Document:

Pledge and Security Agreement

    PLEDGE
      AND SECURITY AGREEMENT

     

    THIS
      PLEDGE AND SECURITY AGREEMENT is entered into as of June 29, 2006 by and between
      LIGHTING SCIENCE GROUP CORPORATION, a Delaware corporation (“Borrower”)
      and
      BANK OF TEXAS, N.A., a national banking association (“Bank”).
      Borrower and Bank agree as follows:

     

    Article
      One  

     

    Definitions

     

    1.1  Terms
      Defined in Code.
      Terms
      (whether or not capitalized) defined in the Code which are not otherwise defined
      in this Security Agreement are used herein as defined in the Code as in effect
      on the date hereof.

     

    1.2  Definitions
      of Certain Terms Used Herein.
      As used
      in this Security Agreement, the following terms shall have the following
      meanings:

     

    “Account
      Debtor”
means
      any Person who is or who may become obligated to Borrower under, with respect
      to, or on account of an Account.

     

    “Accounts”
mean
      any “account,” as such term is defined in Chapter 9 of the Code, now owned or
      hereafter acquired by Borrower, and, in any event, shall include, without
      limitation, each of the following, whether now owned or hereafter acquired
      by
      Borrower: (a) all rights of Borrower to payment for goods sold or leased or
      services rendered or the license of Intellectual Property, whether or not earned
      by performance, (b) all accounts receivable of Borrower, (c) all rights of
      Borrower to receive any payment of money or other form of consideration, (d)
      all
      security pledged, assigned, or granted to or held by Borrower to secure any
      of
      the foregoing, and (e) all guaranties of, or indemnifications with respect
      to,
      any of the foregoing.

     

    “Article”
means
      a
      numbered article of this Security Agreement, unless another document is
      specifically referenced.

     

    “Bank”
      includes Bank’s successors and assigns.

     

    “Borrower”
means
      Lighting Science Group Corporation, a Delaware corporation.

     

    “Code”
means
      the Uniform Commercial Code as in effect in the State of Texas, as the same
      has
      been or may be amended or revised from time to time, or, if so required with
      respect to any particular Collateral by mandatory provisions of applicable
      law,
      as in effect in the jurisdiction in which such Collateral is
      located.

     

    “Collateral”
means
      all personal property, including without limitation Accounts, Equipment,
      Inventory, and the Other Collateral wherever located, in which Borrower now
      has
      or hereafter acquires any right or interest, and the Proceeds and products
      thereof, together with all books and records, customer lists, credit files,
      computer files, programs, printouts and other computer materials and records
      related thereto.

     

    “Control”
shall
      have the meaning set forth in Chapter 8 and Chapter 9 of the Code.

     

    “Effective
      Date”
means
      the date of this Security Agreement.

     

    “Equipment”
means
      any “equipment,” as such term is defined in Chapter 9 of the Code, now owned or
      hereafter acquired by Borrower and, in any event, shall include, without
      limitation, all machinery, equipment, furnishings, fixtures and vehicles now
      owned or hereafter acquired by Borrower and any and all additions,
      substitutions, and replacements of any of the foregoing, wherever located,
      together with all attachments, components, parts, equipment, and accessories
      installed thereon or affixed thereto.

     

    “Event
      of Default”
has
      the
      meanings set forth in Section
      5.1.

     

    “Inventory”
means
      any “inventory,” as such term is defined in Chapter 9 of the Code, now owned or
      hereafter acquired by Borrower, and, in any event, shall include, without
      limitation, each of the following, whether now owned or hereafter acquired
      by
      Borrower: (a) all goods and other personal property of Borrower that are held
      for sale or lease or to be furnished under any contract of service, (b) all
      raw
      materials, work-in-process, finished goods, inventory, supplies, and materials
      of Borrower, and (c) all goods that have been returned to, repossessed by,
      or
      stopped in transit by Borrower.

     

    
      D-1450139.v2
“Indebtedness”
means
      all indebtedness, obligations and liabilities of Borrower to Bank of any kind
      or
      character, now existing or hereafter arising, including (a) whether direct,
      indirect, related, unrelated, fixed, contingent, liquidated, unliquidated,
      joint, several or joint and several, and regardless of whether such
      indebtedness, obligations and liabilities may, prior to their acquisition by
      Bank be or have been payable to or in favor of a third party and subsequently
      acquired by Bank (it being contemplated that Bank may make such acquisitions
      from third parties), including without limitation all indebtedness, obligations
      and liabilities of Borrower to Bank now existing or hereafter arising by note,
      draft, acceptance, guaranty, endorsement, letter of credit, assignment,
      purchase, overdraft, discount, indemnity agreement or otherwise, (b) all accrued
      but unpaid interest on any of the indebtedness described in (a) above, (c)
      all
      obligations of Borrower to Bank (both including monetary and non-monetary)
      under
      any documents evidencing, securing, governing and/or pertaining to all or any
      part of the indebtedness described in (a) and (b) above, (d) all costs and
      expenses incurred by Bank in connection with the collection and administration
      of all or any part of the indebtedness and obligations described in (a), (b)
      and
      (c) above or the protection or preservation of, or realization upon, the
      collateral security for all or any part of such indebtedness and obligations,
      including without limitation all reasonable attorneys’ fees, and (e) all
      renewals, extensions, modifications, increases, and rearrangements of the
      indebtedness and obligations described in (a), (b), (c) and (d)
      above.

     

    “Intellectual
      Property”
means
      all present and future copyrights, trademarks, trademark registrations and
      applications for registrations, trade names, corporate names, trade styles,
      service marks, logos, and other source and business identifying marks of
      Borrower, together with the goodwill associated therewith, all present and
      future patents and patent applications of Borrower and all renewals, extensions,
      and continuations thereof, any present and future written agreements of Borrower
      granting any right to use any copyright, trademark, trademark application or
      registration, patent, patent application or registration, and Borrower’s right
      to sue for past, present, or future infringements of the foregoing.

     

    “Lien”
means
      any lien, security interest, Tax lien, mechanic’s lien, materialman’s lien, or
      other encumbrance, whether arising by contract or under Law.

     

    “Loan
      Agreement”
means
      the Loan Agreement dated on or about the date hereof between Bank and Borrower,
      as such may be amended, replaced, renewed and extended from time to
      time.

     

    “Loan
      Documents”
means
      the Loan Agreement and all other documents which secure, guarantee, or otherwise
      relate to the Note, as such may be amended or replaced from time to
      time.

     

    “Note”
means
      collectively the Revolving Promissory Note of even date with this Security
      Agreement in the original principal amount of $2,000,000.00 executed by Borrower
      and payable to the order of Bank as such may be amended, increased, restated,
      renewed and extended from time to time.

     

    “Obligated
      Party”
means
      any party other than Borrower who secures, guarantees and/or is otherwise
      obligated to pay all or any portion of the Indebtedness.

     

    “Other
      Collateral”
means
      all other property of Borrower now owned or hereafter acquired, other than
      real
      estate, not included within the specifically defined terms of Accounts,
      Equipment, and Inventory including Chattel Paper, Instruments, Commercial Tort
      Claims, Deposit Accounts, Documents, Fixtures, General Intangibles, Health
      Care
      Insurance Receivables, Intellectual Property, Instruments, Financial Assets,
      Investment Property and Letter of Credit Rights. Certain items of the Other
      Collateral are more fully described in Schedule
      One
      attached.

     

    “Proceeds”
means
      any “proceeds,” as such term is defined in Chapter 9 of the Code and, in any
      event, shall include, but not be limited to, (a) any and all proceeds of any
      insurance, indemnity, warranty, or guaranty payable to Borrower from time to
      time with respect to any of the Collateral, (b) any and all payments (in any
      form whatsoever) made or due and payable to Borrower from time to time in
      connection with any requisition, confiscation, condemnation, seizure, or
      forfeiture of all or any part of the Collateral by any Tribunal (or any person
      acting under color of Tribunal), and (c) any and all other amounts from time
      to
      time paid or payable under or in connection with any of the
      Collateral.

     

    “Section”
means
      a
      numbered Section of this Security Agreement, unless another document is
      specifically referenced.

     

    “Security
      Agreement”
means
      this Pledge and Security Agreement and all amendments, replacements, renewals,
      and extensions to this Security Agreement.

     

    “Tribunal”
means
      any state, commonwealth, federal, foreign, territorial, or other court or
      governmental department, commission, board, bureau, agency, or
      instrumentality.

     

    The
      foregoing definitions shall be equally applicable to both the singular and
      plural forms of the defined terms.

     

    Article
      Two  

     

    Grant
      of Security Interest

     

    2.1  Security
      Interest.
      Borrower hereby pledges, assigns and grants to Bank a continuing security
      interest in all of Borrower’s right, title and interest in and to the Collateral
      to secure the prompt and complete payment and performance of the Indebtedness
      and the performance of Borrower’s obligations under the Loan
      Documents.

     

    2.2  Authorization
      to File Financing Statements.
      Borrower hereby irrevocably authorizes Bank at any time and from time to time
      to
      prepare and file one or more financing statements describing the Collateral
      as
      the Collateral exists on the effective date of this Security Agreement and,
      also, as the description and type of the Collateral may change in the
      future.

     

    Article
      Three  

     

    Representations
      and Warranties 

     

    Borrower
      represents and warrants to Bank that:

     

    3.1  Title,
      Authorization, Validity and Enforceability.
      Borrower has good and valid rights in and title to the Collateral, free and
      clear of all Liens except for Permitted Liens (as defined in the Loan
      Agreement), and has full power and authority to grant to Bank the security
      interest in such Collateral pursuant hereto. The execution and delivery by
      Borrower of this Security Agreement has been duly authorized by proper corporate
      proceedings, and this Security Agreement constitutes a legal, valid and binding
      obligation of Borrower and creates a security interest which is enforceable
      against Borrower in all now owned and hereafter acquired Collateral. When
      financing statements have been filed in the appropriate offices against
      Borrower, Bank will have a fully perfected first priority security interest
      in
      that Collateral in which a security interest may be perfected by filing, subject
      only to Permitted Liens (as defined in the Loan Agreement). 

     

    3.2  Conflicting
      Laws and Contracts.
      Neither
      the execution and delivery by Borrower of this Security Agreement, the creation
      and perfection of the security interest in the Collateral granted hereunder,
      nor
      compliance with the terms and provisions hereof will violate any law, rule,
      regulation, order, writ, judgment, injunction, decree or award binding on
      Borrower or Borrower’s articles or certificate of incorporation, bylaws,
      articles of organization or operating agreement or other charter documents,
      as
      the case may be, the provisions of any indenture, instrument or agreement to
      which Borrower is a party or is subject, or by which it, or its property, is
      bound, or conflict with or constitute a default thereunder, or result in the
      creation or imposition of any Lien pursuant to the terms of any such indenture,
      instrument or agreement (other than any Lien of Bank).

     

    3.3  Principal
      Location.
      Borrower’s mailing address and the location of its chief executive office are
      disclosed in Schedule Two.

     

    3.4  No
      Other Names.
      Borrower has not conducted business under any name except the name in which
      it
      has executed this Security Agreement.

     

    3.5  No
      Event of Default.
      No
      Event of Default exists.

     

    3.6  Accounts.
      Each
      Account represents the valid and legally binding indebtedness of a bona fide
      Account Debtor arising from the sale or lease by Borrower of goods or the
      rendition by Borrower of services and is not subject to contra accounts,
      setoffs, defenses or counterclaims by or available to account debtors obligated
      on the Accounts except as disclosed by Borrower to Bank from time to time in
      writing. The amount shown as to each Account on Borrower’s books is the true and
      undisputed amount owing and unpaid thereon, subject only to discounts,
      allowances, rebates, credits and adjustments to which the Account Debtor has
      a
      right and which have been disclosed to Bank in writing.

     

    3.7  Inventory.
      The
      security interest in Inventory shall continue through all stages of manufacture
      and shall, without further action, attach to the Accounts or other Proceeds
      resulting from the sale or other disposition thereof and to all such Inventory
      as may be returned to Borrower by its Account Debtors.

     

    Article
      Four  

     

    Affirmative
      and Negative Covenants

     

    From
      the
      Effective Date and thereafter until this Security Agreement is
      terminated:

     

    4.1  General.

     

    (a)  Defense
      of Title.
      Borrower will take any and all actions necessary to defend title to the
      Collateral against all persons and to defend the security interest of Bank
      in
      the Collateral and the priority thereof against any Lien, other than Permitted
      Liens (as defined in the Loan Agreement).

     

    (b)  Disposition
      of Collateral.
      Borrower will not sell, lease or otherwise dispose of the Collateral except
      (i)
      prior to the occurrence of an Event of Default, dispositions expressly permitted
      by the Loan Documents or otherwise by Bank, (ii) until such time as Bank
      accelerates the Indebtedness, as Borrower receives a notice from Bank
      instructing Borrower to cease such transactions, sales or leases of Inventory
      in
      the ordinary course of business, and (iii) until such time as Borrower receives
      a contrary notice from Bank after the occurrence of an Event of Default,
      proceeds of Inventory and Accounts collected in the ordinary course of
      business.

     

    (c)  Change
      in Location, Jurisdiction of Organization or Name.
      Borrower will not (i) change its name or taxpayer identification number, (ii)
      change its mailing address, or (iii) change its jurisdiction of organization,
      unless Borrower shall have given Bank not less than 30 days’ prior written
      notice thereof, and Bank shall have determined that such change will not
      adversely affect the validity, perfection or priority of Bank’s security
      interest in the Collateral.

     

    (d)  Other
      Financing Statements.
      Borrower will not sign or authorize the preparation and filing of any financing
      statement naming it as debtor covering all or any portion of the Collateral,
      except in favor of Bank or in connection with Permitted Liens.

     

    4.2  Accounts.

     

    (a)  Collection
      of Accounts.
      Except
      as otherwise provided in this Security Agreement and the Loan Agreement,
      Borrower will collect and enforce, at Borrower’s sole expense, all amounts due
      or hereafter due to Borrower under the Accounts.

     

    (b)  Verification
      of Accounts.
      Upon
      the occurrence of an Event of Default, Bank shall have the right, at any time
      or
      times hereafter, in its name or in the name of a nominee of Bank, to verify
      the
      validity, amount or any other matter relating to any Accounts, by mail,
      telephone, telegraph or otherwise.

     

    (c)  Appointment
      of Bank as Attorney-in-Fact.
      Borrower hereby irrevocably designates, makes, constitutes and appoints Bank
      (and all persons designated by Bank), exercisable after the occurrence of an
      Event of Default, as its true and lawful attorney-in-fact, and authorizes Bank,
      in Borrower’s or Bank’s name, to: (i) demand payment of Accounts; (ii) enforce
      payment of Accounts by legal proceedings or otherwise; (iii) exercise all of
      Borrower’s rights and remedies with respect to proceedings brought to collect an
      Account; (iv) sell or assign any Account upon such terms, for such amount and
      at
      such time or times as Bank deems advisable; (v) settle, adjust, compromise,
      extend or renew an Account; (vi) discharge and release any Account; (vii) take
      control in any manner of any item of payment or proceeds thereof; (viii)
      prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or
      other similar document against an Account Debtor; (ix) endorse Borrower’s name
      upon any items of payment or proceeds thereof and deposit the same in Bank’s
      account on account of the Indebtedness; (x) notify the post office authorities
      to change the address for delivery of Borrower’s mail to an address designated
      by Bank, have access to any lock box or postal box into which any of Borrower’s
      mail is deposited, and open and dispose of all mail addressed to Borrower,
      and
      (xi) do all acts and things which are necessary, in Bank’s sole discretion, to
      fulfill Borrower’s obligations under this Security Agreement. The preceding
      establishes a power of attorney coupled with an interest.

     

    (d)  Notice
      to Account Debtor.
      Bank
      may, in its sole discretion, at any time or times after an Event of Default
      has
      occurred, and without prior notice to Borrower, notify any or all Account
      Debtors that the Accounts have been assigned to Bank and that Bank has a
      security interest therein. After an Event of Default has occurred and is
      continuing, Bank may direct any or all Account Debtors to make all payments
      upon
      the Accounts directly to Bank. Bank will use its best efforts to furnish
      Borrower with a copy of such notice, but failure to do so will not have an
      adverse effect on Bank’s rights under this Security Agreement.

     

    4.3  Inventory
      and Equipment.

     

    (a)  Maintenance
      of Goods.
      Except
      as otherwise set forth in the Loan Agreement, Borrower will do all things
      necessary to maintain, preserve, protect and keep the Inventory and the
      Equipment in good repair and working and saleable condition. Borrower has the
      risk of loss with regard to the Inventory and Equipment.

     

    (b)  Safekeeping
      of Inventory; Inventory Covenants.
      Bank
      shall not be responsible for: (i) the safekeeping of the Inventory; (ii) any
      loss or damage thereto or destruction thereof occurring or arising in any manner
      or fashion from any cause; (iii) any diminution in the value of Inventory;
      or
      (iv) any act or default of any carrier, warehouseman, bailee or forwarding
      agency or any other Person in any way dealing with or handling the Inventory,
      except to the extent that Borrower incurs any loss, cost, claim or damage from
      any of the foregoing as a result of the gross negligence or willful misconduct
      of Bank. All risk of loss, damage, distribution or diminution in value of the
      Inventory shall, except as noted in the previous sentence, be borne by
      Borrower.

     

    4.4  Deposit
      Accounts.
      Schedule
      One
      correctly identifies and describes all Deposit Accounts (maintained with
      institutions other than Bank). Borrower is the direct and beneficial owner
      of
      each Deposit Account, free and clear of any Liens except in favor of Bank.
      Borrower maintains, or will, within thirty (30) days of the date hereof,
      maintain, all of its Deposit Accounts with Bank, except for domestic deposit
      accounts identified to Bank in writing in which not more than $25,000 in the
      aggregate is maintained. Borrower will provide Bank with thirty (30) days prior
      written notice before opening any international bank account and such notice
      will briefly describe the expected uses of such account and an estimate of
      the
      amount expected to be maintained in such account. Upon the request of Bank,
      with
      respect to Deposit Accounts with any financial institution other than Bank,
      Borrower will notify each such financial institution (other than Bank) in which
      it maintains a Deposit Account that constitutes Collateral of the existence
      of
      the Bank’s Lien thereon, and cause each such financial institution to
      acknowledge such Lien in a form reasonably acceptable to Bank.

     

    4.5  Performance
      by Bank.
      If
      Borrower fails to perform any agreement or obligation provided herein, Bank
      may
      itself perform, or cause performance of, such agreement or obligation, and
      the
      expenses of Bank incurred in connection therewith shall be a part of the
      Indebtedness, secured by the Collateral and payable by Borrower on
      demand.

     

    4.6  Further
      Assurances.
      At any
      time and from time to time, upon the reasonable request of Bank, and at the
      sole
      expense of Borrower, Borrower shall promptly execute and deliver all such
      further instruments and documents and take such further action as Bank may
      deem
      necessary or desirable to preserve and perfect its security interest in the
      Collateral and carry out the provisions and purposes of this Security Agreement,
      including, without limitation, (a) the preparation (and execution, if necessary)
      and filing of such financing statements as Bank may require and (b) the deposit
      of all certificates of title issuable with respect to any of the Collateral
      and
      noting thereon the security interest hereunder.

     

    Article
      Five  

     

    Default

     

    5.1  Events
      of Default.
      Each of
      the following constitutes an “Event
      of Default”
under
      this Security Agreement (subject to all applicable grace and/or notice and
      cure
      provisions):

     

    (a)  Failure
      to Pay Indebtedness.
      The
      failure, refusal or neglect of Borrower or any Obligated Party to make any
      payment of principal or interest on the Indebtedness, or any portion thereof,
      within
      five (5) days of the date the same shall become due and payable;
      or

     

    (b)  Performance
      of Covenants.
      The
      failure of Borrower or any Obligated Party to timely and properly observe,
      keep
      or perform any covenant, agreement, warranty or condition required herein
      (except Borrower’s failure to timely pay the Indebtedness), and such failure
      continues until the earlier to occur of either (i) thirty (30) days after an
      officer or responsible employee of the Borrower becomes aware of such failure
      or
      (ii) thirty (30) days after Bank has given Borrower written notice thereof;
      or

     

    (c)  Default
      Under Other Loan Documents.
      The
      occurrence of an Event of Default under any of the other Loan Documents;
      or

     

    (d)  False
      Representation.
      Any
      representation contained herein is false or misleading in any material respect
      when made; or

     

    (e)  Action
      by Other Lienholder.
      The
      holder of any lien or security interest on any of the assets of Borrower,
      including without limitation, the Collateral (without hereby implying the
      consent of Bank to the existence or creation of any such lien or security
      interest on the Collateral) securing Debt (as defined in the Loan Agreement)
      in
      excess of $10,000.00, declares a default thereunder or institutes foreclosure
      or
      other proceedings for the enforcement of its remedies thereunder.

     

    Article
      Six  

     

    Remedies

     

    6.1  Remedies
      Upon Default.
      If any
      Event of Default shall occur and be continuing, Bank may without notice declare
      the Indebtedness or any part thereof to be immediately due and payable, and
      the
      same shall thereupon become immediately due and payable, without notice, demand,
      presentment, notice of dishonor, notice of acceleration, notice of intent to
      accelerate, notice of intent to demand, protest, or other formalities of any
      kind, all of which are hereby expressly waived by the Borrower. If any Event
      of
      Default shall occur and be continuing, Bank may exercise all rights and remedies
      available to it in law or in equity, under the Loan Documents, or
      otherwise.

     

    6.2  Application
      of Proceeds.
      If any
      Event of Default shall have occurred and be continuing, Bank may at its
      discretion apply or use any cash held by Bank as Collateral, and any cash
      proceeds received by Bank in respect of any sale or other disposition of,
      collection from, or other realization upon, all or any part of the Collateral
      as
      follows in such order and manner as Bank may elect:

     

    (a)  to
      the
      repayment or reimbursement of the reasonable costs and expenses (including,
      without limitation, reasonable attorneys’ fees and expenses) incurred by Bank in
      connection with (i) the administration of the Loan Documents, (ii) the custody,
      preservation, use or operation of, or the sale of, collection from, or other
      realization upon, the Collateral, and (iii) the exercise or enforcement of
      any
      of the rights and remedies of Bank hereunder;

     

    (b)  To
      the
      payment or other satisfaction of any Liens upon the Collateral;

     

    (c)  To
      the
      satisfaction of the Indebtedness;

     

    (d)  To
      the
      payment of any other amounts required by applicable law; and

     

    (e)  By
      delivery to Borrower or any other party lawfully entitled to receive such cash
      or proceeds whether by direction of a court of competent jurisdiction or
      otherwise.

     

    6.3  Deficiency.
      In the
      event that the proceeds of any sale of, collection from, or other realization
      upon, all or any part of the Collateral by Bank are insufficient to pay all
      amounts to which Bank is legally entitled, Borrower and any Obligated Party
      shall be liable for the deficiency, together with interest thereon as provided
      in the Loan Documents.

     

    6.4  Non-Judicial
      Remedies.
      In
      granting to Bank the power to enforce its rights hereunder without prior
      judicial process or judicial hearing, Borrower expressly waives, renounces
      and
      knowingly relinquishes any legal right which might otherwise require Bank to
      enforce its rights by judicial process. Borrower recognizes and concedes that
      non-judicial remedies are consistent with the usage of trade, are responsive
      to
      commercial necessity and are the result of a bargain at arm’s length. Nothing
      herein is intended to prevent Bank or Borrower from resorting to judicial
      process at either party’s option.

     

    6.5  Other
      Recourse.
      Borrower waives any right to require Bank to proceed against any third party,
      exhaust any Collateral or other security for the Indebtedness, or to have any
      third party joined with Borrower in any suit arising out of the Indebtedness
      or
      any of the Loan Documents, or pursue any other remedy available to Bank.
      Borrower further waives any and all notice of acceptance of this Security
      Agreement. Borrower further waives any defense arising by reason of any
      disability or other defense of any third party or by reason of the cessation
      from any cause whatsoever of the liability of any third party. Until all of
      the
      Indebtedness shall have been paid in full, Borrower shall have no right of
      subrogation and Borrower waives the right to enforce any remedy which Bank
      has
      or may hereafter have against any third party, and waives any benefit of and
      any
      right to participate in any other security whatsoever now or hereafter held
      by
      Bank. Borrower authorizes Bank, and without notice or demand and without any
      reservation of rights against Borrower and without affecting Borrower’s
      liability hereunder or on the Indebtedness to (a) take or hold any other
      property of any type from any third party as security for the Indebtedness,
      and
      exchange, enforce, waive and release any or all of such other property, (b)
      apply such other property and direct the order or manner of sale thereof as
      Bank
      may in its discretion determine, (c) renew, extend, accelerate, modify,
      compromise, settle or release any of the Indebtedness or other security for
      the
      Indebtedness, (d) waive, enforce or modify any of the provisions of any of
      the
      Loan Documents executed by any third party, and (e) release or substitute any
      third party.

     

    6.6  Disclaimer
      of Warranties and Sales on Credit.
      In
      connection with any foreclosure sale of the Collateral, Bank may specifically
      disclaim any warranties of title or the like. This procedure will not be
      considered to adversely affect the commercial reasonableness of any sale of
      the
      Collateral. If Bank sells any of the Collateral upon credit, Borrower will
      be
      credited only with payments actually made by the purchaser, received by Bank
      and
      applied to the indebtedness of the purchaser. In the event the purchaser fails
      to pay for the Collateral, Bank may resell the Collateral and Borrower shall
      be
      credited with the proceeds of the sale.

     

    6.7  License.
      Bank is
      hereby granted a license or other right to use, following the occurrence of
      an
      Event of Default, without charge, Borrower’s labels, patents, copyrights, rights
      of use of any name, trade secrets, trade names, trademarks, service marks,
      customer lists and advertising matter, or any property of a similar nature,
      as
      it pertains to the Collateral, in completing production of, advertising for
      sale, and selling any Collateral, and Borrower’s rights under all licenses and
      all franchise agreement shall inure to Bank’s benefit.

     

    Article
      Seven  

     

    General
      Provisions

     

    7.1  Entire
      Agreement.
      THIS
      SECURITY AGREEMENT AND THE OTHER LOAN DOCUMENTS CONTAIN THE FINAL, ENTIRE
      AGREEMENT BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF
      AND
      THEREOF AND ALL PRIOR AGREEMENTS, WHETHER WRITTEN OR ORAL, RELATIVE HERETO
      AND
      THERETO WHICH ARE NOT CONTAINED HEREIN OR THEREIN ARE SUPERSEDED AND TERMINATED
      HEREBY, AND THIS SECURITY AND THE OTHER LOAN DOCUMENTS MAY NOT BE CONTRADICTED
      OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
      OR
      DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG
      THE PARTIES HERETO.

     

    7.2  Amendment.
      No
      modification, consent or amendment of any provision of this Security Agreement
      shall be valid or effective unless the same is in writing and signed by the
      party against whom it is sought to be enforced.

     

    7.3  Actions
      by Bank.
      The
      Lien and other rights of Bank hereunder shall not be impaired by (a) any
      renewal, extension, increase or modification with respect to the Indebtedness,
      (b) any surrender, compromise, release, renewal, extension, exchange or
      substitution which Bank may grant with respect to the Collateral, or (c) any
      release or indulgence granted to any endorser, Borrower or surety of the
      Indebtedness. The taking of additional security by Bank shall not release or
      impair the Lien or other rights of Bank hereunder or affect the obligations
      of
      Borrower hereunder.

     

    7.4  Waiver
      by Bank.
      Bank
      may waive any Event of Default without waiving any other prior or subsequent
      Event of Default. Bank may remedy any default without waiving the Event of
      Default remedied. Neither the failure by Bank to exercise, nor the delay by
      Bank
      in exercising, any right or remedy upon any Event of Default shall be construed
      as a waiver of such Event of Default or as a waiver of the right to exercise
      any
      such right or remedy at a later date. No single or partial exercise by Bank
      of
      any right or remedy hereunder shall exhaust the same or shall preclude any
      other
      or further exercise thereof, and every such right or remedy hereunder may be
      exercised at any time. No waiver of any provision hereof or consent to any
      departure by Borrower therefrom shall be effective unless the same shall be
      in
      writing and signed by Bank and then such waiver or consent shall be effective
      only in the specific instances, for the purpose for which given and to the
      extent therein specified. No notice to or demand on Borrower in any case shall
      of itself entitle Borrower to any other or further notice or demand in similar
      or other circumstances.

     

    7.5  Costs
      and Expenses.
      Upon
      demand by the Bank, Borrower shall pay to Bank the amount of any and all costs
      and expenses (including without limitation, reasonable attorneys’ fees and
      expenses), which Bank may incur in connection with (a) the transactions which
      give rise to the Loan Documents, (b) the preparation of this Security Agreement
      and the perfection and preservation of the security interests granted under
      the
      Loan Documents, (c) the custody, preservation, use or operation of, or the
      sale
      of, collection from, or other realization upon, the Collateral, (d) the exercise
      or enforcement of any of the rights of Bank under the Loan Documents, or (e)
      the
      failure by Borrower to perform or observe any of the provisions
      hereof.

     

    7.6  Severability.
      If any
      provision of this Security Agreement is held by a court of competent
      jurisdiction to be illegal, invalid or unenforceable under present or future
      laws, such provision shall be fully severable, shall not impair or invalidate
      the remainder of this Agreement and the effect thereof shall be confined to
      the
      provision held to be illegal, invalid or unenforceable.

     

    7.7  Notices.
      Unless
      otherwise expressly provided herein, all notices and other communications
      provided for hereunder shall be in writing (including by facsimile transmission)
      and mailed, faxed, or delivered, to the address or facsimile number specified
      for notices in the Loan Agreement and in the manner specified in the Loan
      Agreement.

     

    7.8  Binding
      Effect and Assignment.
      This
      Security Agreement (a) creates a continuing security interest in the Collateral,
      (b) shall be binding on Borrower and the heirs, executors, administrators,
      personal representatives, successors and assigns of Borrower, (c) shall be
      binding on all parties who/which become bound as Borrower under this Agreement,
      and (d) shall inure to the benefit of Bank and its successors and assigns.
      Without limiting the generality of the foregoing, Bank may pledge, assign or
      otherwise transfer the Indebtedness and its rights under this Security Agreement
      and any of the other Loan Documents to any other party. Borrower’s rights and
      obligations hereunder may not be assigned or otherwise transferred without
      the
      prior written consent of Bank.

     

    7.9  Termination.
      It is
      contemplated by the parties hereto that from time to time there may be no
      outstanding Indebtedness, but notwithstanding such occurrences, this Security
      Agreement shall remain valid and shall be in full force and effect as to
      subsequent outstanding Indebtedness. Upon (a) the satisfaction in full of the
      Indebtedness, (b) the termination or expiration of any commitment of Bank to
      extend credit to Borrower, (c) written request for the termination hereof
      delivered by Borrower to Bank, and (d) written release or termination delivered
      by Bank to Borrower, this Security Agreement and the security interests created
      hereby shall terminate. Upon termination of this Security Agreement and
      Borrower’s written request, Bank will, at Borrower’s sole cost and expense,
      return and/or release to Borrower such of the Collateral as shall not have
      been
      sold or otherwise disposed of or applied pursuant to the terms hereof and
      execute and deliver to Borrower such documents as Borrower shall reasonably
      request to evidence such termination.

     

    7.10  Cumulative
      Rights.
      All
      rights and remedies of Bank hereunder are cumulative of each other and of every
      other right or remedy which Bank may otherwise have at law or in equity or
      under
      any of the other Loan Documents, and the exercise of one or more of such rights
      or remedies shall not prejudice or impair the concurrent or subsequent exercise
      of any other rights or remedies.

     

    7.11  Gender
      and Number.
      Within
      this Security Agreement, words of any gender shall be held and construed to
      include the other gender, and words in the singular number shall be held and
      construed to include the plural and words in the plural number shall be held
      and
      construed to include the singular, unless in each instance the context requires
      otherwise.

     

    7.12  Descriptive
      Headings.
      The
      headings in this Security Agreement are for convenience only and shall in no
      way
      enlarge, limit or define the scope or meaning of the various and several
      provisions hereof.

     

    7.13  GOVERNING
      LAW AND VENUE.
      THIS
      AGREEMENT IS BEING EXECUTED AND DELIVERED, AND IS INTENDED TO BE PERFORMED,
      IN
      DALLAS COUNTY, TEXAS AND THE LAWS (EXCLUDING CHOICE OF LAW PROVISIONS) OF SUCH
      STATE SHALL GOVERN THE VALIDITY, CONSTRUCTION ENFORCEMENT AND INTERPRETATION
      OF
      THIS AGREEMENT, EXCEPT TO THE EXTENT FEDERAL LAWS OTHERWISE GOVERN THE VALIDITY,
      CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF ALL OR ANY PART OF THIS
      AGREEMENT. ALL LEGAL ACTIONS RELATED TO THIS AGREEMENT SHALL BE BROUGHT IN
      THE
      APPROPRIATE COURT OF LAW LOCATED IN DALLAS COUNTY, TEXAS, TO THE EXCLUSION
      OF
      ALL OTHER VENUES; PROVIDED,
      HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
      PROPERTY MAY BE BROUGHT, AT BANK’S OPTION, IN THE COURTS OF ANY JURISDICTION
      WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER
      PROPERTY MAY BE FOUND.

     

    7.14  INDEMNITY.
      BORROWER HEREBY AGREES TO INDEMNIFY BANK AND ITS RESPECTIVE SUCCESSORS, ASSIGNS,
      AGENTS, ATTORNEYS, AND EMPLOYEES, FROM AND AGAINST ANY AND ALL LIABILITIES,
      DAMAGES, PENALTIES, SUITS, COSTS, AND EXPENSES OF ANY KIND AND NATURE
      (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION
      THEREFOR WHETHER OR NOT BANK IS A PARTY THERETO) IMPOSED ON, INCURRED BY OR
      ASSERTED AGAINST BANK OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, AGENTS,
      ATTORNEYS, AND EMPLOYEES, IN ANY WAY RELATING TO OR ARISING OUT OF THIS SECURITY
      AGREEMENT, OR THE MANUFACTURE, PURCHASE, ACCEPTANCE, REJECTION, OWNERSHIP,
      DELIVERY, LEASE, POSSESSION, USE, OPERATION, CONDITION, SALE, RETURN OR OTHER
      DISPOSITION OF ANY COLLATERAL (INCLUDING, WITHOUT LIMITATION, LATENT AND OTHER
      DEFECTS, WHETHER OR NOT DISCOVERABLE BY BANK OR BORROWER, AND ANY CLAIM FOR
      PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT); PROVIDED, HOWEVER, THE INDEMNITIES
      PROVIDED IN THIS SECTION 7.14 DO NOT EXTEND TO LOSSES, LIABILITIES, CLAIMS,
      OR
      DAMAGES CAUSED BY BANK’S GROSS NEGLIGENCE OR INTENTIONAL
      MISCONDUCT.

    

    [Remainder
      of page intentionally left blank.]

    

     

    IN
      WITNESS WHEREOF, the parties, intending to be legally bound hereby, have duly
      executed this Security Agreement as of the day and year first written
      above.

     

    BANK:

    

    BANK
      OF
      TEXAS, N.A.,

    a
      national banking association

    

    

    By:
       /s/Authorized
      Signatory   

    Name:
            

    Title:
            

    

    BORROWER:

    

    LIGHTING
      SCIENCE GROUP CORPORATION,

    a
      Delaware corporation

    

    

    By:
       /s/Stephen
      Hamilton    

    Name:
       Stephen
      Hamilton    

    Title:
       Chief
      Financial Officer   

    

    

    

     

    

     

    SCHEDULE
      ONE

     

    Certain
      Other Collateral

     

    Deposit
      Accounts Not Maintained With Bank:

    Name
      of Depository Institution  Style
      and Type of Account   Number
      of Account

    

    

    

    

    

     

    

     

    SCHEDULE
      TWO

     

    Locations

     

    Principal
      Place of Business and Mailing Address:

     

     

     

     

    Attention:Unassociated Document

    EXHIBIT
      4.1

     

    SERVICER
      APPOINTMENT, ASSUMPTION AND 

    AMENDMENT
      AGREEMENT

    

    THIS
      SERVICER APPOINTMENT, ASSUMPTION AND AMENDMENT AGREEMENT (this “Agreement”),
      dated as of June 30, 2006, is by and among Nomura Asset Acceptance Corporation,
      as depositor (the “Depositor”), Nomura Credit & Capital, Inc., as seller (in
      such capacity, the “Sponsor”), Wells Fargo Bank, National Association, as
      servicer (“Wells Fargo”), Wells Fargo Bank, National Association, as master
      servicer (the “Master Servicer”) and securities administrator (the “Securities
      Administrator”), and HSBC Bank USA, National Association, as trustee (the
“Trustee”).

    

    W
      I T N E
      S S E T H

    

    WHEREAS,
      the Depositor, the Sponsor, the Master Servicer, the Securities Administrator,
      GMAC Mortgage Corporation, as servicer (“GMACM”) and the Trustee entered into
      the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”),
      dated as of May 1, 2006, relating to Nomura Asset Acceptance Corporation,
      Mortgage Pass-Through Certificates, Series 2006-AF1;

    

    WHEREAS,
      pursuant to Section 7.06 of the Pooling and Servicing Agreement, the Sponsor
      has
      the right to terminate GMACM as Servicer of the Mortgage Loans set forth on
      Schedule 1 attached hereto (the “Mortgage Loans”) without cause upon the
      satisfaction of certain conditions set forth in the Pooling and Servicing
      Agreement;

    

    WHEREAS,
      the Depositor and the Sponsor desire to amend certain provisions of the Pooling
      and Servicing Agreement to better effectuate the replacement of GMACM as the
      Servicer thereunder with respect to the Mortgage Loans; 

    

    WHEREAS,
      Section 11.01 of the Pooling and Servicing Agreement provides that the Pooling
      and Servicing Agreement may be amended from time to time by the parties thereto,
      without the consent of any of the Certificateholders to cure any ambiguity,
      to
      correct or supplement any provisions therein, to change the manner in which
      the
      Distribution Account maintained by the Securities Administrator or the Custodial
      Account maintained by the Servicer is maintained or to make such other
      provisions with respect to matters or questions arising under the Agreement
      as
      shall not be inconsistent with any other provisions therein if such action
      shall
      not, as evidenced by an Opinion of Counsel, 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; provided further
      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
      nor any letter from the Rating Agencies stating that such amendment would not
      result in the downgrading or withdrawal of the respective ratings then assigned
      to the Certificates shall be required if such amendment is to effect a transfer
      of servicing pursuant to Section 7.06(a) of the Agreement to a servicer
      satisfying the Minimum Servicing Requirements;

    

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

    

    SECTION
      1. Defined Terms.

    

    For
      purposes of this Agreement, unless the context clearly requires otherwise,
      all
      capitalized terms which are used but not otherwise defined herein shall have
      the
      respective meanings assigned to such terms in the Pooling and Servicing
      Agreement.

    

    SECTION
      2. Appointment of Servicer.

    

    (a) The
      Sponsor hereby proposes that Wells Fargo be appointed as the Servicer under
      the
      Pooling and Servicing Agreement with respect to the Mortgage Loans and, subject
      to the satisfaction of the conditions precedent set forth in Section 5 of this
      Agreement, the Sponsor will provide written notification to GMACM of its
      termination as Servicer under the Pooling and Servicing Agreement with respect
      to the Mortgage Loans to be effective as of the close of business on June 30,
      2006 (the “Termination Date”).

    

    (b) In
      connection with the appointment of Wells Fargo as the Servicer under the Pooling
      and Servicing Agreement, on the Termination Date, the Sponsor shall cause Wells
      Fargo to reimburse GMACM for all outstanding Advances and Servicing Advances
      due
      and owing to GMACM under the Pooling and Servicing Agreement in connection
      with
      GMACM’s servicing and administration of the Mortgage Loans prior to the
      Termination Date.

    

    (c) The
      Master Servicer, subject to the satisfaction of the conditions precedent set
      forth in Section 5 of this Agreement, consents to the appointment of Wells
      Fargo
      as a Servicer under the Pooling and Servicing Agreement and hereby designates
      Wells Fargo as the Servicer of the Mortgage Loans from and after the Termination
      Date.

    

    (d) Wells
      Fargo hereby (i) represents and warrants that it meets all requirements of
      a
      servicer set forth in Section 8.02 of the Pooling and Servicing Agreement,
      (ii)
      accepts the appointment as the Servicer of the Mortgage Loans under the Pooling
      and Servicing Agreement, (iii) assumes and agrees to discharge the due and
      punctual performance and observance of each covenant and condition to be
      performed and observed by a servicer under the Pooling and Servicing Agreement,
      as amended hereby, and (iv) assumes and agrees to be bound by all terms and
      conditions of the Pooling and Servicing Agreement, as amended
      hereby.

    

    (e)  On
      the
      Termination Date, each account that, pursuant to the terms of the Pooling and
      Servicing Agreement, is required to be established and maintained by GMACM
      with
      respect to the Mortgage Loans shall be moved to and maintained by Wells Fargo
      at
      Wells Fargo. This Agreement shall be deemed to satisfy any and all requirements
      in the Pooling and Servicing Agreement for notice of change in any such
      account.

    

    SECTION
      3. Amendments to Pooling and Servicing Agreement.

    

    (a) Article
      1
      of the Pooling and Servicing Agreement is hereby amended by adding the following
      definition in alphabetical order:

    

    “Wells
      Fargo:
      Wells
      Fargo Bank, National Association, acting in its capacity as the
      Servicer.”

    

    (b) The
      definition of Servicer in Article 1 of the Pooling and Servicing Agreement
      is
      hereby amended by replacing “GMAC Mortgage Corporation” with “Wells Fargo Bank,
      National Association.”

    

    (c)  The
      following representations and warranties are hereby made by Wells Fargo to
      the
      Sponsor, the Depositor, the Master Servicer, the Securities Administrator and
      the Trustee as of the date hereof and such representations and warranties shall
      replace the representations and warranties of GMACM set forth in Section 2.03(a)
      of the Pooling and Servicing Agreement:

    

    (i) It
      is
      duly organized and is validly existing and in good standing under the laws
      of
      the United States and is duly authorized and qualified to transact any and
      all
      business contemplated by this Agreement to be conducted by it in any state
      in
      which a Mortgaged Property is located or is otherwise not required under
      applicable law to effect such qualification and, in any event, is in compliance
      with the doing business laws of any such state, to the extent necessary to
      ensure its ability to service the Mortgage Loans in accordance with the terms
      of
      this Agreement and to perform any of its other obligations under this Agreement
      in accordance with the terms hereof.

    

    (ii) It
      has
      the full corporate power and authority to service each Mortgage Loan, and to
      execute, deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      corporate action on its part the execution, delivery and performance of this
      Agreement; and this Agreement, assuming the due authorization, execution and
      delivery hereof by the other parties hereto, constitutes its legal, valid and
      binding obligation, enforceable against it in accordance with its terms, except
      that (a) the enforceability hereof may be limited by the effect of insolvency,
      liquidation, conservatorship and other similar laws administered by the Federal
      Deposit Insurance Corporation affecting the enforcement of contract obligations
      of insured banks and (b) the remedy of specific performance and injunctive
      and
      other forms of equitable relief may be subject to equitable defenses and to
      the
      discretion of the court before which any proceeding therefor may be brought
      and
      further subject to public policy with respect to indemnity and contribution
      under applicable securities law.

    

    (iii) The
      execution and delivery of this Agreement by it, the servicing of the Mortgage
      Loans by it under this Agreement, the consummation of any other of the
      transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in its ordinary course of business and
      will
      not (A) result in a material breach of any term or provision of its charter
      or
      by-laws or (B) materially conflict with, result in a material breach, violation
      or acceleration of, or result in a material default under, the terms of any
      other material agreement or instrument to which it is a party or by which it
      may
      be bound, or (C) constitute a material violation of any statute, order or
      regulation applicable to it of any court, regulatory body, administrative agency
      or governmental body having jurisdiction over it; and it is not in breach or
      violation of any material indenture or other material agreement or instrument,
      or in violation of any statute, order or regulation of any court, regulatory
      body, administrative agency or governmental body having jurisdiction over it
      which breach or violation may materially impair its ability to perform or meet
      any of its obligations under this Agreement.

    

    (iv) It
      is an
      approved servicer of conventional mortgage loans for Fannie Mae or Freddie
      Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

    

    (v) No
      litigation is pending or, to the best of its knowledge, threatened in writing,
      against it that would materially and adversely affect the execution, delivery
      or
      enforceability of this Agreement or its ability to service the Mortgage Loans
      or
      to perform any of its other obligations under this Agreement in accordance
      with
      the terms hereof.

    

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

    

    (vii) Wells
      Fargo has accurately and fully reported, and will continue to accurately and
      fully report, its borrower credit files to each of the credit repositories
      in a
      timely manner materially in accordance with the Fair Credit Reporting Act and
      its implementing legislation.

    

    (viii) 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 Mortgage Loans that are registered with MERS.

    

    (ix) Wells
      Fargo will not waive any Prepayment Charge with respect to a Mortgage Loan
      unless it is waived in accordance with the standard set forth in Section
      3.01.

    

    (d)  With
      respect to the Mortgage Loans, from and after the Termination Date, any and
      all
      references to the representations and warranties of GMACM in the Pooling and
      Servicing Agreement shall, and shall be deemed to be, references to the
      representations and warranties of Wells Fargo set forth in clause (a)
      above.

    

    (e)  Section
      3.13(a) is hereby amended by deleting such paragraph in its entirety and
      replacing it with the following:

    

    “The
      Master Servicer and the Securities Administrator shall deliver or otherwise
      make
      available (and shall cause each Servicing Function Participant engaged by it
      to
      deliver) to the Depositor and the Securities Administrator on or before March
      15
      of each year, and the Servicer shall deliver or otherwise make available (and
      shall cause each Servicing Function Participant engaged by it to deliver) to
      the
      Depositor and the Securities Administrator on or before March 1 of each year
      (but in no instance later than March 10 of each year), in each case 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 Servicing Function Participant’s performance under
      this Agreement, or such other applicable agreement in the case of a 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 a Servicing Function Participant (other than the
      Servicer, the Master Servicer or the Securities Administrator), 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.”

     

    (f)  Section
      3.14(a) of the Pooling and Servicing Agreement is hereby amended by deleting
      the
      section in its entirety and replacing it with the following:

    

    “By
      March
      15 of each year, the Master Servicer and the Securities Administrator, and
      by
      March 1 (but in no event later than March 10) of each year, the Servicer, each
      commencing in March 2007, at its own expense and pursuant to Item 1122(a) of
      Regulation AB, shall furnish or otherwise make available, and shall cause any
      Servicing Function Participant engaged by it to furnish, which in each case
      shall not be an expense of the Trust Fund, 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 for the period consisting of
      the
      prior calendar year, 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 for the period
      consisting of the prior calendar year.”

    

    (g)  Section
      7.06(a) of the Pooling and Servicing Agreement is hereby amended by deleting
      the
      section in its entirety and replacing it with the following:

    

    “(a)
      If
      at any time, the Sponsor acquires from Wells Fargo Bank, N.A. the rights to
      service any of the Mortgage Loans, then Wells Fargo Bank, N.A. shall continue
      to
      service the related Mortgage Loans as the Servicer hereunder. Upon Sponsor
      acquiring the Servicing Rights, the Sponsor may, at its option, terminate the
      servicing responsibilities of Wells Fargo Bank, N,A., as Servicer hereunder
      with
      respect to any such Mortgage Loans without cause. No such termination shall
      become effective unless and until a successor to Wells Fargo Bank, N.A. 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 to Wells Fargo Bank, N.A. meets the
      eligibility criteria contained in Section 8.02, (ii) the Trustee shall have
      consented to such appointment, (iii) the Rating Agencies have been notified
      in
      writing of such appointment and such successor servicer meets the Minimum
      Servicing Requirements, (iv) such successor has agreed to assume the obligations
      of Wells Fargo Bank, N.A. hereunder to the extent of the related Mortgage Loans
      and (v) all amounts reimbursable to Wells Fargo Bank, N.A. pursuant to the
      terms
      of this Agreement shall have been paid to Wells Fargo Bank, N.A. by the
      successor appointed pursuant to the terms of this Section 7.06 or by the Sponsor
      including without limitation, all unreimbursed Advances and Servicing Advances
      made by Wells Fargo Bank, N.A. and all out-of-pocket expenses of Wells Fargo
      Bank, N.A. 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 and the agreement executed by such successor to the Trustee
      and
      the Master Servicer.”

    

    (h)
       Section
      7.06(b) of the Pooling and Servicing Agreement is hereby amended by deleting
      the
      section in its entirety.

    

    SECTION
      4. Representations and Warranties of the Depositor and Sponsor.

    

    (a) The
      following representations and warranties are hereby made by the Depositor to
      the
      Sponsor, Wells Fargo, the Master Servicer, the Securities Administrator and
      the
      Trustee as of the date hereof:

    

    (i) The
      Depositor is duly organized and is validly existing as a corporation in good
      standing under the laws of the State of Delaware and has full power and
      authority (corporate and other) necessary to own or hold its properties and
      to
      conduct its business as now conducted by it and to enter into and perform its
      obligations under this Agreement. 

    

    (ii) The
      Depositor has the full corporate power and authority to execute, deliver and
      perform, and to enter into and consummate the transactions contemplated by
      this
      Agreement and has duly authorized, by all necessary corporate action on its
      part, the execution, delivery and performance of this Agreement; and this
      Agreement, assuming the due authorization, execution and delivery hereof by
      the
      other parties hereto, constitutes its legal, valid and binding obligation of
      the
      Depositor, enforceable against the Depositor in accordance with its terms,
      subject, as to enforceability, to (a) bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally and
      (b) the remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the discretion
      of
      the court before which any proceeding therefor may be brought and further
      subject to public policy with respect to indemnity and contribution under
      applicable securities law.

    

    (iii) The
      execution and delivery of this Agreement by the Depositor, the consummation
      of
      any of the transactions contemplated by this Agreement, and the fulfillment
      of
      or compliance with the terms hereof are in the ordinary course of business
      of
      the Depositor and will not (A) result in a material breach of any term or
      provision of the charter or by-laws of the Depositor or (B) materially conflict
      with, result in a material breach, violation or acceleration of, or result
      in a
      material default under, the terms of any other material agreement or instrument
      to which it is a party or by which it may be bound, or (C) constitute a material
      violation of any statute, order or regulation applicable to it of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over the Depositor; and the Depositor is not in breach or violation of any
      material indenture or other material agreement or instrument, or in violation
      of
      any statute, order or regulation of any court, regulatory body, administrative
      agency or governmental body having jurisdiction over it which breach or
      violation may materially impair its ability to perform or meet any of its
      obligations under this Agreement.

    

    (iv) No
      litigation is pending or, to the best of its knowledge, threatened, against
      the
      Depositor that would materially and adversely affect the execution, delivery
      or
      enforceability of this Agreement or the ability of the Depositor to perform
      any
      of its obligations under this Agreement in accordance with the terms
      hereof.

    

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

    

    (b)
      The
      following representations and warranties are hereby made by the Sponsor to
      the
      Depositor, Wells Fargo, the Master Servicer, the Securities Administrator and
      the Trustee as of the date hereof:

    

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

    

    (ii) The
      Sponsor has the full corporate power and authority and to execute, deliver
      and
      perform, and to enter into and consummate the transactions contemplated by
      this
      Agreement and has duly authorized by all necessary corporate action on its
      part
      the execution, delivery and performance of this Agreement; and this Agreement,
      assuming the due authorization, execution and delivery hereof by the other
      parties hereto, constitutes its legal, valid and binding obligation of the
      Sponsor, enforceable against the Sponsor in accordance with its terms, except
      that (a) the enforceability hereof may be limited by bankruptcy, insolvency,
      moratorium, receivership and other similar laws relating to creditors’ rights
      generally and (b) the remedy of specific performance and injunctive and other
      forms of equitable relief may be subject to equitable defenses and to the
      discretion of the court before which any proceeding therefor may be brought
      and
      further subject to public policy with respect to indemnity and contribution
      under applicable securities law.

    

    (iii) The
      execution and delivery of this Agreement by the Sponsor, the consummation of
      any
      other of the transactions contemplated by this Agreement, and the fulfillment
      of
      or compliance with the terms hereof are in its ordinary course of business
      of
      the Sponsor and will not (A) result in a material breach of any term or
      provision of its charter or by-laws of the Sponsor or (B) materially conflict
      with, result in a material breach, violation or acceleration of, or result
      in a
      material default under, the terms of any other material agreement or instrument
      to which it is a party or by which it may be bound, or (C) constitute a material
      violation of any statute, order or regulation applicable to the Sponsor of
      any
      court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Sponsor; and the Sponsor is not in breach or violation
      of
      any material indenture or other material agreement or instrument, or in
      violation of any statute, order or regulation of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it which
      breach or violation may materially impair its ability to perform or meet any
      of
      its obligations under this Agreement.

    

    (iv) No
      litigation is pending or, to the best of the Sponsor’s knowledge, threatened,
      against the Sponsor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or its ability to perform any
      of
      its obligations under this Agreement in accordance with the terms
      hereof.

    

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

    

    (vi) The
      Sponsor has the right to terminate GMACM as the Servicer of the Mortgage Loans
      pursuant to Section 7.06 of the Pooling and Servicing Agreement and such
      termination shall be exercised in accordance with the terms and conditions
      of
      the Pooling and Servicing Agreement and all applicable law.

    

    SECTION
      5. Conditions Precedent.

    

    The
      transactions contemplated by this Agreement shall be conditioned upon the
      satisfaction of the following conditions precedent:

    

    (i) each
      of
      the Sponsor and the Master Servicer shall have executed this Agreement
      evidencing its consent to the appointment of Wells Fargo as the Servicer of
      the
      Mortgage Loans under the Pooling and Servicing Agreement;

    

    (ii) Wells
      Fargo shall have executed this Agreement evidencing its acceptance of its
      appointment as the Servicer of the Mortgage Loans under the Pooling and
      Servicing Agreement and its agreement to be bound by the terms of this Agreement
      and the Pooling and Servicing Agreement;

    

    (iii) the
      Sponsor shall have notified GMACM of its decision to terminate GMACM as the
      Servicer of the Mortgage Loans under the Pooling and Servicing Agreement;
      and

    

    (iv) each
      Rating Agency has been notified in writing of the appointment of Wells Fargo
      as
      Servicer.

    

    SECTION
      6. Effectiveness of this Agreement.

    

    Upon
      execution of this Agreement, the Pooling and Servicing Agreement shall be,
      and
      be deemed to be, modified and amended in accordance herewith and the respective
      rights, limitations, obligations, duties, liabilities and immunities of the
      Depositor, the Sponsor, Wells Fargo, the Master Servicer, the Securities
      Administrator and the Trustee shall hereafter be determined, exercised and
      enforced subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of this Agreement shall be deemed to be part of the
      terms and conditions of the Pooling and Servicing Agreement for any and all
      purposes. Except as modified and expressly amended by this Agreement, the
      Pooling and Servicing Agreement is in all respects ratified and confirmed,
      and
      all the terms, provisions and conditions thereof shall be and remain in full
      force and effect.

    

    SECTION
      7. Binding Effect.

    

    The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto, and all such
      provisions shall inure to the benefit of the Depositor, the Sponsor, Wells
      Fargo, the Master Servicer, the Securities Administrator and the
      Trustee.

    

    SECTION
      8. Governing Law.

    

    This
      Agreement shall be construed in accordance with the substantive laws of the
      State of New York (without regard to conflict of law principles) and the
      obligations, rights and remedies of the parties hereto shall be determined
      in
      accordance with such laws.

    

    SECTION
      9. Severability of Provisions.

    

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

    

    SECTION
      10. Section Headings.

    

    The
      section headings herein are for convenience of reference only, and shall not
      limit or otherwise affect the meaning hereof.

    

    SECTION
      11. Counterparts.

    

    This
      Agreement may be executed in several counterparts, each of which shall be an
      original and all of which shall constitute but one and the same
      instrument.

    

    [signature
      pages follow]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the Depositor, the Sponsor, Wells Fargo, the Securities
      Administrator and the Trustee have caused their names to be signed hereto by
      their respective officers thereunto duly authorized as of the day and year
      first
      above written.

    
      	 	 	 	 	 	 	 	
              NOMURA
                ASSET ACCEPTANCE CORPORATION,

              as
                Depositor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                John P. Graham

            
	 	 	 	 	 	 	 	
              Name:

            	
              John
                P. Graham

            
	 	 	 	 	 	 	 	
              Title:

            	
              Managing
                Director

            

    

    

    
      	 	 	 	 	 	 	 	
              NOMURA
                CREDIT & CAPITAL, INC.,

              as
                Sponsor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Jeane D. Leschak

            
	 	 	 	 	 	 	 	
              Name:

            	
              Jeane
                D. Leschak

            
	 	 	 	 	 	 	 	
              Title:

            	
              Vice
                President

            

    

    

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, NATIONAL

              ASSOCIATION,

              as
                a Servicer

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Laurie McGoogan

            
	 	 	 	 	 	 	 	
              Name:

            	
              Laurie
                McGoogan

            
	 	 	 	 	 	 	 	
              Title:

            	
              Vice
                President

            

    

    

    
      	 	 	 	 	 	 	 	
              WELLS
                FARGO BANK, NATIONAL

              ASSOCIATION,

              as
                Master Servicer and Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Amy Doyle

            
	 	 	 	 	 	 	 	
              Name:

            	
              Amy
                Doyle

            
	 	 	 	 	 	 	 	
              Title:

            	
              Vice
                President

            

    

    

    
      	 	 	 	 	 	 	 	
              HSBC
                BANK USA, NATIONAL

              ASSOCIATION

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Elena Zheng

            
	 	 	 	 	 	 	 	
              Name:

            	
              Elena
                Zheng

            
	 	 	 	 	 	 	 	
              Title:

            	
              Assistant
                Vice President

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    SCHEDULE
      1

    

    SCHEDULE
      OF MORTGAGE LOANS

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