

              	 	
                Denomination:
                  $100.00

              
	 	 	 
	
                First
                  Distribution Date: April 25, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, N.A.

              
	 	 	 
	
                No.
                  __

              	 	
                Trustee:
                  HSBC Bank USA, National Association

              
	 	 	 
	 	 	
                Issue
                  Date: March 28, 2006

              
	 	 	 

      

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD1

       

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, first and second
        lien,
        fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
        by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that____________________ is the registered owner of a Percentage
        Interest (obtained by dividing the denomination of this Certificate by the
        aggregate Certificate Principal Balance of the Class P Certificates as of
        the
        Issue Date) in that certain beneficial ownership interest evidenced by all
        of
        the Class P Certificates in REMIC II created pursuant to a Pooling and Servicing
        Agreement, dated as specified above (the “Agreement”), among ACE Securities
        Corp., as depositor (hereinafter called the “Depositor”, which term includes any
        successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer
        (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”), Wells Fargo Bank, N.A. as a servicer (“Wells Fargo”), Ocwen
        Loan Servicing, LLC as a servicer (“Ocwen”) and HSBC Bank USA, National
        Association as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. Certain of the Mortgage Loans
        are
        being serviced by Select Portfolio Servicing, Inc. (“SPS”, together with Ocwen
        and Wells Fargo, each a “Servivcer” and together the “Servicers”) pursuant to a
        separate servicing agreement. To the extent not defined herein, the capitalized
        terms used herein have the meanings assigned in the Agreement. This Certificate
        is issued under and is subject to the terms, provisions and conditions of
        the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        the
        acceptance hereof assents and by which such Holder is bound.

       

      Pursuant
        to the terms of the Agreement, distributions will be made on the 25th
        day of
        each month or, if such 25th
        day is
        not a Business Day, the Business Day immediately following such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “Record Date”), in an amount equal to the product
        of the Percentage Interest evidenced by this Certificate and the amount required
        to be distributed to the Holders of Class P Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five (5) Business Days prior to the Record Date immediately prior to
        such
        Distribution Date and is the registered owner of Class P Certificates the
        aggregate initial Certificate Principal Balance of which is in excess of
        the
        lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
        Principal Balance of the Class P Certificates, or otherwise by check mailed
        by
        first class mail to the address of the Person entitled thereto, as such name
        and
        address shall appear on the Certificate Register. Notwithstanding the above,
        the
        final distribution on this Certificate will be made after due notice by the
        Securities Administrator of the pendency of such distribution and only upon
        presentation and surrender of this Certificate at the office or agency appointed
        by the Securities Administrator for that purpose as provided in the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Certificate Principal
        Balance of the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. Any such consent by the Holder
        of
        this Certificate shall be conclusive and binding on such Holder and upon
        all
        future Holders of this Certificate and of any Certificate issued upon the
        transfer hereof or in exchange herefor or in lieu hereof whether or not notation
        of such consent is made upon this Certificate. The Agreement also permits
        the
        amendment thereof, in certain limited circumstances, without the consent
        of the
        Holders of any of the Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A or Regulation S under the
        1933
        Act, written certifications from the Holder of the Certificate desiring to
        effect the transfer, and from such Holder’s prospective transferee,
        substantially in the forms attached to the Agreement as Exhibit B-1, (ii)
        if
        such transfer is purportedly being made in reliance upon Rule 501(a) under
        the
        1933 Act, written certifications from the Holder of the Certificate desiring
        to
        effect the transfer and from such Holder’s prospective transferee, substantially
        in the form attached to the Agreement as Exhibit B-2 and (iii) in all other
        cases, an Opinion of Counsel satisfactory to it that such transfer may be
        made
        without such registration or qualification (which Opinion of Counsel shall
        not
        be an expense of the Trust Fund or of the Depositor, the Trustee, the Master
        Servicer or the Securities Administrator in their respective capacities as
        such), together with copies of the written certification(s) of the Holder
        of the
        Certificate desiring to effect the transfer and/or such Holder’s prospective
        transferee upon which such Opinion of Counsel is based. None of the Depositor,
        the Trustee or the Securities Administrator is obligated to register or qualify
        the Class of Certificates specified on the face hereof under the 1933 Act
        or any
        other securities law or to take any action not otherwise required under the
        Agreement to permit the transfer of such Certificates without registration
        or
        qualification. Any Holder desiring to effect a transfer of this Certificate
        shall be required to indemnify the Trustee, the Depositor, the Master Servicer
        and the Securities Administrator against any liability that may result if
        the
        transfer is not so exempt or is not made in accordance with such federal
        and
        state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02(c) of the Agreement.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same. No service charge
        will be made for any such registration of transfer or exchange of Certificates,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge that may be imposed in connection
        with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; however,
        such
        right to purchase is subject to the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans (and properties acquired in respect thereof) at the time of
        purchase being less than or equal to 10% of the aggregate principal balance
        of
        the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assume any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class P Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                     Custodian      

                (Cust)
                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	 	 	 	 
	 	 	 	 
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	 	 	 	 
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              
	 

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee)

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address:
        ______________________________________________________________

      
        	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
         

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to
                    ____________________________________________________________________________________________________

                
	 _____________________________________________________________________________________________
	
                  for
                    the account of
                    _____________________________________________________________________________________________

                
	
                  account
                    number ___________________________________________ or,
                    if mailed by check, to ________________________________

                
	 _____________________________________________________________________________________________
	
                  Applicable
                    statements should be mailed to
                    __________________________________________________________________________

                
	 _____________________________________________________________________________________________
	 
	
                  This
                    information is provided by
                    ____________________________________________________________________________

                
	
                  assignee
                    named above, or
                    _______________________________________________________________________________________

                
	
                  its
                    agent.

                	 

        

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-6

       

      

      FORM
        OF
        CLASS R CERTIFICATE

       

      THIS
        CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES
        PERSON.

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES,
        THIS CERTIFICATE REPRESENTS THE SOLE “RESIDUAL INTEREST” IN EACH “REAL ESTATE
        MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IN
        ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT REFERRED
        TO
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY
        NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO THE 1933
        ACT
        AND SUCH LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM
        REGISTRATION UNDER THE 1933 ACT AND UNDER APPLICABLE STATE LAW AND IS
        TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE
        AGREEMENT.

       

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
        AS
        AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE WILL BE REGISTERED EXCEPT IN
        COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN AND IN ACCORDANCE WITH THE
        PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IF
        THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES
        ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
        POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
        GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY
        OF
        ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
        IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER
        1 OF
        THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
        511
        OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
        CODE
        (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL
        HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF
        A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
        THE
        ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
        ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
        TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER
        OF ANY
        TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
        ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION
        SHALL
        BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
        NOT
        BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING,
        BUT
        NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
        OF
        THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
        THE
        PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 6.02(d) OF THE
        AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION
        IS
        PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
        CERTIFICATE.

       

      

      
        	
                Series
                  2006-SD1, Class R

              	 	
                Aggregate
                  Percentage Interest of the Class R Certificates as of the Issue
                  Date:
                  100.00%

              
	 	 	 
	
                Date
                  of Pooling and Servicing Agreement: February 28, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, N.A.

              
	 	 	 
	
                First
                  Distribution Date: April 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

              
	 	 	 
	
                Cut-off
                  Date: February 28, 2006

              	 	
                Issue
                  Date: March 27, 2006

              
	 	 	 
	
                No
                  __

              	 	 
	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD1

       

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      

      This
        certifies that _______________ is the registered owner of a Percentage Interest
        set forth above in that certain beneficial ownership interest evidenced by
        all
        the Class R Certificates in REMIC II created pursuant to a Pooling and Servicing
        Agreement, dated as specified above (the “Agreement”), among ACE Securities
        Corp. as depositor (hereinafter called the “Depositor”, which term includes any
        successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer
        (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”), Wells Fargo
        Bank, N.A. as a servicer (“Wells Fargo”; each of Wells Fargo and Ocwen, a
“Servicer” and together, the “Servicers”) and HSBC Bank USA, National
        Association as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. Certain of the Mortgage Loans
        are
        being serviced by Select Portfolio Servicing, Inc. (“SPS,” together with Ocwen
        and Wells Fargo, each a “Servicer” and together the “Servicers”) pursuant to a
        separate servicing agreement. To the extent not defined herein, the capitalized
        terms used herein have the meanings assigned in the Agreement. This Certificate
        is issued under and is subject to the terms, provisions and conditions of
        the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        the
        acceptance hereof assents and by which such Holder is bound.

       

      Pursuant
        to the terms of the Agreement, distributions will be made on the 25th day
        of
        each month or, if such 25th day is not a Business Day, the Business Day
        immediately following such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “Record Date”), in an amount equal to the product
        of the Percentage Interest evidenced by this Certificate and the amount required
        to be distributed to the Holders of Class R Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class R Certificates, or
        otherwise by check mailed by first class mail to the address of the Person
        entitled thereto, as such name and address shall appear on the Certificate
        Register. Notwithstanding the above, the final distribution on this Certificate
        will be made after due notice by the Securities Administrator of the pendency
        of
        such distribution and only upon presentation and surrender of this Certificate
        at the office or agency appointed by the Securities Administrator for that
        purpose as provided in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing the Percentage Interest in
        the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Account and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. Any such consent by the Holder
        of
        this Certificate shall be conclusive and binding on such Holder and upon
        all
        future Holders of this Certificate and of any Certificate issued upon the
        transfer hereof or in exchange herefor or in lieu hereof whether or not notation
        of such consent is made upon this Certificate. The Agreement also permits
        the
        amendment thereof, in certain limited circumstances, without the consent
        of the
        Holders of any of the Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable in the Certificate Register
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, Certificates are exchangeable for new Certificates of
        the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the 1933 Act, and an effective
        registration or qualification under applicable state securities laws, or
        is made
        in a transaction that does not require such registration or qualification.
        In
        the event that such a transfer of this Certificate is to be made without
        registration or qualification, the Securities Administrator shall require
        receipt of (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A under the 1933 Act, written certifications from the Holder of the
        Certificate desiring to effect the transfer, and from such Holder’s prospective
        transferee, substantially in the forms attached to the Agreement as Exhibit
        B-1,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Master Servicer or the Securities Administrator in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. None
        of the
        Depositor, the Trustee or the Securities Administrator is obligated to register
        or qualify the Class of Certificates specified on the face hereof under the
        1933
        Act or any other securities law or to take any action not otherwise required
        under the Agreement to permit the transfer of such Certificates without
        registration or qualification. Any Holder desiring to effect a transfer of
        this
        Certificate shall be required to indemnify the Trustee, the Depositor, the
        Master Servicer and the Securities Administrator against any liability that
        may
        result if the transfer is not so exempt or is not made in accordance with
        such
        federal and state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02 of the Agreement.

       

      Prior
        to
        registration of any transfer, sale or other disposition of this Certificate,
        the
        proposed transferee shall provide to the Securities Administrator (i) an
        affidavit to the effect that such transferee is any Person other than a
        Disqualified Organization or the agent (including a broker, nominee or
        middleman) of a Disqualified Organization, and (ii) a certificate that
        acknowledges that (A) the Class R Certificates have been designated as
        representing the beneficial ownership of the residual interests in each of
        REMIC
        I and REMIC II, (B) it will include in its income a pro
        rata
        share of
        the net income of the Trust Fund and that such income may be an “excess
        inclusion,” as defined in the Code, that, with certain exceptions, cannot be
        offset by other losses or benefits from any tax exemption, and (C) it expects
        to
        have the financial means to satisfy all of its tax obligations including
        those
        relating to holding the Class R Certificates. Notwithstanding the registration
        in the Certificate Register of any transfer, sale or other disposition of
        this
        Certificate to a Disqualified Organization or an agent (including a broker,
        nominee or middleman) of a Disqualified Organization, such registration shall
        be
        deemed to be of no legal force or effect whatsoever and such Person shall
        not be
        deemed to be a Certificateholder for any purpose, including, but not limited
        to,
        the receipt of distributions in respect of this Certificate.

       

      The
        Holder of this Certificate, by its acceptance hereof, shall be deemed to
        have
        consented to the provisions of Section 6.02 of the Agreement and to any
        amendment of the Agreement deemed necessary by counsel of the Depositor to
        ensure that the transfer of this Certificate to any Person other than a
        Permitted Transferee or any other Person will not cause any portion of the
        Trust
        Fund to cease to qualify as a REMIC or cause the imposition of a tax upon
        any
        REMIC.

       

      No
        service charge will be made for any such registration of transfer or exchange
        of
        Certificates, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge that may be imposed
        in
        connection with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; however,
        such
        right to purchase is subject to the aggregate Scheduled Principal Balance
        of the
        Mortgage Loans (and properties acquired in respect thereof) at the time of
        purchase being less than or equal to 10% of the aggregate Scheduled Principal
        Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class R Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  _________________________________

              
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                     Custodian      

                (Cust)
                  (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	 	 	 	 
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	 	 	 	 
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              
	 

      

      

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

      
         

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to
                    ____________________________________________________________________________________________________

                
	 _____________________________________________________________________________________________
	
                  for
                    the account of
                    _____________________________________________________________________________________________

                
	
                  account
                    number ___________________________________________ or,
                    if mailed by check, to ________________________________

                
	 _____________________________________________________________________________________________
	
                  Applicable
                    statements should be mailed to
                    __________________________________________________________________________

                
	 _____________________________________________________________________________________________
	 
	
                  This
                    information is provided by
                    ____________________________________________________________________________

                
	
                  assignee
                    named above, or
                    _______________________________________________________________________________________

                
	
                  its
                    agent.

                	 

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-1

      FORM
        OF
        TRANSFEROR REPRESENTATION LETTER

       

      [Date]

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD1

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD1

                Asset
                  Backed Pass-Through Certificates 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the transfer by ______________________ (the “Transferor”) to
        ___________________ (the “Transferee”) of the captioned asset-backed
        pass-through certificates (the “Certificates”), the Transferor hereby certifies
        as follows:

       

      Neither
        the Transferor nor anyone acting on its behalf has (a) offered, pledged,
        sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        (e)
        has taken any other action, that (in the case of each of subclauses (a) through
        (e) above) would constitute a distribution of the Certificates under the
        Securities Act of 1933, as amended (the “1933 Act”), or would render the
        disposition of any Certificate a violation of Section 5 of the 1933 Act or
        any
        state securities law or would require registration or qualification pursuant
        thereto. The Transferor will not act, nor has it authorized or will it authorize
        any person to act, in any manner set forth in the foregoing sentence with
        respect to any Certificate. The Transferor will not sell or otherwise transfer
        any of the Certificates, except in compliance with the provisions of that
        certain Pooling and Servicing Agreement, dated as of February 28, 2006, among
        ACE Securities Corp. as Depositor, Ocwen Loan Servicing, LLC as a servicer,
        Wells Fargo Bank, N.A. as a servicer, Wells Fargo Bank, N.A. as Master Servicer
        and Securities Administrator and HSBC Bank USA, National Association as trustee
        (the “Pooling and Servicing Agreement”), pursuant to which Pooling and Servicing
        Agreement the Certificates were issued.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

                ______________________________________

              
	 	 	 	 	 	 	 	
                [Transferor]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEREE REPRESENTATION LETTER

       

      [Date]

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD1

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD1 

                Asset
                  Backed Pass-Through Certificates 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

      Ladies
        and Gentlemen:

       

      In
        connection with the purchase from ______________________________ (the
“Transferor”) on the date hereof of the captioned trust certificates (the
“Certificates”), (the “Transferee”) hereby certifies as follows:

       

      1. The
        Transferee is a “qualified institutional buyer” as that term is defined in Rule
        144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has
        completed either of the forms of certification to that effect attached hereto
        as
        Annex 1 or Annex 2. The Transferee is aware that the sale to it is being
        made in
        reliance on Rule 144A. The Transferee is acquiring the Certificates for its
        own
        account or for the account of a qualified institutional buyer, and understands
        that such Certificate may be resold, pledged or transferred only (i) to a
        person
        reasonably believed to be a qualified institutional buyer that purchases
        for its
        own account or for the account of a qualified institutional buyer to whom
        notice
        is given that the resale, pledge or transfer is being made in reliance on
        Rule
        144A, or (ii) pursuant to another exemption from registration under the 1933
        Act.

       

      2. The
        Transferee has been furnished with all information regarding (a) the
        Certificates and distributions thereon, (b) the nature, performance and
        servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
        referred to below, and (d) any credit enhancement mechanism associated with
        the
        Certificates, that it has requested.

       

      3. The
        Transferee: (a) is not an employee benefit plan or other plan subject to
        the
        prohibited transaction provisions of the Employee Retirement Income Security
        Act
        of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
        1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
        an investment manager, a named fiduciary or a trustee of any Plan) acting,
        directly or indirectly, on behalf of or purchasing any Certificate with “plan
        assets” of any Plan within the meaning of the Department of Labor (“DOL”)
        regulation at 29 C.F.R. §2510.3-101 or (b) has provided the Securities
        Administrator with an Opinion of Counsel on which the Trustee, the Depositor,
        the Master Servicer, the Securities Administrator and the Servicers may rely,
        acceptable to and in form and substance satisfactory to the Trustee to the
        effect that the purchase of Certificates is permissible under applicable
        law,
        will not constitute or result in any non-exempt prohibited transaction under
        ERISA or Section 4975 of the Code and will not subject the Trust Fund, the
        Trustee, the Depositor, the Master Servicer, the Securities Administrator
        or the
        Servicers to any obligation or liability (including obligations or liabilities
        under ERISA or Section 4975 of the Code) in addition to those undertaken
        in the
        Pooling and Servicing Agreement.

       

      In
        addition, the Transferee hereby certifies, represents and warrants to, and
        covenants with, the Depositor, the Trustee, the Securities Administrator,
        the
        Master Servicer and the Servicers that the Transferee will not transfer such
        Certificates to any Plan or person unless such Plan or person meets the
        requirements set forth in paragraph 3 above.

       

      All
        capitalized terms used but not otherwise defined herein have the respective
        meanings assigned thereto in the Pooling and Servicing Agreement, dated as
        of
        February 28, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank,
        N.A. as Master Servicer and Securities Administrator, Ocwen Loan Servicing,
        LLC
        as a Servicer, Wells Fargo Bank, N.A. as a Servicer and HSBC Bank USA, National
        Association as Trustee, pursuant to which the Certificates were
        issued.

       

      
        	 	 	 	 	 	 	 	
                [TRANSFEREE]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        A TO EXHIBIT B-1 

       

      FORM
        OF
        REGULATION S TRANSFER CERTIFICATE

       

      [Date]

       

      

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD1

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD1 Asset
                  Backed
                  Pass-Through Certificates, Class CE -1, Class CE-2 and Class P
                  Certificates     

              

      

       

      Ladies
        and Gentlemen:

       

      Reference
        is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated
        as of February 28, 2006, among ACE Securities Corp. as Depositor, Ocwen Loan
        Servicing, LLC as a servicer, Wells Fargo Bank, N.A. as a servicer, Wells
        Fargo
        Bank, N.A. as Master Servicer and Securities Administrator and HSBC Bank
        USA,
        National Association as trustee (the “Trustee”). Capitalized terms used herein
        but not defined herein shall have the meanings assigned thereto in the
        Agreement.

       

      This
        letter relates to U.S. $[__________] Certificate Principal Balance of Class
        [CE][1][2][P] Certificates (the “Certificates”) which are held in the name of
        [name of transferor] (the “Transferor”) to effect the transfer of the
        Certificates to a person who wishes to take delivery thereof in the form
        of an
        equivalent beneficial interest [name of transferee] (the
“Transferee”).

       

      In
        connection with such request, the Transferor hereby certifies that such transfer
        has been effected in accordance with the transfer restrictions set forth
        in the
        Agreement relating to the Certificates and that the following additional
        requirements (if applicable) were satisfied:

       

      (a) the
        offer
        of the Certificates was not made to a person in the United States;

       

      (b) at
        the
        time the buy order was originated, the Transferee was outside the United
        States
        or the Transferor and any person acting on its behalf reasonably believed
        that
        the Transferee was outside the United States;

       

      (c) no
        directed selling efforts were made in contravention of the requirements of
        Rule
        903(b) or 904(b) of Regulation S, as applicable;

       

      (d) the
        transfer or exchange is not part of a plan or scheme to evade the registration
        requirements of the Securities Act;

       

      (e) the
        Transferee is not a U.S. Person, as defined in Regulation S under the Securities
        Act;

       

      (f) the
        transfer was made in accordance with the applicable provisions of Rule 903(b)(2)
        or (3) or Rule 904(b)(1), as the case may be; and

       

      (g) the
        Transferee understands that the Certificates have not been and will not be
        registered under the Securities Act, that any offers, sales or deliveries
        of the
        Certificates purchased by the Transferee in the United States or to U.S.
        persons
        prior to the date that is 40 days after the later of (i) the commencement
        of the
        offering of the Certificates and (ii) the Closing Date, may constitute a
        violation of United States law, and that (x) distributions of principal and
        interest and (y) the exchange of beneficial interests in a Temporary Regulation
        S Global Certificate for beneficial interests in the related Permanent
        Regulation S Global Certificate, in each case, will be made in respect of
        such
        Certificates only following the delivery by the Holder of a certification
        of
        non-U.S. beneficial ownership, at the times and in the manner set forth in
        the
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        1 TO EXHIBIT B-1

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees Other Than Registered Investment Companies]

       

      The
        undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
        respect to the asset backed pass-through certificates (the “Certificates”)
        described in the Transferee Certificate to which this certification relates
        and
        to which this certification is an Annex:

       

      1. As
        indicated below, the undersigned is the President, Chief Financial Officer,
        Senior Vice President or other executive officer of the entity purchasing
        the
        Certificates (the “Transferee”).

       

      2. In
        connection with purchases by the Transferee, the Transferee is a “qualified
        institutional buyer” as that term is defined in Rule 144A under the Securities
        Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a
        discretionary basis $________________1 
        in
        securities (except for the excluded securities referred to below) as of the
        end
        of the Transferee’s most recent fiscal year (such amount being calculated in
        accordance with Rule 144A) and (ii) the Transferee satisfies the criteria
        in the
        category marked below.

       

      
        	 	
                ___

              	
                Corporation,
                  etc.
                  The Transferee is a corporation (other than a bank, savings and
                  loan
                  association or similar institution), Massachusetts or similar business
                  trust, partnership, or any organization described in Section 501(c)(3)
                  of
                  the Internal Revenue Code of 1986.

              
	 	 	 
	 	
                ___

              	
                Bank.
                  The Transferee (a) is a national bank or banking institution organized
                  under the laws of any State, territory or the District of Columbia,
                  the
                  business of which is substantially confined to banking and is supervised
                  by the State or territorial banking commission or similar official
                  or is a
                  foreign bank or equivalent institution, and (b) has an audited
                  net worth
                  of at least $25,000,000 as demonstrated in its latest annual financial
                  statements, a
                  copy of which is attached hereto.

              
	 	 	 
	 	
                ___

              	
                Savings
                  and Loan.
                  The Transferee (a) is a savings and loan association, building
                  and loan
                  association, cooperative bank, homestead association or similar
                  institution, which is supervised and examined by a State or Federal
                  authority having supervision over any such institutions or is a
                  foreign
                  savings and loan association or equivalent institution and (b)
                  has an
                  audited net worth of at least $25,000,000 as demonstrated in its
                  latest
                  annual financial statements, a
                  copy of which is attached hereto.

              

      

       

      
        

        
          
            	1	
                    Transferee
                      must own and/or invest on a discretionary basis at least $100,000,000
                      in
                      securities unless Transferee is a dealer, and, in that case,
                      Transferee
                      must own and/or invest on a discretionary basis at least $10,000,000
                      in
                      securities.

                  

          

        

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      
        	 	 	 
	 	
                ___

              	
                Broker-dealer.
                  The Transferee is a dealer registered pursuant to Section 15 of
                  the
                  Securities Exchange Act of 1934.

              
	 	 	 
	 	
                ___

              	
                Insurance
                  Company.
                  The Transferee is an insurance company whose primary and predominant
                  business activity is the writing of insurance or the reinsuring
                  of risks
                  underwritten by insurance companies and which is subject to supervision
                  by
                  the insurance commissioner or a similar official or agency of a
                  State,
                  territory or the District of Columbia.

              
	 	 	 
	 	
                ___

              	
                State
                  or Local Plan.
                  The Transferee is a plan established and maintained by a State,
                  its
                  political subdivisions, or any agency or instrumentality of the
                  State or
                  its political subdivisions, for the benefit of its
                  employees.

              
	 	 	 
	 	
                ___

              	
                ERISA
                  Plan.
                  The Transferee is an employee benefit plan within the meaning of
                  Title I
                  of the Employee Retirement Income Security Act of 1974, as
                  amended.

              
	 	 	 
	 	
                ___

              	
                Investment
                  Advisor
                  The Transferee is an investment advisor registered under the Investment
                  Advisers Act of 1940.

              
	 	 	 

      

      3. The
        term
“securities”
as
        used
        herein does
        not include
        (i)
        securities of issuers that are affiliated with the Transferee, (ii) securities
        that are part of an unsold allotment to or subscription by the Transferee,
        if
        the Transferee is a dealer, (iii) securities issued or guaranteed by the
        U.S. or
        any instrumentality thereof, (iv) bank deposit notes and certificates of
        deposit, (v) loan participations, (vi) repurchase agreements, (vii)
        securities owned but subject to a repurchase agreement and (viii) currency,
        interest rate and commodity swaps.

       

      4. For
        purposes of determining the aggregate amount of securities owned and/or invested
        on a discretionary basis by the Transferee, the Transferee used the cost
        of such
        securities to the Transferee and did not include any of the securities referred
        to in the preceding paragraph. Further, in determining such aggregate amount,
        the Transferee may have included securities owned by subsidiaries of the
        Transferee, but only if such subsidiaries are consolidated with the Transferee
        in its financial statements prepared in accordance with generally accepted
        accounting principles and if the investments of such subsidiaries are managed
        under the Transferee’s direction. However, such securities were not included if
        the Transferee is a majority-owned, consolidated subsidiary of another
        enterprise and the Transferee is not itself a reporting company under the
        Securities Exchange Act of 1934.

       

      5. The
        Transferee acknowledges that it is familiar with Rule 144A and understands
        that
        the Transferor and other parties related to the Certificates are relying
        and
        will continue to rely on the statements made herein because one or more sales
        to
        the Transferee may be in reliance on Rule 144A.

       

      
        	 	
                ___

              	
                ___

              	 	
                Will
                  the Transferee be purchasing the Certificates

              
	 	
                Yes

              	
                No

              	 	
                only
                  for the Transferee’s own account?

              
	 	 	 	 	 

      

      6. If
        the
        answer to the foregoing question is “no”, the Transferee agrees that, in
        connection with any purchase of securities sold to the Transferee for the
        account of a third party (including any separate account) in reliance on
        Rule
        144A, the Transferee will only purchase for the account of a third party
        that at
        the time is a “qualified institutional buyer” within the meaning of Rule 144A.
        In addition, the Transferee agrees that the Transferee will not purchase
        securities for a third party unless the Transferee has obtained a current
        representation letter from such third party or taken other appropriate steps
        contemplated by Rule 144A to conclude that such third party independently
        meets
        the definition of “qualified institutional buyer” set forth in Rule
        144A.

       

      7. The
        Transferee will notify each of the parties to which this certification is
        made
        of any changes in the information and conclusions herein. Until such notice
        is
        given, the Transferee’s purchase of the Certificates will constitute a
        reaffirmation of this certification as of the date of such purchase. In
        addition, if the Transferee is a bank or savings and loan as provided above,
        the
        Transferee agrees that it will furnish to such parties updated annual financial
        statements promptly after they become available.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                Print
                  Name of Transferee

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        2 TO EXHIBIT B-1

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees That Are Registered Investment Companies]

       

      The
        undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
        respect to the asset backed pass-through certificates (the “Certificates”)
        described in the Transferee Certificate to which this certification relates
        and
        to which this certification is an Annex:

       

      1. As
        indicated below, the undersigned is the President, Chief Financial Officer
        or
        Senior Vice President of the entity purchasing the Certificates (the
“Transferee”) or, if the Transferee is a “qualified institutional buyer” as that
        term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”)
        because the Transferee is part of a Family of Investment Companies (as defined
        below), is such an officer of the investment adviser (the
“Adviser”).

       

      2. In
        connection with purchases by the Transferee, the Transferee is a “qualified
        institutional buyer” as defined in Rule 144A because (i) the Transferee is an
        investment company registered under the Investment Company Act of 1940, and
        (ii)
        as marked below, the Transferee alone, or the Transferee’s Family of Investment
        Companies, owned at least $100,000,000 in securities (other than the excluded
        securities referred to below) as of the end of the Transferee’s most recent
        fiscal year. For purposes of determining the amount of securities owned by
        the
        Transferee or the Transferee’s Family of Investment Companies, the cost of such
        securities was used.

       

      
        	 	
                ___

              	
                The
                  Transferee owned $________________________ in securities (other
                  than the
                  excluded securities referred to below) as of the end of the Transferee’s
                  most recent fiscal year (such amount being calculated in accordance
                  with
                  Rule 144A).

              
	 	 	 
	 	
                ___

              	
                The
                  Transferee is part of a Family of Investment Companies which owned
                  in the
                  aggregate $_______________ in securities (other than the excluded
                  securities referred to below) as of the end of the Transferee’s most
                  recent fiscal year (such amount being calculated in accordance
                  with Rule
                  144A).

              
	 	 	 

      

      3. The
        term
“Family
        of Investment Companies”
        as used
        herein means two or more registered investment companies (or series thereof)
        that have the same investment adviser or investment advisers that are affiliated
        (by virtue of being majority owned subsidiaries of the same parent or because
        one investment adviser is a majority owned subsidiary of the
        other).

       

      4. The
        term
“securities”
        as used
        herein does not include (i) securities of issuers that are affiliated with
        the
        Transferee or are part of the Transferee’s Family of Investment Companies, (ii)
        securities issued or guaranteed by the U.S. or any instrumentality thereof,
        (iii) bank deposit notes and certificates of deposit, (iv) loan participations,
        (v) repurchase agreements, (vi) securities owned but subject to a
        repurchase agreement and (vii) currency, interest rate and commodity
        swaps.

       

      5. The
        Transferee is familiar with Rule 144A and understands that the parties to
        which
        this certification is being made are relying and will continue to rely on
        the
        statements made herein because one or more sales to the Transferee will be
        in
        reliance on Rule 144A. In addition, the Transferee will only purchase for
        the
        Transferee’s own account.

       

      6. The
        undersigned will notify the parties to which this certification is made of
        any
        changes in the information and conclusions herein. Until such notice, the
        Transferee’s purchase of the Certificates will constitute a reaffirmation of
        this certification by the undersigned as of the date of such
        purchase.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                Print
                  Name of Transferee or Advisor

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                IF
                  AN ADVISER:

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                ______________________________________

              
	 	 	 	 	 	 	 	
                Print
                  Name of Transferee

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEREE REPRESENTATION LETTER

       

      The
        undersigned hereby certifies on behalf of the purchaser named below (the
        “Purchaser”) as follows:

       

      1. I
        am an
        executive officer of the Purchaser.

       

      2. The
        Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
        144A”) under the Securities Act of 1933, as amended.

       

      3. As
        of the
        date specified below (which is not earlier than the last day of the Purchaser’s
        most recent fiscal year), the amount of “securities”, computed for purposes of
        Rule 144A, owned and invested on a discretionary basis by the Purchaser was
        in
        excess of $100,000,000.

       

      Name
        of
        Purchaser _______________________________________

      

      By:
        (Signature) __________________________________________

      

      Name
        of
        Signatory _______________________________________

      

      Title
        __________________________________________________

       

      Date
        of
        this certificate ____________________________________

      

      Date
        of
        information provided in paragraph 3 ___________________

      

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-2

       

      FORM
        OF
        TRANSFEROR REPRESENTATION LETTER

       

      ____________,
        20__

      

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD1

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD1 

                Asset
                  Backed Pass-Through Certificates, 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the transfer by ________________ (the “Transferor”) to
        __________________________ (the “Transferee”) of the captioned asset-backed
        pass-through certificates (the “Certificates”), the Transferor hereby certifies
        as follows:

       

      Neither
        the Seller nor anyone acting on its behalf has (a) offered, pledged, sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        or
        (e) has taken any other action, that (as to any of (a) through (e) above)
        would
        constitute a distribution of the Certificates under the Securities Act of
        1933
        (the “Act’), that would render the disposition of any Certificate a violation of
        Section 5 of the Act or any state securities law, or that would require
        registration or qualification pursuant thereto. The Seller will not act,
        in any
        manner set forth in the foregoing sentence with respect to any Certificate.
        The
        Seller has not and will not sell or otherwise transfer any of the Certificates,
        except in compliance with the provisions of that certain Pooling and Servicing
        Agreement, dated as of February 28, 2006, among ACE Securities Corp. as
        Depositor, Ocwen Loan Servicing, LLC as a servicer, Wells Fargo Bank, N.A.
        as a
        servicer, Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator
        and HSBC Bank USA, National Association as trustee (the “Pooling
        and Servicing Agreement”), pursuant to which Pooling and Servicing Agreement the
        Certificates were issued.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

                ______________________________________

              
	 	 	 	 	 	 	 	
                (Transferor)

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEREE REPRESENTATION LETTER

       

      

      _______________,
        20__

      

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD1

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD1 

                Asset
                  Backed Pass-Through Certificates, 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the transfer by ______________________ (the “Transferor”) to
        __________________________ (the “Transferee”) of the captioned mortgage
        pass-through certificates (the “Certificates”), the Transferee hereby certifies
        as follows:

       

      1. The
        Transferee understands that (a) the Certificates have not been and will not
        be
        registered or qualified under the Securities Act of 1933, as amended (the
“Act”)
        or any state securities law, (b) the Depositor is not required to so register
        or
        qualify the Certificates, (c) the Certificates may be resold only if registered
        and qualified pursuant to the provisions of the Act or any state securities
        law,
        or if an exemption from such registration and qualification is available,
        (d)
        the Pooling and Servicing Agreement contains restrictions regarding the transfer
        of the Certificates and (e) the Certificates will bear a legend to the foregoing
        effect.

       

      2. The
        Transferee is acquiring the Certificates for its own account for investment
        only
        and not with a view to or for sale in connection with any distribution thereof
        in any manner that would violate the Act or any applicable state securities
        laws.

       

      3. The
        Transferee is (a) a substantial, sophisticated institutional investor having
        such knowledge and experience in financial and business matters, and, in
        particular, in such matters related to securities similar to the Certificates,
        such that it is capable of evaluating the merits and risks of investment
        in the
        Certificates, (b) able to bear the economic risks of such an investment and
        (c)
        an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
        to the Act.

       

      4. The
        Transferee has been furnished with, and has had an opportunity to review
        (a) a
        copy of the Pooling and Servicing Agreement and (b) such other information
        concerning the Certificates, the Mortgage Loans and the Depositor as has
        been
        requested by the Transferee from the Depositor or the Transferor and is relevant
        to the Transferee’s decision to purchase the Certificates. The Transferee has
        had any questions arising from such review answered by the Depositor or the
        Transferor to the satisfaction of the Transferee.

       

      5. The
        Transferee has not and will not nor has it authorized or will it authorize
        any
        person to (a) offer, pledge, sell, dispose of or otherwise transfer any
        Certificate, any interest in any Certificate or any other similar security
        to
        any person in any manner, (b) solicit any offer to buy or to accept a pledge,
        disposition of other transfer of any Certificate, any interest in any
        Certificate or any other similar security from any person in any manner,
        (c)
        otherwise approach or negotiate with respect to any Certificate, any interest
        in
        any Certificate or any other similar security with any person in any manner,
        (d)
        make any general solicitation by means of general advertising or in any other
        manner or (e) take any other action, that (as to any of (a) through (e) above)
        would constitute a distribution of any Certificate under the Act, that would
        render the disposition of any Certificate a violation of Section 5 of the
        Act or
        any state securities law, or that would require registration or qualification
        pursuant thereto. The Transferee will not sell or otherwise transfer any
        of the
        Certificates, except in compliance with the provisions of the Pooling and
        Servicing Agreement.

       

      6. The
        Transferee: (a) is not an employee benefit plan or other plan subject to
        the
        prohibited transaction provisions of the Employee Retirement Income Security
        Act
        of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
        1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
        an investment manager, a named fiduciary or a trustee of any Plan) acting,
        directly or indirectly, on behalf of or purchasing any Certificate with “plan
        assets” of any Plan within the meaning of the Department of Labor (“DOL”)
        regulation at 29 C.F.R. §2510.3-101 or (b) has provided the Trustee with an
        Opinion of Counsel on which the Depositor, the Master Servicer, the Securities
        Administrator, the Trustee and the Servicers may rely, acceptable to and
        in form
        and substance satisfactory to the Trustee to the effect that the purchase
        of
        Certificates is permissible under applicable law, will not constitute or
        result
        in any non-exempt prohibited transaction under ERISA or Section 4975 of the
        Code
        and will not subject the Trust Fund, the Trustee, the Master Servicer, the
        Securities Administrator, the Depositor or the Servicers to any obligation
        or
        liability (including obligations or liabilities under ERISA or Section 4975
        of
        the Code) in addition to those undertaken in the Pooling and Servicing
        Agreement.

       

      In
        addition, the Transferee hereby certifies, represents and warrants to, and
        covenants with, the Depositor, the Trustee, the Securities Administrator,
        the
        Master Servicer and the Servicers that the Transferee will not transfer such
        Certificates to any Plan or person unless such Plan or person meets the
        requirements set forth in paragraph 6 above.

       

      All
        capitalized terms used but not otherwise defined herein have the respective
        meanings assigned thereto in the Pooling and Servicing Agreement, dated as
        of
        February 28, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank,
        N.A. as Master Servicer and Securities Administrator, Ocwen Loan Servicing,
        LLC
        as a Servicer, Wells Fargo Bank, N.A.
        as a
        Servicer and HSBC Bank USA, National Association as Trustee, pursuant to
        which
        the Certificates were issued.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 
	 	 	 	 	 	 	 	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-3

       

      FORM
        OF
        TRANSFER AFFIDAVIT AND AGREEMENT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

      ___________________________
        being duly sworn, deposes, represents and warrants as follows:

       

      
        	 	
                1.

              	
                I
                  am a _____________________ of _______________________________ (the
                  “Owner”) a corporation duly organized and existing under the laws of
                  _________________________, the record owner of ACE Securities Corp.
                  Home
                  Equity Loan Trust, Series 2006-SD1 Asset Backed Pass-Through Certificates,
                  Class R Certificates (the “Class R Certificates”), on behalf of whom I
                  make this affidavit and agreement. Capitalized terms used but not
                  defined
                  herein have the respective meanings assigned thereto in the Pooling
                  and
                  Servicing Agreement pursuant to which the Class R Certificates
                  were
                  issued.

              
	 	 	 
	 	
                2.

              	
                The
                  Owner (i) is and will be a “Permitted Transferee” as of
                  ____________________. ____ and (ii) is acquiring the Class R Certificates
                  for its own account or for the account of another Owner from which
                  it has
                  received an affidavit in substantially the same form as this affidavit.
                  A
                  “Permitted Transferee” is any person other than a “disqualified
                  organization” or a possession of the United States. For this purpose, a
                  “disqualified organization” means the United States, any state or
                  political subdivision thereof, any agency or instrumentality of
                  any of the
                  foregoing (other than an instrumentality all of the activities
                  of which
                  are subject to tax and, except for the Federal Home Loan Mortgage
                  Corporation, a majority of whose board of directors is not selected
                  by any
                  such governmental entity) or any foreign government, international
                  organization or any agency or instrumentality of such foreign government
                  or organization, any real electric or telephone cooperative, or
                  any
                  organization (other than certain farmers’ cooperatives) that is generally
                  exempt from federal income tax unless such organization is subject
                  to the
                  tax on unrelated business taxable income.

              
	 	 	 
	 	
                3.

              	
                The
                  Owner is aware (i) of the tax that would be imposed on transfers
                  of the
                  Class R Certificates to disqualified organizations under the Internal
                  Revenue Code of 1986 that applies to all transfers of the Class
                  R
                  Certificates after April 31, 1988; (ii) that such tax would be
                  on the
                  transferor or, if such transfer is through an agent (which person
                  includes
                  a broker, nominee or middleman) for a non-Permitted Transferee,
                  on the
                  agent; (iii) that the person otherwise liable for the tax shall
                  be
                  relieved of liability for the tax if the transferee furnishes to
                  such
                  person an affidavit that the transferee is a Permitted Transferee
                  and, at
                  the time of transfer, such person does not have actual knowledge
                  that the
                  affidavit is false; and (iv) that each of the Class R Certificates
                  may be
                  a “noneconomic residual interest” within the meaning of proposed Treasury
                  regulations promulgated under the Code and that the transferor
                  of a
                  “noneconomic residual interest” will remain liable for any taxes due with
                  respect to the income on such residual interest, unless no significant
                  purpose of the transfer is to impede the assessment or collection
                  of
                  tax.

              
	 	 	 
	 	
                4.

              	
                The
                  Owner is aware of the tax imposed on a “pass-through entity” holding the
                  Class R Certificates if, at any time during the taxable year of
                  the
                  pass-through entity, a non-Permitted Transferee is the record holder
                  of an
                  interest in such entity. (For this purpose, a “pass-through entity”
                  includes a regulated investment company, a real estate investment
                  trust or
                  common trust fund, a partnership, trust or estate, and certain
                  cooperatives.)

              
	 	 	 
	 	
                5.

              	
                The
                  Owner is aware that the Securities Administrator will not register
                  the
                  transfer of any Class R Certificate unless the transferee, or the
                  transferee’s agent, delivers to the Securities Administrator, among other
                  things, an affidavit in substantially the same form as this affidavit.
                  The
                  Owner expressly agrees that it will not consummate any such transfer
                  if it
                  knows or believes that any of the representations contained in
                  such
                  affidavit and agreement are false.

              
	 	 	 
	 	
                6.

              	
                The
                  Owner consents to any additional restrictions or arrangements that
                  shall
                  be deemed necessary upon advice of counsel to constitute a reasonable
                  arrangement to ensure that the Class R Certificates will only be
                  owned,
                  directly or indirectly, by an Owner that is a Permitted
                  Transferee.

              
	 	 	 
	 	
                7.

              	
                The
                  Owner’s taxpayer identification number is
                  ________________.

              
	 	 	 
	 	
                8.

              	
                The
                  Owner has reviewed the restrictions set forth on the face of the
                  Class R
                  Certificates and the provisions of Section 6.02(d) of the Pooling
                  and
                  Servicing Agreement under which the Class R Certificates were issued
                  (in
                  particular, clauses (iii)(A) and (iii)(B) of Section 6.02(d) which
                  authorize the Securities Administrator to deliver payments to a
                  person
                  other than the Owner and negotiate a mandatory sale by the Securities
                  Administrator in the event that the Owner holds such Certificate
                  in
                  violation of Section 6.02(d)); and that the Owner expressly agrees
                  to be
                  bound by and to comply with such restrictions and
                  provisions.

              
	 	 	 
	 	
                9.

              	
                The
                  Owner is not acquiring and will not transfer the Class R Certificates
                  in
                  order to impede the assessment or collection of any
                  tax.

              
	 	 	 
	 	
                10.

              	
                The
                  Owner anticipates that it will, so long as it holds the Class R
                  Certificates, have sufficient assets to pay any taxes owed by the
                  holder
                  of such Class R Certificates, and hereby represents to and for
                  the benefit
                  of the person from whom it acquired the Class R Certificates that
                  the
                  Owner intends to pay taxes associated with holding such Class R
                  Certificates as they become due, fully understanding that it may
                  incur tax
                  liabilities in excess of any cash flows generated by the Class
                  R
                  Certificates.

              
	 	 	 
	 	
                11.

              	
                The
                  Owner has no present knowledge that it may become insolvent or
                  subject to
                  a bankruptcy proceeding for so long as it holds the Class R
                  Certificates.

              
	 	 	 
	 	
                12.

              	
                The
                  Owner has no present knowledge or expectation that it will be unable
                  to
                  pay any United States taxes owed by it so long as any of the Certificates
                  remain outstanding.

              
	 	 	 
	 	
                13.

              	
                The
                  Owner is not acquiring the Class R Certificates with the intent
                  to
                  transfer the Class R Certificates to any person or entity that
                  will not
                  have sufficient assets to pay any taxes owed by the holder of such
                  Class R
                  Certificates, or that may become insolvent or subject to a bankruptcy
                  proceeding, for so long as the Class R Certificates remain
                  outstanding.

              
	 	 	 
	 	
                14.

              	
                The
                  Owner will, in connection with any transfer that it makes of the
                  Class R
                  Certificates, obtain from its transferee the representations required
                  by
                  Section 6.02(d) of the Pooling and Servicing Agreement under which
                  the
                  Class R Certificate were issued and will not consummate any such
                  transfer
                  if it knows, or knows facts that should lead it to believe, that
                  any such
                  representations are false.

              
	 	 	 
	 	
                15.

              	
                The
                  Owner will, in connection with any transfer that it makes of the
                  Class R
                  Certificates, deliver to the Securities Administrator an affidavit,
                  which
                  represents and warrants that it is not transferring the Class R
                  Certificates to impede the assessment or collection of any tax
                  and that it
                  has no actual knowledge that the proposed transferee: (i) has insufficient
                  assets to pay any taxes owed by such transferee as holder of the
                  Class R
                  Certificates; (ii) may become insolvent or subject to a bankruptcy
                  proceeding for so long as the Class R Certificates remains outstanding;
                  and (iii) is not a “Permitted Transferee”.

              
	 	 	 
	 	
                16.

              	
                The
                  Owner is a citizen or resident of the United States, a corporation,
                  partnership or other entity created or organized in, or under the
                  laws of,
                  the United States or any political subdivision thereof, or an estate
                  or
                  trust whose income from sources without the United States may be
                  included
                  in gross income for United States federal income tax purposes regardless
                  of its connection with the conduct of a trade or business within
                  the
                  United States.

              
	 	 	 
	 	
                17.

              	
                The
                  Owner of the Class R Certificate, hereby agrees that in the event
                  that the
                  Trust Fund created by the Pooling and Servicing Agreement is terminated
                  pursuant to Section 10.01 thereof, the undersigned shall assign
                  and
                  transfer to the Holders of the Class CE-1 Certificates any amounts
                  in
                  excess of par received in connection with such termination. Accordingly,
                  in the event of such termination, the Securities Administrator
                  is hereby
                  authorized to withhold any such amounts in excess of par and to
                  pay such
                  amounts directly to the Holders of the Class CE-1 Certificates.
                  This
                  agreement shall bind and be enforceable against any successor,
                  transferee
                  or assigned of the undersigned in the Class R Certificate. In connection
                  with any transfer of the Class R Certificate, the Owner shall obtain
                  an
                  agreement substantially similar to this clause from any subsequent
                  owner.

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
        behalf, pursuant to the authority of its Board of Directors, by its [Vice]
        President, attested by its [Assistant] Secretary, this ____ day of
        _________________, ____.

       

      
        	 	 	 	 	 	 	 	
                [OWNER]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:
                  [Vice] President

              

      

      

       

      ATTEST:

       

      

       

      
        	
                By:

              	
                ________________________________

              
	
                Name:

              	 
	
                Title:

              	
                [Assistant]
                  Secretary

              

      

      

       

      Personally
        appeared before me the above-named __________________, known or proved to
        me to
        be the same person who executed the foregoing instrument and to be a [Vice]
        President of the Owner, and acknowledged to me that [he/she] executed the
        same
        as [his/her] free act and deed and the free act and deed of the
        Owner.

       

      Subscribed
        and sworn before me this ______________ day of __________, ____.

       

      

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEROR AFFIDAVIT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      _________________________,
        being duly sworn, deposes, represents and warrants as follows:

       

      1. I
        am
        a ____________________
        of _________________________ (the “Owner”), a corporation duly organized and
        existing under the laws of _____________, on behalf of whom I make this
        affidavit.

       

      2. The
        Owner
        is not transferring the Class R Certificates (the “Residual Certificates”) to
        impede the assessment or collection of any tax.

       

      3. The
        Owner
        has no actual knowledge that the Person that is the proposed transferee (the
        “Purchaser”) of the Residual Certificates: (i) has insufficient assets to pay
        any taxes owed by such proposed transferee as holder of the Residual
        Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
        for so long as the Residual Certificates remain outstanding and (iii) is
        not a
        Permitted Transferee.

       

      4. The
        Owner
        understands that the Purchaser has delivered to the Trustee or a transfer
        affidavit and agreement in the form attached to the Pooling and Servicing
        Agreement as Exhibit B-2. The Owner does not know or believe that any
        representation contained therein is false.

       

      5. At
        the
        time of transfer, the Owner has conducted a reasonable investigation of the
        financial condition of the Purchaser as contemplated by Treasury Regulations
        Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner
        has
        determined that the Purchaser has historically paid its debts as they became
        due
        and has found no significant evidence to indicate that the Purchaser will
        not
        continue to pay its debts as they become due in the future. The Owner
        understands that the transfer of a Residual Certificate may not be respected
        for
        United States income tax purposes (and the Owner may continue to be liable
        for
        United States income taxes associated therewith) unless the Owner has conducted
        such an investigation.

       

      6. Capitalized
        terms not otherwise defined herein shall have the meanings ascribed to them
        in
        the Pooling and Servicing Agreement.

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
        behalf, pursuant to the authority of its Board of Directors, by its [Vice]
        President, attested by its [Assistant] Secretary, this ____ day of
        ________________, ____.

       

      
        	 	 	 	 	 	 	 	
                [OWNER]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ___________________________________

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:
                  [Vice] President

              

      

      

       

      ATTEST:

      

      

      
        	
                By:

              	 _________________________________
	
                Name:

              	 
	
                Title:

              	
                [Assistant]
                  Secretary

              

      

      

      Personally
        appeared before me the above-named _________________, known or proved to
        me to
        be the same person who executed the foregoing instrument and to be a [Vice]
        President of the Owner, and acknowledged to me that [he/she] executed the
        same
        as [his/her] free act and deed and the free act and deed of the
        Owner.

       

      Subscribed
        and sworn before me this ______ day of _____________, ____.

       

      

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

       

      BACK-UP
        CERTIFICATION

       

      Re: __________
        (the “Trust”)

       

      Mortgage
        Pass-Through Certificates, Series 2006-SD1

       

      I,
        [identify the certifying individual], certify to ACE Securities Corp. (the
        “Depositor”), HSBC Bank USA, National Association (the “Trustee”) and Wells
        Fargo Bank, National Association (the “Master Servicer”), and their respective
        officers, directors and affiliates, and with the knowledge and intent that
        they
        will rely upon this certification, that:

       

       

      (1) I
        have
        reviewed the servicer compliance statement of the Company provided in accordance
        with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
        assessment of the Company’s compliance with the servicing criteria set forth in
        Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
        with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
        (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
        Assessment”), the registered public accounting firm’s attestation report
        provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
        and
        Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by the Company
        during 200[ ] that were delivered by the Company to the Master Servicer pursuant
        to the Agreement (collectively, the “Company Servicing
        Information”);

       

      (2) Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the Master
        Servicer;

       

      (4) I
        am
        responsible for reviewing the activities performed by the Company as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Company has fulfilled its obligations under the Agreement in all material
        respects; and

       

      (5) The
        Compliance Statement required to be delivered by the Company pursuant to
        the
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Company and by any Subservicer or Subcontractor pursuant
        to the
        Agreement, have been provided to the Master Servicer. Any material instances
        of
        noncompliance described in such reports have been disclosed to the Master
        Servicer. Any material instance of noncompliance with the Servicing Criteria
        has
        been disclosed in such reports.

       

      

      Capitalized
        terms used and not otherwise defined herein have the meanings assigned thereto
        in the Pooling and Servicing Agreement, dated as of February 28, 2006, among
        ACE
        Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer,
        Securities Administrator and as Servicer, Ocwen Loan Servicing, LLC as a
        Servicer and HSBC Bank USA, National Association as Trustee.

       

      
        	
                Date:
                  ________________________________

              
	 
	
                _____________________________________

              
	
                [Signature]

              
	
                _____________________________________

              
	
                [Title]

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D

      

      FORM
        OF
        POWER OF ATTORNEY

      

      RECORDING
        REQUESTED BY

      AND
        WHEN
        RECORDED MAIL TO

      [Servicer]

      [Servicer’s
        Address]

      Attn:
        _________________________________

      

      

      LIMITED
        POWER OF ATTORNEY

      

      

      KNOW
        ALL
        MEN BY THESE PRESENTS, that __________________,
        having
        its principal place of business at _______________________,
        as
        Trustee (the “Trustee”) pursuant to that Pooling and Servicing Agreement among
        ACE Securities Corp. (the “Depositor”), Ocwen Loan Servicing, LLC as a servicer
        (“Ocwen”), Wells Fargo Bank, N.A. as a servicer (“Wells Fargo”), Wells Fargo
        Bank, N.A. as master servicer (the “Master Servicer”) and as securities
        administrator (the “Securities Administrator”) and the Trustee, dated as of
        February 28, 2006 (the “Pooling and Servicing Agreement”), hereby constitutes
        and appoints [Ocwen][Wells Fargo], by and through [Ocwen][Wells Fargo]’s
        officers, the Trustee’s true and lawful Attorney-in-Fact, in the Trustee’s name,
        place and stead and for the Trustee’s benefit, in connection with all mortgage
        loans serviced by [Ocwen][Wells Fargo] pursuant to the Pooling and Servicing
        Agreement for the purpose of performing all acts and executing all documents
        in
        the name of the Trustee as may be customarily and reasonably necessary and
        appropriate to effectuate the following enumerated transactions in respect
        of
        any of the mortgages or deeds of trust (the “Mortgages” and the “Deeds of
        Trust”, respectively) and promissory notes secured thereby (the “Mortgage
        Notes”) for which the undersigned is acting as Trustee for various
        certificateholders (whether the undersigned is named therein as mortgagee
        or
        beneficiary or has become mortgagee by virtue of endorsement of the Mortgage
        Note secured by any such Mortgage or Deed of Trust) and for which [Ocwen][Wells
        Fargo] is acting as servicer, all subject to the terms of the Pooling and
        Servicing Agreement.

      

      This
        appointment shall apply to the following enumerated transactions
        only:

      

      
        	 	
                1.

              	
                The
                  modification or re-recording of a Mortgage or Deed of Trust, where
                  said
                  modification or re-recordings is for the purpose of correcting
                  the
                  Mortgage or Deed of Trust to conform same to the original intent
                  of the
                  parties thereto or to correct title errors discovered after such
                  title
                  insurance was issued and said modification or re-recording, in
                  either
                  instance, does not adversely affect the lien of the Mortgage or
                  Deed of
                  Trust as insured.

              
	 	 	 
	 	
                2.

              	
                The
                  subordination of the lien of a Mortgage or Deed of Trust to an
                  easement in
                  favor of a public utility company of a government agency or unit
                  with
                  powers of eminent domain; this section shall include, without limitation,
                  the execution of partial satisfactions/releases, partial reconveyances
                  or
                  the execution or requests to trustees to accomplish
                  same.

              
	 	 	 
	 	
                3.

              	
                The
                  conveyance of the properties to the mortgage insurer, or the closing
                  of
                  the title to the property to be acquired as real estate owned,
                  or
                  conveyance of title to real estate owned.

              
	 	 	 
	 	
                4.

              	
                The
                  completion of loan assumption agreements.

              
	 	 	 
	 	
                5.

              	
                The
                  full satisfaction/release of a Mortgage or Deed of Trust or full
                  conveyance upon payment and discharge of all sums secured thereby,
                  including, without limitation, cancellation of the related Mortgage
                  Note.

              
	 	 	 
	 	
                6.

              	
                The
                  assignment of any Mortgage or Deed of Trust and the related Mortgage
                  Note,
                  in connection with the repurchase of the mortgage loan secured
                  and
                  evidenced thereby.

              
	 	 	 
	 	
                7.

              	
                The
                  full assignment of a Mortgage or Deed of Trust upon payment and
                  discharge
                  of all sums secured thereby in conjunction with the refinancing
                  thereof,
                  including, without limitation, the assignment of the related Mortgage
                  Note.

              
	 	 	 
	 	
                8.

              	
                With
                  respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                  of a
                  deed in lieu of foreclosure, or the completion of judicial or non-judicial
                  foreclosure or termination, cancellation or rescission of any such
                  foreclosure, including, without limitation, any and all of the
                  following
                  acts:

              
	 	 	 

      

      

      
        	 	
                a.

              	
                the
                  substitution of trustee(s) serving under a Deed of Trust, in accordance
                  with state law and the Deed of Trust;

              
	 	 	 
	 	
                b.

              	
                the
                  preparation and issuance of statements of breach or
                  non-performance;

              
	 	 	 
	 	
                c.

              	
                the
                  preparation and filing of notices of default and/or notices of
                  sale;

              
	 	 	 
	 	
                d.

              	
                the
                  cancellation/rescission of notices of default and/or notices of
                  sale;

              
	 	 	 
	 	
                e.

              	
                the
                  taking of a deed in lieu of foreclosure; and

              
	 	 	 
	 	
                f.

              	
                the
                  preparation and execution of such other documents and performance
                  of such
                  other actions as may be necessary under the terms of the Mortgage,
                  Deed of
                  Trust or state law to expeditiously complete said transactions
                  in
                  paragraphs 8.a. through 8.e., above.

              
	 	 	 

      

      

      The
        undersigned gives said Attorney-in-Fact full power and authority to execute
        such
        instruments and to do and perform all and every act and thing necessary and
        proper to carry into effect the power or powers granted by or under this
        Limited
        Power of Attorney as fully as the undersigned might or could do, and hereby
        does
        ratify and confirm to all that said Attorney-in-Fact shall lawfully do or
        cause
        to be done by authority hereof. 

       

      Third
        parties without actual notice may rely upon the exercise of the power granted
        under this Limited Power of attorney; and may be satisfied that this Limited
        Power of Attorney shall continue in full force and effect and has not been
        revoked unless an instrument of revocation has been made in writing by the
        undersigned.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, _________________
        as
        Trustee pursuant to that Pooling and Servicing Agreement among the Depositor,
        Ocwen, Wells Fargo, the Master Servicer, the Securities Administrator and
        the
        Trustee, dated as of February 28, 2006 (ACE Securities Corp. Home Equity
        Loan
        Trust, Series 2006-SD1 Asset Backed Pass-Through Certificates), has caused
        its
        corporate seal to be hereto affixed and these presents to be signed and
        acknowledged in its name and behalf by ____________
        its duly
        elected and authorized Vice President this ___
        day of
___________,
        200__.

      

      

      
        	 	 	 	 	 	 	 	
                as
                  Trustee for ACE Securities Corp. Home Equity Loan Trust, Series
                  2006-SD1
                  Asset Backed Pass-Through Certificates

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:
                  ________________________________

              
	 	 	 	 	 	 	 	 	 

      

      

      

      
        	
                STATE
                  OF ___________________________

              	 
	 	 
	
                COUNTY
                  OF _____________________________

              	 

      

      

      

      On
        _______________,
        200__,
        before me, the undersigned, a Notary Public in and for said state, personally
        appeared _____________,
        Vice
        President of __________________
        as
        Trustee for _____ACE Securities Corp. Home Equity Loan Trust, Series 2006-SD1
        Asset Backed Pass-Through Certificates, personally known to me to be the
        person
        whose name is subscribed to the within instrument and acknowledged to me
        that
        he/she executed that same in his/her authorized capacity, and that by his/her
        signature on the instrument the entity upon behalf of which the person acted
        and
        executed the instrument.

      

      WITNESS
        my hand and official seal.

      (SEAL)

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                My
                  Commission Expires
                  _________________

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

      

      SERVICING
        CRITERIA

      

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      Schedule
        1122 (Pooling and Servicing Agreement)

       

      Assessments
        of Compliance and Attestation Reports Servicing Criteria2 

      

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              
	
                (1) General
                  Servicing Considerations

              	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (i) monitoring
                  performance or other triggers and events of default

              	 	 	
                X

              	 	 	 	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (ii) monitoring
                  performance of vendors of activities outsourced

              	 	 	
                X

              	 	 	 	
                X

              	 
	 	 	 	 	 	 	 	 	 
	
                (iii) maintenance
                  of back-up servicer for pool assets

              	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (iv) fidelity
                  bond and E&O policies in effect

              	 	 	
                X

              	 	 	 	
                X

              	 
	 	 	 	 	 	 	 	 	 
	
                (2) Cash
                  Collection and Administration

              	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (i) timing
                  of deposits to custodial account

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (ii) wire
                  transfers to investors by authorized personnel

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (iii) advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                X

              	 	 	 	
                X

              	 
	 	 	 	 	 	 	 	 	 
	
                (iv) accounts
                  maintained as required

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (v) accounts
                  at federally insured depository institutions

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (vi) unissued
                  checks safeguarded

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (3) Investor
                  Remittances and Reporting

              	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (i) investor
                  reports

              	 	 	
                X

              	 	 	 	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (ii) remittances

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (iii) proper
                  posting of distributions

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (iv) reconciliation
                  of remittances and payment statements

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	 	 	 	 	 	 	 	 	 
	
                (4) Pool
                  Asset Administration

              	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (i) maintenance
                  of pool collateral

              	 	 	
                X

              	 	
                X

              	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (ii) safeguarding
                  of pool assets/documents

              	 	 	
                X

              	 	
                X

              	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (iii) additions,
                  removals and substitutions of pool assets

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (iv) posting
                  and allocation of pool asset payments to pool assets

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (v) reconciliation
                  of servicer records

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (vi) modifications
                  or other changes to terms of pool assets

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (vii) loss
                  mitigation and recovery actions

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (viii)records
                  regarding collection efforts

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (ix) adjustments
                  to variable interest rates on pool assets

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (x) matters
                  relating to funds held in trust for obligors

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (xi) payments
                  made on behalf of obligors (such as for taxes or
                  insurance)

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (xii) late
                  payment penalties with respect to payments made on behalf of obligors
                  

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (xiii)records
                  with respect to payments made on behalf of obligors

              	 	 	
                X

              	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
                (xiv) recognition
                  and recording of delinquencies, charge-offs and uncollectible
                  accounts

              	 	 	
                X

              	 	 	 	
                X

              	 
	 	 	 	 	 	 	 	 	 
	
                (xv) maintenance
                  of external credit enhancement or other support

              	 	 	 	 	 	 	 	 

      

      

      

        

        
          *
            The
            descriptions of the Item 1122(d) servicing criteria use key words and
            phrases
            and are not verbatim recitations of the servicing criteria. Refer to
            Regulation
            AB, Item 1122 for a full description of servicing
            criteria.

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F

      
      

      
        MORTGAGE
          LOAN PURCHASE AGREEMENT

         

        This
          is a
          Mortgage Loan Purchase Agreement (this “Agreement”), dated March 27, 2006,
          between DB Structured Products, Inc. (the “Seller”) and ACE Securities Corp., a
          Delaware corporation (the “Purchaser”).

         

        Preliminary
          Statement

         

        The
          Seller intends to sell the Mortgage Loans (as hereinafter identified) to
          the
          Purchaser on the terms and subject to the conditions set forth in this
          Agreement. The Purchaser intends to deposit the Mortgage Loans into a mortgage
          pool comprising the Trust Fund. The Trust Fund will be evidenced by a single
          series of mortgage pass-through certificates designated as ACE Securities
          Corp.
          Home Equity Loan Trust, Series 2006-SD1, Asset Backed Pass-Through Certificates
          (the “Certificates”). The Certificates will consist of eleven classes of
          certificates. The Certificates will be issued pursuant to a Pooling and
          Servicing Agreement for ACE Securities Corp. Home Equity Loan Trust, Series
          2006-SD1, Asset Backed Pass-Through Certificates, dated as of February
          28, 2006
          (the “Pooling and Servicing Agreement”), among the Purchaser as depositor, Wells
          Fargo Bank, National Association as master servicer (the “Master Servicer”) and
          securities administrator (the “Securities Administrator”), Ocwen Loan Servicing,
          LLC as a servicer (“Ocwen”), Wells Fargo Bank, N.A. as a servicer (“Wells
          Fargo”) and HSBC Bank USA, National Association, as trustee (the “Trustee”).
          Certain of the Mortgage Loans will be serviced by Select Portfolio Servicing,
          Inc. (“SPS”, and together with Ocwen and Wells Fargo, each a “Servicer” and
          collectively the “Servicers”) pursuant to a separate servicing agreement between
          the Seller and SPS (the “SPS Servicing Agreement”) which will be assigned to the
          Purchaser as of the date hereof. The Purchaser will sell the Class A1-A,
          Class
          A1-B, Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Certificates
          (collectively, the “Offered Certificates”) to Deutsche Bank Securities Inc.
          (“DBSI”), pursuant to the Second Amended and Restated Underwriting Agreement,
          dated June 24, 1999, as amended and restated to and including January 25,
          2006
          between the Purchaser and DBSI, and the Terms Agreement, dated March 27,
          2006
          (collectively, the “Underwriting Agreement”), between the Purchaser and DBSI.
          Capitalized terms used but not defined herein shall have the meanings set
          forth
          in the Pooling and Servicing Agreement. 

         

        The
          parties hereto agree as follows:

         

        SECTION
          1.  Agreement
          to Purchase.
          The
          Seller hereby sells, and the Purchaser hereby purchases, on or before March
          27,
          2006 (the “Closing Date”), certain fixed-rate and adjustable rate residential
          first and second lien mortgage loans on mortgaged properties consisting
          of
          attached, detached or semi-detached, one to four-family dwelling units,
          individual condominium units, manufactured homes, individual units in planned
          unit developments and vacant land (the “Mortgage Loans”), having an aggregate
          principal balance as of the close of business on February 28, 2006 (the
“Cut-off
          Date”) of approximately $170,112,021 (the “Closing Balance”), including the
          right to any Prepayment Charges payable by the related Mortgagors in connection
          with any Principal Prepayments on the Mortgage Loans.

         

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

         

        SECTION
          3.  Consideration.

         

        (a)  In
          consideration for the Mortgage Loans to be purchased hereunder, the Purchaser
          shall, as described in Section 8, pay to or upon the order of the Seller
          in
          immediately available funds an amount (the “Purchase Price”) equal to (i)
          $[__________]1
          and (ii)
          a 100% interest in the Class CE-1, Class CE-2, Class P and Class R Certificates
          (collectively the “DB Certificates”). The DB Certificates shall be in the name
          of “Deutsche Bank Securities Inc.”

         

        (b)  The
          Purchaser or any assignee, transferee or designee of the Purchaser shall
          be
          entitled to (i) with respect to all of the Mortgage Loans other than the
          Mortgage Loans set forth on Schedule
          B
          attached
          hereto, all payments of principal collected after the Cut-off Date and
          all
          payments of interest on the Mortgage Loans collected after the Cut-off
          Date and
          (ii) with respect to the Mortgage Loans set forth on Schedule
          B
          attached
          hereto, all scheduled principal due after the related Cut-off Date, all
          other
          recoveries of principal collected after the Cut-off Date (provided, however,
          that all scheduled payments of principal due on or before the Cut-off Date
          and
          collected by the Seller after the Cut-off Date shall belong to the Seller),
          and
          all payments of interest on the Mortgage Loans (minus that portion of any
          such
          interest payment that is allocable to the period prior to the Cut-off
          Date).

         

        (c)  Pursuant
          to the Pooling and Servicing Agreement, the Purchaser will assign all of
          its
          right, title and interest in and to the Mortgage Loans, together with its
          rights
          under this Agreement, to the Trustee for the benefit of the
          Certificateholders.

         

        SECTION
          4.  Transfer
          of the Mortgage Loans.

         

        (a)  Possession
          of Mortgage Files.  The
          Seller does hereby sell to the Purchaser, without recourse but subject
          to the
          terms of this Agreement, all of its right, title and interest in, to and
          under
          the Mortgage Loans, including the Prepayment Charges on the Mortgage
          Loans.  The contents of each Mortgage File not delivered to the
          Purchaser or to any assignee, transferee or designee of the Purchaser on
          or
          prior to the Closing Date and not listed as a defect on Schedule
          A
          attached
          hereto are and shall be held in trust by the Seller for the benefit of
          the
          Purchaser or any assignee, transferee or designee of the
          Purchaser.  Upon the sale of the Mortgage Loans, the ownership of each
          Mortgage Note, the related Mortgage and the other contents of the related
          Mortgage File is vested in the Purchaser and the ownership of all records
          and
          documents with respect to the related Mortgage Loan prepared by or that
          come
          into the possession of the Seller on or after the Closing Date shall immediately
          vest in the Purchaser and shall be delivered immediately to the Purchaser
          or as
          otherwise directed by the Purchaser.

        

          

          
            1 Please
              contact the Mortgage Loan Seller for this information.

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

        (b)  Delivery
          of Mortgage Loan Documents.  Except
          as set forth on Schedule
          A
          attached
          hereto, the Seller will, on or prior to the Closing Date, deliver or cause
          to be
          delivered to the Purchaser or any assignee, transferee or designee of the
          Purchaser each of the following documents for each Mortgage Loan:

         

        (A)  the
          original Mortgage Note (including all riders thereto) bearing all intervening
          endorsements necessary to show a complete chain of endorsements from the
          original payee, endorsed in blank, via
          original signature,
          and, if
          previously endorsed, signed in the name of the last endorsee by a duly
          qualified
          officer of the last endorsee. If
          the
          Mortgage Loan was acquired by the last endorsee in a merger, the endorsement
          must be by “[name of last endorsee], successor by merger to [name of
          predecessor]”. If the Mortgage Loan was acquired or originated by the last
          endorsee while doing business under another name, the endorsement must
          be by
“[name of last endorsee], formerly known as [previous name]”;

         

        (B)  Reserved;

         

        (C)  the
          original Assignment of Mortgage executed in blank;

         

        (D)  the
          original of any guarantee executed in connection with the Mortgage Note,
          if
          any;

         

        (E)  the
          original Mortgage (including all riders thereto) with evidence of recording
          thereon and the original recorded power of attorney, if the Mortgage was
          executed pursuant to a power of attorney, with evidence of recording thereon,
          and in the case of each MOM Loan, the original Mortgage, noting the presence
          of
          the MIN of the Mortgage Loan and either language indicating that the Mortgage
          Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan at origination,
          the original Mortgage and the assignment thereof to MERS®, with evidence of
          recording indicated thereon; or, if the original Mortgage with evidence
          of
          recording thereon has not been returned by the public recording office
          where
          such Mortgage has been delivered for recordation or such Mortgage has been
          lost
          or such public recording office retains the original recorded Mortgage,
          a
          photocopy of such Mortgage, together with (i) in the case of a delay caused
          by
          the public recording office, an officer’s certificate of the title insurer
          insuring the Mortgage, the escrow agent, the seller or the related Servicer
          stating that such Mortgage has been delivered to the appropriate public
          recording office for recordation and that the original recorded Mortgage
          or a
          copy of such Mortgage certified by such public recording office to be a
          true and
          complete copy of the original recorded Mortgage will be promptly delivered
          to
          the Purchaser’s designee upon receipt thereof by the party delivering the
          officer’s certificate or by the related Servicer; or (ii) in the case of a
          Mortgage where a public recording office retains the original recorded
          Mortgage
          or in the case where a Mortgage is lost after recordation in a public recording
          office, a copy of such Mortgage with the recording information thereon
          certified
          by such public recording office to be a true and complete copy of the original
          recorded Mortgage;

         

        (F)  the
          originals of all assumption, modification, consolidation or extension
          agreements, with evidence of recording thereon, if any;

         

        (G)  the
          originals of any intervening assignments of mortgage with evidence of recording
          thereon evidencing a complete chain of ownership from the originator of
          the
          Mortgage Loan to the last assignee, or if any such intervening assignment
          of
          mortgage has not been returned from the applicable public recording office
          or
          has been lost or if such public recording office retains the original recorded
          intervening assignments of mortgage, a photocopy of such intervening assignment
          of mortgage, together with (i) in the case of a delay caused by the public
          recording office, an officer’s certificate of the title insurer insuring the
          Mortgage, the escrow agent, the seller or the related Servicer stating
          that such
          intervening assignment of mortgage has been delivered to the appropriate
          public
          recording office for recordation and that such original recorded intervening
          assignment of mortgage or a copy of such intervening assignment of mortgage
          certified by the appropriate public recording office to be a true and complete
          copy of the original recorded intervening assignment of mortgage will be
          promptly delivered to the Purchaser’s designee upon receipt thereof by the party
          delivering the officer’s certificate or by the related Servicer; or (ii) in the
          case of an intervening assignment of mortgage where a public recording
          office
          retains the original recorded intervening assignment of mortgage or in
          the case
          where an intervening assignment of mortgage is lost after recordation in
          a
          public recording office, a copy of such intervening assignment of mortgage
          with
          recording information thereon certified by such public recording office
          to be a
          true and complete copy of the original recorded intervening assignment
          of
          mortgage;

         

        (H)  if
          the
          Mortgage Note, the Mortgage, any Assignment of Mortgage, or any other related
          document has been signed by a Person on behalf of the Mortgagor, the original
          power of attorney or other instrument that authorized and empowered such
          Person
          to sign;

         

        (I)  the
          original lender’s title insurance policy in the form of an ALTA mortgage title
          insurance policy
          or,
          if the
          original lender’s title insurance policy has not been issued, the irrevocable
          commitment to issue the same; provided, that the Seller shall deliver such
          original title insurance policy to the Purchaser or any assignee, transferee
          or
          designee of the Purchaser promptly upon receipt by the Seller, if any;
          and

         

        (J)  the
          original of any security agreement, chattel mortgage or equivalent document
          executed in connection with the Mortgage, if any.

         

        Notwithstanding
          anything to the contrary contained in this Section 4, with respect to certain
          of
          the Mortgage Loans, if any original Mortgage Note referred to in Sections
          4(b)
          above cannot be located, the obligations of the Seller to deliver such
          documents
          shall be deemed to be satisfied upon delivery to the Purchaser or any assignee,
          transferee or designee of the Purchaser of a photocopy of such Mortgage
          Note, if
          available, with a lost note affidavit substantially in the form of Exhibit
          1
          attached
          hereto. If any of the original Mortgage Notes for which a lost note affidavit
          was delivered to the Purchaser or any assignee, transferee or designee
          of the
          Purchaser is subsequently located, such original Mortgage Note shall be
          delivered to the Purchaser or any assignee, transferee or designee of the
          Purchaser within three Business Days.

         

        Each
          original document relating to a Mortgage Loan which is not delivered to
          the
          Purchaser or its assignee, transferee or designee, if held by the Seller,
          shall
          be so held for the benefit of the Purchaser, its assignee, transferee or
          designee.

         

        In
          connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Seller further agrees that it will cause, at the Seller’s own
          expense, within 30 days after the Closing Date, the MERS® System to indicate
          that such Mortgage Loans have been assigned by the Seller to the Depositor
          and
          by the Depositor to the Trustee in accordance with this Agreement for the
          benefit of the Certificateholders by including (or deleting, in the case
          of
          Mortgage Loans which are repurchased in accordance with this Agreement)
          in such
          computer files (a) the code in the field which identifies the specific
          Trustee
          and (b) the code in the field “Pool Field” which identifies the series of the
          Certificates issued in connection with such Mortgage Loans. The Seller
          further
          agrees that it will not, and will not permit any Servicer or the Master
          Servicer
          to, and the Master Servicer agrees that it will not, alter the codes referenced
          in this paragraph with respect to any Mortgage Loan during the term of
          this
          Agreement unless and until such Mortgage Loan is repurchased in accordance
          with
          the terms of this Agreement or the Pooling and Servicing Agreement.

         

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

         

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

         

        (e)  Examination
          of Mortgage Files.
          Prior
          to the Closing Date, the Seller shall either (i) deliver in escrow to the
          Purchaser or to any assignee, transferee or designee of the Purchaser for
          examination the Mortgage File pertaining to each Mortgage Loan, or (ii)
          make
          such Mortgage Files available to the Purchaser or to any assignee, transferee
          or
          designee of the Purchaser for examination.  Such examination may be
          made by the Purchaser or the Trustee, and their respective designees, upon
          reasonable notice to the Seller during normal business hours before the
          Closing
          Date and within 60 days after the Closing Date.  If any such person
          makes such examination prior to the Closing Date and identifies any Mortgage
          Loans that do not conform to the requirements of the Purchaser as described
          in
          this Agreement, including the exceptions set forth in Schedule
          A
          attached
          hereto, such Mortgage Loans shall be deleted from the Closing
          Schedule.  The Purchaser may, at its option and without notice to the
          Seller, purchase all or part of the Mortgage Loans without conducting any
          partial or complete examination.  The fact that the Purchaser or any
          person has conducted or has failed to conduct any partial or complete
          examination of the Mortgage Files shall not affect the rights of the Purchaser
          or any assignee, transferee or designee of the Purchaser to demand repurchase
          or
          other relief as provided herein.

         

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

         

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

         

        (i)  The
          Seller is duly organized, validly existing and in good standing under the
          laws
          of the state of New York and is and will remain in compliance with the
          laws of
          each state in which any Mortgaged Property is located to the extent necessary
          to
          ensure the enforceability of each Mortgage Loan and the servicing of the
          Mortgage Loan in accordance with the terms of this Agreement. Seller has
          the
          requisite licenses to perform pursuant to this Agreement, no such licenses
          or
          approvals obtained by the Seller have been suspended or revoked by any
          court,
          administrative agency, arbitrator or governmental body and no proceedings
          are
          pending which might result in such suspension or revocation, except where
          the
          failure to be so licensed would not result in a material adverse effect
          on the
          Seller, the enforceability of each Mortgage Loan and the servicing of the
          Mortgage Loans in accordance with the terms of this Agreement; 

         

        (ii)  The
          Seller has the full power and authority to hold each Mortgage Loan, to
          sell each
          Mortgage Loan, and to execute, deliver and perform, and to enter into and
          consummate, all transactions contemplated by this Agreement. The Seller
          has duly
          authorized the execution, delivery and performance of this Agreement, has
          duly
          executed and delivered this Agreement, and this Agreement, assuming due
          authorization, execution and delivery by the Purchaser, constitutes a legal,
          valid and binding obligation of the Seller, enforceable against it in accordance
          with its terms except as the enforceability thereof may be limited by (i)
          bankruptcy, insolvency, liquidation, receivership, moratorium, reorganization
          or
          other similar laws affecting the enforcement of creditors’ rights, or (ii)
          general principles of equity;

         

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

         

        (iv)  The
          Seller is not in violation of, and the execution and delivery of this Agreement
          by the Seller and its performance and compliance with the terms of this
          Agreement will not constitute a violation with respect to, any order or
          decree
          of any court or any order or regulation of any federal, state, municipal
          or
          governmental agency having jurisdiction over the Seller or its assets,
          which
          violation might have consequences that would materially and adversely affect
          the
          condition (financial or otherwise) or the operation of the Seller or its
          assets
          or might have consequences that would materially and adversely affect the
          performance of its obligations and duties hereunder;

         

        (v)  The
          Seller is an approved seller/servicer for FNMA and FHLMC in good standing
          and is
          a HUD approved mortgagee pursuant to Section 203 of the National Housing
          Act. No
          event has occurred, including but not limited to a change in insurance
          coverage,
          which would make the Seller unable to comply with FNMA, FHLMC or HUD eligibility
          requirements or which would require notification to FNMA, FHLMC or
          HUD;

         

        (vi)  The
          Seller does not believe, nor does it have any reason or cause to believe,
          that
          it cannot perform each and every covenant contained in this
          Agreement;

         

        (vii)  The
          Mortgage Loan Documents and any other documents required to be delivered
          with
          respect to each Mortgage Loan pursuant to this Agreement have been delivered
          to
          the Custodians, all in compliance with the specific requirements of this
          Agreement;

         

        (viii)  Immediately
          prior to the payment of the Purchase Price for each Mortgage Loan, the
          Seller
          was the owner of record of the related Mortgage and the indebtedness evidenced
          by the related Mortgage Note and upon the payment of the Purchase Price
          by the
          Purchaser, in the event that the Seller retains record title, the Seller
          shall
          retain such record title to each Mortgage, each related Mortgage Note and
          the
          related Mortgage Files with respect thereto in trust for the Purchaser
          as the
          owner thereof and only for the purpose of servicing and supervising the
          servicing of each Mortgage Loan;

         

        (ix)  There
          are
          no actions or proceedings against, or, to the best knowledge of Seller,
          investigations of, the Seller before any court, administrative agency or
          other
          tribunal (A) that might prohibit its entering into this Agreement, (B)
          seeking
          to prevent the sale of the Mortgage Loans or the consummation of the
          transactions contemplated by this Agreement or (C) that might prohibit
          or
          materially and adversely affect the performance by the Seller of its obligations
          under, or the validity or enforceability of, this Agreement;

         

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

         

        (xi)  The
          consummation of the transactions contemplated by this Agreement are in
          the
          ordinary course of business of the Seller, and the transfer, assignment
          and
          conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant
          to
          this Agreement are not subject to the bulk transfer or any similar statutory
          provisions;

         

        (xii)  The
          information delivered by the Seller to the Purchaser with respect to the
          Seller’s loan loss, foreclosure and delinquency experience for the twelve (12)
          months immediately preceding the Initial Closing Date on mortgage loans
          underwritten to the same standards as the Mortgage Loans and covering mortgaged
          properties similar to the Mortgaged Properties, is true and correct in
          all
          material respects;

         

        (xiii)  Neither
          this Agreement nor any written statement, report or other document prepared
          and
          furnished or to be prepared and furnished by the Seller pursuant to this
          Agreement or in connection with the transactions contemplated hereby contains
          any untrue statement of material fact or omits to state a material fact
          necessary to make the statements contained herein or therein not
          misleading;

         

        (xiv)  The
          consideration received by the Seller upon the sale of the Mortgage Loans
          constitutes fair consideration and reasonably equivalent value for such
          Mortgage
          Loans;

         

        (xv)  The
          Seller is solvent and will not be rendered insolvent by the consummation
          of the
          transactions contemplated hereby. The Seller is not transferring any Mortgage
          Loan with any intent to hinder, delay or defraud any of its
          creditors;

         

        (xvi)  The
          Seller is a member of MERS in good standing, and will comply in all material
          respects with the rules and procedures of MERS in connection with the servicing
          of the MERS Mortgage Loans until the Servicing Transfer Date with respect
          to any
          Mortgage Loan Package; and

         

        (xvii)  The
          information set forth in the applicable part of the Mortgage Loan Schedule
          relating to the existence of a Prepayment Charge on the Mortgage Loans
          is
          complete, true and correct in all material respects at the date or dates
          respecting which such information is furnished and each Prepayment Charge
          on the
          Mortgage Loans is permissible and enforceable in accordance with its terms
          upon
          the Mortgagor’s full and voluntary principal prepayment under applicable law,
          except to the extent that (1) the enforceability thereof may be limited
          by
          bankruptcy, insolvency, moratorium, receivership and other similar laws
          relating
          to creditors’ rights generally, (2) the collectability thereof may be limited
          due to acceleration in connection with a foreclosure or other involuntary
          prepayment or (3) subsequent changes in applicable law may limit or prohibit
          enforceability thereof under applicable law, and was originated in compliance
          with all applicable federal, state and local laws.

         

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

         

        The
          Seller hereby represents and warrants to the Purchaser that as to each
          Mortgage
          Loan as of the Closing Date (unless otherwise specified):

         

        (i)  Information
          provided to the Rating Agencies, including the loan level detail set forth
          on
          the Mortgage Loan Schedule, is true and correct in all material respects
          as of
          the Cut-off Date according to the Rating Agency Requirements;

         

        (ii)  With
          respect to each Mortgage Loan other than the Mortgage Loans identified
          on
Schedule
          C
          attached
          hereto, no error, omission, misrepresentation, negligence, fraud or similar
          occurrence has taken place on the part of any person, including without
          limitation the Mortgagor, any appraiser, any builder or developer, or any
          other
          party involved in the origination of such Mortgage Loan or in the application
          of
          any insurance in relation to such Mortgage Loan. With respect to each Mortgage
          Loan identified on Schedule C attached hereto, no material misrepresentation,
          fraud or similar occurrence has taken place on the part of the originator
          and
          Seller;

         

        (iii)  Except
          with respect to Mortgage Loans that are delinquent, that have borrowers
          in
          bankruptcy and/or that are subject to forbearance plans (collectively,
          the
“Delinquent/Plan Mortgage Loans”), all payments required to be made prior to the
          Cut-off Date with respect to each Mortgage Loan have been made;

         

        (iv)  Neither
          the Seller nor the related originator of the Mortgage Loan has advanced
          any
          Monthly Payment required under the terms of the Mortgage Note;

         

        (v)  Except
          with respect to certain of the Delinquent/Plan Mortgage Loans, there are
          no
          delinquent taxes, assessment liens or insurance premiums affecting the
          related
          Mortgaged Property;

         

        (vi)  The
          terms
          of the Mortgage Note and the Mortgage have not been materially impaired,
          waived,
          altered or modified in any respect, except by written instruments, recorded
          in
          the applicable public recording office if necessary to maintain the lien
          priority of the Mortgage. The substance of any such waiver, alteration
          or
          modification has been approved by the title insurer, to the extent required
          by
          the related policy. No Mortgagor has been released, in whole or in part,
          except
          in connection with an assumption agreement (approved by the title insurer
          to the
          extent required by the policy) and which assumption agreement has been
          delivered
          to the Trustee;

         

        (vii)  The
          Mortgaged Property is insured against loss by fire and hazards of extended
          coverage (excluding earthquake insurance) in an amount which is at least
          equal
          to the lesser of (i) the amount necessary to compensate for any damage
          or loss
          to the improvements which are a part of such property on a replacement
          cost
          basis or (ii) the outstanding principal balance of the Mortgage Loan. If
          the
          Mortgaged Property is in an area identified on a flood hazard map or flood
          insurance rate map issued by the Federal Emergency Management Agency as
          having
          special flood hazards (and such flood insurance has been made available),
          a
          flood insurance policy meeting the requirements of the current guidelines
          of the
          Federal Insurance Administration is in effect. All such insurance policies
          contain a standard mortgagee clause naming the originator of the Mortgage
          Loan,
          its successors and assigns as mortgagee and the Seller has not engaged
          in any
          act or omission which would impair the coverage of any such insurance policies.
          Except as may be limited by applicable law, the Mortgage obligates the
          Mortgagor
          thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
          and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
          to maintain such insurance at Mortgagor’s cost and expense and to seek
          reimbursement therefor from the Mortgagor;

         

        (viii)  Any
          and
          all requirements of any federal, state or local law including, without
          limitation, usury, truth in lending, anti-predatory lending, real estate
          settlement procedures, consumer credit protection, equal credit opportunity,
          fair housing or disclosure laws applicable to the origination and servicing
          of
          the Mortgage Loans have been complied with in all material
          respects;

         

        (ix)  Except
          as
          otherwise set forth in the Mortgage File, the Mortgage has not been satisfied,
          cancelled, subordinated (other than with respect to second lien Mortgage
          Loans,
          the subordination to the first lien) or rescinded, in whole or in part,
          and the
          Mortgaged Property has not been released from the lien of the Mortgage,
          in whole
          or in part, nor has any instrument been executed that would effect any
          such
          satisfaction, cancellation, subordination, rescission or release;

         

        (x)  The
          Mortgage was recorded or was submitted for recording in accordance with
          all
          applicable laws and is a valid, existing and enforceable first or second
          lien on
          the Mortgaged Property including all improvements on the Mortgaged
          Property;

         

        (xi)  The
          Mortgage Note and the related Mortgage are genuine and each is the legal,
          valid
          and binding obligation of the maker thereof, insured under the related
          title
          policy, and enforceable in accordance with its terms, except to the extent
          that
          the enforceability thereof may be limited by a bankruptcy, insolvency or
          reorganization;

         

        (xii)  The
          Seller is the sole legal, beneficial and equitable owner of the Mortgage
          Note
          and the Mortgage and has the full right to convey, transfer and sell the
          Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
          lien
          (other than with respect to second lien Mortgage Loans, the subordination
          to the
          first lien mortgage loan), pledge, charge, claim or security interest and
          immediately upon the sale, assignment and endorsement of the Mortgage Loans
          from
          the Seller to the Purchaser, the Purchaser shall have good and indefeasible
          title to and be the sole legal owner of the Mortgage Loans subject only
          to any
          encumbrance, equity, lien, pledge, charge, claim or security interest arising
          out of the Purchaser’s actions;

         

        (xiii)  Each
          Mortgage Loan is covered by a valid and binding American Land Title Association
          lender’s title insurance policy or other generally acceptable form of policy of
          insurance acceptable to Fannie Mae or Freddie Mac, in either case, issued
          by a
          title insurer qualified to do business in the jurisdiction where the Mortgaged
          Property is located. Except as set forth in the related Mortgage File,
          no claims
          have been filed under such lender’s title insurance policy, and the Seller has
          not done, by act or omission, anything that would impair the coverage of
          the
          lender’s title insurance policy;

         

        (xiv)  Except
          with respect to the Delinquent/Plan Mortgage Loans, there is no material
          default, breach, violation or event of acceleration existing under the
          Mortgage
          or the Mortgage Note and no event which, with the passage of time or with
          notice
          and the expiration of any grace or cure period, would constitute a material
          default, breach, violation or event of acceleration, and the Seller has
          not, nor
          has its predecessors, waived any material default, breach, violation or
          event of
          acceleration;

         

        (xv)  Except
          as
          set forth in the related Mortgage Files, there are no mechanics’ or similar
          liens or claims which have been filed for work, labor or material provided
          to
          the related Mortgaged Property prior to the origination of the Mortgage
          Loan
          which are or may be liens prior to, or equal or coordinate with, the lien
          of the
          related Mortgage, except as may be disclosed in the related title
          policy;

         

        (xvi)  Approximately
          94.64% of the Mortgage Notes are payable on the first day of each month
          in
          monthly payments which (a) in the case of a fixed rate Mortgage Loans are
          sufficient to amortize the Mortgage Loan fully by the stated maturity date
          over
          an original term from commencement of amortization to not more than 35
          years,
          (b) in the case of adjustable rate Mortgage Loans, are changed on each
          adjustment date, and in any case are sufficient to amortize the Mortgage
          Loan
          fully by the stated maturity date over an original term from commencement
          of
          amortization to not more than 45 years and (c) in the case of balloon Mortgage
          Loans, are based on a set amortization schedule of not more than 30 years,
          as
          set forth in the related Mortgage Note, and include a final monthly payment
          substantially greater than the preceding monthly payment which is sufficient
          to
          amortize the remaining principal balance of such balloon Mortgage Loan.
          Other
          than with respect to Simple Interest Mortgage Loans, interest is calculated
          on
          each Mortgage Loan on a 30/360 basis. Interest is payable on each Mortgage
          Loan
          in arrears. Except for 6.91% of the Mortgage Loans (measured by the aggregate
          principal balance of the Mortgage Loans as of the Cut-off Date), no Mortgage
          Loan is a balloon loan. No Mortgage Loan permits negative
          amortization;

         

        (xvii)  The
          servicing practices used in connection with the servicing of the Mortgage
          Loans
          have been in all respects reasonable and customary in the mortgage servicing
          industry of like mortgage loan servicers, servicing similar sub prime mortgage
          loans originated in the same jurisdiction as the Mortgaged
          Property;

         

        (xviii)  At
          the
          time of origination of the Mortgage Loan there was no proceeding pending
          for the
          total or partial condemnation of the Mortgaged Property and, as of the
          date such
          Mortgage Loan was purchased by the Purchaser, to the best of the Purchaser’s
          knowledge there is no proceeding pending for the total or partial condemnation
          of the Mortgaged Property;

         

        (xix)  The
          Mortgage and related Mortgage Note contain customary and enforceable provisions
          such as to render the rights and remedies of the holder thereof adequate
          for the
          realization against the Mortgaged Property of the benefits of the security
          provided thereby, including, (a) in the case of a Mortgage designated as
          a deed
          of trust, by trustee’s sale, and (b) otherwise by judicial
          foreclosure;

         

        (xx)  The
          Mortgage Note is not and has not been secured by any collateral except
          the lien
          of the related Mortgage referred to in subsection (x);

         

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

         

        (xxii)  At
          the
          time of origination and except as otherwise set forth in the related Mortgage
          Files, the Mortgage Loan is not subject to any valid right of rescission,
          set-off, counterclaim or defense, including without limitation the defense
          of
          usury, nor will the operation of any of the terms of the Mortgage Note
          or the
          Mortgage, or the exercise of any right thereunder, render either the Mortgage
          Note or the Mortgage unenforceable, in whole or in part, or subject to
          any such
          right of rescission, set-off, counterclaim or defense, including without
          limitation the defense of usury, and no such right of rescission, set-off,
          counterclaim or defense has been asserted with respect thereto;

         

        (xxiii)  To
          the
          best of the Seller’s knowledge, the Mortgaged Property is free of material
          damage and in good repair, excepting therefrom any Mortgage Loan subject
          to an
          escrow withhold as shown on the Mortgage Loan Schedule;

         

        (xxiv)  All
          of
          the improvements which were included in determining the appraised value
          of the
          Mortgaged Property lie wholly within the Mortgaged Property’s boundary lines and
          no improvements on adjoining properties encroach upon the Mortgaged Property,
          excepting therefrom: (i) any encroachment insured against in the lender’s title
          insurance policy identified in subsection (xiii), (ii) any encroachment
          generally acceptable to sub prime mortgage loan originators doing business
          in
          the same jurisdiction as the Mortgaged Property, and (iii) any encroachment
          which does not materially interfere with the benefits of the security intended
          to be provided by such Mortgage;

         

        (xxv)  All
          parties to the Mortgage Note had the legal capacity to execute the Mortgage
          Note
          and the Mortgage, and the Mortgage Note and the Mortgage have been duly
          executed
          by such parties;

         

        (xxvi)  To
          the
          best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
          no appraised improvement located on or being part of the Mortgaged Property
          was
          in violation of any applicable zoning law or regulation and all inspections,
          licenses and certificates required in connection with the origination of
          any
          Mortgage Loan with respect to the occupancy of the Mortgaged Property,
          have been
          made or obtained from the appropriate authorities;

         

        (xxvii)  No
          Mortgagor has notified the Seller of any relief requested or allowed under
          the
          Servicemembers Civil Relief Act;

         

        (xxviii)  All
          parties which have held an interest in the Mortgage Loan are (or during
          the
          period in which they held and disposed of such interest, were) (1) in compliance
          with any and all applicable licensing requirements of the state wherein
          the
          Mortgaged Property is located, (2) organized under the laws of such state,
          (3)
          qualified to do business in such state, (4) a federal savings and loan
          association or national bank, (5) not doing business in such state, or
          (6)
          exempt from the applicable licensing requirements of such state;

         

        (xxix)  Except
          as
          otherwise disclosed by the Seller, the Mortgage File contains an appraisal
          of
          the related Mortgaged Property which was made prior to the approval of
          the
          Mortgage Loan by a qualified appraiser, duly appointed by the related originator
          and was made in accordance with the Financial Institutions Reform, Recovery,
          and
          Enforcement Act of 1989 and the Uniform Standards of Professional Appraisal
          Practice;

         

        (xxx)  Except
          as
          may otherwise be limited by applicable law, the Mortgage contains an enforceable
          provision for the acceleration of the payment of the unpaid principal balance
          of
          the Mortgage Loan in the event that the Mortgaged Property is sold or
          transferred without the prior written consent of the Mortgagee
          thereunder;

         

        (xxxi)  The
          Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially
          paid with
          funds deposited in a separate account established by the related originator,
          the
          Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
          than
          the Mortgagor. The Mortgage Loan is not a “graduated payment mortgage loan” and
          the Mortgage loan does not have a shared appreciation or other contingent
          interest feature;

         

        (xxxii)  To
          the
          best of the Seller’s knowledge there is no action or proceeding directly
          involving the Mortgaged Property presently pending in which compliance
          with any
          environmental law, rule or regulation is at issue and the Seller has received
          no
          notice of any condition at the Mortgaged Property which is reasonably likely
          to
          give rise to an action or proceeding in which compliance with any environmental
          law, rule or regulation is at issue;

         

        (xxxiii)  Each
          Mortgage Loan is an obligation which is principally secured by an interest
          in
          real property within the meaning of Treasury Regulation section
          1.860G-2(a);

         

        (xxxiv)  Each
          Mortgage Loan is directly secured by a first or second lien on, and consists
          of
          vacant land or a single parcel of, real property with a detached one-to-four
          family residence erected thereon, a townhouse or an individual condominium
          unit
          in a condominium project, an individual unit in a planned unit development
          (“PUD”). No residence or dwelling is a mobile home or a manufactured dwelling
          unless it is an Acceptable Manufactured Dwelling (as defined herein). An
          “Acceptable Manufactured Dwelling” is a manufactured dwelling, which is
          permanently affixed to a foundation and treated as “real estate” under
          applicable law. No Mortgaged Property is used for commercial purposes.
          Mortgaged
          Properties which contain a home office shall not be considered as being
          used for
          commercial purposes as long as the Mortgaged Property has not been altered
          for
          commercial purposes and is not storing any chemicals or raw materials other
          than
          those commonly used for homeowner repair, maintenance and/or household
          purposes;

         

        (xxxv)  The
          Mortgage Interest Rate payable by the Mortgagor is subject to adjustment
          at the
          time and in the amounts as are set forth in the related Mortgage
          Note;

         

        (xxxvi)  No
          Mortgage Loan contains a provision whereby the Mortgagor can convert an
          Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

         

        (xxxvii)  No
          Mortgage Loan is subject to the Home Ownership and Equity Protection Act
          of 1994
          or any comparable law and no Mortgage Loan is classified and/or defined
          as “high
          cost”, “covered” (excluding home loans defined as “covered home loans” in the
          New Jersey Home Ownership Security Act of 2002 that were originated between
          November 26, 2003 and July 7, 2004) or “predatory” loan under any other federal,
          state or local law (or a similarly classified loan using different terminology
          under a law imposing heightened regulatory scrutiny or additional legal
          liability for residential mortgage loans having high interest rates, points
          and/or fees) including, but not limited to, the States of Georgia or North
          Carolina, or the City of New York;

         

        (xxxviii)  There
          is
          no Mortgage Loan that was originated or modified on or after October 1,
          2002 and
          before March 7, 2003, which is secured by property located in the State
          of
          Georgia. There is no such Mortgage Loan underlying the Certificate that
          was
          originated on or after March 7, 2003, which is a “high cost home loan” as
          defined under the Georgia Fair Lending Act;

         

        (xxxix)  With
          respect to any Mortgage Loan that is secured by a second lien on the related
          Mortgaged Property, either (a) no consent for the Mortgage Loan is required
          by
          the holder of any related senior lien or (b) such consent has been obtained
          and
          is contained in the Mortgage File;

         

        (xl)  With
          respect to a Mortgage Loan which is a second lien, as of the date hereof,
          the
          Seller has not received a notice of default of a senior lien on the related
          Mortgaged Property which has not been cured;

         

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

         

        (xlii)  No
          Mortgage Loan is a “High-Cost Home Loan” as defined in the Massachusetts
          Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann.
          Laws
          Ch. 183C)

         

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

         

        (xliv)  No
          Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
          Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
          seq.);

         

        (xlv)  No
          Mortgage Loan is a “Section 10 mortgage loan” as defined in Oklahoma House Bill
          1574; and

         

        (xlvi)  No
          Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such
          terms
          are defined in the then current Standard & Poor’s LEVELS® Glossary which is
          now Version 5.6(d) Revised, Appendix E (attached hereto as Exhibit 2));
          and

         

        (xlvii)  No
          Loan
          secured by property located in the State of Indiana is a high-cost home
          loan as
          defined in the Indiana High Cost Home Loan Act.

         

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

         

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

         

        Except
          with respect to the defects set forth on Schedule
          A
          attached
          hereto, upon discovery by the Seller, the Purchaser or any assignee, transferee
          or designee of the Purchaser of any materially defective document in, or
          that
          any material document was not transferred by the Seller, as listed on a
          Custodian’s preliminary exception report, as described in the related Custodial
          Agreement, as part of any Mortgage File, or of a breach of any of the
          representations and warranties contained in Section 6 that materially and
          adversely affects the value of any Mortgage Loan or the interest therein
          of the
          Purchaser or the Purchaser’s assignee, transferee or designee, the party
          discovering such breach shall give prompt written notice to the Seller.
          Within
          60 days of its discovery or its receipt of notice of any such missing
          documentation that was not transferred by the Seller as described above,
          or of
          materially defective documentation, or any such breach of a representation
          and
          warranty, the Seller promptly shall deliver such missing document or cure
          such
          defect or breach in all material respects or, in the event the Seller cannot
          deliver such missing document or cannot cure such defect or breach, the
          Seller
          shall, within 90 days of its discovery or receipt of notice of any such
          missing
          or materially defective documentation or of any such breach of a representation
          and warranty, either (i) repurchase the affected Mortgage Loan at the Purchase
          Price (as such term is defined in the Pooling and Servicing Agreement)
          or (ii)
          pursuant to the provisions of the Pooling and Servicing Agreement, cause
          the
          removal of such Mortgage Loan from the Trust Fund and substitute one or
          more
          Qualified Substitute Mortgage Loans. The Seller shall amend the Closing
          Schedule
          to reflect the withdrawal of such Mortgage Loan from the terms of this
          Agreement
          and the Pooling and Servicing Agreement. The Seller shall deliver to the
          Purchaser such amended Closing Schedule and shall deliver such other documents
          as are required by this Agreement or the Pooling and Servicing Agreement
          within
          five (5) days of any such amendment. Any repurchase pursuant to this Section
          7(a) shall be accomplished by transfer to an account designated by the
          Purchaser
          of the amount of the Purchase Price in accordance with Section 2.03 of
          the
          Pooling and Servicing Agreement. Any repurchase required by this Section
          shall
          be made in a manner consistent with Section 2.03 of the Pooling and Servicing
          Agreement.

         

        (b)  If
          the
          representation made by the Seller in Section 5(xvii) is breached, the Seller
          shall not have the right or obligation to cure, substitute or repurchase
          the
          affected Mortgage Loan but shall remit to the related Servicer for deposit
          in
          the related Collection Account or the Custodial Account, as applicable,
          prior to
          the next succeeding Servicer Remittance Date, the amount of the Prepayment
          Charge indicated on the applicable part of the Mortgage Loan Schedule to
          be due
          from the Mortgagor in the circumstances less any amount collected and remitted
          to such Servicer for deposit into the related Collection Account or the
          Custodial Account.

         

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

         

        SECTION
          8.  Closing;
          Payment for the Mortgage Loans.The
          closing of the purchase and sale of the Mortgage Loans, shall be held at
          the New
          York City office of Thacher Proffitt & Wood llp
          at 10:00
          a.m. New York City time on the Closing Date.

         

        The
          closing shall be subject to each of the following conditions:

         

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

         

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

         

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

         

        (d)  All
          other
          terms and conditions of this Agreement and the Pooling and Servicing Agreement
          shall have been complied with.

         

        Subject
          to the foregoing conditions, the Purchaser shall deliver or cause to be
          delivered to the Seller on the Closing Date, against delivery and release
          by the
          Seller to the Trustee of all documents required pursuant to the Pooling
          and
          Servicing Agreement, the consideration for the Mortgage Loans as specified
          in
          Section 3 of this Agreement.

         

        SECTION
          9.  Closing
          Documents.
          Without
          limiting the generality of Section 8 hereof, the closing shall be subject
          to
          delivery of each of the following documents:

         

        (a)  An
          Officers’ Certificate of the Seller, dated the Closing Date, upon which the
          Purchaser and DBSI may rely with respect to certain facts regarding the
          sale of
          the Mortgage Loans by the Seller to the Purchaser;

         

        (b)  An
          Opinion of Counsel of the Seller, dated the Closing Date and addressed
          to the
          Purchaser and DBSI;

         

        (c)  Such
          opinions of counsel as the Rating Agencies or the Trustee may request in
          connection with the sale of the Mortgage Loans by the Seller to the Purchaser
          or
          the Seller’s execution and delivery of, or performance under, this Agreement;
          and

         

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

         

        SECTION
          10.  Costs.
          The
          Seller shall pay (or shall reimburse the Purchaser or any other Person
          to the
          extent that the Purchaser or such other Person shall pay) all costs and
          expenses
          incurred in connection with the transfer and delivery of the Mortgage Loans,
          including without limitation, fees for title policy endorsements and
          continuations, the fees and expenses of the Seller’s accountants and attorneys,
          the costs and expenses incurred in connection with producing any Servicer’s loan
          loss, foreclosure and delinquency experience, and the costs and expenses
          incurred in connection with obtaining the documents referred to in Sections
          9(a), 9(b) and 9(c), the costs and expenses of printing (or otherwise
          reproducing) and delivering this Agreement, the Pooling and Servicing Agreement,
          the Certificates, the prospectus and prospectus supplement, and any private
          placement memorandum relating to the Certificates and other related documents,
          the initial fees, costs and expenses of the Trustee, the fees and expenses
          of
          the Purchaser’s counsel in connection with the preparation of all documents
          relating to the securitization of the Mortgage Loans, the filing fee charged
          by
          the Commission for registration of the Certificates and the fees charged
          by any
          rating agency to rate the Certificates.  All other costs and expenses
          in connection with the transactions contemplated hereunder shall be borne
          by the
          party incurring such expense.

         

        SECTION
          11.  Servicing.
          Each
          Mortgage Loan will be master serviced by the Master Servicer under the
          Pooling
          and Servicing Agreement and serviced by the related Servicer on behalf
          of the
          Trust under the Pooling and Servicing Agreement or under the Servicing
          Agreement, as applicable, and the Seller has represented to the Purchaser
          that
          the Mortgage Loans are not subject to any other servicing agreements with
          third
          parties. It is understood and agreed between the Seller and the Purchaser
          that
          the Mortgage Loans are to be delivered free and clear of any servicing
          agreements. Neither the Purchaser nor any affiliate of the Purchaser is
          servicing the Mortgage Loans under any such servicing agreement and,
          accordingly, neither the Purchaser nor any affiliate of the Purchaser is
          entitled to receive any fee for releasing the Mortgage Loans from any such
          servicing agreement. The Seller shall arrange for the orderly transfer,
          of such
          servicing to the Servicer. For so long as the Master Servicer master services
          a
          Mortgage Loan and the related Servicers service such Mortgage Loan, the
          Master
          Servicer shall be entitled to the Master Servicing Fee and the Servicer
          shall be
          entitled to the servicing fee with respect to such Mortgage Loan and such
          other
          payments as provided for under the terms of the Pooling and Servicing Agreement
          and the Servicing Agreement, as applicable.

         

        SECTION
          12.  Mandatory
          Delivery; Grant of Security Interest.  The
          sale and delivery on the Closing Date of the Mortgage Loans described on
          the
          Mortgage Loan Schedule in accordance with the terms and conditions of this
          Agreement is mandatory.  It is specifically understood and agreed that
          each Mortgage Loan is unique and identifiable on the date hereof and that
          an
          award of money damages would be insufficient to compensate the Purchaser
          for the
          losses and damages incurred by the Purchaser in the event of the Seller’s
          failure to deliver the Mortgage Loans on or before the Closing
          Date.  The Seller hereby grants to the Purchaser a lien on and a
          continuing security interest in the Seller’s interest in each Mortgage Loan and
          each document and instrument evidencing each such Mortgage Loan to secure
          the
          performance by the Seller of its obligation hereunder, and the Seller agrees
          that it holds such Mortgage Loans in custody for the Purchaser, subject
          to the
          Purchaser’s (i) right, prior to the Closing Date, to reject any Mortgage Loan to
          the extent permitted by this Agreement and (ii) obligation to deliver or
          cause
          to be delivered the consideration for the Mortgage Loans pursuant to Section
          8
          hereof.  Any Mortgage Loans rejected by the Purchaser shall
          concurrently therewith be released from the security interest created
          hereby.  All rights and remedies of the Purchaser under this Agreement
          are distinct from, and cumulative with, any other rights or remedies under
          this
          Agreement or afforded by law or equity and all such rights and remedies
          may be
          exercised concurrently, independently or successively.

         

        Notwithstanding
          the foregoing, if on the Closing Date, each of the conditions set forth
          in
          Section 8 hereof shall have been satisfied and the Purchaser shall not
          have paid
          or caused to be paid the Purchase Price, or any such condition shall not
          have
          been waived or satisfied and the Purchaser determines not to pay or cause
          to be
          paid the Purchase Price, the Purchaser shall immediately effect the redelivery
          of the Mortgage Loans, if delivery to the Purchaser has occurred, and the
          security interest created by this Section 12 shall be deemed to have been
          released.

         

        SECTION
          13.  Notices.  All
          demands, notices and communications hereunder shall be in writing and shall
          be
          deemed to have been duly given if personally delivered to or mailed by
          registered mail, postage prepaid, or transmitted by fax and, receipt of
          which is
          confirmed by telephone, if to the Purchaser, addressed to the Purchaser
          at 6525
          Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211, fax: (704)
          365-1362, Attention: Juliana Johnson, or such other address as may hereafter
          be
          furnished to the Seller  in writing by the Purchaser; and if to the
          Seller, addressed to the Seller at 60 Wall Street, New York, New York 10005,
          fax: (212) 250-2740, Attention:  Michael Commaroto, or to such other
          address as the Seller may designate in writing to the Purchaser.

         

        SECTION
          14.  Severability
          of Provisions.  Any
          part, provision, representation or warranty of this Agreement that is prohibited
          or that is held to be void or unenforceable shall be ineffective to the
          extent
          of such prohibition or unenforceability without invalidating the remaining
          provisions hereof.  Any part, provision, representation or warranty of
          this Agreement that is prohibited or unenforceable or is held to be void
          or
          unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
          to the extent of such prohibition or unenforceability without invalidating
          the
          remaining provisions hereof, and any such prohibition or unenforceability
          in any
          jurisdiction as to any Mortgage Loan shall not invalidate or render
          unenforceable such provision in any other jurisdiction.  To the extent
          permitted by applicable law, the parties hereto waive any provision of
          law which
          prohibits or renders void or unenforceable any provision hereof.

         

        SECTION
          15.  Agreement
          of Parties.  The
          Seller and the Purchaser each agree to execute and deliver such instruments
          and
          take such actions as either of the others may, from time to time, reasonably
          request in order to effectuate the purpose and to carry out the terms of
          this
          Agreement and the Pooling and Servicing Agreement.

         

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

         

        SECTION
          17.  GOVERNING
          LAW.  THIS
          AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
          PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
          LAWS
          (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF
          NEW
          YORK.  THE
          PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW
          YORK
          GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

         

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

         

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

         

        SECTION
          19.  Third
          Party Beneficiary.  The
          parties hereto acknowledge and agree that DBSI and each of its respective
          successors and assigns shall have all the rights of a third-party beneficiary
          in
          respect of Section 12 of this Agreement and shall be entitled to rely upon
          and
          directly enforce the provisions of Section 12 of this Agreement.

         

        [signature
          page to follow]

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          
          

        

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

         

        
          	
                  DB
                    STRUCTURED PRODUCTS, INC.

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 	 
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 	 
	 	 
	
                  ACE
                    SECURITIES CORP.

                
	 	 
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 	 
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        

        EXHIBIT
          1

         

        Loan
          #:
_____________

        Borrower:
          _____________

        LOST
          NOTE
          AFFIDAVIT

         

        I,
          as
          _____________________ of ____________________, a _______________ am authorized
          to make this Affidavit on behalf of __________________ (the “Seller”). In
          connection with the administration of the Mortgage Loans held by
          ______________________, a _______________ [corporation] as Seller on behalf
          of
          ____________________ (the “Purchaser”), _______________________ (the
“Deponent”), being duly sworn, deposes and says that:

         

        1.     The
          Seller’s address is: 

        
          	 
	 
	 

        

        

        2.     The
          Seller previously delivered to the Purchaser a signed Initial Certification
          with
          respect to such Mortgage and/or Assignment of Mortgage;

         

        3.     Such
          Mortgage
          Note and/or Assignment of Mortgage was assigned or sold to the Purchaser
          by
          __________________, a pursuant to the terms and provisions of a Mortgage
          Loan
          Purchase Agreement dated as of _____________;

         

        4.     Such
          Mortgage
          Note and/or Assignment of Mortgage is not outstanding pursuant to a request
          for
          release of Documents;

         

        5.     Aforesaid
          Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
          lost;

         

        6.     Deponent
          has
          made or caused to be made a diligent search for the Original and has been
          unable
          to find or recover same;

         

        7.     The
          Seller was the Seller of the Original at the time of the loss; and

         

        8.     Deponent
          agrees that, if said Original should ever come into Seller’s possession, custody
          or power, Seller will immediately and without consideration surrender the
          Original to the Purchaser.

         

        9.     Attached
          hereto is a true and correct copy of (i) the Note, endorsed in blank by
          the
          Mortgagee and (ii) the Mortgage or Deed of Trust (strike one) which secures
          the
          Note, which Mortgage or Deed of Trust is recorded in the county where the
          property is located.

         

        10.     Deponent
          hereby agrees that the Seller (a) shall indemnify and hold harmless the
          Purchaser, its successors and assigns, against any loss, liability or damage,
          including reasonable attorney’s fees, resulting from the unavailability of any
          Notes, including but not limited to any loss, liability or damage arising
          from
          (i) any false statement contained in this Affidavit, (ii) any claim of
          any party
          that purchased a mortgage loan evidenced by the Lost Note or any interest
          in
          such mortgage loan, (iii) any claim of any borrower with respect to the
          existence of terms of a mortgage loan evidenced by the Lost Note on the
          related
          property to the fact that the mortgage loan is not evidenced by an original
          note
          and (iv) the issuance of a new instrument in lieu thereof (items (i) through
          (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
          Rating Agency in connection with placing such Lost Note into a Pass-Through
          Transfer, shall obtain a surety from an insurer acceptable to the applicable
          Rating Agency to cover any Losses with respect to such Lost Note.

         

        11.     This
          Affidavit is intended to be relied upon by the Purchaser, its successors
          and
          assigns. Seller represents and warrants that is has the authority to perform
          its
          obligations under this Affidavit of Lost Note.

         

        Executed
          this _ day of _______, 200_.

         

        
          	 
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        On
          this
          __ day of ______, 200_, before me appeared ______________________ to me
          personally known, who being duly sworn did say that he is the
          _______________________ of ____________________, a ______________________
          and
          that said Affidavit of Lost Note was signed and sealed on behalf of such
          corporation and said acknowledged this instrument to be the free act and
          deed of
          said entity.

         

        Signature:

         

        [Seal]

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          2

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          A

        DEFECTS
          SCHEDULE

        

        

        [PROVIDED
          UPON REQUEST]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          B

        

        NONE.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          C

        

        [PROVIDED
          UPON REQUEST]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

      

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the party identified
        as responsible for preparing the Securities Exchange Act Reports pursuant
        to
        Section 5.06(a)(ii). 

      

      Under
        Item 1 of Form 10-D: a) items marked “monthly statement” are required to be
        included in the periodic Distribution Date statement under Section 5.02,
        provided by the Securities Administrator based on information received from
        the
        Master Servicer; and b) items marked “Form 10-D report” are required to be in
        the Form 10-D report but not the monthly statement, provided by the party
        indicated. Information under all other Items of Form 10-D is to be included
        in
        the Form 10-D report.

      

      
        	
                Form

              	
                Item

              	
                Description

              	
                Servicers

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Custodian

              	
                Trustee

              	
                Depositor

              	
                Sponsor

              
	
                10-D

              	
                Must
                  be filed within 15 days of the distribution date for the asset-backed
                  securities.

              	 	 	 	 
	 	
                1

              	
                Distribution
                  and Pool Performance Information

              	 	 	 	 	 	 	 
	
                Item
                  1121(a) - Distribution and Pool Performance
                  Information

              	 	 	 	 	 	 	 
	
                (1)
                  Any applicable record dates, accrual dates, determination dates
                  for
                  calculating distributions and actual distribution dates for the
                  distribution period.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (2)
                  Cash flows received and the sources thereof for distributions,
                  fees and
                  expenses.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (3)
                  Calculated amounts and distribution of the flow of funds for the
                  period
                  itemized by type and priority of payment, including:

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (i)
                  Fees or expenses accrued and paid, with an identification of the
                  general
                  purpose of such fees and the party receiving such fees or
                  expenses.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (ii)
                  Payments accrued or paid with respect to enhancement or other support
                  identified in Item 1114 of Regulation AB (such as insurance premiums
                  or
                  other enhancement maintenance fees), with an identification of
                  the general
                  purpose of such payments and the party receiving such
                  payments.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (iii)
                  Principal, interest and other distributions accrued and paid on
                  the
                  asset-backed securities by type and by class or series and any
                  principal
                  or interest shortfalls or carryovers.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (iv)
                  The amount of excess cash flow or excess spread and the disposition
                  of
                  excess cash flow.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (4)
                  Beginning and ending principal balances of the asset-backed
                  securities.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (5)
                  Interest rates applicable to the pool assets and the asset-backed
                  securities, as applicable. Consider providing interest rate information
                  for pool assets in appropriate distributional groups or incremental
                  ranges.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (6)
                  Beginning and ending balances of transaction accounts, such as
                  reserve
                  accounts, and material account activity during the period.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (7)
                  Any amounts drawn on any credit enhancement or other support identified
                  in
                  Item 1114 of Regulation AB, as applicable, and the amount of coverage
                  remaining under any such enhancement, if known and
                  applicable.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (8)
                  Number and amount of pool assets at the beginning and ending of
                  each
                  period, and updated pool composition information, such as weighted
                  average
                  coupon, weighted average remaining term, pool factors and prepayment
                  amounts.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	
                Updated
                  pool composition information fields to be as specified by Depositor
                  from
                  time to time

              	 
	
                (9)
                  Delinquency and loss information for the period.

              	
                X

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                In
                  addition, describe any material changes to the information specified
                  in
                  Item 1100(b)(5) of Regulation AB regarding the pool assets.
                  (methodology)

              	
                X

              	
                X

              	 	 	 	 	 
	
                (10)
                  Information on the amount, terms and general purpose of any advances
                  made
                  or reimbursed during the period, including the general use of funds
                  advanced and the general source of funds for
                  reimbursements.

              	
                X

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (11)
                  Any material modifications, extensions or waivers to pool asset
                  terms,
                  fees, penalties or payments during the distribution period or that
                  have
                  cumulatively become material over time.

              	
                X

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (12)
                  Material breaches of pool asset representations or warranties or
                  transaction covenants.

              	
                X

              	
                X

              	 	 	 	
                X

              	 
	
                (13)
                  Information on ratio, coverage or other tests used for determining
                  any
                  early amortization, liquidation or other performance trigger and
                  whether
                  the trigger was met.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (14)
                  Information regarding any new issuance of asset-backed securities
                  backed
                  by the same asset pool, 

              	 	 	 	 	 	
                X

              	 
	
                any
                  pool asset changes (other than in connection with a pool asset
                  converting
                  into cash in accordance with its terms), such as additions or removals
                  in
                  connection with a prefunding or revolving period and pool asset
                  substitutions and repurchases (and purchase rates, if applicable),
                  and
                  cash flows available for future purchases, such as the balances
                  of any
                  prefunding or revolving accounts, if applicable.

              	
                X

              	
                X

              	
                X

              	 	 	
                X

              	 
	
                Disclose
                  any material changes in the solicitation, credit-granting, underwriting,
                  origination, acquisition or pool selection criteria or procedures,
                  as
                  applicable, used to originate, acquire or select the new pool
                  assets.

              	 	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1121(b) - Pre-Funding or Revolving Period Information

                 

                Updated
                  pool information as required under Item 1121(b).

              	 	 	 	 	 	
                X

              	 
	
                2

              	
                Legal
                  Proceedings

              	 	 	 	 	 	 	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	 	
                X

              	 	 
	
                Issuing
                  entity

              	 	 	 	 	 	
                X

              	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	 	
                X

              	 	 	 	 
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	 	 	 	 	 	
                X

              	 
	
                Custodian

              	 	 	 	
                X

              	 	 	 
	
                3

              	
                Sales
                  of Securities and Use of Proceeds

              	 	 	 	 	 	 	 
	
                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	 	 	 	 	 	
                X

              	 
	
                4

              	
                Defaults
                  Upon Senior Securities

              	 	 	 	 	 	 	 
	
                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	 	 	
                X

              	 	
                X

              	 	 
	
                5

              	
                Submission
                  of Matters to a Vote of Security Holders

              	 	 	 	 	 	 	 
	
                Information
                  from Item 4 of Part II of Form 10-Q

              	 	 	
                X

              	 	
                X

              	 	 
	
                6

              	
                Significant
                  Obligors of Pool Assets

              	 	 	 	 	 	 	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	 	 	 	 	 	
                X

              	
                X

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 	 	 	 	 	 	 
	
                7

              	
                Significant
                  Enhancement Provider Information

              	 	 	 	 	 	 	 
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 	 	 	 	 	 	 
	
                Determining
                  applicable disclosure threshold

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 	 	 	 	 	 	 
	
                Determining
                  current maximum probable exposure

              	 	 	 	 	 	
                X

              	 
	
                Determining
                  current significance percentage

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 	 	 	 	 	 	 
	
                8

              	
                Other
                  Information

              	 	 	 	 	 	 	 
	
                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                The
                  Responsible Party for the applicable Form 8-K item as indicated
                  below.

              
	
                9

              	
                Exhibits

              	 	 	 	 	 	 	 
	
                Distribution
                  report

              	 	 	
                X

              	 	 	 	 
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	 	 	 	 	 	
                X

              	 
	
                8-K

              	
                Must
                  be filed within four business days of an event reportable on Form
                  8-K.

              	 	 	 	 
	
                1.01

              	
                Entry
                  into a Material Definitive Agreement

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                X

              	
                X

              	
                X
                  (if Master Servicer is not a party)

              	 	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              
	
                1.02

              	
                Termination
                  of a Material Definitive Agreement

              	
                X

              	
                X

              	
                X
                  (if Master Servicer is not a party)

              	 	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              
	
                Disclosure
                  is required regarding termination of any definitive agreement that
                  is
                  material to the securitization (other than expiration in accordance
                  with
                  its terms), even if depositor is not a party. 

                 

                 

                Examples:
                  servicing agreement, custodial agreement.

              	 	 	 	 	 	 	 
	
                1.03

              	
                Bankruptcy
                  or Receivership

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required regarding the bankruptcy or receivership, if known
                  to the
                  Master Servicer, with respect to any of the following: 

                 

                Sponsor
                  (Seller), Depositor, Master Servicer, affiliated Servicer, other
                  Servicer
                  servicing 20% or more of pool assets at time of report, other material
                  servicers, Certificate Administrator, Trustee, significant obligor,
                  credit
                  enhancer (10% or more), derivatives counterparty,
                  Custodian

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X 

              	
                X 

              	
                X

              
	
                2.04

              	
                Triggering
                  Events that Accelerate or Increase a Direct Financial Obligation
                  or an
                  Obligation under an Off-Balance Sheet Arrangement

              	 	 	 	 	 	 	 
	
                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the 5.02 statement

              	 	
                X

              	
                X

              	 	 	 	 
	
                3.03

              	
                Material
                  Modification to Rights of Security Holders

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement

              	 	
                X

              	
                X

              	 	
                X

              	
                X

              	 
	
                5.03

              	
                Amendments
                  to Articles of Incorporation or Bylaws; Change in Fiscal
                  Year

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”

              	 	 	 	 	
                X

              	
                X

              	 
	
                5.06

              	
                Change
                  in Shell Company Status

              	 	 	 	 	 	 	 
	
                [Not
                  applicable to ABS issuers]

              	 	 	 	 	 	
                X

              	 
	
                6.01

              	
                ABS
                  Informational and Computational Material

              	 	 	 	 	 	 	 
	
                [Not
                  included in reports to be filed under Section 3.18]

              	 	 	 	 	 	
                X

              	 
	
                6.02

              	
                Change
                  of Servicer or Trustee

              	 	 	 	 	 	 	 
	
                Requires
                  disclosure of any removal, replacement, substitution or addition
                  of any
                  master servicer, affiliated servicer, other servicer servicing
                  10% or more
                  of pool assets at time of report, other material servicers, certificate
                  administrator or trustee. 

              	
                X

              	
                X

              	
                X

              	 	
                X

              	
                X

              	 
	 	
                Reg
                  AB disclosure about any new servicer (from entity appointing new
                  servicer)
                  or trustee (from Depositor) is also required.

              	
                X

              	 	 	 	
                X

              	
                X

              	 
	
                6.03

              	
                Change
                  in Credit Enhancement or Other External Support

              	 	 	 	 	 	 	 
	
                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  

              	 	 	
                X

              	 	
                X

              	
                X

              	 
	 	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required

              	 	 	 	 	 	
                X

              	 
	
                6.04

              	
                Failure
                  to Make a Required Distribution

              	 	 	
                X

              	 	
                X

              	 	 
	
                6.05

              	
                Securities
                  Act Updating Disclosure

              	 	 	 	 	 	 	 
	
                If
                  any material pool characteristic differs by 5% or more at the time
                  of
                  issuance of the securities from the description in the final prospectus,
                  provide updated Reg AB disclosure about the actual asset
                  pool.

              	 	 	 	 	 	
                X

              	
                 

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	 	 	 	 	 	
                X

              	 
	
                7.01

              	
                Regulation
                  FD Disclosure

              	
                X

              	
                X

              	
                X

              	 	
                X

              	
                X

              	
                X

              
	
                8.01

              	
                Other
                  Events

              	 	 	 	 	 	 	 
	
                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to security
                  holders.

              	 	 	 	 	 	
                X

              	 
	
                9.01

              	
                Financial
                  Statements and Exhibits

              	
                The
                  Responsible Party applicable to reportable event.

              
	
                10-K

              	
                Must
                  be filed within 90 days of the fiscal year end for the
                  registrant.

              	 	 	 	 
	
                9B

              	
                Other
                  Information

              	 	 	 	 	 	 	 
	 	 	
                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                The
                  Responsible Party for the applicable Form 8-K as indicated
                  above.

              
	 	
                15

              	
                Exhibits
                  and Financial Statement Schedules

              	 	 	 	 	 	 	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information

              	 	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information

              	 	 	 	 	 	 	 
	
                Determining
                  applicable disclosure threshold

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information

              	 	 	 	 	 	 	 
	
                Determining
                  current maximum probable exposure

              	 	 	 	 	 	
                X

              	 
	 	 	
                Determining
                  current significance percentage

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	 	
                X

              	 	 
	
                Issuing
                  entity

              	 	 	 	 	 	
                X

              	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	 	
                X

              	 	 	 	 
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	 	 	 	 	 	
                X

              	
                X

              
	
                Custodian

              	 	 	 	
                X

              	 	 	 
	
                Item
                  1119 - Affiliations and relationships between the following entities,
                  or
                  their respective affiliates, that are material to
                  Certificateholders:

              	 	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	 	
                X
                  (with respect to Item 1119(a) affiliations only)

              	 	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	 	
                X

              	 	 	 	 
	
                Originator

              	 	 	 	 	 	
                X

              	
                X

              
	
                Custodian

              	 	 	 	
                X
                  (with respect to affiliations only)

              	 	 	 
	
                Credit
                  Enhancer/Support Provider

              	 	 	 	 	 	
                X

              	
                X

              
	
                Significant
                  Obligor

              	 	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1122 - Assessment of Compliance with Servicing
                  Criteria

              	
                X

              	
                X

              	
                X

              	
                X

              	 	 	 
	
                Item
                  1123 - Servicer Compliance Statement

              	
                X

              	
                X

              	 	 	 	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        H

       

      ADDITIONAL
        DISCLOSURE NOTIFICATION

       

      **SENT
        VIA FAX TO [_XXX)XXX-XXXX] AND VIA EMAIL TO [_________________] AND VIA
        OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW:

       

      Wells
        Fargo Bank, N.A. as Securities Administrator

      Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      Attn:
        Corporate Trust Services - ACE 2006-SD1 - SEC REPORT PROCESSING

       

      ACE
        Securities Corp.

      6525
        Morrison Boulevard, Suite 318

      Charlotte,
        North Carolina 28211

      Fax:
        (704) 365-1362)

      Attn:
        Juliana Johnson

       

      RE:
        **
        Additional Form [10-D][10-K][8-K] Disclosure** Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [__] of the Pooling and Servicing Agreement, dated
        as of [________] [__], 2006 among [_____________], as [______], [_____________],
        as [______], [_____________], as [______] and [_____________], as [______],
        the
        undersigned, as [______], hereby notifies you that certain events have come
        to
        our attention that [will] [may] need to be disclosed on Form
        [10-D][10-K][8-K].

       

      Description
        of Additional Form [10-D][10-K][8-K] Disclosure:

       

      

       

      

       

      List
        of any Attachments hereto to be included in the Additional Form
        [10-D][10-K][8-K] Disclosure: 

       

      

       

      Any
        inquiries related to this notification should be directed to [_____________],
        phone number: [______]; email address: [_________________].

       

      
        	 	
                [NAME
                  OF PARTY],

                as
                  [role]

              
	 
	 
	
                By:
                  _____________________________________

              
	
                Name: 

              
	
                Title: 

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        1

      

      MORTGAGE
        LOAN SCHEDULE

      

      (AVAILABLE
        UPON REQUEST)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        2

      

      PREPAYMENT
        CHARGE SCHEDULE

      

      (AVAILABLE
        UPON REQUEST)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        3

      

      STANDARD
        FILE LAYOUT- DELINQUENCY REPORTING

      

      

      Exhibit
        : Standard
        File Layout - Delinquency Reporting

      

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	 	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the originator.

              	 	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  Client Number

              	 	 
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external servicer to identify
                  a group of
                  loans in their system.

              	 	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  Name of the Borrower.

              	 	 
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	 	 
	
                PROP_ADDRESS

              	
                Street
                  Name and Number of Property

              	 	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	 	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	 	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	 	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  Type (i.e. FHA, VA, Conv)

              	 	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	 	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	 	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                  Discharged
                  and/or a Motion For Relief Was Granted. 

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  Date The Loss Mitigation Was Approved By The Servicer

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  Type Of Loss Mitigation Approved For A Loan Such As;

              	 	 
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  Date The Loss Mitigation /Plan Is Scheduled To End/Close

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  Date The Loss Mitigation Is Actually Completed

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the servicer with instructions
                  to begin
                  foreclosure proceedings.

              	 	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  File Was Referred To Attorney to Pursue Foreclosure

              	 	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an Attorney in a Foreclosure Action

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the servicer initiates eviction of the borrower.

              	 	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	 	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	 	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  Date Of REO Sale

              	 	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	 	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	 	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	 	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  Code Describing Status of Loan

              	 	 
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of Mortgage Insurance Claim Filed

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  Claim Was Filed With Pool Insurance Company

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of Claim Filed With Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  Paid On Claim By Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD Disbursed Part A Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part A Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD Disbursed Part B Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part B Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting

       

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

       

      	·  	
              ASUM-Approved
                Assumption

            

       

      	·  	
              BAP-Borrower
                Assistance Program

            

       

      	·  	
              CO-
                Charge Off

            

       

      	·  	
              DIL-
                Deed-in-Lieu

            

       

      	·  	
              FFA-
                Formal Forbearance Agreement

            

       

      	·  	
              MOD-
                Loan Modification

            

       

      	·  	
              PRE-
                Pre-Sale

            

       

      	·  	
              SS-
                Short Sale

            

       

      	·  	
              MISC-Anything
                else approved by the PMI or Pool Insurer

            

       

      

       

      NOTE:
        Wells
        Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      

       

      The
        Occupant
        Code
        field
        should show the current status of the property code as follows:

       

      	·  	
              Mortgagor

            

       

      	·  	
              Tenant

            

       

      	·  	
              Unknown
                

            

       

      	·  	
              Vacant

            

       

      

       

      The
        Property
        Condition
        field
        should show the last reported condition of the property as follows:

       

      	·  	
              Damaged

            

       

      	·  	
              Excellent

            

       

      	·  	
              Fair

            

       

      	·  	
              Gone

            

       

      	·  	
              Good

            

       

      	·  	
              Poor

            

       

      	·  	
              Special
                Hazard

            

       

      	·  	
              Unknown

            

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      

       

      The
        FNMA
        Delinquent Reason Code
        field
        should show the Reason for Delinquency as follows: 

       

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

      

       

      The
        FNMA
        Delinquent Status Code
        field
        should show the Status of Default as follows: 

       

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

       

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        : Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      1.  

       

      2.  The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

       

      1. The
        Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      2. The
        Total
        Interest Due less the aggregate amount of servicing fee that would have been
        earned if all delinquent payments had been made as agreed. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      3.
         Accrued
        Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
        Loan
        as calculated on a monthly basis. For documentation, an Amortization Schedule
        from date of default through liquidation breaking out the net interest and
        servicing fees advanced is required.

       

      4-12. Complete
        as applicable. Required documentation:

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

       

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and
        WFB’s approved Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.  The
        total
        of lines 1 through 12.

       

      3.  Credits:
        

       

      14-21. Complete
        as applicable. Required documentation:

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow
        Agent / Attorney

       

      Letter
        of
        Proceeds
        Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

       

      Please
        Note: For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

       

      

       

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      23. The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show
        the
        amount in parenthesis ( ). 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        3A: Calculation
        of Realized Loss/Gain Form 332

      

       

      Prepared
        by: __________________   Date:
        _______________

       

       

      Phone:
        ______________________          Email
        Address:_____________________

       

       

      

       

       

      

       

      
        	
                Servicer
                  Loan No.

              	 	
                Servicer
                  Name

              	 	
                Servicer
                  Address 

                 

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

       

      Property
        Address: _________________________________________________________

       

      Liquidation
        Type: REO
        Sale        3rd
        Party Sale        Short
        Sale        Charge
        Off

       

      Was
        this loan granted a Bankruptcy deficiency or cramdown        Yes        No

       

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

       

      Liquidation
        and Acquisition Expenses:

       

      
        	 	
                (1)
                  Actual
                  Unpaid Principal Balance of Mortgage Loan

              	
                $_________________

              	
                (1)

              
	 	
                (2)
                  Interest
                  accrued at Net Rate

              	
                __________________

              	
                (2)

              
	 	
                (3)
                  Accrued
                  Servicing Fees

              	
                __________________

              	
                (3)

              
	 	
                (4)
                  Attorney's
                  Fees

              	
                __________________

              	
                (4)

              
	 	
                (5)
                  Taxes
                  (see page 2)

              	
                __________________

              	
                (5)

              
	 	
                (6)
                  Property
                  Maintenance

              	
                __________________

              	
                (6)

              
	 	
                (7)
                  MI/Hazard
                  Insurance Premiums (see page 2)

              	
                __________________

              	
                (7)

              
	 	
                (8)
                  Utility
                  Expenses

              	
                __________________

              	
                (8)

              
	 	
                (9)
                  Appraisal/BPO

              	
                __________________

              	
                (9)

              
	 	
                (10)
                  Property
                  Inspections

              	
                __________________

              	
                (10)

              
	 	
                (11)
                  FC
                  Costs/Other Legal Expenses

              	
                __________________

              	
                (11)

              
	 	
                (12)
                  Other
                  (itemize)

              	
                __________________

              	
                (12)

              
	 	
                Cash
                  for Keys__________________________

              	
                __________________

              	
                (12)

              
	 	
                HOA/Condo
                  Fees_______________________

              	
                __________________

              	
                (12)

              
	 	
                ______________________________________

              	
                __________________

              	
                (12)

              
	 	 	 	 
	 	
                Total
                  Expenses

              	
                $________________

              	
                (13)

              
	 	 	 	 
	 	
                Credits:

              	 	 
	 	
                (14)
                  Escrow Balance

              	
                $_________________

              	
                (14)

              
	 	
                (15)
                  HIP Refund

              	
                __________________

              	
                (15)

              
	 	
                (16)
                  Rental Receipts

              	
                __________________

              	
                (16)

              
	 	
                (17)
                  Hazard Loss Proceeds

              	
                __________________

              	
                (17)

              
	 	
                (18)
                  Primary Mortgage Insurance / Gov’t Insurance

              	
                __________________

              	
                (18)

              
	 	
                (18a)
                  HUD Part A

              	 	
                (18a)

              
	 	
                (18b)
                  HUD Part B

              	 	
                (18b)

              
	 	
                (19)
                  Pool Insurance Proceeds

              	
                ____________________

              	
                (19)

              
	 	
                (20)
                  Proceeds from Sale of Acquired Property

              	
                ____________________

              	
                (20)

              
	 	
                (21)
                  Other (itemize)

              	
                ____________________

              	
                (21)

              
	 	
                _____________________________________________________

              	 	
                (21)

              
	 	 	 	 
	 	
                Total
                  Credits

              	
                $___________________

              	
                (22)

              
	 	
                Total
                  Realized Loss (or Amount of Gain)

              	
                $___________________

              	
                (23)

              
	 	 	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        4

      

      STANDARD
        FILE LAYOUT- MASTER SERVICING

      

      
        	
                Standard
                  File Layout - Master Servicing 

              	 	 	 
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	 	 	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        5

      

      STANDARD
        FILE LAYOUT- SIMPLE INTEREST MORTGAGE LOANS

      

      
        	
                FldName

              	
                FldType

              	
                FldSize

              	
                PositionOffset

              	
                Comments

              
	 	 	 	 	 
	
                Loan_Nbr

              	
                Text

              	
                10

              	
                (1:10)

              	
                REQUIRED.
                  This is the loan Number as reported to the Investor. Data is left
                  justified - retaining any leading zeros that are part of the loan
                  number.

              
	 	 	 	 	 
	
                Svc_Seq_Num

              	
                Text

              	
                3

              	
                (11:13)
                  

              	
                Servicer's
                  Sequence Number - for each loan the transactions within the reporting
                  period are assigned a sequence number indicating the order in which
                  they
                  were processed. For example, the first transaction for each loan
                  would
                  have sequence number 1. The next transaction, if any, for that
                  loan would
                  have sequence number 2, and so on. Data is right justified and
                  may or may
                  not have leading zeros.

              
	 	 	 	 	 
	
                Trans_Code

              	
                Text

              	
                6

              	
                (14:19)

              	
                This
                  is the servicer's transaction code as generated by its accounting
                  system.
                  If supplied, the data is right justified and may or may not have
                  leading
                  zeros.

              
	 	 	 	 	 
	
                Trans_Amt

              	
                Text

              	
                11

              	
                (20:30)
                  

              	
                REQUIRED.
                  This is the transaction amount for the transaction being reported.
                  This is
                  not necessarily the same amount as the P&I constant, reported
                  elsewhere in this file. The data is right justified and may or
                  may not
                  have leading zeros. The data will have 2 decimal places which are
                  implied.
                  If the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number. If no transaction took place in the
                  reporting
                  period, this field should be filled with zeros(0).

              
	 	 	 	 	 
	
                Last_Pay_Eff_Dt

              	
                Text

              	
                8

              	
                (31:38)

              	
                This
                  is the last effective payment date for the current transaction.
                  The format
                  should be YYYYMMDD.

              
	 	 	 	 	 
	
                Curr_Pay_Eff_Dt

              	
                Text

              	
                8

              	
                (39:46)
                  

              	
                REQUIRED.
                  This is the effective payment date of the current transaction.
                  If the
                  Trans_Amt for this transaction is zero, this date will be the same
                  as the
                  Last_Pay_Eff_Dt. The format should be YYYYMMDD.

              
	 	 	 	 	 
	
                Beg_Act_Prin_Bal

              	
                Text

              	
                11

              	
                (47:57)
                  

              	
                This
                  will be the beginning actual principal balance for the current
                  transaction. The data is right justified and may or may not have
                  leading
                  zeros. The data will have 2 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                Beg_Accr_Int_Recvd

              	
                Text

              	
                11

              	
                (58:68)
                  

              	
                This
                  is the beginning balance of accrued interest that is unpaid before
                  processing the current transaction. The data is right justified
                  and may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                Curr_Int_Accr

              	
                Text

              	
                11

              	
                (69:79)
                  

              	
                This
                  is the current interest accrual for this transaction. The data
                  is right
                  justified and may or may not have leading zeros. The data will
                  have 2
                  decimal places which are implied. If the amount is negative, the
                  negative
                  sign must immediately precede the first value in the
                  number.

              
	
                Applied_Int_Amt

              	
                Text

              	
                11

              	
                (80:90)
                  

              	
                This
                  is that portion of the transaction amount that is applied against
                  accrued
                  interest. The data is right justified and may or may not have leading
                  zeros. The data will have 2 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                End_Accr_Int_Recv

              	
                Text

              	
                11

              	
                (91:101)

              	
                REQUIRED.
                  This is the ending balance of accrued interest remaining unpaid
                  after the
                  current transaction is processed. The data is right justified and
                  may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                Applied_Princ_Amt

              	
                Text

              	
                11

              	
                (102:112)

              	
                This
                  is that portion of the transaction amount that is being applied
                  against
                  principal when this transaction is processed. The data is right
                  justified
                  and may or may not have leading zeros. The data will have 2 decimal
                  places
                  which are implied. If the amount is negative, the negative sign
                  must
                  immediately precede the first value in the number.

              
	 	 	 	 	 
	
                End_Act_Princ_Bal

              	
                Text

              	
                11

              	
                (113:123)

              	
                REQUIRED.
                  This is the ending actual principal balance remaining after the
                  current
                  transaction is processed. The data is right justified and may or
                  may not
                  have leading zeros. The data will have 2 decimal places which are
                  implied.
                  If the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number.

              
	 	 	 	 	 
	
                Sched_Secur_Int

              	
                Text

              	
                9

              	
                (124:132)

              	
                For
                  Scheduled / Actual deals where the servicer is passing through
                  scheduled
                  interest each period, this is the gross scheduled security interest
                  due
                  from servicer. For these kinds of deals this amount is to be supplied
                  whether or not a payment is being reported. When more than one
                  transaction
                  is being reported on a loan, this field would be populated only
                  for the
                  transaction with sequence number 1. The data is right justified
                  and may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                Serv_Fee_Amt

              	
                Text

              	
                9

              	
                (133:141)
                  

              	
                This
                  is the dollar amount of the servicer's fee associated with the
                  current
                  transaction only (each transaction may have a Serv_Fee_Amt associated
                  with
                  it). The data is right justified and may or may not have leading
                  zeros.
                  The data will have 2 decimal places which are implied. If the amount
                  is
                  negative, the negative sign must immediately precede the first
                  value in
                  the number.

              
	 	 	 	 	 
	
                Beg_Defer_Bal

              	
                Text

              	
                9

              	
                (142:150)
                  

              	
                This
                  is the beginning balance of the deferred amount (if any) for the
                  current
                  transaction. The data is right justified and may or may not have
                  leading
                  zeros. The data will have 2 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                Chg_Defer_Bal

              	
                Text

              	
                9

              	
                (151:159)
                  

              	
                This
                  is that portion of the transaction amount for the current transaction
                  that
                  is applied to the deferred amount. The data is right justified
                  and may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                End_Defer_Bal

              	
                Text

              	
                9

              	
                (160:168)
                  

              	
                REQUIRED.
                  This is the ending balance of the deferred amount after the current
                  transaction is processed. The data is right justified and may or
                  may not
                  have leading zeros. The data will have 2 decimal places which are
                  implied.
                  If the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number.

              
	 	 	 	 	 
	
                Net_Int_Exc_Short

              	
                Text

              	
                9

              	
                (169:177)
                  

              	
                Net
                  Simple Interest Excess / Shortfall is the difference between the
                  net
                  interest actually received by the servicer and the net interest
                  passed
                  through to the Investors with respect to current transaction (which
                  is not
                  a payment in full). The data is right justified and may or may
                  not have
                  leading zeros. The data will have 2 decimal places which are implied.
                  If
                  the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number. Note, if this field is populated, then
                  the
                  fields <Prepay_Int_Exc_Short> and <Net_Int_Advance> will be
                  zero-filled. Only one of these three fields should contain a
                  value.

              
	 	 	 	 	 
	
                Prepay_Int_Exc_Short

              	
                Text

              	
                9

              	
                (178:186)
                  

              	
                Prepayment
                  Interest Excess / Shortfall is the difference between the net interest
                  actually received by the servicer and the net interest passed through
                  to
                  the Investors with respect to current transaction (which is a payment
                  in
                  full). The data is right justified and may or may not have leading
                  zeros.
                  The data will have 2 decimal places which are implied. If the amount
                  is
                  negative, the negative sign must immediately precede the first
                  value in
                  the number. Note, if this field is populated, then the fields
                  <Net_Int_Exc_Short> and <Net_Int_Advance> will be zero-filled.
                  Only one of these three fields should contain a value.

              
	 	 	 	 	 
	
                Net_Int_Advance

              	
                Text

              	
                9

              	
                (187:195)
                  

              	
                Net
                  Interest Advance is the difference between the net interest actually
                  received by the servicer and the net interest passed through to
                  the
                  Investors for those loans on which no payment has be received during
                  the
                  reporting period. The data is right justified and may or may not
                  have
                  leading zeros. The data will have 2 decimal places which are implied.
                  If
                  the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number. Note, if this field is populated, then
                  the
                  fields <Prepay_Int_Exc_Short> and <Net_Int_Exc_Short> will be
                  zero-filled. Only one of these three fields should contain a
                  value.

              
	 	 	 	 	 
	
                Borr_Next_Due_Dt

              	
                Text

              	
                8

              	
                (196:203)

              	
                REQUIRED.
                  This is the borrower's next payment due date. The format should
                  be
                  YYYYMMDD.

              
	 	 	 	 	 
	
                Borr_Name

              	
                Text

              	
                30

              	
                (204:233)
                  

              	
                This
                  is the borrower's name. If possible, please supply as LastName
                  followed by
                  as much of the first name as will fit ("Smith, John"). The data
                  should be
                  left justified.

              
	 	 	 	 	 
	
                Pi_Pay_Amt

              	
                Text

              	
                9

              	
                (234:242)
                  

              	
                This
                  is the P&I constant payment required under the note. This amount may
                  or may not be the same as the amount reported in the <Trans_Amt>
                  field. The data is right justified and may or may not have leading
                  zeros.
                  The data will have 2 decimal places which are implied. If the amount
                  is
                  negative, the negative sign must immediately precede the first
                  value in
                  the number.

              
	 	 	 	 	 
	
                Gross_Note_Rate

              	
                Text

              	
                6

              	
                (243:248)
                  

              	
                This
                  is the current gross loan rate in effect for the current transaction.
                  The
                  data is right justified and may or may not have leading zeros.
                  The data
                  will have 4 decimal places which are implied.

              
	 	 	 	 	 
	
                Serv_Fee_Rate

              	
                Text

              	
                6

              	
                (249:254)
                  

              	
                This
                  is the servicer's fee rate, if fee is expressed as a rate rather
                  than as a
                  fixed amount. The data is right justified and may or may not have
                  leading
                  zeros. The data will have 4 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                Action_Code

              	
                Text

              	
                3

              	
                (255:257)

              	
                This
                  will be the servicer's reported Action Code. If the code is supplied
                  the
                  data should be left justified.

              
	 	 	 	 	 
	
                Reversal_Flag

              	
                Text

              	
                1

              	
                (258:258)

              	
                This
                  field will Indicate whether the transaction reported is a reversal.
                  "Y"
                  will indicate a reversal. Any other value indicates that the transaction
                  is not a reversal.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        6

      

      SERVICING
        ADVANCE SCHEDULE

      

      [LOAN
        NUMBER] [PRE-CUT-OFF
        DATE ADVANCE
        AMOUNT]

      

      (AVAILABLE
        UPON REQUEST)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        7

      

      SCHEDULED
        MORTGAGE LOANS AS OF THE CUT-OFF DATE

      

      (AVAILABLE
        UPON REQUEST)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]