Document:

GREENWICH
      CAPITAL ACCEPTANCE, INC.,

    Depositor

    

    THORNBURG
      MORTGAGE HOME LOANS, INC.,

    Seller

    

    WELLS
      FARGO BANK, N.A.,

    Master
      Servicer and

    Securities
      Administrator

    

    and

    

    LASALLE
      BANK NATIONAL ASSOCIATION,

    Trustee
      and Custodian

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of February 1, 2008

     

    __________________________________

     

    Thornburg
      Mortgage Securities Trust 2008-1

     

    Mortgage
      Loan Pass-Through Certificates, Series 2008-1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
      of Contents

     

    Page

    
      	
              ARTICLE
                I DEFINITIONS; DECLARATION OF TRUST

            	
              7

            
	 	 
	
              SECTION
                1.01. Defined Terms.

            	
              7

            
	
              SECTION
                1.02. Accounting.

            	
              49

            
	 	 
	
              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                CERTIFICATES

            	
              49

            
	 	 
	
              SECTION
                2.01. Conveyance of Mortgage Loans.

            	
              49

            
	
              SECTION
                2.02. Acceptance by Trustee.

            	
              53

            
	
              SECTION
                2.03. Repurchase or Substitution of Mortgage Loans by the
                Seller.

            	
              54

            
	
              SECTION
                2.04. Representations and Warranties of the Seller with Respect to
                the
                Mortgage Loans.

            	
              57

            
	
              SECTION
                2.05. [Reserved].

            	
              58

            
	
              SECTION
                2.06. Representations and Warranties of the Depositor.

            	
              58

            
	
              SECTION
                2.07. Issuance of Certificates.

            	
              60

            
	
              SECTION
                2.08. Representations and Warranties of the Seller.

            	
              60

            
	
              SECTION
                2.09. Covenants of the Seller.

            	
              61

            
	 	 
	
              ARTICLE
                III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

            	
              62

            
	 	 
	
              SECTION
                3.01. Master Servicer to Service and Administer the Mortgage
                Loans.

            	
              62

            
	
              SECTION
                3.02. REMIC-Related Covenants.

            	
              63

            
	
              SECTION
                3.03. Monitoring of Servicers.

            	
              63

            
	
              SECTION
                3.04. Fidelity Bond.

            	
              65

            
	
              SECTION
                3.05. Power to Act; Procedures.

            	
              65

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

            	
              66

            
	
              SECTION
                3.07. Release of Mortgage Files.

            	
              67

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

            	
              68

            
	
              SECTION
                3.09. Standard Hazard Insurance and Flood Insurance
                Policies.

            	
              68

            
	
              SECTION
                3.10. Presentment of Claims and Collection of Proceeds.

            	
              69

            
	
              SECTION
                3.11. Maintenance of the Primary Insurance Policies.

            	
              69

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

            	
              70

            
	
              SECTION
                3.13. Realization Upon Defaulted Mortgage Loans.

            	
              70

            
	
              SECTION
                3.14. Additional Compensation to the Master Servicer.

            	
              70

            
	
              SECTION
                3.15. REO Property.

            	
              71

            
	
              SECTION
                3.16. Assessments of Compliance and Attestation Reports.

            	
              71

            
	
              SECTION
                3.17. Annual Compliance Statement.

            	
              74

            
	
              SECTION
                3.18. Sarbanes-Oxley Certification.

            	
              75

            
	
              SECTION
                3.19. Reports Filed with Securities and Exchange
                Commission.

            	
              75

            
	
              SECTION
                3.20. Additional Information.

            	
              81

            
	
              SECTION
                3.21. Intention of the Parties and Interpretation.

            	
              81

            
	
              SECTION
                3.22. Indemnification.

            	
              81

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

     

    
      	
              SECTION
                3.23. Amendments to Master Servicing Guide and Correspondent Sellers
                Guide.

            	
              82

            
	
              SECTION
                3.24. UCC.

            	
              83

            
	
              SECTION
                3.25. Optional and Required Purchases of Certain Mortgage
                Loans.

            	
              83

            
	
              SECTION
                3.26. Realization upon Troubled Mortgage Loans.

            	
              84

            
	
              SECTION
                3.27. Closing Certificate and Opinion.

            	
              84

            
	
              SECTION
                3.28. Liabilities of the Master Servicer.

            	
              84

            
	
              SECTION
                3.29. Merger or Consolidation of the Master Servicer.

            	
              84

            
	
              SECTION
                3.30. Indemnification of the Trustee, the Seller, the Master Servicer
                and
                the Securities Administrator.

            	
              85

            
	
              SECTION
                3.31. Limitations on Liability of the Master Servicer and Others;
                Indemnification of Trustee and Others.

            	
              86

            
	
              SECTION
                3.32. Master Servicer Not to Resign.

            	
              87

            
	
              SECTION
                3.33. Successor Master Servicer.

            	
              87

            
	
              SECTION
                3.34. Sale and Assignment of Master Servicing.

            	
              88

            
	
              SECTION
                3.35. Reporting Requirements of the Commission.

            	
              88

            
	 	 
	
              ARTICLE
                IV ACCOUNTS

            	
              88

            
	 	 
	
              SECTION
                4.01. Servicing Accounts.

            	
              88

            
	
              SECTION
                4.02. Distribution Account.

            	
              90

            
	
              SECTION
                4.03. Permitted Withdrawals and Transfers from the Distribution
                Account.

            	
              92

            
	 	 
	
              ARTICLE
                V FLOW OF FUNDS

            	
              94

            
	 	 
	
              SECTION
                5.01. Distributions.

            	
              94

            
	
              SECTION
                5.02. [Reserved]

            	
              99

            
	
              SECTION
                5.03. Allocation of Realized Losses.

            	
              99

            
	
              SECTION
                5.04. Statements.

            	
              101

            
	
              SECTION
                5.05. Remittance Reports; Advances.

            	
              104

            
	
              SECTION
                5.06. Compensating Interest Payments.

            	
              105

            
	
              SECTION
                5.07. [Reserved].

            	
              105

            
	
              SECTION
                5.08. [Reserved].

            	
              105

            
	
              SECTION
                5.09. [Reserved].

            	
              105

            
	
              SECTION
                5.10. Recoveries.

            	
              105

            
	 	 
	
              ARTICLE
                VI THE CERTIFICATES

            	
              106

            
	 	 
	
              SECTION
                6.01. The Certificates.

            	
              106

            
	
              SECTION
                6.02. Registration of Transfer and Exchange of
                Certificates.

            	
              107

            
	
              SECTION
                6.03. Mutilated, Destroyed, Lost or Stolen Certificates.

            	
              113

            
	
              SECTION
                6.04. Persons Deemed Owners.

            	
              113

            
	
              SECTION
                6.05. Appointment of Paying Agent.

            	
              114

            
	
              SECTION
                6.06. Optional Purchase of Certificates.

            	
              114

            
	 	 
	
              ARTICLE
                VII DEFAULT

            	
              116

            
	 	 
	
              SECTION
                7.01. Event of Default.

            	
              116

            
	
              SECTION
                7.02. Trustee to Act.

            	
              118

            
	
              SECTION
                7.03. Waiver of Event of Default.

            	
              119

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                7.04. Notification to Certificateholders.

            	
              120

            
	 	 
	
              ARTICLE
                VIII THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            	
              120

            
	 	 
	
              SECTION
                8.01. Duties of Trustee and Securities Administrator.

            	
              120

            
	
              SECTION
                8.02. Certain Matters Affecting the Trustee and the Securities
                Administrator.

            	
              122

            
	
              SECTION
                8.03. Trustee and the Securities Administrator Not Liable for
                Certificates, Mortgage Loans or Additional Collateral.

            	
              123

            
	
              SECTION
                8.04. Trustee, Custodian, Master Servicer and Securities Administrator
                May
                Own Certificates.

            	
              124

            
	
              SECTION
                8.05. Trustee’s and Securities Administrator’s Fees and
                Expenses.

            	
              124

            
	
              SECTION
                8.06. Eligibility Requirements for Trustee and Securities
                Administrator.

            	
              125

            
	
              SECTION
                8.07. Resignation or Removal of Trustee and Securities
                Administrator.

            	
              125

            
	
              SECTION
                8.08. Successor Trustee and Successor Securities
                Administrator.

            	
              127

            
	
              SECTION
                8.09. Merger or Consolidation of Trustee or Securities
                Administrator.

            	
              127

            
	
              SECTION
                8.10. Appointment of Co-Trustee or Separate Trustee.

            	
              127

            
	
              SECTION
                8.11. Limitation of Liability.

            	
              129

            
	
              SECTION
                8.12. Trustee May Enforce Claims Without Possession of
                Certificates.

            	
              129

            
	
              SECTION
                8.13. Suits for Enforcement.

            	
              130

            
	
              SECTION
                8.14. Waiver of Bond Requirement.

            	
              130

            
	
              SECTION
                8.15. Waiver of Inventory, Accounting and Appraisal
                Requirement.

            	
              130

            
	
              SECTION
                8.16. Appointment of Custodians.

            	
              130

            
	 	 
	
              ARTICLE
                IX REMIC ADMINISTRATION

            	
              131

            
	 	 
	
              SECTION
                9.01. REMIC Administration.

            	
              131

            
	
              SECTION
                9.02. Prohibited Transactions and Activities.

            	
              133

            
	 	 
	
              ARTICLE
                X TERMINATION

            	
              133

            
	 	 
	
              SECTION
                10.01. Termination.

            	
              133

            
	
              SECTION
                10.02. Additional Termination Requirements.

            	
              135

            
	 	 
	
              ARTICLE
                XI DISPOSITION OF TRUST ASSETS

            	
              135

            
	 	 
	
              SECTION
                11.01. Disposition of Trust Assets.

            	
              135

            
	 	 
	
              ARTICLE
                XII MISCELLANEOUS PROVISIONS

            	
              135

            
	 	 
	
              SECTION
                12.01. Amendment.

            	
              135

            
	
              SECTION
                12.02. Recordation of Agreement; Counterparts.

            	
              137

            
	
              SECTION
                12.03. Limitation on Rights of Certificateholders.

            	
              137

            
	
              SECTION
                12.04. Governing Law; Jurisdiction.

            	
              138

            
	
              SECTION
                12.05. Notices.

            	
              138

            
	
              SECTION
                12.06. Severability of Provisions.

            	
              139

            
	
              SECTION
                12.07. Article and Section References.

            	
              139

            
	
              SECTION
                12.08. Notice to the Rating Agencies.

            	
              139

            
	
              SECTION
                12.09. Further Assurances.

            	
              140

            
	
              SECTION
                12.10. Benefits of Agreement.

            	
              140

            
	
              SECTION
                12.11. Acts of Certificateholders.

            	
              140

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                12.12. Successors and Assigns.

            	
              141

            
	
              SECTION
                12.13. Derivatives Transactions.

            	
              141

            

    

    

    EXHIBITS
      AND SCHEDULES:

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Senior Certificate (Other than Senior Interest-Only
                Certificate)

            	
              A-1

            
	
              Exhibit
                A-2

            	
              Form
                of Senior Interest-Only Certificate

            	
              A-1

            
	
              Exhibit
                B

            	
              [Reserved]

            	
              B-1

            
	
              Exhibit
                C

            	
              Form
                of Class A-R and Class 4A-R Certificate

            	
              C-1

            
	
              Exhibit
                D

            	
              Form
                of Subordinate Certificate Relating to Loan Groups 1, 2 

            	 
	 	
              and
                3 and Loan Group 4

            	
              D-1

            
	
              Exhibit
                E

            	
              Form
                of Reverse of the Certificates

            	
              E-1

            
	
              Exhibit
                F

            	
              Request
                for Release

            	
              F-1

            
	
              Exhibit
                G-1

            	
              Form
                of Receipt of Mortgage Note

            	
              G-1-1

            
	
              Exhibit
                G-2

            	
              Form
                of Interim Certificate of Trustee

            	
              G-2-1

            
	
              Exhibit
                G-3

            	
              Form
                of Final Certification of Trustee

            	
              G-3-1

            
	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            	
              H-1

            
	
              Exhibit
                I

            	
              Form
                of ERISA Representation

            	
              I-1

            
	
              Exhibit
                J-1

            	
              Form
                of Investment Letter [Non-Rule 144A]

            	
              J-1-1

            
	
              Exhibit
                J-2

            	
              Form
                of Rule 144A Investment Letter

            	
              J-2-1

            
	
              Exhibit
                K

            	
              Form
                of Transferor Certificate

            	
              K-1

            
	
              Exhibit
                L

            	
              Transfer
                Affidavit for Class A-R and Class 4A-R Certificates Pursuant
                

            	 
	 	
              to
                Section 6.02(e)

            	
              L-1

            
	
              Exhibit
                M

            	
              [Reserved]

            	
              M-1

            
	
              Exhibit
                N

            	
              List
                of Servicers and Servicing Agreements

            	
              N-1

            
	
              Exhibit
                O

            	
              Notice
                of Exercise of Optional Securities Purchase Right

            	
              O-1

            
	
              Exhibit
                P

            	
              [Reserved]

            	
              P-1

            
	
              Exhibit
                Q

            	
              Servicing
                Criteria

            	
              Q-1

            
	
              Exhibit
                R

            	
              Additional
                Form 10-D Disclosure

            	
              R-1

            
	
              Exhibit
                S

            	
              Additional
                Form 10-K Disclosure

            	
              S-1

            
	
              Exhibit
                T

            	
              Form
                8-K Disclosure Information

            	
              T-1

            
	
              Exhibit
                U

            	
              Form
                of Additional Disclosure Notification

            	
              U-1

            

    

     

    
      	
              Schedule
                I

            	
              Aggregate
                Mortgage Loan Schedule

            

    

    
      	
              Schedule
                II

            	
              Group
                1 Mortgage Loan Schedule

            

    

    
      	
              Schedule
                III

            	
              Group
                2 Mortgage Loan Schedule

            

    

    
      	
              Schedule
                IV

            	
              Group
                3 Mortgage Loan Schedule

            

    

    
      	Schedule
              V	
              Group
                4 Mortgage Loan Schedules

            

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    This
      Pooling and Servicing Agreement is dated as of February 1, 2008 (the
“Agreement”),
      among
      GREENWICH CAPITAL ACCEPTANCE, INC., a Delaware corporation, as depositor (the
      “Depositor”),
      THORNBURG MORTGAGE HOME LOANS, INC., a Delaware corporation, as seller (the
      “Seller”),
      WELLS
      FARGO BANK, N.A., a national banking association, as master servicer (in such
      capacity, the “Master
      Servicer”)
      and as
      securities administrator (in such capacity, the “Securities
      Administrator”)
      and
      LASALLE BANK NATIONAL ASSOCIATION, a national banking association, as trustee
      (in such capacity, the “Trustee”)
      and
      custodian (in such capacity, the “Custodian”).

     

    PRELIMINARY
      STATEMENT:

     

    Pursuant
      to this Agreement, the Depositor intends to cause the issuance and sale of
      the
      Trust’s Mortgage Pass-Through Certificates, Series 2008-1 (the “Certificates”)
      representing in the aggregate the entire beneficial ownership of the Trust,
      the
      primary assets of which are the Mortgage Loans (as defined below).

     

    On
      or
      prior to the Closing Date, the Depositor acquired the Mortgage Loans from the
      Seller pursuant to the Mortgage Loan Purchase Agreement (as defined below).
      On
      the Closing Date, the Depositor will sell the Mortgage Loans and certain other
      property to the Trust and receive in consideration therefor the Certificates
      evidencing the entire beneficial ownership of the Trust.

     

    The
      Depositor intends to sell and deliver to the Seller or its designee the
      Certificates, to be issued hereunder in multiple classes, which in the aggregate
      will evidence the entire beneficial ownership interest in the Trust. The
      Certificates will consist of nineteen classes of certificates, designated as
      (i)
      the Class 1A-1 Certificates, (ii) the Class 1A-2 Certificates, (iii) the Class
      1-AX certificates, (iv) the Class 2A-1 Certificates, (v) the Class 2A-2
      Certificates, (vi) the Class 2-AX Certificates, (vii) the Class 3A-1
      Certificates, (viii) the Class 3A-2 Certificates, (ix) the Class 3-AX
      Certificates, (x) the Class 4A-1 Certificates, (xi) the Class 4A-2 Certificates,
      (xii) the Class 4-AX Certificates, (xiii) the Class A-R Certificate, (xiv)
      the
      Class B-1 Certificates, (xv) the Class B-2 Certificates, (xvi) the Class B-3
      Certificates, (xvii) the Class B-4 Certificates, (xviii) the Class B-5
      Certificates and (xix) the Class B-6 Certificates.

     

    For
      federal income tax purposes, the Trust Fund comprises three REMICs: the
      lower-tier REMIC (the “Lower-Tier
      REMIC”;
      the
      middle-tier REMIC (the “Middle-Tier
      REMIC”);
      and
      the upper-tier REMIC (the “Upper-Tier
      REMIC”).
      

     

    The
      Lower-Tier REMIC will hold as its assets all of the assets of the Trust Fund,
      other than the Additional Collateral, and will issue interests (the
“Lower-Tier
      Regular Interests”),
      which
      will be uncertificated and will represent the regular interests in the Lower
      Tier REMIC, and a residual interest (the “LT-R
      Interest”),
      ownership of which will be evidenced by the Class A-R Certificate and which
      will
      represent the sole class of residual interest in the Lower-Tier REMIC. The
      Trustee will hold the Lower-Tier Regular Interests as assets of the Middle-Tier
      REMIC, which will issue interests (the “Middle-Tier
      Regular Interests”),
      which
      will be uncertificated and will represent the regular interests in the
      Middle-Tier REMIC, and a residual interest (the “MT-R
      Interest”),
      ownership of which will be evidenced by the Class A-R Certificate and which
      will
      represent the sole class of residual interest in the Middle-Tier REMIC. The
      Trustee will hold the Middle-Tier REMIC Regular Interests as assets of the
      Upper-Tier REMIC. Each Certificate, other than the Class A-R Certificates,
      will
      represent regular interests in the Upper-Tier REMIC, and the Class A-R
      Certificate will represent the residual interest in the Upper-Tier REMIC as
      well
      as ownership of the LT-R Interest and MT-R Interest.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    All
      REMIC
      regular and residual interests created hereby will be retired on or before
      the
      Latest Possible Maturity Date.

     

    Lower-Tier
      REMIC 

     

    The
      following table specifies the designation, interest rate, initial principal
      amount, and related Loan Group for each Lower-Tier Regular
      Interest:

     

    
      	
              Lower-Tier
                

              Designation

            	
               

              Interest
                Rate

            	
              Initial
                

              Principal
                Amount

            	
              Related
                Loan Group

            
	
              LT-Group
                1

            	
              (1)

            	
              (5)

            	
              1

            
	
              LT-Group
                1 SCA

            	
              (1)

            	
              (6)

            	
              1

            
	
              LT-Group
                2

            	
              (2)

            	
              (7)

            	
              2

            
	
              LT-Group
                2 SCA

            	
              (2)

            	
              (8)

            	
              2

            
	
              LT-Group
                3

            	
              (3)

            	
              (9)

            	
              3

            
	
              LT-Group
                3 SCA

            	
              (3)

            	
              (10)

            	
              3

            
	
              LT-Group
                4

            	
              (4)

            	
              (11)

            	
              4

            
	
              LT-Group
                4 SCA

            	
              (4)

            	
              (12)

            	
              4

            
	
              LT-R
                

            	
              (13)

            	
              (13)

            	
              N/A

            

    

    __________________

     

    
      	
              (1)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Lower-Tier Regular Interests will be a per annum
                rate
                equal to the Net WAC for Loan Group 1.

            

    

     

    
      	
              (2)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Lower-Tier Regular Interests will be a per annum
                rate
                equal to the Net WAC for Loan Group
                2.

            

    

     

    
      	
              (3)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Lower-Tier Regular Interests will be a per annum
                rate
                equal to the Net WAC for Loan Group 3.

            

    

     

    
      	
              (4)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Lower-Tier Regular Interests will be a per annum
                rate
                equal to the Net WAC for Loan Group 4.

            

    

     

    
      	
              (5)

            	
              An
                amount equal to the excess of (i) the Loan Group Balance for Loan
                Group 1
                for the first Distribution Date over (ii) the product of (a) 1.00%
                multiplied by (ii) the Subordinate Component for Loan Group 1 for
                the
                first Distribution Date.

            

    

     

    
      	
              (6)

            	
              An
                amount equal to the product of (i) 1.00% multiplied by (ii) the
                Subordinate Component for Loan Group 1 for the first Distribution
                Date.

            

    

     

    
      	
              (7)

            	
              An
                amount equal to the excess of (i) the Loan Group Balance for Loan
                Group 2
                for the first Distribution Date over (ii) the product of (a) 1.00%
                multiplied by (ii) the Subordinate Component for Loan Group 2 for
                the
                first Distribution Date.

            

    

     

    
      	
              (8)

            	
              An
                amount equal to the product of (i) 1.00% multiplied by (ii) the
                Subordinate Component for Loan Group 2 for the first Distribution
                Date.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              (9)

            	
              An
                amount equal to the excess of (i) the Loan Group Balance for Loan
                Group 3
                for the first Distribution Date over (ii) the product of (a) 1.00%
                multiplied by (ii) the Subordinate Component for Loan Group 3 for
                the
                first Distribution Date.

            

    

     

    
      	
              (10)

            	
              An
                amount equal to the product of (i) 1.00% multiplied by (ii) the
                Subordinate Component for Loan Group 3 for the first Distribution
                Date.

            

    

     

    
      	
              (11)

            	
              An
                amount equal to the excess of (i) the Loan Group Balance for Loan
                Group 4
                for the first Distribution Date over (ii) the product of (a) 1.00%
                multiplied by (ii) the Subordinate Component for Loan Group 4 for
                the
                first Distribution Date.

            

    

     

    
      	
              (12)

            	
              An
                amount equal to the product of (i) 1.00% multiplied by (ii) the
                Subordinate Component for Loan Group 4 for the first Distribution
                Date.

            

    

     

    
      	
              (13)

            	
              The
                LT-R Interest is the sole residual interest in Lower-Tier REMIC.
                It does
                not have a principal amount or an interest rate.
                

            

    

     

    On
      each
      Distribution Date, the Available Funds for Loan Group 1, Loan Group 2, Loan
      Group 3, and Loan Group 4, as applicable, shall be distributed as interest
      with
      respect to the Lower-Tier Regular Interests related to such Loan Group based
      on
      the interest rates described above, adjusted to reflect any applicable Net
      Interest Shortfalls for the related Loan Group for such Distribution
      Date.

     

    On
      each
      Distribution Date, the remaining Available Funds for Loan Group 1, Loan Group
      2,
      Loan Group 3, and Loan Group 4, as applicable, shall be distributed as principal
      with respect to the Lower-Tier Regular Interests as follows:

     

    (a) First,
      from the remaining Available Funds for Loan Group 1, to
      the LT-Group 1 SCA Interest until its principal balance equals one percent
      of
      the Subordinate Component for Loan Group 1 for the immediately succeeding
      Distribution Date;

     

    (b) Second,
      from the remaining Available Funds for Loan Group 2, to
      the LT-Group 2 SCA Interest until its principal balance equals one percent
      of
      the Subordinate Component for Loan Group 2 for the immediately succeeding
      Distribution Date;

     

    (c) Third,
      from the remaining Available Funds for Loan Group 3, to
      the LT-Group 3 SCA Interest until its principal balance equals one percent
      of
      the Subordinate Component for Loan Group 3 for the immediately succeeding
      Distribution Date;

     

    (d) Fourth,
      from the remaining Available Funds for Loan Group 4, to
      the LT-Group 4 SCA Interest until its principal balance equals one percent
      of
      the Subordinate Component for Loan Group 4 for the immediately succeeding
      Distribution Date;

     

    (e) Fifth,
      to
      LT-Group 1 SCA, LT-Group 2 SCA, LT-Group 3 SCA, and LT-Group 4 SCA Interests
      from
      the remaining Available Funds from the applicable Loan Group, the minimum amount
      necessary to cause the ratio of the principal balance of such Lower-Tier Regular
      Interest to the principal balance of each other such Lower-Tier Regular Interest
      to equal the ratio of the Subordinate Component related to such Lower-Tier
      Regular Interest to the Subordinate Component related to the other such
      Lower-Tier Regular Interests, computed in each instance for the immediately
      succeeding Distribution Date;
      

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (f) Sixth,
      from the remaining Available Funds, to the LT-Group 1 Interest until the sum
      of
      its balance and that of the LT-Group 1 SCA, after taking into account
      distributions made pursuant to priorities (a) and (e) above for such
      Distribution Date, equals the Loan Group Balance for Loan Group 1 for the
      immediately succeeding Distribution Date;

     

    (g) Seventh,
      from the remaining Available Funds, to the LT-Group 2 Interest until the sum
      of
      its balance and that of the LT-Group 2 SCA, after taking into account
      distributions made pursuant to priorities (b) and (e) above for such
      Distribution Date, equals the Loan Group Balance for Loan Group 2 for the
      immediately succeeding Distribution Date;

     

    (h) Eighth,
      from the remaining Available Funds, to the LT-Group 3 Interest until the sum
      of
      its balance and that of the LT-Group 3 SCA, after taking into account
      distributions made pursuant to priorities (c) and (e) above for such
      Distribution Date, equals the Loan Group Balance for Loan Group 3 for the
      immediately succeeding Distribution Date;

     

    (i) Ninth,
      from the remaining Available Funds, to the LT-Group 4 Interest until the sum
      of
      its balance and that of the LT-Group 4 SCA, after taking into account
      distributions made pursuant to priorities (d) and (e) above for such
      Distribution Date, equals the Loan Group Balance for Loan Group 4 for the
      immediately succeeding Distribution Date;

     

    (j) Finally,
      to the Class LT-R Interest.

     

    On
      each
      Distribution Date, Realized Losses shall be allocated among the Lower Tier
      Regular Interests in the same manner that principal is distributed among the
      Lower Tier Regular Interests.

     

    Middle-Tier
      REMIC

     

    The
      following table specifies the designation, interest rate, initial principal
      amount, and related Corresponding Class of Certificate for each Middle-Tier
      Regular Interest:

     

    
      	
              Designation

            	
              Interest

              Rate

            	
              Initial
                Principal

              Amount

            	
              Corresponding
                Class of

              Certificate

            
	
              MT-1A-1

            	
              (1)

            	
              (7)

            	
              Class
                1A-1, Class A-R, Class 1-AX

            
	
              MT-1A-2

            	
              (1)

            	
              (7)

            	
              Class
                1A-2, Class 1-AX

            
	
              MT-2A-1

            	
              (2)

            	
              (7)

            	
              Class
                2A-1, Class 2-AX

            
	
              MT-2A-2

            	
              (2)

            	
              (7)

            	
              Class
                2A-2, Class 2-AX

            
	
              MT-3A-1

            	
              (3)

            	
              (7)

            	
              Class
                3A-1, Class 3-AX

            
	
              MT-3A-2

            	
              (3)

            	
              (7)

            	
              Class
                3A-2, Class 3-AX

            
	
              MT-4A-1

            	
              (4)

            	
              (7)

            	
              Class
                4A-1, Class 4-AX

            
	
              MT-4A-2

            	
              (4)

            	
              (7)

            	
              Class
                4A-2, Class 4-AX

            
	
              MT-B-1

            	
              (5)

            	
              (7)

            	
              Class
                B-1

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	
              Interest

              Rate

            	
              Initial
                Principal

              Amount

            	
              Corresponding
                Class of
Certificate

            
	
              MT-B-2

            	
              (5)

            	
              (7)

            	
              Class
                B-2

            
	
              MT-B-3

            	
              (5)

            	
              (7)

            	
              Class
                B-3

            
	
              MT-B-4

            	
              (5)

            	
              (7)

            	
              Class
                B-4

            
	
              MT-B-5

            	
              (5)

            	
              (7)

            	
              Class
                B-5

            
	
              MT-B-6

            	
              (5)

            	
              (7)

            	
              Class
                B-6

            
	
              MT-R

            	
              (6)

            	
              (6)

            	
              N/A

            

    

    ____________

     

    
      	
              (1)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Middle-Tier Regular Interests will be a per annum
                rate
                equal to the weighted average of the interest rates on the LT-Group
                1 and
                the LT-Group 1 SCA Interests in Lower-Tier REMIC for the related
                Accrual
                Period (adjusted to reflect any applicable Net Interest Shortfalls.
                

            

    

     

    
      	
              (2)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Middle-Tier Regular Interests will be a per annum
                rate
                equal to the weighted average of the interest rates on the LT-Group
                2 and
                the LT-Group 2 SCA Interests in Lower-Tier REMIC for the related
                Accrual
                Period (adjusted to reflect any applicable Net Interest
                Shortfalls.

            

    

     

    
      	
              (3)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Middle-Tier Regular Interests will be a per annum
                rate
                equal to the weighted average of the interest rates on the LT-Group
                3 and
                the LT-Group 3 SCA Interests in Lower-Tier REMIC for the related
                Accrual
                Period (adjusted to reflect any applicable Net Interest Shortfalls).
                

            

    

     

    
      	
              (4)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Middle-Tier Regular Interests will be a per annum
                rate
                equal to the weighted average of the interest rates on the LT-Group
                4 and
                the LT-Group 4 SCA Interests in Lower-Tier REMIC for the related
                Accrual
                Period (adjusted to reflect any applicable Net Interest Shortfalls).
                

            

    

     

    
      	
              (5)

            	
              The
                interest rate for any Distribution Date (and the related Accrual
                Period)
                for each of these Middle-Tier Regular Interests will be a per annum
                rate
                equal to the weighted average of the interest rates on the LT-Group
                1 SCA,
                LT-Group 2 SCA, LT-Group 3 SCA, and LT-Group 4 SCA Interests for
                the
                related Accrual Period (adjusted to reflect any applicable Net Interest
                Shortfalls).

            

    

     

    
      	
              (6)

            	
              The
                MT-R Interest is the sole residual interest in Middle-Tier REMIC.
                It does
                not have a principal amount or an interest rate.
                

            

    

     

    
      	
              (7)

            	
              The
                initial principal amount for each of these Middle-Tier Regular Interests
                will be an amount equal to the sum of the initial principal amounts
                for
                such Interest’s Corresponding Class of Certificates (other than any
                interest-only certificates).

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    On
      each
      Distribution Date, amounts distributable on such Distribution Date with respect
      to the Lower-Tier Regular Interests will be distributed as interest on the
      Middle-Tier Regular Interests at the interest rates described above. Any
      remaining amounts will be distributed, and Realized Losses shall be allocated,
      with respect to the Middle-Tier Regular Interests until the principal amount
      of
      each such Middle-Tier Regular Interest equals the amount that will be the Class
      Certificate Principal Balance of the Corresponding Class of Certificates
      immediately after taking into account all distributions on such Distribution
      Date.

     

    Upper
      Tier REMIC

     

    The
      following table sets forth (or describes) the Class designation, the Original
      Class Certificate Principal Balance (or, in the case of the Interest-Only
      Certificates, the Original Class Certificate Notional Balance) for each Class
      of
      Certificates constituting interests in the Trust Fund hereunder, each of which,
      except for the Class A-R Certificate, is hereby designated a REMIC regular
      interest in the Upper Tier REMIC for purposes of the REMIC
      Provisions:

     

    
      	
              Class

            	
              Original
                Class Certificate Principal Balance 

              or
                Original Class 

              Certificate
                Notional Balance

            	
              Pass-Through

              Rate

            
	
              Class
                1A-1

            	
              $80,293,900.00

            	
              (1)

            
	
              Class
                1A-2

            	
              $8,921,000.00

            	
              (1)

            
	
              Class
                2A-1

            	
              $491,586,000.00

            	
              (1)

            
	
              Class
                2-A2

            	
              $54,620,000.00

            	
              (1)

            
	
              Class
                3A-1

            	
              $130,926,000.00

            	
              (1)

            
	
              Class
                3A-2

            	
              $14,547,000.00

            	
              (1)

            
	
              Class
                4A-1

            	
              $154,052,000.00

            	
              (1)

            
	
              Class
                4A-2

            	
              $17,117,000.00

            	
              (1)

            
	
              Class
                A-R

            	
              $100.00

            	
              (1)

            
	
              Class
                1-AX

            	
              $

              (Notional
                Balance) (2)

            	
              (1)

            
	
              Class
                2-AX

            	
              $

              (Notional
                Balance) (3)

            	
              (1)

            
	
              Class
                3-AX

            	
              $

              (Notional
                Balance) (4)

            	
              (1)

            
	
              Class
                4-AX

            	
              $

              (Notional
                Balance) (5)

            	
              (1)

            
	
              Class
                B-1

            	
              $13,885,000.00

            	
              (1)

            
	
              Class
                B-2

            	
              $7,934,000.00

            	
              (1)

            
	
              Class
                B-3

            	
              $3,471,000.00

            	
              (1)

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              Class

            	
              Original
                Class Certificate Principal Balance 

              or
                Original Class 

              Certificate
                Notional Balance

            	
              Pass-Through

              Rate

            
	
              Class
                B-4

            	
              $5,950,000.00

            	
              (1)

            
	
              Class
                B-5

            	
              $1,983,000.00

            	
              (1)

            
	
              Class
                B-6

            	
              $6,446,724.00

            	
              (1)

            

    

    ____________

     

    
      	 	
              (1)

            	
              Calculated
                pursuant to the definition of “Pass-Through
                Rate.”

            

    

     

    
      	 	
              (2)

            	
              The
                Class Certificate Notional Balance of the Class 1-AX Certificates
                is equal
                to the sum of the Class Certificate Principal Balances of the Class
                1A-1
                and Class 1A-2 Certificates immediately preceding such Distribution
                Date.
                

            

    

     

    
      	 	
              (3)

            	
              The
                Class Certificate Notional Balance of the Class 2-AX Certificates
                is equal
                to the sum of the Class Certificate Principal Balances of the Class
                2A-1
                and Class 2A-2 Certificates immediately preceding such Distribution
                Date.

            

    

     

    
      	 	
              (4)

            	
              The
                Class Certificate Notional Balance of the Class 3-AX Certificates
                is equal
                to the sum of the Class Certificate Principal Balances of the Class
                3A-1
                and Class 3A-2 Certificates immediately preceding such Distribution
                Date.

            

    

     

    
      	 	
              (5)

            	
              The
                Class Certificate Notional Balance of the Class 4-AX Certificates
                is equal
                to the sum of the Class Certificate Principal Balances of the Class
                4A-1
                and Class 4A-2 Certificates immediately preceding such Distribution
                Date.

            

    

     

    ARTICLE
      I

     

    DEFINITIONS;
      DECLARATION OF TRUST

     

    SECTION
      1.01. Defined
      Terms.

     

    Whenever
      used in this Agreement or in the Preliminary Statement, the following words
      and
      phrases, unless the context otherwise requires, shall have the meanings
      specified in this Article. All calculations of interest described herein shall
      be made on the basis of an assumed 360-day year consisting of twelve 30-day
      months unless otherwise indicated in this Agreement.

     

    “Accepted
      Master Servicing Practices”:
      With
      respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
      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 Trustee (as successor Master Servicer) or the Master Servicer
      (except in its capacity as successor to a Servicer), or (y) as provided in
      the
      applicable Servicing Agreement, to the extent applicable to any Servicer, but
      in
      no event below the standard set forth in clause (x).

     

    “Account”:
      The
      Distribution Account and each Servicing Account, as the context
      requires.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Accrual
      Period”:
      With
      respect to each Distribution Date and any Class of Certificates and any Class
      of
      Lower-Tier Regular Interests, the calendar month prior to the month of such
      Distribution Date. Interest will be calculated based upon a 360-day year
      consisting of twelve 30-day months in each Accrual Period.

     

    “Accrued
      Interest Amount”:
      For
      any Distribution Date and for any Undercollateralized Group (other than any
      Interest Only Certificate), an amount equal to one month’s interest on the
      applicable Principal Deficiency Amount at the Net WAC of the applicable Loan
      Group, plus
      any
      interest accrued on such Undercollateralized Group remaining unpaid from prior
      Distribution Dates.

     

    “Additional
      Collateral”:
      With
      respect to any Additional Collateral Mortgage Loan, the marketable securities
      or
      other assets subject to a security interest pursuant to the related pledge
      agreement.

     

    “Additional
      Collateral Mortgage Loan”:
      Each
      Mortgage Loan identified as such in the Mortgage Loan Schedule and as to which
      Additional Collateral is then required to be provided as security
      therefor.

     

    “Additional
      Disclosure Notification”:
      As
      defined in Section 3.19(a).

     

    “Additional
      Form 10-D Disclosure”:
      As
      defined in Section 3.19(a).

     

    “Additional
      Form 10-K Disclosure”:
      As
      defined in Section 3.19(b).

     

    “Adjustable
      Rate Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule I
      hereto.

     

    “Adjustment
      Date”:
      With
      respect to each Mortgage Loan, each adjustment date on which the related Loan
      Rate changes pursuant to the related Mortgage Note. The first Adjustment Date
      following the Cut-Off Date as to each Mortgage Loan is set forth in the Mortgage
      Loan Schedule.

     

    “Advance”:
      As to
      any Mortgage Loan or REO Property, any advance made by the Master Servicer
      (including the Trustee in its capacity as successor Master Servicer), as
      successor servicer, in respect of any Distribution Date pursuant to Section
      5.05.

     

    “Adverse
      REMIC Event”:
      Either
      (i)
      the loss of status as a REMIC, within the meaning of Section 860D of the Code,
      for any group of assets identified as a REMIC in the Preliminary Statement
      to
      this Agreement, or (ii) the imposition of any tax, including the tax imposed
      under Section 860F(a)(1) on prohibited transactions and the tax imposed under
      Section 860G(d) on certain contributions to a REMIC, on any REMIC created
      hereunder to the extent such tax would be payable from assets held as part
      of
      the Trust Fund. 

     

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

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Aggregate
      Subordinate Percentage”:
      As to
      any Distribution Date, the percentage equivalent of a fraction, the numerator
      of
      which is the aggregate of the Class Certificate Principal Balances of the
      Classes of Subordinate Certificates and the denominator of which is the Pool
      Balance for such Distribution Date.

     

    “Agreement”:
      This
      Pooling and Servicing Agreement, dated as of February 1, 2008, as amended,
      supplemented and otherwise modified from time to time.

     

    “Applicable
      Credit Support Percentage”:
      With
      respect to the Subordinate Certificates, as defined in Section
      5.01(e).

     

    “Apportioned
      Principal Balance”:
      As to
      any Class of Subordinate Certificates and any Distribution Date, the Class
      Certificate Principal Balance of such Class immediately prior to such
      Distribution Date multiplied by a fraction, the numerator of which is the
      Subordinate Component for the related Loan Group for such date and the
      denominator of which is the sum of the Subordinate Components (in the
      aggregate).

     

    “Assignment”:
      As to
      any Mortgage, an assignment of mortgage, notice of transfer or equivalent
      instrument, in recordable form, which is sufficient, under the laws of the
      jurisdiction in which the related Mortgaged Property is located, to reflect
      or
      record the sale of such Mortgage.

     

    “Available
      Funds”:
      As to
      any Distribution Date and any Loan Group, an amount equal to (i) the sum,
      without duplication, of (a) the aggregate of the related Monthly Payments
      received on or prior to the related Determination Date (excluding Monthly
      Payments due in future Due Periods but received by the related Determination
      Date) in respect of the Mortgage Loans in that Loan Group, (b) Net
      Liquidation Proceeds, Insurance Proceeds, Principal Prepayments (but not
      including Prepayment Penalty Amounts), Recoveries and other unscheduled
      recoveries of principal and interest in respect of the Mortgage Loans in that
      Loan Group received during the related Prepayment Period, (c) the aggregate
      of
      any amounts received in respect of related REO Properties for such Distribution
      Date, (d) the aggregate of any amounts of Interest Shortfalls (excluding
      for such purpose all shortfalls as a result of Relief Act Reductions) paid
      by
      the Servicers pursuant to the related Servicing Agreements and Compensating
      Interest Payments deposited in the Distribution Account for such Distribution
      Date in respect of the Mortgage Loans in that Loan Group, (e) the aggregate
      of the Purchase Prices, Substitution Adjustments and amounts collected for
      purchases pursuant to Sections 2.03 or 3.25 deposited in the Distribution
      Account during the related Prepayment Period in respect of the Mortgage Loans
      in
      that Loan Group, (f) the aggregate of any Advances (including, without
      duplication, any Capitalization Reimbursement Amounts) made by the Servicers
      and
      the Master Servicer, as successor servicer, for such Distribution Date in
      respect of the Mortgage Loans in that Loan Group, (g) the aggregate of any
      Advances made by the Trustee (as successor Master Servicer) for such
      Distribution Date pursuant to Section 7.02 hereof in respect of the Mortgage
      Loans in that Loan Group, (h) the Termination Price allocated to such Loan
      Group on the Distribution Date on which the Trust is terminated and (g) solely
      as to the first Distribution Date, the Initial Deposit; minus
      (ii) the sum of (w) the Expense Fees for such Distribution Date in
      respect of the Mortgage Loans in that Loan Group, (x) amounts in reimbursement
      for Advances previously made in respect of the Mortgage Loans in that Loan
      Group
      and other amounts as to which the Servicers, the Trustee, the Securities
      Administrator and the Master Servicer are entitled to be reimbursed pursuant
      to
      Section 4.03, (y) the amount payable from funds of the Trust to the Trustee,
      the
      Master Servicer, the Custodian or the Securities Administrator pursuant to
      Section 8.05, Section 3.30 and Section 3.31(c) in respect of Mortgage Loans
      in
      that Loan Group or if not related to a Mortgage Loan, allocated to each Loan
      Group on a pro
      rata
      basis
      and (z) amounts deposited in the Distribution Account in error, in respect
      of
      Mortgage Loans in that Loan Group, in each case without duplication.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

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

     

    “Base
      Value”:
      With
      respect to any Mortgage Loan for which Additional Collateral has been pledged,
      the value of the Additional Collateral as determined with respect to that
      Mortgage Loan in accordance with the applicable underwriting
      guidelines.

     

    “Book-Entry
      Certificates”:
      Any of
      the Certificates that shall be registered in the name of the Depository or
      its
      nominee, the ownership of which is reflected on the books of the Depository
      or
      on the books of a Person maintaining an account with the Depository (directly,
      as a “Depository Participant”, or indirectly, as an indirect participant in
      accordance with the rules of the Depository and as described in Section 6.02
      hereof). On the Closing Date, all Classes of the Certificates other than the
      Physical Certificates shall be Book-Entry Certificates.

     

    “Business
      Day”:
      Any
      day other than a Saturday, a Sunday or a day on which banking or savings
      institutions in the State of Minnesota, the State of Maryland, the State of
      Illinois, the State of New York 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.

     

    “Capitalization
      Reimbursement Amount”:
      As to
      any Distribution Date and with respect to any modified Mortgage Loans, the
      sum
      of the amounts, if any, of unreimbursed Advances that were added to the Stated
      Principal Balances of such Mortgage Loans in connection with the related
      modifications.

     

    “Cenlar”:
      Cenlar
      FSB in its capacity as Sub-Servicer of the Mortgage Loans.

     

    “Certificate”:
      Any
      Regular Certificate or Residual Certificate.

     

    “Certificate
      Group”:
      Any of
      Certificate Group 1, Certificate Group 2, Certificate Group 3 or Certificate
      Group 4, as the context requires.

     

    “Certificate
      Group 1”:
      At any
      time, the Group 1 Certificates.

     

    “Certificate
      Group 2”:
      At any
      time, the Group 2 Certificates.

     

    “Certificate
      Group 3”:
      At any
      time, the Group 3 Certificates.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Certificate
      Group 4”:
      At any
      time, the Group 4 Certificates.

     

    “Certificate
      Notional Balance”:
      With
      respect to each Certificate of a given Class of Interest-Only Certificates
      and
      any date of determination, the product of (i) the Class Certificate Notional
      Balance of such Class and (ii) the applicable Percentage Interest of such
      Certificate.

     

    “Certificate
      Owner”:
      With
      respect to each Book-Entry Certificate, any beneficial owner thereof and with
      respect to each Physical Certificate, the Certificateholder
      thereof.

     

    “Certificate
      Principal Balance”:
      With
      respect to each Certificate of a given Class (other than Interest-Only
      Certificates) and any date of determination, the product of (i) the Class
      Certificate Principal Balance of such Class and (ii) the applicable Percentage
      Interest of such Certificate.

     

    “Certificate
      Register”
and
      “Certificate
      Registrar”:
      The
      register maintained and registrar appointed pursuant to Section 6.02
      hereof.

     

    “Certificateholder”
or
      “Holder”:
      The
      Person in whose name a Certificate is registered in the Certificate Register,
      except that a Disqualified Organization or non-U.S. Person shall not be a Holder
      of a Residual Certificate for any purpose hereof.

     

    “Certification
      Parties”:
      As
      defined in Section 3.18.

     

    “Certifying
      Person”:
      As
      defined in Section 3.18.

     

    “Class”:
      Collectively, Certificates that have the same priority of payment and bear
      the
      same class designation and the form of which is identical except for variation
      in the Percentage Interest evidenced thereby.

     

    “Class
      1A-1 Certificate”:
      Any of
      the Class 1A-1 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      1A-2 Certificate”:
      Any of
      the Class 1A-2 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      1-AX Certificate”:
      Any of
      the Class 1-AX Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-2, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    “Class
      2A-1 Certificate”:
      Any of
      the Class 2A-1 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      2A-2 Certificate”:
      Any of
      the Class 2A-2 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      2-AX Certificate”:
      Any of
      the Class 2-AX Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-2, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      3A-1 Certificate”:
      Any of
      the Class 3A-1 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      3A-2 Certificate”:
      Any of
      the Class 3A-2 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      3-AX Certificate”:
      Any of
      the Class 3-AX Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-2, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      4A-1 Certificate”:
      Any of
      the Class 4A-1 Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      4A-2 Certificate”:
      Any of
      the Class 4A-2 Certificate as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-1, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Class
      4-AX Certificate”:
      Any of
      the Class 4-AX Certificates as designated on the face thereof, executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit A-2, evidencing
      the ownership of a “regular interest” in the Upper Tier REMIC created hereunder
      and representing the right to distributions as set forth herein and
      therein.

     

    “Class
      A-R Certificate”:
      The
      Class A-R Certificate as designated on the face thereof, executed by the
      Securities Administrator, and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit C, evidencing
      the
      ownership of the sole class of “residual interests” in the Upper Tier REMIC
      created hereunder as well as ownership of the Class LT-R and Class MT-R
      Interests and representing the right to distributions as set forth
      herein.

     

    “Class
      B-1 Certificate”:
      Any of
      the Class B-1 Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit D, evidencing
      the
      ownership of a “regular interest” in the Upper Tier REMIC created hereunder and
      representing the right to distributions as set forth herein and
      therein.

     

    “Class
      B-2 Certificate”:
      Any of
      the Class B-2 Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit D, evidencing
      the
      ownership of a “regular interest” in the Upper Tier REMIC created hereunder and
      representing the right to distributions as set forth herein and
      therein.

     

    “Class
      B-3 Certificate”:
      Any of
      the Class B-3 Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit D, evidencing
      the
      ownership of a “regular interest” in the Upper Tier REMIC created hereunder and
      representing the right to distributions as set forth herein and
      therein.

     

    “Class
      B-4 Certificate”:
      Any of
      the Class B-4 Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit D, evidencing
      the
      ownership of a “regular interest” in the Upper Tier REMIC created hereunder and
      representing the right to distributions as set forth herein and
      therein.

     

    “Class
      B-5 Certificate”:
      Any of
      the Class B-5 Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit D, evidencing
      the
      ownership of a “regular interest” in the Upper Tier REMIC created hereunder and
      representing the right to distributions as set forth herein and
      therein.

     

    “Class
      B-6 Certificate”:
      Any of
      the Class B-6 Certificates as designated on the face thereof, executed by the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar, substantially in the form annexed hereto as Exhibit D, evidencing
      the
      ownership of a “regular interest” in the Upper Tier REMIC created hereunder and
      representing the right to distributions as set forth herein and
      therein.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Class
      Certificate Notional Balance”:
      With
      respect to the Class 1-AX Certificate and any Distribution Date up to and
      including the Distribution Date in December 2010, the sum of the Class
      Certificate Principal Balances of the Class 1A-1 and Class 1A-2 Certificates
      before such Distribution Date; for any Distribution Date thereafter, zero.
      With
      respect to the Class 2-AX Certificate and any Distribution Date up to and
      including the Distribution Date in January 2013, the sum of the Class
      Certificate Principal Balances of the Class 2A-1 and Class 2A-2 Certificates
      before such Distribution Date; for any Distribution Date thereafter, zero.
      With
      respect to the Class 3-AX Certificate and any Distribution Date up to and
      including the Distribution Date in November 2014, the sum of the Class
      Certificate Principal Balances of the Class 3A-1 and Class 3A-2 Certificates
      before such Distribution Date; for any Distribution Date thereafter, zero.
      With
      respect to the Class 4-AX Certificate and any Distribution Date up to and
      including the Distribution Date in November 2017, the sum of the Class
      Certificate Principal Balances of the Class 4A-1 and Class 4A-2 Certificates
      before such Distribution Date; for any Distribution Date thereafter, zero.
      

     

    “Class
      Certificate Principal Balance”:
      As to
      any Distribution Date, with respect to any Class of Certificates (other than
      the
      Interest-Only Certificates), the Original Class Certificate Principal Balance
      as
      reduced by the sum of (x) all amounts actually distributed in respect of
      principal of that Class on all prior Distribution Dates, (y) all Realized
      Losses, if any, actually allocated to that Class on all prior Distribution
      Dates
      and (z) in the case of the Subordinate Certificates, any applicable Writedown
      Amount; provided,
      however,
      that
      pursuant to Section 5.10, the Class Certificate Principal Balance of a Class
      of
      Certificates may be increased up to the amount of Realized Losses previously
      allocated to such Class, in the event that there is a Recovery on a Mortgage
      Loan, and the Certificate Principal Balance of any individual Certificate of
      such Class shall be increased by its pro
      rata
      share of
      the increase to such Class.

     

    “Class
      LT-R Interest”:
      As
      described in the Preliminary Statement.

     

    “Class
      MT-R Interest”:
      As
      described in the Preliminary Statement.

     

    “Class
      Subordination Percentage”:
      With
      respect to each Class of Subordinate Certificates and any Distribution Date,
      the
      percentage equivalent of a fraction the numerator of which is the Class
      Certificate Principal Balance of such Class immediately before such Distribution
      Date and the denominator of which is the aggregate of the Class Certificate
      Principal Balances of all Classes of Certificates immediately before such
      Distribution Date.

     

    “Close
      of Business”:
      As
      used herein, with respect to any Business Day and location, 5:00 p.m. at such
      location.

     

    “Closing
      Date”:
      March
      3, 2008.

     

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

     

    “Commission”:
      U.S.
      Securities and Exchange Commission.

     

    
      
        
        

      

      
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    “Compensating
      Interest Payment”:
      With
      respect to any Distribution Date, an
      amount equal to the amount, if any, by which (x) the aggregate
      amount of any Interest Shortfalls (excluding for such purpose all shortfalls
      as
      a result of Relief Act Reductions) required to be paid by the Servicers pursuant
      to the related Servicing Agreement with respect to such Distribution Date,
      exceeds (y) the aggregate amount actually paid by the Servicers in respect
      of
      such shortfalls; provided,
      that
      such amount, to the extent payable by the Master Servicer, shall not exceed
      the
      aggregate Master Servicing Fee that would be payable to the Master Servicer
      in
      respect of such Distribution Date without giving effect to any Compensating
      Interest Payment.
      

     

    “Converted
      Mortgage Loan”:
      Any
      Mortgage Loan as to which the Mortgagor thereunder has exercised its right
      under
      the related Mortgage Note to convert the adjustable Loan Rate thereon to a
      fixed
      Loan Rate. 

     

    “Cooperative
      Corporation”:
      The
      entity that holds title (fee or an acceptable leasehold estate) to the real
      property and improvements constituting the Cooperative Property and which
      governs the Cooperative Property, which Cooperative Corporation must qualify
      as
      a Cooperative Housing Corporation under Section 216 of the Code.

     

    “Cooperative
      Loan”:
      Any
      Mortgage Loan secured by Cooperative Shares and a Proprietary
      Lease.

     

    “Cooperative
      Loan Documents”:
      As to
      any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
      in
      blank; (ii) the original or a copy of the executed Security Agreement and the
      assignment of the Security Agreement in blank; (iii) the original or a copy
      of
      the executed Proprietary Lease and the original assignment of the Proprietary
      Lease endorsed in blank; (iv) the original, if available, or a copy of the
      executed Recognition Agreement and, if available, the original assignment of
      the
      Recognition Agreement (or a blanket assignment of all Recognition Agreements)
      endorsed in blank; (v) the UCC-1 financing statement with evidence of recording
      thereon, which has been filed in all places required to perfect the security
      interest in the Cooperative Shares and the Proprietary Lease; and (vi) UCC
      Amendments (or copies thereof) or other appropriate UCC financing statements
      required by state law, evidencing a complete and unbroken line from the
      mortgagee to the Trustee with evidence of recording thereon (or in a form
      suitable for recordation).

     

    “Cooperative
      Property”:
      The
      real property and improvements owned by the Cooperative Corporation, that
      includes the allocation of individual dwelling units to the holders of the
      Cooperative Shares of the Cooperative Corporation.

     

    “Cooperative
      Shares”:
      Shares
      issued by a Cooperative Corporation.

     

    “Cooperative
      Unit”:
      A
      single family dwelling located in a Cooperative Property.

     

    “Corporate
      Trust Office”:
      With
      respect to the Trustee, the principal corporate trust office of the Trustee
      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 135 South LaSalle Street, Mail Code
      IL4-135-15-11, Chicago, IL 60603, Attention: Global Securities and Trust
      Services, Thornburg 2008-1, or at such other address as the Trustee may
      designate from time to time by notice to the Certificateholders, the Depositor
      and the Seller. With respect to the Securities Administrator and the Certificate
      Registrar and (i) presentment of Certificates for registration of transfer,
      exchange or final payment, Wells Fargo Bank, National Association, Sixth Street
      and Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust
      Services, Thornburg Mortgage Securities Trust 2008-1, and (ii) for all other
      purposes, P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries,
      9062 Old Annapolis Road, Columbia, Maryland 21045), Attention: Client Services
      Manager, Thornburg Mortgage Securities Trust 2008-1.

     

    
      
        
        

      

      
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    “Correspondent
      Sellers Guide”:
      The
      Seller’s Correspondent Sellers Guide, revised July 23, 2007, effective July 30,
      2007 and as revised and/or amended from time to time.

     

    “Corresponding
      Class”:
      With
      respect to each Middle-Tier Regular Interest, the Class or Classes of
      Certificate corresponding to such Class as set forth in the Preliminary
      Statement.

     

    “Custodian”:
      LaSalle Bank National Association, and its successors acting as custodian of
      the
      Mortgage Files.

     

    “Cut-Off
      Date”:
      With
      respect to any Mortgage Loan other than a Qualified Substitute Mortgage Loan,
      the Close of Business in New York City on February 1, 2008 or March 1, 2008,
      as
      applicable. With respect to any Qualified Substitute Mortgage Loan, the date
      designated as such on the Mortgage Loan Schedule (as amended).

     

    “Cut-Off
      Date Aggregate Principal Balance”:
      The
      aggregate of the Cut-Off Date Principal Balances of the Mortgage Loans in each
      Loan Group.

     

    “Cut-Off
      Date Principal Balance”:
      With
      respect to any Mortgage Loan, the principal balance thereof remaining to be
      paid, after application of all scheduled principal payments due on or before
      the
      Cut-Off Date whether or not received as of the Cut-Off Date (or as of the
      applicable date of substitution with respect to a Qualified Substitute Mortgage
      Loan).

     

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

     

    “Definitive
      Certificates”:
      Any
      Certificate evidenced by a Physical Certificate and any Certificate issued
      in
      lieu of a Book-Entry Certificate pursuant to Section 6.02(c) or Section 6.02(d)
      hereof.

     

    “Deleted
      Mortgage Loan”:
      A
      Mortgage Loan replaced or to be replaced by one or more Qualified Substitute
      Mortgage Loans.

     

    “Delinquent”:
      Any
      Mortgage Loan with respect to which the Monthly Payment due on a Due Date is
      not
      made by the succeeding Due Date.

     

    “Depositor”:
      Greenwich Capital Acceptance, Inc., a Delaware corporation, or any successor
      in
      interest.

     

    
      
        
        

      

      
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    “Depository”:
      The
      initial Depository shall be The Depository Trust Company, whose nominee is
      Cede
& Co., or any other organization registered as a “clearing agency” pursuant
      to Section 17A of the Exchange Act. The Depository shall initially be the
      registered Holder of the Book-Entry Certificates. 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.

     

    “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”:
      For
      any Distribution Date and each Mortgage Loan, the date each month, as set forth
      in the related Servicing Agreement, on which the related Servicer determines
      the
      amount of all funds required to be remitted to the Master Servicer on the
      Servicer Remittance Date with respect to the Mortgage Loans it is servicing.
      

     

    “Disqualified
      Organization”:
      A
“disqualified organization” defined in Section 860E(e)(5) of the
      Code.

     

    “Distribution
      Account”:
      The
      trust account or accounts created and maintained by the Securities Administrator
      pursuant to Section 4.02 hereof which shall be entitled “Distribution Account,
      Wells Fargo Bank, N.A., as Securities Administrator for LaSalle Bank National
      Association, as Trustee, in trust for the registered Holders of Thornburg
      Mortgage Securities Trust 2008-1, Mortgage Pass-Through Certificates, Series
      2008-1” and which must be an Eligible Account.

     

    “Distribution
      Account Income”:
      As to
      any Distribution Date, any interest or other investment income earned on funds
      deposited in the Distribution Account during the month of such Distribution
      Date.

     

    “Distribution
      Date”:
      The
      25th day of the month, or, if such day is not a Business Day, the next Business
      Day commencing in March 2008.

     

    “Distribution
      Date Statement”:
      As
      defined in Section 5.04(a) hereof.

     

    “Due
      Date”:
      With
      respect to each Mortgage Loan and any Distribution Date, the first day of the
      calendar month in which such Distribution Date occurs on which the Monthly
      Payment for such Mortgage Loan was due, exclusive of any days of
      grace.

     

    “Due
      Period”:
      With
      respect to any Distribution Date, the period commencing on the second day of
      the
      month 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 federal or state chartered depository
      institution or trust company the short-term unsecured debt obligations of which
      (or, in the case of a depository institution or trust company that is the
      principal subsidiary of a holding company, the short-term unsecured debt
      obligations of such holding company) are rated in the highest short term rating
      category of each Rating Agency at the time any amounts are held on deposit
      therein;

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (ii) an
      account or accounts maintained with the trust department of a federal or state
      chartered depository institution, national banking association or trust company
      acting in its fiduciary capacity; or 

     

    (iii) an
      account otherwise acceptable to each Rating Agency without reduction or
      withdrawal of its then current ratings of the Certificates as evidenced by
      a
      letter from such Rating Agency to the Securities Administrator and the Trustee.
      Eligible Accounts may bear interest.

     

    “Employee
      Loan”:
      Any
      Mortgage Loan identified as such in the Mortgage Loan Schedule and which was
      originated by the Seller, which provides for an increase in the Loan Rate
      thereof in the event of the change of employment of the Mortgagor
      thereunder.

     

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

     

    “ERISA-Qualifying
      Underwriting”:
      A best
      efforts or firm commitment underwriting or private placement that meets the
      requirements of the Underwriter’s Exemption.

     

    “ERISA-Restricted
      Certificates”:
      (i)
      The Residual Certificate, the Class B-4, Class B-5 and Class B-6 Certificates,
      (ii) any Non-Offered Certificate until it has been subject to an
      ERISA-Qualifying Underwriting and (iii) any Certificate that does not satisfy
      the applicable rating requirement under the Underwriter’s
      Exemption.

     

    “Escrow
      Payments”:
      The
      amounts constituting ground rents, taxes, assessments, water rates, fire and
      hazard insurance premiums and other payments required to be escrowed by the
      Mortgagor with the mortgagee pursuant to any Mortgage Loan.

     

    “Event
      of Default”:
      In
      respect of the Master Servicer, one or more of the events (howsoever described)
      set forth in Section 7.01 hereof as an event or events upon the occurrence
      and
      continuation of which the Master Servicer may be terminated.

     

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

     

    “Expense
      Fee”:
      With
      respect to any Mortgage Loan, the sum of (w) the Retained Interest, if any,
      (x)
      the Master Servicing Fee and (y) the related Servicing Fee with respect to
      the
      related Servicer.

     

    “Expense
      Fee Rate”:
      With
      respect to any Mortgage Loan, the per annum rate at which the Expense Fee
      accrues for such Mortgage Loan as set forth in the Mortgage Loan
      Schedule.

     

    “Fannie
      Mae”:
      The
      Federal National Mortgage Association or any successor thereto.

     

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

     

    
      
        
        

      

      
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    “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 Seller pursuant to or
      contemplated by Section 2.03, 3.25 and 10.01), a determination made by the
      related Servicer that all Insurance Proceeds, Liquidation Proceeds and other
      payments or recoveries which it expects to be finally recoverable in respect
      thereof have been so recovered. 

     

    “Fitch”:
      Fitch
      Ratings, Inc.

     

    “Five-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule II
      hereto.

     

    “Form
      8-K Disclosure Information”:
      As
      defined in Section 3.19(c).

     

    “Freddie
      Mac”:
      The
      Federal Home Loan Mortgage Corporation or any successor thereto.

     

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

     

    “Group
      1 Certificates”:
      The
      Class 1A-1 Certificates, Class 1A-2 Certificates, Class 1-AX Certificates and
      Class A-R Certificates.

     

    “Group
      1 Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Group
      2 Certificates”:
      The
      Class 2A-1 Certificates, Class 2A-2 Certificates and Class 2-AX
      Certificates.

     

    “Group
      2 Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Group
      3 Certificates”:
      The
      Class 3A-1 Certificates, Class 3A-2 Certificates and Class 3-AX
      Certificates.

     

    “Group
      3 Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Group
      4 Certificates”:
      The
      Class 4A-1 Certificates, Class 4A-2 Certificates and Class 4-AX
      Certificates.

     

    “Group
      4 Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Indemnified
      Persons”:
      The
      Trustee (individually in its corporate capacity and in all capacities
      hereunder), the Master Servicer, the Seller, the Depositor and the Securities
      Administrator (in all capacities hereunder) and their officers, directors,
      agents and employees and, with respect to the Trustee, any separate co-trustee
      and its officers, directors, agents and employees.

     

    
      
        
        

      

      
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    “Independent”:
      When
      used with respect to any accountants, a Person who is “independent” within the
      meaning of Rule 2-01 of the Securities and Exchange Commission’ Regulation S-X.
      When used with respect to any other specified Person, any such Person who (a)
      is
      in fact independent of the Depositor and its Affiliates, (b) does not have
      any
      direct financial interest in or any material indirect financial interest in
      the
      Depositor or any Affiliate thereof, (c) is not connected with the Depositor
      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 in clause (b) or (c)
      above.

     

    “Index”:
      With
      respect to each Mortgage Loan and each Adjustment Date, the index specified
      in
      the related Mortgage Note.

     

    “Initial
      Certificate Notional Balance”:
      With
      respect to any Interest-Only Certificates, the amount designated “Initial
      Certificates Notional Balance” on the face thereof.

     

    “Initial
      Certificate Principal Balance”:
      With
      respect to any Certificate other than the Interest-Only Certificates, the amount
      designated “Initial Certificate Principal Balance” on the face
      thereof.

     

    “Initial
      Deposit”:
      In
      respect of all Mortgage Loans with a first payment Due Date after March 1,
      2008,
      an amount equal to $423,480.00.

     

    “Initial
      Loan Group 1 Balance”:
      $92,932,253.37.

    

    “Initial
      Loan Group 2 Balance”:
      $568,964,345.17.

    

    “Initial
      Loan Group 3 Balance”:
      $151,534,894.32.

    

    “Initial
      Loan Group 4 Balance”:
      $178,301,231.42.

    

    “Initial
      Purchaser”:
      Greenwich Capital Markets, Inc.

     

    “Insurance
      Proceeds”:
      With
      respect to any Mortgage Loan, proceeds of any title policy, hazard policy or
      other insurance policy covering a Mortgage Loan, to the extent such proceeds
      are
      not to be applied to the restoration of the related Mortgaged Property or
      released to the related Mortgagor in accordance with the related Servicing
      Agreement.

     

    “Interest
      Distributable Amount”:
      With
      respect to any Distribution Date and each Class of Certificates, the sum of
      (i) the Monthly Interest Distributable Amount for that Class and
      (ii) the Unpaid Interest Shortfall Amount for that Class.

     

    “Interest-Only
      Certificates”:
      Any of
      the Class 1-AX, Class 2-AX, Class 3-AX and Class 4-AX Certificates.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    “Interest
      Shortfall”:
      With
      respect to any Distribution Date and each Mortgage Loan that during the related
      Prepayment Period was the subject of a Principal Prepayment or a reduction
      of
      its Monthly Payment under the Relief Act, an amount determined as
      follows:

     

    (a) Principal
      Prepayments in part received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the amount of such prepayment and (ii) the amount of interest for the calendar
      month of such prepayment (adjusted to the applicable Net Loan Rate) received
      at
      the time of such prepayment; and

     

    (b) Principal
      Prepayments in full received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the Stated Principal Balance of such Mortgage Loan immediately prior to such
      prepayment and (ii) the amount of interest for the calendar month of such
      prepayment (adjusted to the applicable Net Loan Rate) received at the time
      of
      such prepayment; and

     

    (c) any
      Relief Act Reductions for such Distribution Date.

     

    “Item
      1122 Responsible Party”:
      As
      defined in Section 3.22.

     

    “Latest
      Possible Maturity Date”:
      As
      determined as of the Cut-Off Date, the Distribution Date following the fifth
      anniversary of the scheduled maturity date of the Mortgage Loan having the
      latest scheduled maturity date as of the Cut-Off Date.

     

    “Liquidated
      Mortgage Loan”:
      As to
      any Distribution Date, any Mortgage Loan in respect of which the related
      Servicer or the Master Servicer has determined, in accordance with the servicing
      procedures specified herein, as of the end of the related Prepayment Period,
      that all Liquidation Proceeds that it expects to recover with respect to the
      liquidation of such Mortgage Loan or disposition of the related REO Property
      have been 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 the Trust Fund by
      reason of its being purchased, sold or replaced pursuant to or as contemplated
      hereunder. 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 the Trust Fund by reason of its being sold or purchased
      pursuant to Section 10.01 hereof or the applicable provisions of the related
      Servicing Agreement.

     

    “Liquidation
      Expenses”:
      With
      respect to a Mortgage Loan in liquidation, unreimbursed expenses paid or
      incurred by or for the account of the Master Servicer or the related Servicers,
      such expenses including (a) property protection expenses, (b) property sales
      expenses, (c) foreclosure and sale costs, including court costs and reasonable
      attorneys’ fees, and (d) similar expenses reasonably paid or incurred in
      connection with liquidation. 

     

    “Liquidation
      Proceeds”:
      With
      respect to any Mortgage Loan, the amount (other than amounts received in respect
      of the rental of any REO Property prior to REO Disposition) received by the
      related Servicer as proceeds from the liquidation of such Mortgage Loan, as
      determined in accordance with the applicable provisions of the related Servicing
      Agreement, other than Recoveries; provided
      that (i)
      with respect to any Mortgage Loan or REO Property repurchased, substituted
      or
      sold pursuant to or as contemplated hereunder, or pursuant to the applicable
      provisions of the related Servicing Agreement, “Liquidation Proceeds” shall also
      include amounts realized in connection with such repurchase, substitution or
      sale and (ii) with respect to a defaulted Additional Collateral Mortgage Loan,
      “Liquidation Proceeds” shall also include the amount realized on the related
      Additional Collateral.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    “Loan
      Group”:
      Any of
      Loan Group 1, Loan Group 2, Loan Group 3 or Loan Group 4, as the context
      requires.

     

    “Loan
      Group Balance”:
      As to
      each Loan Group and any Distribution Date, the aggregate of the Stated Principal
      Balances, as of the Close of Business on the first day of the month preceding
      the month in which such Distribution Date occurs, of the Mortgage Loans in
      such
      Loan Group that were Outstanding Mortgage Loans on such date.

     

    “Loan
      Group 1”:
      At any
      time, the Group 1 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Loan
      Group 2”:
      At any
      time, the Group 2 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Loan
      Group 3”:
      At any
      time, the Group 3 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Loan
      Group 4”:
      At any
      time, the Group 4 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Loan
      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.

     

    “Loan-to-Collateral
      Value Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination less the Base Value of any
      related Additional Collateral and the denominator of which is the Value of
      the
      related Mortgaged Property.

     

    “Loan-to-Value
      Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination and the denominator of which
      is
      the Value of the related Mortgaged Property.

     

    “Lost
      Note Affidavit”:
      With
      respect to any Mortgage Loan as to which the original Mortgage Note has been
      lost or destroyed and has not been replaced, an affidavit from the Seller
      certifying that the original Mortgage Note has been lost, misplaced or destroyed
      (together with a copy of the related Mortgage Note and indemnifying the Trust
      against any loss, cost or liability resulting from the failure to deliver the
      original Mortgage Note) in the form of Exhibit H hereto.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    “Lower-Tier
      Regular Interest”:
      As
      described in the Preliminary Statement.

     

    “Lower
      Tier REMIC”:
      As
      described in the Preliminary Statement.

     

    “Majority
      Certificateholders”:
      The
      Holders of Certificates evidencing at least 51% of the Voting
      Rights.

     

    “Master
      Servicer”:
      Wells
      Fargo Bank, N.A., or any successor Master Servicer appointed as herein
      provided.

     

    “Master
      Servicing Fee”:
      As to
      any Distribution Date and each related Mortgage Loan, an amount equal to the
      product of the applicable Master Servicing Fee Rate and the outstanding
      Principal Balance of such Mortgage Loan as of the first day of the related
      Due
      Period. The Master Servicing Fee for any Mortgage Loan shall be payable in
      respect of any Distribution Date solely from the interest portion of the Monthly
      Payment or other payment or recovery with respect to such Mortgage
      Loan.

     

    “Master
      Servicing Fee Rate”:
      0.010%
      per annum.

     

    “Master
      Servicing Guide”:
      Wells
      Fargo Conduit and Norwest Conduit Servicing Guide, dated January 1997, as
      amended from time to time. 

     

    “Maximum
      Loan Rate”:
      With
      respect to each Mortgage Loan, the percentage set forth in the related Mortgage
      Note as the maximum Loan 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
      Mortgage Loan”:
      Any
      Mortgage Loan registered with MERS on the MERS System.

     

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

     

    “Middle
      Tier Regular Interest”:
      As
      described in the Preliminary Statement.

     

    “Middle
      Tier REMIC”:
      As
      described in the Preliminary Statement.

     

    “MIN”:
      The
      Mortgage Identification Number for any MERS Mortgage Loan.

     

    “Modifiable
      Mortgage Loan”:
      Any
      Mortgage Loan which, at the option of the Mortgagor and in accordance with
      the
      terms of the related Mortgage Note, may have the related Mortgage Rate modified
      to any adjustable rate or hybrid product offered at the time by the related
      originator.

     

    “MOM
      Loan”:
      Any
      Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee for
      the
      originator of such Mortgage Loan and its successors and assigns.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    “Monthly
      Interest Distributable Amount”:
      With
      respect to each Class of Certificates and any Distribution Date, the amount
      of
      interest accrued during the related Accrual Period at the related Pass-Through
      Rate on the Class Certificate Principal Balance or Class Certificate Notional
      Balance, as applicable, of that Class immediately prior to such Distribution
      Date. 

     

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

     

    “Moody’s”:
      Not
      applicable.

     

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

     

    “Mortgage
      File”:
      The
      mortgage documents listed in Section 2.01 hereof pertaining to a particular
      Mortgage Loan and any additional documents required to be added to the Mortgage
      File pursuant to this Agreement.

     

    “Mortgage
      Loan”:
      Each
      mortgage loan (including Cooperative Loans) transferred and assigned to the
      Trustee pursuant to Section 2.01 or Section 2.03(d) hereof as from time to
      time
      held as a part of the Trust Fund, the Mortgage Loans so held being identified
      in
      the Mortgage Loan Schedule.

     

    “Mortgage
      Loan Purchase Agreement”:
      The
      Mortgage Loan Purchase Agreement between the Seller and the Depositor, dated
      as
      of February 1, 2008, regarding the transfer of the Mortgage Loans by the Seller
      to or at the direction of the Depositor.

     

    “Mortgage
      Loan Schedule”:
      As of
      any date, the list of Mortgage Loans included in the Trust Fund on such date,
      attached hereto as Schedule I. The Mortgage Loan Schedule shall be prepared
      by
      the Seller and shall set forth the following information with respect to each
      Mortgage Loan:

     

    
      	 	
              (i)

            	
              the
                Mortgage Loan identifying number;

            

    

     

    
      	 	
              (ii)

            	
              the
                Mortgagor’s name;

            

    

     

    
      	 	
              (iii)

            	
              the
                street address of the Mortgaged Property including the state and
                five-digit ZIP code;

            

    

     

    
      	 	
              (iv)

            	
              a
                code indicating whether the Mortgaged Property was represented by
                the
                borrower, at the time of origination, as being
                owner-occupied;

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	 	
              (v)

            	
              a
                code indicating whether the Residential Dwelling constituting the
                Mortgaged Property is (a) a detached single family dwelling, (b)
                a
                dwelling in a planned unit development, (c) a condominium unit, (d)
                a two-
                to four-unit residential property, (e) a townhouse, (f) a cooperative
                or
                (g) other type of Residential
                Dwelling;

            

    

     

    
      	 	
              (vi)

            	
              if
                the related Mortgage Note permits the borrower to make Monthly Payments
                of
                interest-only for a specified period of time, (a) the original number
                of
                such specified Monthly Payments and (b) the remaining number of such
                Monthly Payments as of the Cut-Off
                Date;

            

    

     

    
      	 	
              (vii)

            	
              the
                original months to maturity;

            

    

     

    
      	 	
              (viii)

            	
              the
                stated remaining months to maturity from the Cut-Off Date based on
                the
                original amortization schedule;

            

    

     

    
      	 	
              (ix)

            	
              the
                Loan-to-Value Ratio at origination;

            

    

     

    
      	 	
              (x)

            	
              the
                value of any Additional Collateral at
                origination;

            

    

     

    
      	 	
              (xi)

            	
              the
                Loan-to-Collateral Value Ratio at
                origination;

            

    

     

    
      	 	
              (xii)

            	
              the
                Loan Rate in effect immediately following the Cut-Off
                Date;

            

    

     

    
      	 	
              (xiii)

            	
              the
                date on which the first Monthly Payment is or was due on the Mortgage
                Loan;

            

    

     

    
      	 	
              (xiv)

            	
              the
                stated maturity date;

            

    

     

    
      	 	
              (xv)

            	
              the
                Master Servicing Fee Rate and the Servicing Fee Rate, if
                any;

            

    

     

    
      	 	
              (xvi)

            	
              whether
                such loan is an Additional Collateral Mortgage Loan or an Employee
                Loan;

            

    

     

    
      	 	
              (xvii)

            	
              the
                last Due Date on which a Monthly Payment was actually applied to
                the
                unpaid Stated Principal Balance;

            

    

     

    
      	 	
              (xviii)

            	
              the
                original principal balance of the Mortgage
                Loan;

            

    

     

    
      	 	
              (xix)

            	
              the
                Stated Principal Balance of the Mortgage Loan on the Cut-Off Date
                and a
                code indicating the purpose of the Mortgage Loan (i.e.,
                purchase
                financing, rate/term refinancing, cash-out
                refinancing);

            

    

     

    
      	 	
              (xx)

            	
              the
                Index and Gross Margin specified in related Mortgage
                Note;

            

    

     

    
      	 	
              (xxi)

            	
              the
                next Adjustment Date, if
                applicable;

            

    

     

    
      	 	
              (xxii)

            	
              the
                Maximum Loan Rate, if applicable;

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      	 	
              (xxiii)

            	
              the
                Value of the Mortgaged Property;

            

    

     

    
      	 	
              (xxiv)

            	
              the
                sale price of the Mortgaged Property, if
                applicable;

            

    

     

    
      	 	
              (xxv)

            	
              the
                product code;

            

    

     

    
      	 	
              (xxvi)

            	
              Expense
                Fee Rate therefor;

            

    

     

    
      	 	
              (xxvii)

            	
              the
                Servicer that is servicing such Mortgage Loan and the originator
                of such
                Mortgage Loan; 

            

    

     

    
      	 	
              (xxviii)

            	
              whether
                the Mortgage Loan is subject to a prepayment penalty, the prepayment
                penalty term and the method of calculation of the penalty amount;
                and

            

    

     

    
      	 	
              (xxix)

            	
              the
                respective Loan Group.

            

    

     

    Information
      set forth in clauses (ii) and (iii) above regarding each Mortgagor and the
      related Mortgaged Property shall be confidential and the Trustee (or Master
      Servicer) shall not disclose such information except to the extent disclosure
      may be required by any law or regulatory or administrative authority;
provided,
      however,
      that the
      Trustee may disclose on a confidential basis any such information to its agents,
      attorneys and any auditors in connection with the performance of its
      responsibilities hereunder.

    

    The
      Mortgage Loan Schedule, as in effect from time to time, shall also set forth
      the
      following information with respect to the Mortgage Loans in the aggregate and
      by
      Loan Group 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 Loan Rate of the Mortgage Loans; and (4) the weighted
      average remaining months to maturity of the Mortgage Loans. The Mortgage Loan
      Schedule shall be amended from time to time by the Seller in accordance with
      the
      provisions of this Agreement.

     

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

     

    “Mortgaged
      Property”:
      Either
      of (x) the fee simple or leasehold interest in real property, together with
      improvements thereto including any exterior improvements to be completed within
      120 days of disbursement of the related Mortgage Loan proceeds, or (y) in the
      case of a Cooperative Loan, the related Cooperative Shares and Proprietary
      Lease, securing the indebtedness of the Mortgagor under the related Mortgage
      Loan.

     

    “Mortgagor”:
      The
      obligor on a Mortgage Note.

     

    “Net
      Interest Shortfall”:
      With
      respect to any Distribution Date, the excess of the Interest Shortfall, if
      any,
      for such Distribution Date over the sum of (i) Interest Shortfalls paid by
      the
      Servicers under the related Servicing Agreements with respect to such
      Distribution Date and (ii) Compensating Interest Payments made with respect
      to
      such Distribution Date.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    “Net
      Liquidation Proceeds”:
      With
      respect to any Liquidated Mortgage Loan or any other disposition of related
      Mortgaged Property (including REO Property) the related Liquidation Proceeds
      net
      of Advances, related Servicing Advances, Master Servicing Fee, related Servicing
      Fees and any other accrued and unpaid servicing fees received and retained
      in
      connection with the liquidation of such Mortgage Loan or Mortgaged Property,
      and
      any related Retained Interest.

     

    “Net
      Loan 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 Loan
      Rate for such Mortgage Loan minus
      the
      related Servicing Fee Rate, Master Servicing Fee Rate and Retained Rate, if
      any.

     

    “Net
      WAC”:
      With
      respect to each Loan Group and any Distribution Date, the weighted average
      of
      the Net Loan Rates of the Mortgage Loans in that Loan Group, as of the first
      day
      of the related Due Period (or, in the case of the first Distribution Date,
      as of
      the Cut-Off Date), weighted on the basis of their related Stated Principal
      Balances as of the first day of the related Due Period (or, in the case of
      the
      first Distribution Date, as of the Cut-off Date).

     

    “Non-Offered
      Certificates”:
      The
      Class 1A-2, Class 1-AX, Class 2A-2, Class 2-AX, Class 3A-2, Class 3-AX, Class
      4A-2, Class 4-AX, Class B-1, Class B-2 and Class B-3 Certificates.

     

    “Nonrecoverable”:
      The
      determination by the Master Servicer, as successor servicer, or the related
      Servicer in respect of a delinquent Mortgage Loan that if it were to make an
      Advance in respect of thereof, such amount would not be recoverable from any
      collections or other recoveries (including Liquidation Proceeds) on such
      Mortgage Loan.

     

    “Notional
      Certificate”:
      Any
      Class of Interest-Only Certificates.

     

    “Officers’
      Certificate”:
      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
      the Seller, the Master Servicer or the Depositor, as applicable.

     

    “One-Month
      LIBOR”:
      The
      average of interbank offered rates for one month U.S. dollar deposits in the
      London market based on quotations of major banks.

     

    “One-Month
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Month LIBOR index.

     

    “One-Year
      CMT”:
      The
      weekly average yield on United States Treasury securities adjusted to a constant
      maturity of one year as published by the Federal Reserve Board in Statistical
      Release H.15(519).

     

    “One-Year
      CMT Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Year CMT Index. 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    “One-Year
      LIBOR”:
      The
      average of interbank offered rates for one-year U.S. dollar deposits in the
      London market based on quotations of major banks.

     

    “One-Year
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Year LIBOR index.

     

    “One-Year MTA”:
      The
      twelve-month average yields on United States Treasury securities adjusted to
      a
      constant maturity of one year as published by the Federal Reserve Board in
      Statistical Release H.15(519).

     

    “One-Year MTA
      Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the One-Year MTA index.

     

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

     

    “Optional
      Securities Purchase Date”:
      The
      first Distribution Date or thereafter that the aggregate Stated Principal
      Balance of the Mortgage Loans as of the end of the immediately preceding Due
      Period is equal to or less than 20% of the Cut-off Date Aggregate Principal
      Balance.

     

    “Optional
      Securities Purchase Right”:
      The
      right of TMI to purchase the outstanding Certificates in accordance with Section
      6.06.

     

    “Original
      Applicable Credit Support Percentage”:
      With
      respect to each Class of Subordinate Certificates, the corresponding percentage
      set forth below opposite its Class designation:

     

    
      	
              Class
                B-1

            	
              4.00%

            
	
              Class
                B-2

            	
              2.60%

            
	
              Class
                B-3

            	
              1.80%

            
	
              Class
                B-4

            	
              1.45%

            
	
              Class
                B-5

            	
              0.85%

            
	
              Class
                B-6

            	
              0.65%

            

    

     

    “Original
      Class Certificate Notional Balance”:
      With
      respect to each Class of Interest-Only Certificates, the corresponding Class
      Certificate Notional Balance set forth opposite the Class designation in the
      Preliminary Statement. 

     

    “Original
      Class Certificate Principal Balance”:
      With
      respect to each Class of Certificates (other than the Interest-Only
      Certificates), the corresponding Class Certificate Principal Balance set forth
      opposite the Class designation of such Class in the Preliminary Statement.
      

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    “Original
      Subordinated Principal Balance”:
      The
      aggregate of the Original Class Certificate Principal Balances of the Classes
      of
      Subordinate Certificates.

     

    “OTS”:
      The
      Office of Thrift Supervision.

     

    “Outstanding
      Mortgage Loan”:
      As of
      any Due Date, a Mortgage Loan with a Stated Principal Balance greater than
      zero,
      that was not the subject of a prepayment in full prior to such Due Date and
      that
      did not become a Liquidated Mortgage Loan prior to such Due Date.

     

    “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.

     

    “Pass-Through
      Rate”:
      With
      respect to each Class of Certificates and each Accrual Period related to any
      Distribution Date, the rate set forth below:

     

    
      	 	
              (i)

            	
              Up
                to and including the Distribution Date in December 2010, the Pass-Through
                Rate for the Class 1A-1 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 5.2130% and (ii) the Net WAC
                for Loan
                Group 1. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 1-A1 Certificates shall be equal to the Net WAC for Loan
                Group
                1.

            

    

     

    
      	 	
              (ii)

            	
              Up
                to and including the Distribution Date in December 2010, the Pass-Through
                Rate for the Class 1A-2 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 6.2410% and (ii) the Net WAC
                for Loan
                Group 1. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 1-A2 Certificates shall be equal to the Net WAC for Loan
                Group
                1.

            

    

     

    
      	 	
              (iii)

            	
              Up
                to and including the Distribution Date in December 2010, the Pass-Through
                Rate for the Class 1-AX Certificates with respect to any Distribution
                Date
                shall be equal to the excess of (i) the Net WAC for Loan Group 1
                and (ii)
                the weighted average of the Pass-Through Rates for the Class 1A-1
                and
                Class 1A-2 Certificates. For any Distribution Date thereafter, the
                Pass-Through Rate of the Class 1-AX Certificates shall equal
                zero.

            

    

     

    
      	 	
              (iv)

            	
              Up
                to and including the Distribution Date in January 2013, the Pass-Through
                Rate for the Class 2A-1 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 5.5158% and (ii) the Net WAC
                for Loan
                Group 2. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 2-A1 Certificates shall be equal to the Net WAC for Loan
                Group
                2.

            

    

     

    
      	 	
              (v)

            	
              Up
                to and including the Distribution Date in January 2013, the Pass-Through
                Rate for the Class 2A-2 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 6.3950% and (ii) the Net WAC
                for Loan
                Group 2. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 2-A2 Certificates shall be equal to the Net WAC for Loan
                Group
                2.

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    
      	 	
              (vi)

            	
              Up
                to and including the Distribution Date in January 2013, the Pass-Through
                Rate for the Class 2-AX Certificates with respect to any Distribution
                Date
                shall be equal to the excess of (i) the Net WAC for Loan Group 2
                and (ii)
                the weighted average of the Pass-Through Rates for the Class 2A-1
                and
                Class 2A-2 Certificates. For any Distribution Date thereafter, the
                Pass-Through Rate of the Class 2-AX Certificates shall equal
                zero.

            

    

     

    
      	 	
              (vii)

            	
              Up
                to and including the Distribution Date in November 2014, the Pass-Through
                Rate for the Class 3A-1 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 5.7760% and (ii) the Net WAC
                for Loan
                Group 3. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 3-A1 Certificates shall be equal to the Net WAC for Loan
                Group
                3.

            

    

     

    
      	 	
              (viii)

            	
              Up
                to and including the Distribution Date in November 2014, the Pass-Through
                Rate for the Class 3A-2 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 6.4570% and (ii) the Net WAC
                for Loan
                Group 3. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 3-A2 Certificates shall be equal to the Net WAC for Loan
                Group
                3.

            

    

     

    
      	 	
              (ix)

            	
              Up
                to and including the Distribution Date in November 2014, the Pass-Through
                Rate for the Class 3-AX Certificates with respect to any Distribution
                Date
                shall be equal to the excess of (i) the Net WAC for Loan Group 3
                and (ii)
                the weighted average of the Pass-Through Rates for the Class 3A-1
                and
                Class 3A-2 Certificates. For any Distribution Date thereafter, the
                Pass-Through Rate of the Class 3-AX Certificates shall equal
                zero.

            

    

     

    
      	 	
              (x)

            	
              Up
                to and including the Distribution Date in November 2017, the Pass-Through
                Rate for the Class 4A-1 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 6.2570% and (ii) the Net WAC
                for Loan
                Group 4. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 4-A1 Certificates shall be equal to the Net WAC for Loan
                Group
                4.

            

    

     

    
      	 	
              (xi)

            	
              Up
                to and including the Distribution Date in November 2017, the Pass-Through
                Rate for the Class 4A-2 Certificates with respect to any Distribution
                Date
                shall be equal to the lesser of (i) 6.4320% and (ii) the Net WAC
                for Loan
                Group 4. For any Distribution Date thereafter, the Pass-Through Rate
                for
                the Class 4-A2 Certificates shall be equal to the Net WAC for Loan
                Group
                4.

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      	 	
              (xii)

            	
              Up
                to and including the Distribution Date in November 2017, the Pass-Through
                Rate for the Class 4-AX Certificates with respect to any Distribution
                Date
                shall be equal to the excess of (i) the Net WAC for Loan Group 4
                and (ii)
                the weighted average of the Pass-Through Rates for the Class 4A-1
                and
                Class 4A-2 Certificates. For any Distribution Date thereafter, the
                Pass-Through Rate of the Class 4-AX Certificates shall equal
                zero.

            

    

     

    
      	 	
              (xiii)

            	
              The
                Pass-Through Rate for the Class A-R Certificates with respect to
                any
                Distribution Date shall be equal to the Net WAC for Loan Group
                1.

            

    

     

    
      	 	
              (xiv)

            	
              The
                Pass-Through Rate for the Class B-1, Class B-2, Class B-3, Class
                B-4,
                Class B-5 and Class B-6 Certificates with respect to any Distribution
                Date
                shall be equal to the Subordinate Certificate Pass-Through
                Rate.

            

    

     

    “Paying
      Agent”:
      Any
      paying agent appointed pursuant to Section 6.05 hereof.

     

    “PCAOB”:
      The
      Public Company Accounting Oversight Board.

     

    “Percentage
      Interest”:
      With
      respect to any Certificate other than a Residual Certificate, a fraction,
      expressed as a percentage, the numerator of which is the Initial Certificate
      Principal Balance or Initial Certificate Notional Balance, as applicable,
      represented by such Certificate and the denominator of which is the Original
      Class Certificate Principal Balance or Original Class Certificate Notional
      Balance, as applicable, of the related Class. With respect to the Residual
      Certificate, 100%.

     

    “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 or managed by the
      Depositor, the Master Servicer, the Trustee or any of their respective
      Affiliates or for which an Affiliate of the Trustee serves as an
      advisor:

     

    (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 the Master Servicer or their agents 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 its ultimate parent has a short-term
      uninsured debt rating in one of the two highest available rating categories
      of
      each Rating Agency and (B) any other demand or time deposit or deposit which
      is
      fully insured by the FDIC;

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    (iii) repurchase
      obligations 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 or higher by the Rating Agencies;

     

    (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, the District of
      Columbia or any State thereof and that are rated by each Rating Agency 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) that is rated by each Rating Agency in its highest
      short-term unsecured debt rating available at the time of such
      investment;

     

    (vi) units
      of
      money market funds (which may be 12b-1 funds, as contemplated by the Commission
      under the Investment Company Act of 1940) registered under the Investment
      Company Act of 1940 including funds managed or advised by the Trustee, the
      Master Servicer or an affiliate thereof having the highest applicable rating
      from each Rating Agency rating such investment; and

     

    (vii) if
      previously confirmed in writing to the Securities Administrator, any other
      demand, money market or time deposit, or any other obligation, security or
      investment, as may be acceptable to each Rating Agency in writing as a permitted
      investment of funds backing securities having ratings equivalent to its highest
      initial rating of the Senior 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 a
      non-U.S. Person.

     

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

     

    “Physical
      Certificates”:
      The
      Residual Certificates.

     

    “Pool
      Balance”:
      As to
      any Distribution Date, the aggregate of the Stated Principal Balances, as of
      the
      Close of Business on the first day of the month preceding the month in which
      such Distribution Date occurs, of the Mortgage Loans in all Loan Groups that
      were Outstanding Mortgage Loans on that day.

     

    “Prepayment
      Penalty Amount”:
      With
      respect to any Mortgage Loan and each Distribution Date, all premiums or
      charges, if any, paid by Mortgagors under the related Mortgage Notes as a result
      of full or partial Principal Prepayments collected by the applicable Servicer
      during the immediately preceding Prepayment Period, but only to the extent
      required to be remitted to the Master Servicer on the applicable Servicer
      Remittance Date under the terms of the related Servicing Agreement and as
      provided on the Mortgage Loan Schedule.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    “Prepayment
      Period”:
      With
      respect to any Distribution Date, the calendar month preceding the month in
      which such Distribution Date occurs.

     

    “Primary
      Insurance Policy”:
      Mortgage guaranty insurance, if any, on an individual Mortgage Loan, as
      evidenced by a policy or certificate.

     

    “Principal
      Balance”:
      As to
      any Mortgage Loan, other than a Liquidated Mortgage Loan, and any day, the
      related Cut-Off Date Principal Balance, minus
      all
      collections credited against the Principal Balance of such Mortgage Loan after
      the Cut-Off Date. For purposes of this definition, a Liquidated Mortgage Loan
      shall be deemed to have a Principal Balance equal to the Principal Balance
      of
      the related Mortgage Loan as of the final recovery of related Liquidation
      Proceeds and a Principal Balance of zero thereafter. As to any REO Property
      and
      any day, the Principal Balance of the related Mortgage Loan immediately prior
      to
      such Mortgage Loan becoming REO Property.

     

    “Principal
      Deficiency Amount”:
      For
      any Distribution Date and for any Undercollateralized Group, the excess, if
      any,
      of the aggregate Class Certificate Principal Balance of such Undercollateralized
      Group immediately prior to such Distribution Date over the sum of the Principal
      Balances of the Mortgage Loans in the related Loan Group immediately prior
      to
      such Distribution Date.

     

    “Principal
      Distribution Amount”:
      With
      respect to each Loan Group and any Distribution Date, the sum of (a) each
      scheduled payment of principal collected or advanced on the related Mortgage
      Loans by the related Servicer or the Master Servicer, as successor servicer,
      in
      respect of the related Due Period, (b) that portion of the Purchase Price,
      representing principal of any repurchased or purchased Mortgage Loan in that
      Loan Group, deposited to the Distribution Account during the related Prepayment
      Period, (c) the principal portion of any related Substitution Adjustments
      with respect to that Loan Group deposited in the Distribution Account during
      the
      related Prepayment Period, (d) the principal portion of all Insurance
      Proceeds received during the related Prepayment Period with respect to Mortgage
      Loans in that Loan Group that are not yet Liquidated Mortgage Loans,
      (e) the principal portion of all Net Liquidation Proceeds received during
      the related Prepayment Period with respect to Liquidated Mortgage Loans in
      that
      Loan Group (other than Recoveries), (f) all Principal Prepayments in part
      or in full on Mortgage Loans in that Loan Group applied by the Servicers or
      the
      Master Servicer during the related Prepayment Period, (g) all Recoveries
      received during the related Prepayment Period and (h) on the Distribution
      Date on which the Trust is to be terminated pursuant to Section 10.01 hereof,
      that portion of the Termination Price in respect of principal for that Loan
      Group minus
      any
      Capitalization Reimbursement Amounts for that Distribution Date.

     

    “Principal
      Prepayment”:
      Any
      payment of principal made by the Mortgagor on a Mortgage Loan that is received
      in advance of its scheduled Due Date and that 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.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    “Private
      Certificates”:
      Collectively, the Class B-4, Class B-5 and Class B-6 Certificates to be
      privately offered by the Initial Purchaser through the Private Placement
      Memorandum.

     

    “Private
      Placement Memorandum”:
      The
      Private Placement Memorandum dated March 3, 2008, relating to the Class B-4,
      Class B-5 and Class B-6 Certificates.

     

    “Pro
      Rata
      Share”:
      As to
      any Distribution Date and any Class of Subordinate Certificates, the portion
      of
      the Subordinate Principal Distribution Amount allocable to such Class, equal
      to
      the product of the (a) Subordinate Principal Distribution Amount on such date
      and (b) a fraction, the numerator of which is the related Class Certificate
      Principal Balance of that Class and the denominator of which is the aggregate
      of
      the Class Certificate Principal Balances of all the Classes of Subordinate
      Certificates.

     

    “Proprietary
      Lease”:
      With
      respect to any Cooperative Unit, a lease or occupancy agreement between a
      Cooperative Corporation and a holder of related Cooperative Shares.

     

    “Prospectus”:
      The
      Prospectus Supplement, together with the accompanying prospectus, dated July
      30,
      2007.

     

    “Prospectus
      Supplement”:
      That
      certain Prospectus Supplement dated March 2, 2008, as supplemented by the
      supplement dated March 3, 2008, relating to the initial offering and sale of
      the
      Class 1A-1, Class 2A-1, Class 3A-1, Class 4A-1 and Class A-R Certificates by
      Greenwich Capital Markets, Inc., Bear, Stearns & Co. Inc. and Credit Suisse
      Securities (USA) LLC.

     

    “Purchase
      Account”:
      The
      account created and maintained by the Securities Administrator pursuant to
      Section 6.06 hereof.

     

    “Purchase
      Price”:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section 2.03, Section 3.25 or Section 10.01 hereof, and as
      confirmed by an Officers’ Certificate from the Seller to the Trustee, an amount
      equal to the sum of (i) 100% of the Principal Balance thereof as of the
      date of purchase (or such other price as is provided in Section 10.01),
plus
      (ii) in the case of (x) a Mortgage Loan, accrued interest on such
      Principal Balance at the applicable Loan Rate from the Due Date as to which
      interest was last covered by a payment by the Mortgagor or an Advance by a
      Servicer or Master Servicer, as successor servicer, 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 Principal Balance at the
      applicable Loan Rate from the Due Date as to which interest was last covered
      by
      a payment by the Mortgagor or an Advance by a Servicer or Master Servicer,
      as
      successor servicer, 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 Advances that as
      of the date of purchase had been distributed as or to cover REO Imputed
      Interest, plus
      (iii) any unreimbursed Servicing Advances and any unpaid Expense Fees
      allocable to such Mortgage Loan or REO Property, plus
      (iv) in the case of a Mortgage Loan required to be purchased pursuant to
      Section 2.03 hereof, any costs and damages incurred by the Trust in connection
      with any violation by such Mortgage Loan of any predatory- or abusive-lending
      laws.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    “Qualified
      Insurer”:
      A
      mortgage guaranty insurance company duly qualified as such under the laws of
      the
      state of its principal place of business and each state having jurisdiction
      over
      such insurer in connection with the insurance policy issued by such insurer,
      duly authorized and licensed in such states to transact a mortgage guaranty
      insurance business in such states and to write the insurance provided by the
      insurance policy issued by it, so long as the claims paying ability of which
      is
      acceptable to each Rating Agency for pass-through certificates having the same
      ratings as the Certificates rated by each Rating Agency as of the Closing Date.
      Any replacement insurer with respect to a Mortgage Loan must have at least
      as
      high a claims paying ability rating as the insurer it replaces had on the
      Closing Date.

     

    “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, and not more than 10% less than, the Principal Balance of the Deleted
      Mortgage Loan as of the Due Date in the calendar month during which the
      substitution occurs, (ii) have a maximum loan rate not less than the
      Maximum Loan Rate of the Deleted Mortgage Loan, (iii)  have a gross margin
      equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (iv)
      have the same Index as the Deleted Mortgage Loan, (v) have its next adjustment
      date not more than two months after the next Adjustment Date of the Deleted
      Mortgage Loan, (vi) have a remaining term to maturity not greater than (and
      not
      more than one year less than) that of the Deleted Mortgage Loan, (vii) be
      current as of the date of substitution, (viii) have a Loan-to-Value Ratio
      and a Loan-to-Collateral Value Ratio as of the date of substitution equal to
      or
      lower than the Loan-to-Value Ratio and the Loan-to-Collateral Value Ratio,
      respectively, of the Deleted Mortgage Loan as of such date, (ix) have been
      underwritten or re-underwritten in accordance with the same or substantially
      similar underwriting criteria and guidelines as the Deleted Mortgage Loan,
      (x)
      is of the same or better credit quality as the Deleted Mortgage Loan and
      (xi) conform to each representation and warranty set forth in Section 2.04
      hereof 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 terms described in clause (vi) hereof
      shall be determined on the basis of weighted average remaining term to maturity,
      the Loan-to-Value Ratio and Loan-to-Collateral Value Ratio described in clause
      (viii) 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 (x) hereof must be satisfied as to each
      Qualified Substitute Mortgage Loan or in the aggregate, as the case may
      be.

     

    “Rating
      Agency”:
      Each
      of Fitch and S&P and any respective successors thereto. If Fitch, S&P or
      their respective successors shall no longer be in existence, “Rating Agency”
shall include such nationally recognized statistical rating agency or agencies,
      or other comparable Person or Persons, as shall have been designated by the
      Depositor, notice of which designation shall be given to the Trustee and the
      Master Servicer.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    “Realized
      Loss”:
      With
      respect to any Liquidated Mortgage Loan, the amount of loss realized equal
      to
      the portion of the Principal Balance remaining unpaid after application of
      all
      Net Liquidation Proceeds in respect of such Liquidated Mortgage Loan.

     

    “Recognition
      Agreement”:
      With
      respect to any Cooperative Loan, an agreement between the related Cooperative
      Corporation and the originator of such Mortgage Loan to establish the rights
      of
      such originator in the related Cooperative Property.

     

    “Record
      Date”:
      With
      respect to each Distribution Date and all Classes of Certificates, the last
      Business Day of the calendar month preceding the month in which such
      Distribution Date occurs, except as set forth in Section 6.06(c).

     

    “Recovery”:
      With
      respect to any Distribution Date and a Mortgage Loan that became a Liquidated
      Mortgage Loan in a month preceding the related Prepayment Period to such
      Distribution Date and with respect to which the related Realized Loss was
      allocated to one or more Classes of Certificates, an amount received in respect
      of such Liquidated Mortgage Loan during the related Prepayment Period, net
      of
      any reimbursable expenses.

     

    “Refinancing
      Mortgage Loan”:
      Any
      Mortgage Loan originated in connection with the refinancing of an existing
      mortgage loan.

     

    “Regular
      Certificate”:
      Any
      Class 1A-1, Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class
      4A-1 and Class 4A-2 Certificates, the Interest-Only Certificates and the
      Subordinate Certificates.

     

    “Regulation
      AB”:
      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 clarifications and interpretations 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.

     

    “Relevant
      Servicing Criteria”:
      The
      Servicing Criteria applicable to each party, as set forth on Exhibit Q attached
      hereto and any similar exhibit set forth in each Servicing Agreement in respect
      of each Servicer. 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 (in its capacity
      as Custodian) or each 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 or similar state or local law.

     

    “Relief
      Act Reductions”:
      With
      respect to any Distribution Date and any Mortgage Loan as to which there has
      been a reduction in the amount of interest collectible thereon for the most
      recently ended Due Period as a result of the application of the Relief Act,
      the
      amount, if any, by which (i) interest collectible on that Mortgage Loan during
      such Due Period is less than (ii) one month’s interest on the Stated Principal
      Balance of such Mortgage Loan at the Loan Rate for such Mortgage Loan before
      giving effect to the application of the Relief Act.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

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

     

    “REMIC
      Opinion”:
      An
      Independent Opinion of Counsel, to the effect that the proposed action described
      therein would not cause an Adverse REMIC Event.

     

    “REMIC
      Provisions”:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits which appear at Section 860A through 860G of Subchapter
      M of
      Chapter 1 of the Code, and related provisions, and regulations and rulings
      promulgated thereunder, as the foregoing may be in effect from time to
      time.

     

    “Remittance
      Report”:
      The
      Master Servicer’s Remittance Report to the Securities Administrator providing
      information with respect to each Mortgage Loan which is provided no later than
      the second Business Day following each Determination Date and which shall
      contain such information as may be agreed upon by the Master Servicer and the
      Securities Administrator and which shall be sufficient to enable the Securities
      Administrator to prepare the related Distribution Date Statement.

     

    “Rents
      from Real Property”:
      With
      respect to any REO Property, gross income of the character described in Section
      856(d) of the Code.

     

    “REO
      Account”:
      The
      account or accounts maintained by a Servicer in respect of an REO Property
      pursuant to the related Servicing Agreement.

     

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

     

    “REO
      Imputed Interest”:
      As to
      any REO Property, for any calendar month during which such REO Property was
      at
      any time part of the Trust Fund, one month’s interest at the applicable Net Loan
      Rate on the 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 Due 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 hereof that is allocable to such REO Property) or
      otherwise, net of any portion of such amounts (i) payable pursuant to the
      applicable provisions of the related Servicing Agreement in respect of the
      proper operation, management and maintenance of such REO Property or (ii)
      payable or reimbursable to the applicable Servicer pursuant to the applicable
      provisions of the related Servicing Agreement for unpaid Master Servicing Fees
      and Servicing Fees in respect of the related Mortgage Loan and unreimbursed
      Servicing Advances and 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.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    “REO
      Property”:
      A
      Mortgaged Property acquired by the applicable Servicer on behalf of the Trust
      through foreclosure or deed-in-lieu of foreclosure in accordance with the
      applicable provisions of the related Servicing Agreement.

     

    “Reportable
      Event”:
      As
      defined in Section 3.19(c).

     

    “Reporting
      Servicer”: As
      defined in Section 3.19(b).

     

    “Request
      for Release”:
      A
      release signed by a Servicing Officer, in the form of Exhibit F attached
      hereto.

     

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

     

    “Residual
      Certificate”:
      The
      Class A-R Certificate.

     

    “Responsible
      Officer”:
      When
      used with respect to the Trustee or the Securities Administrator, any director,
      any vice president, any assistant vice president, any associate assigned to
      the
      Corporate Trust Office (or similar group) or any other officer of the Trustee
      customarily performing functions similar to those performed by any of the above
      designated officers 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.

     

    “Restricted
      Classes”:
      As
      defined in Section 5.01(e).

     

    “Restricted
      Global Security”:
      As
      defined in Section 6.01.

     

    “Retained
      Interest”:
      As to
      any Employee Loans originated by Thornburg and each Distribution Date, interest
      accrued on the Principal Balance thereof at the Retained Rate.

     

    “Retained
      Interest Holder”:
      With
      respect to each Employee Loan, the Seller or any successor in interest by
      assignment or otherwise.

     

    “Retained
      Rate”:
      As of
      the Cut-off Date, and for each Due Period thereafter, 0.00% per annum;
provided,
      however,
      if the
      related Mortgagor of the Employee Loan ceases to be an employee or a director
      of
      Thornburg or its Affiliates, the amount of the increase in the per annum rate
      set forth in the related Mortgage Note.

     

    “S&P”:
      Standard & Poor’s Rating Services (a division of The McGraw-Hill Companies,
      Inc.).

     

    “Sarbanes
      Oxley Act”:
      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).

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    “Sarbanes-Oxley
      Certification”:
      A
      written certification covering the activities of all Servicing Function
      Participants (excluding the Custodian) and the Servicers and 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 superseded 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 Securities and
      Exchange 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 than the 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 Seller
      following a negotiation in good faith to determine how to comply with any such
      new requirements.

     

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

     

    “Securities
      Administrator”:
      Wells
      Fargo Bank, N.A., or its successor in interest, or any successor securities
      administrator appointed as herein provided.

     

    “Security
      Agreement”:
      With
      respect to any Cooperative Loan, the agreement between the owner of the related
      Cooperative Shares and the originator of the related Mortgage Note that defines
      the terms of the security interest in such Cooperative Shares and the related
      Proprietary Lease.

     

    “Seller”:
      Thornburg, in its capacity as seller under this Agreement.

     

    “Senior
      Certificate”:
      One of
      the Class 1A-1, Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2,
      Class 4A-1, Class 4A-2, Class A-R, Class 1-AX, Class 2-AX, Class 3-AX and Class
      4-AX Certificates.

     

    “Senior
      Certificate Group”:
      Any of
      (a) the Class 1A-1, Class 1A-2, Class 1-AX and Class A-R Certificates with
      respect to Loan Group 1, (b) the Class 2A-1, Class 2A-2 and Class 2-AX
      Certificates with respect to Loan Group 2, (c) the Class 3A-1, Class 3A-2 and
      Class 3-AX Certificates with respect to Loan Group 3 and (d) the Class 4A-1,
      Class 4A-2 and Class 4-AX Certificates with respect to Loan Group
      4.

     

    “Senior
      Certificateholder”:
      Any
      Holder of a Senior Certificate.

     

    “Senior
      Credit Support Depletion Date”:
      The
      date on which the Class Certificate Principal Balance of each Class of
      Subordinate Certificates has been reduced to zero.

     

    “Senior
      Percentage”:
      With
      respect to each Loan Group and any Distribution Date, the percentage equivalent
      of a fraction the numerator of which is the aggregate of the Class Certificate
      Principal Balances of the Senior Certificate Group relating to that Loan Group
      immediately prior to such Distribution Date and the denominator of which is
      the
      Loan Group Balance of the related Loan Group for such Distribution Date;
provided,
      however,
      that on
      any Distribution Date after a Senior Termination Date has occurred with respect
      to a Loan Group, the Senior Percentage for that Loan Group will be equal to
      0%
      and; provided,
      further, that
      on
      any Distribution Date after a Senior Termination Date has occurred with respect
      to two or more Loan Groups, the Senior Percentage of the remaining Senior
      Certificates is the percentage equivalent of a fraction, the numerator of which
      is the aggregate of the Certificate Principal Balances of remaining Classes
      of
      Senior Certificates immediately prior to such date and the denominator of which
      is the aggregate of the Certificate Principal Balances of all Classes of
      Certificates immediately prior to such date. 

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    “Senior
      Prepayment Percentage”:
      With
      respect to each Loan Group any Distribution Date before March 2015, 100%. Except
      as provided herein, the Senior Prepayment Percentage for each of Loan Group
      for
      any Distribution Date occurring on or after March 2015 as follows: (i) from
      March 2015 through February 2016, the related Senior Percentage plus 70% of
      the
      related Subordinate Percentage for such Distribution Date; (ii) from March
      2016 through February 2017, the related Senior Percentage plus 60% of the
      related Subordinate Percentage for such Distribution Date; (iii) from March
      2017 through February 2018, the related Senior Percentage plus 40% of the
      related Subordinate Percentage for such Distribution Date; (iv) from March
      2018 through
      February 2019, the related Senior Percentage plus 20% of the related Subordinate
      Percentage for such Distribution Date; and (v) from and after March 2019,
      the related Senior Percentage for such Distribution Date; provided,
      however, that
      there shall be no reduction in the Senior Prepayment Percentage for any such
      Loan Group on a Distribution Date, unless the Step Down Conditions are satisfied
      with respect to such Distribution Date; and provided,
      further,
      that if
      on any Distribution Date occurring on or after the Distribution Date in March
      2015, the Senior Percentage for any Loan Group exceeds the initial Senior
      Percentage for such Loan Group, the related Senior Prepayment Percentage for
      such Distribution Date will again equal 100%.

     

    Notwithstanding
      the above, (i) if on any Distribution Date prior to March 2011 the Two Times
      Test is satisfied, the Senior Prepayment Percentage for each Loan Group will
      equal the related Senior Percentage for such Distribution Date plus 50% of
      an
      amount equal to 100% minus the related Senior Percentage for such Distribution
      Date and (ii) if
      on any
      Distribution Date in or after March 2011 the Two Times Test is satisfied, the
      Senior Prepayment Percentage for each Loan Group will equal the related Senior
      Percentage for such Distribution Date.

     

    “Senior
      Principal Distribution Amount”:
      With
      respect to each Loan Group and any Distribution Date, the sum of: 

     

    (1) the
      related Senior Percentage of all amounts described in clauses (a) through (d)
      of
      the definition of “Principal Distribution Amount” for such Distribution
      Date;

     

    (2) with
      respect to each Mortgage Loan in that Loan Group which became a Liquidated
      Mortgage Loan during the related Prepayment Period, the lesser of

     

    
      	 	
              (x)

            	
              the
                related Senior Percentage of the Stated Principal Balance of that
                Mortgage
                Loan; and

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    
      	 	
              (y)

            	
              the
                related Senior Prepayment Percentage of the amount of the Net Liquidation
                Proceeds allocable to principal received with respect to that Mortgage
                Loan; and

            

    

     

    (3) the
      related Senior Prepayment Percentage of the amounts described in clause (f)
      of
      the definition of “Principal Distribution Amount;”

     

    provided,
      however,
      that on
      any Distribution Date after a Senior Termination Date has occurred with respect
      to two or more Loan Groups, the Senior Principal Distribution Amount for the
      remaining Senior Certificate Group will be calculated pursuant to the above
      formula based on all the Mortgage Loans rather than the Mortgage Loans in the
      related Loan Group only.

     

    “Senior
      Termination Date”:
      For
      each Loan Group, the Distribution Date on which the aggregate of the Class
      Certificate Principal Balances of the Senior Certificate Group relating to
      that
      Loan Group is reduced to zero.

     

    “Servicer”:
      Each
      of the several primary servicers of the Mortgage Loans as set forth and as
      individually defined in Exhibit N hereto and any successors thereto or
      replacement therefor. 

     

    “Servicer
      Remittance Date”:
      With
      respect to each Mortgage Loan, the 18th day of each month, or the next Business
      Day if such 18th day is not a Business Day or if provided in the related
      Servicing Agreement, the preceding Business Day if such 18th
      day is
      not a Business Day.

     

    “Service(s)(ing)”:
      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 1108 of Regulation AB. Any
      uncapitalized occurrence of this term shall have the meaning commonly understood
      by participants in the residential mortgage-backed securitization
      market.

     

    “Servicing
      Account”:
      Any
      account established and maintained for the benefit of the Master Servicer or
      the
      Trust by a Servicer with respect to the related Mortgage Loans and any REO
      Property, pursuant to the terms of the respective Servicing
      Agreement.

     

    “Servicing
      Advances”:
      With
      respect to any Servicer or the Master Servicer (including the Trustee in its
      capacity as successor Master Servicer), all customary, reasonable and necessary
      “out of pocket” costs and expenses (including reasonable attorneys’ fees and
      expenses) incurred by any Servicer or the Master Servicer, as successor
      servicer, in the performance of its servicing obligations hereunder, including,
      but not limited to, the cost of (i) the preservation, restoration, inspection
      and protection of the Mortgaged Property, (ii) any enforcement or judicial
      proceedings, including foreclosures, (iii) the management and liquidation of
      the
      REO Property and (iv) compliance with the obligations under Article III hereof
      or the related Servicing Agreements.

     

    “Servicing
      Agreement”:
      The
      servicing agreements relating to the Mortgage Loans as set forth in Exhibit
      N
      hereto, servicing arrangements for any Mortgage Loans under the Seller’s
      Correspondent Sellers Guide, and any other servicing agreement entered into
      between a successor servicer and the Seller or the Trustee on behalf of the
      Trust pursuant to the terms hereof.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    “Servicing
      Criteria”:
      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 Servicer and each Mortgage Loan serviced by such Servicer and
      for any calendar month, the fee payable to such Servicer determined pursuant
      to
      the related Servicing Agreement.

     

    “Servicing
      Fee Rate”:
      With
      respect to each Mortgage Loan, the per annum servicing fee rate set forth on
      the
      Mortgage Loan Schedule.

     

    “Servicing
      Function Participant”:
      Any
      Sub-Servicer or Subcontractor, other than each Servicer, the Master Servicer,
      the Trustee, the Custodian and the Securities Administrator, in each case that
      is participating in the servicing function within the meaning of Regulation
      AB.

     

    “Servicing
      Officer”: Any
      officer of a Master Servicer or 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 Master
      Servicer to the Trustee and the Depositor on the Closing Date, as such list
      may
      from time to time be amended.

     

    “Seven-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans set forth on Schedule III hereto.

     

    “Significant
      Modification”:
      As
      defined in Section 3.25.

     

    “Significant
      Modification Loan”:
      As
      defined in Section 3.25.

     

    “Significant
      Modification Loan Schedule”:
      With
      respect to each Distribution Date, a schedule prepared by the Seller pursuant
      to
      Section 3.25 listing each Modifiable Mortgage Loan that has become a Significant
      Modification Loan during the immediately preceding Due Period, and the Purchase
      Price for each such Significant Modification Mortgage Loan.

     

    “Six-Month
      LIBOR”:
      The
      average of interbank offered rates for six-month U.S. dollar deposits in the
      London market based on quotations of major banks.

     

    “Six-Month
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the Six-Month LIBOR index.

     

    “Startup
      Day”:
      As
      defined in Section 9.01(b) hereof.

     

    “Stated
      Principal Balance”:
      With
      respect to any Mortgage Loan: (a) as of the Distribution Date in March 2008,
      the
      Cut-Off Date Principal Balance of such Mortgage Loan,  (b) thereafter as of
      any date of determination up to and including the Distribution Date on which
      the
      proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
      would be distributed, the outstanding principal balance of such Mortgage Loan
      as
      of the Cut-Off Date, as shown in the Mortgage Loan Schedule, minus,
      in the
      case of each Mortgage Loan, the sum of (i) the principal portion of each
      Monthly Payment due on a Due Date subsequent to the Cut-Off Date, whether or
      not
      received, (ii) all Principal Prepayments received after the Cut-Off Date,
      to the extent distributed pursuant to Section 5.01 before such date of
      determination and (iii) all Liquidation Proceeds and Insurance Proceeds
      applied by the applicable Servicer as recoveries of principal in accordance
      with
      the applicable provisions of the related Servicing Agreement, to the extent
      distributed pursuant to Section 5.01 before such date of determination; and
      (c) as of any date of determination subsequent to the Distribution Date on
      which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
      Loan would be distributed, zero. With respect to any REO Property: (x) as
      of any date of determination up to and including the Distribution Date on which
      the proceeds, if any, of a Liquidation Event with respect to such REO Property
      would be distributed, an amount (not less than zero) equal to the Stated
      Principal Balance of the related Mortgage Loan as of the date on which such
      REO
      Property was acquired on behalf of the Trust, minus
      the
      aggregate amount of REO Principal Amortization in respect of such REO Property
      for all previously ended calendar months, to the extent distributed pursuant
      to
      Section 5.01 before such date of determination; and (y) as of any date
      of determination subsequent to the Distribution Date on which the proceeds,
      if
      any, of a Liquidation Event with respect to such REO Property would be
      distributed, zero.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    “Step
      Down Conditions”:
      As of
      any Distribution Date on which any decrease in any Senior Prepayment Percentage
      may apply, (i) the outstanding Principal Balance of all Mortgage Loans that
      are
      60 days or more Delinquent (including for this purpose any such Mortgage Loan
      in
      foreclosure, in bankruptcy, any related REO Property, and any Mortgage Loan
      that
      has been modified for the 12-month period following the modification of such
      Mortgage Loan and thereafter calculated at its current delinquency status),
      averaged over the preceding six month period, as a percentage of the aggregate
      of the Class Certificate Principal Balances of the Classes of Subordinate
      Certificates on such Distribution Date, does not equal or exceed 50% and
      (ii) cumulative Realized Losses (including for this purpose the amount of
      principal or interest which has been forgiven in connection with a modification
      of terms of a Mortgage Loan made between the related Servicer and the Mortgagor
      as part of a loss mitigation strategy in the related Due Period) with respect
      to
      all of the Mortgage Loans do not exceed:

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after the seventh anniversary until the
                eighth
                anniversary of the first Distribution Date, 30% of the aggregate
                Class
                Certificate Principal Balance of the Subordinate Certificates as
                of the
                Closing Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after the eighth anniversary until the
                ninth
                anniversary of the first Distribution Date, 35% of the aggregate
                Class
                Certificate Principal Balance of the Subordinate Certificates as
                of the
                Closing Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after the ninth anniversary until the
                tenth
                anniversary of the first Distribution Date, 40% of the aggregate
                Class
                Certificate Principal Balance of the Subordinate Certificates as
                of the
                Closing Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Distribution Date on or after the tenth anniversary until the
                eleventh
                anniversary of the first Distribution Date, 45% of the aggregate
                Class
                Certificate Principal Balance of the Subordinate Certificates as
                of the
                Closing Date, and

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
      	 	
              ·

            	
              for
                any Distribution Date on or after the eleventh anniversary of the
                first
                Distribution Date, 50% of the aggregate Class Certificate Principal
                Balance of the Subordinate Certificates as of the Closing
                Date.

            

    

     

    “Subcontractor”:
      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 or the Securities Administrator.

     

    “Subordinate
      Certificate”:
      Any
      one of the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 or Class B-6
      Certificates.

     

    “Subordinate
      Certificate Pass-Through Rate”:
      With
      respect to each Class of Subordinate Certificates and any Distribution Date,
      the
      per annum rate equal to the weighted average (weighted on the basis of the
      related Subordinate Component) of the Net WACs for Loan Group 1, Loan Group
      2,
      Loan Group 3 and Loan Group 4.

     

    “Subordinate
      Component”:
      With
      respect to each Loan Group and any Distribution Date, the excess of the related
      Loan Group Balance for such Distribution Date over the aggregate Class
      Certificate Principal Balance of the related Senior Certificate Group
      immediately preceding such Distribution Date. The designation “1,” “2,” “3” or
“4” appearing after the corresponding Loan Group designation is used to indicate
      a Subordinate Component allocable to Loan Group 1, Loan Group 2, Loan Group
      3
      and Loan Group 4, respectively.

     

    “Subordinate
      Percentage”:
      With
      respect to each Loan Group and any Distribution Date, the difference between
      100% and the related Senior Percentage for such Loan Group and Distribution
      Date; provided,
      however,
      that on
      any Distribution Date occurring after a Senior Termination Date has occurred
      with respect to two Loan Groups, the Subordinate Percentage will represent
      the
      entire interest of the Subordinate Certificates in the Mortgage Loans and will
      equal the difference between 100% and the related Senior Percentage for such
      Distribution Date.

     

    “Subordinate
      Prepayment Percentage”:
      With
      respect to each Loan Group and any Distribution Date, the difference between
      100% and the related Senior Prepayment Percentage for such Distribution
      Date.

     

    “Subordinate
      Principal Distribution Amount”:
      With
      respect to each Loan Group and any Distribution Date, an amount equal to the
      sum
      of:

     

    (1) the
      related Subordinate Percentage of all amounts described in clauses (a) through
      (d) of the definition of “Principal Distribution Amount” for such Loan Group and
      Distribution Date;

     

    (2) with
      respect to each Mortgage Loan in such Loan Group that became a Liquidated
      Mortgage Loan during the related Prepayment Period, the amount of the Net
      Liquidation Proceeds allocated to principal received with respect thereto
      remaining after application thereof pursuant to clause (2) of the definition
      of
“Senior Principal Distribution Amount” for such Loan Group and Distribution
      Date, up to the related Subordinate Percentage of the Stated Principal Balance
      of such Mortgage Loan; and

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    (3) the
      related Subordinated Prepayment Percentage of all amounts described in clause
      (f) of the definition of “Principal Distribution Amount” for such Loan Group and
      Distribution Date;

     

    provided,
      however,
      that on
      any Distribution Date occurring after a Senior Termination Date has occurred
      with respect to two Loan Groups, the Subordinate Principal Distribution Amount
      will not be calculated by Loan Group but will equal the amount calculated
      pursuant to the formula set forth above based on the applicable Subordinate
      Percentage or Subordinate Prepayment Percentage, as applicable, for such
      Distribution Date with respect to all the Mortgage Loans rather than the
      Mortgage Loans in the related Loan Group only.

     

    “Sub-Servicer”:
      Any
      Person, including without limitation Cenlar, that (i) services Mortgage Loans
      on
      behalf of any Servicer, the Master Servicer, the Securities Administrator,
      the
      Trustee or the Custodian and (ii) is responsible for the performance (whether
      directly or through sub-servicers or Subcontractors) of Servicing functions
      required to be performed under this Agreement, any related Servicing Agreement
      or any sub-servicing agreement that are identified in Item 1122(d) of Regulation
      AB.

     

    “Sub-Servicing
      Fee”:
      With
      respect to each Mortgage Loan sub-serviced by Cenlar, an amount equal to
      one-twelfth the product of (i) the Sub-Servicing Fee Rate and (ii) the Stated
      Principal Balance of such Mortgage Loan as of the first day of the related
      month

     

    “Sub-Servicing
      Fee Rate”:
      With
      respect to any Mortgage Loan, sub-serviced by Cenlar and serviced by Thornburg
      on behalf of the Trust Fund, the “Cenlar Subservicing Fee Rate” as defined in
      the Sub-Servicing Acknowledgement Agreement, dated as of March 1, 2002, by
      and
      between Thornburg, as Servicer, and Cenlar, as Sub-Servicer, as amended by
      the
      Amendment to Sub-Servicing Acknowledgement Agreement, dated as of December
      1,
      2002, by the Second Amendment to Subservicing Acknowledgement Agreement, dated
      as of January 1, 2006, by the Third Amendment to Subservicing Acknowledgement,
      dated as of August 1, 2007, by the Fourth Amendment to Subservicing
      Acknowledgment Agreement, dated as of October 1, 2007, by the Fifth Amendment
      to
      Subservicing Acknowledgement Agreement dated as of February 1, 2008, and by
      the
      Sixth Amendment to the Subservicing Acknowledgement Agreement, dated as of
      February 1, 2008, including the related Transfer Notice, dated February 28,
      2008, from Thornburg, as Seller, to Thornburg, as Servicer, and Cenlar, as
      Sub-Servicer.

     

    “Substitution
      Adjustment”:
      As
      defined in Section 2.03(d) hereof.

     

    “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 the REMIC Taxable
      Income or Net Loss Allocation, or any successor forms, to be filed on behalf
      of
      each of the REMICs created hereunder 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.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    “10-K
      Filing Deadline”:
      As
      defined in Section 3.19(b).

     

    “Ten-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans set forth on Schedule IV hereto.

     

    “Termination
      Price”:
      As
      defined in Section 10.01(a) hereof. 

     

    “Thornburg”:
      Thornburg Mortgage Home Loans, Inc., a Delaware corporation, and its successors
      and assigns.

     

    “Three-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule II
      hereto.

     

    “TMI”:
      Thornburg Mortgage, Inc., a Maryland corporation, and its successors and
      assigns.

     

    “Transfer”:
      Any
      direct or indirect transfer or sale of any Ownership Interest in a Residual
      Certificate.

     

    “Transfer
      Affidavit”:
      As
      defined in Section 6.02(e)(ii) hereof.

     

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

     

    “Trust”:
      Thornburg Mortgage Securities Trust 2008-1, a common law trust created under
      the
      Agreement and governed under New York State law. 

     

    “Trust
      Fund”:
      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, such Trust Fund consisting of: (i) such Mortgage Loans 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
      (but not including any Prepayment Penalty Amounts), (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); (v) the Depositor's security interest in
      the
      Additional Collateral, (vi) the Distribution Account (subject to the last
      sentence of this definition), 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, (vii) all right, title
      and
      interest of the Depositor in and to each security or pledge agreement in respect
      of Additional Collateral and (viii) all right, title and interest of the
      Seller in and to each of the Servicing Agreements. Notwithstanding the
      foregoing, however, the Trust Fund specifically excludes (1) all payments and
      other collections of interest and principal due on the Mortgage Loans on or
      before the Cut-Off Date and principal received before the Cut-Off Date (except
      any principal collected as part of a payment due after the Cut-Off Date), (2)
      all income and gain realized from Permitted Investments of funds on deposit
      in
      the Distribution Account, (3) any Prepayment Penalty Amounts and (4) any
      Retained Interest.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    “Trustee”:
      LaSalle Bank National Association, a national banking association, not in its
      individual capacity but solely as trustee, its successors or assigns, or any
      successor trustee appointed as herein provided.

     

    “Trustee
      Fee”:
      The
      annual on-going fee payable by the Master Servicer on behalf of the Trust to
      the
      Trustee from the Master Servicer Fee pursuant to the terms of the separate
      fee
      letter agreement between the Trustee and the Master Servicer relating to the
      Thornburg Mortgage Securities Trust 2008-1.

     

    “Two
      Times Test”:
      As to
      any Distribution Date, (i) the Aggregate Subordinate Percentage is at least
      two
      times the Aggregate Subordinate Percentage as of the Closing Date; (ii) the
      aggregate of the Principal Balances of all Mortgage Loans that are Delinquent
      60
      days or more (including for this purpose any such Mortgage Loan in foreclosure,
      in bankruptcy, any related REO Property, and any Mortgage Loan that has been
      modified for the 12-month period following the modification of such Mortgage
      Loan and thereafter calculated at its current delinquency status), averaged
      over
      the preceding six-month period, as a percentage of the aggregate of the Class
      Certificate Principal Balances of the Subordinate Certificates, does not equal
      or exceed 50%; and (iii) on or after the Distribution Date in March 2011,
      cumulative Realized Losses (including for this purpose any amounts of principal
      and interest which have been forgiven in connection with a modification of
      terms
      of a Mortgage Loan made between the related Servicer and the Mortgagor as part
      of a loss mitigation strategy in the related Due Period) do not exceed 30%
      of
      the Original Subordinated Principal Balance, or prior to the Distribution Date
      in March 2011, cumulative Realized Losses (including for this purpose any
      amounts of principal and interest which have been forgiven in connection with
      a
      modification of terms of a Mortgage Loan made between the related Servicer
      and
      the Mortgagor as part of a loss mitigation strategy in the related Due Period)
      do not exceed 20% of the Original Subordinated Principal Balance.

     

    “Undercollateralized
      Group”:
      With
      respect to any Distribution Date, any Group 1 Certificates, Group 2
      Certificates, Group 3 Certificates or Group 4 Certificates as to which the
      aggregate Class Certificate Principal Balance thereof, after giving effect
      to
      distributions pursuant to Section 5.01(a) on such date, is greater than the
      Loan
      Group Balance of the related Loan Group for such Distribution Date.

     

    “Underwriter’s
      Exemption”:
      Prohibited Transaction Exemption 90-59 (Exemption Application No. D-8374),
      as
      amended by PTE 97-34 (Exemption Application No. D-10245 and D-10246) and by
      PTE
      2000-58 (Exemption Application No. D-10829) and PTE 2002-41 (Exemption
      Application No. D-11077), as amended (or any successor thereto), or any
      substantially similar administrative exemption granted by the U.S. Department
      of
      Labor.

     

    “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 on such Mortgaged Property.

     

    
      
        
        

      

      
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    “United
      States Person”
or
      “U.S.
      Person”:
      A
      citizen or resident of the United States, a corporation, partnership or other
      entity treated as a corporation or partnership for federal income tax purposes
      (other than a partnership that is not treated as a U.S. Person pursuant to
      any
      applicable Treasury regulations) created or organized in, or under the laws
      of,
      the United States, any state thereof or the District of Columbia, or an estate
      the income of which from sources without the United States is includible 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,
      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 authority to control all substantial decisions of the trust. The
      term “United States” shall have the meaning set forth in Section 7701 of
      the Code or successor provisions.

     

    “Unpaid
      Interest Shortfall Amount”:
      With
      respect to each Class of Certificates and (i) the first Distribution Date,
      zero, and (ii) any Distribution Date after the first Distribution Date, the
      amount, if any, by which (1)(a) the Monthly Interest Distributable Amount for
      that Class for the immediately preceding Distribution Date exceeds (b) the
      aggregate amount distributed on that Class in respect of such Monthly Interest
      Distributable Amount on the preceding Distribution Date plus
      (2) any
      such shortfalls remaining unpaid from prior Distribution Dates.

     

    “Upper
      Tier REMIC”:
      As
      described in the Preliminary Statement.

     

    “Value”:
      With
      respect to any Mortgage Loan and the related Mortgaged Property, the lesser
      of:

     

    (i) the
      value
      of such Mortgaged Property as determined by an appraisal made for the 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
      

     

    (ii) the
      purchase price paid for the related Mortgaged Property by the Mortgagor with
      the
      proceeds of the Mortgage Loan; 

     

    provided,
      however,
      that in
      the case of a Refinancing Mortgage Loan, such value of the Mortgaged Property
      is
      based solely upon the value determined by an appraisal made for the originator
      of such Refinancing Mortgage Loan at the time of origination by an appraiser
      who
      met the minimum requirements of Fannie Mae and Freddie Mac.

     

    “Voting
      Rights”:
      The
      portion of the voting rights of all of the Certificates which is allocated
      to
      any Certificate. 95% of the voting rights shall be allocated among the Classes
      of Certificates (other than the Class A-R Certificates, Class 1-AX Certificate,
      Class 2-AX Certificates, Class 3-AX Certificates and Class 4-AX Certificates),
      pro
      rata,
      based
      on a fraction, expressed as a percentage, the numerator of which is the Class
      Certificate Principal Balance of such Class and the denominator of which is
      the
      aggregate of the Class Certificate Principal Balances then outstanding and
      1%
      voting rights shall be allocated to the Holders of each of the Class A-R
      Certificate, Class 1-AX Certificate, Class 2-AX Certificates, Class 3-AX
      Certificates and Class 4-AX Certificates; provided,
      further,
      that
      when the Class Certificate Notional Balance of any Class of Interest-Only
      Certificate has been reduced to zero, the voting rights allocated to such Class
      shall be allocated pro
      rata
      to the
      Holders of the other Regular Certificates; provided,
      further,
      when
      none of the Regular Certificates are outstanding, 100% of the voting rights
      shall be allocated to the Holder of the Class A-R Certificate. The voting rights
      allocated to a Class of Certificates shall be allocated among all Holders of
      such Class, pro
      rata,
      based
      on a fraction the numerator of which is the Certificate Principal Balance (or
      Certificate Notional Balance, in the case of Interest-Only Certificates) of
      each
      Certificate of such Class and the denominator of which is the Class Certificate
      Principal Balance (or Certificate Notional Balance, in the case of Interest-Only
      Certificates) of such Class; provided,
      however,
      that any
      Certificate registered in the name of the Master Servicer, the Securities
      Administrator, the Trustee or any of their respective affiliates shall not
      be
      included in the calculation of Voting Rights as long as other Certificates
      registered in the names of other entities remain outstanding.

     

    
      
        
        

      

      
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    “Writedown
      Amount”:
      The
      reduction described in Section 5.03(c).

     

    SECTION
      1.02. Accounting.

     

    Unless
      otherwise specified herein, for the purpose of any definition or calculation,
      whenever amounts are required to be netted, subtracted or added or any
      distributions are taken into account such definition or calculation and any
      related definitions or calculations shall be determined without duplication
      of
      such functions.

     

    ARTICLE
      II

     

    CONVEYANCE
      OF MORTGAGE LOANS;

    ORIGINAL
      ISSUANCE OF CERTIFICATES

     

     

    SECTION
      2.01. Conveyance
      of Mortgage Loans.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee without recourse
      for the benefit of the Certificateholders all the right, title and interest
      of
      the Depositor, including any security interest therein for the benefit of the
      Depositor, in and to (i) each Mortgage Loan (other than the right to receive
      any
      Retained Interest or any Prepayment Penalty Amounts) identified on the Mortgage
      Loan Schedule, including the related Cut-Off Date Principal Balance, all
      interest due thereon after the Cut-Off Date and all collections in respect
      of
      interest and principal due after the Cut-Off Date; (ii) all the Depositor’s
      right, title and interest in and to the Distribution Account and all amounts
      from time to time credited to and to the proceeds of the Distribution Account;
      (iii) any real property that secured each such Mortgage Loan and that has been
      acquired by foreclosure or deed in lieu of foreclosure; (iv) the Depositor’s
      interest in any insurance policies in respect of the Mortgage Loans; (v) the
      Depositor’s security interest in the Additional Collateral; (vi) all proceeds of
      any of the foregoing; and (vii) all other assets included or to be included
      in
      the Trust Fund. Such assignment includes all interest and principal due to
      the
      Depositor or the Master Servicer after the Cut-Off Date with respect to the
      Mortgage Loans.

     

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Mortgage Loan
      Purchase Agreement, including all rights of the Seller under the Servicing
      Agreements to the extent assigned in the Mortgage Loan Purchase Agreement.
      The
      Trustee hereby accepts such assignment, and shall be entitled to exercise all
      rights of the Depositor under the Mortgage Loan Purchase Agreement and all
      rights of the Seller under the Servicing Agreements as if, for such purpose,
      it
      were the Depositor or the Seller, as applicable, including the Seller’s right to
      enforce remedies for breaches of representations and warranties and delivery
      of
      the Mortgage Loan Documents. The foregoing sale, transfer, assignment, set-over,
      deposit and conveyance does not and is not intended to result in creation or
      assumption by the Trustee of any obligation of the Depositor, the Seller or
      any
      other Person in connection with the Mortgage Loans or any other agreement or
      instrument relating thereto except as specifically set forth
      herein.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    In
      addition, with respect to any Additional Collateral Mortgage Loan, the Depositor
      does hereby transfer, assign, set-over and otherwise convey to the Trustee
      without recourse (except as provided herein) (i) its rights as assignee under
      any security agreements, pledge agreements or guarantees relating to the
      Additional Collateral supporting any Additional Collateral Mortgage Loan, (ii)
      its security interest in and to any Additional Collateral and (iii) its right
      to
      receive payments in respect of any Additional Collateral Mortgage Loan pursuant
      to the related Servicing Agreement.

     

    It
      is
      agreed and understood by the Depositor and the Trustee that it is not intended
      that any Mortgage Loan to be included in the Trust Fund be a (i) “High-Cost Home
      Loan” as defined in the New Jersey Home Ownership Act effective November 27,
      2003; (ii) “High-Cost Home Loan” as defined in the New Mexico Home Loan
      Protection Act effective January 1, 2004; (iii) “High-Cost Home Mortgage Loan”
as defined in the Massachusetts Predatory Home Loan Practices Act effective
      November 7, 2004 or (iv) “High Cost Home Loan” as defined in the Indiana Home
      Loan Practices Act effective January 1, 2005.

     

    In
      connection with such transfer and assignment, the Seller, on behalf of the
      Depositor, does hereby deliver on the Closing Date, unless otherwise specified
      in this Section 2.01, to, and deposit with the Trustee, or the Custodian as
      its
      designated agent, the following documents or instruments with respect to each
      Mortgage Loan (a “Mortgage
      File”)
      so
      transferred and assigned:

     

    
      	 	
              (i)

            	
              the
                original Mortgage Note, endorsed either on its face or by allonge
                attached
                thereto in blank or in the following form: “Pay to the order of LaSalle
                Bank National Association, as Trustee for Thornburg Mortgage Securities
                Trust 2008-1, without recourse”, or with respect to any lost Mortgage
                Note, an original Lost Note Affidavit stating that the original mortgage
                note was lost, misplaced or destroyed, together with a copy of the
                related
                mortgage note; provided,
                however,
                that such substitutions of Lost Note Affidavits for original Mortgage
                Notes may occur only with respect to Mortgage Loans the aggregate
                Cut-Off
                Date Principal Balance of which is less than or equal to 2% of the
                Cut-Off
                Date Aggregate Principal Balance;

            

    

     

    
      	 	
              (ii)

            	
              originals
                or copies of any guarantee, security agreement or pledge agreement
                relating to any Additional Collateral, if applicable, and executed
                in
                connection with the Mortgage Note, assigned to the Trustee on behalf
                of
                the Trust;

            

    

     

    
      
        
        

      

      
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              (iii)

            	
              except
                as provided below, for each Mortgage Loan that is not a MERS Mortgage
                Loan, the original Mortgage, or a copy thereof certified by the public
                recording office in which such Mortgage has been recorded, and in
                the case
                of each MERS Mortgage Loan, the original Mortgage, noting the presence
                of
                the MIN for that Mortgage Loan and either language indicating that
                the
                Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, or
                if such
                Mortgage Loan was not a MOM Loan at origination, the original Mortgage
                and
                the assignment to MERS, in each case 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
                or, if
                such Mortgage or power of attorney has been submitted for recording
                but
                has not been returned from the applicable public recording office,
                has
                been lost or is not otherwise available, a certified copy of such
                Mortgage
                or power of attorney, as the case may be, and that the original of
                such
                Mortgage has been forwarded to the public recording office, or, in
                the
                case of a Mortgage that has been lost, a copy thereof (certified
                as
                provided for under the laws of the appropriate jurisdiction) and
                a written
                Opinion of Counsel (delivered at the Seller’s expense) acceptable to the
                Trustee and the Depositor that an original recorded Mortgage is not
                required to enforce the Trustee’s interest in the Mortgage
                Loan;

            

    

     

    
      	 	
              (iv)

            	
              the
                original or a copy of each assumption, modification or substitution
                agreement, if any, relating to the Mortgage Loans, or, as to any
                assumption, modification or substitution agreement which cannot be
                delivered on or prior to the Closing Date because of a delay caused
                by the
                public recording office where such assumption, modification or
                substitution agreement has been delivered for recordation, a photocopy
                of
                such assumption, modification or substitution agreement, pending
                delivery
                of the original thereof, together with an Officer’s Certificate of the
                Seller certifying that the copy of such assumption, modification
                or
                substitution agreement delivered to the Trustee (or its custodian)
                on
                behalf of the Trust is a true copy and that the original of such
                agreement
                has been forwarded to the public recording
                office;

            

    

     

    
      	 	
              (v)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                an
                original Assignment of Mortgage, in form and substance acceptable
                for
                recording. The Mortgage shall be assigned to “LaSalle Bank National
                Association, as Trustee for Thornburg Mortgage Securities Trust 2008-1,
                without recourse” or in blank;

            

    

     

    
      	 	
              (vi)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                an
                original copy of any intervening Assignment of Mortgage showing a
                complete
                chain of assignments, or, in the case of an intervening Assignment
                of
                Mortgage that has been lost, a written Opinion of Counsel (delivered
                at
                the Seller’s expense) acceptable to the Trustee that such original
                intervening Assignment of Mortgage is not required to enforce the
                Trustee’s interest in the Mortgage
                Loans;

            

    

     

    
      
        
        

      

      
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              (vii)

            	
              the
                original or a copy of lender’s title insurance policy;
                and

            

    

     

    
      	 	
              (viii)

            	
              with
                respect to any Cooperative Loan, the Cooperative Loan
                Documents.

            

    

    

    In
      connection with the assignment of any MERS Mortgage Loan, the Seller agrees
      that
      it will take (or shall cause the applicable Servicer to take), at the expense
      of
      the Seller (with the cooperation of the Depositor, the Trustee and the Master
      Servicer), such actions as are necessary to cause the MERS® System to indicate
      that such Mortgage Loans have been assigned by the Seller to the Trustee in
      accordance with this Agreement for the benefit of the Certificateholders by
      including (or deleting, in the case of Mortgage Loans that are repurchased
      in
      accordance with this Agreement) in such computer files the information required
      by the MERS® System to identify the series of the Certificates issued in
      connection with the transfer of such Mortgage Loans to the Thornburg Mortgage
      Securities Trust 2008-1.

     

    With
      respect to each Cooperative Loan the Seller, on behalf of the Depositor does
      hereby deliver to the Trustee (or Custodian) the related Cooperative Loan
      Documents and the Seller will take (or shall cause the applicable Servicer
      to
      take), at the expense of the Seller (with the cooperation of the Depositor,
      the
      Trustee and the Master Servicer) such actions as are necessary under applicable
      law (including but not limited to the relevant UCC) in order to perfect the
      interest of the Trustee in the related Mortgaged Property.

     

    Assignments
      of each Mortgage with respect to each Mortgage Loan that is not a MERS Mortgage
      Loan (other than a Cooperative Loan) shall be recorded; provided,
      however,
      that
      such assignments need not be recorded if, in the Opinion of Counsel (which
      must
      be from Independent Counsel and not at the expense of the Trust or the Trustee)
      acceptable to the Trustee, each Rating Agency and the Master Servicer, recording
      in such states is not required to protect the Trust’s interest in the related
      Mortgage Loans; provided,
      however,
      notwithstanding the delivery of any Opinion of Counsel, each assignment of
      Mortgage shall be submitted for recording by the Seller (or the Seller will
      cause the applicable Servicer to submit each such assignment for recording),
      at
      the cost and expense of the Seller, in the manner described above, at no expense
      to the Trust or Trustee, upon the earliest to occur of (1) reasonable direction
      by the Majority Certificateholders, (2) the occurrence of a bankruptcy or
      insolvency relating to the Seller or the Depositor, or (3) with respect to
      any
      one Assignment of Mortgage, the occurrence of a bankruptcy, insolvency or
      foreclosure relating to the Mortgagor under the related Mortgage. Subject to
      the
      preceding sentence, as soon as practicable after the Closing Date (but in no
      event more than three months thereafter except to the extent delays are caused
      by the applicable recording office), the Seller shall properly record (or the
      Seller will cause the applicable Servicer to properly record), at the expense
      of
      the Seller (with the cooperation of the Depositor, the Trustee and the Master
      Servicer), in each public recording office where the related Mortgages are
      recorded, each assignment referred to in Section 2.01(v) above with respect
      to a
      Mortgage Loan that is not a MERS Mortgage Loan.

     

    The
      Trustee agrees to execute and deliver to the Depositor on or prior to the
      Closing Date an acknowledgment of receipt of the original Mortgage Note (with
      any exceptions noted), substantially in the form attached as Exhibit G-1
      hereto.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    If
      the
      original lender’s title insurance policy, or a copy thereof, was required to be
      but was not delivered pursuant to Section 2.01(vii) above, the Seller shall
      deliver or cause to be delivered to the Trustee the original or a copy of a
      written commitment or interim binder or preliminary report of title issued
      by
      the title insurance or escrow company, with the original or a copy thereof
      to be
      delivered to the Trustee, promptly upon receipt thereof, but in any case within
      175 days of the Closing Date. The Seller shall deliver or cause to be delivered
      to the Trustee, promptly upon receipt thereof, any other documents constituting
      a part of a Mortgage File received with respect to any Mortgage Loan sold to
      the
      Depositor by the Seller and required to be delivered to the Trustee, including,
      but not limited to, any original documents evidencing an assumption or
      modification of any Mortgage Loan. 

     

    For
      Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
      and prior to the Closing Date, the Seller, in lieu of delivering the above
      documents, herewith delivers to the Trustee, or to the Custodian on behalf
      of
      the Trustee, an Officer’s Certificate which shall include a statement to the
      effect that all amounts received in connection with such prepayment that are
      required to be deposited in the Distribution Account have been so deposited.
      All
      original documents that are not delivered to the Trustee on behalf of the Trust
      shall be held by the Master Servicer or the applicable Servicer in trust for
      the
      Trustee, for the benefit of the Trust and the Certificateholders.

     

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File, the Seller shall have 90 days
      to
      cure such defect or deliver such missing document to the Trustee. If the Seller
      does not cure such defect or deliver such missing document within such time
      period, the Seller shall either repurchase or substitute for such Mortgage
      Loan
      in accordance with Section 2.03 hereof.

     

    The
      Depositor herewith delivers to the Trustee an executed copy of the Mortgage
      Loan
      Purchase Agreement.

     

    SECTION
      2.02. Acceptance
      by Trustee.

     

    The
      Trustee hereby accepts its appointment as Custodian hereunder and acknowledges
      the receipt, subject to the provisions of Section 2.01 and subject to the review
      described below and any exceptions noted on the exception report described
      in
      the next paragraph below, of the documents referred to in Section 2.01 above
      and
      all other assets included in the definition of “Trust Fund” and declares that,
      in its capacity as Custodian, it holds and will hold such documents and the
      other documents delivered to it constituting a Mortgage File, and that it holds
      or will hold all such assets and such other assets included in the definition
      of
“Trust Fund” in trust for the exclusive use and benefit of all present and
      future Certificateholders.

     

    The
      Trustee further agrees, for the benefit of the Certificateholders, to review
      each Mortgage File delivered to it and to certify and deliver to the Depositor,
      the Seller and each Rating Agency an interim certification in substantially
      the
      form attached hereto as Exhibit G-2, within 90 days after the Closing Date
      (or,
      with respect to any document delivered after the Startup Day, within 45 days
      of
      receipt and with respect to any Qualified Substitute Mortgage, within five
      Business Days after the assignment thereof) that, as to each Mortgage Loan
      listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
      full
      or any Mortgage Loan 

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    specifically
      identified in the exception report annexed thereto as not being covered by
      such
      certification), (i) all documents required to be delivered to it pursuant
      Section 2.01 of this Agreement are in its possession, (ii) such
      documents have been reviewed by it and have not been mutilated, damaged or
      torn
      and relate to such Mortgage Loan and (iii) based on its examination and
      only as to the foregoing, the information set forth in the Mortgage Loan
      Schedule that corresponds to items (i), (ii), (iii), (xiii), (xiv) and (xviii)
      of the Mortgage Loan Schedule (to the extent such items are required to be
      delivered to it as part of the Mortgage Files pursuant to Section 2.01)
      accurately reflects information set forth in the Mortgage File. It is herein
      acknowledged that, in conducting such review, the Trustee is under no duty
      or
      obligation to inspect, review or examine any such documents, instruments,
      certificates or other papers to determine that they are genuine, enforceable,
      or
      appropriate for the represented purpose or that they have actually been recorded
      or that they are other than what they purport to be on their face.

     

    No
      later
      than 180 days after the Closing Date, the Trustee shall deliver to the Depositor
      and the Seller a final certification in the form annexed hereto as Exhibit
      G-3
      evidencing the completeness of the Mortgage Files, with any applicable
      exceptions noted thereon.

     

    If,
      in
      the process of reviewing the Mortgage Files and making or preparing, as the
      case
      may be, the certifications referred to above, the Trustee finds any document
      or
      documents constituting a part of a Mortgage File to be missing or not conforming
      to the requirements set forth herein, at the conclusion of its review the
      Trustee (or the Custodian as its designated agent) shall promptly notify the
      Seller, the Depositor and the Master Servicer. In addition, upon the discovery
      by the Seller or the Depositor (or upon receipt by the Trustee of written
      notification of such breach) of a breach of any of the representations and
      warranties made by the Seller in the Mortgage Loan Purchase Agreement in respect
      of any Mortgage Loan that materially adversely affects such Mortgage Loan or
      the
      interests of the related Certificateholders in such Mortgage Loan, the party
      discovering such breach shall give prompt written notice to the other parties
      to
      this Agreement.

     

    The
      Depositor and the Trustee intend that the assignment and transfer herein
      contemplated constitute a sale of the Mortgage Loans, the related Mortgage
      Notes
      and the related documents, conveying good title thereto free and clear of any
      liens and encumbrances, from the Depositor to the Trustee in trust for the
      benefit of the Certificateholders and that such property not be part of the
      Depositor’s estate or property of the Depositor in the event of any insolvency
      by the Depositor. In the event that such conveyance is deemed to be, or to
      be
      made as security for, a loan, the parties intend that the Depositor shall be
      deemed to have granted and does hereby grant to the Trustee a first priority
      perfected security interest in all of the Depositor’s right, title and interest
      in and to the Mortgage Loans, the related Mortgage Notes and the related
      documents, and that this Agreement shall constitute a security agreement under
      applicable law.

     

    SECTION
      2.03. Repurchase
      or Substitution of Mortgage Loans by the Seller.

     

    (a) Upon
      discovery or receipt of written notice that a document does not comply with
      the
      requirements of Section 2.01 hereof, or that a document is missing from, a
      Mortgage File or of the breach by the Seller of any representation, warranty
      or
      covenant under the Mortgage Loan Purchase Agreement or in Section 2.04 or
      Section 2.08 hereof in respect of any Mortgage Loan which materially adversely
      affects the value of that Mortgage Loan or the interest therein of the

     

    
      
        
        

      

      
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    Certificateholders,
      the Trustee (or the Custodian as its designated agent) shall promptly notify
      the
      Seller of such noncompliance, missing document or breach and request that the
      Seller deliver such missing document or cure such noncompliance or breach within
      90 days from the date that the Seller was notified of such missing document,
      noncompliance or breach, and if the Seller does not deliver such missing
      document or cure such noncompliance or breach in all material respects during
      such period, the Trustee shall enforce the Seller’s obligation under the
      Mortgage Loan Purchase Agreement and cause the Seller to repurchase that
      Mortgage Loan from the Trust Fund at the Purchase Price on or prior to the
      Determination Date following the expiration of such 90 day period (subject
      to
      Section 2.03(e) below); provided,
      however,
      that, in
      connection with any such breach that could not reasonably have been cured within
      such 90 day period, if the Seller shall have commenced to cure such breach
      within such 90 day period, the Seller shall be permitted to proceed thereafter
      diligently and expeditiously to cure the same within the additional period
      provided under the Mortgage Loan Purchase Agreement; and, provided
      further,
      that,
      in the case of the breach of any representation, warranty or covenant made
      by
      the Seller in Schedule III to the Mortgage Loan Purchase Agreement, the Seller
      shall be obligated to cure such breach or purchase the affected Mortgage Loans
      for the Purchase Price or, if the Mortgage Loan or the related Mortgaged
      Property acquired with respect thereto has been sold, then the Seller shall
      pay,
      in lieu of the Purchase Price, any excess of the Purchase Price over the Net
      Liquidation Proceeds received upon such sale. The Purchase Price for the
      repurchased Mortgage Loan or such other amount due shall be deposited in the
      Distribution Account on or prior to the next Determination Date after the
      Seller’s obligation to repurchase such Mortgage Loan arises. The Trustee, upon
      receipt of written certification from the Securities Administrator of the
      related deposit in the Distribution Account, shall release to the Seller the
      related Mortgage File and shall execute and deliver such instruments of transfer
      or assignment, in each case without recourse, as the Seller shall furnish to
      it
      and as shall be necessary to vest in the Seller any Mortgage Loan released
      pursuant hereto and the Trustee shall have no further responsibility with regard
      to such Mortgage File (it being understood that the Trustee shall have no
      responsibility for determining the sufficiency of such assignment for its
      intended purpose). In lieu of repurchasing any such Mortgage Loan as provided
      above, the Seller may cause such Mortgage Loan to be removed from the Trust
      Fund
      (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(d) below. It is understood and agreed
      that
      the obligation of the Seller 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 against the Seller respecting such
      omission, defect or breach available to the Trustee on behalf of the
      Certificateholders.

     

    The
      Trustee shall enforce the obligations of the Seller under the Mortgage Loan
      Purchase Agreement including, without limitation, any obligation of the Seller
      to purchase a Mortgage Loan on account of missing or defective documentation
      or
      on account of a breach of a representation, warranty or covenant as described
      in
      this Section 2.03(a).

     

    Any
      costs
      and expenses incurred by the Trustee enforcing the obligations of the Seller
      under this Section 2.03(a) shall be reimbursable to the Trustee from amounts
      on
      deposit in the Distribution Account.

     

    
      
        
        

      

      
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    (b) If
      pursuant to the provisions of Section 2.03(a), the Seller repurchases or
      otherwise removes from the Trust Fund a Mortgage Loan that is a MERS Mortgage
      Loan, the Seller will take (or shall cause the applicable Servicer to take),
      at
      the expense of the Seller (with the cooperation of the Depositor, the Trustee
      and the Master Servicer), such actions as are necessary either (i) cause MERS
      to
      execute and deliver an Assignment of Mortgage in recordable form to transfer
      the
      Mortgage from MERS to the Seller and shall cause such Mortgage to be removed
      from registration on the MERS® System in accordance with MERS’ rules and
      regulations or (ii) cause MERS to designate on the MERS® System the Seller or
      its designee as the beneficial holder of such Mortgage Loan.

     

    (c) [Reserved].

     

    (d) Any
      substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans
      made pursuant to Section 2.03(a) above must be effected prior to the last
      Business Day that is within two years after the Closing Date. As to any Deleted
      Mortgage Loan for which the Seller substitutes a Qualified Substitute Mortgage
      Loan or Mortgage Loans, such substitution shall be effected by the Seller
      delivering to the Trustee, for such Qualified Substitute Mortgage Loan or
      Mortgage 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 2.01 hereof (subject to the exceptions
      provided therein), together with an Officers’ Certificate stating that each such
      Qualified Substitute Mortgage Loan satisfies the definition thereof and
      specifying the Substitution Adjustment (as described below), if any, in
      connection with such substitution; provided,
      however,
      that, in
      the case of any Qualified Substitute Mortgage Loan that is a MERS Mortgage
      Loan,
      the Seller shall provide such documents and take such other action with respect
      to such Qualified Substitute Mortgage Loans as are required pursuant to Section
      2.01 hereof. The Trustee shall acknowledge receipt for such Qualified Substitute
      Mortgage Loan or Loans and, within five Business Days thereafter, shall review
      such documents as specified in Section 2.02 hereof and deliver to the related
      Servicer, with respect to such Qualified Substitute Mortgage Loan or Loans,
      a
      certification substantially in the form attached hereto as Exhibit G-2, with
      any
      exceptions noted thereon. Within 180 days of the date of substitution, the
      Trustee shall deliver to the Seller and the Master Servicer a certification
      substantially in the form of Exhibit G-3 hereto with respect to such Qualified
      Substitute Mortgage Loan or Loans, with any exceptions noted thereon. Monthly
      Payments due with respect to Qualified Substitute Mortgage Loans in the month
      of
      substitution are not part of the Trust Fund and will be retained by the Seller.
      For the month of substitution, distributions to Certificateholders will reflect
      the collections and recoveries in respect of such Deleted Mortgage Loan in
      the
      Due Period preceding the month of substitution and the Depositor or the Seller,
      as the case may be, shall thereafter be entitled to retain all amounts
      subsequently received in respect of such Deleted Mortgage Loan. The Seller
      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. 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, in the case of a substitution effected by the Seller, the
      Mortgage Loan Purchase Agreement, including, in the case of a substitution
      effected by the Seller all representations and warranties thereof included
      in
      the Mortgage Loan Purchase Agreement and all representations and warranties
      thereof set forth in Section 2.04 hereof, in each case as of the date of
      substitution.

     

    
      
        
        

      

      
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    For
      any
      month in which the Seller substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the Seller shall determine, and
      provide written certification to the Trustee and the Seller as to, the amount
      (each, a “Substitution
      Adjustment”),
      if
      any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
      exceeds the aggregate, as to each such Qualified Substitute Mortgage Loan,
      of
      the principal balance thereof as of the date of substitution, together with
      one
      month’s interest on such principal balance at the applicable Net Loan Rate. On
      or prior to the next Determination Date after the Seller’s obligation to
      repurchase the related Deleted Mortgage Loan arises, the Seller will deliver
      or
      cause to be delivered to the Securities Administrator for deposit in the
      Distribution Account an amount equal to the related Substitution Adjustment,
      if
      any, and the Trustee, upon receipt of the related Qualified Substitute Mortgage
      Loan or Loans and an acknowledgment from the Securities Administrator of its
      receipt of the deposit to the Distribution Account, shall release to the Seller
      the related Mortgage File or Files and shall execute and deliver such
      instruments of transfer or assignment, in each case without recourse, as the
      Seller shall deliver to it and as shall be necessary to vest therein any Deleted
      Mortgage Loan released pursuant hereto.

     

    In
      addition, the Seller shall obtain at its own expense and deliver to the Trustee
      an Opinion of Counsel to the effect that such substitution (either specifically
      or as a class of transactions) will not cause (a) any federal tax to be imposed
      on the Trust Fund, including without limitation, any federal tax imposed on
      “prohibited transactions” under Section 860F(a)(l) of the Code or on
“contributions after the startup date” under Section 860G(d)(l) of the Code, or
      (b) any REMIC created hereunder to fail to qualify as a REMIC at any time that
      any Certificate is outstanding. If such Opinion of Counsel cannot be delivered,
      then such substitution may only be effected at such time as the required Opinion
      of Counsel can be given.

     

    (e) Upon
      discovery by the Seller, the Master Servicer, 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
      Business Days give written notice thereof to the other parties. In connection
      therewith, the Seller shall repurchase or, subject to the limitations set forth
      in Section 2.03(d), substitute one or more Qualified Substitute Mortgage Loans
      for the affected Mortgage Loan within 90 days of the earlier of discovery or
      receipt of such notice with respect to such affected Mortgage Loan. Any such
      repurchase or substitution shall be made in the same manner as set forth in
      Section 2.03(a) above, if made by the Seller. The Trustee shall reconvey to
      the
      Seller 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.

     

    SECTION
      2.04. Representations
      and Warranties of the Seller with Respect to the Mortgage
      Loans.

     

    The
      Seller hereby represents and warrants to the Trustee for the benefit of the
      Certificateholders that the representations and warranties made by the Seller
      pursuant to Schedule III to the Mortgage Loan Purchase Agreement are hereby
      being made to the Trustee and are true and correct as of the Closing
      Date.

     

    
      
        
        

      

      
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    With
      respect to the representations and warranties incorporated in this Section
      2.04
      that are made to the best of the Seller’s knowledge or as to which the Seller
      has no knowledge, if it is discovered by the Depositor, the Seller, the Master
      Servicer or the Trustee that the substance of such representation and warranty
      is inaccurate and such inaccuracy materially and adversely affects the value
      of
      the related Mortgage Loan or the interest therein of the Certificateholders
      then, notwithstanding the Seller’s lack of knowledge with respect to the
      substance of such representation and warranty being inaccurate at the time
      the
      representation or warranty was made, such inaccuracy shall be deemed a breach
      of
      the applicable representation or warranty.

     

    Within
      90
      days of its discovery or its receipt of notice of any such missing or materially
      defective documentation or any such breach of a representation or warranty,
      the
      Seller shall promptly deliver such missing document or cure such defect or
      breach in all material respects or, in the event such defect or breach cannot
      be
      cured, the Seller shall repurchase the affected Mortgage Loan or cause the
      removal of such Mortgage Loan from the Trust Fund and substitute for it one
      or
      more Qualified Substitute Mortgage Loans, in either case, in accordance with
      Section 2.03 hereof.

     

    It
      is
      understood and agreed that the representations and warranties incorporated
      in
      this Section 2.04 shall survive delivery of the Mortgage Files to the Trustee
      and shall inure to the benefit of the Certificateholders notwithstanding any
      restrictive or qualified endorsement or assignment. Upon discovery by any of
      the
      Depositor, the Seller, the Master Servicer or the Trustee of a breach of any
      of
      the foregoing representations and warranties which materially and adversely
      affects the value of any Mortgage Loan or the interests therein of the
      Certificateholders, the party discovering such breach shall give prompt written
      notice to the other parties, and in no event later than two Business Days from
      the date of such discovery. It is understood and agreed that the obligations
      of
      the Seller set forth in Section 2.03(a) hereof to cure, substitute for or
      repurchase a related Mortgage Loan pursuant to the Mortgage Loan Purchase
      Agreement constitute the sole remedies available to the Certificateholders
      or to
      the Trustee on their behalf respecting a breach of the representations and
      warranties incorporated in this Section 2.04.

     

    SECTION
      2.05. [Reserved].

     

    SECTION
      2.06. Representations
      and Warranties of the Depositor.

     

    The
      Depositor represents and warrants to the Trust and the Trustee on behalf of
      the
      Certificateholders as follows:

     

    (i) this
      agreement constitutes a legal, valid and binding obligation of the Depositor,
      enforceable against the Depositor in accordance with its terms, except as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws now or hereafter in effect
      affecting the enforcement of creditors’ rights in general an except as such
      enforceability may be limited by general principles of equity (whether
      considered in a proceeding at law or in equity);

     

    
      
        
        

      

      
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    (ii) immediately
      prior to the sale and assignment by the Depositor to the Trustee on behalf
      of
      the Trust of each Mortgage Loan, the Depositor had good and marketable title
      to
      each Mortgage Loan (insofar as such title was conveyed to it by the Seller)
      subject to no prior lien, claim, participation interest, mortgage, security
      interest, pledge, charge or other encumbrance or other interest of any
      nature;

     

    (iii) as
      of the
      Closing Date, the Depositor has transferred all right, title and interest in
      the
      Mortgage Loans to the Trustee on behalf of the Trust;

     

    (iv) the
      Depositor has not transferred the Mortgage Loans to the Trustee on behalf of
      the
      Trust with any intent to hinder, delay or defraud any of its creditors;

     

    (v) the
      Depositor has been duly incorporated and is validly existing as a corporation
      in
      good standing under the laws of Delaware, with full corporate power and
      authority to own its assets and conduct its business as presently being
      conducted;

     

    (vi) the
      Depositor is not in violation of its certificate of incorporation or by-laws
      or
      in default in the performance or observance of any material obligation,
      agreement, covenant or condition contained in any contract, indenture, mortgage,
      loan agreement, note, lease or other instrument to which the Depositor is a
      party or by which it or its properties may be bound, which default might result
      in any material adverse changes in the financial condition, earnings, affairs
      or
      business of the Depositor or which might materially and adversely affect the
      properties or assets, taken as a whole, of the Depositor;

     

    (vii) the
      execution, delivery and performance of this Agreement by the Depositor, and
      the
      consummation of the transactions contemplated hereby, do not and will not result
      in a material breach or violation of any of the terms or provisions of, or,
      to
      the knowledge of the Depositor, constitute a default under, any indenture,
      mortgage, deed of trust, loan agreement or other agreement or instrument to
      which the Depositor is a party or by which the Depositor is bound or to which
      any of the property or assets of the Depositor is subject, nor will such actions
      result in any violation of the provisions of the certificate of incorporation
      or
      by-laws of the Depositor or, to the best of the Depositor’s knowledge without
      independent investigation, any statute or any order, rule or regulation of
      any
      court or governmental agency or body having jurisdiction over the Depositor
      or
      any of its properties or assets (except for such conflicts, breaches, violations
      and defaults as would not have a material adverse effect on the ability of
      the
      Depositor to perform its obligations under this Agreement);

     

    (viii) to
      the
      best of the Depositor’s knowledge without any independent investigation, no
      consent, approval, authorization, order, registration or qualification of or
      with any court or governmental agency or body of the United States or any other
      jurisdiction is required for the issuance of the Certificates, or the
      consummation by the Depositor of the other transactions contemplated by this
      Agreement, except such consents, approvals, authorizations, registrations or
      qualifications as (a) may be required under State securities or “blue sky” laws,
      (b) have been previously obtained or (c) the failure of which to obtain would
      not have a material adverse effect on the performance by the Depositor of its
      obligations under, or the validity or enforceability of, this Agreement;
      and

     

    
      
        
        

      

      
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    (ix) there
      are
      no actions, proceedings or investigations pending before or, to the Depositor’s
      knowledge, threatened by any court, administrative agency or other tribunal
      to
      which the Depositor is a party or of which any of its properties is the subject:
      (a) which if determined adversely to the Depositor would have a material adverse
      effect on the business, results of operations or financial condition of the
      Depositor; (b) asserting the invalidity of this Agreement or the Certificates;
      (c) seeking to prevent the issuance of the Certificates or the consummation
      by
      the Depositor of any of the transactions contemplated by this Agreement, as
      the
      case may be; or (d) which might materially and adversely affect the performance
      by the Depositor of its obligations under, or the validity or enforceability
      of,
      this Agreement.

     

    SECTION
      2.07. Issuance
      of Certificates.

     

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to it of the Mortgage Files, subject to the provisions of Sections 2.01 and
      2.02 hereof, together with the assignment to it of all other assets included
      in
      the Trust Fund, receipt of which is hereby acknowledged. Concurrently with
      such
      assignment and delivery and in exchange therefor, the Securities Administrator,
      pursuant to the written request of the Depositor executed by an officer of
      the
      Depositor, has executed, authenticated and delivered to or upon the order of
      the
      Depositor, the Certificates in authorized denominations. The interests evidenced
      by the Certificates constitute the entire beneficial ownership interest in
      the
      Trust Fund.

     

    SECTION
      2.08. Representations
      and Warranties of the Seller.

     

    The
      Seller hereby represents and warrants to the Trust and the Trustee on behalf
      of
      the Certificateholders that, as of the Closing Date or as of such date
      specifically provided herein:

     

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

     

    (ii) the
      Seller has the power and authority to hold each Mortgage Loan, to sell each
      Mortgage Loan, to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. The Seller has
      duly
      authorized the execution, delivery and performance of this Agreement, has duly
      executed and delivered this Agreement and this Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      legal, valid and binding obligation of the Seller, enforceable against it in
      accordance with its terms except as the enforceability thereof may be limited
      by
      bankruptcy, insolvency or reorganization or other similar laws in relation
      to
      the rights of creditors generally;

     

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

     

    
      
        
        

      

      
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    (iv) the
      Seller is not in violation of, and the execution and delivery of this Agreement
      by the Seller and its performance and compliance with the terms of this
      Agreement will not constitute a violation with respect to, any order or decree
      of any court or any order or regulation of any federal, state, municipal or
      governmental agency having jurisdiction over the Seller or its assets, which
      violation might have consequences that would materially and adversely affect
      the
      condition (financial or otherwise) or the operation of the Seller or its assets
      or might have consequences that would materially and adversely affect the
      performance of its obligations and duties hereunder;

     

    (v) the
      Seller does not believe, nor does it have any reason or cause to believe, that
      it cannot perform each and every covenant contained in this
      Agreement;

     

    (vi) the
      Seller has good, marketable and indefeasible title to the Mortgage Loans, free
      and clear of any and all liens, pledges, charges or security interests of any
      nature encumbering the Mortgage Loans and upon the payment of the purchase
      price
      under the Mortgage Loan Purchase Agreement by the Depositor, the Depositor
      will
      have good and marketable title to the Mortgage Notes and Mortgage Loans, free
      and clear of all liens or encumbrances;

     

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

     

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

     

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

     

    (x) the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to
      the
      Mortgage Loan Purchase Agreement are not subject to the bulk transfer or any
      similar statutory provisions.

     

    SECTION
      2.09. Covenants
      of the Seller.

     

    The
      Seller hereby covenants that, except for the transfer hereunder, the Seller
      will
      not sell, pledge, assign or transfer to any other Person, or grant, create,
      incur, assume or suffer to exist any lien on any Mortgage Loan, or any interest
      therein; the Seller will notify the Trustee, as assignee of the Depositor,
      and
      the Master Servicer of the existence of any lien on any Mortgage Loan
      immediately upon discovery thereof, and the Seller will defend the right, title
      and interest of the Trust, as assignee of the Depositor, in, to and under the
      Mortgage Loans, against all claims of third parties claiming through or under
      the Seller; provided,
      however,
      that
      nothing in this Section 2.09 shall prevent or be deemed to prohibit the Seller
      from suffering to exist upon any of the Mortgage Loans any liens for municipal
      or other local taxes and other governmental charges if such taxes or
      governmental charges shall not at the time be due and payable or if the Seller
      shall currently be contesting the validity thereof in good faith by appropriate
      proceedings and shall have set aside on its books adequate reserves with respect
      thereto.

     

    
      
        
        

      

      
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    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING

    OF
      THE MORTGAGE LOANS

     

    SECTION
      3.01. Master
      Servicer to Service and Administer the Mortgage Loans. 

     

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicers to service and administer their respective Mortgage Loans in
      accordance with the terms of the applicable Servicing Agreement and, where
      applicable, the Correspondent Sellers Guide and the Master Servicing Guide,
      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 and,
      where applicable, the Master Servicing Guide. Furthermore, the Master Servicer
      shall oversee and consult with each Servicer 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 each Servicer and shall cause each Servicer to perform and observe the
      covenants, obligations and conditions to be performed or observed by such
      Servicer under the applicable Servicing Agreement. 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 the Servicers’ and Master Servicer’s
      records, and based on such reconciled and corrected information, prepare the
      statements specified in Section 5.04 and any other information and statements
      required hereunder. The Master Servicer shall reconcile the results of its
      Mortgage Loan monitoring with the actual remittances of the Servicers to the
      related Servicing Accounts pursuant to the applicable Servicing
      Agreements.

     

    The
      Trustee shall furnish the Servicers and the Master Servicer with any limited
      powers of attorney and other documents in form acceptable to the Trustee,
      necessary or appropriate to enable the Servicers and the Master Servicer to
      service and administer the related Mortgage Loans and REO Property, which
      limited powers of attorney shall provide that the Trustee will not be liable
      for
      the actions or omissions of the Servicers or Master Servicer in exercising
      such
      powers. 

     

    The
      Master Servicer shall not without the Trustee’s written consent (i) initiate any
      action, suit or proceeding solely under the Trustee’s name without indicating
      the Master Servicer’s representative capacity or (ii) take any action with the
      intent to cause, and which actually does cause, the Trustee to be registered
      to
      do business in any state. The Master Servicer shall indemnify the Trustee for
      any and all costs, liabilities and expenses incurred by the Trustee in
      connection with the negligent or willful misuse of such powers of attorney
      by
      the Master Servicer.

     

    
      
        
        

      

      
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    The
      Trustee shall provide access to the records and documentation in possession
      of
      the Trustee (including in its capacity as Custodian hereunder) 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; provided,
      however,
      that,
      unless otherwise required by law, the Trustee shall not 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 Trustee shall allow
      representatives of the above entities to photocopy any of the records and
      documentation and shall provide equipment for that purpose at a charge that
      covers the Trustee’s actual costs.

     

    The
      Trustee, upon the written request of the Master Servicer, shall execute and
      deliver to the related Servicer and the Master Servicer 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 Mortgage; (iii) obtain a deficiency judgment against the Mortgagor;
      or
      (iv) enforce any other rights or remedies provided by the Mortgage Note or
      Mortgage or otherwise available at law or equity.

     

    SECTION
      3.02. REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC created hereunder shall exist, the Trustee and the Securities
      Administrator shall act in accordance herewith to treat each such REMIC as
      a
      REMIC, and the Trustee and the Securities Administrator shall comply with any
      directions of the Depositor, the related Servicer or the Master Servicer to
      assure such continuing treatment. In particular, the Trustee, the Securities
      Administrator and the Master Servicer shall not (a) sell or knowingly 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 or is otherwise permitted pursuant to this Agreement or the
      Trustee has received a REMIC Opinion prepared at the expense of the Trust;
      and
      (b) other than with respect to a substitution pursuant to the Mortgage Loan
      Purchase Agreement or Section 2.03 or 2.04 of this Agreement or as otherwise
      provided in this Agreement, as applicable, accept any contribution to any REMIC
      after the Startup Day without receipt of a REMIC Opinion.

     

    SECTION
      3.03. Monitoring
      of Servicers.

     

    (a) The
      Master Servicer shall be responsible for reporting to the Trustee (on behalf
      of
      the Trust) and the Depositor the compliance by each Servicer with its duties
      under the related Servicing Agreement. In the review of each Servicer’s
      activities, the Master Servicer may rely upon an officer’s certificate of the
      Servicer with regard to such Servicer’s compliance with the terms of its
      Servicing Agreement. In the event that the Master Servicer, in its judgment,
      determines that a Servicer should be terminated in accordance with its Servicing
      Agreement, or that a notice should be sent pursuant to such Servicing Agreement
      with respect to the occurrence of an event that, unless cured, would constitute
      grounds for such termination, the Master Servicer shall notify the Depositor
      and
      the Trustee thereof and the Master Servicer shall issue such notice or take
      such
      other action as it deems appropriate.

     

    
      
        
        

      

      
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    (b) The
      Master Servicer, for the benefit of the Trust and the Certificateholders, shall
      (acting as agent of the Trust when enforcing the Trust’s rights under each
      Servicing Agreement) (i) enforce the obligations of each Servicer under the
      related Servicing Agreement, and (ii) in the event that a Servicer fails to
      perform its obligations in accordance with the related Servicing Agreement,
      subject to the preceding paragraph, terminate the rights and obligations of
      such
      Servicer thereunder and act as servicer of the related Mortgage Loans or enter
      into a new Servicing Agreement with a successor Servicer selected by the Master
      Servicer which the Master Servicer shall cause the Trustee to acknowledge;
      provided,
      however,
      it is
      understood and acknowledged by the parties hereto that there will be a period
      of
      transition (not to exceed 90 days) before the actual servicing functions can
      be
      fully transferred to such successor Servicer. Such enforcement, including,
      without limitation, the legal prosecution of claims, termination of Servicing
      Agreements 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. The Master Servicer shall pay the costs of such enforcement
      at
      its own expense except as provided in paragraph (c) below, provided that the
      Master Servicer shall not be required to prosecute or defend any legal action
      except to the extent that the Master Servicer shall have received reasonable
      indemnity for its costs and expenses in pursuing such action.

     

    (c) To
      the
      extent that the costs and expenses of the Master Servicer related to any
      termination of a Servicer, appointment of a successor Servicer or the transfer
      and assumption of servicing by the Master Servicer with respect to any Servicing
      Agreement (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 Servicer as a result of an event of default by
      such
      Servicer and (ii) all costs and expenses associated with the complete transfer
      of 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 servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor servicer to service the
      Mortgage Loans in accordance with the related Servicing Agreement) are not
      fully
      and timely reimbursed by the terminated Servicer, the Master Servicer shall
      be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account.

     

    (d) The
      Master Servicer shall require each Servicer to comply with the remittance
      requirements and other obligations set forth in the related Servicing
      Agreement.

     

    (e) If
      the
      Master Servicer acts as Servicer, it will not assume liability for the
      representations and warranties of the Servicer, if any, that it
      replaces.

     

    (f) With
      respect to Additional Collateral Mortgage Loans, the Master Servicer shall
      have
      no duty or obligation to supervise, monitor or oversee the activities of each
      Servicer under its Servicing Agreement with respect to Additional Collateral,
      except (a) with respect to any instances where a Servicer, in the course of
      fulfilling its obligations under the related Servicing Agreement seeks
      directions, instructions, consents or waivers from the Master Servicer with
      respect to any item of Additional Collateral, or (b) upon the occurrence of
      the
      following events (i) in the case of a final liquidation of any Mortgaged
      Property secured by Additional Collateral, the Master Servicer shall enforce
      the
      obligation of the Servicer under the related Servicing Agreement to liquidate
      such Additional Collateral as required by such Servicing Agreement, and (ii)
      if
      the Master Servicer assumes the obligations of such Servicer as successor
      servicer under the related Servicing Agreement pursuant to this Section 3.03,
      as
      successor servicer, it shall be bound to service and administer the Additional
      Collateral in accordance with the provisions of such Servicing
      Agreement.

     

    
      
        
        

      

      
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    (g) If
      a
      Servicing Agreement requires the approval of the Master Servicer for a
      modification to a Mortgage Loan, the Master Servicer shall approve such
      modification if, based upon its receipt of written notification from the related
      Servicer outlining the terms of such modification and appropriate supporting
      documentation, the Master Servicer determines that the modification is permitted
      under the terms of the related Servicing Agreement and that any conditions
      to
      such modification set forth in related Servicing Agreement have been satisfied.
      If a Servicing Agreement requires approval or consent of the Trustee for a
      modification, the Trustee shall approve or consent to such modification if
      the
      Master Servicer makes such a determination and in reliance thereon.

     

    (h) If
      a
      Servicing Agreement requires the oversight and monitoring of loss mitigation
      measures with respect to the related Mortgage Loans, the Master Servicer will
      monitor any loss mitigation procedure or recovery action related to a defaulted
      Mortgage Loan (to the extent it receives notice of such from the related
      Servicer) and confirm that such loss mitigation procedure or recovery action
      is
      initiated, conducted and concluded in accordance with any timeframes and any
      other requirements set forth in the related Servicing Agreement, and the Master
      Servicer shall notify the Depositor in any case in which the Master Servicer
      believes that the related Servicer is not complying with such timeframes and/or
      other requirements.

     

    SECTION
      3.04. 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
      3.05. 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 X hereof, 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, the Trust and the
      Trustee, 

     

    
      
        
        

      

      
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    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, Liquidation Proceeds and Recoveries and (iv) to effectuate,
      in its own name, on behalf the Trust, or in the name of the Trust, 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
      and the related Servicing Agreement, as applicable; provided,
      however,
      that the
      Master Servicer shall not (and, consistent with its responsibilities under
      Section 3.03, shall not permit any Servicer to) 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 result in an Adverse REMIC Event 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 result in an Adverse REMIC Event.
      The Trustee shall furnish the Master Servicer, upon written request from a
      Servicing Officer, with any limited powers of attorney empowering the Master
      Servicer or any Servicer 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 the applicable Servicing Agreement and this Agreement, and
      the
      Trustee shall execute and deliver such other documents, as the Master Servicer
      may request, to enable the Master Servicer to master service and administer
      the
      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 misuse of any such powers of attorney by the Master Servicer
      or
      any Servicer). In instituting foreclosures or similar proceedings, the Master
      Servicer shall institute such proceedings either in its own name on behalf
      of
      the Trust or in the name of the Trust (or cause the related Servicer, pursuant
      to the related Servicing Agreement, to institute such proceedings either in
      the
      name of such Servicer on behalf of the Trust or in the name of the Trust),
      unless otherwise required by law or otherwise appropriate. 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 Trust or the Trustee on its behalf or that the Trust or the Trustee,
      as
      applicable, 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, on behalf of the Trust, in the appointment of a
      co-trustee pursuant to Section 8.10 hereof. 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 on behalf of the
      Trust.

     

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

     

    To
      the
      extent provided in the applicable Servicing Agreement and 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 the applicable
      Servicing Agreement. If applicable law prohibits the enforcement of a
      due-on-sale clause or such clause is otherwise not enforced in accordance with
      the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan
      is
      assumed, the original Mortgagor may be released from liability in accordance
      with the applicable Servicing Agreement.

     

    
      
        
        

      

      
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    SECTION
      3.07. Release
      of Mortgage Files.

     

    (a) Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      any 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 Servicer will, if required under the applicable Servicing
      Agreement, promptly furnish to the Custodian, on behalf of the Trustee, two
      copies of a certification substantially in the form of Exhibit F hereto 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
      Servicing Account maintained by the applicable Servicer pursuant to Section
      4.01
      or by the applicable Servicer pursuant to its Servicing Agreement have been
      or
      will be so deposited) and shall request that the Trustee (or the Custodian,
      on
      behalf of the Trustee) deliver to the applicable Servicer the related Mortgage
      File. Upon receipt of such certification and request, the Trustee (or the
      Custodian, on behalf of the Trustee), shall promptly release the related
      Mortgage File to the applicable Servicer and the Trustee (and the Custodian,
      if
      applicable) shall have no further responsibility with regard to such Mortgage
      File. Upon any such payment in full, each 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 Servicing Account.

     

    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with the applicable Servicing Agreement, the Trustee shall
      execute such documents as shall be prepared and furnished to the Trustee by
      a
      Servicer or the Master Servicer (in form reasonably acceptable to the Trustee)
      and as are necessary to the prosecution of any such proceedings. The Trustee
      (or
      the Custodian, on behalf of the Trustee), shall, upon the request of a Servicer
      or the Master Servicer, and delivery to the Trustee (the Custodian, on behalf
      of
      the Trustee), of two copies of a request for release signed by a Servicing
      Officer substantially in the form of Exhibit F (or in a mutually agreeable
      electronic format which will, in lieu of a signature on its face, originate
      from
      a Servicing Officer), release the related Mortgage File held in its possession
      or control to the Servicer or the Master Servicer, as applicable. Such trust
      receipt shall obligate the Servicer or the Master Servicer to return the
      Mortgage File to the Trustee (or the Custodian on behalf of the Trustee) when
      the need therefor by the Servicer or the Master 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 Trustee (or the Custodian on behalf
      of
      the Trustee), to the Servicer or the Master Servicer.

     

    
      
        
        

      

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

     

    (a) The
      Master Servicer shall transmit and each Servicer (to the extent required by
      the
      related Servicing Agreement) shall transmit to the Trustee (or Custodian) such
      documents and instruments coming into the possession of the Master Servicer
      or
      such Servicer from time to time as are required by the terms hereof, or in
      the
      case of the Servicers, the applicable Servicing Agreement, to be delivered
      to
      the Trustee (or Custodian). Any funds received by the Master Servicer or by
      a
      Servicer in respect of any Mortgage Loan or which otherwise are collected by
      the
      Master Servicer or by a Servicer as Liquidation Proceeds, Insurance Proceeds
      or
      Recoveries in respect of any Mortgage Loan shall be held for the benefit of
      the
      Trust and the Certificateholders subject to the Master Servicer’s right to
      retain or withdraw from the Distribution Account the Master Servicing Fee,
      any
      additional compensation pursuant to Section 3.14 and any other amounts provided
      in this Agreement, and to the right of each Servicer to retain its Servicing
      Fee
      and any other amounts as provided in the applicable Servicing Agreement. The
      Master Servicer shall, and (to the extent provided in the applicable Servicing
      Agreement) shall cause each Servicer 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, Insurance
      Proceeds or Recoveries, shall be held by the Master Servicer for and on behalf
      of the Trust and the Certificateholders and shall be and remain the sole and
      exclusive property of the Trust; provided,
      however,
      that the
      Master Servicer and each Servicer shall be entitled to setoff against, and
      deduct from, any such funds any amounts that are properly due and payable to
      the
      Master Servicer or such Servicer under this Agreement or the applicable
      Servicing Agreement.

     

    SECTION
      3.09. Standard
      Hazard Insurance and Flood Insurance Policies.

     

    (a) For
      each
      Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall enforce
      any obligation of the Servicers under the related Servicing Agreements to
      maintain or cause to be maintained standard fire and casualty insurance and,
      where applicable, flood insurance, all in accordance with the provisions of
      the
      related Servicing Agreements. It is understood and agreed that such insurance
      shall be with insurers meeting the eligibility requirements set forth in the
      applicable Servicing Agreement 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.

     

    
      
        
        

      

      
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    (b) Pursuant
      to Section 4.01 and 4.02, any amounts collected by the Servicers or the Master
      Servicer, or by any Servicer, under any insurance policies (other than amounts
      to be applied to the restoration or repair of the property subject to the
      related Mortgage or released to the Mortgagor in accordance with the applicable
      Servicing Agreement) shall be deposited into the Distribution Account, subject
      to withdrawal pursuant to Section 4.02 and 4.03. Any cost incurred by the Master
      Servicer or any Servicer in maintaining any such insurance if the Mortgagor
      defaults in its obligation to do so shall be added to the amount owing under
      the
      Mortgage Loan where the terms of the Mortgage Loan so permit; provided,
      however,
      that the
      addition of any such cost shall not be taken into account for purposes of
      calculating the distributions to be made to Certificateholders and shall be
      recoverable by the Master Servicer or such Servicer pursuant to Section 4.02
      and
      4.03.

     

    SECTION
      3.10. Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall (to the extent provided in the applicable Servicing
      Agreement) cause the related Servicer to, prepare and present on behalf of
      the
      Trustee, the Trust 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 a 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
      3.11. Maintenance
      of the Primary Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or permit any Servicer (to the extent such
      action is prohibited under the applicable Servicing Agreement) to take, any
      action that would result in noncoverage under any applicable Primary Insurance
      Policy of any loss which, but for the actions of such Master Servicer or
      Servicer, would have been covered thereunder. The Master Servicer shall use
      its
      best reasonable efforts to cause each Servicer (to the extent required under
      the
      related Servicing Agreement) 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 (including any lender-paid
      Primary Insurance Policy) in accordance with the provisions of this Agreement
      and the related Servicing Agreement, as applicable. The Master Servicer shall
      not, and shall not permit any Servicer (to the extent required under the related
      Servicing Agreement) to, cancel or refuse to renew any such Primary 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 and the related Servicing Agreement, as
      applicable.

     

    (b) The
      Master Servicer agrees to cause each Servicer (to the extent required under
      the
      related Servicing Agreement) to present, on behalf of the Trustee, the Trust
      and
      the Certificateholders, claims to the insurer under any Primary Insurance
      Policies and, in this regard, to take such reasonable action as shall be
      necessary to permit recovery under any Primary Insurance Policies respecting
      defaulted Mortgage Loans. Pursuant to Section 4.01 and 4.02, any amounts
      collected by the Servicer under any Primary Insurance Policies shall be
      deposited in the Distribution Account, subject to withdrawal pursuant to Section
      4.03.

     

    
      
        
        

      

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

     

    The
      Trustee (or the Custodian, as directed by the Trustee), shall retain possession
      and custody of the originals (to the extent available and delivered) of any
      Primary Insurance Policies, or certificate of insurance if applicable and
      available, and any certificates of renewal as to the foregoing as may be issued
      from time to time as contemplated by this Agreement and which come into its
      possession. Until all amounts distributable in respect of the Certificates
      have
      been distributed in full and the Master Servicer otherwise has fulfilled its
      obligations under this Agreement, the Trustee (or its Custodian, if any, as
      directed by the Trustee) shall also retain possession and custody of each
      Mortgage File in accordance with and subject to the terms and conditions of
      this
      Agreement. The Master Servicer shall promptly deliver or cause to be delivered
      to the Trustee (or the Custodian, as directed by the Trustee), upon the
      execution or receipt thereof the originals of any Primary Insurance Policies,
      any certificates of renewal, and such other documents or instruments that
      constitute portions of the Mortgage File that come into the possession of the
      Master Servicer from time to time.

     

    SECTION
      3.13. Realization
      Upon Defaulted Mortgage Loans.

     

    The
      Master Servicer shall cause each Servicer (to the extent required under the
      related Servicing Agreement) 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 the applicable Servicing Agreement.

     

    SECTION
      3.14. Additional
      Compensation to the Master Servicer. 

     

    Pursuant
      to Section 4.02(c), certain income and gain realized from any investment of
      funds in the Distribution Account shall be for the benefit of the Master
      Servicer as additional compensation. Servicing compensation in the form of
      assumption fees, if any, late payment charges, as collected, if any, or
      otherwise (but, unless otherwise specifically permitted in a Servicing
      Agreement, not including any Prepayment Penalty Amounts) shall be retained
      by
      the applicable Servicer, or the Master Servicer, and shall not be deposited
      in
      the related Servicing Account or Distribution Account. 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. The amount of
      the
      aggregate compensation payable as set forth in this Section 3.14 plus
      the
      Master Servicing Fee due to the Master Servicer in respect of any Distribution
      Date shall be reduced in accordance with Section 5.06.

     

    
      
        
        

      

      
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    SECTION
      3.15. REO
      Property.

     

    (a) In
      the
      event the Trust (or the Trustee on its behalf) acquires ownership of any REO
      Property in respect of any related Mortgage Loan, the deed or certificate of
      sale shall be issued to the Trust, or if required under applicable law, to
      the
      Trustee, or to its nominee, on behalf of the Trust. The Master Servicer shall,
      to the extent provided in the applicable Servicing Agreement, cause the
      applicable Servicer to sell, any REO Property as expeditiously as possible
      (and
      in no event later than three years after acquisition) and in accordance with
      the
      provisions of this Agreement and the related Servicing Agreement, as applicable.
      Pursuant to its efforts to sell such REO Property, the Master Servicer shall
      cause the applicable Servicer to protect and conserve, such REO Property in
      the
      manner and to the extent required by the applicable Servicing Agreement, 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, to the extent required by the related Servicing
      Agreement, cause the applicable Servicer to deposit all funds collected and
      received in connection with the operation of any REO Property in the related
      Servicing Account.

     

    (c) The
      Master Servicer, as successor servicer, and the applicable Servicer, upon the
      final disposition of any REO Property, shall be entitled to reimbursement for
      any related unreimbursed Advances and other unreimbursed advances as well as
      any
      unpaid Servicing Fees from Liquidation Proceeds received in connection with
      the
      final disposition of such REO Property; provided, that any such unreimbursed
      Advances as well as any unpaid Servicing Fees may be reimbursed or paid, as
      the
      case may be, prior to final disposition, out of any net rental income or other
      net amounts derived from such REO Property.

     

    (d) To
      the
      extent provided in the related Servicing Agreement, the Liquidation Proceeds
      from the final disposition of the REO Property, net of any payment to the Master
      Servicer and the applicable Servicer as provided above shall be deposited in
      the
      related Servicing Account on or prior to the applicable Determination Date
      in
      the month following receipt thereof and be remitted by wire transfer in
      immediately available funds to the Master Servicer for deposit into the related
      Distribution Account on the next succeeding Servicer Remittance
      Date.

     

    SECTION
      3.16. Assessments
      of Compliance and Attestation Reports.

     

    (a) Assessments
      of Compliance.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year (subject to the later date
      referred to in Section 3.16(a)(iii)), commencing in March 2009, the Master
      Servicer, the Securities Administrator and the Custodian, each at its own
      expense, shall furnish, and each such party shall cause any Servicing Function
      Participant engaged by it (unless such party has elected to take responsibility
      for assessing compliance with the Relevant Servicing Criteria and providing
      the
      related attestation for any such Subcontractor engaged by it in accordance
      with
      Regulation AB Telephone Interpretation 17.06) 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
      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 3.19(b) and for each fiscal year thereafter, whether or
      not
      a Form 10-K is required to be filed, 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. 

    

    
      
        
        

      

      
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    (ii) No
      later
      than the end of each fiscal year for the Trust for which a 10-K is required
      to
      be filed, the Master Servicer and the Custodian, shall each 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 (provided,
      however,
      that the
      Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Administrator
      are the same Person). When the Master Servicer, the Custodian, and the
      Securities Administrator submit their assessments to the Securities
      Administrator, such parties will also at such time include the assessment (and
      attestation pursuant to subsection (b) of this Section 3.16) of each Servicing
      Function Participant engaged by it.

    

    (iii) Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and each comparable report submitted by a Servicer
      and, if applicable, consult with the Master Servicer, the Securities
      Administrator, the Custodian, the Servicers 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 Q and on
      any
      similar exhibit set forth in each Servicing Agreement in respect of each
      Servicer and notify the Depositor of any exceptions. None of such parties shall
      be required to deliver any such assessments until March 30 in any given year
      so
      long as it has received written confirmation from the Depositor that a Form
      10-K
      is not required to be filed in respect of the Trust for the preceding calendar
      year which, if the circumstances apply, the Depositor agrees to provide prior
      to
      March 1 of the applicable year; provided that the Custodian shall only be
      required to deliver such an assessment of compliance with respect to any fiscal
      year for which a Form 10-K is required to be filed in respect of the Trust.
      The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it with its own assessment of compliance to be submitted to the
      Securities Administrator pursuant to this Section.

    

    In
      the
      event the Master Servicer, the Securities Administrator, the Custodian, any
      Servicer or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of this Agreement, or any applicable custodial agreement, Servicing
      Agreement or sub-servicing agreement, as the case may be, such party (in the
      case of a Servicer, to the extent required under the applicable Servicing
      Agreement) shall provide or shall cause such Servicing Function Participant
      to
      provide for the applicable period preceding such assignment and termination
      a
      report on assessment of compliance pursuant to this Section 3.16(a) or to such
      other applicable agreement, notwithstanding any such termination, assignment
      or
      resignation.

    

    
      
        
        

      

      
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    (b) Attestation
      Reports.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year (subject to the later date
      referred to in Section 3.16(b)(ii)), commencing in March 2009, the Master
      Servicer, the Securities Administrator, the Custodian, each at its own expense,
      shall cause, and each such party shall cause any Servicing Function Participant
      engaged by it to cause (unless such party has elected to take responsibility
      for
      assessing compliance with the Relevant Servicing Criteria and providing the
      related attestation with respect to such Relevant Servicing Criteria for any
      such Subcontractor engaged by it in accordance with Regulation AB Telephone
      Interpretation 17.06), each at its own expense, a registered public accounting
      firm (which may also render other services to the Master Servicer, the Trustee,
      in its capacity as Custodian, 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 a 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. 

    

    (ii) Promptly
      after receipt of such report from the Master Servicer, the Trustee, in its
      capacity as Custodian, the Securities Administrator, a Servicer or any Servicing
      Function Participant engaged by such parties, (i) the Depositor shall review
      the
      report and, if applicable, consult with such parties as to the nature of any
      defaults by such parties, in the fulfillment of any of each such party’s
      obligations hereunder or under any other applicable agreement, and (ii) the
      Securities Administrator shall confirm that each assessment submitted pursuant
      to subsection (a) of this Section 3.16 is coupled with an attestation meeting
      the requirements of this Section and notify the Depositor of any exceptions.
      None of the Master Servicer, the Securities Administrator, the Custodian or
      any
      Servicing Function Participant engaged by such parties shall be required to
      deliver or cause the delivery of such reports until March 30 in any given year
      for so long as it has received written confirmation from the Depositor that
      a
      Form 10-K is not required to be filed in respect of the Trust for preceding
      calendar or fiscal year which, if the circumstances apply, the Depositor agrees
      to provide prior to March 1 of the applicable year; provided that the Custodian
      shall only be required to deliver or cause to be delivered such report with
      respect to any fiscal year for which a Form 10-K is required to be filed by
      the
      Trust. The Master Servicer shall include each such attestation furnished to
      it
      with its own attestation to be submitted to the Securities Administrator
      pursuant to this Section.

     

    
      
        
        

      

      
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    In
      the
      event the Master Servicer, the Securities Administrator, the Custodian, any
      Servicer or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and duties under, or resigns pursuant to the
      terms of this Agreement, or any applicable custodial agreement, Servicing
      Agreement or sub-servicing agreement, as the case may be, such party (in the
      case of a Servicer, to the extent required under the applicable Servicing
      Agreement) shall cause a registered public accounting firm to provide an
      attestation pursuant to this Section 3.16(b) or to such other applicable
      agreement, for the applicable period immediately preceding such termination,
      assignment or resignation, notwithstanding any such termination, assignment
      or
      resignation.

     

    SECTION
      3.17. Annual
      Compliance Statement.

     

    The
      Master Servicer and the Securities Administrator shall deliver (and the Master
      Servicer and Securities Administrator shall cause any Servicing Function
      Participant engaged by it to deliver) to the Depositor and the Securities
      Administrator on or before March 10 (with a 5 calendar day cure period) of
      each
      year, commencing in March 2009, 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 any 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 any 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. Promptly
      after receipt of each such Officer’s Certificate, 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 party’s obligations hereunder or, in the case of any Servicing
      Function Participant, under such other applicable agreement. The Master Servicer
      shall include all annual statements of compliance received by it from each
      Servicer with its own annual statement of compliance to be submitted to the
      Securities Administrator pursuant to this Section. In the event the Master
      Servicer, the Securities Administrator or any Servicing Function Participant
      engaged by any such party is terminated 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 3.17 or to such applicable agreement,
      as
      the case may be, notwithstanding any such termination, assignment or
      resignation.

     

    
      
        
        

      

      
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    SECTION
      3.18. Sarbanes-Oxley
      Certification.

     

    Each
      Form
      10-K shall include a Sarbanes-Oxley Certification, required to be included
      therewith pursuant to the Sarbanes-Oxley Act. The Master Servicer and the
      Securities Administrator shall provide, and each such party 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 1 (with a ten-calendar day cure period), (or by such other date and cure
      period specified in the applicable Servicing Agreement), 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,
      if
      applicable in the form provided by the related Servicing Agreement (each, a
      “Back-Up
      Certification”),
      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 any such party or any Servicing Function
      Participant engaged by such party 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 3.18 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 or custodial agreement.

     

    SECTION
      3.19. Reports
      Filed with Securities and Exchange Commission.

     

    (a) Reports
      Filed on Form 10-D. 

     

    (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 Distribution Date Statement attached thereto.
      Any disclosure in addition to the Distribution Date 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 R 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 two paragraphs. 

    

    (ii) As
      set
      forth on Exhibit R hereto, within 5 calendar days after the related Distribution
      Date, (i) the parties to the Thornburg Mortgage Securities Trust 2008-1
      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 (which may be Word or Excel documents easily convertible
      to EDGAR format), 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 U hereto (an “Additional
      Disclosure Notification”),
      and
      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
      Seller 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 in Form 10-D pursuant to this paragraph;
      provided that if the Additional Form 10-D Disclosure relates solely to the
      Depositor, such fees and expenses shall be paid by the Depositor.

    

    
      
        
        

      

      
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    (iii) After
      preparing the Form 10-D, the Securities Administrator shall forward upon request
      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 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, 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 subsection (d)(ii) of this Section
      3.19.
      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 Master Servicer
      and the Securities Administrator of their respective duties under this Section
      3.19(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 under this Section 3.19(a). 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 10-D, where such failure results
      from the Securities Administrator’s inability or failure to obtain or 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.

    

    (iv) Form
      10-D
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D if the answer to the questions should be “no.” The Securities Administrator
      shall be entitled to rely on such representations in preparing, executing and/or
      filing any such report.

    

    
      
        
        

      

      
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    (b) Reports
      Filed on Form 10-K.

     

    (i) On
      or
      prior to the 90th
      day
      after the end of each fiscal year of the Trust in which a Form 10-K is required
      to be filed 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 2009, 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 and the related
      Servicing Agreement, (i) an annual compliance statement for each 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, (ii)(A) the annual reports on assessment of
      compliance with servicing criteria for each Reporting Servicer, as described
      under Section 3.16(a), and (B) if each Reporting Servicer’s report on assessment
      of compliance with servicing criteria described under Section 3.16(a) 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 3.16(a) 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 3.16(b), and (B) if any registered public
      accounting firm attestation report described under Section 3.16(b) 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 3.18 (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 determined and prepared by and at the direction of 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 two paragraphs. 

    

    (ii) As
      set
      forth on Exhibit S hereto, no later than March 10 (with a 5 calendar day cure
      period) of each year that the Trust is subject to the Exchange Act reporting
      requirements, commencing in 2009, (i) the parties to the Thornburg Mortgage
      Securities Trust 2008-1 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 (which may be Word or Excel documents
      easily convertible to EDGAR format), 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 Seller 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
      in Form 10-K pursuant to this paragraph; provided that if the Additional Form
      10-K Disclosure relates solely to the Depositor, such fees and expenses shall
      be
      paid by the Depositor.

    

    
      
        
        

      

      
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    (iii) After
      preparing the Form 10-K, the Securities Administrator shall forward upon request
      electronically a copy of the Form 10-K to the Depositor. Within three Business
      Days after receipt of such copy, but no later than March 25th, 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, 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 subsection (d)(ii) of this Section 3.19. 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. The parties to this Agreement acknowledge that the performance by the
      Master Servicer and the Securities Administrator of its duties under this
      Section 3.19(b) related to the timely preparation, execution and filing of
      Form
      10-K is contingent upon such parties (the Custodian and any Servicing Function
      Participant) strictly observing all applicable deadlines in the performance
      of
      their duties under this Section 3.19(b), Section 3.18, Section 3.17, Section
      3.16(a) and Section 3.16(b). 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 obtain or 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.

    

    (iv) Form
      10-K
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than March 15th with respect
      to
      the filing of a report on Form 10-K, if the answer to the questions should
      be
“no.” The Securities Administrator shall be entitled to rely on such
      representations in preparing, executing and/or filing any such
      report.

    

    
      
        
        

      

      
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    (c) Reports
      Filed on Form 8-K.

     

    (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 in Form 8-K (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit T 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 two
      paragraphs. 

    

    (ii) As
      set
      forth on Exhibit T hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than close of business (New York City
      time)
      on the 2nd Business Day after the occurrence of a Reportable Event (i) the
      parties to the Thornburg Mortgage Securities Trust 2008-1 transaction shall
      be
      required to provide to the Securities Administrator and Depositor, to the extent
      known by a responsible officer thereof, in EDGAR-compatible form (which may
      be
      Word or Excel documents easily convertible to EDGAR format), 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 Seller 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
      in Form 8-K pursuant to this paragraph; provided that if the Additional Form
      8-K
      Disclosure Information relates solely to the Depositor, such fees and expenses
      shall be paid by the Depositor. 

    

    (iii) After
      preparing the Form 8-K, the Securities Administrator shall forward upon request
      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, 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 filed by the
      Securities Administrator. 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 subsection (d)(ii) of this Section 3.19.
      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 filed by the Securities Administrator
      or
      filed by the Depositor and provided to the Securities Administrator for that
      purpose. The parties to this Agreement acknowledge that the performance by
      the
      Master Servicer and the Securities Administrator of their respective duties
      under this Section 3.19(c) 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 Section
      3.19(c). 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
      8-K, where such failure results from the Securities Administrator’s inability or
      failure to obtain or receive, on a timely basis, any information from any other
      party hereto needed to prepare, arrange for execution or file such Form 8-K,
      not
      resulting from its own negligence, bad faith or willful misconduct.

    

    
      
        
        

      

      
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    (d) Delisting;
      Amendments; Late Filings.

     

    (i) On
      or
      prior to January 30 of the first year in which the Securities Administrator
      is
      able to do so under applicable law, unless otherwise directed by the Depositor,
      the Securities Administrator shall prepare and file a Form 15 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 and each Servicer will cooperate to prepare and
      file a Form 12b-25 and a 10-D/A and 10-K/A, 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, and such amendment includes any
      Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure or any
      Form
      8-K Disclosure Information or any amendment to such disclosure, the Securities
      Administrator will promptly notify electronically the Depositor and such parties
      will cooperate to prepare any necessary 8-KA, 10-D/A or 10-K/A. 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 a senior officer in charge of master servicing,
      as
      applicable, of the Master Servicer. The parties to this Agreement acknowledge
      that the performance by the Master Servicer and the Securities Administrator
      of
      their respective duties under this Section 3.19(d) 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 Section. 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
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, 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.

    

    
      
        
        

      

      
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    SECTION
      3.20. Additional
      Information.

     

    Each
      of
      the parties agrees to provide to the Securities Administrator such additional
      information related to such party as the Securities Administrator may reasonably
      request, including evidence of the authorization of the person signing any
      certification or statement, financial information and reports, and such other
      information related to such party or its performance hereunder. 

     

    SECTION
      3.21. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Section 3.16 through
      Section 3.20 of this Agreement is to facilitate compliance by the Securities
      Administrator and the Depositor with the provisions of Regulation AB promulgated
      by the Commission under the Exchange Act (17 C.F.R. §§ 229.1100 -
      229.1123), as such may be amended from time to time and subject to such
      clarification and interpretive advice as may be issued by the staff of the
      Commission 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, (c) the parties
      shall comply with the reasonable requests made by the Securities Administrator
      or the Depositor for delivery of such additional or different information as
      the
      Securities Administrator or the Depositor may determine in good faith is
      necessary to comply with the provisions of Regulation AB, which information
      is
      available to such party without unreasonable effort or expense and within such
      timeframe as may be reasonably requested, and (d) no amendment of this Agreement
      shall be required to effect any such changes in the parties’ obligations as are
      necessary to accommodate evolving interpretations of the provisions of
      Regulation AB.

     

    SECTION
      3.22. Indemnification.
      

     

    Each
      party required to deliver an assessment of compliance and attestation report
      pursuant to Section 3.16 (each, an “Item 1122 Responsible Party”) shall
      indemnify and hold harmless the Securities Administrator, the Master Servicer,
      the Depositor and the Seller and each of their 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 Item 1122 Responsible Party of any of its obligations hereunder
      relating to its obligations as an Item 1122 Responsible Party, including
      particularly its obligations to provide any assessment of compliance,
      attestation report or compliance statement required under Section 3.16(a),
      3.16(b) or 3.17, respectively, or any information, data or materials required
      to
      be included in any Exchange Act report, (b) any material misstatement or
      material omission in any information, data or materials provided by such Item
      1122 Responsible Party (or, in the case of the Securities Administrator or
      Master Servicer, any material misstatement or material omission in (x) any
      compliance certificate delivered by it, or by any Servicing Function Participant
      engaged by it, pursuant to this Agreement, (y) any assessment or attestation
      delivered by or on behalf of it, or by any Servicing Function Participant
      engaged by it, pursuant to this Agreement, or (z) any Additional Form 10-D
      Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure Information
      concerning the Securities Administrator or the Master Servicer and provided
      by
      either of them), or (c) the negligence, bad faith or willful misconduct of
      such
      Item 1122 Responsible Party in connection with its performance hereunder
      relating to its obligations as an Item 1122 Responsible Party. If the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Securities Administrator, the Depositor or the Seller, then each
      Item 1122 Responsible Party agrees that it shall contribute to the amount paid
      or payable by the Securities Administrator, the Master Servicer, the Depositor
      and the Seller as a result of any claims, losses, damages or liabilities
      incurred by the Securities Administrator, the Master Servicer, the Depositor
      or
      the Seller in such proportion as is appropriate to reflect the relative fault
      of
      the Securities Administrator, the Master Servicer, the Depositor or the Seller
      on the one hand and such Item 1122 Responsible Party on the other. This
      indemnification shall survive the termination of this Agreement or the
      termination of any party to this Agreement.

     

    
      
        
        

      

      
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    SECTION
      3.23. Amendments
      to Master Servicing Guide and Correspondent Sellers Guide. 

     

    The
      Seller and the Master Servicer hereby agree not to amend the Master Servicing
      Guide or the Correspondent Sellers Guide with respect to the Mortgage Loans
      (which are Securitized Loans (as defined therein)) which amendment would (i)
      change the Servicer Remittance Date or date for remittance of any servicer
      reports or monthly remittance advices, (ii) change the manner in which any
      Servicer makes Advances, servicing advances or amounts to compensate for
      Interest Shortfalls (iii) without prior written notice to the Rating Agencies
      (unless such amendment corresponds to reporting criteria specified by any Rating
      Agency), change the provisions relating to the modification of Mortgage Loans
      by
      a Servicer (including the reporting of data relating thereto by a Servicer
      to
      the Master Servicer in servicing reports and monthly remittance advices) in
      connection with a loss mitigation strategy or (iv) otherwise have a material
      adverse effect on the Trust or the Certificateholders, unless the party making
      such amendment notifies the other party in writing of such amendment and, in
      the
      case of an amendment of the type described in clause (iv) such changes are
      made
      pursuant to the provisions of Section 12.01 hereof. 

     

    
      
        
        

      

      
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    SECTION
      3.24. UCC.

     

    The
      Securities Administrator agrees to file continuation statements for any Uniform
      Commercial Code financing statements identifying the Trust as debtor which
      the
      Depositor has informed the Securities Administrator in writing were filed on
      the
      Closing Date in connection with the Trust, provided that the Securities
      Administrator receives the related filing information on a timely basis. The
      Depositor shall file any financing statements or amendments thereto required
      by
      any change in the Uniform Commercial Code.

     

    SECTION
      3.25. Optional
      and Required Purchases of Certain Mortgage Loans.

     

    (a) Thornburg,
      in its capacity as a Servicer of a portion of the Mortgage Loans, shall have
      the
      right to purchase from the Trust any Mortgage Loan which as of the first day
      of
      a calendar quarter is delinquent in payment by 90 days or more or is an REO
      Property, at a price equal to the Purchase Price; provided however (i) that
      such
      Mortgage Loan is still 90 days or more delinquent or is an REO Property as
      of
      the date of such purchase and (ii) this purchase option, if not theretofore
      exercised, shall terminate on the date prior to the last day of the related
      calendar quarter. This purchase option, if not exercised, shall not be
      thereafter reinstated unless the delinquency is cured and the Mortgage Loan
      thereafter again becomes 90 days or more delinquent or becomes an REO Property,
      in which case the option shall again become exercisable as of the first day
      of
      the related calendar quarter. 

     

    (b) Thornburg,
      in its capacity as a Servicer, may not permit a Significant Modification to
      a
      Mortgage Loan that is not permitted by the related Mortgage Note. However,
      Thornburg, in its capacity as the Seller, may, but is not required to,
      repurchase any Mortgage Loan as to which the Mortgagor has requested a
      Significant Modification that is not then permitted under the related Mortgage
      Note if such Mortgagor has a satisfactory payment history under such Mortgage
      Loan and meets the credit standards of the Seller for the loan program selected
      (a “Significant
      Modification Loan”).
      A
“Significant
      Modification”
shall
      mean any modification to the interest rate of the greater of (i) 0.25% added
      or
      subtracted from the existing rate and (ii) a change equal to the product of
      (a)
      5% and (b) the annual existing interest rate thereon, which is not provided
      for
      in the related Mortgage Note. The purchase price for any repurchase pursuant
      to
      this Section 3.25(b) shall be the applicable Purchase Price. In order to
      exercise its repurchase rights hereunder, the Seller shall deliver to the Master
      Servicer and the Trustee an Officer’s Certificate identifying the Mortgage Loan
      to be repurchased and certifying that (i) such Mortgage Loan is a Significant
      Modification Loan, and (ii) that the Significant Modification Loan will be
      entered into on the date of such repurchase. In connection with any repurchase
      pursuant to this Section 3.25(b), the Seller shall pay to the Trust the amount
      of any tax imposed on the Trust or any REMIC created hereby as a result of
      such
      repurchase.

     

    (c) If
      Thornburg chooses to exercise its option to repurchase any Mortgage Loan
      pursuant to Section 3.25(b) hereof, then no later than the fourth Business
      Day
      prior to each Distribution Date, Thornburg will provide to the Master Servicer
      a
      list identifying all Mortgage Loans that became Significant Modification Loans
      during the related Due Period for which Thornburg chooses to exercise its option
      to repurchase. On the third Business Day prior to each Distribution Date,
      provided that it has received such list from Thornburg, the Master Servicer
      shall notify Thornburg of the current outstanding principal balance and accrued
      interest for each such Mortgage Loan. No later than 1:00 PM Eastern Time on
      the
      second Business Day prior to each Distribution Date, Thornburg shall purchase
      each such Significant Modification Loan, at the applicable Purchase Price and
      shall remit such Purchase Price to the Master Servicer for deposit in the
      Distribution Account. If at any time Thornburg remits to the Master Servicer
      a
      payment for deposit in the Distribution Account covering the amount of the
      Purchase Price for a Mortgage Loan of the type set forth in clause (b) above,
      and Thornburg provides to the Trustee a certification signed by a Servicing
      Officer stating that the amount of such payment has been deposited in the
      Distribution Account, then the Trustee shall execute the assignment of such
      Mortgage Loan at the request of Thornburg without recourse to Thornburg which
      shall succeed to all the Trust’s and/or the Trustee’s right, title and interest
      in and to such Mortgage Loan, and all security and documents relative thereto.
      Such assignment shall be an assignment outright and not for security. Thornburg
      will thereupon own such Mortgage Loan, and all such security and documents,
      free
      of any further obligation to the Trust, the Trustee or the Certificateholders
      with respect thereto.

     

    
      
        
        

      

      
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    SECTION
      3.26. Realization
      upon Troubled Mortgage Loans.

     

    The
      Master Servicer shall have the right to cause a Servicer to sell or work out
      any
      Mortgage Loan as to which the Master Servicer reasonably believes that default
      in payment is likely, provided,
      however,
      that,
      with respect to any such sale of a Mortgage Loan by a Servicer, the related
      sale
      price shall be no less than the Stated Principal Balance of such Mortgage Loan
      as of the last day of the Due Period immediately preceding the date of such
      sale
plus
      accrued
      interest thereon through such sale date. Any and all proceeds from such a sale
      shall be deemed to be Liquidation Proceeds hereunder and any such Mortgage
      Loan
      which has been sold shall be deemed a Liquidated Mortgage Loan
      hereunder.

     

    SECTION
      3.27. Closing
      Certificate and Opinion.

     

    On
      or
      before the Closing Date, the Master Servicer shall cause to be delivered to
      the
      Depositor, the Seller, the Trustee, and Greenwich Capital Markets, Inc. an
      Opinion of Counsel, dated the Closing Date, in form and substance reasonably
      satisfactory to the Depositor, Greenwich Capital Markets, Inc., and the Seller
      as to the due authorization, execution and delivery of this Agreement by the
      Master Servicer and the enforceability thereof. 

     

    SECTION
      3.28. Liabilities
      of the Master Servicer.

     

    The
      Master Servicer shall be liable in accordance herewith only to the extent of
      the
      obligations specifically imposed upon and undertaken by it herein.

     

    SECTION
      3.29. Merger
      or Consolidation of the Master Servicer.

     

    (a) The
      Master Servicer will keep in full force and effect its existence, rights and
      franchises as a corporation under the laws of the state of its incorporation,
      and will obtain and preserve its qualification to do business as a foreign
      corporation 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 duties under this
      Agreement.

     

    
      
        
        

      

      
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    (b) Any
      Person into which the Master Servicer may be merged or consolidated, or any
      corporation resulting from any merger or consolidation to which the Master
      Servicer shall be a party, or any Person succeeding to the business of the
      Master Servicer, shall be the successor of the Master Servicer hereunder,
      without the execution or filing of any paper or further act on the part of
      any
      of the parties hereto, anything herein to the contrary
      notwithstanding.

     

    SECTION
      3.30. Indemnification
      of the Trustee, the Seller, the Master Servicer and the Securities
      Administrator.

     

    (a) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the Master
      Servicer agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (except as otherwise provided
      herein with respect to expenses) (including reasonable legal fees and
      disbursements of counsel) incurred on their part that may be sustained in
      connection with, arising out of, or relating to this Agreement or the
      Certificates (i) related to the Master Servicer’s failure to perform its duties
      in compliance with this Agreement (except as any such loss, liability or expense
      shall be otherwise reimbursable pursuant to this Agreement) or (ii) incurred
      by
      reason of the Master Servicer’s willful misfeasance, bad faith or gross
      negligence in the performance of duties hereunder or by reason of reckless
      disregard of obligations and duties hereunder, provided, in each case, that
      with
      respect to any such claim or legal action (or pending or threatened claim or
      legal action), an Indemnified Person shall have given the Master Servicer and
      the Depositor written notice thereof promptly after such Indemnified Person
      shall have with respect to such claim or legal action knowledge thereof. The
      Indemnified Person’s failure to give such notice shall not affect the
      Indemnified Person’s right to indemnification hereunder. This indemnity shall
      survive the resignation or removal of the Trustee, the Master Servicer or the
      Securities Administrator and the termination of this Agreement.

     

    (b) The
      Trust
      will indemnify any Indemnified Person for any loss, liability or expense of
      any
      Indemnified Person not otherwise indemnified by the Master Servicer as referred
      to in Subsection (a) above.

     

    (c) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the
      Securities Administrator agrees to indemnify the Indemnified Persons (other
      than
      the Securities Administrator) for, and to hold them harmless against, any loss,
      liability or expense (except as otherwise provided herein with respect to
      expenses) (including reasonable legal fees and disbursements of counsel)
      incurred on their part (i) in connection with, arising out of, or relating
      to
      the Securities Administrator’s failure to file any Exchange Act report which the
      Securities Administrator is responsible for filing in accordance with Section
      3.19, (ii) by reason of the Securities Administrator’s negligence or willful
      misconduct in the performance of such obligations pursuant to Section 3.19
      or
      (iii) by reason of the Securities Administrator’s reckless disregard of such
      obligations pursuant to Section 3.19, provided, in each case, that with respect
      to any such claim or legal action (or pending or threatened claim or legal
      action), an Indemnified Person shall have given the Securities Administrator
      written notice thereof promptly after such Indemnified Person shall have with
      respect to such claim or legal action knowledge thereof. The Indemnified
      Person’s failure to give such notice shall not affect the Indemnified Person’s
      right to indemnification hereunder. This indemnity shall survive the resignation
      or removal of the Trustee, the Master Servicer or the Securities Administrator
      and the termination of this Agreement.

     

    
      
        
        

      

      
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    SECTION
      3.31. Limitations
      on Liability of the Master Servicer and Others; Indemnification of Trustee
      and
      Others.

     

    Subject
      to the obligation of the Master Servicer to indemnify the Indemnified Persons
      pursuant to Section 3.30:

     

    (a) Neither
      the Master Servicer nor any of the directors, officers, employees or agents
      of
      the Master Servicer shall be under any liability to the Indemnified Persons,
      the
      Depositor, the Trust or the Certificateholders for taking any action or for
      refraining from taking any action in good faith pursuant to this Agreement,
      or
      for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Master Servicer or any such Person against
      any breach of warranties or representations made herein or any liability which
      would otherwise be imposed by reason of such Person’s willful misfeasance, bad
      faith or gross negligence in the performance of duties or by reason of reckless
      disregard of obligations and duties hereunder.

     

    (b) The
      Master Servicer and any director, officer, employee or agent of the Master
      Servicer 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.

     

    (c) The
      Master Servicer, the Trustee (in its individual corporate capacity and as
      Trustee), the Custodian (including for such purpose, the Trustee acting in
      its
      capacity as Custodian) and any director, officer, employee or agent of the
      Master Servicer, the Trustee or the Custodian shall be indemnified by the Trust
      and held harmless thereby against any loss, liability or expense (except as
      otherwise provided herein with respect to expenses) (including reasonable legal
      fees and disbursements of counsel) incurred on their part that may be sustained
      in connection with, arising out of, or relating to, this Agreement, the
      Certificates or any Servicing Agreement or the transactions contemplated hereby
      or thereby (except, with respect to the Master Servicer, to the extent that
      the
      Master Servicer is indemnified by the Servicer thereunder), other than (i)
      with
      respect to the Master Servicer only, any such loss, liability or expense related
      to the Master Servicer’s failure to perform its duties in compliance with this
      Agreement or (ii) with respect to the Master Servicer or Custodian only, any
      such loss, liability or expense incurred by reason of the Master Servicer’s or
      the Custodian’s willful misfeasance, bad faith or gross negligence in the
      performance of its own duties hereunder or by reason of reckless disregard
      of
      its own obligations and duties hereunder or under a custodial
      agreement.

     

    (d) The
      Master Servicer shall not be under any obligation to appear in, prosecute or
      defend any legal action that is not incidental to its duties under this
      Agreement and that in its opinion may involve it in any expense or liability;
      provided,
      however,
      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 Trust and the
      Certificateholders hereunder. In such event, the legal expenses and costs of
      such action and any liability resulting therefrom shall be expenses, costs
      and
      liabilities of the Trust, and the Master Servicer shall be entitled to be
      reimbursed therefor out of the Distribution Account as provided by Section
      4.03.
      Nothing in this Subsection 3.31(d) shall affect the Master Servicer’s obligation
      to supervise, or to take such actions as are necessary to ensure, the servicing
      and administration of the Mortgage Loans pursuant to Subsection
      3.01(a).

     

    
      
        
        

      

      
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    (e) In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Master Servicer
      shall not be required to investigate or make recommendations concerning
      potential liabilities which the Trust might incur as a result of such course
      of
      action by reason of the condition of the Mortgaged Properties but shall give
      notice to the Trustee if it has notice of such potential
      liabilities.

     

    (f) The
      Master Servicer shall not be liable for any acts or omissions of any Servicer,
      except as otherwise expressly provided herein.

     

    SECTION
      3.32. Master
      Servicer Not to Resign. 

     

    Except
      as
      provided in Section 3.34, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except upon a determination that
      any
      such duties hereunder are no longer permissible under applicable law and such
      impermissibility cannot be cured. Any such determination permitting the
      resignation of the Master Servicer shall be evidenced by an Independent Opinion
      of Counsel (delivered at the expense of the Master Servicer) to such effect
      delivered to the Trustee. No such resignation by the Master Servicer shall
      become effective until the Trustee or a successor to the Master Servicer
      reasonably satisfactory to the Trustee shall have assumed the responsibilities
      and obligations of the Master Servicer in accordance with Section 7.02 hereof.
      The Trustee shall notify each Rating Agency of the resignation of the Master
      Servicer.

     

    SECTION
      3.33. Successor
      Master Servicer.

     

    In
      connection with the appointment of any successor master servicer or the
      assumption of the duties of the Master Servicer, the Trustee may make such
      arrangements for the compensation of such successor master servicer out of
      payments on the Mortgage Loans as the Trustee and such successor master servicer
      shall agree which in no case shall exceed the Master Servicing Fee, plus
      the
      portion of investment income on amounts on deposit in the Distribution Account
      to which the Master Servicer is entitled hereunder. If the successor master
      servicer does not agree that the proposed compensation is fair, such successor
      master servicer shall obtain two quotations of market compensation from third
      parties actively engaged in the servicing of single-family mortgage loans;
      provided,
      however,
      that
      Thornburg, as a Servicer of a substantial portion of the Mortgage Loans, shall
      have the right, but not the obligation, to be appointed successor master
      servicer in the event that the Trustee, in its sole discretion, decides not
      to
      assume the duties of the Master Servicer itself; and provided,
      further,
      that
      each Rating Agency shall confirm in writing that any appointment of a successor
      Master Servicer (other than the Trustee) will not result in a downgrade in
      the
      then current rating of any Class of Certificates. 

     

    
      
        
        

      

      
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    SECTION
      3.34. Sale
      and Assignment of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in their entirety as Master Servicer under this Agreement, with
      the
      written consent of Thornburg in its capacity as a Servicer of a substantial
      portion of the Mortgage Loans, to be given in its sole discretion, and provided
      further that: (i) the purchaser or transferee accepting such assignment and
      delegation (a) shall be a Person which shall be qualified to service mortgage
      loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less
      than
      $10,000,000 (unless otherwise approved by each Rating Agency pursuant to clause
      (ii) below); (c) shall be reasonably satisfactory to Thornburg and the Trustee
      (as evidenced in writing signed by Thornburg and the Trustee); and (d) 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 ratings 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 Independent Opinion of Counsel,
      (delivered at the Master Servicer’s expense) 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 prior to the effective date thereof.

     

    SECTION
      3.35. Reporting
      Requirements of the Commission.

     

    To
      the
      extent that, following the Closing Date, the content of Forms 8-K, 10-D, 10-K,
      15 or other Forms required by the Exchange Act and the Rules and Regulations
      of
      the Commission and the time by which such Forms are required to be filed,
      differs from the provisions of this Agreement, the Master Servicer and the
      Securities Administrator hereby agree that each shall reasonably cooperate
      to
      amend the provisions of this Agreement (in accordance with Section 12.01) in
      order to comply with such amended reporting requirements and such amendment
      of
      this Agreement. Notwithstanding the foregoing, neither the Master Servicer
      nor
      the Securities Administrator shall be obligated to enter into any amendment
      pursuant to this Section that adversely affects its obligations or immunities
      under this Agreement.

     

    ARTICLE
      IV

     

    ACCOUNTS

     

    SECTION
      4.01. Servicing
      Accounts.

     

    (a) The
      Master Servicer shall enforce the obligation of each Servicer to establish
      and
      maintain one or more custodial accounts (the “Servicing
      Accounts”)
      in
      accordance with the applicable Servicing Agreement, with records to be kept
      with
      respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts
      shall be deposited within 48 hours (or as of such other time specified in the
      related Servicing Agreement) of receipt all collections of principal and
      interest on any Mortgage Loan and with respect to any REO Property received
      by a
      Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds and advances made from the Servicer’s own funds (less, in the case of
      each Servicer, the applicable servicing compensation, in whatever form and
      amounts as permitted by the applicable Servicing Agreement) and all other
      amounts to be deposited in each such Servicing Account. The Servicer is hereby
      authorized to make withdrawals from and deposits to the related Servicing
      Account for purposes required or permitted by this Agreement and the applicable
      Servicing Agreement. For the purposes of this Agreement, Servicing Accounts
      shall also include such other accounts as the Servicer maintains for the escrow
      of certain payments, such as taxes and insurance, with respect to certain
      Mortgaged Properties. Each Servicing Agreement sets forth the criteria for
      the
      segregation, maintenance and investment of each related Servicing Account,
      the
      contents of which are acceptable to the parties hereto as of the date hereof
      and
      changes to which shall not be made unless such changes are made in accordance
      with the provisions of Section 12.01 hereof. 

     

    
      
        
        

      

      
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    (b) [Reserved];

     

    (c) To
      the
      extent provided in the related Servicing Agreement and subject to this Article
      IV, on or before each Servicer Remittance Date, each Servicer shall withdraw
      or
      shall cause to be withdrawn from the related Servicing Accounts and shall
      immediately deposit or cause to be deposited in the Distribution Account amounts
      representing the following collections and payments (other than with respect
      to
      principal of or interest on the Mortgage Loans due on or before the Cut-off
      Date) with respect to each of the Mortgage Loans it is servicing:

     

    (i) Monthly
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Servicers pursuant to the Servicing Agreements which were due on or
      before the related Due Date but net of the amount thereof comprising the
      Servicing Fees;

     

    (ii) Principal
      Prepayments in full and any Liquidation Proceeds received by the Servicers
      with
      respect to such Mortgage Loans in the related Prepayment Period, with interest
      to the date of prepayment or liquidation, net of the amount thereof comprising
      the Servicing Fees and any Recoveries received in the related Prepayment
      Period;

     

    (iii) Principal
      Prepayments in part received by the Servicers for such Mortgage Loans in the
      related Prepayment Period; 

     

    (iv) Prepayment
      Penalty Amounts, if any, and only if required under the related Servicing
      Agreement; and

    

    (v) any
      amount to be used as a delinquency advance or to pay any Interest Shortfalls,
      in
      each case, as required to be paid under the related Servicing Agreement.

     

    (d) Withdrawals
      may be made from a Servicing Account only to make remittances as provided in
      Section 4.01(c), 4.02 and 4.03; to reimburse the Master Servicer, as successor
      servicer, or a Servicer for Advances which have been recovered by subsequent
      collection from the related Mortgagor; to reimburse the Master Servicer, as
      successor servicer, or a Servicer for Capitalization Reimbursement Amounts;
      to
      remove amounts deposited in error; to remove fees, charges or other such amounts
      deposited on a temporary basis; or to clear and terminate the account at the
      termination of this Agreement in accordance with Section 10.01. As provided
      in
      Sections 4.01(c) and 4.02(b), certain amounts otherwise due to the Servicers
      may
      be retained by them and need not be deposited in the Distribution
      Account.

     

    
      
        
        

      

      
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    Notwithstanding
      anything herein to the contrary, the Master Servicer shall not be responsible
      for verifying the accuracy of any Prepayment Penalty.

     

    SECTION
      4.02. Distribution
      Account. 

     

    (a) The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Trust and the Certificateholders, the
      Distribution Account as a segregated account or accounts, each of which shall
      be
      an Eligible Account. If an existing Distribution Account ceases to be an
      Eligible Account, the Securities Administrator shall establish a new
      Distribution Account that is an Eligible Account within ten (10) days and
      transfer all funds and investment property on deposit in such existing
      Distribution Account into the new Distribution Account. The Distribution Account
      shall constitute a trust account of the Trust segregated on the books of the
      Securities Administrator and held by the Securities Administrator in trust
      in
      its Corporate Trust Office, and the Distribution Account and the funds deposited
      therein shall not be subject to, and shall be protected from, all claims, liens,
      and encumbrances of any creditors or depositors of the Trustee, the Securities
      Administrator or the Master Servicer (whether made directly, or indirectly
      through a liquidator or receiver of the Trustee, the Securities Administrator
      or
      the Master Servicer). The amount at any time credited to the Distribution
      Account shall be (i) fully insured by the FDIC to the maximum coverage provided
      thereby or (ii) invested by the Securities Administrator, in Permitted
      Investments, in accordance with Section 4.02(c). All Permitted Investments
      shall
      mature or be subject to redemption or withdrawal on or before, and shall be
      held
      until, the immediately succeeding Distribution Date. With respect to the
      Distribution Account and the funds deposited therein, the Securities
      Administrator shall take such action as may be necessary to ensure that the
      Trust and the Certificateholders shall be entitled to the priorities afforded
      to
      such a trust account (in addition to a claim against the estate of the
      Securities Administrator or the Trustee) as provided by 12 U.S.C. § 92a(e), and
      applicable regulations pursuant thereto, if applicable, or any applicable
      comparable state statute applicable to state chartered banking corporations,
      if
      applicable. The Securities Administrator, Trustee or their affiliates are
      permitted to receive additional compensation that could be deemed to be in
      the
      their economic self-interest for (i) serving as investment adviser,
      administrator, 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. The Master Servicer and the Securities
      Administrator will deposit in the Distribution Account as identified by the
      Master Servicer or the Securities Administrator and as received by the Master
      Servicer or the Securities Administrator, the following amounts:

     

    (i) any
      amounts withdrawn from a Servicing Account pursuant to Section
      4.01(c);

     

    
      
        
        

      

      
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    (ii) any
      Advance and any Compensating Interest Payments required to be made by the Master
      Servicer, as successor servicer, to the extent required but not made by a
      Servicer; 

     

    (iii) any
      Insurance Proceeds, Liquidation Proceeds or Recoveries received by or on behalf
      of the Master Servicer or which were not deposited in a Servicing Account;
      

     

    (iv) the
      Purchase Price with respect to any Mortgage Loans purchased by the Seller under
      this Agreement, any Substitution Adjustments pursuant to Section 2.03 of this
      Agreement, the Purchase Price with respect to any Mortgage Loans purchased
      by
      Thornburg pursuant to Section 3.25, and all proceeds of any Mortgage Loans
      or
      property acquired with respect thereto repurchased by the Thornburg (or its
      assignee) pursuant to Section 10.01;

     

    (v) any
      amounts required to be deposited with respect to losses on investments of
      deposits in the Distribution Account; and

     

    (vi) any
      other
      amounts received by or on behalf of the Master Servicer or the Securities
      Administrator and required to be deposited in the Distribution Account pursuant
      to this Agreement.

     

    (b) All
      amounts deposited to the Distribution Account shall be held by the Securities
      Administrator in the name of the Trustee in trust for the benefit of the Trust
      and Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Distribution Account shall be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, payments in the nature of (i) late payment charges or
      assumption, tax service, statement account or payoff, substitution,
      satisfaction, release and other like fees and charges (but including, in the
      case of Thornburg, all Prepayment Penalty Amounts) and (ii) the items enumerated
      in Subsections 4.03(a)(i), (ii), (iii), (iv), (vi), (vii), (ix), (x) and with
      respect to the Securities Administrator item (xi), need not be credited by
      the
      Master Servicer or the related Servicer to the Distribution Account. In the
      event that the Master Servicer shall deposit or cause to be deposited to the
      Distribution Account any amount not required to be credited thereto, the
      Securities Administrator, upon receipt of a written request therefor signed
      by a
      Servicing Officer of the Master Servicer, shall promptly transfer such amount
      to
      the Master Servicer, any provision herein to the contrary
      notwithstanding.

     

    (c) The
      amount
      at any time credited to the Distribution Account shall be invested, in the
      name
      of the Trustee, or its nominee, for the benefit of the Certificateholders,
      in
      Permitted Investments as follows. All net earnings on Permitted Investments
      shall be for the benefit of Thornburg, in its capacity as Servicer, except
      that
      the investment income with respect to the investment of funds in the
      Distribution Account made on the Business Day prior to each Distribution Date
      shall be for the benefit of the Master Servicer. All Permitted Investments
      made
      for the benefit of Thornburg shall be made at the written direction of Thornburg
      to the Master Servicer (or, if no such written direction is received, in
      investments of the type specified in clause (vi) of the definition of Permitted
      Investments), shall mature or be subject to redemption or withdrawal on or
      before, and shall be held until, the Business Day prior to the next succeeding
      Distribution Date. Any and all investment earnings from such Permitted
      Investments shall be paid to Thornburg, and the risk of loss of moneys resulting
      from such investments shall be borne by and be the risk of Thornburg. Thornburg
      shall deposit the amount of any such loss in the Distribution Account within
      two
      Business Days of receipt of notification of such loss but not later than the
      next succeeding Distribution Date.

     

    
      
        
        

      

      
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    All
      Permitted Investments made for the benefit of the Master Servicer shall be
      in
      such Permitted Investments as shall be selected by the Master Servicer and
      shall
      mature (and be subject to withdrawal and be held until) the next succeeding
      Distribution Date. Any and all investment earnings from such Permitted
      Investments shall be paid to the Master Servicer and the risk of loss on such
      Permitted Investments shall be borne by and be the risk of the Master Servicer.
      The Master Servicer shall deposit the amount of any such loss in the
      Distribution Account no later than the next succeeding Distribution
      Date.

     

    SECTION
      4.03. Permitted
      Withdrawals and Transfers from the Distribution Account.

     

    (a) The
      Master Servicer will, from time to time on demand of a Servicer, the Securities
      Administrator, or for its own account as set forth below, make or cause to
      be
      made such withdrawals or transfers from the Distribution Account, in the case
      of
      a demand by a Servicer, as the applicable Servicer has designated for such
      transfer or withdrawal pursuant to the applicable Servicing Agreement, or in
      the
      case of a demand by the Securities Administrator as the Securities Administrator
      has demanded pursuant hereto, or as the Master Servicer has determined to be
      appropriate in accordance herewith, for the following purposes:

     

    (i) to
      reimburse the Master Servicer, as successor servicer, or any Servicer for any
      Advance (excluding Capitalization Reimbursement Amounts) of its own funds or
      of
      such Servicer’s own funds, the right of the Master Servicer or a Servicer to
      reimbursement pursuant to this subclause (i) being limited to amounts received
      on a particular Mortgage Loan (including, for this purpose, the Purchase Price
      therefor, Insurance Proceeds and Liquidation Proceeds) which represent late
      payments or recoveries of the principal of or interest on such Mortgage Loan
      respecting which such Advance was made;

     

    (ii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds or
      Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
      by the Master Servicer or such Servicer in good faith in connection with the
      restoration of the related Mortgaged Property which was damaged by an Uninsured
      Cause or in connection with the liquidation of such Mortgage Loan;

     

    (iii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds relating
      to a particular Mortgage Loan for insured expenses incurred with respect to
      such
      Mortgage Loan and to reimburse the Master Servicer or such Servicer from
      Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses
      incurred with respect to such Mortgage Loan; 

     

    (iv) to
      pay
      the Master Servicer or any Servicer, as appropriate, from Liquidation Proceeds
      or Insurance Proceeds received in connection with the liquidation of any
      Mortgage Loan, the amount which it or such Servicer would have been entitled
      to
      receive under subclause (viii) of this Subsection 4.03(a) as servicing
      compensation on account of each defaulted scheduled payment on such Mortgage
      Loan if paid in a timely manner by the related Mortgagor;

     

    
      
        
        

      

      
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    (v) to
      pay
      the Master Servicer or any Servicer from the Purchase Price for any Mortgage
      Loan, the amount which it or such Servicer would have been entitled to receive
      under subclause (viii) of this Subsection (a) as servicing
      compensation;

     

    (vi) to
      reimburse the Master Servicer, as successor servicer, or any Servicer for
      servicing related advances of funds (excluding Capitalization Reimbursement
      Amounts), the right to reimbursement pursuant to this subclause being limited
      to
      amounts received on the related Mortgage Loan (including, for this purpose,
      the
      Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
      represent late recoveries of the payments for which such servicing advances
      were
      made;

     

    (vii) to
      reimburse the Master Servicer, as successor servicer, or any Servicer for any
      Advance or Servicing Advance, after a Realized Loss has been allocated with
      respect to the related Mortgage Loan if the Advance or Servicing Advance has
      not
      been reimbursed pursuant to clauses (i) and (vi);

     

    (viii) to
      pay
      the Master Servicer its monthly Master Servicing Fee and any investment income
      and other additional servicing compensation payable pursuant to Section
      3.14;

     

    (ix) to
      reimburse the Master Servicer or the Securities Administrator for any expenses
      recoverable by the Master Servicer or the Securities Administrator pursuant
      to
      Sections 3.03 and 3.31;

     

    (x) to
      pay
      Thornburg, as a Servicer, any Prepayment Penalty Amounts and any earnings
      payable pursuant to Section 4.02(c), and to reimburse or pay any Servicer any
      such amounts as are due thereto under the applicable Servicing Agreement and
      have not been retained by or paid to the Servicer, to the extent provided in
      the
      related Servicing Agreement;

     

    (xi) to
      reimburse the Trustee and the Securities Administrator for expenses, costs
      and
      liabilities incurred by or reimbursable to it from funds of the Trust pursuant
      to Sections 3.30, 3.31 or 8.05 (including those related to the Custodian, to
      the
      extent not paid by Thornburg), and to reimburse the Trustee for any fees, costs
      and expenses costs incurred by or reimbursable to it pursuant to Section
      2.03(a), 7.01(b), 8.02, 8.05 or 8.07, to the extent not otherwise reimbursed
      to
      it;

     

    (xii) to
      make
      distributions of Retained Interest to the Retained Interest Holder on each
      Distribution Date;

     

    (xiii) to
      pay to
      Thornburg (in its capacity as a Servicer) all investment earnings on amounts
      on
      deposit in the Distribution Account to which it is entitled under Section
      4.02(c);

     

    (xiv) to
      remove
      amounts deposited in error; 

     

    (xv) to
      clear
      and terminate the Distribution Account pursuant to Section 10.01;
      and

     

    
      
        
        

      

      
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    (xvi) to
      reimburse itself for any unreimbursed Capitalization Reimbursement Amounts
      made
      by it pursuant to Section 5.05 solely from collections on account of principal
      in the related Loan Group. 

     

    (b) In
      addition, on or before the Business Day immediately preceding each Distribution
      Date, the Master Servicer shall deposit in the Distribution Account (or remit
      to
      the Securities Administrator for deposit therein) any Advances or Compensating
      Interest Payments, to the extent required but not made by the related Servicer
      and required to be made by the Master Servicer, as successor servicer, with
      respect to the Mortgage Loans.

     

    (c) The
      Securities Administrator or the Master Servicer shall keep and maintain separate
      accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
      accounting for any payments or reimbursements from the Distribution Account
      pursuant to subclauses (i) through (vii), inclusive, (ix) and (x) or with
      respect to any such amounts which would have been covered by such subclauses
      had
      the amounts not been retained by the Master Servicer without being deposited
      in
      the Distribution Account under Section 4.02(b).

     

    (d) In
      order
      to comply with its duties under the USA PATRIOT Act of 2001, the Securities
      Administrator shall obtain and verify certain information and documentation
      from
      the other parties hereto, including, but not limited to, each such party's
      name,
      address and other identifying information.

     

    (e) On
      each
      Distribution Date, the Securities Administrator shall distribute the aggregate
      Available Funds to the Holders of the Certificates in accordance with Section
      5.01.

     

    ARTICLE
      V

     

    FLOW
      OF FUNDS

     

    SECTION
      5.01. Distributions.

     

    (a) On
      each
      Distribution Date and after making any withdrawals from the Distribution Account
      pursuant to Section 4.03(a), the Securities Administrator shall withdraw funds
      on deposit in the Distribution Account to the extent of Available Funds for
      each
      Loan Group for such Distribution Date and, based on the Distribution Date
      Statement, make the following disbursements and transfers in the following
      order
      of priority:

     

    (i) the
      Available Funds for Loan Group 1 shall be distributed on each Distribution
      Date
      in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class A-R Certificates, the Class 1A-1 Certificates,
                the Class 1A-2 Certificates and the Class 1-AX Certificates, the
                related
                Interest Distributable Amounts for such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

     

    
      
        
        

      

      
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              (B)

            	
              from
                the Principal Distribution Amount for Loan Group 1 for such Distribution
                Date, an amount equal to the Senior Principal Distribution Amount
                for Loan
                Group 1 for that Distribution Date, as
                follows:

            

    

     

    first,
      to the
      Holder of Class A-R Certificate, until the Class Certificate Principal Balance
      of such Class is reduced to zero; and

     

    second,
      to the
      Holders of the Class 1A-1 Certificates and the Class 1A-2 Certificates,
      concurrently, in proportion to their outstanding Class Certificate Principal
      Balances, until the respective Class Certificate Principal Balance of each
      such
      Class is reduced to zero;

    

    (ii) the
      Available Funds for Loan Group 2 shall be distributed on each Distribution
      Date
      in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class 2A-1 Certificates, the Class 2A-2 Certificates
                and Class 2-AX Certificates, the related Interest Distributable Amounts
                for such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

    

    
      	 	
              (B)

            	
              from
                the Principal Distribution Amount for Loan Group 2 for such Distribution
                Date, an amount equal to the Senior Principal Distribution Amount
                for Loan
                Group 2 for that Distribution Date, to the Holders of the Class 2A-1
                Certificates and the Class 2A-2 Certificates, concurrently, in proportion
                to their outstanding Class Certificate Principal Balances, until
                the
                respective Class Certificate Principal Balance of each such Class
                is
                reduced to zero;

            

    

    

    (iii) the
      Available Funds for Loan Group 3 shall be distributed on each Distribution
      Date
      in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class 3A-1 Certificates, Class 3A-2 Certificates
                and
                Class 3-AX Certificates, the related Interest Distributable Amounts
                for
                such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

     

    
      	 	
              (B)

            	
              from
                the Principal Distribution Amount for Loan Group 3 for such Distribution
                Date, an amount equal to the Senior Principal Distribution Amount
                for Loan
                Group 3 for that Distribution Date, to the Holders of the Class 3A-1
                Certificates and the Class 3A-2 Certificates, concurrently, in proportion
                to their outstanding Class Certificate Principal Balances, until
                the
                respective Class Certificate Principal Balance of each such Class
                is
                reduced to zero;

            

    

     

    
      
        
        

      

      
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    (iv) the
      Available Funds for Loan Group 4 shall be distributed on each Distribution
      Date
      in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class 4A-1 Certificates, Class 4A-2 Certificates
                and
                Class 4-AX Certificates, the related Interest Distributable Amounts
                for
                such date, pro
                rata
                (based on the Interest Distributable Amounts to which each such Class
                is
                entitled); and

            

    

     

    
      	 	
              (B)

            	
              from
                the Principal Distribution Amount for Loan Group 4 for such Distribution
                Date, an amount equal to the Senior Principal Distribution Amount
                for Loan
                Group 4 for that Distribution Date, to the Holders of the Class 4A-1
                Certificates and the Class 4A-2 Certificates, concurrently, in proportion
                to their outstanding Class Certificate Principal Balances, until
                the
                respective Class Certificate Principal Balance of each such Class
                is
                reduced to zero;

            

    

     

    (v) the
      Available Funds for each Loan Group remaining after giving effect to the
      distributions specified in subsections (i) through (iii) above will be
      distributed to the Certificateholders in the following order of
      priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class B-1 Certificates, the related Interest
                Distributable Amount for that date;

            

    

     

    
      	 	
              (B)

            	
              to
                the Holders of the Class B-1 Certificates, an amount allocable to
                principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to
                zero;

            

    

    

    
      	 	
              (C)

            	
              to
                the Holders of the Class B-2 Certificates, the related Interest
                Distributable Amount for that date;

            

    

    

    
      	 	
              (D)

            	
              to
                the Holders of the Class B-2 Certificates, an amount allocable to
                principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to
                zero;

            

    

    

    
      	 	
              (E)

            	
              to
                the Holders of the Class B-3 Certificates, the related Interest
                Distributable Amount for that date;

            

    

    

    
      	 	
              (F)

            	
              to
                the Holders of the Class B-3 Certificates, an amount allocable to
                principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to
                zero;

            

    

    

    
      
        
        

      

      
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              (G)

            	
              to
                the Holders of the Class B-4 Certificates, the related Interest
                Distributable Amount for that date;

            

    

    

    
      	 	
              (H)

            	
              to
                the Holders of the Class B-4 Certificates, an amount allocable to
                principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to
                zero;

            

    

    

    
      	 	
              (I)

            	
              to
                the Holders of the Class B-5 Certificates, the related Interest
                Distributable Amount for that date;

            

    

    

    
      	 	
              (J)

            	
              to
                the Holders of the Class B-5 Certificates, an amount allocable to
                principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to
                zero;

            

    

    

    
      	 	
              (K)

            	
              to
                the Holders of the Class B-6 Certificates, the related Interest
                Distributable Amount for that date;

            

    

    

    
      	 	
              (L)

            	
              to
                the Holders of the Class B-6 Certificates, an amount allocable to
                principal equal to its Pro
                Rata
                Share for such Distribution Date until the Class Certificate Principal
                Balance of such Class is reduced to zero;
                and

            

    

    

    
      	 	
              (M)

            	
              to
                the Holder of the Class A-R Certificate, any Available Funds then
                remaining.

            

    

     

    (b) Amounts
      to be paid to the Holders of a Class of Certificates pursuant to Section 5.01(a)
      shall be payable with respect to all Certificates of that Class, pro
      rata,
      based
      on the Certificate Principal Balance or Certificate Notional Balance, as
      applicable, of each Certificate of that Class.

     

    (c) [Reserved]

     

    (d) On
      each
      Distribution Date, the Interest Distributable Amounts for the Classes of Senior
      Certificates and Subordinate Certificates on such Distribution Date shall be
      reduced proportionately by Net Interest Shortfalls based on (A) in the case
      of
      the Senior Certificates, the Interest Distributable Amount otherwise
      distributable thereon and (B) in the case of the Subordinate Certificates,
      interest accrued at the related Subordinate Certificate Pass-Through Rate on
      the
      related Apportioned Principal Balance of each such Class, in each case before
      taking into account any reduction in those amounts due to such Net Interest
      Shortfalls; provided,
      however,
      that on
      any Distribution Date after the Senior Termination Date for a Loan Group, Net
      Interest Shortfalls for that Loan Group will be allocated to the Classes of
      Subordinate Certificates based on the amount of interest each such Class of
      Subordinate Certificates would otherwise be entitled to receive on such
      Distribution Date. 

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

    (e) Notwithstanding
      the priority and allocation set forth in Section 5.01(a)(v) above, if with
      respect to any Class of Subordinate Certificates on any Distribution Date the
      sum of the related Class Subordination Percentages of such Class and of all
      other Classes of Subordinate Certificates which have a higher numerical Class
      designation than such Class (the “Applicable
      Credit Support Percentage”)
      is
      less than the Original Applicable Credit Support Percentage for such Class,
      no
      distribution of Principal Prepayments will be made to any such Classes (the
      “Restricted
      Classes”)
      and
      the amount of such Principal Prepayment otherwise distributable to the
      Restricted Classes shall be distributed to any Classes of Subordinate
      Certificates having lower numerical Class designations than such Class,
pro
      rata,
      based
      on the Class Certificate Principal Balances of the respective Classes
      immediately prior to such Distribution Date and shall be distributed in the
      sequential order provided in Section 5.01(a)(v) above.

     

    (f) (i)
      Notwithstanding the priority and allocation set forth in Section 5.01(a)(i)
      through (iii) above, on each Distribution Date prior to the Senior Credit
      Support Depletion Date but after the date on which the aggregate Class
      Certificate Principal Balance of any Class of the Senior Certificates has been
      reduced to zero, 100% of the Principal Prepayments on the Mortgage Loans in
      the
      Loan Group related to such retired Class of Senior Certificates otherwise
      distributable on each Class of Subordinate Certificates pursuant to Section
      5.01(a)(v), in reverse order of priority, shall be distributed as principal
      to
      the Senior Certificates remaining outstanding pursuant to Section 5.01(a) until
      the Class Certificate Principal Balances thereof have been reduced to zero,
      provided that on such Distribution Date either clause (i) or (ii) in the
      definition of the Two Times Test has not been met. On each Distribution Date
      on
      which any two or more of the Group 1 Certificates, Group 2 Certificates, Group
      3
      Certificates or Group 4 Certificates remain outstanding, any amounts
      distributable pursuant to this Section 5.01(f)(i) shall be distributed in
      proportion to the aggregate Class Certificate Principal Balances of such
      remaining Classes of Senior Certificates immediately prior to such Distribution
      Date.

     

    (ii) (A) On
      any
      Distribution Date on which any of the Group 1 Certificates, Group 2
      Certificates, Group 3 Certificates or Group 4 Certificates constitutes an
      Undercollateralized Group, all amounts otherwise distributable as Available
      Funds on the Subordinate Certificates, in reverse order of priority (or,
      following the Senior Credit Support Depletion Date, such other amounts described
      in the immediately following sentence), will be distributed as principal to
      the
      Senior Certificates of such Undercollateralized Group pursuant to Section
      5.01(a) first,
      up to
      the sum of the Accrued Interest Amount and the Principal Deficiency Amount
      for
      the related Undercollateralized Group (such distribution, an “Undercollateralization
      Distribution”)
      and
second,
      to pay
      to the Subordinate Certificates and the Class A-R Certificate in the same order
      and priority as provided in Section 5.01(a)(v). In the event that any Group
      1
      Certificates, Group 2 Certificates, Group 3 Certificates or Group 4 Certificates
      constitutes an Undercollateralized Group on any Distribution Date following
      the
      Senior Credit Support Depletion Date, Undercollateralization Distributions
      will
      be made from any Available Funds for a Loan Group not related to an
      Undercollateralized Group remaining after all required amounts have been
      distributed to the related Class of Senior Certificates. Undercollateralization
      Distributions will be applied first
      to pay
      accrued but unpaid interest, if any, and second
      to pay
      principal in the same priority and allocation provided in Section
      5.01(a).

    

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

    (B) If
      on any
      Distribution Date any two or more of the Group 1 Certificates, Group 2
      Certificates, Group 3 Certificates or Group 4 Certificates are
      Undercollateralized Groups, the distribution described in paragraph (ii)(A)
      above will be made, in the case of Accrued Interest Amounts, pro
      rata
      based
      upon such Accrued Interest Amounts, and, in the case of Principal Deficiency
      Amounts, in proportion to the amount by which the aggregate Class Certificate
      Principal Balance of each Class of Senior Certificates, after giving effect
      to
      distributions pursuant to Section 5.01(a) on such Distribution Date, exceeds
      the
      Loan Group Balance of the related Loan Group for such Distribution
      Date.

     

    (g) Distributions
      on Physical Certificates.
      The
      Securities Administrator shall make distributions in respect of a Distribution
      Date to each Certificateholder of record on the related Record Date (other
      than
      as provided in Section 10.01 hereof respecting the final distribution), in
      the
      case of Certificateholders of the Physical Certificates, by check or money
      order
      mailed to such Certificateholder at the address appearing in the Certificate
      Register, or by wire transfer. Distributions among Certificateholders of a
      Class
      shall be made in proportion to the Percentage Interests evidenced by the
      Certificates of that Class held by such Certificateholders.

     

    (h) Distributions
      on Book-Entry Certificates.
      Each
      distribution with respect to a Book-Entry Certificate shall be paid to the
      Depository, which shall credit 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. All such credits and disbursements
      with respect to a Book-Entry Certificate are to be made by the Depository and
      the Depository Participants in accordance with the provisions of the
      Certificates. None of the Securities Administrator, Trustee, the Depositor
      or
      the Seller shall have any responsibility therefor.

     

    SECTION
      5.02. [Reserved]

     

    SECTION
      5.03. Allocation
      of Realized Losses.

     

    (a) On
      or
      prior to each Determination Date, the Securities Administrator shall aggregate
      the loan-level information provided by the Master Servicer with respect to
      the
      total amount of Realized Losses, if any, with respect to the Mortgage Loans
      in
      each Loan Group for the related Distribution Date and include such information
      in the Distribution Date Statement.

     

    (b) Realized
      Losses with respect to each Loan Group shall be allocated on any Distribution
      Date as follows:

     

    first,
      to the
      Subordinate Certificates in reverse order of their respective numerical Class
      designations (beginning with the Class of Subordinate Certificates with the
      highest numerical Class designation) until the Class Certificate Principal
      Balance of each such Class is reduced to zero; and

     

    second, 

     

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

    (A) with
      respect to Loan Group 1, to the Class 1A-1, Class 1A-2 and Class A-R
      Certificates, pro
      rata,
      until
      the Class Certificate Principal Balance of each such Class is reduced to zero;
      provided,
      however,
      that any
      such Realized Losses that would otherwise be allocated to the Class 1A-1
      Certificates shall instead be allocated to the Class 1A-2 Certificates until
      the
      Class Certificate Principal Balance of the Class 1A-2 Certificates has been
      reduced to zero; 

     

    (B) with
      respect to Loan Group 2, to the Class 2A-1 and Class 2A-2 Certificates,
pro
      rata,
      until
      the Class Certificate Principal Balance of each such Class is reduced to zero;
      provided,
      however,
      that any
      such Realized Losses that would otherwise be allocated to the Class 2A-1
      Certificates shall instead be allocated to the Class 2A-2 Certificates until
      the
      Class Certificate Principal Balance of the Class 2A-2 Certificates has been
      reduced to zero; 

     

    (C) with
      respect to Loan Group 3, to the Class 3A-1 and Class 3A-2 Certificates,
pro
      rata,
      until
      the Class Certificate Principal Balance of each such Class is reduced to zero;
      provided,
      however,
      that any
      such Realized Losses that would otherwise be allocated to the Class 3A-1
      Certificates shall instead be allocated to the Class 3A-2 Certificates until
      the
      Class Certificate Principal Balance of the Class 3A-2 Certificates has been
      reduced to zero; and

     

    (D) with
      respect to Loan Group 4, to the Class 4A-1 and Class 4A-2 Certificates,
pro
      rata,
      until
      the Class Certificate Principal Balance of each such Class is reduced to zero;
      provided,
      however,
      that any
      such Realized Losses that would otherwise be allocated to the Class 4A-1
      Certificates shall instead be allocated to the Class 4A-2 Certificates until
      the
      Class Certificate Principal Balance of the Class 4A-2 Certificates has been
      reduced to zero. 

     

    (c) The
      Class
      Certificate Principal Balance of the Class of Subordinate Certificates then
      outstanding with the highest numerical Class designation shall be reduced on
      each Distribution Date by the amount, if any, by which the aggregate of the
      Class Certificate Principal Balances of all outstanding Classes of Certificates
      (after giving effect to the distribution of principal and the allocation of
      Realized Losses on such Distribution Date) exceeds the aggregate of the Stated
      Principal Balances of all the Mortgage Loans for the following Distribution
      Date. 

     

    (d) Any
      Realized Loss allocated to a Class of Certificates or any reduction in the
      Class
      Certificate Principal Balance of a Class of Certificates pursuant to Section
      5.03(b) or (c) shall be allocated among the Certificates of such Class,
pro
      rata,
      in
      proportion to their respective Certificate Principal Balances.

     

    (e) Any
      allocation of Realized Losses to a Certificate or any reduction in the
      Certificate Principal Balance of a Certificate pursuant to Section 5.03(b)
      or
      (c) shall be accomplished by reducing the Certificate Principal Balance thereof
      immediately following the distributions made on the related Distribution Date
      in
      accordance with the definition of “Certificate Principal Balance.”

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

     

    SECTION
      5.04. Statements. 

     

    (a) Concurrently
      with each distribution to Certificateholders, the Securities Administrator
      shall
      make available to each Certificateholder, the Seller, the Master Servicer,
      the
      Trustee and the Rating Agencies, a statement based, as applicable, on loan-level
      information provided to it by the Master Servicer and the Servicers (the
“Distribution
      Date Statement”)
      as to
      the distributions to be made or made, as applicable, on such Distribution Date.
      The Distribution Date Statement shall include the following:

     

    (i) the
      amount of the distribution made on such Distribution Date to the Holders of
      each
      Class of Certificates allocable to principal;

     

    (ii) the
      amount of the distribution made on such Distribution Date to the Holders of
      each
      Class of Certificates allocable to interest;

     

    (iii) the
      Senior Percentage, Senior Prepayment Percentage, Subordinate Percentage and
      Subordinate Prepayment Percentage with respect to each Loan Group for the
      following Distribution Date;

     

    (iv) the
      aggregate amount of servicing compensation received by each Servicer during
      the
      related Due Period;

     

    (v) the
      aggregate amount of Advances for the related Due Period and the amount of
      unreimbursed Advances as reported by each Servicer;

     

    (vi) the
      Loan
      Group Balance and related Net WAC for each Loan Group at the Close of Business
      at the end of the related Due Period;

     

    (vii) [reserved].

     

    (viii) the
      aggregate Principal Balance of the One-Month LIBOR Indexed, Six-Month LIBOR
      Indexed, One-Year LIBOR Indexed and One-Year MTA Indexed Mortgage Loans at
      the
      Close of Business at the end of the related Due Period;

     

    (ix) the
      amount of the Master Servicer Fees paid to or retained by the Master
      Servicer;

     

    (x) the
      aggregate amount of Servicing Fees paid to or retained by the
      Servicers;

     

    (xi) to
      the
      extent that such amounts are paid out of the Distribution Account, the amount
      of
      fees, expenses or indemnification amounts paid by the Trust with an
      identification of the general purpose of such amounts and the party receiving
      such amounts;

     

    (xii) for
      each
      Loan Group, the number, weighted average remaining term to maturity, weighted
      average life and weighted average Loan Rate of the related Mortgage Loans as
      of
      the related Due Date;

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    (xiii) the
      number and aggregate unpaid principal balance of Mortgage Loans, in the
      aggregate and for each Loan Group, using the “MBA” method (a) 30 to 59 days
      Delinquent, (b) 60 to 89 days Delinquent, (c) 90 or more days Delinquent, (d)
      as
      to which foreclosure proceedings have been commenced and (e) in bankruptcy,
      in
      each case as of the close of business on the last day of the preceding calendar
      month;

     

    (xiv) the
      rolling six-month delinquency rate for that Distribution Date;

     

    (xv) the
      total
      number and cumulative principal balance of all REO Properties in each Loan
      Group
      as of the Close of Business of the last day of the preceding Due
      Period;

     

    (xvi) the
      aggregate amount of Principal Prepayments and Prepayment Penalty Amounts with
      respect to each Loan Group made during the related Prepayment
      Period;

     

    (xvii) the
      aggregate amount of Realized Losses for each Loan Group and Recoveries incurred
      during the related Due Period and the cumulative amount of Realized Losses
      and
      Recoveries as of such Distribution Date;

     

    (xviii) the
      cumulative amount of Realized Losses for each Loan Group;

     

    (xix) the
      Realized Losses and Recoveries, if any, allocated to each Class of Certificates
      on the related Distribution Date;

     

    (xx) the
      Class
      Certificate Principal Balance of each Class of Certificates and the Apportioned
      Principal Balances of the Subordinate Certificates after giving effect to any
      distributions made thereon, on such Distribution Date;

     

    (xxi) the
      Interest Distributable Amount in respect of each Class of Certificates, for
      such
      Distribution Date and the respective portions thereof, if any, remaining unpaid
      following the distributions made in respect of such Certificates on such
      Distribution Date;

     

    (xxii) the
      aggregate amount of any Net Interest Shortfalls and the Unpaid Interest
      Shortfall Amount for such Distribution Date;

     

    (xxiii) the
      Available Funds with respect to each Loan Group;

     

    (xxiv) the
      Pass-Through Rate for each Class of Certificates for such Distribution Date
      

     

    (xxv) the
      aggregate Principal Balance of Mortgage Loans purchased hereunder by the Seller
      during the related Due Period; 

     

    (xxvi) the
      amount of any Principal Deficiency Amounts or Accrued Interest Amounts paid
      to
      an Undercollateralized Group or amounts paid pursuant to Section
      5.01(f)(i);

     

    (xxvii) the
      total
      number of Mortgage Loans in the aggregate and the aggregate Stated Principal
      Balance for the Group 1 Mortgage Loans (also separately stating such information
      for the Adjustable Rate Mortgage Loans, the Three-Year Hybrid Mortgage Loans
      and
      the Five-Year Hybrid Mortgage Loans), the Group 2 Mortgage Loans, the Group
      3
      Mortgage Loans and Group 4 Mortgage Loans, in each case at the close of business
      at the end of the related Due Period; and

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

    (xxviii) with
      respect to the Mortgage Loans, but only if such Mortgage Loans were subject
      to a
      modification of terms made during the related Due Period as part of a loss
      mitigation strategy, the following items:

     

    (a) the
      percentage (by outstanding Principal Balance) and the number of Mortgage Loans
      that were modified in the related Due Period;

     

    (b) the
      cumulative percentage (by Cut-Off Date Principal Balance) of modified mortgage
      loans;

     

    (c) the
      amount of principal and interest forgiven with respect to modified Mortgage
      Loans for the related Due Period;

     

    (d) the
      cumulative amount of principal and interest forgiven with respect to modified
      Mortgage Loans from the Closing Date;

     

    (e) the
      percentage (by outstanding Principal Balance) of modified Mortgage Loans that
      are included in the delinquency trigger calculation for purposes of the Step
      Down Conditions and the Two Times Test;

     

    (f) the
      delinquency status of the modified Mortgage Loans both pre- and post-
      modification;

     

    (g) the
      number of times the Mortgage Loan has been subject to modification;

     

    (h) the
      effective date of the modification;

     

    (i) the
      number of modifications made to Mortgage Loans in the last twelve
      months;

     

    (j) the
      percentage (by outstanding Principal Balance) of modified Mortgage Loans that
      are current or delinquent in payment and the delinquency status of the modified
      Mortgage Loans from the Closing Date; and

     

    (k) the
      Loan
      Rate of the modified Mortgage Loans pre- and post- modification.

     

    The
      Securities Administrator will make the Distribution Date Statement (and, at
      its
      option, any additional files containing the same information in an alternative
      format) available each month to Certificateholders and the other parties to
      this
      Agreement via the Securities Administrator’s internet website. The Securities
      Administrator’s internet website shall initially be located at “www.ctslink.com.”
      Assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at 1-866-846-4526. Parties that are unable
      to use the above distribution option 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
      reports are distributed in order to make such distribution more convenient
      and/or more accessible to the parties, and the Securities Administrator shall
      provide timely and adequate notification to all parties regarding any such
      change.

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed in a separate section of the report as a dollar
      amount for each Class for each $1,000 original dollar amount as of the Cut-Off
      Date.

     

    (l) Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall, upon written request, furnish to each Person who at any
      time during the calendar year was a Certificateholder of a Regular Certificate,
      if requested in writing by such Person, such information as is reasonably
      necessary to provide to such Person a statement containing the information
      set
      forth in subclauses (i), (ii) and (iv) above, aggregated for such calendar
      year
      or applicable portion thereof during which such Person was a Certificateholder
      and such other customary information which a Certificateholder reasonably
      requests to prepare its tax returns. Such obligation of the Securities
      Administrator shall be deemed to have been satisfied to the extent that
      substantially comparable information shall be prepared and furnished by the
      Securities Administrator to Certificateholders pursuant to any requirements
      of
      the Code as are in force from time to time.

     

    (m) On
      each
      Distribution Date, the Securities Administrator shall supply an electronic
      tape
      to Bloomberg Financial Markets, Inc. in a format acceptable to Bloomberg
      Financial Markets, Inc. on a monthly basis, and shall supply an electronic
      tape
      to Loan Performance and Intex Solutions in a format acceptable to Loan
      Performance and Intex Solutions on a monthly basis.

     

    SECTION
      5.05. Remittance
      Reports; Advances. 

     

    (a) No
      later
      than the second Business Day following each Determination Date, the Master
      Servicer shall deliver to the Securities Administrator by telecopy or electronic
      mail (or by such other means as the Master Servicer and the Securities
      Administrator may agree from time to time) the Remittance Report with respect
      to
      the related Distribution Date. Not later than the Close of Business New York
      time three Business Days prior to the related Distribution Date, the Master
      Servicer shall deliver or cause to be delivered to the Securities Administrator
      in addition to the information provided on the Remittance Report, such other
      loan-level information reasonably available to it with respect to the Mortgage
      Loans as the Securities Administrator may reasonably require to perform the
      calculations necessary to make the distributions contemplated by Section 5.01.
      

     

    (b) If
      the
      Monthly Payment on a Mortgage Loan that was due on a related Due Date and is
      delinquent, other than as a result of application of the Relief Act, and for
      which the related Servicer was required to make an advance pursuant to the
      related Servicing Agreement exceeds the amount deposited in the Distribution
      Account which will be used for an advance with respect to such Mortgage Loan,
      the Master Servicer, as successor servicer, will deposit in the Distribution
      Account not later than the Business Day immediately preceding the related
      Distribution Date an amount equal to such deficiency, net of the Servicing
      Fee
      and the Master Servicing Fee, for such Mortgage Loan except to the extent the
      Master Servicer determines any such Advance to be Nonrecoverable from
      Liquidation Proceeds, Insurance Proceeds or future payments on the Mortgage
      Loan
      for which such Advance was made. Subject to the foregoing, the Master Servicer,
      as successor servicer, shall continue to make such Advances through the date
      that the related Servicer is required to do so under its Servicing Agreement.
      If
      applicable, on the Business Day immediately preceding the related Distribution
      Date, the Master Servicer, as successor servicer, shall present an Officer’s
      Certificate to the Securities Administrator and the Trustee (i) stating that
      the
      Master Servicer elects not to make a Advance in a stated amount and (ii)
      detailing the reason it deems the advance to be Nonrecoverable.

     

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

    Notwithstanding
      anything in this Section 5.05 to the contrary, the Master Servicer’s obligation
      or the Trustee’s obligation, as successor Master Servicer, to make Advances on
      the Mortgage Loans in the aggregate shall be reduced by any Capitalization
      Reimbursement Amounts during the related Due Period.

     

    SECTION
      5.06. Compensating
      Interest Payments.

     

    The
      amount of the Master Servicing Fee payable to the Master Servicer in respect
      of
      any Distribution Date shall be reduced (but not below zero) by the amount of
      any
      Compensating Interest Payment for such Distribution Date, but only to the extent
      that Interest Shortfalls relating to such Distribution Date are required to
      be
      paid but are not actually paid by the related Servicers on the applicable
      Servicer Remittance Date. Such amount shall not be treated as an Advance and
      shall not be reimbursable to the Master Servicer.

     

    SECTION
      5.07. [Reserved].

     

    SECTION
      5.08. [Reserved].

     

    SECTION
      5.09. [Reserved].

     

    SECTION
      5.10. Recoveries.

     

    (a) The
      Class
      Certificate Principal Balance of any Class of Certificates to which a Realized
      Loss has been allocated (including any such Class for which the related Class
      Certificate Principal Balance has been reduced to zero) will be increased up
      to
      the amount of Recoveries for such Distribution Date as follows:

     

    (i) first,
      to
      increase the Class Certificate Principal Balance of each such Class of Senior
      Certificates of the related Loan Group, up to the amount of Realized Losses
      previously allocated to reduce the Class Certificate Principal Balance for
      each
      such Class, and

     

    (ii) second,
      to
      increase the Class Certificate Principal Balance of each such Class of
      Subordinate Certificates, in each case in order of seniority, up to the amount
      of Realized Losses previously allocated to reduce the Class Certificate
      Principal Balance for each such Class.

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

    (b) Any
      increase to the Class Certificate Principal Balance of a Class of Certificates
      shall increase the Certificate Principal Balance of each Certificate of the
      related Class pro
      rata
      in
      accordance with the applicable Percentage Interest.

     

    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01. The
      Certificates.

     

    The
      Certificates shall be substantially in the form annexed hereto as Exhibit A
      through E. Each of the Certificates shall, on original issue, be executed by
      the
      Securities Administrator, and authenticated and delivered by the Securities
      Administrator upon the written order of the Depositor concurrently with the
      sale
      and assignment to the Trustee of the Trust Fund. Each Class of the Regular
      Certificates shall be initially evidenced by one or more Certificates
      representing a Percentage Interest with a minimum dollar denomination of $25,000
      and integral dollar multiples of $1 in excess thereof, in the case of the Class
      1A-1, Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1,
      Class 4A-2, Class B-1, Class B-2 and Class B-3 Certificates (provided,
      that,
      such Certificates must be purchased in minimum total investments of at least
      $100,000), $100,000 minimum notional amounts and increments of $1,000 in excess
      thereof, in the case of the Class 1-AX, Class 2-AX, Class 3-AX and Class 4-AX
      Certificates and $100,000 and integral dollar multiples of $1 in excess thereof,
      in the case of the Class B-4, Class B-5 and Class B-6 Certificates, except
      that
      one Certificate of each such Class of Certificates may be in a different
      denomination so that the sum of the denominations of all outstanding
      Certificates of such Class shall equal the Class Certificate Principal Balance
      or Class Certificate Notional Balance of such Class on the Closing Date. The
      Class A-R Certificates is issuable only in a Percentage Interest of 100%.

     

    The
      Certificates shall be executed on behalf of the Trust by manual or facsimile
      signature on behalf of the Trustee by a Responsible Officer or the Securities
      Administrator. Certificates bearing the manual or facsimile signatures of
      individuals who were, at the time when such signatures were affixed, authorized
      to sign on behalf of the Trustee or Securities Administrator shall bind the
      Trust, notwithstanding that such individuals or any of them have ceased to
      be so
      authorized prior to the authentication and delivery of such Certificates or
      did
      not hold such offices at the date of such Certificate. No Certificate shall
      be
      entitled to any benefit under this Agreement or be valid for any purpose, unless
      such Certificate shall have been manually authenticated by the Trustee or
      Securities Administrator substantially in the form provided for herein, and
      such
      authentication upon any Certificate 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.
      Subject to Section 6.02(c), the Senior Certificates (other than the Residual
      Certificate) and each Class of Subordinate Certificates shall be Book-Entry
      Certificates. The Residual Certificates shall be issued as a Physical
      Certificate in definitive, fully registered form with the applicable legends
      set
      forth in Exhibit C.

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

    The
      Private Certificates shall be offered and sold in reliance on the exemption
      from
      registration under Rule 144A of the Securities Act and, shall be issued
      initially in the form of one or more permanent global Certificates in
      definitive, fully registered form with the applicable legends set forth in
      Exhibit D (each, a “Restricted
      Global Security”),
      which
      shall be deposited on behalf of the subscribers for such Certificates
      represented thereby with the Securities Administrator, as custodian for DTC
      and
      registered in the name of a nominee of DTC, duly executed and authenticated
      by
      the Securities Administrator as hereinafter provided. The aggregate principal
      amounts of the Restricted Global Securities may from time to time be increased
      or decreased by adjustments made on the records of the Securities Administrator
      and DTC or its nominee, as the case may be, as hereinafter
      provided.

     

    SECTION
      6.02. Registration
      of Transfer and Exchange of Certificates. 

     

    (a) The
      Certificate Registrar shall cause to be kept at the Corporate Trust Office
      a
      Certificate Register in which, subject to such reasonable regulations as it
      may
      prescribe, the Certificate Registrar shall provide for the registration of
      Certificates and of transfers and exchanges of Certificates as herein provided.
      The Securities Administrator shall initially serve as Certificate Registrar
      for
      the purpose of registering Certificates and transfers and exchanges of
      Certificates as herein provided.

     

    Upon
      surrender for registration of transfer of any Certificate at any office or
      agency of the Certificate Registrar maintained for such purpose pursuant to
      the
      foregoing paragraph (or, so long as the Securities Administrator serves as
      Certificate Registrar, the office of the Certificate Registrar located at Sixth
      Street and Marquette Avenue, Minneapolis, Minnesota 55479, or such other office
      or agency that the Certificate Registrar shall designate), the Securities
      Administrator on behalf of the Trust shall execute, authenticate and deliver,
      in
      the name of the designated transferee or transferees, one or more new
      Certificates of the same aggregate Percentage Interest.

     

    At
      the
      option of the Certificateholders, Certificates may be exchanged for other
      Certificates in authorized denominations and the same aggregate Percentage
      Interests, upon surrender of the Certificates to be exchanged at any such office
      or agency. Whenever any Certificates are so surrendered for exchange, the
      Securities Administrator shall execute on behalf of the Trust and authenticate
      and deliver the Certificates which the Certificateholder making the exchange
      is
      entitled to receive. Every Certificate presented or surrendered for registration
      of transfer or exchange shall (if so required by the Securities Administrator
      or
      the Certificate Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer satisfactory to the Securities Administrator and the
      Certificate Registrar duly executed by, the Holder thereof or his attorney
      duly
      authorized in writing.

     

    (b) Except
      as
      provided in paragraph (c) or (d) below, the Book-Entry Certificates shall at
      all
      times remain registered in the name of the Depository or its nominee and at
      all
      times: (i) registration of such Certificates may not be transferred by the
      Securities Administrator or the Certificate Registrar except to another
      Depository; (ii) the Depository shall maintain book-entry records with respect
      to the Certificate Owners and with respect to ownership and transfers of such
      Certificates; (iii) ownership and transfers of registration of such Certificates
      on the books of the Depository shall be governed by applicable rules established
      by the Depository; (iv) the Depository may collect its usual and customary
      fees,
      charges and expenses from its Depository Participants; (v) the Trustee, the
      Securities Administrator and the Certificate Registrar shall for all purposes
      deal with the Depository as representative of the Certificate Owners of the
      Certificates for purposes of exercising the rights of Holders under this
      Agreement, and requests and directions for and votes of such representative
      shall not be deemed to be inconsistent if they are made with respect to
      different Certificate Owners; (vi) the Trustee, the Securities Administrator
      and
      the Certificate Registrar may rely and shall be fully protected in relying
      upon
      information furnished by the Depository with respect to its Depository
      Participants and furnished by the Depository Participants with respect to
      indirect participating firms and Persons shown on the books of such indirect
      participating firms as direct or indirect Certificate Owners; and (vii) the
      direct participants of the Depository shall have no rights under this Agreement
      under or with respect to any of the Certificates held on their behalf by the
      Depository, and the Depository may be treated by the Securities Administrator,
      the Certificate Registrar and their respective agents, employees, officers
      and
      directors as the absolute owner of the Certificates for all purposes
      whatsoever.

     

    
      
        
        

      

      
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    All
      transfers by Certificate Owners of Book-Entry Certificates shall be made in
      accordance with the procedures established by the Depository Participant or
      brokerage firm representing such Certificate Owners. Each Depository Participant
      shall only transfer Book-Entry Certificates of Certificate Owners that it
      represents or of brokerage firms for which it acts as agent in accordance with
      the Depository’s normal procedures. The parties hereto are hereby authorized to
      execute a Letter of Representations with the Depository or take such other
      action as may be necessary or desirable to register a Book-Entry Certificate
      to
      the Depository. In the event of any conflict between the terms of any such
      Letter of Representation and this Agreement, the terms of this Agreement shall
      control.

     

    (c) If
      (i)(x)
      the Depository or the Depositor advises the Trustee or the Securities
      Administrator in writing that the Depository is no longer willing or able to
      discharge properly its responsibilities as Depository and (y) the Trustee,
      the
      Securities Administrator or the Depositor is unable to locate a qualified
      successor or (ii) after the occurrence and continuation of an Event of Default,
      Holders of Book-Entry Certificates having not less than 51% of the aggregate
      Certificate Principal Balance of the Certificates advise the Trustee, the
      Securities Administrator and the Depository in writing through the Depository
      Participants that the continuation of a book-entry system with respect to
      Certificates through the Depository (or its successor) is no longer in the
      best
      interests of the Holders, then the Trustee or the Securities Administrator
      shall
      request that the Depository notify all Holders of the occurrence of any such
      event and of the availability of definitive, fully registered Certificates
      to
      Holders requesting the same. Upon surrender to the Certificate Registrar of
      the
      Book-Entry Certificates by the Depository, accompanied by registration
      instructions from the Depository for registration, the Securities Administrator
      shall, at the Seller’s expense, execute on behalf of the Trust and authenticate
      definitive, fully registered certificates (the “Definitive
      Certificates”).
      None
      of the Depositor, the Securities Administrator or the Trustee shall be liable
      for any delay in delivery of such instructions and may conclusively rely on,
      and
      shall be protected in relying on, such instructions. Upon the issuance of
      Definitive Certificates, the Trustee, the Securities Administrator, the
      Certificate Registrar, any Paying Agent and the Depositor shall recognize the
      Holders of the Definitive Certificates as Certificateholders
      hereunder.

     

    
      
        
        

      

      
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    (d) No
      transfer, sale, pledge or other disposition of any Private Certificate shall
      be
      made unless such disposition is exempt from the registration requirements of
      the
      Securities Act, and any applicable state securities laws or is made in
      accordance with the Securities Act and laws. Any Private Certificates sold
      to an
“accredited investor” under Rule 501(a)(1), (2), (3) or (7) under the Securities
      Act shall be issued only in the form of one or more Definitive Certificates
      and
      the records of the Securities Administrator and DTC or its nominee shall be
      adjusted to reflect the transfer of such Definitive Certificates. In the event
      of any transfer of any Private Certificate in the form of a Definitive
      Certificate, the transferee shall certify (i) (A) such transfer is made to
      a
      Qualified Institutional Buyer in reliance upon Rule 144A (as evidenced by the
      investment letter delivered to the Securities Administrator, in substantially
      the form attached hereto as Exhibit J-2) under the Securities Act, or (B) such
      transfer is made to an “accredited investor” under Rule 501(c)(1), (2), (3) or
      (7) under the Securities Act (as evidenced by an investment letter delivered
      to
      the Securities Administrator, in substantially the form attached hereto as
      Exhibit J-1, and, if so required by the Securities Administrator, a written
      Opinion of Counsel (which may be in-house counsel) acceptable to and in form
      and
      substance reasonably satisfactory to the Securities Administrator is delivered
      to the Securities Administrator that such transfer may be made pursuant to
      an
      exemption, describing the applicable exemption and the basis therefor, from
      the
      Securities Act or is being made pursuant to the Securities Act, which Opinion
      of
      Counsel shall not be an expense of the Trustee, the Securities Administrator
      or
      the Depositor or (ii) the Securities Administrator shall require the transferor
      to execute a transferor certificate and the transferee to execute an investment
      letter acceptable to and in form and substance reasonably satisfactory to the
      Depositor and the Securities Administrator certifying to the Depositor and
      the
      Securities Administrator the facts surrounding such transfer, which investment
      letter shall not be an expense of the Trustee, the Securities Administrator
      or
      the Depositor. Each Holder of a Private Certificate desiring to effect such
      transfer shall, and does hereby agree to, indemnify the Trustee, the Securities
      Administrator, the Seller and the Depositor 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. Notwithstanding the foregoing, any transfer made to
      Thornburg or to another Affiliate of Thornburg will not require any investment
      letter or Opinion of Counsel specified above.

     

    In
      the
      case of a Private Certificate that is a Book-Entry Certificate, for purposes
      of
      the preceding paragraph, the representations set forth in the investment letter
      in clause (i) shall be deemed to have been made to the Securities Administrator
      by the transferee’s acceptance of such Private Certificate that is also a
      Book-Entry Certificate (or the acceptance by a Certificate Owner of the
      beneficial interest in such Certificate).

     

    Except
      for any transfer made to Thornburg or to another Affiliate of Thornburg, no
      transfer of an ERISA-Restricted Certificate in the form of a Definitive
      Certificate shall be made unless the Securities Administrator shall have
      received either (i) a representation from the transferee of such Certificate,
      acceptable to and in form and substance satisfactory to the Securities
      Administrator (such requirement is satisfied only by the Securities
      Administrator’s receipt of a representation letter from the transferee
      substantially in the form of Exhibit I hereto), to the effect that such
      transferee is not an employee benefit plan subject to ERISA or a plan or
      arrangement subject to Section 4975 of the Code, nor a person acting on behalf
      of any such plan or arrangement nor using the assets of any such plan or
      arrangement to effect such transfer or (ii) such Certificate is subject to
      an
      ERISA-Qualifying Underwriting and if the purchaser is an insurance company,
      a
      representation that the purchaser is an insurance company which is purchasing
      such Certificates with funds contained in an “insurance company general account”
(as such term is defined in Section V(e) of Prohibited Transaction Class
      Exemption 95-60 (“PTCE
      95-60”)
      and
      that the purchase and holding of such Certificates are covered under Sections
      I
      and III of PTCE 95-60 or (iii) an Opinion of Counsel satisfactory to the
      Securities Administrator, addressed to the Securities Administrator, to the
      effect that the purchase and holding of such ERISA-Restricted Certificate that
      is also a Physical Certificate will not result in a non-exempt prohibited
      transaction under Section 406 of ERISA or Section 4975 of the Code and will
      not
      subject the Trustee, the Master Servicer, any Servicer, the Securities
      Administrator or the Depositor to any obligation or liability in addition to
      those expressly undertaken in this Agreement, which Opinion of Counsel shall
      not
      be at the expense of the Trust or any of the above parties. Notwithstanding
      anything else to the contrary herein, any purported transfer of an
      ERISA-Restricted Certificate that is also a Physical Certificate to an employee
      benefit plan subject to ERISA or Section 4975 of the Code without the delivery
      to the Securities Administrator of a representation or an Opinion of Counsel
      satisfactory to the Securities Administrator as described above shall be void
      and of no effect.

     

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

    In
      the
      case of an ERISA-Restricted Certificate that is a Book-Entry Certificate, for
      purposes of clauses (i) or (ii) of the first sentence of the preceding
      paragraph, such representations shall be deemed to have been made to the
      Securities Administrator by the transferee’s acceptance of such ERISA-Restricted
      Certificate that is also a Book-Entry Certificate (or the acceptance by a
      Certificate Owner of the beneficial interest in such Certificate).

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      none of the Trustee, the Securities Administrator nor the Certificate Registrar
      shall have any liability to any Person for any registration of transfer of
      any
      ERISA-Restricted 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 taking any other action with respect to such Holder under the provisions
      of
      this Agreement so long as the transfer was registered by the Securities
      Administrator or the Certificate Registrar in accordance with the foregoing
      requirements. In addition, none of the Trustee, the Securities Administrator
      nor
      the Certificate Registrar shall be required to monitor, determine or inquire
      as
      to compliance with the transfer restrictions with respect to any such
      Certificate in the form of a Book-Entry Certificate, and neither the Securities
      Administrator nor the Certificate Registrar shall have any liability for
      transfers of Book-Entry Certificates or any interests therein made in violation
      of the restrictions on transfer described in the Prospectus Supplement and
      this
      Agreement.

     

    No
      transfer of a Certificate (other than an ERISA-Restricted Certificate) shall
      be
      made unless the Securities Administrator shall have received a representation
      letter from the transferee of such Certificate (other than an ERISA-Restricted
      Certificate), substantially in the form set forth in Exhibit I, to the effect
      that either (i) such transferee is neither a Plan nor a Person acting on behalf
      of any such Plan or using the assets of any such Plan to effect such transfer
      or
      (ii) if such Certificate (other than an ERISA-Restricted Certificate) has been
      the subject of an ERISA-Qualifying Underwriting, the acquisition and holding
      of
      the Certificate (other than an ERISA-Restricted Certificate) are eligible for
      exemptive relief under Prohibited Transaction Class Exemption (“PTCE”) 84-14,
      PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, the statutory exemption for
      non-fiduciary service providers under Section 408(b)(17) of ERISA and Section
      4975(d)(20) of the Code or some other applicable administrative or statutory
      exemption. Notwithstanding anything else to the contrary herein, any purported
      transfer of a Certificate (other than an ERISA-Restricted Certificate) on behalf
      of a Plan without the delivery to the Trustee of a representation letter as
      described above shall be void and of no effect. If the Certificate (other than
      an ERISA-Restricted Certificate) is a Book-Entry Certificate, the transferee
      will be deemed to have made a representation as provided in clause (i) or (ii)
      of this paragraph, as applicable.

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

    If
      any
      Certificate (other than an ERISA-Restricted Certificate), or any interest
      therein, is acquired or held in violation of the provisions of the preceding
      paragraph, the next preceding permitted beneficial owner will be treated as
      the
      beneficial owner of that Certificate (other than an ERISA-Restricted
      Certificate), retroactive to the date of transfer to the purported beneficial
      owner. Any purported beneficial owner whose acquisition or holding of a
      Certificate (other than an ERISA-Restricted Certificate), or interest therein,
      was effected in violation of the provisions of the preceding paragraph shall
      indemnify to the extent permitted by law and hold harmless the Depositor, the
      Trustee and the Securities Administrator from and against any and all
      liabilities, claims, costs or expenses incurred by such parties as a result
      of
      such acquisition or holding.

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      the Trustee and the Securities Administrator shall be under no liability to
      any
      Person for any registration of transfer of any Certificate (other than an
      ERISA-Restricted Certificate) that is in fact not permitted by this Section
      6.02(d) or for making any payments due on such Certificate (other than an
      ERISA-Restricted Certificate) to the Holder thereof or taking any other action
      with respect to such Holder under the provisions of this Agreement so long
      as
      the transfer was registered by the Securities Administrator in accordance with
      the foregoing requirements.

     

    (e) Each
      Person who has or who acquires any Ownership Interest in the Class A-R
      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 appointed the Depositor or its designee as its attorney-in-fact
      to
      negotiate the terms of any mandatory sale under clause (v) below and to execute
      all instruments of transfer and to do all other things necessary in connection
      with any such sale, and the rights of each Person acquiring any Ownership
      Interest in a Residual Certificate are expressly subject to the following
      provisions:

     

    (i) Each
      Person holding or acquiring any Ownership Interest in a Class A-R Certificate
      shall be a Permitted Transferee who acquires such Ownership Interest in a Class
      A-R Certificate for its own account and not in the capacity as trustee, nominee
      or agent for another Person and shall promptly notify the Securities
      Administrator of any change or impending change in its status as such a
      Permitted Transferee.

     

    (ii) No
      Ownership Interest in the Residual Certificate may be registered on the Closing
      Date and no Ownership Interest in a Residual Certificate may thereafter be
      transferred, and the Securities Administrator shall not register the Transfer
      of
      a Residual Certificate unless, in addition to the certificates required to
      be
      delivered under subsection (d) above, the Securities Administrator shall have
      been furnished with an affidavit (“Transfer
      Affidavit”)
      of the
      initial owner of such Residual Certificate, or proposed transferee of a Residual
      Certificate in the form attached hereto as Exhibit L.

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

    (iii) In
      connection with any proposed transfer of any Ownership Interest in the Residual
      Certificate, the Securities Administrator shall as a condition to registration
      of the transfer, require delivery to it of a Transferor Certificate in the
      form
      of Exhibit K hereto from the proposed transferor to the effect that the
      transferor (a) has no knowledge the proposed Transferee is not a Permitted
      Transferee acquiring an Ownership Interest in such Residual Certificate, as
      applicable, for its own account and not in a capacity as trustee, nominee,
      or
      agent for another Person, and (b) has not undertaken the proposed transfer
      in
      whole or in part to impede the assessment or collection of tax.

     

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section shall be absolutely
      null and void and shall vest no rights in the purported transferee. If any
      purported transferee shall, in violation of the provisions of this Section,
      become a Holder of such Residual Certificate, then the prior Holder of such
      Residual Certificate that is a Permitted Transferee shall, upon discovery that
      the registration of Transfer of such Residual Certificate was not in fact
      permitted by this Section, be restored to all rights as Holder thereof
      retroactive to the date of registration of transfer of such Residual
      Certificate. None of the Trustee, the Securities Administrator or the
      Certificate Registrar shall have any liability to any Person for any
      registration of Transfer of a Residual Certificate that is in fact not permitted
      by this Section or for making any distributions due on a Residual Certificate
      to
      the Holder thereof or taking any other action with respect to such Holder under
      the provisions of this Agreement so long as, with respect to the Securities
      Administrator, it has received the documents specified in clause (iii). The
      Securities Administrator shall be entitled to recover from any Holder of such
      Residual Certificate that was in fact not a Permitted Transferee at the time
      such distributions were made all distributions made on such Residual
      Certificate. Any such distributions so recovered by the Securities Administrator
      shall be distributed and delivered by the Securities Administrator to the last
      Holder of such Residual Certificate that is a Permitted Transferee.

     

    (v) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Securities Administrator shall have the right but not the obligation, without
      notice to the Holder of such Residual Certificate or any other Person having
      an
      Ownership Interest therein, to notify the Depositor to arrange for the sale
      of
      such Residual Certificate. The proceeds of such sale, net of commissions (which
      may include commissions payable to the Depositor or its affiliates in connection
      with such sale), expenses and taxes due, if any, will be remitted by the
      Securities Administrator to the previous Holder of such Residual Certificate
      that is a Permitted Transferee, except that in the event that the Securities
      Administrator determines that the Holder of such Residual Certificate may be
      liable for any amount due under this Section or any other provisions of this
      Agreement, the Securities Administrator may withhold a corresponding amount
      from
      such remittance as security for such claim. The terms and conditions of any
      sale
      under this clause (v) shall be determined in the sole discretion of the
      Securities Administrator and it shall not be liable to any Person having an
      Ownership Interest in such Residual Certificate as a result of its exercise
      of
      such discretion.

     

    
      
        
        

      

      
        112

        
          

        

      

      
        
        

      

    

    (vi) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Securities Administrator upon receipt of reasonable compensation will provide
      to
      the Internal Revenue Service, and to the persons specified in Sections
      860E(e)(3) and (6) of the Code, information needed to compute the tax imposed
      under Section 860E(e)(5) of the Code on transfers of residual interests to
      disqualified organizations.

     

    The
      foregoing provisions of this Section shall cease to apply to transfers occurring
      on or after the date on which there shall have been delivered to the Trustee,
      the Securities Administrator and the Servicer, in form and substance
      satisfactory to the Trustee and the Securities Administrator, (i) written
      notification from each Rating Agency that the removal of the restrictions on
      Transfer set forth in this Section will not cause such Rating Agency to
      downgrade its ratings of the Certificates and (ii) an Opinion of Counsel to
      the
      effect that such removal will not cause either REMIC created hereunder to fail
      to qualify as a REMIC.

     

    (f) No
      service charge shall be made for any registration of transfer or exchange of
      Certificates of any Class, but the Certificate Registrar 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.

     

    All
      Certificates surrendered for registration of transfer or exchange shall be
      cancelled by the Certificate Registrar and disposed of pursuant to its standard
      procedures.

     

    SECTION
      6.03. Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (i)
      any mutilated Certificate is surrendered to the Certificate Registrar or the
      Certificate Registrar receives evidence to its satisfaction of the destruction,
      loss or theft of any Certificate and (ii) there is delivered to the Trustee,
      the
      Securities Administrator, the Depositor and the Certificate Registrar such
      security or indemnity as may be required by them to save each of them harmless,
      then, in the absence of notice to the Trustee, the Securities Administrator
      or
      the Certificate Registrar that such Certificate has been acquired by a bona
      fide
      purchaser, the Securities Administrator shall execute on behalf of the Trust,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Certificate, a new Certificate of like tenor and
      Percentage Interest. Upon the issuance of any new Certificate under this
      Section, the Trustee, the Securities Administrator or the Certificate Registrar
      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 Trustee, the Securities
      Administrator and the Certificate Registrar) in connection therewith. Any
      duplicate Certificate issued pursuant to this Section, shall constitute complete
      and indefeasible evidence of ownership in the Trust, 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 Trustee, the Securities Administrator, the Certificate Registrar,
      any Paying Agent and any agent of the Depositor, the Certificate Registrar,
      any
      Paying Agent, the Securities Administrator or the Trustee may treat the Person,
      including a Depository, in whose name any Certificate is registered as the
      owner
      of such Certificate for the purpose of receiving distributions pursuant to
      Section 5.01 hereof and for all other purposes whatsoever, and none of the
      Trust, the Trustee, the Securities Administrator, the Certificate Registrar,
      the
      Paying Agent or any agent of any of them shall be affected by notice to the
      contrary.

     

    
      
        
        

      

      
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    SECTION
      6.05. Appointment
      of Paying Agent.

     

    (a) The
      Paying Agent shall make distributions to Certificateholders from the
      Distribution Account pursuant to Section 5.01 hereof. The duties of the Paying
      Agent may include the obligation to distribute statements and provide
      information to Certificateholders as required hereunder. The Paying Agent
      hereunder shall at all times be an entity duly incorporated and validly existing
      under the laws of the United States of America or any state thereof, authorized
      under such laws to exercise corporate trust powers and subject to supervision
      or
      examination by federal or state authorities. The Paying Agent shall initially
      be
      the Securities Administrator. The Securities Administrator may appoint a
      successor to act as Paying Agent, which appointment shall be reasonably
      satisfactory to the Depositor.

     

    (b) The
      Securities Administrator or the Trustee, as applicable, shall cause the Paying
      Agent (if other than the Trustee or the Securities Administrator) to execute
      and
      deliver to the Trustee an instrument in which such Paying Agent shall agree
      with
      the Trustee that such Paying Agent shall hold all sums, if any, held by it
      for
      payment to the Certificateholders in trust for the benefit of the
      Certificateholders entitled thereto until such sums shall be paid to such
      Certificateholders and shall agree that it shall comply with all requirements
      of
      the Code regarding the withholding of payments in respect of federal income
      taxes due from Certificate Owners and otherwise comply with the provisions
      of
      this Agreement applicable to it.

     

    SECTION
      6.06. Optional
      Purchase of Certificates. 

     

    (a) All
      but
      not less than all of the Certificates are subject to purchase by TMI, at its
      option, on any Distribution Date on or after the Optional Securities Purchase
      Date from the then Certificateholders thereof; provided,
      however,
      that
      TMI may appoint a designee to purchase the Residual Certificate. The purchase
      price for each Certificate (other than an Interest-Only Certificate or a
      Residual Certificate) shall be equal to the sum of (i) the Certificate
      Principal Balance of such Certificate and (ii) any accrued but unpaid
      interest thereon at the applicable Pass-Through Rate with respect thereto for
      such Distribution Date. The purchase price for the Interest-Only Certificates
      shall be an amount equal to the sum of (x) any Interest Distributable Amounts
      due (after taking into account payments made on such date from Interest
      Distributable Amounts) on each of the Interest-Only Certificates, and (y) the
      present value, as of the date of such termination, of the remaining payments
      scheduled to be made on the Interest-Only Certificates (such present value
      to be
      based on a discount rate that will approximate the expected yield to maturity
      of
      the Interest-Only Certificates). For purposes of clause (y) above, TMI will
      provide, at its expense, information from a pricing service or an independent
      valuation necessary to compute the present value of the Interest-Only
      Certificates. The Securities Administrator shall be entitled to rely on such
      information for the purchase price. The purchase price for the Class A-R
      Certificate shall be $1.00. In order to exercise the Optional Securities
      Purchase Right, TMI must, no later than the eighth Business Day prior to the
      applicable Distribution Date, deliver to the Securities Administrator (with
      copies to the Rating Agencies, the Master Servicer and the Trustee) written
      notice, in the form of Exhibit O hereto, of its intent to purchase the
      Certificates and of the Distribution Date on which it intends to do so and
      the
      Securities Administrator will verify in writing to TMI the cash amount required
      of TMI to effect such purchase no later than the third Business Day prior to
      the
      Distribution Date on which such purchase is scheduled to occur. The Securities
      Administrator shall furnish notice of the exercise of the Optional Securities
      Purchase Right to the applicable Certificateholders in compliance with Section
      6.06(c). On the Distribution Date on which the Optional Securities Purchase
      Right will be exercised, TMI shall deposit the appropriate amount in cash with
      the Securities Administrator. Such amount shall be deposited by the Securities
      Administrator into a separate sub-account of the Distribution Account (the
      “Purchase
      Account”).
      Such
      amounts shall be paid by the Securities Administrator to Holders of the
      applicable Certificates as provided in Section 6.06(d).

     

    
      
        
        

      

      
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    (b) In
      the
      case of an exercise of the Optional Securities Purchase Right, TMI shall be
      solely responsible for the costs and expenses of the Trustee, the Securities
      Administrator and the Master Servicer.

     

    (c) Notice
      of
      exercise of the Optional Securities Purchase Right under Section 6.06(a) shall
      be given by the Securities Administrator by facsimile or by first-class mail,
      postage prepaid, transmitted or mailed not less than five Business Days prior
      to
      the applicable Distribution Date, to the Holder of the Class A-R Certificate
      as
      of the close of business on the Record Date preceding such Distribution Date
      and
      to each Holder of a Certificate (other than a Residual Certificate) as of a
      date
      not more than one Business Day preceding
      the mailing of such notice, at such Holder's address appearing in the
      Certificate Register.

     

    All
      such
      notices shall state:

     

    (i) the
      Distribution Date upon which the Certificateholders will receive payment in
      full
      on the applicable Certificates;

     

    (ii) the
      amount the applicable Certificateholders will be paid, separately stating
      amounts in respect of principal and interest;

     

    (iii) that
      the
      Record Date otherwise applicable to such Distribution Date is not applicable
      and
      that payments shall be made only upon presentation and surrender of the
      respective Certificates and the place where such Certificates are to be
      surrendered for payment; and

     

    (iv) that
      interest on the respective Certificates shall cease to accrue for the benefit
      of
      the then Certificateholders on such Distribution Date and no interest shall
      accrue on the price paid for such Certificates.

     

    The
      foregoing notice shall be given by the Securities Administrator in the name
      and
      at the expense of TMI. Failure to give notice of such purchase, or any defect
      therein, to any Holder of any Certificate shall not impair or affect the
      validity of the purchase of any other Certificate.

     

    (d) The
      Certificates shall, following notice as required by Section 6.06(c), be
      purchased on the applicable Distribution Date by TMI at the price specified
      in
      Section 6.06(a) from funds in the Purchase Account, and (unless TMI shall
      default in the payment of such amount) no interest shall accrue on such amount
      for any period after the date to which accrued interest is calculated for
      purposes of calculating such amount.

     

    
      
        
        

      

      
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    (e) Subsequent
      to the purchase of the Certificates following exercise of the Optional
      Securities Purchase Right, TMI shall be deemed the sole Holder of the Offered
      Certificates (other than the Residual Certificates) and it shall either be
      the
      sole Holder of the Class A-R Certificate or may designate a Person which meets
      the requirements of this Agreement to become the Holder thereof. TMI may
      subsequently transfer some or all of the Certificates acquired by it in
      accordance with the provisions hereof. All Certificates issued to the
      Certificateholders prior to exercise of the Optional Securities Purchase Right
      shall be deemed cancelled (other than those Certificates held by
      TMI).

     

    ARTICLE
      VII

     

    DEFAULT

     

    SECTION
      7.01. Event
      of Default. 

     

    (a) If
      any
      one of the following events (each, an “Event
      of Default”)
      shall
      occur and be continuing: 

     

    (i) the
      failure by the Master Servicer to (A) in its capacity as successor servicer
      make
      any Advance on the Business Day immediately preceding the related Distribution
      Date or (B) to deposit in the Distribution Account any deposit required to
      be
      made under the terms of this Agreement, and in either case such failure
      continues unremedied for a period of three Business Days after the date upon
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Master Servicer (or, if applicable, such shorter time
      period as is provided in the penultimate sentence of Section 7.01(c));
      or

     

    (ii) the
      failure by the Master Servicer duly to observe or perform, in any material
      respect, any other covenants, obligations or agreements of the Master Servicer
      as set forth in this Agreement, which failure continues unremedied for a period
      of 60 days, in each case after the date (A) on which written notice of such
      failure, requiring the same to be remedied, shall have been given to the Master
      Servicer by the Trustee or to the Master Servicer and the Trustee by Holders
      of
      Certificates evidencing at least 25% of the Voting Rights or (B) on which a
      Servicing Officer of the Master Servicer has actual knowledge of such failure
      (or, in the case of a breach of its obligation beyond any applicable cure period
      to provide an assessment of compliance, an attestation report or a
      Sarbanes-Oxley Certification pursuant to Sections 3.16 and 3.18, respectively);
      or

     

    (iii) the
      entry
      against the Master Servicer of a decree or order by a court or agency or
      supervisory authority having jurisdiction in the premises for the appointment
      of
      a trustee, conservator, receiver or liquidator in any insolvency,
      conservatorship, receivership, readjustment of debt, marshalling of assets
      and
      liabilities or similar proceedings, or for the winding up or liquidation of
      its
      affairs, and the continuance of any such decree or order unstayed and in effect
      for a period of 60 days; or 

     

    
      
        
        

      

      
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    (iv) the
      Master Servicer shall voluntarily go into liquidation, consent to the
      appointment of a conservator or receiver or liquidator or similar person in
      any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Master Servicer or of or relating
      to
      all or substantially all of its property; or a decree or order of a court or
      agency or supervisory authority having jurisdiction in the premises for the
      appointment of a conservator, receiver, liquidator or similar person in any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings, 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, unbonded or unstayed for a period of 60
      days; or 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;

     

    (b) then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied within the applicable grace period, the Trustee shall, at the written
      direction of the Holders of Certificates evidencing Voting Rights aggregating
      not less than 51%, or at its option may, with the consent of Thornburg (not
      to
      be unreasonably withheld), by notice then given in writing to the Master
      Servicer, terminate all of the rights and obligations of the Master Servicer
      as
      servicer under this Agreement. Any such notice to the Master Servicer shall
      also
      be given to each Rating Agency, the Depositor and the Seller. On or after the
      receipt by the Master Servicer (and by the Trustee if such notice is given
      by
      the Holders) of such written notice, all authority and power of the Master
      Servicer under this Agreement, whether with respect to the Certificates or
      the
      Mortgage Loans or otherwise, shall pass to and be vested in the Trustee and
      the
      Trustee is hereby authorized and empowered to execute and deliver, on behalf
      of
      the Master Servicer, as attorney-in-fact or otherwise, 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 of each Mortgage Loan and related
      documents or otherwise. The Master Servicer agrees to cooperate with the Trustee
      in effecting the termination of the responsibilities and rights of the Master
      Servicer hereunder, including, without limitation, the delivery to the Trustee
      of all documents and records requested by it to enable it to assume the Master
      Servicer's functions under this Agreement within ten Business Days subsequent
      to
      such notice and the transfer within one Business Day subsequent to such notice
      to the Trustee for the administration by it of all cash amounts that shall
      at
      the time be held by the Master Servicer and to be deposited by it in the
      Distribution Account, any REO Account or any Servicing Account or that have
      been
      deposited by the Master Servicer in such accounts or thereafter received by
      the
      Master Servicer with respect to the Mortgage Loans or any REO Property received
      by the Master Servicer. All reasonable costs and expenses (including attorneys'
      fees) incurred in connection with transferring the Master Servicer's duties
      and
      the Mortgage Files to the successor Master Servicer and amending this Agreement
      to reflect such succession as Master Servicer pursuant to this Section shall
      be
      paid by the predecessor Master Servicer (or if the predecessor Master Servicer
      is the Trustee, the initial Master Servicer) upon presentation of reasonable
      documentation of such costs and expenses. The termination of the rights and
      obligations of the Master Servicer shall not affect any liability it may have
      incurred prior to such termination. To the extent that such costs and expenses
      of the Trustee are not fully and timely reimbursed by the predecessor Master
      Servicer, the Trustee shall be entitled to reimbursement of such costs and
      expenses from the Distribution Account.

     

    
      
        
        

      

      
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    (c) The
      Securities Administrator shall not later than the close of business on the
      Business Day immediately preceding the related Distribution Date notify the
      Trustee in writing of the Master Servicer’s failure, as successor servicer, to
      make any Advance required to be made under this Agreement on such date and
      the
      amount of such Advance. By no later than 10:00 A.M. (Chicago time) on the
      relevant Distribution Date, the Securities Administrator shall notify the
      Trustee of the continuance of such failure or that the Master Servicer, as
      successor servicer, has made the Advance, as the case may be. Notwithstanding
      the terms of the Event of Default described in clause (i)(A) of Section 7.01(a),
      the Trustee, upon receipt of written notice on the Distribution Date from the
      Securities Administrator of the continuance of the failure of the Master
      Servicer, as successor servicer, to make an Advance, shall, by notice in writing
      to the Master Servicer, which may be delivered by telecopy, immediately suspend
      all of the rights and obligations of the Master Servicer thereafter arising
      under this Agreement, but without prejudice to any rights it may have as a
      Certificateholder or to reimbursement of outstanding Advances or other amounts
      for which the Master Servicer was entitled to reimbursement as of the date
      of
      suspension, and the Trustee, subject to the cure provided for in this paragraph,
      if available, shall act as provided in Section 7.02 to carry out the duties
      of
      the Master Servicer, including the obligation to make any Advance the nonpayment
      of which is described in clause (i)(A) of Section 7.01(a). Any such action
      taken
      by the Trustee must be prior to the distribution on the relevant Distribution
      Date, and shall have all of the rights incidental thereto. If the Master
      Servicer shall within two Business Days following such suspension remit to
      the
      Trustee the amount of any Advance the nonpayment of which by the Master
      Servicer, as successor servicer, is described in clause (i)(A) of Section
      7.01(a), together with all other amounts necessary to reimburse the Trustee
      for
      actual, necessary and reasonable costs incurred by the Trustee because of action
      taken pursuant to this subsection (including interest on any Advance or other
      amounts paid by the Trustee (from and including the respective dates thereof)
      at
      a per annum rate equal to the prime rate for U.S. money center commercial banks
      as published in the Wall
      Street Journal),
      then
      the Trustee, subject to the last two sentences of this paragraph, shall permit
      the Master Servicer to resume its rights and obligations as Master Servicer
      hereunder. If the Master Servicer shall fail to remit such amounts to the
      Trustee within such two Business Days after the Distribution Date, then an
      Event
      of Default shall occur and such notice of suspension shall be deemed to be
      a
      notice of termination without any further action on the part of the Trustee.
      The
      Master Servicer agrees that if it, as successor servicer, fails to make a
      required Advance by 10:00 A.M. (Chicago time) on the related Distribution Date
      on more than two occasions in any 12 month period, the Trustee shall be under
      no
      obligation to permit the Master Servicer to resume its rights and obligations
      as
      Master Servicer hereunder, and notwithstanding the cure period provided in
      Section 7.01(a)(i)(A), an Event of Default shall be deemed to have occurred
      on
      the relevant Distribution Date. 

     

    SECTION
      7.02. Trustee
      to Act.

     

    (a) From
      and
      after the date the Master Servicer (and the Trustee, if notice is sent by the
      Holders) receives a notice of termination pursuant to Section 7.01, the Trustee
      shall be the successor in all respects to the Master Servicer in its capacity
      as
      servicer under this Agreement and the transactions set forth or provided for
      herein and shall be subject to all the responsibilities, duties and liabilities
      relating thereto placed on the Master Servicer by the terms and provisions
      hereof arising on and after its succession. As compensation therefor, the
      Trustee shall be entitled to such compensation as the Master Servicer would
      have
      been entitled to hereunder if no such notice of termination had been given.
      Notwithstanding the above, (i) if the Trustee is unwilling to act as successor
      Master Servicer or (ii) if the Trustee is legally unable so to act, subject
      to
      the rights of Thornburg under Section 3.33 hereof, the Trustee shall appoint
      or
      petition a court of competent jurisdiction to appoint, any established housing
      and home finance institution, bank or other mortgage loan or home equity loan
      servicer having a net worth of not less than $15,000,000 as the successor to
      the
      Master Servicer hereunder in the assumption of all or any part of the
      responsibilities, duties or liabilities of the Master Servicer hereunder;
      provided, that the appointment of any such successor Master Servicer shall
      not
      result in the qualification, reduction or withdrawal of the ratings assigned
      to
      the Certificates by each Rating Agency as evidenced by a letter to such effect
      from each Rating Agency. Pending appointment of a successor to the Master
      Servicer hereunder, unless the Trustee is prohibited by law from so acting,
      the
      Trustee shall act in such capacity as hereinabove provided. In connection with
      such appointment and assumption, the successor shall be entitled to receive
      compensation out of payments on Mortgage Loans in an amount equal to the
      compensation which the Master Servicer would otherwise have received pursuant
      to
      Section 3.18. The appointment of a successor Master Servicer shall not affect
      any liability of the predecessor Master Servicer which may have arisen under
      this Agreement prior to its termination as Master Servicer to pay any deductible
      under an insurance policy pursuant to Section 3.14 or to indemnify the Trustee
      pursuant to Section 8.05), nor shall any successor Master Servicer be liable
      for
      any acts or omissions of the predecessor Master Servicer or for any breach
      by
      such Master Servicer of any of its representations or warranties contained
      herein or in any related document or agreement. The Trustee and such successor
      shall take such action, consistent with this Agreement, as shall be necessary
      to
      effectuate any such succession. In the event that the Trustee shall not succeed
      to the duties of the Master Servicer pursuant to Section 7.02 hereof, Thornburg
      shall have the right, but not the obligation, to be appointed successor master
      servicer hereunder.

     

    
      
        
        

      

      
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    (b) Any
      successor, including the Trustee, to the Master Servicer as Master Servicer
      shall during the term of its service as Master Servicer continue to service
      and
      administer the Mortgage Loans for the benefit of Certificateholders, and
      maintain in force a policy or policies of insurance covering errors and
      omissions in the performance of its obligations as Master Servicer hereunder
      and
      a Fidelity Bond in respect of its officers, employees and agents to the same
      extent as the Master Servicer is so required pursuant to Section 3.04.

     

    (c) Notwithstanding
      anything else herein to the contrary, in no event shall the Trustee be liable
      for any servicing fee or for any differential in the amount of the servicing
      fee
      paid hereunder and the amount necessary to induce any successor Master Servicer
      to act as successor Master Servicer under this Agreement and the transactions
      set forth or provided for herein.

     

    SECTION
      7.03. Waiver
      of Event of Default.

     

    The
      Majority Certificateholders may, on behalf of all Certificateholders, by notice
      in writing to the Trustee, direct the Trustee to waive any events permitting
      removal of any Master Servicer under this Agreement, provided,
      however,
      that the
      Majority Certificateholders may not waive an event that results in a failure
      to
      make any required distribution on a Certificate without the consent of the
      Holder of such Certificate. Upon any waiver of an Event of Default, such event
      shall cease to exist and any Event of Default arising therefrom shall be deemed
      to have been remedied for every purpose of this Agreement. No such waiver shall
      extend to any subsequent or other event or impair any right consequent thereto
      except to the extent expressly so waived. Notice of any such waiver shall be
      given by the Trustee to each Rating Agency.

     

    
      
        
        

      

      
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    SECTION
      7.04. Notification
      to Certificateholders.

     

    (a) Upon
      any
      termination or appointment of a successor to any Master Servicer pursuant to
      this Article VII or Section 3.34, the Certificate Registrar or the Trustee,
      if
      the Master Servicer is also the Certificate Registrar and Securities
      Administrator, shall give prompt written notice thereof to the
      Certificateholders at their respective addresses appearing in the Certificate
      Register and to each Rating Agency.

     

    (b) No
      later
      than 60 days after the occurrence of any event which constitutes or which,
      with
      notice or a lapse of time or both, would constitute an Event of Default of
      which
      a Responsible Officer of the Trustee becomes aware of the occurrence of such
      an
      event, the Trustee shall transmit by mail to all Certificateholders notice
      of
      such occurrence unless such Event of Default shall have been waived or
      cured.

     

    ARTICLE
      VIII

     

    THE
      TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    SECTION
      8.01. Duties
      of Trustee and Securities Administrator.

     

    The
      Trustee, prior to the occurrence of an Event of Default and after the curing
      or
      waiver of all 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. If an Event of Default has occurred
      (which has not been cured or waived) of which a Responsible Officer has actual
      knowledge, 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 their exercise,
      as a prudent man would exercise or use under the circumstances in the conduct
      of
      his own affairs, unless the Trustee is acting as successor Master Servicer,
      in
      which case it shall use the same degree of care and skill as the Master Servicer
      hereunder with respect to the exercise of the rights and powers of the Master
      Servicer hereunder.

     

    The
      Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to the Trustee and the Securities Administrator, 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; provided,
      however,
      that
      neither the Trustee nor the Securities Administrator will be responsible for
      the
      accuracy or content of any such resolutions, certificates, statements, opinions,
      reports, documents or other instruments. If any such instrument is found not
      to
      conform to the requirements of this Agreement in a material manner the Trustee
      and the Securities Administrator shall take such action as it deems appropriate
      to have the instrument corrected.

     

    
      
        
        

      

      
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    On
      each
      Distribution Date, the Securities Administrator shall make monthly distributions
      to the Certificateholders from funds in the Distribution Account, as provided
      in
      Section 10.01 hereof based on the report of the Securities
      Administrator.

     

    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 willful misconduct; provided,
      however,
      that:

     

    (i) prior
      to
      the occurrence of an Event of Default, and after the curing of all such Events
      of Default which may have occurred, the duties and obligations of the Trustee
      and the Securities Administrator 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 of its 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 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, and conforming 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 of the Trustee or an
      officer of the Securities Administrator, respectively, unless it shall be proved
      that the Trustee or the Securities Administrator, respectively, was negligent
      in
      ascertaining or investigating the facts related thereto;

     

    (iii) neither
      the Trustee nor the Securities Administrator shall be personally liable with
      respect to any action taken, suffered or omitted to be taken by it in good
      faith
      in accordance with the consent or at the direction of Holders of Certificates
      as
      provided herein relating to the time, method and place of conducting any remedy
      pursuant to this Agreement, or exercising or omitting to exercise any trust
      or
      power conferred upon the Trustee or the Securities Administrator, respectively,
      under this Agreement; and

     

    (iv) the
      Trustee shall not be charged with knowledge of any Event of Default or any
      other
      event or matter that may require it to take action or omit to take action
      hereunder unless a Responsible Officer of the Trustee at the Corporate Trust
      Office obtains actual knowledge of such failure or the Trustee receives written
      notice of such Event of Default.

     

    Neither
      the Trustee nor the Securities Administrator shall be required to expend or
      risk
      its own funds or otherwise incur financial or other liability in the performance
      of any of its duties hereunder, or in the exercise of any of its rights or
      powers, if there is reasonable ground for believing that the repayment of such
      funds or indemnity satisfactory to it against such risk or liability is not
      assured to it, and none of the provisions contained in this Agreement shall
      in
      any event require the Trustee or the Securities Administrator to perform, or
      be
      responsible for the manner of performance of, any of the obligations of the
      Master Servicer under this Agreement, except during such time, if any, as the
      Trustee shall be the successor to, and be vested with the rights, duties, powers
      and privileges of, the Master Servicer in accordance with the terms of this
      Agreement.

     

    
      
        
        

      

      
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    SECTION
      8.02. Certain
      Matters Affecting the Trustee and the Securities Administrator.

     

    Except
      as
      otherwise provided in Section 8.01 hereof:

     

    (i) the
      Trustee and the Securities Administrator may request and conclusively rely
      upon,
      and shall be fully 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,
      and the manner of obtaining consents and of evidencing the authorization of
      the
      execution thereof by Certificateholders shall be subject to such reasonable
      regulations as the Trustee and the Securities Administrator may
      prescribe;

     

    (ii) the
      Trustee and the Securities Administrator may consult with counsel and any advice
      of its 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 rights 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, respectively, reasonable
      security or indemnity satisfactory to it against the costs, expenses and
      liabilities which may be incurred therein or thereby; the right of the Trustee
      to perform any discretionary act enumerated in this Agreement shall not be
      construed as a duty, and the Trustee shall not be answerable for other than
      its
      negligence or willful misconduct in the performance of any such
      act;

     

    (iv) neither
      the Trustee nor the Securities Administrator shall be personally 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 an Event of Default and after the curing or waiver of all
      Events of Default which may have occurred, the Trustee shall not 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 documents, unless requested in writing
      to do so by the Majority Certificateholder; provided,
      however,
      that if
      the payment within a reasonable time to the Trustee 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, not reasonably assured to the Trustee by the
      security afforded to it by the terms of this Agreement, the Trustee may require
      reasonable indemnity against such cost, expense or liability as a condition
      to
      such proceeding. If the Master Servicer fails to reimburse the Trustee in
      respect of the reasonable expense of every such examination relating to the
      Master Servicer, the Trustee shall be reimbursed by the Trust Fund;

     

    
      
        
        

      

      
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    (vi) the
      Trustee shall not be accountable, shall have no liability and makes no
      representation as to any acts or omissions hereunder of the Securities
      Administrator or the Master Servicer until such time as the Trustee may be
      required to act as the Master Servicer pursuant to Section 7.02 hereof and
      thereupon only for the acts or omissions of the Trustee as a successor Master
      Servicer; 

     

    (vii) the
      Trustee and the Securities Administrator may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or through
      agents, nominees, attorneys or a custodian, and shall not be responsible for
      any
      willful misconduct or negligence on the part of any agent, nominee, attorney
      or
      custodian appointed by the Trustee or the Securities Administrator in good
      faith; and

     

    (viii) the
      right
      of the Trustee or the Securities Administrator to perform any discretionary
      act
      enumerated in this Agreement shall not be construed as a duty, and neither
      the
      Trustee nor the Securities Administrator shall be answerable for other than
      its
      negligence or willful misconduct in the performance of such act.

     

    SECTION
      8.03. Trustee
      and the Securities Administrator Not Liable for Certificates, Mortgage Loans
      or
      Additional Collateral.

     

    The
      recitals contained herein and in the Certificates (other than the authentication
      of the Trustee or Securities Administrator on the Certificates) shall be taken
      as the statements of the Depositor or the Seller, and the neither Trustee nor
      the Securities Administrator assumes responsibility for the correctness of
      the
      same. Neither the Trustee nor the Securities Administrator makes representations
      or warranties as to the validity or sufficiency of this Agreement or of the
      Certificates (other than the signature and authentication of the Securities
      Administrator on the Certificates) or of any Mortgage Loan or related document
      or of MERS or the MERS System. The Trustee shall not be accountable for the
      use
      or application by the Master Servicer, or for the use or application of any
      funds paid to the Master Servicer in respect of related Mortgage Loans or
      deposited in or withdrawn from the Distribution Account by the Master Servicer
      or the Securities Administrator. Neither the Trustee nor the Securities
      Administrator shall at any time have any responsibility or liability for or
      with
      respect to the legality, validity and enforceability of any Mortgage or any
      Mortgage Loan, or the perfection and priority of any Mortgage or the maintenance
      of any such perfection and priority, or for or with respect to the sufficiency
      of the Trust or its ability to generate the payments to be distributed to
      Certificateholders under this Agreement, including, without limitation: the
      existence, condition and ownership of any Mortgaged Property; the existence
      and
      enforceability of any hazard insurance thereon (other than if the Trustee shall
      assume the duties of the Master Servicer pursuant to Section 7.02 hereof);
      the
      validity of the assignment of any Mortgage Loan to the Trustee or of any
      intervening assignment; the completeness of any Mortgage Loan; the performance
      or enforcement of any Mortgage Loan (other than if the Trustee shall assume
      the
      duties of the Master Servicer pursuant to Section 7.02 hereof); the compliance
      by the Depositor or the Seller with any warranty or representation made under
      this Agreement or in any related document or the accuracy of any such warranty
      or representation prior to the Trustee’s receipt of notice or other discovery of
      any non-compliance therewith or any breach thereof; any investment of monies
      by
      or at the direction of the Master Servicer or in the case of the Trustee the
      Securities Administrator or any loss resulting therefrom, it being understood
      that the Trustee shall remain responsible for any Trust property that it may
      hold in its individual capacity and the Securities Administrator shall remain
      responsible for any Trust property that it may hold in its individual capacity;
      the acts or omissions of the Master Servicer (other than as to the Securities
      Administrator, if it is also the Master Servicer, and as to the Trustee, if
      the
      Trustee shall assume the duties of the Master Servicer pursuant to Section
      7.02
      hereof, and then only for the acts or omissions of the Trustee as the successor
      Master Servicer), or any acts or omissions of any Servicer or any Mortgagor;
      any
      action of the Master Servicer (other than as to the Securities Administrator,
      if
      it is also the Master Servicer, and as to the Trustee, if the Trustee shall
      assume the duties of the Master Servicer pursuant to Section 7.02 hereof),
      or in
      the case of the Trustee the Securities Administrator or any Servicer taken
      in
      the name of the Trustee; the failure of the Master Servicer or any Servicer
      to
      act or perform any duties required of it as agent or on behalf of the Trustee
      or
      the Trust hereunder; or any action by the Trustee taken at the instruction
      of
      the Master Servicer (other than if the Trustee shall assume the duties of the
      Master Servicer pursuant to Section 7.02 hereof, and then only for the actions
      of the Trustee as the successor Master Servicer); provided,
      however,
      that the
      foregoing shall not relieve the Trustee of its obligation to perform its duties
      under this Agreement, including, without limitation, the Trustee’s duty to
      review the Mortgage Files, if so required pursuant to Section 2.01 of this
      Agreement.

     

    
      
        
        

      

      
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    SECTION
      8.04. Trustee,
      Custodian, Master Servicer and Securities Administrator May Own
      Certificates.

     

    The
      Trustee, the Custodian, the Master Servicer and the Securities Administrator
      in
      their respective individual capacities, or in any capacity other than as
      Trustee, Custodian, Master Servicer or Securities Administrator hereunder,
      may
      become the owner or pledgee of any Certificates with the same rights they would
      have if they were not Trustee, Custodian, Master Servicer or Securities
      Administrator, as applicable, and may otherwise deal with the parties
      hereto.

     

    SECTION
      8.05. Trustee’s
      and Securities Administrator’s Fees and Expenses.

     

    The
      Trustee shall be compensated by the Master Servicer for its services hereunder
      on behalf of the Trust in accordance with the fee letter between the Master
      Servicer and the Trustee. The Securities Administrator shall be compensated
      by
      the Master Servicer for its services hereunder from a portion of the Master
      Servicing Fee. In addition, the Trustee (as Trustee and in its individual
      corporate capacity) and the Securities Administrator will be entitled to recover
      from the Distribution Account pursuant to Section 4.05(a) all reasonable
      out-of-pocket expenses, disbursements and advances and the expenses of the
      Trustee (including for such purpose, any fees and expenses relating to its
      capacity as Custodian hereunder to the extent not paid by Thornburg) and the
      Securities Administrator, respectively, including without limitation, in
      connection with any Event of Default, any breach of this Agreement or any claim
      or legal action (including any pending or threatened claim or legal action)
      incurred or made by the Trustee or the Securities Administrator, respectively,
      in the performance of its duties or the administration of the trusts hereunder
      (including the reasonable compensation, expenses and disbursements of its
      counsel) except any such expense, disbursement or advance as may arise from
      its
      negligence or intentional misconduct or which is specifically designated herein
      as the responsibility of the Depositor, the Seller, the Master Servicer, the
      Certificateholders or the Trust hereunder or thereunder. If funds in the
      Distribution Account are insufficient therefor, the Trustee, the Custodian
      and
      the Securities Administrator shall recover such expenses from future collections
      on the Mortgage Loans or as otherwise agreed by the Certificateholders. Such
      compensation and reimbursement obligation shall not be limited by any provision
      of law in regard to the compensation of a trustee of an express
      trust.

     

    
      
        
        

      

      
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    SECTION
      8.06. Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and Securities Administrator hereunder shall at all times be an entity
      duly organized and validly existing under the laws of the United States of
      America or any state thereof, authorized under such laws to exercise corporate
      trust powers, each having a combined capital and surplus
      of at
      least $50,000,000 and (except with respect to the initial Trustee) a minimum
      long-term debt rating in the third highest rating category by each Rating Agency
      and in each Rating Agency’s two highest short-term rating categories, and
      subject to supervision or examination by federal or state authority. If such
      entity publishes reports of condition at least annually, pursuant to law or
      to
      the requirements of the aforesaid supervising or examining authority, then
      for
      the purposes of this Section 8.06, the combined capital and surplus
      of such
      entity shall be deemed to be its combined capital and surplus
      as set
      forth in its most recent report of condition so published. The principal office
      of the Trustee (other than the initial Trustee) shall be in a state with respect
      to which an Opinion of Counsel has been delivered to such Trustee at the time
      such Trustee is appointed Trustee to the effect that the Trust will not be
      a
      taxable entity under the laws of such state. In case at any time the Trustee
      or
      the Securities Administrator shall cease to be eligible in accordance with
      the
      provisions of this Section 8.06, the Trustee or the Securities Administrator,
      as
      applicable shall resign immediately in the manner and with the effect specified
      in Section 8.07 hereof.

     

    SECTION
      8.07. Resignation
      or Removal of Trustee and Securities Administrator.

     

    The
      Trustee and Securities Administrator may at any time resign and be discharged
      from the trusts hereby created by giving written notice thereof to the
      Depositor, the Seller, the Master Servicer and each Rating Agency. Upon
      receiving such notice of resignation of the Trustee, the Seller shall promptly
      appoint a successor Trustee that meets the requirements in Section 8.06 or,
      in
      the case of notice of resignation of the Securities Administrator, the Trustee
      shall promptly appoint a successor Securities Administrator that meets the
      requirements in Section 8.06, in each case, by written instrument, in duplicate,
      one copy of which instrument shall be delivered to each of the resigning Trustee
      or Securities Administrator, as applicable, and one copy to the successor
      Trustee or successor Securities Administrator, as applicable. If no successor
      Trustee or successor Securities Administrator, as applicable, shall have been
      so
      appointed and having accepted appointment within 30 days after the giving of
      such notice of resignation, the resigning Trustee or Securities Administrator
      may petition any court of competent jurisdiction for the appointment of a
      successor Trustee or Securities Administrator, as applicable.

     

    
      
        
        

      

      
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    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 8.06 hereof or if at any time the
      Trustee or the Securities Administrator shall be legally unable to act, or
      shall
      be adjudged a bankrupt or insolvent, or a receiver of the Trustee or the
      Securities Administrator, as applicable, or of its property shall be appointed,
      or any public officer shall take charge or control of the Trustee or the
      Securities Administrator, as applicable, or of its property or affairs for
      the
      purpose of rehabilitation, conservation or liquidation, or if the Trustee (in
      its capacity as Custodian) or the Securities Administrator fails to provide
      an
      assessment of compliance or an attestation report required under Section 3.16
      within 15 calendar days of March 1 of each calendar year in which Exchange
      Act
      reports are required then the Seller may remove the Trustee or the Trustee
      may
      remove the Securities Administrator, as applicable. If the Seller or the Trustee
      removes the Trustee or the Securities Administrator, respectively under the
      authority of the immediately preceding sentence, the Seller or the Trustee
      shall
      promptly appoint a successor Trustee or successor Securities Administrator
      that
      meets the requirements of Section 8.06, as applicable, by written instrument,
      in
      triplicate, one copy of which instrument shall be delivered to the Trustee
      or
      the Securities Administrator, as applicable, so removed, one copy to the
      successor Trustee or successor Securities Administrator, as applicable, and
      one
      copy to the Master Servicer.

     

    The
      Majority Certificateholders may at any time remove the Trustee or the Securities
      Administrator by written instrument or instruments delivered to the Seller
      and
      the Trustee; the Seller shall thereupon use its best efforts to appoint a
      successor Trustee or successor Securities Administrator, as applicable, in
      accordance with this Section. 

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor Trustee or a successor Securities Administrator,
      pursuant to any of the provisions of this Section 8.07 shall not become
      effective until acceptance of appointment by the successor Trustee or a
      successor Securities Administrator, as applicable, as provided in Section 8.08
      hereof. If the Trustee or the Securities Administrator is removed pursuant
      to
      this Section 8.07, it shall be reimbursed any outstanding and unpaid fees and
      expenses, and if removed under the authority of the immediately preceding
      paragraph, the Trustee or the Securities Administrator shall also be reimbursed
      any outstanding and unpaid costs and expenses.

     

    Notwithstanding
      anything to the contrary contained herein, in the event that the Master Servicer
      resigns or is removed as Master Servicer hereunder, the Securities Administrator
      shall have the right to resign immediately as Securities Administrator by giving
      written notice to the Seller and the Trustee, with a copy to each Rating Agency;
      provided that such resignation shall not become effective until acceptance
      of
      appointment by a successor Securities Administrator. Notwithstanding anything
      to
      the contrary herein, in the event that the Securities Administrator resigns
      or
      is removed as Securities Administrator hereunder, the Master Servicer shall
      have
      the right to resign immediately as Master Servicer by giving written notice
      to
      the Seller and the Trustee, with a copy to each Rating Agency; provided that
      such resignation shall not become effective until acceptance of appointment
      by a
      successor Master Servicer.

     

    
      
        
        

      

      
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    SECTION
      8.08. Successor
      Trustee and Successor Securities Administrator.

     

    Any
      successor Trustee or successor Securities Administrator appointed as provided
      in
      Section 8.07 hereof shall execute, acknowledge and deliver to the Depositor,
      the
      Seller and the Master Servicer and to its predecessor Trustee or Securities
      Administrator an instrument accepting such appointment hereunder, and thereupon
      the resignation or removal of the predecessor Trustee or 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 like effect as if originally named as Trustee or
      Securities Administrator. The Depositor, the Seller, the Master Servicer and
      the
      predecessor Trustee or Securities Administrator shall execute and deliver such
      instruments and do such other things as may reasonably be required for fully
      and
      certainly vesting and confirming in the successor Trustee or Securities
      Administrator, as applicable, all such rights, powers, duties and
      obligations.

     

    No
      successor Trustee or Securities Administrator shall accept appointment as
      provided in this Section 8.08 unless at the time of such acceptance such
      successor Trustee or Securities Administrator shall be eligible under the
      provisions of Section 8.06 hereof and the appointment of such successor Trustee
      or Securities Administrator shall not result in a downgrading of the Senior
      Certificates by either Rating Agency, as evidenced by a letter from each Rating
      Agency.

     

    Upon
      acceptance of appointment by a successor Trustee or Securities Administrator
      as
      provided in this Section 8.08, the successor Trustee or Securities Administrator
      shall mail notice of the appointment of a successor Trustee or Securities
      Administrator hereunder to all Holders of Certificates at their addresses as
      shown in the Certificate Register and to each Rating Agency.

     

    SECTION
      8.09. Merger
      or Consolidation of Trustee or Securities Administrator.

     

    Any
      entity into which the Trustee or the Securities Administrator may be merged
      or
      converted or with which it may be consolidated, or any entity resulting from
      any
      merger, conversion or consolidation to which the Trustee or the Securities
      Administrator shall be a party, or any entity succeeding to the corporate trust
      business of the Trustee or the Securities Administrator, shall be the successor
      of the Trustee or the Securities Administrator, as applicable, hereunder,
      provided such entity shall be eligible under the provisions of Section 8.06
      and
      8.08 hereof, 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
      8.10. Appointment
      of Co-Trustee or Separate Trustee.

     

    Notwithstanding
      any other provisions of this Agreement, at any time, for the purpose of meeting
      any legal requirements of any jurisdiction in which any part of the Trust or
      any
      Mortgaged Property may at the time be located, the Depositor and the Trustee
      acting jointly shall have the power, and the Trustee shall, and shall instruct
      the Depositor to, 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 the Trust, and to vest in such Person or Persons, in such capacity and for
      the benefit of the Certificateholders, such title to the Trust, or any part
      thereof, and, subject to the other provisions of this Section 8.10, such powers,
      duties, obligations, rights and trusts as the Master Servicer and 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 8.06 hereof, and no notice to Certificateholders of the appointment
      of
      any co-trustee or separate trustee shall be required under Section 8.08
      hereof.

     

    
      
        
        

      

      
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    Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

     

    (i) 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 (it being understood that such
      separate trustee or co-trustee is not authorized to act separately without
      the
      Trustee joining in such act), except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed (whether
      as
      Trustee hereunder or as successor to the 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
      the Trust or any portion thereof in any such jurisdiction) shall be exercised
      and performed singly by such separate trustee or co-trustee, but solely at
      the
      direction of the Trustee;

     

    (ii) no
      trustee hereunder shall be held personally liable by reason of any act or
      omission of any other trustee hereunder; and

     

    (iii) the
      Depositor and the Trustee, acting jointly may at any time accept the resignation
      of or remove any separate trustee or co-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
      VIII. Each separate trustee and co-trustee, upon its acceptance of the trusts
      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 and a copy thereof given to
      the
      Depositor.

     

    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.

     

    
      
        
        

      

      
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    SECTION
      8.11. Limitation
      of Liability.

     

    The
      Certificates are executed by the Securities Administrator, not in its individual
      capacity but solely as Securities Administrator on behalf of the Trust, in
      the
      exercise of the powers and authority conferred and vested in it by this
      Agreement. Each of the undertakings and agreements made on the part of the
      Securities Administrator in the Certificates is made and intended not as a
      personal undertaking or agreement by the Trustee but is made and intended for
      the purpose of binding only the Trust.

     

    SECTION
      8.12. Trustee
      May Enforce Claims Without Possession of Certificates.

     

    (a) All
      rights of action and claims under this Agreement or the Certificates may be
      prosecuted and enforced by the Trustee without the possession of any of the
      Certificates or the production thereof in any proceeding relating thereto,
      and
      such proceeding instituted by the Trustee shall be brought in its own name
      or in
      its capacity as Trustee for the benefit of all Holders of such Certificates,
      subject to the provisions of this Agreement. Any recovery of judgment shall,
      after provision for the payment of the reasonable compensation, expenses,
      disbursement and advances of the Trustee (for the avoidance of doubt, in its
      individual capacity and as Trustee on behalf of the Trust), its agents and
      counsel, be for the ratable benefit or the Certificateholders in respect of
      which such judgment has been recovered.

     

    (b) The
      Trustee shall afford the Seller, the Depositor and each Certificateholder upon
      reasonable notice during normal business hours at its Corporate Trust Office
      or
      other office designated by the Trustee, access to all records maintained by
      the
      Trustee in respect of its duties hereunder and access to officers of the Trustee
      responsible for performing such duties. The Trustee shall cooperate fully with
      the Seller, the Depositor and such Certificateholder and shall, subject to
      the
      first sentence of this Section 8.12(b), make available to the Seller, the
      Depositor and such Certificateholder for review and copying such books,
      documents or records as may be requested with respect to the Trustee’s duties
      hereunder. The Seller, the Depositor and the Certificateholders shall not have
      any responsibility or liability for any action or failure to act by the Trustee
      and are not obligated to supervise the performance of the Trustee under this
      Agreement or otherwise.

     

    (c) The
      Securities Administrator shall afford the Seller, the Depositor, the Trustee
      and
      each Certificateholder upon reasonable notice during normal business hours
      at
      its offices at 9062 Old Annapolis Road, Columbia, Maryland 21045 or other office
      designated by the Securities Administrator, access to all records maintained
      by
      the Securities Administrator in respect of its duties hereunder and access
      to
      officers of the Securities Administrator responsible for performing such duties.
      Upon request, the Securities Administrator shall furnish the Depositor and
      any
      requesting Certificateholder with its most recent audited financial statements.
      The Securities Administrator shall cooperate fully with the Seller, the
      Depositor, the Trustee and such Certificateholder and shall, subject to the
      first sentence of this Section 8.12(c), make available to the Seller, the
      Depositor and such Certificateholder for review and copying such books,
      documents or records as may be requested with respect to the Securities
      Administrator’s duties hereunder. The Seller, the Depositor, the Trustee and the
      Certificateholders shall not have any responsibility or liability for any action
      or failure to act by the Securities Administrator and are not obligated to
      supervise the performance of the Securities Administrator under this Agreement
      or otherwise.

     

    
      
        
        

      

      
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    SECTION
      8.13. Suits
      for Enforcement.

     

    In
      case
      an Event of Default or a default by the Depositor hereunder shall occur and
      be
      continuing, the Trustee may proceed to protect and enforce its rights and the
      rights of the Certificateholders under this Agreement, as the case may be,
      by a
      suit, action or proceeding in equity or at law or otherwise, whether for the
      specific performance of any covenant or agreement contained in this Agreement
      or
      in aid of the execution of any power granted in this Agreement or for the
      enforcement of any other legal, equitable or other remedy, as the Trustee,
      being
      advised by counsel, and subject to the foregoing, shall deem most effectual
      to
      protect and enforce any of the rights of the Trustee and the
      Certificateholders.

     

    SECTION
      8.14. Waiver
      of Bond Requirement.

     

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust, or any part thereof, may
      be
      located that the Trustee post a bond or other surety with any court, agency
      or
      body whatsoever.

     

    SECTION
      8.15. Waiver
      of Inventory, Accounting and Appraisal Requirement.

     

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust, or any part thereof, may
      be
      located that the Trustee file any inventory, accounting or appraisal of the
      Trust with any court, agency or body at any time or in any manner
      whatsoever.

     

    SECTION
      8.16. Appointment
      of Custodians.

     

    The
      Trustee may appoint one or more custodians to hold all or a portion of the
      related Mortgage Files as agent for the Trustee, by entering into a custodial
      agreement. The custodian may at any time be terminated and a substitute
      custodian appointed therefor by the Trustee. Subject to this Article VIII,
      the
      Trustee agrees to comply with the terms of each custodial agreement and to
      enforce the terms and provisions thereof against the custodian for the benefit
      of the Certificateholders having an interest in any Mortgage File held by such
      custodian. Each custodian shall be a depository institution or trust company
      subject to supervision by federal or state authority, shall have combined
      capital and surplus
      of at
      least $15,000,000 and shall be qualified to do business in the jurisdiction
      in
      which it holds any Mortgage File. The Seller shall pay from its own funds,
      without any right to reimbursement, the fees, costs and expenses of each
      custodian (including the costs of custodian’s counsel).

     

    
      
        
        

      

      
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    ARTICLE
      IX

     

    REMIC
      ADMINISTRATION

     

    SECTION
      9.01. REMIC
      Administration.

     

    (a) As
      set
      forth in the Preliminary Statement to this Agreement, three REMIC elections
      shall be made by the Trust. The Trustee shall sign and the Securities
      Administrator shall file such elections on Form 1066 or other appropriate
      federal tax or information return for the taxable year ending on the last day
      of
      the calendar year in which the Certificates are issued. The regular interests
      in
      each REMIC created hereunder and the related residual interest shall be as
      designated in the Preliminary Statement. Following the Closing Date, the
      Securities Administrator shall apply to the Internal Revenue Service for an
      employer identification number for each REMIC created hereunder by means of
      a
      Form SS-4 or other acceptable method and shall file a Form 8811 with the
      Internal Revenue Service.

     

    (b) The
      Closing Date is hereby designated as the “Startup Day” of each REMIC created
      hereunder within the meaning of section 860G(a)(9) of the Code.

     

    (c) Except
      as
      provided in subsection (d) of this Section 9.01, the Securities Administrator
      shall pay any and all tax related expenses (not including taxes) of each REMIC
      created hereunder, including but not limited to any professional fees or
      expenses related to audits or any administrative or judicial proceedings with
      respect to any such REMIC that involve the Internal Revenue Service or state
      tax
      authorities, but only to the extent that (i) such expenses are ordinary or
      routine expenses, including expenses of a routine audit but not expenses of
      litigation (except as described in (ii)); or (ii) such expenses or liabilities
      (including taxes and penalties) are attributable to the negligence or willful
      misconduct of the Securities Administrator in fulfilling its duties hereunder
      (including the Securities Administrator’s duties as tax return
      preparer).

     

    (d) The
      Securities Administrator shall prepare and file, and the Trustee shall sign
      all
      of the federal and state tax and information returns of each REMIC created
      hereunder (collectively, the “Tax
      Returns”)
      as the
      direct representative. The expenses of preparing and filing such Tax Returns
      shall be borne by the Securities Administrator. Notwithstanding the foregoing,
      the Securities Administrator shall have no obligation to prepare, file or
      otherwise deal with partnership tax information or returns. In the event that
      partnership tax information or returns are required by the Internal Revenue
      Service, the Seller, at its own cost and expense, will prepare and file all
      necessary returns. The Internal Revenue Service has issued OID regulations
      under
      Sections 1271 to 1275 of the Code generally addressing the treatment of debt
      instruments issued with original issue discount. Under those regulations, debt
      issued to one Person generally is aggregated in determining if there is OID.
      Because certain Classes of Regular Certificates are expected to be issued to
      one
      Person (which intends to continue to hold the Regular Certificates indefinitely
      and, in any case, for at least 30 days), the Securities Administrator, on behalf
      of the Trust, intends to determine the existence and amount of any OID as if
      those Classes of Regular Certificates were one debt instrument. 

     

    (e) The
      Securities Administrator shall perform on behalf of each REMIC created hereunder
      all reporting and other tax compliance duties that are the responsibility of
      each 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, if required by the Code, the REMIC Provisions
      or other such guidance, the Securities Administrator, shall provide (i) to
      the
      Treasury or other governmental authority such information as is necessary for
      the application of any tax relating to the transfer of the Class A-R Certificate
      to any disqualified organization and (ii) to the Certificateholders such
      information or reports as are required by the Code or REMIC
      Provisions.

     

    
      
        
        

      

      
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    (f) Each
      of
      the Trustee, the Securities Administrator and the Holders of Certificates (to
      the extent that the affairs of the REMICs are within such Person’s control and
      the scope of its specific responsibilities under the Agreement) shall take
      any
      action or cause any REMIC created hereunder to take any action necessary to
      create or maintain the status of the REMIC created hereunder as a REMIC under
      the REMIC Provisions and shall assist each other as necessary to create or
      maintain such status. None of the Trustee, the Securities Administrator or
      the
      Holder of a Residual Certificate shall take any action, cause any REMIC created
      hereunder 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 result in an Adverse REMIC Event unless the Trustee and the Securities
      Administrator have received an Opinion of Counsel (at the expense of the party
      seeking to take such action) to the effect that the contemplated action will
      not
      result in an Adverse REMIC Event. In addition, prior to taking any action with
      respect to any REMIC created hereunder or the assets therein, or causing any
      such REMIC to take any action which is not expressly permitted under the terms
      of this Agreement, any Holder of the Class A-R Certificate will consult with
      the
      Securities Administrator or its designees, in writing, with respect to whether
      such action could cause an Adverse REMIC Event to occur with respect to any
      such
      REMIC, and no such Person shall take any such action or cause any REMIC created
      hereunder to take any such action as to which the Securities Administrator
      has
      advised it in writing that an Adverse REMIC Event could occur. 

     

    (g) Each
      Holder of the Class A-R Certificate shall pay when due any and all taxes imposed
      on the related REMICs created hereunder by federal or state governmental
      authorities. To the extent that such Trust taxes are not paid by the Class
      A-R
      Certificateholder, the Securities Administrator shall pay any remaining REMIC
      taxes out of current or future amounts otherwise distributable to the Holder
      of
      the Class A-R Certificate or, if no such amounts are available, out of other
      amounts held in the Distribution Account, and shall reduce amounts otherwise
      payable to holders of regular interests in such related REMIC, as the case
      may
      be.

     

    (h) The
      Securities Administrator shall, for federal income tax purposes, maintain books
      and records with respect to each REMIC created hereunder on a calendar year
      and
      on an accrual basis.

     

    (i) No
      additional contributions of assets shall be made to any REMIC created hereunder,
      except as expressly provided in this Agreement with respect to eligible
      substitute mortgage loans.

     

    (j) Neither
      the Trustee nor the Securities Administrator shall enter into any arrangement
      by
      which any REMIC created hereunder will receive a fee or other compensation
      for
      services.

     

    
      
        
        

      

      
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    SECTION
      9.02. Prohibited
      Transactions and Activities.

     

    Neither
      the Depositor nor the Trustee shall sell, dispose of, or substitute for any
      of
      the Mortgage Loans, except in a disposition pursuant to (i) the foreclosure
      of a
      Mortgage Loan, (ii) the bankruptcy of the Trust Fund, (iii) the termination
      of the REMICs created hereunder pursuant to Article X of this Agreement, (iv)
      a
      substitution pursuant to Article II hereof or (v) a repurchase of Mortgage
      Loans
      as contemplated hereunder, nor acquire any assets for any REMIC created
      hereunder, nor sell or dispose of any investments in the Distribution Account
      for gain, nor accept any contributions to any REMIC created hereunder after
      the
      Closing Date, unless it has received an Opinion of Counsel (at the expense
      of
      the party causing such sale, disposition, or substitution) that such
      disposition, acquisition, substitution, or acceptance will not result in an
      Adverse REMIC Event.

     

    ARTICLE
      X

     

    TERMINATION

     

    SECTION
      10.01. Termination.

     

    (a) The
      respective obligations and responsibilities of the Seller, the Depositor, the
      Master Servicer, the Securities Administrator and the Trustee created hereby
      (other than the obligation of the Securities Administrator to make certain
      payments to Certificateholders after the final Distribution Date and the
      obligation of the Master Servicer to send certain notices as hereinafter set
      forth) shall terminate upon notice to the Trustee and the Securities
      Administrator upon the earliest of (i) the Distribution Date on which the
      Class Certificate Principal Balance (or Class Certificate Notional Balance
      in
      the case of the Interest-Only Certificates) of each Class of Certificates has
      been reduced to zero, (ii) the final payment or other liquidation of the
      last Mortgage Loan, (iii) the optional purchase of the Mortgage Loans as
      described in the following paragraph and (iv) the Latest Possible Maturity
      Date. 

     

    Thornburg
      (solely in its capacity as a Servicer of the Mortgage Loans) may, at its option,
      terminate this Agreement on any Distribution Date on which the aggregate of
      the
      Stated Principal Balances of the Mortgage Loans as of the end of the immediately
      preceding Due Period is equal to or less than 10% of the aggregate Cut-Off
      Date
      Principal Balance, by purchasing, on such Distribution Date, all of the
      outstanding Mortgage Loans and REO Properties at a price equal to the sum of
      (i)
      the outstanding Stated Principal Balances of the Mortgage Loans (other than
      in
      respect of REO Properties), (ii) the lesser of (x) the appraised value of any
      REO Property as determined by the higher of two appraisals completed by two
      independent appraisers selected by Thornburg at the expense of Thornburg less
      the good faith estimate of the Master Servicer or the related Servicer, as
      applicable, of Liquidation Expenses to be incurred in connection with its
      disposal and (y) the Principal Balance of each Mortgage Loan related to any
      REO
      Property and (iii) in all cases, accrued and unpaid interest thereon at the
      applicable Loan Rate through the end of the Due Period preceding the final
      Distribution Date, plus unreimbursed Servicing Advances and Advances and any
      unpaid Master Servicing Fees and Servicing Fees allocable to such Mortgage
      Loans
      and REO Properties, plus all amounts, if any, then due and owing to the Trustee,
      the Master Servicer and the Securities Administrator (the “Termination
      Price”).

     

    
      
        
        

      

      
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    In
      addition, Wells Fargo Bank, N.A. (solely in its capacity as the Master Servicer)
      may, at its option, terminate this Agreement on any Distribution Date on which
      the aggregate of the Stated Principal Balances of the Mortgage Loans as of
      the
      end of the immediately preceding Due Period is equal to or less than 5% of
      the
      aggregate Cut-Off Date Principal Balance, by purchasing, on such Distribution
      Date, all of the outstanding Mortgage Loans and REO Properties at a price equal
      to Termination Price; provided,
      that
      the
      right of Wells Fargo Bank, N.A. to repurchase all the Mortgage Loans shall
      be
      exercisable only if Thornburg has not elected to exercise its optional
      termination right on or before such date.

     

    (b) Notice
      of
      any termination pursuant to the second or third paragraphs of Section 10.01(a),
      specifying the Distribution Date (which shall be a date that would otherwise
      be
      a Distribution Date) upon which the Certificateholders may surrender their
      Certificates to the Securities Administrator for payment of the final
      distribution and cancellation, shall be given promptly by the Securities
      Administrator upon the Securities Administrator receiving notice of such date
      from the Master Servicer by letter to the Certificateholders mailed not earlier
      than the 10th day and not later than the 19th day of the month of such
      final distribution specifying (1) the Distribution Date upon which final
      distributions on the Certificates will be made upon presentation and surrender
      of such Certificates at the office or agency of the Securities Administrator
      therein designated, (2) the amount of any such final distribution and
      (3) that the Record Date otherwise applicable to such Distribution Date is
      not applicable, distributions being made only upon presentation and surrender
      of
      the Certificates at the office or agency of the Securities Administrator therein
      specified.

     

    (c) Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall cause to be distributed to the Holders of the Certificates on the
      Distribution Date for such final distribution, in proportion to the Percentage
      Interests of their respective Class and to the extent that funds are available
      for such purpose, an amount equal to the amount required to be distributed
      to
      such Holders in accordance with the provisions of Section 4.01 hereof for
      such Distribution Date.

     

    (d) In
      the
      event that the applicable Certificateholders shall not surrender their
      Certificates for final payment and cancellation on or before such final
      Distribution Date relating to these Certificates as put forth in paragraph
      (b)
      of this section, the Securities Administrator shall promptly following such
      date
      cause all funds in the Distribution Account not distributed in final
      distribution to such Certificateholders to be withdrawn therefrom and credited
      to the remaining Certificateholders by depositing such funds in a separate
      account for the benefit of such Certificateholders, and the Securities
      Administrator shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within nine months after the
      second notice all the Certificates shall not have been surrendered for
      cancellation, the Master Servicer shall be entitled to all unclaimed funds
      and
      other assets which remain subject hereto, and the Securities Administrator
      upon
      transfer of such funds shall be discharged of any responsibility for such funds,
      and the Certificateholders shall look to the Master Servicer for
      payment.

     

    
      
        
        

      

      
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    SECTION
      10.02. Additional
      Termination Requirements.

     

    (a) In
      the
      event the purchase option provided in Section 10.01 is exercised, the Trust
      shall be terminated in accordance with the following additional
      requirements:

     

    (i) The
      Trustee at the direction of the Securities Administrator shall sell any
      remaining assets of the Trust Fund to Thornburg or its designee or Wells Fargo
      Bank, N.A. or its designee, as the case may be, for cash and, within 90 days
      of
      such sale, the Securities Administrator shall distribute to (or credit to the
      account of) the Certificateholders the proceeds of such sale together with
      any
      cash on hand (less amounts retained to meet claims) in complete liquidation
      of
      the Trust Fund, and each REMIC created hereunder; and

     

    (ii) The
      Securities Administrator shall attach a statement to the final federal income
      tax return for each REMIC created hereunder stating that pursuant to Treasury
      Regulation §1.860F-1, the first day of the 90 day liquidation period for such
      REMIC was the date on which the Trustee sold the assets of the Trust Fund 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
      delivered to the Trustee and the Securities Administrator obtained at the
      expense of the Seller.

     

    (b) By
      their
      acceptance of Certificates, the Holders thereof hereby agree to appoint the
      Trustee and the Securities Administration as their attorneys in fact to
      undertake the foregoing steps.

     

    ARTICLE
      XI

     

    DISPOSITION
      OF TRUST ASSETS

     

    SECTION
      11.01. Disposition
      of Trust Assets.

     

    Neither
      the Trust, nor this Agreement, may be terminated or voided, or any disposition
      of the assets of the Trust effected, other than in accordance with the terms
      hereof, except to the extent that Holders representing no less than the entire
      beneficial ownership interest of the Certificates have so assented.

     

    ARTICLE
      XII

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by Seller, the Depositor, the Master
      Servicer, the Securities Administrator and the Trustee, and without the consent
      of the Certificateholders, (i) to cure any ambiguity, (ii) to correct
      or supplement any provisions herein which may be defective or inconsistent
      with
      any other provisions herein, (iii) 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, or (iv) to conform the
      terms
      hereof to the description thereof provided in the Prospectus; provided,
      however,
      that any
      such action listed in clause (i) through (iii) above shall be deemed
      not to adversely affect in any material respect the interests of any
      Certificateholder, if evidenced by (i) written notice to the Depositor, the
      Seller, the Master Servicer, the Securities Administrator and the Trustee from
      each Rating Agency that such action will not result in the reduction or
      withdrawal of the rating of any outstanding Class of Certificates with respect
      to which it is a Rating Agency or (ii) an Opinion of Counsel stating that
      such amendment shall not adversely affect in any material respect the interests
      of any Certificateholder, is permitted by the Agreement and all the conditions
      precedent, if any have been complied with, delivered to the Master Servicer,
      the
      Securities Administrator and the Trustee.

     

    
      
        
        

      

      
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    In
      addition, this Agreement may be amended from time to time by Seller, the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      and
      with the consent of the Majority Certificateholders 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 or waiver shall (x) reduce in any manner the amount of, or
      delay the timing of, payments on the Certificates that are required to be made
      on any Certificate without the consent of the Holder of such Certificate,
      (y) adversely affect in any material respect the interests of the Holders
      of any Class of Certificates in a manner other than as described in clause
      (x)
      above, without the consent of the Holders of Certificates of such Class
      evidencing at least a 66% Percentage Interest in such Class, or (z) reduce
      the percentage of Voting Rights required by clause (y) above without the
      consent of the Holders of all Certificates of such Class then outstanding.
      Upon
      approval of an amendment, a copy of such amendment shall be sent to each Rating
      Agency.

     

    Notwithstanding
      any provision of this Agreement to the contrary, neither the Trustee nor the
      Securities Administrator shall consent to any amendment to this Agreement unless
      it shall have first received an Opinion of Counsel, delivered by and at the
      expense of the Person seeking such Amendment (unless such Person is the Trustee
      or the Securities Administrator, in which case the Trustee or the Securities
      Administrator shall be entitled to be reimbursed for such expenses by the Trust
      pursuant to Section 8.05 hereof), to the effect that such amendment will not
      result in the imposition of a tax on any REMIC created hereunder pursuant to
      the
      REMIC Provisions or cause any REMIC created hereunder to fail to qualify as
      a
      REMIC at any time that any Certificates are outstanding and that the amendment
      is being made in accordance with the terms hereof, such amendment is permitted
      by this Agreement and all conditions precedent, if any, have been complied
      with.

     

    Promptly
      after the execution of any such amendment the Securities Administrator shall
      furnish, at the expense of the Person that requested the amendment if such
      Person is the Seller (but in no event at the expense of the Trustee or the
      Securities Administrator), otherwise at the expense of the Trust, a copy of
      such
      amendment and the Opinion of Counsel referred to in the immediately preceding
      paragraph to the Master Servicer and each Rating Agency.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 12.01 to approve the particular form of any proposed amendment;
      instead 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 Securities Administrator may
      prescribe.

     

    
      
        
        

      

      
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    The
      Trustee and Securities Administrator may, but shall not be obligated to, enter
      into any amendment pursuant to this 12.01 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 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 Mortgaged Properties
      are situated, and in any other appropriate public recording office or elsewhere,
      such recordation to be effected by the Trustee at the expense of the Trust,
      but
      only upon direction of Certificateholders accompanied by 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 together constitute but one and the same
      instrument.

     

    SECTION
      12.03. Limitation
      on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not (i) operate to terminate
      this Agreement or the Trust, (ii) 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 or
      (iii) otherwise affect the rights, obligations and liabilities of the
      parties hereto or any of them.

     

    Except
      as
      expressly provided for herein, no Certificateholder shall have any right to
      vote
      or in any manner otherwise control the operation and management of the Trust,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms 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 whatever 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, which priority or preference is not otherwise provided
      for herein, 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 12.03, each and every Certificateholder and the Trustee shall be
      entitled to such relief as can be given either at law or in equity.

     

    
      
        
        

      

      
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    SECTION
      12.04. Governing
      Law; Jurisdiction.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder 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 or delivered via
      telecopy, to (a) in the case of the Seller, to Thornburg Mortgage Home
      Loans, Inc., 150 Washington Avenue, Suite 302, Santa Fe, New Mexico 87501,
      Attention: Deborah Burns (telecopy number (505) 467-5215), or such other
      address or telecopy number as may hereafter be furnished to the Depositor,
      the
      Master Servicer, the Securities Administrator, and the Trustee in writing by
      the
      Seller, (b) in the case of the Trustee, to the Corporate Trust Office or such
      other address or telecopy number as may hereafter be furnished to the Depositor,
      the Master Servicer, the Securities Administrator, and the Seller in writing
      by
      the Trustee, (c) in the case of the Depositor, to Greenwich Capital
      Acceptance, Inc., 600 Steamboat Road, Greenwich, Connecticut 06830,
      Attention: Legal (telecopy number (203) 618-2132), or such other address or
      telecopy number as may be furnished to the Seller, the Master Servicer, the
      Securities Administrator, and the Trustee in writing by the Depositor and (d)
      in
      the case of the Master Servicer or Securities Administrator, for certificate
      transfer purposes, at its Corporate Trust Office and for all other purposes
      at
      P.O. Box 98, Columbia, Maryland 21046, or for overnight delivery, at 9062 Old
      Annapolis Road, Columbia, Maryland 21045 (Attention: Thornburg 2008-1),
      Facsimile no.: (410) 715-2380, or such other address or telecopy number as
      may
      be furnished to the Depositor, the Seller, the Securities Administrator, and
      the
      Trustee in writing by the Master Servicer. Any notice required or permitted
      to
      be mailed to a Certificateholder shall be given by first class mail, postage
      prepaid, at the address of such Holder as shown in the Certificate Register.
      Notice of any Event of Default shall be given by telecopy and by certified
      mail.
      Any notice so mailed within the time prescribed in this Agreement shall be
      conclusively presumed to have duly been given when mailed, whether or not the
      Certificateholder receives such notice. A copy of any notice required to be
      telecopied hereunder shall also be mailed to the appropriate party in the manner
      set forth above.

     

    
      
        
        

      

      
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    SECTION
      12.06. Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall for any reason whatsoever be 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. 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
      12.08. Notice
      to the Rating Agencies.

     

    (a) The
      Securities Administrator shall be obligated to use its best reasonable efforts
      promptly to provide notice to the Rating Agencies with respect to each of the
      following of which a Responsible Officer of the Securities Administrator has
      actual knowledge:

     

    (i) any
      material change or amendment to this Agreement;

     

    (ii) the
      occurrence of any Event of Default that has not been cured or
      waived;

     

    (iii) the
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Trustee;

     

    (iv) the
      final
      payment to Holders of the Certificates of any Class; and

     

    (v) any
      change in the location of any Account.

     

    (b) In
      addition, the Securities Administrator shall promptly furnish to the Rating
      Agencies copies of each Statement to Certificateholders described in Section
      5.04 hereof; if the Trustee is acting as a successor Master Servicer pursuant
      to
      Section 7.02 hereof, the Trustee shall notify the Rating Agencies of any event
      that would result in the inability of the Trustee to make Advances and the
      Master Servicer shall promptly furnish to each Rating Agency copies of the
      following:

     

    (i) each
      annual statement as to compliance described in Section 3.17 hereof;

     

    (ii) each
      annual assessment of compliance and attestation report described in Section
      3.16
      hereof; and

     

    (iii) each
      notice delivered pursuant to Section 5.05(b) hereof which relates to the fact
      that the Master Servicer, as successor servicer, has not made an
      Advance.

     

    
      
        
        

      

      
        139

        
          

        

      

      
        
        

      

    

    (c) All
      notices to the Rating Agencies provided for in this Agreement shall be in
      writing and sent by first class mail, telecopy or overnight courier, as
      follows:

     

    If
      to
      Fitch, to:

    

    One
      State
      Street Plaza

    New
      York,
      NY 10004

    Attention:
      Residential Mortgages

    

    If
      to
      S&P, to:

    

    55
      Water
      Street

    New
      York,
      New York 10041

    Attention:
      Residential Mortgages

     

    SECTION
      12.09. Further
      Assurances.

     

    Notwithstanding
      any other provision of this Agreement, neither the Regular Certificateholders
      nor the Trustee shall have any obligation to consent to any amendment or
      modification of this Agreement unless they have been provided reasonable
      security or indemnity against their out-of-pocket expenses (including reasonable
      attorneys’ fees) to be incurred in connection therewith.

     

    SECTION
      12.10. Benefits
      of Agreement.

     

    Nothing
      in this Agreement or in the Certificates, expressed or implied, shall give
      to
      any Person, other than the Certificateholders and the parties hereto and their
      successors hereunder, any benefit or any legal or equitable right, remedy or
      claim under this Agreement.

     

    SECTION
      12.11. Acts
      of Certificateholders.

     

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Agreement to be given or taken by the Certificateholders
      may be embodied in and evidenced by one or more instruments of substantially
      similar tenor signed by such Certificateholders in person or by agent duly
      appointed in writing, and such action shall become effective when such
      instrument or instruments are delivered to the Trustee and the Seller. Such
      instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “act” of the Certificateholders
      signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Agreement and conclusive in favor of the Trustee and the Trust,
      if made in the manner provided in this Section 12.11.

     

    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by the certificate
      of
      a notary public or other officer authorized by law to take acknowledgments
      of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Whenever such execution is by a
      signer acting in a capacity other than his or her individual capacity, such
      certificate or affidavit shall also constitute sufficient proof of his
      authority.

     

    
      
        
        

      

      
        140

        
          

        

      

      
        
        

      

    

    (c) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by any Certificateholder shall bind every future Holder of such
      Certificate and the Holder of every Certificate issued upon the registration
      of
      transfer thereof or in exchange therefor or in lieu thereof, in respect of
      anything done, omitted or suffered to be done by the Trustee or the Trust in
      reliance thereon, whether or not notation of such action is made upon such
      Certificate.

     

    SECTION
      12.12. Successors
      and Assigns.

     

    The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto.

     

    SECTION
      12.13. Derivatives
      Transactions.

     

    The
      Trust
      and the Securities Administrator are authorized, at the direction and the
      expense of the Holders of a majority of the Voting Rights allocated to the
      Class
      of Subordinate Certificates outstanding having the highest numerical designation
      (or, if no Subordinate Certificates are outstanding, a majority of the Voting
      Rights allocated to the Senior Certificates other than the Class A-R
      Certificates), to enter into such derivative transactions for the benefit of
      any
      Certificateholders as may be deemed desirable by such Holders, so long as (i)
      as
      evidenced by one or more Opinions of Counsel addressed to the Securities
      Administrator (at the expense of such Holders), the execution and delivery
      of
      such derivative transaction is permitted under this Agreement and the inclusion
      of such derivative in the Trust will not be inconsistent with the ERISA
      provisions contained herein or cause the Certificates (other than the
      ERISA-Restricted Certificates) to fail to qualify for the Underwriter’s
      Exemption, (ii) a REMIC Opinion (at the expense of such Holders) is delivered
      to
      the Securities Administrator, (iii) an Opinion of Counsel addressed to the
      Securities Administrator (at the expense of such Holders) that the execution
      and
      delivery of such derivative transaction and documentation as presented to the
      Securities Administrator is permitted under this Agreement, and (iv) the Rating
      Agency shall have confirmed in writing that the inclusion of such derivative
      would not result in a downgrade of its then rating of any Class of
      Certificates.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        141

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
      by their respective officers thereunto duly authorized, all as of the day and
      year first above written.

     

    GREENWICH
      CAPITAL ACCEPTANCE, INC.,

     

    as
      Depositor

     

    By:
      /s/
      Ara
      Balabanian                             

    Name:
      Ara Balabanian

    Title:
      Vice President

     

    THORNBURG
      MORTGAGE HOME LOANS, INC., as
      Seller

     

    By:
      /s/
      Deborah J.
      Burns                         

    Name:
      Deborah J. Burns

    Title:
      Senior Vice President

     

    WELLS
      FARGO BANK, N.A., 

    as
      Master Servicer

    

    By:
      /s/
      Carla
      Walker                                 

    Name:
      Carla Walker

    Title:
      Vice President

     

    WELLS
      FARGO BANK, N.A., 

    as
      Securities Administrator

     

    By:
      /s/
      Carla
      Walker                                  

    Name:
      Carla Walker

    Title:
      Vice President

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    LASALLE
      BANK NATIONAL ASSOCIATION, as Trustee and Custodian

     

    By:
      /s/
      Susan
      Feld                                    

    Name:
      Susan Feld

    Title:
      Vice President

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
              STATE
                OF CONNECTICUT

            	
              )

            

    

    
      	 	
              )
                ss.:

            

    

    
      	
              COUNTY
                OF FAIRFIELD

            	
              )

            

    

     

    On
      the
      3rd
      day of
      March 2008, before me, a notary public in and for said State, personally
      appeared Ara
      Balabanian
      known to
      me to be a Vice President of Greenwich Capital Acceptance, Inc., a Delaware
      corporation that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of said corporation, and acknowledged to me
      that such corporation executed the within instrument.

     

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

     

    /s/
      Kimberly J.
      Donnelly             

    Notary
      Public

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF NEW MEXICO

            	
              )

            

    

    
      	 	
              )
                ss.:

            

    

    
      	
              COUNTY
                OF SANTA FE

            	
              )

            

    

     

    On
      the
      3rd day
      of
      March 2008, before me, a notary public in and for said State, personally
      appeared Deborah J. Burns known to me to be a Senior Vice President of Thornburg
      Mortgage Home Loans, Inc., a Delaware corporation that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      said corporation, and acknowledged to me that such corporation executed the
      within instrument.

     

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

     

    /s/
      Jane C.
      Yates                           

    Notary
      Public

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	
                STATE
                  OF MARYLAND

              	
                )

              

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  OF ARUNDEL

              	
                )

              

      

    

     

    On
      the
      3rd day of March 2008, before me, a notary public in and for said State,
      personally appeared Carla Walker known to me to be a Vice President of Wells
      Fargo Bank, N.A. 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.

     

    /s/
      Jennifer
      Richardson              

    Notary
      Public

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              STATE
                OF ILLINOIS

            	
              )

            

    

    
      	 	
              )
                ss.:

            

    

    
      	
              COUNTY
                OF COOK

            	
              )

            

    

     

    On
      the
      3rd
      day of
      March 2008, before me, a notary public in and for said State, personally
      appeared Susan Feld known to me to be Vice President of LaSalle 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
      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.

     

    /s/
      Diane O’Neal

    Notary
      Public

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

    

    MORTGAGE
      LOAN SCHEDULE

    

    [To
      be
      retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan

    Schedule”
      at the Washington DC offices of McKee Nelson LLP]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      A-1

     

    FORM
      OF SENIOR CERTIFICATE (OTHER THAN SENIOR INTEREST-ONLY
      CERTIFICATES)

     

    CLASS
      [1][2][3][4][A]-[ ] CERTIFICATE

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE SECURITIES ADMINISTRATOR
      OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
      CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    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 REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
      NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
      TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
      SUCH
      REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
      REGISTRATION. THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF IS DEEMED
      TO HAVE REPRESENTED AND WARRANTED THAT IT ACQUIRED SUCH CERTIFICATE UNDER AN
      EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.
      [Applicable only to the Class 1A-2, Class 2A-2, Class 3A-2 and Class 4A-2
      Certificates]

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF, AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO SECTION 406
      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”) OR BY
      ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING, UNLESS IT REPRESENTS
      AND WARRANTS, IF SUCH CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING
      UNDERWRITING, THAT THE ACQUISITION AND HOLDING OF SUCH CERTIFICATE, THROUGHOUT
      THE PERIOD THAT IT HOLDS SUCH CERTIFICATE, WILL NOT RESULT IN A NON-EXEMPT
      PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
      WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
      PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
      PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA AND SECTION 4975(d)(20)
      OF
      THE CODE OR SOME OTHER APPLICABLE ADMINISTRATIVE OR STATUTORY EXEMPTION. EACH
      INVESTOR IN THIS CERTIFICATE WILL BE DEEMED TO REPRESENT THAT IT IS IN
      COMPLIANCE WITH THE FOREGOING AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT
      AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER SUCH
      CERTIFICATE IN VIOLATION OF THE FOREGOING. [Applicable
      only to any Certificate rated at least “BBB-” upon
      acquisition]

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

       

    

    UNTIL
      THIS CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
      LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
      SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
      OF
      ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) AN OPINION OF
      COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, WHICH OPINION OF COUNSEL
      SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE SECURITIES ADMINISTRATOR
      OR
      THE TRUST, ADDRESSED TO THE SECURITIES ADMINISTRATOR, TO THE EFFECT THAT THE
      PURCHASE AND HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN A NON-EXEMPT
      PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
      AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER, ANY SERVICER, THE
      SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
      THOSE
      EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY. A TRANSFEREE
      ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
      REPRESENTATION IN THIS PARAGRAPH.
      [Applicable only to the Class 1A-2, Class 2A-2, Class 3A-2 and Class 4A-2
      Certificates]

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

       

    

    
      	
              Certificate
                No.:

            	
              [    
                ]

            
	 	 
	
              Cut-Off
                Date:

            	
              February
                1, 2008

            
	 	 
	
              First
                Distribution Date:

            	
              March
                25, 2008

            
	 	 
	
              Initial
                Certificate Principal

            	 
	
              Balance
                of this Certificate

            	 
	
              (“Denomination”):

            	
              $[     ]

            
	 	 
	
              Original
                Class Certificate

            	 
	
              Principal
                Balance of this

            	 
	
              Class:

            	
              $[    
                ]

            
	 	 
	
              Percentage
                Interest:

            	
              [    
                ]%

            
	 	 
	
              Pass-Through
                Rate:

            	
              Weighted
                Average

            
	 	 
	
              CUSIP:

            	
              88522U
                __
                _

            
	 	 
	
              Class:

            	
              [1][2][3][4]A-[     ]

            
	 	 
	
              Assumed
                Final Distribution Date:

            	
              April
                25, 2038

            

    

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

       

    

    Thornburg
      Mortgage Securities Trust 2008-1,

    Mortgage
      Loan Pass-Through Certificates, 

    Series
      2008-1

    Class
      [1][2][3][4]A-[ ]

     

    evidencing
      the Percentage Interest in the distributions allocable to the Certificates
      of
      the above-referenced Class with respect to the Trust consisting primarily of
      adjustable rate and hybrid, first lien mortgage loans (the “Mortgage Loans”)
      purchased from others by

     

    GREENWICH
      CAPITAL ACCEPTANCE, INC., as Depositor.

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Principal Balance of this Certificate at any time
      may be less than the Initial Certificate Principal Balance set forth on the
      face
      hereof, as described herein. This Certificate does not evidence an obligation
      of, or an interest in, and is not guaranteed by the Depositor, the Seller,
      the
      Master Servicer, the Securities Administrator or the Trustee referred to below
      or any of their respective affiliates.

     

    This
      certifies that CEDE & CO. is the registered owner of the Percentage Interest
      evidenced by this Certificate (obtained by dividing the Denomination of this
      Certificate by the Original Class Certificate Principal Balance) in certain
      monthly distributions with respect to a Trust consisting primarily of the
      Mortgage Loans deposited by Greenwich Capital Acceptance, Inc. (the
“Depositor”). The Trust was created pursuant to the pooling and servicing
      agreement dated as of February 1, 2008 (the “Agreement”) by and among the
      Depositor, Thornburg Mortgage Home Loans, Inc. (“TMHL”), as seller (the
“Seller”), Wells Fargo Bank, N.A., as master servicer (the “Master Servicer”)
      and securities administrator (the “Securities Administrator”) and the LaSalle
      Bank National Association, as trustee (the “Trustee”) and custodian (the
“Custodian”). 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. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement.

     

    No
      transfer of this Certificate shall be made unless such disposition is exempt
      from the registration requirements of the Securities Act of 1933, as amended
      (the “1933 Act”), and any applicable state securities laws or is made in
      accordance with the 1933 Act and such laws. In the event of any transfer, the
      transferee will be deemed to represent and warrant that that it acquired such
      certificate under an exemption to registration under the 1933 Act. [Applicable
      only to the Non-Offered Certificates]

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Securities Administrator.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:
      March ___, 2008

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2008-1

     

    
      	 	
              By:
                

            	
              WELLS
                FARGO BANK, N.A., 
                not
                  in its individual capacity,

                but
                  solely as Securities
                  Administrator

              

            

    

    
       

    

     

    By
      ___________________________________________

     

     

    This
      is
      one of the Certificates

    referenced
      in the within-mentioned Agreement

     

    

    By
      ________________________________________

    Authorized
      Signatory of

    Wells
      Fargo Bank, N.A.,

    as
      Securities Administrator

     

    
      
        
        

      

      
        A-1-5

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-2

     

    FORM
      OF SENIOR INTEREST-ONLY CERTIFICATES

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE SECURITIES ADMINISTRATOR
      OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
      CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    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 REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
      NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
      TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
      SUCH
      REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
      REGISTRATION. THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF IS DEEMED
      TO HAVE REPRESENTED AND WARRANTED THAT IT ACQUIRED SUCH CERTIFICATE UNDER AN
      EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF, AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO SECTION 406
      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”) OR BY
      ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING, UNLESS IT REPRESENTS
      AND WARRANTS, IF SUCH CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING
      UNDERWRITING, THAT THE ACQUISITION AND HOLDING OF SUCH CERTIFICATE, THROUGHOUT
      THE PERIOD THAT IT HOLDS SUCH CERTIFICATE, WILL NOT RESULT IN A NON-EXEMPT
      PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
      WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
      PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
      PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA AND SECTION 4975(d)(20)
      OF
      THE CODE OR SOME OTHER APPLICABLE ADMINISTRATIVE OR STATUTORY EXEMPTION. EACH
      INVESTOR IN THIS CERTIFICATE WILL BE DEEMED TO REPRESENT THAT IT IS IN
      COMPLIANCE WITH THE FOREGOING AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT
      AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER SUCH
      CERTIFICATE IN VIOLATION OF THE FOREGOING.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

       

    

    UNTIL
      THIS CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
      LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
      SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
      OF
      ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) AN OPINION OF
      COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, WHICH OPINION OF COUNSEL
      SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE SECURITIES ADMINISTRATOR
      OR
      THE TRUST, ADDRESSED TO THE SECURITIES ADMINISTRATOR, TO THE EFFECT THAT THE
      PURCHASE AND HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN A NON-EXEMPT
      PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
      AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER, ANY SERVICER, THE
      SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
      THOSE
      EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY. A TRANSFEREE
      ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
      REPRESENTATION IN THIS PARAGRAPH.

     

    THIS
      CERTIFICATE IS AN INTEREST-ONLY CERTIFICATE AND, ACCORDINGLY, IS NOT ENTITLED
      TO
      ANY DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

    
       

      
        
          
          

        

        
          A-2-2

          
            

          

        

        
          
          

        

         

      

    

    
      	
              Certificate
                No.:

            	
              [     ]

            
	 	 
	
              Cut-Off
                Date:

            	
              February
                1, 2008

            
	 	 
	
              First
                Distribution Date:

            	
              March
                25, 2008

            
	 	 
	
              Initial
                Certificate Notional Amount

            	 
	
              of
                this Certificate

            	 
	
              (“Denomination”):

            	
              [     ]

            
	 	 
	
              Original
                Class Certificate

            	 
	
              Notional
                Amount of this

            	 
	
              Class:

            	
              [     ]

            
	 	 
	
              Percentage
                Interest:

            	
              100%

            
	 	 
	
              Pass-Through
                Rate:

            	
              [     ]

            
	 	 
	
              CUSIP:

            	
              88522U
                __
                _

            
	 	 
	
              Class:

            	
              [     ]-AX[     ]

            
	 	 
	
              Final
                Scheduled Distribution Date:

            	
              [     ]

            

    

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

       

    

    Thornburg
      Mortgage Securities Trust 2008-1,

    Mortgage
      Loan Pass-Through Certificates, 

    Series
      2008-1

    Class
      [1][2][3][4]-AX[ ]

     

    evidencing
      the Percentage Interest in the distributions allocable to the Certificates
      of
      the above-referenced Class with respect to the Trust consisting primarily of
      adjustable rate and hybrid, first lien mortgage loans (the “Mortgage Loans”)
      purchased from others by

     

    GREENWICH
      CAPITAL ACCEPTANCE, INC., as Depositor.

     

    Interest
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Notional Amount of this Certificate at any time
      may
      be less than the Initial Certificate Notional Amount set forth on the face
      hereof, as described herein. This Certificate does not evidence an obligation
      of, or an interest in, and is not guaranteed by the Depositor, the Seller,
      the
      Master Servicer, the Securities Administrator or the Trustee referred to below
      or any of their respective affiliates.

     

    This
      certifies that CEDE & CO. is the registered owner of the Percentage Interest
      evidenced by this Certificate (obtained by dividing the Denomination of this
      Certificate by the Original Class Certificate Notional Amount) in certain
      monthly distributions with respect to a Trust consisting primarily of the
      Mortgage Loans deposited by Greenwich Capital Acceptance, Inc. (the
“Depositor”). The Trust was created pursuant to the pooling and servicing
      agreement dated as of February 1, 2008 (the “Agreement”) by and among the
      Depositor, Thornburg Mortgage Home Loans, Inc. (“TMHL”), as seller (the
“Seller”), Wells Fargo Bank, N.A., as master servicer (the “Master Servicer”)
      and securities administrator (the “Securities Administrator”) and the LaSalle
      Bank National Association, as trustee (the “Trustee”) and custodian (the
“Custodian”). 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. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement.

     

    No
      transfer of this Certificate shall be made unless such disposition is exempt
      from the registration requirements of the Securities Act of 1933, as amended
      (the “1933 Act”), and any applicable state securities laws or is made in
      accordance with the 1933 Act and such laws. In the event of any transfer, the
      transferee will be deemed to represent and warrant that that it acquired such
      certificate under an exemption to registration under the 1933 Act.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Securities Administrator.

    

    
      
        
        

      

      
        A-2-4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    [Reserved]

     

    

    

     

    

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    FORM
      OF CLASS A-R CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL 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”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFER AFFIDAVIT IN
      ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
      LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
      SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
      OF
      ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) IF SUCH CERTIFICATE
      HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT
      THE
      PURCHASER IS AN INSURANCE COMPANY PURCHASING THIS CERTIFICATE WITH FUNDS
      CONTAINED IN AN “INSURANCE COMPANY GENERAL ACCOUNT” AS DEFINED IN SECTION V(e)
      OF PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60 AND THAT THE PURCHASE
      AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER SECTIONS I AND III OF PTCE
      95-60 OR (C) AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR,
      WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE
      SECURITIES ADMINISTRATOR OR THE TRUST, ADDRESSED TO THE SECURITIES
      ADMINISTRATOR, TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
      WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
      ERISA OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER
      SERVICER, ANY SERVICER, THE SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY
      OBLIGATION IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO
      ANY
      LIABILITY. A TRANSFEREE ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED
      TO
      HAVE MADE THE REPRESENTATION IN THIS PARAGRAPH.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    
      	
              Certificate
                No.:

            	
              1

            
	 	 
	
              Cut-Off
                Date:

            	
              February
                1, 2008

            
	 	 
	
              First
                Distribution Date:

            	
              March
                25, 2008

            
	 	 
	
              Initial
                Certificate Principal 

            	 
	
              Balance
                of this Certificate:

            	
              $100

            
	 	 
	
              Original
                Class Certificate 

            	
            
	
              Principal
                Balance of this 

            	 
	
              Class:

            	
              $100

            
	 	 
	
              Percentage
                Interest:

            	
              100%

            
	 	 
	
              Pass-Through
                Rate:

            	
              Weighted
                Average

            
	 	 
	
              CUSIP:

            	
              88522U
                __
                _

            
	 	 
	
              Class:

            	
              A-R

            
	 	 
	
              Assumed
                Final Distribution Date:

            	
              April
                25, 2038

            

    

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    Thornburg
      Mortgage Securities Trust 2008-1

    Mortgage
      Loan Pass-Through Certificates, 

    Series
      2008-1

    Class
      A-R

     

    evidencing
      the Percentage Interest in the distributions allocable to the Certificates
      of
      the above-referenced Class with respect to the Trust consisting primarily of
      adjustable rate and hybrid, first lien mortgage loans (the “Mortgage Loans”)
      purchased from others by

     

    GREENWICH
      CAPITAL ACCEPTANCE, INC., as Depositor.

     

    This
      Certificate does not evidence an obligation of, or an interest in, and is not
      guaranteed by the Depositor, the Seller, the Master Servicer, the Securities
      Administrator or the Trustee referred to below or any of their respective
      affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that _________________________ is the registered owner of the
      Percentage Interest evidenced by this Certificate specified above in the
      interest represented by all Certificates of the Class to which this Certificate
      belongs in a Trust consisting primarily of the Mortgage Loans deposited by
      Greenwich Capital Acceptance, Inc. (the “Depositor”). The Trust was created
      pursuant to the pooling and servicing agreement dated as of February 1, 2008
      (the “Agreement”) by and among the Depositor, Thornburg Mortgage Home Loans,
      Inc. (“TMHL”), as seller (the “Seller”), Wells Fargo Bank, N.A., as master
      servicer (the “Master Servicer”) and securities administrator (the “Securities
      Administrator”) and LaSalle Bank National Association, as trustee (the
“Trustee”) and Custodian (the “Custodian”). 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. To the extent not defined herein,
      the
      capitalized terms used herein have the meanings assigned in the
      Agreement.

     

    Any
      distribution of the proceeds of any remaining assets of the Trust will be made
      only upon presentment and surrender of this Certificate at the Corporate Trust
      Office or the office or agency maintained by the Securities
      Administrator.

     

    Each
      Holder of this Certificate will be deemed to have agreed to be bound by the
      restrictions of the Agreement, including but not limited to the restrictions
      that (i) each person holding or acquiring any Ownership Interest in this
      Certificate must be a Permitted Transferee, (ii) no Ownership Interest in this
      Certificate may be transferred without delivery to the Securities Administrator
      of (a) a transfer affidavit of the proposed transferee and (b) a transfer
      certificate of the transferor, each of such documents to be in the form
      described in the Agreement, (iii) each person holding or acquiring any Ownership
      Interest in this Certificate must agree to require a transfer affidavit and
      to
      deliver a transfer certificate to the Securities Administrator as required
      pursuant to the Agreement, (iv) each person holding or acquiring an Ownership
      Interest in this Certificate must agree not to transfer an Ownership Interest
      in
      this Certificate if it has actual knowledge that the proposed transferee is
      not
      a Permitted Transferee and (v) any attempted or purported transfer of any
      Ownership Interest in this Certificate in violation of such restrictions will
      be
      absolutely null and void and will vest no rights in the purported transferee.
      The Securities Administrator will provide the Internal Revenue Service and
      any
      pertinent persons with the information needed to compute the tax imposed under
      the applicable tax laws on transfers of residual interests to disqualified
      organizations, if any person other than a Permitted Transferee acquires an
      Ownership Interest on a Class A-R Certificate in violation of the restrictions
      mentioned above.

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

       

    

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized officer of the
      Securities Administrator.

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:
      March ___, 2008

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2008-1

     

    
      	 	
              By:
                

            	
              WELLS
                FARGO BANK, N.A., 
                not
                  in its individual capacity,

                but
                  solely as Securities
                  Administrator

              

            

    

    
       

       

    

    By
      _____________________________________________

     

    

    

    This
      is
      the A-R Certificate

    referenced
      in the within-mentioned Agreement

     

    

    By
      ________________________________________

    Authorized
      Signatory of

    Wells
      Fargo Bank, N.A.,

    as
      Securities Administrator

    

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

     

    FORM
      OF SUBORDINATE CERTIFICATE

     

    CLASS
      B-[     ]
      CERTIFICATE

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE SECURITIES ADMINISTRATOR
      OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
      CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    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 REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NEITHER THIS CERTIFICATE
      NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
      TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
      SUCH
      REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
      REGISTRATION.

     

    THE
      HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE
      REPRESENTED AND WARRANTED THAT IT ACQUIRED SUCH CERTIFICATE (I)(A) PURSUANT
      TO A
      REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT
      OR
      (B) AS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE 1933
      ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
      INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE
      IN
      RELIANCE ON RULE 144A [Applicable
      only to the Class B-4, Class B-5 and Class B-6
      Certificates].

    

    THIS
      CERTIFICATE IS SUBORDINATE IN RIGHT AND PAYMENT AS DESCRIBED IN THE AGREEMENT
      REFERRED TO HEREIN.

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF, AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO SECTION 406
      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”) OR BY
      ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING, UNLESS IT REPRESENTS
      AND WARRANTS, IF SUCH CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING
      UNDERWRITING, THAT THE ACQUISITION AND HOLDING OF SUCH CERTIFICATE, THROUGHOUT
      THE PERIOD THAT IT HOLDS SUCH CERTIFICATE, WILL NOT RESULT IN A NON-EXEMPT
      PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
      WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14,
      PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
      PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA AND SECTION 4975(d)(20)
      OF
      THE CODE OR SOME OTHER APPLICABLE ADMINISTRATIVE OR STATUTORY EXEMPTION. EACH
      INVESTOR IN THIS CERTIFICATE WILL BE DEEMED TO REPRESENT THAT IT IS IN
      COMPLIANCE WITH THE FOREGOING AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT
      AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER SUCH
      CERTIFICATE IN VIOLATION OF THE FOREGOING. [Applicable
      only to Class B-1, Class B-2 and B-3 Certificates]

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

       

    

    UNTIL
      THIS CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
      LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
      SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
      OF
      ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) AN OPINION OF
      COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, WHICH OPINION OF COUNSEL
      SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE SECURITIES ADMINISTRATOR
      OR
      THE TRUST, ADDRESSED TO THE SECURITIES ADMINISTRATOR, TO THE EFFECT THAT THE
      PURCHASE AND HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN A NON-EXEMPT
      PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
      AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER SERVICER, ANY SERVICER, THE
      SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO
      THOSE
      EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO ANY LIABILITY. A TRANSFEREE
      ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
      REPRESENTATION IN THIS PARAGRAPH. [Applicable
      only to Class B-1, Class B-2, and Class B-3
      Certificates]

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

       

    

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER (A) A REPRESENTATION
      LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
      SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION 4975 OF THE CODE OR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING PLAN ASSETS
      OF
      ANY SUCH PLAN OR ARRANGEMENT TO EFFECT THE TRANSFER, OR (B) IF SUCH CERTIFICATE
      HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT
      THE
      PURCHASER IS AN INSURANCE COMPANY PURCHASING THIS CERTIFICATE WITH FUNDS
      CONTAINED IN AN “INSURANCE COMPANY GENERAL ACCOUNT” AS DEFINED IN SECTION V(e)
      OF PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60 AND THAT THE PURCHASE
      AND HOLDING OF THIS CERTIFICATE ARE COVERED UNDER SECTIONS I AND III OF PTCE
      95-60 OR (C) AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR,
      WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF ANY OF THE TRUSTEE, THE
      SECURITIES ADMINISTRATOR OR THE TRUST, ADDRESSED TO THE SECURITIES
      ADMINISTRATOR, TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
      WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
      ERISA OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE MASTER
      SERVICER, ANY SERVICER, THE SECURITIES ADMINISTRATOR OR THE DEPOSITOR TO ANY
      OBLIGATION IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN THIS AGREEMENT OR TO
      ANY
      LIABILITY. A TRANSFEREE ACQUIRING A BOOK-ENTRY CERTIFICATE SHALL BE DEEMED
      TO
      HAVE MADE THE REPRESENTATION IN THIS PARAGRAPH. THIS CERTIFICATE IS SUBORDINATE
      IN RIGHT AND PAYMENT AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.
      [Applicable
      only to Class B-4, Class B-5 and Class B-6
      Certificates]

     

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

     

    
      	
              Certificate
                No.:

            	
              [    
                ]

            
	 	 
	
              Cut-Off
                Date:

            	
              February
                1, 2008

            
	 	 
	
              First
                Distribution Date:

            	
              March
                25, 2008

            
	 	 
	
              Initial
                Certificate Principal

            	 
	
              Balance
                of this Certificate

            	 
	
              (“Denomination”):

            	
              $[     ]

            
	 	 
	
              Original
                Class Certificate

            	 
	
              Principal
                Balance of this

            	 
	
              Class:

            	
              $[     ]

            
	 	 
	
              Percentage
                Interest:

            	
              [     ]%

            
	 	 
	
              Pass-Through
                Rate:

            	
              Weighted
                Average

            
	 	 
	
              CUSIP:

            	
              88522U
                __
                _

            
	 	 
	
              Class:

            	
              B-[     ]

            
	 	 
	
              Assumed
                Final Distribution Date:

            	
              April
                25, 2038

            

    

     

    
      
        
        

      

      
        D-4

        
          

        

      

      
        
        

      

    

    Thornburg
      Mortgage Securities Trust 2008-1,

    Mortgage
      Loan Pass-Through Certificates,

    Series
      2008-1

    Class
      B-[
      ]

     

    evidencing
      the Percentage Interest in the distributions allocable to the Certificates
      of
      the above-referenced Class with respect to the Trust consisting primarily of
      adjustable rate and hybrid, first lien mortgage loans (the “Mortgage Loans”)
      purchased from others by 

     

    GREENWICH
      CAPITAL ACCEPTANCE INC., as Depositor.

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Principal Balance of this Certificate at any time
      may be less than the Initial Certificate Principal Balance set forth on the
      face
      hereof, as described herein. This Certificate does not evidence an obligation
      of, or an interest in, and is not guaranteed by the Depositor, the Seller,
      the
      Master Servicer, the Securities Administrator or the Trustee referred to below
      or any of their respective affiliates.

     

    This
      certifies that CEDE & CO. is the registered owner of the Percentage Interest
      evidenced by this Certificate (obtained by dividing the Denomination of this
      Certificate by the Original Class Certificate Principal Balance) in certain
      monthly distributions with respect to a Trust consisting primarily of the
      Mortgage Loans deposited by Greenwich Capital Acceptance, Inc. (the
“Depositor”). The Trust was created pursuant to the pooling and servicing
      agreement dated as of February 1, 2008 (the “Agreement”) by and among the
      Depositor, Thornburg Mortgage Home Loans, Inc. (“TMHL”), as seller (the
“Seller”), Wells Fargo Bank, N.A., as master servicer (the “Master Servicer”)
      and securities administrator (the “Securities Administrator”) and LaSalle Bank
      National Association, as trustee (the “Trustee”) and custodian (the
“Custodian”). 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. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement.

     

    No
      transfer of this Certificate shall be made unless such disposition is exempt
      from the registration requirements of the Securities Act of 1933, as amended
      (the “1933 Act”), and any applicable state securities laws or is made in
      accordance with the 1933 Act and such laws. In the event of any transfer, the
      transferee will be deemed to represent and warrant that that it acquired such
      certificate under an exemption to registration under the 1933 Act. [Applicable
      only to the Class B-1, Class B-2 and Class B-3
      Certificates]

     

    No
      transfer of this Certificate shall be made unless such disposition is exempt
      from the registration requirements of the Securities Act of 1933, as amended
      (the “1933 Act”), and any applicable state securities laws or is made in
      accordance with the 1933 Act and such laws. In the event of any transfer, the
      transferee will be deemed to represent and warrant that that it acquired such
      certificate as a “Qualified Institutional Buyer” as defined in Rule 144A under
      the 1933 Act that purchases for its own account or for the account of a
      Qualified Institutional Buyer to whom notice is given that the transfer is
      being
      made in reliance on Rule 144A. [Applicable
      only to the Class B-4, Class B-5 and Class B-6
      Certificates]

     

    
      
        
        

      

      
        D-5

        
          

        

      

      
        
        

      

       

    

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Securities Administrator.

     

    
      
        
        

      

      
        D-6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:
      March ___, 2008

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2008-1

     

    
      	 	
              By:
                

            	
              WELLS
                FARGO BANK, N.A., 
                not
                  in its individual capacity,

                but
                  solely as Securities
                  Administrator

              

            

    

    
       

    

    

    By
      ______________________________________________

    

    

    This
      is
      one of the Certificates

    referenced
      in the within-mentioned Agreement

     

    

    By
      ________________________________________

    Authorized
      Signatory of

    Wells
      Fargo Bank, N.A.,

    as
      Securities Administrator

     

    
      
        
        

      

      
        D-7

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    FORM
      OF REVERSE OF THE CERTIFICATES

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2008-1

    Mortgage
      Loan Pass-Through Certificates, Series 2008-1

    Reverse
      Certificate

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Thornburg Mortgage Securities Trust 2008-1, Mortgage Loan Pass-Through
      Certificates, Series 2008-1 (herein collectively called the “Certificates”), and
      representing a beneficial ownership interest in the Trust governed by the
      Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th
      day of
      each month, or if the 25th
      day is
      not a Business Day, then on the next succeeding Business Day (the “Distribution
      Date”), commencing on the first Distribution Date specified on the face hereof,
      to the Person in whose name this Certificate is registered at the close of
      business on the applicable 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 Holders of Certificates of the Class to which this Certificate
      belongs on such Distribution Date pursuant to the Agreement.

     

    Distributions
      on this Certificate shall be made, (i) in the case of a Physical Certificate,
      by
      check or money order mailed to the address of the person entitled thereto as
      it
      appears on the Certificate Register or, upon the request of a Certificateholder,
      by wire transfer as set forth in the Agreement and (ii) in the case of a
      Book-Entry Certificate, to the Depository, which shall credit the amounts of
      such distributions to the accounts of its Depository Participants in accordance
      with its normal procedures. The final distribution on each Certificate will
      be
      made in like manner, but only upon presentment and surrender of such Certificate
      at the office or agency of the Securities Administrator specified in the notice
      to Certificateholders of such final distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time, by the
      Depositor, the Seller, the Master Servicer, the Securities Administrator, the
      Trustee and Holders of the requisite percentage of the Percentage Interests
      of
      each Class of Certificates affected by such amendment, as specified in the
      Agreement. 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 therefor 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.

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

       

    

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Securities Administrator upon surrender of this Certificate for registration
      of transfer at the office or agency maintained by the Securities Administrator
      accompanied by a written instrument of transfer in form satisfactory to the
      Securities Administrator and the Certificate Registrar 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 and evidencing the same aggregate Percentage Interest in the
      Trust
      will be issued to the designated transferee or transferees.

     

    Subject
      to the terms of the Agreement, each Class of Book-Entry Certificates will be
      registered as being held by the Depository or its nominee and beneficial
      interests will be held by Certificate Owners through the book-entry facilities
      of the Depository or its nominee in minimum denominations of $25,000 and
      integral dollar multiples of $1 in excess thereof, in the case of the Class
      1A-1, Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1,
      Class 4A-2, Class B-1, Class B-2 and Class B-3 Certificates (provided,
      that,
      such Certificates must be purchased in minimum total investments of at least
      $100,000), $100,000 minimum notional amounts and increments of $1,000 in excess
      thereof, in the case of the Class 1-AX, Class 2-AX, Class 3-AX and Class 4-AX
      Certificates and $100,000 and integral dollar multiples of $1 in excess thereof,
      in the case of the Class B-4, Class B-5 and Class B-6 Certificates, except
      that
      one Certificate of each such Class of Certificates may be in a different
      denomination so that the sum of the denominations of all outstanding
      Certificates of such Class shall equal the Class Certificate Principal Balance
      or Class Certificate Notional Balance of such Class on the Closing Date.
      [Applicable
      to all Classes of Certificates except the Class A-R]

     

    [Each
      of
      the Class A-R Certificates will be issued as a single Certificate and maintained
      in physical form, representing the entire Percentage Interest in that Class.]
      [Applicable
      to the Class A-R Certificate.]

     

    [The
      Class A-R Certificate is issuable only in a Percentage Interest of 100%.]
      [Applicable
      to Class A-R Certificates only.]
      

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations 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 and
      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,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge payable in connection
      therewith.

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

       

    

    The
      Depositor, the Seller, the Master Servicer, the Securities Administrator and
      the
      Trustee and any agent of the Depositor or the Trustee may treat the Person
      in
      whose name this Certificate is registered as the owner hereof for all purposes,
      and neither the Depositor, the Trustee nor any such agent shall be affected
      by
      any notice to the contrary.

     

    On
      any
      Distribution Date on which the aggregate of the Stated Principal Balances of
      the
      Mortgage Loans on such date is equal to or less than 20% of the aggregate
      Cut-Off Date Principal Balance, Thornburg Mortgage, Inc. will have the option
      to
      call the Certificates for a purchase price equal to (i) for all Certificates
      (other than the Interest-Only Certificates and the Class A-R Certificates)
      the
      sum of (1) the aggregate Class Certificate Principal Balance and (2) the accrued
      interest thereon at the related Pass-Through Rates, less amounts of interest
      and
      principal otherwise being paid to such Holders on such Distribution Date, (ii)
      for the Interest-Only Certificates the present value as of the date of such
      purchase of the remaining payments to be based on each of the Interest-Only
      Certificates (such present value to be based upon a discount rate that will
      approximate the expected Yield to Maturity of the Interest-Only Certificates
      and
      (iii) for the Class A-R Certificate, $1.00.

     

    On
      any
      date on which the aggregate of the Stated Principal Balances of the Mortgage
      Loans on such date is equal to or less than 10% of the Cut-Off Date Aggregate
      Principal Balance, Thornburg Mortgage Home Loans, Inc., in its capacity as
      a
      Servicer (hereinafter “TMHL”), may purchase, on the related Distribution Date,
      all of the outstanding Mortgage Loans and REO Properties at a price equal to
      the
      Termination Price. In the event that TMHL does not exercise its right of
      optional termination, on any date on which the aggregate of the Stated Principal
      Balances of the Mortgage Loans on such date is equal to or less than 5% of
      the
      Cut-Off Date Aggregate Principal Balance, Wells Fargo Bank, N.A., in its
      capacity as Master Servicer, may purchase, on the related Distribution Date,
      all
      of the outstanding Mortgage Loans and REO Properties at a price equal to the
      Termination Price. In the event that neither TMHL nor the Master Servicer
      exercises any right of optional termination, the obligations and
      responsibilities created by the Agreement will terminate upon notice to the
      Securities Administrator upon the earliest of (i) the Distribution Date on
      which
      the Class Certificate Principal Balance of each Class of Certificates has been
      reduced to zero, (ii) the final payment or other liquidation of the last
      Mortgage Loan in any Loan Group and (iii) the Latest Possible Maturity
      Date.

     

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

    __________________________________________________________________________________________________________________

     

    __________________________________________________________________________________________________________________

    (Please
      print or typewrite name and address including postal zip code of
      assignee)

     

    the
      Percentage Interest evidenced by the within Certificate and hereby authorizes
      the transfer of registration of such Percentage Interest to assignee on the
      Certificate Register of the Trust.

     

    I
      (We)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      denomination and Class, to the above named assignee and deliver such Certificate
      to the following address:
      _____________________________________________________________________________.

     

    Dated:
      _____________

     

                          
                                                  
  

    Signature
      by or on behalf of assignor

     

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

    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
      _________________________________________________________________________________,

     

    the
      assignee named above, or
      _________________________________________________________________________________________,

     

    as
      its
      agent. 

     

    
      
        
        

      

      
        E-5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    REQUEST
      FOR RELEASE 

     

                                   

    Date

     

    [Addressed
      to Trustee

    or,
      if
      applicable, custodian]

     

    In
      connection with the administration of the mortgages held by you as Trustee
      under
      a certain Pooling and Servicing Agreement dated as of February 1, 2008 among
      Greenwich Capital Acceptance, Inc., as Depositor, Thornburg Mortgage Home Loans,
      Inc., as Seller, Wells Fargo Bank, N.A., as Master Servicer and Securities
      Administrator and you, as Trustee and Custodian (the “Pooling and Servicing
      Agreement”), the undersigned [Master Servicer] [Servicer] hereby requests a
      release of the Mortgage File held by you as Trustee with respect to the
      following described Mortgage Loan for the reason indicated below.

     

    Mortgagor’s
      Name:

     

    Address:

     

    Loan
      No.:

     

    Reason
      for requesting file:

     

    1. Mortgage
      Loan paid in full. (The [Master Servicer] [Servicer] hereby certifies that
      all
      amounts received in connection with the loan have been or will be credited
      to
      the Collection Account or the Distribution Account (whichever is applicable)
      pursuant to the Pooling and Servicing Agreement.)

     

    2. The
      Mortgage Loan is being foreclosed.

     

    3. Mortgage
      Loan substituted. (The [Master Servicer] [Servicer] hereby certifies that a
      Qualified Substitute Mortgage Loan has been assigned and delivered to you along
      with the related Mortgage File pursuant to the Pooling and Servicing
      Agreement.)

     

    4. Mortgage
      Loan repurchased. (The [Master Servicer] [Servicer] hereby certifies that the
      Purchase Price has been credited to the Collection Account or the Distribution
      Account (whichever is applicable) pursuant to the Pooling and Servicing
      Agreement.)

     

    5. Other.
      (Describe)

     

    The
      undersigned acknowledges that the above Mortgage File will be held by the
      undersigned in accordance with the provisions of the Pooling and Servicing
      Agreement and will be returned to you within ten (10) days of our receipt of
      the
      Mortgage File, except if the Mortgage Loan has been paid in full, or repurchased
      or substituted for a Qualified Substitute Mortgage Loan (in which case the
      Mortgage File will be retained by us without obligation to return to
      you).

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

       

    

    Capitalized
      terms used herein shall have the meanings ascribed to them in the Pooling and
      Servicing Agreement.

     

    _____________________________________

    [Name
      of
      [Master Servicer] [Servicer]]

     

    By:__________________________________

    Name:

    Title:
      Servicing Officer

    

     

    
      
        
        

      

      
        F-2

        
          

        

      

      
        
        

      

    

    
       

    

    EXHIBIT
      G-1

     

    FORM
      OF RECEIPT OF MORTGAGE NOTES

     

    RECEIPT
      OF MORTGAGE NOTES

     

    Greenwich
      Capital Acceptance, Inc.

    600
      Steamboat Road

    Greenwich,
      Connecticut 06830

    

    
      	 	
              Re:
                

            	
              Thornburg
                Mortgage Securities Trust 2008-1, 

              Mortgage
                Loan Pass-Through Certificates, Series
                2008-1  

            

    

     

    Ladies
      and Gentlemen:

     

    Pursuant
      to Section 2.01 of the Pooling and Servicing Agreement, dated as of February
      1,
      2008, among Greenwich Capital Acceptance, Inc., as Depositor, Thornburg Mortgage
      Home Loans, Inc., as Seller, Wells Fargo Bank, N.A., as Master Servicer and
      Securities Administrator and LaSalle Bank National Association, as Trustee
      and
      Custodian, we hereby acknowledge the receipt of the original Mortgage Note
      with
      respect to each Mortgage Loan listed on Exhibit 1, with any exceptions thereto
      listed on Exhibit 2.

     

    

     

    LASALLE
      BANK NATIONAL 

    ASSOCIATION,
      as Trustee

     

    

    

    By:                                                                          

    Name:

    Title:

     

    

     

    Dated:
      

     

    
      
        
        

      

      
        G-1-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      1

     

    MORTGAGE
      LOAN SCHEDULE

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    
      
        
        

      

      
        G-1-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2

     

    EXCEPTION
      REPORT

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    
      
        
        

      

      
        G-1-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-2

     

    FORM
      OF INTERIM CERTIFICATION OF TRUSTEE

     

    INTERIM
      CERTIFICATION OF TRUSTEE

     

    [date]

     

    
      	
              Greenwich
                Capital Acceptance, Inc.

              600
                Steamboat Road

              Greenwich,
                Connecticut 06830

            	 
	 	 
	
              Thornburg
                Mortgage Home Loans, Inc.

              150
                Washington Avenue, Suite 302

              Santa
                Fe, New Mexico 87501

            	 
	 	 
	
              Wells
                Fargo Bank, N.A.

              9062
                Old Annapolis Road

              Columbia,
                Maryland 21045

            	 

    

     

    
      	Re:	
              Pooling
                and Servicing Agreement among Greenwich Capital Acceptance, Inc.,
                as
                Depositor, Thornburg Mortgage Home Loans, Inc., as Seller, Wells
                Fargo
                Bank, N.A., as Master Servicer and Securities Administrator and LaSalle
                Bank National Association, as Trustee and Custodian, Thornburg Mortgage
                Loan Pass-Through Certificates,
                Series 2008-1 

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Trustee,
      hereby certifies that, as to each Mortgage Loan listed in the Mortgage Loan
      Schedule (other than any Mortgage Loan paid in full or listed on the attached
      schedule) it has received:

     

    
      	 	
              (i)

            	
              all
                documents required to be delivered to the Trustee pursuant to
                Section 2.01 of the Pooling and Servicing Agreement are in its
                possession;

            

    

     

    
      	 	
              (ii)

            	
              such
                documents have been reviewed by the Trustee and have not been mutilated,
                damaged or torn and relate to such Mortgage Loan;
                and

            

    

     

    
      	 	
              (iii)

            	
              based
                on the Trustee’s examination and only as to the foregoing, the information
                set forth in the Mortgage Loan Schedule that corresponds to items
                (i),
                (ii), (iii), (xiii), (xiv) and (xviii) of the Mortgage Loan Schedule
                accurately reflects information set forth in the Mortgage
                File.

            

    

     

    Based
      on
      its review and examination and only as to the foregoing documents, such
      documents appear regular on their face and related to such Mortgage
      Loan.

     

    
      
        
        

      

      
        G-2-1

        
          

        

      

      
        
        

      

       

    

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review specifically required in the Pooling and
      Servicing Agreement. The Trustee makes no representations as to: (i) the
      validity, legality, sufficiency, enforceability or genuineness of any of the
      documents contained in each Mortgage File of any of the Mortgage Loans
      identified on the Mortgage Loan Schedule, or (ii) the collectibility,
      insurability, effectiveness or suitability of any such Mortgage
      Loan.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Pooling and Servicing Agreement.

     

    

     

    LASALLE
      BANK NATIONAL 

    ASSOCIATION,
      as Trustee

     

    By:
      __________________________________

    Name:
      ________________________________

    Title:
      _________________________________ 

     

     

    
      
        
        

      

      
        G-2-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-3

     

    FORM
      OF FINAL CERTIFICATION OF TRUSTEE

     

    FINAL
      CERTIFICATION OF TRUSTEE

     

    [date]

     

    
      	
              Greenwich
                Capital Acceptance, Inc.

              600
                Steamboat Road

              Greenwich,
                Connecticut 06830

            	 
	 	 
	
              Thornburg
                Mortgage Home Loans, Inc.

              150
                Washington Avenue, Suite 302 

              Santa
                Fe, New Mexico 87501

            	 
	 	 
	
              Wells
                Fargo Bank, N.A.

              9062
                Old Annapolis Road

              Columbia,
                Maryland 21045

            	 

    

     

    
      
        	Re:	
                Pooling
                  and Servicing Agreement among Greenwich Capital Acceptance, Inc.,
                  as
                  Depositor, Thornburg Mortgage Home Loans, Inc., as Seller, Wells
                  Fargo
                  Bank, N.A., as Master Servicer and Securities Administrator and
                  LaSalle
                  Bank National Association, as Trustee and Custodian, Thornburg
                  Mortgage
                  Loan Pass-Through Certificates,
                  Series 2008-1 

              

      

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Trustee,
      hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan
      Schedule (other than any Mortgage Loan paid in full or listed on the attached
      Document Exception Report) it has received all documents required to be
      delivered to the Trustee pursuant to Section 2.01 of the Pooling and Servicing
      Agreement.

     

    Based
      on
      its review and examination and only as to the foregoing documents, (a) such
      documents appear regular on their face and related to such Mortgage Loan, and
      (b) the information set forth in items (i), (ii), (iii), (xiii), (xiv) and
      (xviii) of the definition of the “Mortgage Loan Schedule” in Section 1.01 of the
      Pooling and Servicing Agreement accurately reflects information set forth in
      the
      Mortgage File.

     

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review specifically required in the Pooling and
      Servicing Agreement. The Trustee makes no representations as to: (i) the
      validity, legality, sufficiency, enforceability or genuineness of any of the
      documents contained in each Mortgage File of any of the Mortgage Loans
      identified on the Mortgage Loan Schedule, or (ii) the collectibility,
      insurability, effectiveness or suitability of any such Mortgage
      Loan.

     

    
      
        
        

      

      
        G-3-1

        
          

        

      

      
        
        

      

       

    

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Pooling and Servicing Agreement.

     

    

     

    LASALLE
      BANK NATIONAL 

    ASSOCIATION,
      as Trustee

     

    
      By:
        __________________________________

      Name:
        ________________________________

      Title:
        _________________________________ 

    

     

     

    
      
        
        

      

      
        G-3-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

     

    FORM
      OF LOST NOTE AFFIDAVIT

     

    Personally
      appeared before me the undersigned authority to administer oaths,
      ______________________ who first being duly sworn deposes and says: Deponent
      is
      ______________________ of Thornburg Mortgage Home Loans, Inc. (the “Seller”) and
      who has personal knowledge of the facts set out in this affidavit.

     

    On
      ___________________, _________________________ did execute and deliver a
      promissory note in the principal amount of $__________.

     

    That
      said
      note has been misplaced or lost through causes unknown and is currently lost
      and
      unavailable after diligent search has been made. The Seller’s records show that
      an amount of principal and interest on said note is still presently outstanding,
      due, and unpaid, and such Seller is still owner and holder in due course of
      said
      lost note.

     

    The
      Seller executes this Affidavit for the purpose of inducing LaSalle Bank National
      Association, as trustee on behalf of Thornburg Mortgage Securities Trust 2008-1,
      Mortgage Loan Pass-Through Certificates, Series 2008-1, to accept the transfer
      of the above described loan from the Seller.

     

    The
      Seller agrees to indemnify LaSalle Bank National Association and Greenwich
      Capital Acceptance, Inc. and hold them harmless for any losses incurred by
      such
      parties resulting from the fact that the above described Note has been lost
      or
      misplaced.

     

    

    By: 
      __________________________________

    __________________________________

     

    
      	
              STATE
                OF 

            	
              )

            	 
	 	
              )

            	
              ss:

            
	
              COUNTY
                OF

            	
              )

            	 

    

    

    

    On
      this
      ____ day of ___________ 20__, before me, a Notary Public, in and for said County
      and State, appeared ________________________, who acknowledged the extension
      of
      the foregoing and who, having been duly sworn, states that any representations
      therein contained are true.

     

    Witness
      my hand and Notarial Seal this ____ day of _______ 20__.

     

    _______________________________

    _______________________________

     

    My
      commission expires _______________.

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    FORM
      OF ERISA REPRESENTATION

     

    [date]

    

    Greenwich
      Capital Acceptance, Inc.

    600
      Steamboat Road

    Greenwich,
      Connecticut 06830

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

     

    
      	
            	Re:	
              Thornburg
                Mortgage Securities Trust 2008-1, 

              
                Mortgage
                  Loan Pass-Through Certificates, Series
                  2008-1

              

            

    

     

    Ladies
      and Gentlemen:

     

    1. The
      undersigned is the ______________________ of _________________ (the
“Transferee”), a [corporation duly organized] and existing under the laws of
      __________, on behalf of which she makes this affidavit.

     

    2. With
      respect to an ERISA-Restricted Certificate, the Transferee either (x) is not
      an
      employee benefit plan that is subject to the Employee Retirement Income Security
      Act of 1974, as amended (“ERISA”), or a plan or an arrangement that is subject
      to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (a
“Plan”), nor are we acting on behalf of any such plan or an arrangement nor
      using the assets of any such plan or arrangement to effect such transfer; (y)
      if
      the Certificates have been the subject of an ERISA-Qualifying Underwriting,
      is
      an insurance company which is purchasing such Certificates with funds contained
      in an “insurance company general account” (as such term is defined in Section
      V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”) and that the
      purchase and holding of such Certificates are covered under Section I and III
      of
      PTCE 95-60; or (z) shall deliver to the Securities Administrator and the
      Depositor an opinion of counsel (a “Benefit Plan Opinion”) satisfactory to the
      Securities Administrator, and upon which the Securities Administrator and the
      Depositor shall be entitled to rely, to the effect that the purchase or holding
      of such Certificate by the Transferee will not constitute or result in a
      non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and will not subject the Trustee, the Master Servicer, any Servicer,
      the Securities Administrator or the Depositor to any obligation in addition
      to
      those undertaken by such entities in the Pooling and Servicing Agreement or
      to
      any liability, which opinion of counsel shall not be an expense of the Trustee,
      the Securities Administrator or the Trust.

     

    3. With
      respect to a Certificate (other than an ERISA-Restricted Certificate), the
      Transferee either (i) not a Plan nor a person acting on behalf of any such
      plan
      or an arrangement nor using the assets of any such plan or arrangement to effect
      such transfer or (ii) if such Certificate (other than an ERISA-Restricted
      Certificate) has been the subject of an ERISA-Qualifying Underwriting, the
      acquisition and holding of the Certificate (other than an ERISA-Restricted
      Certificate) are eligible for exemptive relief under Prohibited Transaction
      Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23,
      the statutory exemption for non-fiduciary service providers under Section
      408(b)(17) of ERISA and Section 4975(d)(20) of the Code or some other applicable
      administrative or statutory exemption.

     

    
      
        
        

      

      
        I-1-1

        
          

        

      

      
        
        

      

       

    

    4. The
      Transferee hereby acknowledges that under the terms of the Pooling and Servicing
      Agreement dated as of February 1, 2008 (the “Agreement”) among Greenwich Capital
      Acceptance, Inc., as Depositor, Thornburg Mortgage Home Loans, Inc., as Seller,
      Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator and
      LaSalle Bank National Association, as Trustee and Custodian, no transfer of
      the
      ERISA-Restricted Certificates shall be permitted to be made to any person unless
      the Depositor and Securities Administrator have received a certificate from
      such
      transferee in the form hereof.

     

    IN
      WITNESS WHEREOF, the Transferee has executed this certificate.

     

    _________________________________

    [Transferee]

     

    By:______________________________

    Name:

    Title:

     

    
      
        
        

      

      
        I-1-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      J-1

     

    FORM
      OF INVESTMENT LETTER [NON-RULE 144A]

     

    [date]

     

    

    Greenwich
      Capital Acceptance, Inc.

    600
      Steamboat Road

    Greenwich,
      Connecticut 06830

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

     

    
      	 	
              Re:

            	
              Thornburg
                Mortgage Securities Trust 2008-1, 

              
                Mortgage
                  Loan Pass-Through Certificates, Series 2008-1
                   

              

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-captioned Certificates, we certify
      that (a) we understand that the Certificates are not being registered under
      the
      Securities Act of 1933, as amended (the “Act”), or any state securities laws and
      are being transferred to us in a transaction that is exempt from the
      registration requirements of the Act and any such laws, (b) we are an
“accredited investor”, as defined in Regulation D under the Act, and have such
      knowledge and experience in financial and business matters that we are capable
      of evaluating the merits and risks of investments in the Certificates, (c)
      we
      have had the opportunity to ask questions of and receive answers from the
      Depositor concerning the purchase of the Certificates and all matters relating
      thereto or any additional information deemed necessary to our decision to
      purchase the Certificates, (d) if we are acquiring an ERISA-Restricted
      Certificate either (i) we are not an employee benefit plan that is subject
      to
      the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or a
      plan or an arrangement that is subject to Section 4975 of the Internal Revenue
      Code of 1986, as amended (the “Code”) (a “Plan”), nor are we acting on behalf of
      any such plan or an arrangement nor using the assets of any such plan or
      arrangement to effect such transfer; (ii) if the Certificates have been the
      subject of an ERISA-Qualifying Underwriting, we are an insurance company which
      is purchasing such Certificates with funds contained in an “insurance company
      general account” (as such term is defined in Section V(e) of Prohibited
      Transaction Class Exemption 95-60 (“PTCE 95-60”) and the purchase and holding of
      such Certificates are covered under Section I and III of PTCE 95-60 or (iii)
      we
      have presented an Opinion of Counsel satisfactory to the Securities
      Administrator, which Opinion of Counsel shall not be an expense of either the
      Securities Administrator or the Trust, addressed to the Securities Administrator
      and the Depositor, to the effect that the purchase and holding of such
      ERISA-Restricted Certificate that is a Physical Certificate will not result
      in a
      non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and will not subject the Trustee, the Master Servicer, any Servicer,
      the Securities Administrator or the Depositor to any obligation in addition
      to
      those expressly undertaken in this Agreement or to any liability, (e)
      if

     

    
      
        
        

      

      
        J-1-1

        
          

        

      

      
        
        

      

       

    

     we
      are acquiring a Certificate (other than an ERISA-Restricted Certificate), either
      (i) we are not a Plan nor a person acting on behalf of any such plan or an
      arrangement nor using the assets of any such plan or arrangement to effect
      such
      transfer or (ii) if such Certificate (other than an ERISA-Restricted
      Certificate) has been the subject of an ERISA-Qualifying Underwriting, the
      acquisition and holding of the Certificate (other than an ERISA-Restricted
      Certificate) are eligible for exemptive relief under Prohibited Transaction
      Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23,
      the statutory exemption for non-fiduciary service providers under Section
      408(b)(17) of ERISA and Section 4975(d)(20) of the Code or some other applicable
      administrative or statutory exemption, (f) we are acquiring the Certificates
      for
      investment for our own account and not with a view to any distribution of such
      Certificates (but without prejudice to our right at all times to sell or
      otherwise dispose of the Certificates in accordance with clause (i) below),
      (g)
      we have not offered or sold any Certificates to, or solicited offers to buy
      any
      Certificates from, any person, or otherwise approached or negotiated with any
      person with respect thereto, or taken any other action which would result in
      a
      violation of Section 5 of the Act, and (h) we will not sell, transfer or
      otherwise dispose of any Certificates unless (1) such sale, transfer or other
      disposition is made pursuant to an effective registration statement under the
      Act or is exempt from such registration requirements, and if requested, we
      will
      at our expense provide an opinion of counsel to the addressees of this
      Certificate satisfactory to the Securities Administrator that such sale,
      transfer or other disposition may be made pursuant to an exemption from the
      Act,
      (2) the purchaser or transferee of such Certificate has executed and delivered
      to you a certificate to substantially the same effect as this certificate,
      and
      (3) the purchaser or transferee has otherwise complied with any conditions
      for
      transfer set forth in the Pooling and Servicing Agreement.

    Very
      truly yours,

     

    [NAME
      OF TRANSFEREE]

     

    By:                                                  
        

    Authorized
      Officer

     

    
      
        
        

      

      
        J-1-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      J-2

    

    FORM
      OF RULE 144A INVESTMENT LETTER

    

     

    [date]

     

    Greenwich
      Capital Acceptance, Inc.

    600
      Steamboat Road

    Greenwich,
      Connecticut 06830

    

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

     

    
      	 	
              Re:
                

            	
              Thornburg
                Mortgage Securities Trust 2008-1, 
                Mortgage
                  Loan Pass-Through Certificates, Series 2008-1
                   

              

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above Certificates we certify that (a)
      we
      understand that the Certificates are not being registered under the Securities
      Act of 1933, as amended (the “Act”), or any state securities laws and are being
      transferred to us in a transaction that is exempt from the registration
      requirements of the Act and any such laws, (b) we have had the opportunity
      to
      ask questions of and receive answers from the Depositor concerning the purchase
      of the Certificates and all matters relating thereto or any additional
      information deemed necessary to our decision to purchase the Certificates,
      (c)
      if we are acquiring an ERISA-Restricted Certificate, either: (i) we are not
      an
      employee benefit plan that is subject to the Employee Retirement Income Security
      Act of 1974, as amended (“ERISA”), or a plan or an arrangement that is subject
      to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (a
“Plan”), nor are we acting on behalf of any such plan or arrangement or using
      the assets of any such plan or arrangement of effect such transfer; (ii) if
      the
      Certificate 

     

    
      
        
        

      

      
        J-2-1

        
          

        

      

      
        
        

      

    

     

    is
      the
      subject of an ERISA-Qualifying Underwriting, we are an insurance company which
      is purchasing such Certificates with funds contained in an “insurance company
      general account” (as such term is defined in Section V(e) of Prohibited
      Transaction Class Exemption 95-60 (“PTCE 95-60”) and the purchase and holding of
      such Certificates are covered under Section I and III of PTCE 95-60 or (iii)
      we
      have presented an Opinion of Counsel satisfactory to the Securities
      Administrator, which Opinion of Counsel shall not be an expense of either the
      Securities Administrator or the Trust, addressed to the Securities Administrator
      and the Depositor, to the effect that the purchase and holding of such
      ERISA-Restricted Certificate that is a Physical Certificate will not result
      in a
      non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and will not subject the Trustee, the Master Servicer, any Servicer,
      the Securities Administrator or the Depositor to any obligation in addition
      to
      those expressly undertaken in this Agreement or to any liability, (d) if we
      are
      acquiring a Certificate (other than an ERISA-Restricted Certificate), either
      (i)
      we are not a Plan nor a person acting on behalf of any such plan or an
      arrangement nor using the assets of any such plan or arrangement to effect
      such
      transfer or (ii) if such Certificate (other than an ERISA-Restricted
      Certificate) has been the subject of an ERISA-Qualifying Underwriting, the
      acquisition and holding of the Certificate (other than an ERISA-Restricted
      Certificate) are eligible for exemptive relief under Prohibited Transaction
      Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23,
      the statutory exemption for non-fiduciary service providers under Section
      408(b)(17) of ERISA and Section 4975(d)(20) of the Code or some other applicable
      administrative or statutory exemption, (e) we have not, nor has anyone acting
      on
      our behalf offered, transferred, pledged, sold or otherwise disposed of the
      Certificates, any interest in the Certificates or any other similar security
      to,
      or solicited any offer to buy or accept a transfer, pledge or other disposition
      of the Certificates, any interest in the Certificates or any other similar
      security from, or otherwise approached or negotiated with respect to the
      Certificates, any interest in the Certificates or any other similar security
      with, any person in any manner, or made any general solicitation by means of
      general advertising or in any other manner, or taken any other action, that
      would constitute a distribution of the Certificates under the Act or that would
      render the disposition of the Certificates a violation of Section 5 of the
      Act
      or require registration pursuant thereto, nor will act, nor has authorized
      or
      will authorize any person to act, in such manner with respect to the
      Certificates, and (f) we are a “qualified institutional buyer” as that term is
      defined in Rule 144A under the Act and have completed either of the forms of
      certification to that effect attached hereto as Annex 1 or Annex 2. We are
      aware
      that the sale to us is being made in reliance on Rule 144A. We are acquiring
      the
      Certificates for our own account or for resale pursuant to Rule 144A and
      further, understand that such Certificates 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 Act.

     

    Very
      truly yours,

     

    [NAME
      OF TRANSFEREE]

     

    

    By:
                  
                                                    

    Authorized
      Officer

     

    
      
        
        

      

      
        J-2-2

        
          

        

      

      
        
        

      

       

    

    ANNEX
      1 TO EXHIBIT J-2

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned (the “Buyer”) hereby certifies as follows to the parties listed in
      the Rule 144A Transferee Certificate to which this certification relates with
      respect to the Certificates described therein:

     

    i. As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the Buyer.

     

    ii. In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional
      buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as
      amended (“Rule 144A”) because (i) the Buyer 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 Buyer’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A and (ii) the Buyer satisfies the criteria in the
      category marked below.

     

    ___ Corporation,
      etc.
      The
      Buyer is a corporation (other than a bank, savings and loan association or
      similar institution), Massachusetts or similar business trust, partnership,
      or
      charitable organization described in Section 501(c)(3) of the Internal Revenue
      Code of 1986, as amended.

     

    ___ Bank.
      The
      Buyer (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
      Buyer (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.

     

    ___ Broker-dealer.
      The
      Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange
      Act of 1934.

     

    
      
        
1 Buyer
        must own and/or invest on a discretionary basis at least $100,000,000 in
        securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
        invest on a discretionary basis at least $10,000,000 in
        securities.

    

     

    
      
        
        

      

      
        J-2-3

        
          

        

      

      
        
        

      

    

     

    ___ Insurance
      Company.
      The
      Buyer 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
      Buyer 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
      Buyer is an employee benefit plan within the meaning of Title I of the Employee
      Retirement Income Security Act of 1974.

     

    ___ Investment
      Advisor.
      The
      Buyer is an investment advisor registered under the Investment Advisors Act
      of
      1940.

     

    ___ Small
      Business Investment Company.
      Buyer
      is a small business investment company licensed by the U.S. Small Business
      Administration under Section 301(c) or (d) of the Small Business Investment
      Act
      of 1958.

     

    ___ Business
      Development Company.
      Buyer
      is a business development company as defined in Section 202(a)(22) of the
      Investment Advisors Act of 1940.

     

    iii. The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Buyer, (ii) securities that
      are part of an unsold allotment to or subscription by the Buyer, if the Buyer
      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.

     

    iv. For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Buyer, the Buyer used the cost of such
      securities to the Buyer and did not include any of the securities referred
      to in
      the preceding paragraph, except (i) where the Buyer reports its securities
      holdings in its financial statements on the basis of their market value, and
      (ii) no current information with respect to the cost of those securities has
      been published. If clause (ii) in the preceding sentence applies, the securities
      may be valued at market. Further, in determining such aggregate amount, the
      Buyer may have included securities owned by subsidiaries of the Buyer, but
      only
      if such subsidiaries are consolidated with the Buyer in its financial statements
      prepared in accordance with generally accepted accounting principles and if
      the
      investments of such subsidiaries are managed under the Buyer’s direction.
      However, such securities were not included if the Buyer is a majority-owned,
      consolidated subsidiary of another enterprise and the Buyer is not itself a
      reporting company under the Securities Exchange Act of 1934, as
      amended.

     

    v. The
      Buyer
      acknowledges that it is familiar with Rule 144A and understands that the seller
      to it 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
      Buyer may be in reliance on Rule 144A.

     

    vi. Until
      the
      date of purchase of the Rule 144A Securities, the Buyer 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 Buyer’s purchase of the
      Certificates will constitute a reaffirmation of this certification as of the
      date of such purchase. In addition, if the Buyer is a bank or savings and loan
      is provided above, the Buyer agrees that it will furnish to such parties updated
      annual financial statements promptly after they become available.

     

    
      
        
        

      

      
        J-2-4

        
          

        

      

      
        
        

      

       

    

                  
                                                                           

    Print
      Name of Buyer

     

    By:          
                                                                       

    Name:

    Title:

     

    Date:         
                                                                      

     

    
      
        
        

      

      
        J-2-5

        
          

        

      

      
        
        

      

    

     

    ANNEX
      2 TO EXHIBIT J-2

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That are Registered Investment Companies]

     

    The
      undersigned (the “Buyer”) hereby certifies as follows to the parties listed in
      the Rule 144A Transferee Certificate to which this certification relates with
      respect to the Certificates described therein:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the Buyer or, if the Buyer is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933, as amended (“Rule 144A”) because Buyer is part of a Family of
      Investment Companies (as defined below), is such an officer of the
      Adviser.

     

    2. In
      connection with purchases by Buyer, the Buyer is a “qualified institutional
      buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment
      company registered under the Investment Company Act of 1940, as amended and
      (ii)
      as marked below, the Buyer alone, or the Buyer’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 Buyer’s most recent fiscal year. For
      purposes of determining the amount of securities owned by the Buyer or the
      Buyer’s Family of Investment Companies, the cost of such securities was used,
      except (i) where the Buyer or the Buyer’s Family of Investment Companies reports
      its securities holdings in its financial statements on the basis of their market
      value, and (ii) no current information with respect to the cost of those
      securities has been published. If clause (ii) in the preceding sentence applies,
      the securities may be valued at market.

     

    ___ The
      Buyer
      owned $            
      in
      securities (other than the excluded securities referred to below) as of the
      end
      of the Buyer’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A).

     

    ___ The
      Buyer
      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 Buyer’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
      Buyer or are part of the Buyer’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.

     

    
      
        
        

      

      
        J-2-6

        
          

        

      

      
        
        

      

       

    

    5. The
      Buyer
      is familiar with Rule 144A and understands that the parties listed in the Rule
      144A Transferee Certificate to which this certification relates are relying
      and
      will continue to rely on the statements made herein because one or more sales
      to
      the Buyer will be in reliance on Rule 144A. In addition, the Buyer will only
      purchase for the Buyer’s own account.

     

    6. Until
      the
      date of purchase of the Certificates, the undersigned will notify the parties
      listed in the Rule 144A Transferee Certificate to which this certification
      relates of any changes in the information and conclusions herein. Until such
      notice is given, the Buyer’s purchase of the Certificates will constitute a
      reaffirmation of this certification by the undersigned as of the date of such
      purchase.

     

        
                                                                                             

    Print
      Name of Buyer or Adviser

     

    By:    
                                                                              
         

    Name:

    Title:

     

    IF
      AN ADVISER:

     

                                                                                               

    Print
      Name of Buyer

     

    Date:    
                                                                               
     

    

    

    
      
        
        

      

      
        J-2-7

        
          

        

      

      
        
        

      

    

    EXHIBIT
      K

     

    FORM
      OF TRANSFEROR CERTIFICATE

     

    [date]

     

    Greenwich
      Capital Acceptance, Inc.

    600
      Steamboat Road

    Greenwich,
      Connecticut 06830

    

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

     

    
      	 	
              Re:
                

            	
              Thornburg
                Mortgage Securities Trust 2008-1, Mortgage 
                Loan
                  Pass-Through Certificates, Series 2008-1, Class
                  A-R 

              

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our proposed transfer of an Ownership Interest in Class A-R
      Certificates, we hereby certify that (a) we have no knowledge that the proposed
      Transferee is not a Permitted Transferee acquiring an Ownership Interest in
      such
      Class A-R Certificate for its own account and not in a capacity as trustee,
      nominee, or agent for another Person, and (b) we have not undertaken the
      proposed transfer in whole or in part to impede the assessment or collection
      of
      tax.

     

    Very
      truly yours,

     

    [_____________________]

     

    By:
      ______________________________

     

    
      
        
        

      

      
        K-1

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      L

     

    TRANSFER
      AFFIDAVIT FOR CLASS A-R CERTIFICATE

    PURSUANT
      TO SECTION 6.02(e)

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2008-1,

    MORTGAGE
      LOAN PASS-THROUGH CERTIFICATES, SERIES 2008-1, CLASS A-R 

    

    

    
      	
              STATE
                OF 

            	
              )

            	 
	 	
              )

            	
              ss:

            
	
              COUNTY
                OF

            	
              )

            	 

    

    

    The
      undersigned, being first duly sworn, deposes and says as follows:

     

    
      	
              1.

            	
              The
                undersigned is an officer of ______________________, the proposed
                Transferee of a 100% Ownership Interest in the Class A-R Certificate
                (the
                “Certificate”) issued pursuant to the Pooling and Servicing Agreement,
                (the “Agreement”), dated as of February 1, 2008, relating to the
                above-referenced Certificates, among Greenwich Capital Acceptance,
                Inc.,
                as Depositor, Thornburg Mortgage Home Loans, Inc., as Seller, Wells
                Fargo
                Bank, N.A., as Master Servicer and LaSalle Bank National Association,
                as
                Trustee and Custodian. Capitalized terms used, but not defined herein,
                shall have the meanings ascribed to such terms in the Agreement.
                The
                Transferee has authorized the undersigned to make this affidavit
                on behalf
                of the Transferee.

            

    

     

    
      	
              2.

            	
              The
                Transferee is, as of the date hereof, and will be, as of the date
                of the
                Transfer, a Permitted Transferee. The Transferee is acquiring its
                Ownership Interest for its own account and not in a capacity as trustee,
                nominee or agent for another party.

            

    

     

    
      	
              3.

            	
              The
                Transferee has been advised of, and understands that (i) a tax will
                be
                imposed on Transfers of the Certificate to Persons that are not Permitted
                Transferees; (ii) such tax will be imposed on the transferor, or,
                if such
                Transfer is through an agent (which includes a broker, nominee or
                middleman) for a Person that is not a Permitted Transferee, on the
                agent;
                and (iii) the Person otherwise liable for the tax shall be relieved
                of
                liability for the tax if the subsequent Transferee furnished to such
                Person an affidavit that such subsequent Transferee is a Permitted
                Transferee and, at the time of Transfer, such Person does not have
                actual
                knowledge that the affidavit is false. The Transferee has provided
                financial statements or other financial information requested by
                the
                Transferor in connection with the transfer of the Certificate to
                permit
                the Transferor to assess the financial capability of the Transferee
                to pay
                such taxes.

            

    

     

    
      	
              4.

            	
              The
                Transferee has been advised of, and understands that a tax may be
                imposed
                on a “pass-through entity” holding the Certificate if, at any time during
                the taxable year of the pass-through entity, a Disqualified Organization
                is the record holder of an interest in such entity. The Transferee
                understands that such tax will not be imposed for any period with
                respect
                to which the record holder furnishes to the pass-through entity an
                affidavit that such record holder is not a Disqualified Organization
                and
                the pass-through entity does not have actual knowledge that such
                affidavit
                is false. (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 and, except
                as may
                be provided in Treasury Regulations, persons holding interests in
                pass-through entities as a nominee for another
                Person.)

            

    

     

    
      
        
        

      

      
        L-1

        
          

        

      

      
        
        

      

       

    

    
      	
              5.

            	
              The
                Transferee has reviewed the provisions of Section 6.02(e) of the
                Agreement
                and understands the legal consequences of the acquisition of an Ownership
                Interest in the Certificate including, without limitation, the
                restrictions on subsequent Transfers and the provisions regarding
                voiding
                the Transfer and mandatory sales. The Transferee expressly agrees
                to be
                bound by and to abide by the provisions of Section 6.02(e) of the
                Agreement and the restrictions noted on the face of the Certificate.
                The
                Transferee understands and agrees that any breach of any of the
                representations included herein shall render the Transfer to the
                Transferee contemplated hereby null and
                void.

            

    

     

    
      	
              6.

            	
              The
                Transferee agrees to require a Transfer Affidavit from any Person
                to whom
                the Transferee attempts to Transfer its Ownership Interest in the
                Certificate, and the Transferee will not Transfer its Ownership Interest
                or cause any Ownership Interest to be Transferred to any Person that
                the
                Transferee knows is not a Permitted Transferee. In connection with
                any
                such Transfer by the Transferee, the Transferee agrees to deliver
                to the
                Securities Administrator a certificate substantially in the form
                set forth
                as Exhibit K to the Agreement (a “Transferor
                Certificate”).

            

    

     

    
      	
              7.

            	
              The
                Transferee does not have the intention to impede the assessment or
                collection of any tax legally required to be paid with respect to
                the
                Certificate.

            

    

     

    
      	8.	
              The
                Transferee’s taxpayer identification number is             .

            

    

     

    
      	
              9.

            	
              The
                Transferee is aware that the Certificate may be a “noneconomic residual
                interest” within the meaning of the REMIC provisions 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 was to impede the assessment
                or
                collection of tax.

            

    

     

    
      
        
        

      

      
        L-2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Transferee has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its duly authorized
      officer and its corporate seal to be hereunto affixed, duly attested, this
          
      day
      of
                  ,
      20  .

     

    [NAME
      OF TRANSFEREE]

     

    By:  
                                                                     
      

    Name:

    Title:

     

    [Corporate
      Seal]

     

    ATTEST:

     

                              
                       

    [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 the                     
      of the
      Transferee, and acknowledged that he executed the same as his free act and
      deed
      and the free act and deed of the Transferee.

     

    Subscribed
      and sworn before me this     
      day
      of
        
      ,
      20  .

     

    

    

    

         
                                                              
                

    NOTARY
      PUBLIC

     

    
      	 	 	 	 	 	 	 	
              My
                Commission expires the     
                day of                 ,
                20  .

            

    

     

    
      
        
        

      

      
        L-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      M

     

    [Reserved]

     

    

    

    
      
        
        

      

      
        M-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      N

     

    LIST
      OF SERVICERS AND SERVICING AGREEMENTS

     

    
      	 	
              1.

            	
              (a)
                Servicing Agreement, dated as of March 1, 2002, among Thornburg Mortgage
                Home Loans, Inc. (“Thornburg”), as seller and servicer and Wells Fargo, as
                master servicer, (“Wells Fargo”) as amended by the Amendment to Servicing
                Agreement, dated as of December 1, 2002, and as amended by the Second
                Amendment to Servicing Agreement, dated as of January 1, 2006, and
                (b) the
                Sub-Servicing Acknowledgement Agreement, dated as of March 1, 2002,
                by and
                between Thornburg, as servicer, and Cenlar FSB, as sub-servicer
                (“Cenlar”), as amended by the Amendment to Sub-Servicing Acknowledgement
                Agreement, dated as of December 1, 2002, by the Second Amendment
                to
                Subservicing Acknowledgement Agreement, dated as of January 1, 2006,
                by
                the Third Amendment to Subservicing Acknowledgement, dated as of
                August 1,
                2007, by the Fourth Amendment to Subservicing Acknowledgment Agreement,
                dated as of October 1, 2007, by the Fifth Amendment to Subservicing
                Acknowledgement Agreement dated as of February 1, 2008, and by the
                Sixth
                Amendment to Subservicing Acknowledgement Agreement, dated as of
                February
                1, 2008, including the related Transfer Notice, dated February 28,
                2008,
                from Thornburg, as seller, to Thornburg, as servicer, and Cenlar,
                as
                sub-servicer.

            

    

     

    
      	 	
              2.

            	
              Amended
                and Restated Correspondent Loan Purchase Agreement, dated as of March
                25,
                2002, between Thornburg Mortgage Home Loans, Inc. (“Thornburg”) and First
                Republic Bank (“First Republic”), including the related Transfer Notice
                dated February 28, 2008, from Thornburg to First
                Republic.

            

    

     

    
      	 	
              3.

            	
              Amended
                and Restated Correspondent Loan Purchase Agreement, dated as of March
                27,
                2002, between Thornburg Mortgage Home Loans, Inc. (“Thornburg”) and
                Colonial Savings, F.A. (“Colonial”), including the related Transfer Notice
                dated February 28, 2008, from Thornburg to
                Colonial.

            

    

     

    
      	 	
              4.

            	
              Correspondent
                Loan Purchase Agreement, dated as of April 6, 2006, between Thornburg
                Mortgage Home Loans, Inc. (“Thornburg”) and First Horizon Home Loans, a
                division of First Tennessee Bank National Association (“First Horizon”),
                including the related Transfer Notice dated February 28, 2008, from
                Thornburg to First Horizon.

            

    

     

    
      
        
        

      

      
        N-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      O

    NOTICE
      OF EXERCISE OF OPTIONAL SECURITIES PURCHASE RIGHT

     

    Date__________________

     

    
      	
              [TRUSTEE]

            
	 
	
              [SECURITIES
                ADMINISTRATOR]

            
	 
	
              [RATING
                AGENCIES]

            
	 
	
              [MASTER
                SERVICER]

            
	 
	 

    

    

    
      	 	
              Re:

            	
              Thornburg
                Mortgage Securities Trust 2008-1

            

    

     

    Ladies
      and Gentlemen:

     

    Pursuant
      to the terms of the Pooling and Servicing Agreement (the “Agreement”), dated as
      of February 1, 2008, among Greenwich Capital Acceptance, Inc., as depositor,
      Thornburg Mortgage Home Loans, Inc., Wells Fargo Bank, N.A., as master servicer
      and securities administrator, and LaSalle Bank National Association, as trustee,
      we hereby give notice of our exercise of the Optional Securities Purchase Right.
      We intend to purchase the outstanding Certificates on the Distribution Date
      in
      ______ 20__. [We appoint __________________ as designee to purchase the Class
      A-R Certificates.]

     

    
      	
              Very
                truly yours,

               

              THORNBURG
                MORTGAGE, INC.

            
	 
	 
	
              By:

            	 
	 	
              Authorized
                Officer

            
	 	 
	 	 
	 	 

    

    

    
      
        
        

      

      
        O-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      P

     

    [Reserved]

     

    

    

    

     

    

    
      
        
        

      

      
        P-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      Q

     

    SERVICING
      CRITERIA

     

    The
      assessment of compliance to be delivered by Wells Fargo Bank, N.A. (“Wells
      Fargo”), in its capacities as Master Servicer and Securities Administrator, and
      LaSalle Bank National Association, in its capacity as Custodian, shall address,
      at a minimum, the criteria identified below as “Applicable Servicing
      Criteria”:

     

    
      	
              Servicing
                Criteria

            	
              Applicable

              Servicing

              Criteria
                for 

              Wells
                Fargo

            	
              Applicable

              Servicing

              Criteria
                for 

              LaSalle

            
	
              Reference

            	
              Criteria

            	 	 

    

    
      	 	
              General
                Servicing Considerations

            	 	 
	 	 	 	 
	
              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	
              X

            	 
	
              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	
              X

            	 
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the mortgage loans are maintained.

            	 	 
	
              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	
              X

            	 
	 	
              Cash
                Collection and Administration

            	 	 
	
              1122(d)(2)(i)

            	
              Payments
                on mortgage loans are deposited into the appropriate custodial bank
                accounts and related bank clearing accounts no more than two business
                days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	
              X

            	 
	
              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	
              X

            	 
	
              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	
              X

            	 
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	
              X

            	 

    

     

    
      
        
        

      

      
        Q-1

        
          

        

      

      
        
        

      

    

    
       

      
        	
                Servicing
                  Criteria

              	
                Applicable

                Servicing

                Criteria
                  for 

                Wells
                  Fargo

              	
                Applicable

                Servicing

                Criteria
                  for 

                LaSalle

              
	
                Reference

              	
                Criteria

              	 	 

      

    

    
      	
              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	
              X

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              X

            	 
	
              1122(d)(2)(vii)

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	
              X

            	 
	 	
              Investor
                Remittances and Reporting

            	 	 
	
              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of mortgage loans serviced by the
                Servicer.

            	
              X

            	 
	
              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	
              X

            	 
	
              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	
              X

            	 
	
              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	
              X

            	 

    

     

    
      
        
        

      

      
        Q-2

        
          

        

      

      
        
        

      

    

    
       

      
        	
                Servicing
                  Criteria

              	
                Applicable

                Servicing

                Criteria
                  for 

                Wells
                  Fargo

              	
                Applicable

                Servicing

                Criteria
                  for 

                LaSalle

              
	
                Reference

              	
                Criteria

              	 	 

      

    

    
      	 	
              Pool
                Asset Administration

            	 	 
	
              1122(d)(4)(i)

            	
              Collateral
                or security on mortgage loans is maintained as required by the transaction
                agreements or related mortgage loan documents.

            	 	
              X

            
	
              1122(d)(4)(ii)

            	
              Mortgage
                loan and related documents are safeguarded as required by the transaction
                agreements.

            	 	
              X

            
	
              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 	
              X

            
	
              1122(d)(4)(iv)

            	
              Payments
                on mortgage loans, including any payoffs, made in accordance with
                the
                related mortgage loan documents are posted to the Servicer’s obligor
                records maintained no more than two business days after receipt,
                or such
                other number of days specified in the transaction agreements, and
                allocated to principal, interest or other items (e.g., escrow) in
                accordance with the related mortgage loan documents.

            	 	 
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the mortgage loans agree with the Servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 	 
	
              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 	 
	
              1122(d)(4)(vii)

            	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	 	 
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                mortgage
                loan is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent mortgage loans including, for
                example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 	 
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for mortgage loans with variable
                rates are computed based on the related mortgage loan
                documents.

            	 	 
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s mortgage loan
                documents, on at least an annual basis, or such other period specified
                in
                the transaction agreements; (B) interest on such funds is paid, or
                credited, to obligors in accordance with applicable mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	 	 

    

     

    
      
        
        

      

      
        Q-3

        
          

        

      

      
        
        

      

    

     

      
        	
                Servicing
                  Criteria

              	
                Applicable

                Servicing

                Criteria
                  for 

                Wells
                  Fargo

              	
                Applicable

                Servicing

                Criteria
                  for 

                LaSalle

              
	
                Reference

              	
                Criteria

              	 	 

      

    

    
      	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 	 
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 	 
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 	 
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	
              X

            	 
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	
              X

            	 
	 	 	 	 

    

     

    
      
        
        

      

      
        Q-4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      R

     

    ADDITIONAL
      FORM 10-D DISCLOSURE

     

    
      	
              ADDITIONAL
                FORM 10-D DISCLOSURE

            
	
              Item
                on Form 10-D

            	
              Party
                Responsible 

            

    

    
      	
              Item
                1: Distribution and Pool Performance Information

               

            	 
	
              Information
                included in the Distribution Date Statement

            	
              Servicer

              Master
                Servicer

              Securities
                Administrator

            
	
              Any
                information required by 1121 which is NOT included on the Distribution
                Date Statement

            	
              Depositor

            
	
              Item
                2: Legal Proceedings

               

              Any
                legal proceeding pending against the following entities or their
                respective property, that is material to Certificateholders, including
                any
                proceeding known to be contemplated by governmental
                authorities:

            	 
	
              ▪
                Issuing Entity (Trust Fund)

            	
              Trustee,
                Master Servicer, Securities Administrator and Depositor

            
	
              ▪
                Sponsor (Seller)

            	
              Seller
                (if a party to the Pooling and Servicing Agreement) or
                Depositor

            
	
              ▪
                Depositor

            	
              Depositor

            
	
              ▪
                Trustee

            	
              Trustee

            
	
              ▪
                Securities Administrator

            	
              Securities
                Administrator

            
	
              ▪
                Master Servicer

            	
              Master
                Servicer

            
	
              ▪
                Custodian

            	
              Custodian

            
	
              ▪
                1110(b) Originator

            	
              Depositor

            
	
              ▪
                Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                Administrator)

            	
              Servicer

            
	
              ▪
                Any other party contemplated by 1100(d)(1)

            	
              Depositor

            
	
              Item
                3: Sale 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.

            	
              Depositor

            

    

     

    
      
        
        

      

      
        R-1

        
          

        

      

      
        
        

      

    

    
       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              

      

    

    
      	
              Item
                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)

            	
              Securities
                Administrator

              Trustee
                (in the event of the 

              Master
                Servicer’s termination)

            
	
              Item
                5: Submission of Matters to a Vote of Security
                Holders

               

              Information
                from Item 4 of Part II of Form 10-Q

            	
              Securities
                Administrator

              Trustee

            
	
              Item
                6: Significant Obligors of Pool Assets

               

              Item
                1112(b) - Significant
                Obligor Financial Information*

            	
              Depositor

            
	
              *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.

            	 
	
              Item
                7: Significant Enhancement Provider Information

               

              Item
                1114(b)(2) - Credit Enhancement Provider Financial
                Information*

            	 
	
              ▪
                Determining applicable disclosure threshold

            	
              Depositor

            
	
              ▪
                Requesting required financial information (including any required
                accountants’ consent to the use thereof) or effecting incorporation by
                reference

            	
              Depositor

            
	
              Item
                1115(b) - Derivative Counterparty Financial
                Information*

            	 
	
              ▪
                Determining current maximum probable exposure

            	
              Depositor

            
	
              ▪
                Determining current significance percentage

            	
              Depositor

            
	
              ▪
                Requesting required financial information (including any required
                accountants’ consent to the use thereof) or effecting incorporation by
                reference

            	
              Depositor

            
	
              *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.

            	 
	
              Item
                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

            	
              Any
                party responsible for the applicable Form 8-K Disclosure
                item

            

    

     

    
      
        
        

      

      
        R-2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              

      

    

    
      	
              Item
                9: Exhibits

            	 
	
              Distribution
                Date Statement to Certificateholders

            	
              Securities
                Administrator

            
	
              Exhibits
                required by Item 601 of Regulation S-K, such as material
                agreements

            	
              Depositor

            

    

    

    
      
        
        

      

      
        R-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      S

     

    ADDITIONAL
      FORM 10-K DISCLOSURE

     

    
      	
              ADDITIONAL
                FORM 10-K DISCLOSURE

            
	
              Item
                on Form 10-K

            	
              Party
                Responsible 

            

    

    
      	
              Item
                1B: Unresolved Staff Comments

               

            	
              Depositor

            
	
              Item
                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

            	
              Any
                party responsible for disclosure items on Form 8-K

            
	
              Item
                15: Exhibits, Financial Statement Schedules

            	
              Securities
                Administrator

              Depositor

            
	
              Reg
                AB Item 1112(b): Significant Obligors of Pool
                Assets

            	 
	
              Significant
                Obligor Financial Information*

            	
              Depositor

            
	
              *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.

            	 
	
              Reg
                AB Item 1114(b)(2): Credit Enhancement Provider Financial
                Information

            	 
	
              ▪
                Determining applicable disclosure threshold

            	
              Depositor

            
	
              ▪
                Requesting required financial information (including any required
                accountants’ consent to the use thereof) or effecting incorporation by
                reference

            	
              Depositor

            
	
              *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.

            	 
	
              Reg
                AB Item 1115(b): Derivative Counterparty Financial
                Information

            	 
	
              ▪
                Determining current maximum probable exposure

            	
              Depositor

            
	
              ▪
                Determining current significance percentage

            	
              Depositor

            
	
              ▪
                Requesting required financial information (including any required
                accountants’ consent to the use thereof) or effecting incorporation by
                reference

            	
              Depositor

            
	
              *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.

            	 
	
              Reg
                AB Item 1117: Legal Proceedings

               

              Any
                legal proceeding pending against the following entities or their
                respective property, that is material to Certificateholders, including
                any
                proceeding known to be contemplated by governmental
                authorities:

            	 

    

     

    
      
        
        

      

      
        S-1

        
          

        

      

      
        
        

      

    

    
       

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              

      

    

    
      	
              ▪
                Issuing Entity (Trust Fund)

            	
              Trustee,
                Master Servicer, Securities Administrator and Depositor

            
	
              ▪
                Sponsor (Seller)

            	
              Seller
                (if a party to the Pooling and Servicing Agreement) or
                Depositor

            
	
              ▪
                Depositor

            	
              Depositor

            
	
              ▪
                Trustee

            	
              Trustee

            
	
              ▪
                Securities Administrator

            	
              Securities
                Administrator

            
	
              ▪
                Master Servicer

            	
              Master
                Servicer

            
	
              ▪
                Custodian

            	
              Custodian

            
	
              ▪
                1110(b) Originator

            	
              Depositor

            
	
              ▪
                Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                Administrator)

            	
              Servicer

            
	
              ▪
                Any other party contemplated by 1100(d)(1)

            	
              Depositor

            
	
              Reg
                AB Item 1119: Affiliations and Relationships

            	 
	
              Whether
                (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                of
                the following parties, and (b) to the extent known and material,
                any of
                the following parties are affiliated with one another:

            	
              Depositor
                as to Depositor and Issuing Entity (a) 

              Sponsor/Seller
                as to Sponsor/Seller (a)

            
	
              ▪
                Master Servicer

            	
              Master
                Servicer 

            
	
              ▪
                Securities Administrator

            	
              Securities
                Administrator

            
	
              ▪
                Trustee

            	
              Trustee

            
	
              ▪
                Any other 1108(a)(3) servicer

            	
              Servicer

            
	
              ▪
                Any 1110 Originator

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1112(b) Significant Obligor

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1114 Credit Enhancement Provider

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1115 Derivate Counterparty Provider

            	
              Depositor/Sponsor

            
	
              ▪
                Any other 1101(d)(1) material party

            	
              Depositor/Sponsor

            
	
              Whether
                there are any “outside the ordinary course business arrangements” other
                than would be obtained in an arm’s length transaction between (a) the
                Sponsor (Seller), Depositor or Issuing Entity on the one hand, and
                (b) any
                of the following parties (or their affiliates) on the other hand,
                that
                exist currently or within the past two years and that are material
                to a
                Certificateholder’s understanding of the Certificates:

            	
              Depositor
                as to Depositor and Issuing Entity (a) 

              Sponsor/Seller
                as to Sponsor/Seller (a)

            
	
              ▪
                Master Servicer

            	
              Master
                Servicer 

            
	
              ▪
                Securities Administrator

            	
              Securities
                Administrator

            
	
              ▪
                Trustee

            	
              Trustee

            
	
              ▪
                Any other 1108(a)(3) servicer

            	
              Servicer

            
	
              ▪
                Any 1110 Originator

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1112(b) Significant Obligor

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1114 Credit Enhancement Provider

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1115 Derivate Counterparty Provider

            	
              Depositor/Sponsor

            
	
              ▪
                Any other 1101(d)(1) material party

            	
              Depositor/Sponsor

            
	
              Whether
                there are any specific relationships involving the transaction or
                the pool
                assets between (a) the Sponsor (Seller), Depositor or Issuing Entity
                on
                the one hand, and (b) any of the following parties (or their affiliates)
                on the other hand, that exist currently or within the past two years
                and
                that are material:

            	
              Depositor
                as to Depositor and Issuing Entity 

              Sponsor/Seller
                as to Sponsor/Seller

            

    

     

    
      
        
        

      

      
        S-2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              

      

    

    
      	
              ▪
                Master Servicer

            	
              Master
                Servicer 

            
	
              ▪
                Securities Administrator

            	
              Securities
                Administrator

            
	
              ▪
                Trustee

            	
              Trustee

            
	
              ▪
                Any other 1108(a)(3) servicer

            	
              Servicer

            
	
              ▪
                Any 1110 Originator

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1112(b) Significant Obligor

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1114 Credit Enhancement Provider

            	
              Depositor/Sponsor

            
	
              ▪
                Any 1115 Derivate Counterparty Provider

            	
              Depositor/Sponsor

            
	
              ▪
                Any other 1101(d)(1) material party

            	
              Depositor/Sponsor

            

    

     

    

    
      
        
        

      

      
        S-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      T

     

    ADDITIONAL
      FORM 8-K DISCLOSURE

     

    
      	
              FORM
                8-K DISCLOSURE INFORMATION

            
	
              Item
                on Form 8-K

            	
              Party
                Responsible 

            

    

    
      	
              Item
                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

            	
              All
                parties

            
	
              Item
                1.02- Termination of a Material Definitive Agreement

               

              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.

            	
              All
                parties

            
	
              Item
                1.03- Bankruptcy or Receivership

               

              Disclosure
                is required regarding the bankruptcy or receivership, with respect
                to any
                of the following: 

            	
              Depositor

            
	
              ▪
                Sponsor (Seller)

            	
              Sponsor
                (Seller)

            
	
              ▪
                Depositor

            	
              Depositor

            
	
              ▪
                Master Servicer

            	
              Master
                Servicer

            
	
              ▪
                Affiliated Servicer

            	
              Servicer

            
	
              ▪
                Other Servicer servicing 20% or more of the pool assets at the time
                of the
                report

            	
              Servicer

            
	
              ▪
                Other material servicers

            	
              Servicer

            
	
              ▪
                Trustee

            	
              Trustee

            
	
              ▪
                Securities Administrator

            	
              Securities
                Administrator

            
	
              ▪
                Significant Obligor

            	
              Depositor

            
	
              ▪
                Credit Enhancer (10% or more)

            	
              Depositor

            
	
              ▪
                Derivative Counterparty

            	
              Depositor

            

    

     

    
      
        
        

      

      
        T-1

        
          

        

      

      
        
        

      

    

    
       

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              

      

    

    
      	
              ▪
                Custodian

            	
              Custodian

            
	
              Item
                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 Distribution Date Statements to the
                certificateholders.

            	
              Depositor

              Master
                Servicer

              Securities
                Administrator

            
	
              Item
                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.

            	
              Securities
                Administrator

              Depositor

            
	
              Item
                5.03- Amendments of Articles of Incorporation or Bylaws; Change of
                Fiscal
                Year

              Disclosure
                is required of any amendment “to the governing documents of the issuing
                entity”.

            	
              Depositor

            
	
              Item
                6.01- ABS Informational and Computational
                Material

            	
              Depositor

            
	
              Item
                6.02- Change of Servicer or Securities Administrator

               

              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 or
                trustee.

            	
              Master
                Servicer/Securities Administrator/Depositor/

              Servicer/Trustee
                (if change of the 

              Securities
                Administrator)

            
	
              Reg
                AB disclosure about any new servicer or master servicer is also
                required.

            	
              Servicer/Master
                Servicer/Depositor

            
	
              Reg
                AB disclosure about any new Trustee is also required.

            	
              Trustee

            
	
              Item
                6.03- Change in Credit Enhancement or 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.
                

            	
              Depositor/Securities
                Administrator

            

    

     

    
      
        
        

      

      
        T-2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              

      

    

    
      	
              Reg
                AB disclosure about any new enhancement provider is also
                required.

            	
              Depositor

            
	
              Item
                6.04- Failure to Make a Required Distribution

            	
              Securities
                Administrator

            
	
              Item
                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.

            	
              Depositor

            
	
              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.

            	
              Depositor

            
	
              Item
                7.01- Reg FD Disclosure

            	
              All
                parties

            
	
              Item
                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
                certificateholders.

            	
              Depositor

            
	
              Item
                9.01- Financial Statements and Exhibits

            	
              Responsible
                party for reporting/disclosing the financial statement or
                exhibit

            

    

     

    
      
        
        

      

      
        T-3

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      U

     

    FORM
      OF
      ADDITIONAL DISCLOSURE NOTIFICATION

     

    Wells
      Fargo Bank, N.A. as Securities Administrator 

    9062
      Old
      Annapolis Road

    Columbia,
      Maryland 21045

    Fax:
      (410) 715-2380

    E-mail:
      cts.sec.notifications@wellsfargo.com

     

    Attn:
      Corporate Trust Services - THORNBURG MORTGAGE TRUST 2008-1-SEC REPORT
      PROCESSING

     

    
      	
            	RE:	
              Additional
                Form [   ] Disclosure
                Required

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 3.19(a)(ii) of the Pooling and Servicing Agreement
      dated
      as of February 1, 2008 by and among the Greenwich Capital Acceptance, Inc.,
      as
      depositor, Thornburg Mortgage Home Loans, Inc., as seller, Wells Fargo Bank,
      N.A., as master servicer and securities administrator and LaSalle Bank National
      Association, as trustee and custodian, 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 [   
] Disclosure:

     

     

    Any
      inquiries related to this notification should be directed to [   ],
      phone number: [     ]; email address: [   
].

     

    [NAME
      OF
      PARTY]

    as
      [role]

     

     

    By:
      ______________________________________

    Name:

    Title:

     

    
      
        
        

      

      
        U-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

     

    MORTGAGE
      LOAN SCHEDULE

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    
      
        
        

      

      
        
          SCHEDULE
            I

        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      II

     

    GROUP
      1 MORTGAGE LOAN SCHEDULE

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    

     

    

     

    
      
        
        

      

      
        
          SCHEDULE
            II

        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      III

     

    GROUP
      2 MORTGAGE LOAN SCHEDULE

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    

     

    
      
        
        

      

      
        
          SCHEDULE
            III

        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      IV

     

    GROUP
      3 MORTGAGE LOAN SCHEDULE

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    
      
        
        

      

      
        
          SCHEDULE
            IV

        

        
          

        

      

      
        
        

        
          

        

      

    

    SCHEDULE
      V

     

    GROUP
      4 MORTGAGE LOAN SCHEDULE

     

    [To
      be retained in a separate closing binder entitled “Thornburg 2008-1 Mortgage
      Loan Schedule” at the Washington DC offices of McKee Nelson LLP]

     

    

     

    
      
        
        

      

      
        
          SCHEDULE
            VCONVERTIBLE
      DEBENTURE PURCHASE AGREEMENT

     

    THIS
      CONVERTIBLE DEBENTURE PURCHASE AGREEMENT (the "Agreement")
      is made
      as of February 14,
      2008,by
      and
      between Vycor Medical, Inc., a Delaware corporation (the
      "Company")
      and
Regent Private Capital, LLC, an Oklahoma limited liability
      company ("Regent").

     

    1. Funding
      Through Convertible Debentures.

     

    1.1 Issuance
      of Debentures.

     

    (a) The
      Company has authorized the issuance of two essentially identical Convertible
      Debentures each in the original principal amount of $500,000
      in
      the
      form of Exhibit
      A
      hereto
      (the "Debentures"),
      the
      first of which will be issued upon receipt of funding from Regent on the date
      hereof (the "Closing"), and the second of which will
      be
      issued
      on the earlier of (i) sixty (60)
      days
      from
      the Closing, or (ii) five (5)
      business
      days following the effective date of the Registration Statement referred to
      in
      Section 6.1
      below.
      The Debentures will be secured pursuant to the terms of a security agreement
      in
      the form of Exhibit
      B
      hereto
      (the "Security Agreement").

     

    (b) Subject
      to the terms and
      conditions
      of this Agreement, and relying on the representations and warranties contained
      herein. Regent agrees to provide the funding to the Company pursuant to the
      Debentures.

     

    1.2 Use
      of
      Proceeds.
      In
      accordance with the directions of the Company's board of
      directors, the Company will use the proceeds from the issuance of the Debentures
      for (i) general working
      capital, (ii) repayment of certain obligations that are
      listed
      on
      Section 1.2 of the Disclosure Schedule
      (defined below),
      each
      of
      which obligation has been specifically reviewed and approved by Regent
      prior
      to
      repayment thereof, and (iii) payment of the legal and
      other
      expenses incurred
      by
      Regent
      in connection
      with the issuance of the Debentures ("Regent
      Expenses")
      as set
      forth in Section 7.7 below. The
      Company shall not use the proceeds from the issuance of the Debentures for
      the
      purchase, repurchase or
      cancellation of any securities of the Company, or the payment of any prior
      obligations of the Company or
      its
      directors, officers, shareholders or employees.

     

    2. Representations.
      Warranties and Covenants of the Company.
      The
      Company hereby represents,
      warrants and covenant to Regent that, except as set forth on the Disclosure
      Schedule (the "Disclosure
      Schedule")
      attached hereto as Exhibit
      C
      hereto,
      the statements in the following subsections in this
      Section 2 are all true and complete. The section numbers in the Disclosure
      Schedule will correspond to
      the
      section numbers in this Agreement. Whenever a representation or warranty herein
      is limited to the "knowledge"
      of the Company, knowledge shall mean the actual conscious knowledge of the
      executive officers
      of the Company, or what such executive officers should have known had such
      executive officers conducted
      due inquiry or investigation relating thereto, to the extent such inquiry or
      investigation would have been
      conducted by a reasonably prudent person in their capacity as an executive
      of
      the Company.

     

    2.1 Organization,
      Good Standing, Power and Qualification.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has all requisite corporate power
      and authority to
      carry
      on
      its business as presently conducted and as proposed to be conducted. The Company
      is in good standing and is duly qualified to transact business in each
      jurisdiction in
      which
      it
      does business, or in which
      the
      failure to so qualify would have a material adverse effect on the Company's
      business, financial condition or properties.

     

    2.2 Power.
      The
      Company has all requisite corporate power and authority (i) to own and operate
      its properties and assets and to
      carry
      on
      its business as presently conducted and as proposed
      to be conducted; (ii) to execute and deliver this Agreement, the Debentures,
      the
      Security Agreement and any other ancillary agreement required hereunder
      (collectively, the "Ancillary
      Agreements");
      (iii)
      to issue the Debentures (and the common stock issuable upon conversion thereof);
      and (iv) to carry out and perform the provisions of this Agreement and the
      Ancillary Agreements.

     

    
      
        
        

      

      
        (1)

        
          

        

      

      
        
        

      

    

     

    2.3 Authorization.
      All
      actions on the part of the Company, its officers, directors and shareholders
      necessary for the authorization, execution, delivery of this Agreement and
      the
      Security Agreement, the performance of all obligations of the Company hereunder
      and thereunder, and the authorization, issuance (or reservation of issuance),
      sale and delivery of the Debentures (and the common stock issuable upon
      conversion thereof) have been taken or will be taken prior to the Closing.
      This
      Agreement and the Ancillary Agreements, when executed and delivered by the
      Company, will constitute valid and binding obligations of the Company,
      enforceable in accordance with their respective terms, except (i) as limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium and other laws
      of
      general application affecting enforcement of creditors' rights generally; (ii)
      as limited by the laws related to the availability of specific performance,
      injunctive relief or other equitable remedies; and (iii) to the extent the
      indemnification provisions contained in this Agreement may be limited by
      applicable laws and principles of public policy.

     

    2.4 Valid
      Issuance of Debentures.
      The
      Debentures (including the common stock issuable upon conversion thereof), when
      issued, sold and delivered in accordance with the terms of this Agreement for
      the consideration expressed herein, will be duly authorized, validly issued,
      fully paid and nonassessable, and will be free of restrictions on transfer
      other
      than restrictions on transfer under this Agreement and the Ancillary Agreements
      and under applicable state and federal securities laws.

     

    2.5 Capitalization
      and Voting Rights.

     

    (a) The
      authorized capital of the Company consists, or will consist immediately prior
      to
      the Closing, of 100,000,000 shares of common stock, par value $.001 per share,
      18,551,284 shares of which have been issued and are outstanding, and 10,000,000
      shares of preferred stock, par value $.001 per share, none of which are issued
      and outstanding. The relative rights, privileges and preferences of capital
      stock are as stated in the Company's Certificate of Incorporation, a true and
      correct copy of which has been provided to Regent. The common stock issuable
      upon conversion of the Debentures on the date of issuance represents
      approximately twenty-two and 22/100ths percent (22.22%) of the outstanding
      common stock of the Company on an as-converted, fully-diluted basis, calculated
      on a pre-money valuation of the Company at the date of issuance of
      $3,500,000.

     

    (b) The
      outstanding shares of common stock have been duly authorized and validly issued,
      are fully paid and nonassessable, and were issued in accordance with the
      registration provisions of the Securities Act of 1933, as amended (the
      "Securities
      Act"),
      and
      any applicable state securities laws or pursuant to valid exemptions
      therefrom.

     

    (c) Except
      as
      otherwise provided for in the Disclosure Schedule, there are no outstanding
      options, warrants, rights (including conversion or preemptive rights) or
      agreements for the purchase or acquisition from the Company of its securities.
      Except as identified above, the Company has no equity purchase plan, option,
      warrant or other agreement or understanding granting rights to purchase the
      Company's securities with any other person or entity. The Company is not a
      party
      or subject to any agreement or understanding, and there is no agreement or
      understanding between any persons that affects or relates to the voting or
      giving of written consents with respect to any security or the voting by any
      shareholder or director of the Company.

     

    
      
        
        

      

      
        (2)

        
          

        

      

      
        
        

      

    

     

    (d)
      To
      the Company's knowledge, the Company has not violated any applicable federal
      or
      state securities laws or regulations in connection with the offer, sale or
      issuance of any of its equity securities or the offer, sale or issuance of
      any
      of its debt securities. There are no voting trusts, proxies or other agreements
      or understandings among the Company's shareholders or equity owners or any
      other
      person with respect to the voting, transfer or registration of the Company's
      equity securities or with respect to any other aspect of the Company's
      affairs.

     

    2.6
      Subsidiaries.
      The
      Company does not currently own or control, directly or indirectly, any interest
      in any other corporation, partnership, trust, joint venture, limited liability
      company, association, or other business entity. The Company is not a participant
      in any joint venture, partnership or similar arrangement.

     

    2.7 Compliance
      with Other Instruments.
      The
      Company is not in violation or default of any provision of its Certificate
      of
      Incorporation, Bylaws or its other charter documents or in any material respect
      of any provision of any mortgage, indenture, agreement, instrument, regulation
      or contract to which it is a party or by which it is bound or of any federal
      or
      state judgment, order, writ, decree, statute, rule or regulation applicable
      to
      the Company. The execution, delivery and performance by the Company of this
      Agreement and the Ancillary Agreements, and the consummation of the transactions
      contemplated hereby and thereby, will not result in any material violation
      or be
      in conflict with or constitute, with or without passage of time or giving of
      notice, either a default under any such provision or an event that results
      in
      the creation of any lien, charge or encumbrance upon any assets of the Company
      or the suspension, revocation, impairment, forfeiture or renewal of any material
      permit, license, authorization or approval applicable to the Company, its
      businesses or operations or any of its assets or properties.

     

    2.8 Governmental
      Consents, etc.
      No
      consent, approval, qualification, order or authorization of, or filing with,
      any
      federal, state or local governmental authority on the part of the Company is
      required in connection with the Company's execution, delivery or performance
      of
      this Agreement, the Ancillary Agreements or the offer, sale or issuance of
      the
      Debentures (or the issuance of the common stock issuable upon conversion
      thereof), except such filings as have been made prior to the Closing, or except
      any notices of sale required to be filed with the Securities and Exchange
      Commission under Regulation D of the Securities Act, or such post-Closing
      filings as may be required under applicable state securities laws, which will
      be
      timely filed within the applicable periods therefor.

     

    2.9 Agreements:
      Action.
      Except
      with respect to (i) the outstanding Bridge Loan Debenture dated December 14,
      2006 (as amended), in the original principal amount of $172,500 ("FCP
      Debenture")
      with
      Fountainhead Capital Partners ("FCP"), (ii) the Warrant to Purchase 50.22
      Membership Units of the Company (now 805,931 shares of the Company's common
      stock) dated December 15, 2006 (the "FCP
      Warrant"),
      (iii)
      the investment opportunity granted under the Option Agreement with FCP dated
      December 14, 2006 ("FCP
      Option"),
      or as
      specifically disclosed in the Disclosure Schedule:

     

    (a)
      There
      are no agreements, understandings or proposed transactions between the Company
      and any of its officers, directors, shareholders, affiliates or any affiliate
      thereof.

     

    
      
        
        

      

      
        (3)

        
          

        

      

      
        
        

      

    

     

    (b) There
      are
      no contracts, agreements, instruments, leases, commitments, understandings,
      proposed transactions, judgments, orders, writs or decree to which the Company
      is a party or by which it is bound that may involve (i) obligations (contingent
      or otherwise) of, or payments to, the Company in excess of $25,000; (ii) the
      granting of any rights affecting the development, manufacture, licensing,
      marketing, sale or distribution of the Company's products and services; (iii)
      the guarantee or indemnity of any indebtedness of any other person, firm or
      entity; (iv) the license of any patent, copyright, trade secret or other
      proprietary right to or from the Company; or (v) the indemnification by the
      Company with respect to infringements of proprietary rights.

     

    (c) The
      Company has not (i) declared or paid any dividend or distribution upon or with
      respect to any class or series of its equity securities, (ii) incurred any
      indebtedness from money borrowed or any other liabilities individually in excess
      of $10,000 or, in the case of indebtedness and/or liabilities individually
      less
      than $10,000, in excess of $25,000 in the aggregate, (iii) made any loans or
      advances to any person, other than ordinary advances for travel expenses, or
      (iv) sold, exchanged or otherwise disposed of any of its assets or rights except
      in the ordinary course of its business.

     

    (d) For
      the
      purposes of subsections (b) and (c) above, all indebtedness, liabilities,
      agreements, understandings, instruments, contracts and proposed transactions
      involving the same person or entity (including persons or entities the Company
      has reason to believe are affiliated therewith) shall be aggregated for the
      purpose of meeting the minimum dollar amounts for each
      subsection.

     

    2.10 Obligations
      to Related Parties.
      Except
      as identified on the Disclosure Schedule, no employee, officer, director,
      shareholder or other equity owner of the Company or member of his, her or its
      immediate family is indebted to the Company, nor is the Company indebted (or
      committed to make loans or extend or guarantee credit) to any of them other
      than
      (i) for payment of salary for bona fide services rendered; (ii) reimbursement
      for reasonable expenses incurred on behalf of the Company; and (iii) for other
      standard employee benefits generally made available to all employees. No
      employee, officer or director of the Company and, to the Company's a knowledge,
      no shareholder of the Company or any of such shareholder's immediate family,
      has
      any direct or indirect ownership in any entity with which the Company is
      affiliated or with which the Company has a business relationship, or any entity
      that competes with the Company, except that employees, officers, directors
      or
      shareholders of the Company and members of their immediate family may own stock
      in publicly traded companies that may compete with the Company. No employee,
      officer, director or shareholder of the Company, or any member of their
      immediate families, is, directly or indirectly, interested in any contract
      with
      the Company (other than contracts that relate to any such person's ownership
      of
      an equity interest in the Company). The Company has not granted rights or
      licenses to any other entity or person to sell its products or services to
      any
      other person or entity and is not bound by any agreement that affects the
      Company's exclusive rights to market or sell its products or
      services.

     

    2.11 Title
      to Properties and Assets.
      The
      Company owns its assets free and clear of all mortgages, liens, claims, and
      encumbrances other than (i) liens securing the FCP Debenture, (ii) liens for
      current taxes not yet delinquent, (iii) for liens imposed by law and incurred
      in
      the ordinary course of business for obligations not past due to carriers,
      warehousemen, laborers, materialmen and the like, (iv) for liens in respect
      of
      pledges or deposits under workers' compensation laws or similar legislation
      or
      (v) for minor defects in title, none of which, individually or in the aggregate,
      materially interferes with the use of such property. With respect to the
      property and assets it leases, the Company is in compliance with such leases,
      each lease is in full force and effect and is enforceable in accordance with
      its
      terms, holds a valid leasehold interest free of any liens, claims, or
      encumbrances, subject to clauses (i) – (v) above, and there exists no
      default or other condition which, with the giving of notice, the passage of
      time, or both, could
      become a default under any lease. There are no outstanding options or rights
      of
      first refusal with respect to the purchase or use of any of the Company's real
      property, any portion thereof or interest thereon.

     

    
      
        
        

      

      
        (4)

        
          

        

      

      
        
        

      

    

     

    2.12 Intellectual
      Property.
      The
      Company owns or possesses sufficient legal rights to all patents, trademarks,
      service marks, trade names, copyrights, trade secrets, licenses, information,
      and proprietary rights and processes (collectively, "Intellectual
      Property")
      necessary for its business as now conducted and as proposed to be conducted
      without any infringement of the rights of others. The Disclosure Schedule
      contains a complete list of the Company's patents, trademarks, copyrights and
      domain names and pending patent, trademark and copyright applications. There
      are
      no outstanding options, licenses, or agreements of any kind relating to the
      Company's Intellectual Property with the exception of agreements for the sale
      or
      license of the Company's products or services in the ordinary course of
      business, nor is the Company bound by or a party to any options licenses or
      agreements of any kind with respect to the Intellectual Property of any other
      person or entity with the exception of shrink-wrap, click-wrap or similar widely
      available commercial end-user licenses. The Company has not received any
      communications alleging that the Company has violated or, by conducting its
      business as presently proposed, would violate any of the Intellectual Property
      of any other person or entity. The Company is not aware that any of its
      employees is obligated under any contract (including licenses, covenants or
      commitments of any nature) or other agreement, or subject to any judgment,
      decree or order of any court or administrative agency, that would interfere
      with
      the Company's business as presently proposed to be conducted. It is not or
      will
      not be necessary for the Company to utilize any inventions of any of its
      employees (or people they currently intend to hire) made prior to their
      employment with the Company. The Company is not aware of any violation or
      infringement by a third party of any of the Company's Intellectual
      Property.

     

    2.13 Employees;
      Employee Benefit Plans.
      The
      Company has complied in all material respects with all applicable state and
      federal equal opportunity and other laws related to employment. To the Company's
      knowledge, no employee of the Company is or will be in violation of any
      judgment, decree, or order, or term of any employment contract, patent
      disclosure agreement, or other contract or agreement relating to the
      relationship of any such employee with the Company, or any other party because
      of the nature of the business presently conducted or presently proposed to
      be
      conducted by the Company. The Company has no "Employee Benefit Plan" as defined
      in the Employment Retirement Income Security Act of 1974, as amended. The
      Company is not aware of any officer or key employee, or any group of key
      employees, that intends to terminate their employment with the Company, nor
      does
      the Company have a present intention to terminate the employment of any of
      them.

     

    2.14 Litigation.
      There
      is no claim, action, suit, proceeding, arbitration, complaint, charge or
      investigation pending or currently threatened against the Company or any
      officer, director or key employee of the Company, nor is there any reasonable
      basis therefore. Neither the Company nor any of its officers or directors,
      is a
      party or is named as subject to the provisions of any order, writ, injunction,
      judgment or decree of any court or government agency or instrumentality (in
      the
      case of officers or directors, such as would affect the Company). There is
      no
      action, suit, proceeding or investigation by the Company pending or which the
      Company intends to initiate. The foregoing includes, without limitation, any
      action, suit, proceeding or investigation pending or threatened involving the
      prior employment of any of the Company's employees, their services provided
      in
      connection with the Company's business, or any information or techniques
      allegedly proprietary to any of their former employers, or their obligations
      under any agreements with prior employers.

     

    2.15 Rights
      of Registration.
      Other
      than as described in Section 6.1 herein, the Company has not obligated itself
      to, is not under any current obligation to, and will not obligate itself to
      register under the Securities Act any of its currently outstanding securities
      or
      any securities issuable upon exercise or conversion of its currently outstanding
      securities.

     

    
      
        
        

      

      
        (5)

        
          

        

      

      
        
        

      

    

     

    2.16 Financial
      Statements.
      The
      Company has delivered to Regent
      its audited financial statements as of December 31, 2006 and its unaudited
      financial statements as of September 30, 2007, respectively (collectively,
      the
      "Financial
      Statements").
      The
      Financial Statements have been prepared in accordance with generally accepted
      accounting principles applied on a consistent basis throughout the periods
      indicated. The Financial Statements fairly present in all material respects
      the
      financial condition and operating results of the Company as of the dates, and
      for the periods, indicated therein, subject in the case of the unaudited
      Financial Statements to normal year-end audit adjustments, which are not
      individually or in the aggregate expected to be material. Except as set forth
      in
      the Financial Statements, the Company has no liabilities or obligations,
      contingent or otherwise, other than (i) liabilities incurred in the ordinary
      course of business subsequent to September 30, 2007 (ii) obligations under
      contracts and commitments incurred in the ordinary course of business and (iii)
      liabilities and obligations of a type or nature not required under generally
      accepted accounting principles to be reflected in the Financial Statements,
      which, in all such cases, individually and in the aggregate are not material
      to
      the financial condition or operating results of the Company. The Company is
      not
      a guarantor or indemnitor of any indebtedness of any other person, firm or
      entity. The Company maintains and will continue to maintain a standard system
      of
      accounting established and administered in accordance with generally accepted
      accounting principles. The Company has no liability to any of its equity owners
      or to affiliates of such equity owners.

     

    2.17 Brokers
      or Finders.
      Except
      as otherwise provided in the Disclosure Schedule, the Company has not incurred,
      and will not incur, directly or indirectly, as a result of any action taken
      by
      the Company, any liability for brokerage or finders' fees or agents' commissions
      or any charges in connection with this Agreement, the Ancillary Agreements
      or
      the transactions contemplated hereby and thereby.

     

    2.18 Changes.
      Since
      September 30, 2007 there has not been:

     

    (a) any
      change in the assets, liabilities, financial condition or operating results
      of
      the Company from that reflected in the unaudited Financial Statements dated
      September 30, 2007, except changes in the ordinary course of business that
      have
      not been, in the aggregate, material adverse;

     

    (b) any
      damage, destruction or loss, whether or not covered by insurance;

     

    (c) any
      waiver or compromise by the Company of a valuable right or of a material
      debt owed to it;

     

    (d) any
      satisfaction or discharge of any lien, claim, or encumbrance or payment of
      any
      obligation by the Company, except in the ordinary course of business that is
      not
      material to the Company's business, financial condition or
      properties;

     

    (e) any
      material change to a material contract or agreement by which the Company or
      any
      of its assets is bound or subject;

     

    (f) any
      material change in any compensation arrangement or agreement with any employee,
      officer, director or shareholder of the Company;

     

    
      
        
        

      

      
        (6)

        
          

        

      

      
        
        

      

    

     

    (g) any
      resignation or termination of employment of any officer or key employee of
      the
      Company, and the Company, to its knowledge, does not know of the impending
      resignation or termination of employment of any such officer or key
      employee;

     

    (h) any
      mortgage, pledge, transfer of a security interest in, or lien, created by the
      Company, with respect to any of its properties or assets, except liens for
      taxes
      not yet due or payable;

     

    (i) any
      loans
      or guarantees made by the Company to or for the benefit of its employees,
      officers, directors or equity owners, or any shareholders of their immediate
      families, other man travel advances and other advances made in the ordinary
      course of business;

     

    (j)
      any
      declaration, setting aside or payment or other distribution in respect of any
      of
      the Company's securities, or any direct or indirect redemption, purchase, or
      other acquisition of any of such securities by the Company; 

     

    (k)
      any
      sale, assignment or transfer of any of the Company's Intellectual Property;

     

    (1)
      receipt of notice that there has been a loss of, or order cancellation by,
      any
      customer of the Company;

     

    (m)
      any
      other event or condition of any character that would result in a material
      adverse effect on the Company's business, financial condition or properties;
      or

     

    (n)
      any
      agreement or commitment by the Company to do any of the things described in
      this
      Section 2.18.

     

    2.19 Tax
      Returns. Payments and Elections.
      The
      Company has filed all tax returns and reports as required by law (including,
      but
      not limited to all Federal and state income tax returns, and all state sales
      and
      use tax returns). These returns and reports are true and correct in all material
      respects. The Company has paid all taxes and other assessments due, except
      those
      contested by it in good faith and listed in the Disclosure Schedule. The
      provision for taxes of the Company as shown in the Financial Statements is
      adequate for taxes dues or accrued as of the date thereof The Company has not
      made any elections pursuant to the Code (or other elections that related solely
      to methods of accounting, depreciation or amortization) that would have a
      material adverse effect on the Company's business, financial condition or
      properties.

     

    2.20 Insurance.
      The
      Disclosure Schedule in Section 2.20 lists all of the insurance policies and
      fidelity bonds covering the assets, business, equipment, properties, operations,
      employees, officers and directors of the Company, all of which policies are
      currently in effect. The Company has furnished to Regent true and complete
      copies of all insurance policies and fidelity bonds listed in the applicable
      disclosure on the Schedule. There is no claim by the Company pending under
      any
      of such policies or bonds as to which coverage has been questioned, denied
      or
      disputed by the underwriters of such policies or bonds. The current and
      historical limits of liability under such policies or bonds have not been
      exhausted and/or are not impaired. There is no threatened termination of, or
      premium increase with respect to, any of such policies or bonds, or any notice
      that such policies or bonds are no longer in full force and effect or that
      the
      issuer thereof is no longer willing or able to perform its obligations
      thereunder. None of the insurance policies or bonds listed in the Disclosure
      Schedule will terminate or lapse by reason of the consummation of the
      transactions contemplated by this Agreement

     

    
      
        
        

      

      
        (7)

        
          

        

      

      
        
        

      

    

     

    2.21 Proprietary
      Information and Invention Assignment Agreements.
      Each
      current and former employee, consultant and officer of the Company has executed
      a proprietary information and inventions assignment agreement in the form or
      forms provided to Regent. No current or former employee has excluded works
      or
      inventions from his or her assignment of inventions pursuant to such employee's
      agreement. The Company is not aware that any of its employees is in violation
      thereof.

     

    2.22 Permits.
      The
      Company has all franchises, permits, licenses and any similar authority
      necessary for the conduct of its business as presently conducted by it, the
      lack
      of which would have a material adverse effect on the Company's business,
      properties or financial condition, and the Company believes it can obtain,
      without undue expense or burden, any similar authority for the expanded conduct
      of its business as presently proposed to be expanded. The Company is not in
      default in any respect under any of such franchises, permits, licenses or other
      similar authority.

     

    2.23 Environmental
      and Safety Laws.
      The
      Company has complied in all material respects with all Environmental Laws.
      The
      Company has no Environmental Liabilities. No notice, notification, demand,
      request for information, citation, summons or order has been issued, no
      complaint has been filed, no penalty has been assessed and no investigation
      or
      review is pending or, to the Company's knowledge, threatened, by any
      governmental or other entity with respect to any alleged violation by the
      Company of any Environmental Law. There have been no environmental
      investigations, studies, audits, tests, reviews or other analyses conducted
      by
      or for the Company, or to the Company's knowledge, relating to any property
      or
      facility now or previously owned or leased by the Company that have not been
      delivered to Regent.

     

    The
      following terms, as used in this Section 2.23 have the following meanings;
      "Environmental
      Law"
      means
      any and all federal, state, local and foreign statutes, laws (including common
      or case law), regulations, ordinances, rules, judgments, judicial decisions,
      orders, decrees, codes, plans, injunctions, or governmental restrictions
      relating to the protection of human health or safety or the environment or
      to
      emissions, discharges or releases of any Hazardous Substance into the
      environment, or otherwise relating to the manufacture, processing, distribution,
      use, treatment, storage, disposal, transport or handling of any Hazardous
      Substance or the containment, removal or remediation thereof. "Environmental
      Liabilities"
      means
      any and all liabilities arising in connection with or in any way relating to
      the
      past or present business of the Company, whether contingent or fixed, actual
      or
      potential, known or unknown, which (i) arise under or relate to matters governed
      by Environmental Law or arise in connection with or relate to any matter
      disclosed or required to be disclosed in the Disclosure Schedule as applicable
      and (ii) arise from or relate in any way to actions occurring or conditions
      existing before the Closing. "Hazardous
      Substance"
      means
      any and all pollutants and contaminants, and any and all toxic, caustic,
      radioactive or otherwise hazardous materials, substances or wastes that are
      regulated under any Environmental Law, and includes, without limitation,
      petroleum and its derivatives and by-products, and any other
      hydrocarbons.

     

    2.24
      Product
      Liability.
      The
      Company has no liability, whether known or unknown, asserted or unasserted,
      absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or
      due
      or to become due (collectively, a "Liability")
      (and
      there is no basis for any present or future action, suit, proceeding, hearing,
      investigation, charge, complaint, claim or demand against it giving rise to
      any
      Liability) arising out of any injury to individuals or property as a result
      of
      the ownership, possession or use of any product sold, leased or delivered by
      the
      Company.

     

    2.25
      Disclosure.
      The
      Company has provided to Regent all the information reasonably available to
      it without undue expense that Regent has requested for deciding whether to
      provide the funds related to the Debentures and all information that the Company
      reasonably believes necessary to enable Regent to make such decision.
      Neither this Agreement, the Ancillary Agreements, nor any other written
      statements or certificates made or delivered in connection herewith, when taken
      as a whole, contain any untrue statement of material fact or omits to state
      a
      material fact necessary to make the statements contained herein or therein
      not
      misleading in light of the circumstances under which they were
      made.

     

    
      
        
        

      

      
        (8)

        
          

        

      

      
        
        

      

    

     

    3.
      Representations,
      Warranties and Covenants of Regent.
      Regent
      hereby represents, warrants and covenants to the Company as
      follows:

     

    3.1 Power:
      Authorization.
      Regent
      has all requisite power and authority to execute and deliver this Agreement
      and
      the Ancillary Agreements to which it is a party. This Agreement and the
      Ancillary Agreements to which it is a party, when executed and delivered by
      Regent, will constitute valid and legally binding obligations of Regent,
      enforceable in accordance with their respective terms, except (i) as limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
      conveyance, and any other laws of general application affecting enforcement
      of
      creditors' rights generally, and as limited by laws relating to the availability
      of specific performance, injunctive relief, or other equitable remedies, or
      (ii)
      to the extent the indemnification provisions contained in this Agreement may
      be
      limited by applicable laws and principles of public policy.

     

    3.2 Purchase
      Entirely for Own Account.
      This
      Agreement is made with Regent in reliance upon Regent's representation
      to the Company, which by Regent's execution of this Agreement, Regent
      hereby confirms, that the Debentures (and the common stock issuable upon
      conversion thereof), will be acquired for investment for Regent's own account,
      not as a nominee or agent, and not with a view to the resale or distribution
      of
      any part thereof, and that Regent has no present intention of selling,
      granting any participation in, or otherwise distributing the same.

     

    3.3 Reliance
      upon Regent's Representations. Regent
      understands that the Debentures and the common stock acquired upon conversion
      thereof not be registered under the Securities Act on the ground that the sale
      provided for in this Agreement and the issuance of the common stock is exempt
      from registration under the Securities Act pursuant to valid exemptions thereof,
      and that the Company's reliance upon such exemption is predicated on Regent's
      representations set forth herein.

     

    3.4 Disclosure
      of Information.
      Regent
      has had an opportunity to ask questions of the Company regarding the terms
      and
      conditions of the issuance of the Debentures and the Company's business,
      financial condition, properties and prospects and to obtain additional
      information (to the extent the Company possessed such information or acquire
      it
      without unreasonable effort or expense) necessary to verify the accuracy of
      any
      information furnished to Regent or to which Regent had access. The foregoing,
      however, does not limit or modify the representations, warranties and covenants
      of the Company in Section 2 of this Agreement or the right by Regent to rely
      thereon.

     

    3.5 Accredited
      Investor.
      Regent
      is an "accredited investor" as defined in Rule 501(a) of Regulation D
      promulgated under the Securities Act.

     

    3.6 Restricted
      Securities.
      Regent
      understands that the Debentures and the common stock issuable upon conversion
      of
      the Debentures, are characterized as "restricted securities" under the federal
      securities laws inasmuch as they are being acquired from the Company in a
      transaction not involving a public offering and that under such federal
      securities laws and applicable regulations the Debentures and the common stock
      issuable upon conversion thereof may be resold without registration only in
      certain circumstances. In this regard, Regent represents that it is aware of
      the
      provisions of Rule 144 promulgated under the Securities Act which permit limited
      resale of securities purchased in a private placement subject to the
      satisfaction of certain conditions, including, among other things, the existence
      of a public market for the Debentures and the common stock issuable upon
      conversion thereof to availability of
      certain public information about the Company, the resale occurring not less
      than
      one year after a party has purchased and paid for the security to be sold,
      the
      sale being effected through a "broker's transaction" or in transactions with
      a
      "market maker" and the number of shares being sold during any three-month period
      not exceeding specified limitations.

     

    
      
        
        

      

      
        (9)

        
          

        

      

      
        
        

      

    

     

    3.7 Brokers
      or Finders.
      The
      Company has not, and will not, incur, directly or indirectly, as a result of
      any
      action taken by Regent, any liability for brokerage or finders' fees or agents'
      commissions or similar charges in connection with this Agreement or the
      transactions contemplated hereby, other than the commitment and related fees
      payable to Regent under this Agreement.

     

    3.8 Legends.
      Regent
      understands that the Debentures and the common stock issued upon conversion
      thereof, may bear one or all of the following legends:

     

    (a) THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH
      A
      VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH
      TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
      THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT
      SUCH
      REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

     

    (b) Any
      legend required by the securities laws of any state to the extent such laws
      are
      applicable to shares represented by the certificate so legended.

     

    4.
      Conditions
      to Closing of Regent.
      The
      obligations of Regent under Section 1 of this Agreement are subject to the
      fulfillment on or before the Closing of each of the following conditions, the
      waiver of which shall not be effective against Regent if it does not consent
      thereto:

     

    4.1 Representations
      and Warranties Correct.
      The
      representations and warranties of the Company contained in Section 2 shall
      be
      true and correct on and as of the Closing with the same effect as though such
      representations and warranties had been made on and as of the date of the
      Closing.

     

    4.2 Covenants.
      All
      covenants, agreements and conditions contained in this Agreement to be performed
      by the Company on or prior to the Closing shall have been performed or complied
      with in all material respects.

     

    4.3 Debt.
      At
      Closing, total liabilities of the Company shall not exceed $753,278 and shall
      be
      of the type satisfactory to Regent, in its sole discretion. Other than disclosed
      in the Disclosure Schedule, the Company shall have no liabilities to the
      Company's shareholders or equity owners or affiliates of such shareholders,
      except as contemplated by this Agreement or the FCP Debenture.

     

    4.4
      Assignment
      of FCP Warrant and Option Rights.
      FCP
      shall have executed an Assignment of Rights in the Form of Exhibit
      D
      hereto,
      pursuant to which FCP shall assign to Regent an undivided fifty percent (50%)
      interest in (i) the FCP Warrant, and (ii) the FCP Option. If requested by Regent
      (including a request made subsequent to Closing), the Company will re-execute
      substitute and separate warrants and option agreements, pursuant to which each
      of Regent and FCP will have stand-alone agreements with terms identical to
      the
      existing FCP Warrant and FCP Option (with the exception that each such
      substitute agreement will cover 50% of the aggregate original
      interests).

     

    
      
        
        

      

      
        (10)

        
          

        

      

      
        
        

      

    

     

    4.5
Additional
      Investment by FCP — Intracreditor Agreement.
      FCP shall concurrently invest in the Company a minimum of $150,000 at the time
      of issuance of each Debenture to Regent, for a total additional investment
      of at
      least $300,000. Such investment by FCP shall be made on terms identical to
      the
      Debentures (other than as to amount) pursuant to documentation substantially
      identical to the documentation being executed in connection with the Debentures;
      provided, FCP shall have the right to secure another investor for up to $100,000
      of FCP's additional $300,000 obligation.

     

    4.6 Stock
      Option Plan.
      The
      Company, with the approval of Regent, will establish a Stock Option Plan,
      pursuant to which an amount not exceeding 10% of the Company's issued and
      outstanding common stock (on a fully diluted basis) will be reserved for
      issuance pursuant to either qualified or nonqualified options that may be
      granted to employees, officers, directors and consultants of the
      Company.

     

    4.7 Satisfaction
      of Due Diligence.
      Regent
      shall have been satisfied, in its sole discretion, with the results of its
      due
      diligence investigation related to the Company. Without limiting the generality
      of the foregoing, Regent shall be satisfied that the Company's legal counsel
      accounting firm and other necessary experts can accomplish the filing of the
      Registration Statement in accordance with Section 6.1
      hereof.

     

    4.8 Debentures
      and Security Agreement.
      The
      Debentures shall have been issued by the Company and the Company shall have
      executed and delivered the Security Agreement and all other documents
      contemplated by this Agreement.

     

    4.9 Lock-Up
      Agreement.
      Each of
      Kenneth Coviello, Heather Jensen and Sawmill Trust shall have entered into
      a
      Lock-Up Agreement in the form of Exhibit
      F
      hereto,
      pursuant to which such individuals shall have agreed to not sell or otherwise
      transfer any shares of common stock in the Company held by them for a period
      of
      one year following Closing, and thereafter such individuals can sell up to
      twenty-five percent (25%) of their common stock in the Company in each of the
      succeeding two years following Closing, after which time the Lock-Up Agreement
      will expire.

     

    4.10 Material
      Adverse Effect.
      There
      has occurred no fact, event or circumstance which has had, or would reasonably
      be expected to have, a material adverse effect on the assets, liabilities,
      financial condition or operating results of the Company, except changes in
      the
      ordinary course of business that have not been, in the aggregate, materially
      adverse on the Company's business, financial condition or
      properties.

     

    5. Conditions
      to Closing of the Company.
      The
      obligations of the Company to Regent at the Closing are subject to the
      fulfillment on or before the Closing of each of the following conditions by
      Regent, unless otherwise waived:

     

    5.1 Representations
      and Warranties Correct.
      The
      representations and warranties of Regent contained in Section 3 shall be
      true on and as of the Closing with the same effect as though such
      representations and warranties had been made on and as of the date of
      Closing.

     

    5.2 Qualifications.
      All
      authorizations, approvals or permits, if any, of any governmental authority
      or
      regulatory body of the United States or of any state that are required in
      connection with the lawful issuance and sale of the Debentures and underlying
      shares of common stock pursuant to this Agreement shall be obtained and
      effective as of the Closing.

     

    
      
        
        

      

      
        (11)

        
          

        

      

      
        
        

      

    

     

    6. Post-Closing
      Covenants of the Company.

     

    6.1
      Registration
      Statement.
      Within
      sixty (60) days from the date of this Agreement, the Company shall file a
      registration statement on Form S-l, SB-2, or other applicable form ("Registration
      Statement"), with the Securities and Exchange Commission ("SEC"), which
      Registration Statement shall register for sale all common stock which may be
      issuable upon conversion of the Debentures. The Company will thereafter use
      its
      commercially reasonable efforts to have such registration statement declared
      effective by the SEC within one hundred eighty (180) days from the date hereof.
      For purposes hereof, the Company will be deemed to be using its "commercially
      reasonable efforts", provided it fully and appropriately responds to all
      comments from the SEC within ten (10) business days of receipt thereof without
      any undue hardship or unreasonable expenses, and diligently continues to seek
      effectiveness of such registration statement. The Company shall take such action
      to have the Registration Statement declared effective by the SEC within three
      (3) business days following written confirmation from the SEC that it either
      will not review the Registration Statement or that it has no further comment
      on
      the Registration Statement. For the avoidance of any doubt, that the Company
      shall not be in breach of this Section 6.1 for any delay arising from (i) issues
      raised by the SEC relating to Rule 415 of the Securities Act, as amended, or
      to
      the structure of the sale and resale of the shares, (ii) information required
      from person or entities other than the Company, or (iii) issues resulting from
      or relating to acts or omissions of persons or entities other than the
      Company.

     

    6.2 Protection
      of Minority Rights.
      So long
      as either Debenture is outstanding or Regent or its affiliates shall continue
      to
      own at least 10% of the outstanding voting equity securities of the Company,
      then without the prior approval of Regent or its affiliates, as applicable,
      such
      approval not to be unreasonably withheld, the Company will not undertake any
      of
      the actions listed on Schedule
      6.2
      hereto.

     

    6.3 Financial
      Statements.
      The
      Company will deliver to Regent the following financial information: (i)
      audited annual financial statements within 90 days of the close of each fiscal
      year of the Company; (ii) unaudited monthly cash flow statements within 30
      days
      after the end of each month; (iii) quarterly financial statements within 45
      days, of the end of each fiscal quarter of the Company; (iv) a proposed budget
      for each fiscal year within 30 days prior to the beginning of each fiscal year
      of the Company; and (v) such other financial information as Regent may
      reasonably request.

     

    7.
      Miscellaneous.

     

    7.1 Survival
      of Warranties.
      The
      representations, warranties and covenants of the Company and Regent
      contained herein or made pursuant to this Agreement (i) shall survive the
      execution and delivery of this Agreement and the Closing and shall not terminate
      and (ii) shall in no way be affected by any investigation of the subject matter
      thereof made by or on behalf of Regent.

     

    7.2 Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      assigns of the parties. Nothing in this Agreement, express or implied, is
      intended to confer upon any party other than the parties hereto or their
      respective successors and assigns any rights, remedies, obligations, or
      liabilities under or by reason of this Agreement, except as expressly provided
      in this Agreement.

     

    7.3 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without regard to conflict of laws
      rules.

     

    7.4 Counterparts;
      Facsimile.
      This
      Agreement may be executed and delivered by facsimile signature and in two or
      more counterparts, each of which shall be deemed an original, but all of which
      together shall constitute one and the same instrument.

     

    
      
        
        

      

      
        (12)

        
          

        

      

      
        
        

      

    

     

    7.5 Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    7.6 Notices.
All
      notices and other communications given or made pursuant to this Agreement shall
      be in writing and shall be deemed effectively given: (i) upon personal delivery
      to the party to be notified, (ii) when sent by confirmed electronic mail or
      facsimile if sent during normal business hours of the recipient, and if not
      so
      confirmed, then on the next business day,(iii)
      five (5) days after having been sent by registered or certified mail, return
      receipt requested, postage prepaid, or (iv) one (1) day after deposit with
      a
      nationally recognized overnight courier, specifying next day delivery, with
      written verification of receipt. All communications shall be sent to the
      respective parties at their address as set forth on the signature page, or
      to
      such e-mail address, facsimile number or address as subsequently modified by
      written notice given in accordance with this Section 6.6. If notice is given
      to
      Regent, a copy-shall also be sent to Johnson, Jones, Domblaser, Coffman &
Shorb, P.C., Attn: Kenneth Domblaser, 15 West Sixth Street, Suite 2200, Bank
      of
      America Center, Tulsa, Oklahoma 74119 and if notice is given to the Company,
      a
      copy shall also be given to Benjamin A. Tan Esq., Sichenzia Ross Friedman
      Ference LLP, 61 Broadway, 32nd Floor, New York, NY 10006.

     

    7.7 Fees
      and Expenses.
      At the
      Closing, the Company shall pay up to $20,000 of the Regent Expenses, which
      shall
      consist of the reasonable fees and expenses of incurred by Regent in connection
      with this transaction, including the reasonable fees and expenses of Johnson,
      Jones, Domblaser, Coffman & Shorb, P.C., the counsel for
      Regent.

     

    7.8 Attorney's
      Fees.
      If any
      action at law or in equity (including arbitration) is necessary to enforce
      or
      interpret the terms of any of this Agreement or the Ancillary Agreements, the
      prevailing party shall be entitled to reasonable attorney's fees, costs and
      necessary disbursements in addition to any other relief to which such party
      may
      be entitled.

     

    7.9 Amendment.
      Except
      as expressly provided herein, neither this Agreement nor a term of this
      Agreement may be amended, waived discharged or terminated other than by a
      written instrument signed by the party against whom enforcement of any such
      amendment, waiver, discharge or termination is sought. Any such amendment,
      waiver, discharge or termination effected in accordance with this Section 7.9
      shall be binding upon each holder of any securities purchased under this
      Agreement at the time outstanding (including securities into which such
      securities have been converted or exchanged or for which such securities have
      been exercised), each future holder of all such securities and the
      Company.

     

    7.10 Severability.
      If any
      provision of this Agreement becomes or is declared by a court of competent
      jurisdiction (or arbitrator) to be illegal, unenforceable or void, the portions
      of such provision, or such provision in its entirety, to the extent necessary,
      shall be severed from this Agreement, and such court (arbitrator) will replace
      such illegal, void or unenforceable provision with a valid and enforceable
      provision that will achieve, to the extent possible, the same economic, business
      and other purposes of the illegal, void, or unenforceable provision. The balance
      of this Agreement shall be enforceable in accordance with its
      terms.

     

    
      
        
        

      

      
        (13)

        
          

        

      

      
        
        

      

    

     

    7.11 Indemnification.

     

    (a)
      The
      Company, without limitation as to time, assumes liability for and agrees to
      indemnify, defend and hold harmless Regent and its officers,
      managers/directors, members, employees, agents and affiliates (collectively,
      "Indemnified
      Persons")
      from
      and against, all losses, claims, damages, liabilities, obligations, fines,
      penalties, judgments, settlements, costs, expenses and disbursements (including
      reasonable attorneys' fees and expenses) (collectively, "Losses")
      (i)
      arising out of or related to any breach or inaccuracy of any representation
      or
      warranty of the Company contained in this Agreement, the Debentures, the
      Security Agreement or any other agreement executed in connection herewith or
      therewith (ii) any non-fulfillment or breach of any covenant or agreement of
      the
      Company contained in this Agreement, the Debentures, the Security Agreement
      or
      any other agreement executed in connection herewith or therewith, or (iii)
      incurred in connection with any suit, action, proceeding, claim, investigation,
      liability or obligation (an "Action
      or Proceeding")
      against the Company or any Indemnified Person arising out of or in connection
      with this Agreement and Ancillary Agreements, any other document or instrument
      executed pursuant hereto, or the transactions contemplated herein or therein,
      other than Losses resulting that are finally determined in such Action or
      Proceeding to be primarily and directly a result of (1) the gross negligence
      of
      such Indemnified Person, (2) the intentional misconduct or knowing violation
      of
      applicable law by such Indemnified Person, or (3) a transaction from which
      such
      Indemnified Person received an improper personal benefit. The Company agrees
      to
      reimburse each Indemnified Person promptly for all such Losses as they are
      incurred by such Indemnified Person. The obligations of the Company to each
      Indemnified Person under this Section 7.11 will be separate and distinct
      obligations and will survive any transfer of securities by Regent and the
      expiration or termination of this Agreement. The Company and Regent intend
      that
      the Indemnified Persons be indemnified from liability for their own negligence
      pursuant to this Section 7.11.

     

    (b) If
      and to
      the extent any portion of this Section 7.11 is unenforceable for any reason,
      the
      Company agrees to make the maximum contribution to the payment and satisfaction
      of any Loss for which indemnification is not provided for in this Section
      7.11.

     

    (c) Any
      indemnification obligations pursuant to this Section 7.11 shall be paid by
      wire
      transfer, in immediately available funds, to an account designated in writing
      by
      the Indemnified Person within fifteen (15) days after the determination thereof.
      Any such indemnification payments shall include interest at ten percent (10%)
      per annum calculated on the basis of the actual number of days elapsed over
      360,
      from the date any such Loss is suffered or sustained to the date of payment.
      The
      amount of any Loss for which indemnification is provided for in this Section
      6.13 shall be net of any amounts actually recovered by the indemnifying party
      under insurance policies with respect to such Loss.

     

    7.12 Entire
      Agreement.
      This
      Agreement, the exhibits attached hereto and the Disclosure Schedule, and the
      other documents delivered pursuant to this Agreement, including but not limited
      to the Debentures constitute the full and entire understanding and agreement
      between the parties with respect to the subject matter hereof, and supersede
      all
      prior agreements and understandings, whether written or oral, relating to such
      subject written in any way, including that certain Term Sheet among the parties
      hereto, and no party shall be liable or bound to any other party in any manner
      by any warranties, representations or covenants except as specifically set
      forth
      herein or therein.

     

    7.13 Dispute
      Resolution.
      Any
      unresolved controversy or claim arising out of or relating to this Agreement,
      except as (i) otherwise provided in this Agreement, or (ii) any such
      controversies or claims arising out of either party's intellectual property
      rights for which a provisional remedy or equitable relief is sought, shall
      be
      submitted to arbitration by one arbitrator mutually agreed upon by the parties,
      and if no agreement can be reached within thirty (30) days after names of
      potential arbitrators have been proposed by the American Arbitration Association
      (the "AAA"), then by one arbitrator having reasonable experience in
      corporate finance transactions of the type provided for in this Agreement and
      who is chosen by the AAA. The arbitration shall take place in New York City,
      in
      accordance with the AAA rules then in effect, and judgment upon any award
      rendered in such arbitration will be binding and may be entered in any court
      having jurisdiction thereof. There shall be limited discovery prior to the
      arbitration hearing as follows: (a) exchange of witness lists and copies of
      documentary evidence and documents relating to or arising out of the issues
      to
      be arbitrated, (b) depositions of all party witnesses and (c) such other
      depositions as may be allowed by the arbitrators upon a showing of good cause.
      Depositions shall be conducted in accordance with the
      Oklahoma Code of Civil Procedure, the arbitrator shall be required to
      provide in writing to the parties the basis for the award or order of such
      arbitrator, and a court reporter shall record all hearings, with such record
      constituting the official transcript of such proceedings. The prevailing party
      shall be entitled to reasonable attorney's fees, costs, and necessary
      disbursements in addition to any other relief to which such party may be
      entitled. Each of the parties to this Agreement consents to personal
      jurisdiction for any equitable action sought in the U.S. District Court for
      the
      Southern District of New York.

     

    
      
        
        

      

      
        (14)

        
          

        

      

      
        
        

      

    

     

    7.14
      No
      Commitment for Additional Financing.
      The
      Company acknowledges and agrees that other than as contemplated by this
      Agreement, the Debentures or the Security Agreement, Regent has not made
      any representation, undertaking, commitment or agreement to provide or assist
      the Company in obtaining any financing, investment or other assistance, other
      than the purchase of the Debentures and the provision of funds pursuant to
      the
      Debentures subject to the conditions set forth herein. In addition, the Company
      acknowledges and agrees that (i) no statements, whether written or oral, made
      by Regent or its representatives on or after the date of this Agreement
      shall create an obligation, commitment or agreement to provide or assist the
      Company in obtaining any financing or investment, (ii) the Company shall not
      rely on any such statement by Regent or its representatives and (iii) an
      obligation, commitment or agreement to provide or assist the Company in
      obtaining any financing or investment may only be created by a written
      agreement, signed by Regent and the Company, setting forth the terms and
      conditions of such financing or investment and stating that the parties intend
      for such writing to be a binding obligation or agreement. Regent shall have
      the right, in its sole and absolute discretion, to refuse or decline to
      participate in any other financing of or investment in the Company, and shall
      have no obligation to assist or cooperate with the Company in obtaining any
      financing, investment or other assistance.

     

    IN
      WITNESS WHEREOF, the parties have executed this Convertible Debenture Purchase
      Agreement as of the date first written above.

     

    Signatures
      appear on following page

     

    
      
        
        

      

      
        (15)

        
          

        

      

      
        
        

      

    

    
       

       

      
        	 	 	
                COMPANY

              
	 	 	 
	 	 	
                VYCOR
                  MEDICAL, INC.

              
	 	 	
              	 
	/s/
                Heather N. Jensen 	 	By: 	
                Kenneth
                  Coveillo

              
	Heather
                N. Jensen	 	Name:	
                Kenneth
                  Coveillo

              
	President 	 	Title:	
                CEO

              

      

       

      
        	
                Address:

              
	 
	
                80
                  Orville Drive, Suite 100

              
	
                Bohemia,
                  New York 11716

              
	 
	
                
                  REGENT

                

              
	 
	
                
                  REGENT
                    PRIVATE CAPITAL, LLC

                

              

      

      

      
        	
                By: 

              	
                /s/
                  Lawrence Field

              
	 	
                
                  Lawrence
                    Field, Managing Director

                

              

      

       

      
        
          	
                  Address:

                   

                
	
                  
                    152
                      West 57th Street, 9th Floor
New York, New York
                      10019

                  

                

        

         

        
          
            
            

          

          
            (16)

            
              

            

          

          
            
            

          

           

        

      

    

    EXHIBIT
      A

     

    FORM
      OF DEBENTURE

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
      SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE, AND IS BEING
      OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
      OF
      THE SECURITIES ACT AND SUCH LAWS. THIS SECURITY MAY NOT BE SOLD OR TRANSFERRED
      EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT
      OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT OR SUCH OTHER LAWS.

     

    6%
      CONVERTIBLE DEBENTURE

    

    
      
        	No.
                1	
                US$500,000       

              

      

    

     

    VYCOR
      MEDICAL, INC.

     

    SENIOR
      CONVERTIBLE DEBENTURE

     

    DUE
      FEBRUARY 15, 2008

    

    

      FOR
        VALUE
        RECEIVED, Vycor
        Medical, Inc. (the
        "Company") promises to pay to Regent
        Private Capital, LLC, or
        any
        other registered holder(s) hereof and its or their authorized successors
        and
        permitted assigns (" Holder"), the aggregate principal face amount of US$500,000
        on or before February 15, 2009 ("Maturity Date"), together with interest
        thereon
        at six percent (6%) per annum. The Holder shall have the sole option to extend
        the Maturity Date for a period of six months. Accrued interest shall be paid
        to
        the person in whose name this Debenture is registered on the records of the
        Company regarding registration and transfers of the Debenture ("Debenture
        Register"); provided, however, that the Company's obligation to a transferee
        of
        this Debenture arises only if such transfer, sale or other disposition is
        made
        in accordance with the terms hereof and duly entered in the Debenture Register.
        The principal amount of this Debenture is payable at the address last appearing
        on the Debenture Register of the Company as designated in writing by the
        Holder
        hereof from time to time. The Holder's address initially provided to the
        Company
        is as set forth in Section 16(b) below. The Company may, at its option, elect
        to
        pay accrued interest under this Debenture, by issuing to the Holder shares
        of
        common stock in the Company with a value equal to such accrued interest.
        In such
        event, the value of the common stock issued in lieu of payment of accrued
        interest will be mutually agreed upon by the Company and the Holder prior
        to the
        Company having the right to make payment in such fashion. The Company will
        pay
        the outstanding principal and accrued interest due upon this Debenture before
        or
        on the Maturity Date, less any amounts required by law to be deducted or
        withheld, to the Holder of this Debenture by check if paid more than 10 days
        prior to the Maturity Date or by wire transfer and addressed to such Holder
        at
        the last address appearing on the Debenture Register. The forwarding of such
        check or wire transfer shall constitute a payment of outstanding principal
        hereunder and shall satisfy and discharge the liability for principal on
        this
        Debenture to the extent of the sum represented by such check or wire
        transfer.

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

      This
        Debenture is one of a series of two Convertible Debentures, each in the original
        principal amount of $500,000, to be issued pursuant to the Convertible Debenture
        Purchase Agreement dated February 15, 2008 ("Purchase Agreement"), and secured
        pursuant to the terms of a Security Agreement of even date with the Purchase
        Agreement ("Security Agreement").

    

     

    This
      Debenture is subject to the following additional provisions:

     

    1. Issuance. The
      Debenture may be exchanged for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holders surrendering
      the same, but not less than U.S. $50,000 each. No service charge will be made
      for such registration or transfer or exchange, except that Holder shall pay
      any
      tax or other governmental charges payable in connection therewith. The Company
      shall be entitled to withhold from all payments any amounts required to be
      withheld under the applicable laws.

     

    2. Loss,
      Theft, Destruction of Debenture.
      Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of this Debenture and, in the case of any such loss, theft or
      destruction, upon receipt of indemnity or security reasonably satisfactory
      to
      the Company, or, in the case of any such mutilation, upon surrender and
      cancellation of this Debenture, the Company shall make, issue and deliver,
      in
      lieu of such lost, stolen, destroyed or mutilated Debenture, a new Debenture
      of
      like tenor and unpaid principal amount dated as of the date hereof (which shall
      accrue interest from the most recent interest payment date on which an interest
      payment was made in full).

     

    3. Transfer. This
      Debenture may be transferred or exchanged only in compliance with the Securities
      Act of 1933, as amended (the "Act") and applicable state securities laws. Prior
      to due presentment for transfer of this Debenture, the Company and any agent
      of
      the Company may treat the person in whose name this Debenture is duly registered
      on the Company's Debenture Register as the Holder hereof for all other purposes,
      whether or not this Debenture be overdue, and neither the Company nor any such
      agent shall be affected or bound by notice to the contrary. Any Holder of this
      Debenture, electing to exercise the right of conversion set forth in Section
      4(a) hereof, in addition to the requirements set forth in Section 4(a), and
      any
      prospective transferee of this Debenture, are also required to give the Company
      written confirmation that the Debenture is being converted ("Notice of
      Conversion") in the form annexed hereto as Exhibit I. The date of receipt
      (including receipt by telecopy) of such Notice of Conversion shall be the
      Conversion Date.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4. Conversion The
      Holder is entitled, at its option, to convert all or any amount of the principal
      face amount of this Debenture then outstanding into shares of common stock
      of
      the Company at a Conversion Price of $.01230 per share, subject to adjustment
      as
      provided herein. If the number of resultant Conversion Shares would as a matter
      of law or pursuant to regulatory authority require the Company to seek member
      approval of such issuance, the Company has, prior to the issuance hereof, taken
      the necessary steps to obtain such approval. Such conversion shall be
      effectuated, by the Company delivering the Conversion
      Shares to the Holder within 30 days of receipt by the Company of the Notice
      of
      Conversion. Once the Holder has received such Conversion Shares, the Holder
      shall surrender the Debenture (or portion thereof) to be converted to the
      Company, executed by the Holder of this Debenture evidencing such Holder's
      intention to convert this Debenture or a specified portion hereof, and
      accompanied by proper assignment hereof in blank. If the Company shall fail
      to
      deliver the Conversion Shares to the Holder within such 30 day period, the
      Conversion Price shall be automatically reduced by twenty-five percent (25%),
      and shall be reduced an additional ten percent (10%) for each additional 30
      day
      period (or portion thereof) thereafter. In the event of a partial conversion
      of
      the Debenture, the Company will immediately issue a replacement Debenture
      covering the unconverted portion.

     

    To
      the
      fullest extent permitted by law, the Holder shall be entitled to exercise its
      conversion privilege notwithstanding the commencement of any case under the
      Bankruptcy Code. In the event the Company is a debtor under the Bankruptcy
      Code,
      the Company hereby waives to the fullest extent permitted any rights to relief
      it may have under 11 U.S.C. § 362 in respect of the Holder's conversion
      privilege. The Company hereby waives to the fullest extent permitted any rights
      to relief it may have under 11 U.S.C. § 362 in respect of the conversion of this
      Debenture. The Company agrees, without cost or expense to the Holder, to take
      or
      consent to any and all action necessary to effectuate relief under 11 U.S.C.
§
362.

     

    No
      fractional shares or scrip representing fractional shares shall be delivered
      upon conversion of this Debenture. Instead of any fractional Conversion Shares
      which otherwise would be delivered upon conversion of this Debenture, the
      Company shall pay a cash adjustment in respect of such fraction in an amount
      equal to the same fraction multiplied by the Conversion Price on the date of
      Conversion. No cash payment of less than $1.00 shall be required to be given
      unless specifically requested by the Holder.

     

    5. Priority;
      Security. The
      obligation evidenced by this Debenture shall be senior to all other obligations
      of the Company other than obligations specifically approved by the Holder;
      provided that the obligation evidenced by this Debenture shall be of equal
      priority for all purposes with that certain Bridge Loan Debenture dated June
      21,
      2007, in the original principal amount of $172,500 held by Fountainhead Capital
      Partners Limited (the "FCP Debenture"). The obligation evidenced by this
      Debenture is secured by a first priority security interest (and equal in
      priority to the first priority security interest securing the FCP Debenture),
      in
      all of the assets of the Company other than liens specifically approved by
      the
      Holder. As a condition to funding this Debenture, the Holder has the right
      to
      require the holder of the FCP Debenture to execute an intracreditor or similar
      written agreement pursuant to which such holder acknowledges that the security
      interests of such holder and the Holder hereunder shall be equal, and in the
      event of a default under either the FCP Debenture or this Debenture, such
      debenture holders, as secured parties, will share, pari passu, with respect
      to
      the proceeds from any foreclosure of collateral securing such
      indebtedness.

     

    6. Anti-dilution
      Adjustments.
      The
      number of shares issuable upon conversion of this Debenture and the Conversion
      Price shall be subject to adjustment as follows:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (a) In
      case
      the Company shall (i) pay a dividend or make a distribution on its common stock
      in additional shares or other securities, (ii) subdivide its outstanding common
      stock into a greater number of shares, (iii) combine its outstanding shares
      into
      a smaller number of shares or (iv) issue, by reclassification of its shares,
      any
      other securities of the Company (including any such reclassification in
      connection with a consolidation or merger in which the Company is the continuing
      entity), the number of share issuable upon conversion of this Debenture
      immediately prior thereto shall be adjusted so that the Holder shall be entitled
      to receive the kind and number of Conversion Shares, and other securities of
      the
      Company which such Holder would have owned or would have been entitled to
      receive immediately after the happening of any of the events described above,
      had the Debenture been converted immediately prior to the happening of such
      event or any record date with respect thereto. Any adjustment made pursuant
      to
      this subsection 6(a) shall become effective immediately after the effective
      date
      of such event.

     

    (b) In
      case
      the Company shall issue rights, options, warrants or convertible securities
      to
      holders of its shares, for no
      consideration, containing
      the right to subscribe for or purchase shares of common stock, the number of
      Conversion Shares thereafter issuable upon the conversion of this Debenture
      shall be determined by multiplying the number of Conversion Shares theretofore
      issuable upon conversion of this Debenture by a fraction, of which the numerator
      shall be the number of shares outstanding immediately prior to the issuance
      of
      such rights, options, warrants or convertible securities plus the number of
      additional shares offered for subscription or purchase, and of which the
      denominator shall be the number of shares outstanding immediately prior to
      the
      issuance of such rights, options, warrants or convertible securities. Such
      adjustment shall be made whenever such rights, options, warrants or convertible
      securities are issued, and shall become effective immediately upon issuance
      of
      such rights, options, warrants or convertible securities. In the event of such
      adjustment, corresponding adjustments shall be made to the Conversion
      Price.

     

    (c) In
      case
      the Company shall distribute to holders of its common shares evidences of its
      indebtedness or assets (excluding cash dividends or distributions out of current
      earnings made in the ordinary course of business consistent with past
      practices), then in each case the number of Conversion Shares thereafter
      issuable upon the conversion of this Debenture shall be determined by
      multiplying the number of Conversion Shares theretofore issuable upon conversion
      of this Debenture by a fraction, of which the numerator shall be the then Market
      Price (as defined below) on the date of such distribution, and of which the
      denominator shall be such Market Price on such date minus the then fair value
      (determined as provided in subsection 6(f) below) of the portion of the assets
      or evidences of indebtedness so distributed applicable to one share. Such
      adjustment shall be made whenever any such distribution is made and shall become
      effective on the date of distribution. In the event of any such adjustment,
      the
      number of Conversion Shares shall also be adjusted and shall be that number
      determined by multiplying the number of shares issuable upon exercise before
      the
      adjustment by a fraction, the numerator of which shall be the Conversion Price
      in effect immediately before the adjustment and the denominator of which shall
      be the Conversion Price as so adjusted.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d)
      If
      the Company shall at any time while this Debenture is outstanding issue shares
      (including additional shares deemed to be issued upon conversion of any
      convertible security, but excluding shares issued as a dividend or distribution
      or upon a stock split or combination which is otherwise provided for in Section
      6(a) above, or upon the issuance of options or warrants for no
      consideration which
      is
      otherwise provided for in Section 6(b) above) either without consideration,
      or
      for a consideration per share less than the Conversion Price in effect on the
      date of and immediately prior to such issue, then and in such event, the
      Conversion Price shall be reduced by a full ratchet anti-dilution adjustment
      to
      such lesser price (calculated to the nearest cent).

     

    For
      purposes of this Section 6(d), the consideration received by the Company for
      the
      issue of any additional shares shall be computed as follows:

     

    (A) Cash
      and
      Property. Such consideration shall:

     

    (1) insofar
      as it consists of cash, be computed at the aggregate of cash received by the
      Company, excluding amounts paid or payable for accrued interest or accrued
      dividends;

     

    (2) insofar
      as it consists of property other than cash, be computed at the fair market
      value
      thereof at the time of such issue, as determined in good faith by the Company's
      managers or governing board; and

     

    (3) in
      the
      event additional shares are issued together with other securities or other
      assets of the Company for consideration which covers both, be the proportion
      of
      such consideration so received, computed as provided in clauses (1) and (2)
      above, as determined in good faith by the Company's board of
      directors.

     

    (B) Options,
      Rights and Convertible Securities. The consideration per unit received by the
      Company for additional shares deemed to have been issued pursuant to options,
      warrants, rights or other convertible securities (other than when issued for
      no
      consideration as provided for in Section 6(a) above), shall be determined by
      dividing

     

    (1) the
      total
      amount, if any, received or receivable by the Company as consideration for
      the
      issue of such options, rights, warrants or other convertible securities, plus
      the minimum aggregate amount of additional consideration (as set forth in the
      instruments relating thereto, without regard to any provision contained therein
      for a subsequent adjustment of such consideration) payable to the Company upon
      the exercise of such options, rights, warrants or the conversion or exchange
      of
      such convertible securities, by

     

    (2) the
      maximum number of shares (as set forth in the instruments relating thereto,
      without regard to any provision contained therein for a subsequent adjustment
      of
      such number) issuable upon the exercise of such options, rights, warrants or
      the
      conversion or exchange of such convertible securities.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (e) Whenever
      the number of Conversion Shares issuable upon the conversion of this Debenture
      is adjusted as provided in this Section 6, the Conversion Price shall be
      adjusted by multiplying such Conversion Price immediately prior to such
      adjustment by a fraction, the numerator of which shall be the number of
      Conversion Shares issuable upon the conversion of this Debenture immediately
      prior to such adjustment, and the denominator of which shall be the number
      of
      Conversion Shares issuable immediately thereafter.

     

    (f) For
      the
      purpose of this Section 6, the term "shares"
      shall
      mean (i) the common stock of the Company at the time of conversion, on a fully
      diluted basis. In the event that at any time, as a result of an adjustment
      made
      pursuant to this Section 6, a Debenture holder shall be entitled to convert
      such
      Debenture into any securities of the Company other than common stock, (i) if
      the
      Debenture holder's right to convert is on any other basis than that available
      to
      all holders of the Company's common stock, the Company shall obtain an opinion
      of a reputable investment banking firm valuing such other securities and (ii)
      thereafter the number of such other securities so purchasable upon conversion
      of
      a Debenture and the Conversion Price of such securities shall be subject to
      adjustment from time to time in a manner and on terms as nearly equivalent
      as
      practicable to the provisions with respect to the shares contained in this
      Section 6.

     

    (g) Upon
      the
      expiration of any rights, options, warrants or conversion privileges, if such
      shall not have been exercised, the number of Conversion Shares issuable upon
      conversion of the Debenture and the Conversion Price, to the extent the
      Debenture has not then been converted, shall, upon such expiration, be
      readjusted and shall thereafter be such number and such price as they would
      have
      been had they been originally adjusted (or had the original adjustment not
      been
      required, as the case may be) on the basis of (A) the fact that the only shares
      issued in respect of such rights, options, warrants or conversion privileges
      were the shares, if any, actually issued or sold upon the exercise of such
      rights, options, warrants or conversion privileges, and (B) the fact that such
      shares, if any, were issued or sold for the consideration actually received
      by
      the Company upon such exercise plus the consideration, if any, actually received
      by the Company for the issuance, sale or grant of all such rights, options,
      warrants or conversion privileges whether or not exercised; provided, however,
      that no such readjustment shall have the effect of decreasing the numbers of
      Conversion Shares issuable upon conversion of the Debenture or increasing the
      Conversion Price by an amount in excess of the amount of the adjustment made
      in
      respect of the issuance, sale or grant of such rights, options, warrants or
      conversion privileges.

     

    (h) Upon
      any
      adjustment of the Conversion Price and the number of Conversion Shares issuable
      upon conversion of the Debenture, then and in each such case, the Company shall
      give written notice thereof, by first-class mail, postage prepaid, addressed
      to
      the Holder as shown on the books of the Company, which notice shall state the
      Conversion Price resulting from such adjustment and the increase or decrease,
      if
      any, in the number of shares issuable at such price upon the conversion of
      the
      Debenture, setting forth in reasonable detail the method of calculation and
      the
      facts upon which such calculation is based.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    7. Merger,
      Reorganization or Consolidation.
      In
      any
      case in which a transaction would result in a complete liquidation of the
      Company or a merger, reorganization, or consolidation of the Company with any
      other unrelated corporation or other entity in which the Company is not the
      surviving corporation or the Company becomes a wholly-owned subsidiary of
      another unrelated corporation or other entity (all such transactions being
      referred to herein as a "Reorganization"), the surviving corporation or other
      entity shall be required to assume the Debenture or to issue a substitute
      Debenture in place thereof which substitute Debenture shall provide for terms
      at
      least as favorable to the Holder as contained in this Debenture and shall
      provide the Holder the right to acquire the kind and amount of common stock
      and
      other securities and property which the Holder would have owned or been entitled
      to receive had the Debenture been converted immediately prior to such
      Reorganization.

     

    8. No
      Impairment. No
      provision of this Debenture shall alter or impair the obligation of the Company,
      which is absolute and unconditional, to pay the principal of this Debenture
      at
      the time, place, and rate, and in the form, herein prescribed.

     

    9. Waiver
      of Demand/Presentment. The
      Company hereby expressly waives demand and presentment for payment, notice
      of
      non-payment, protest, notice of protest, notice of dishonor, notice of
      acceleration or intent to accelerate, and diligence in taking any action to
      collect amounts called for hereunder and shall be directly and primarily liable
      for the payment of all sums owing and to be owing hereto.

     

    10. Cost
      and Fees. The
      Company agrees to pay all costs and expenses, including reasonable attorneys'
      fees, which may be incurred by the Holder in collecting any amount due under
      this Debenture.

     

    11. Events
      of Default. If
      one or
      more of the following described "Events of Default" shall occur and continue
      for
      30 days, unless a different time frame is noted below:

     

    (a) The
      Company shall default in the payment of principal or interest on this Debenture,
      and such failure shall continue for a period of five (5) days; or

     

    (b) The
      Company shall fail to perform or observe, in any material respect, any other
      covenant, term, provision, condition, agreement or obligation of the Company
      under this Debenture and such failure shall continue uncured for a period of
      thirty (30) days after notice from the Holder of such failure; or

     

    (c) The
      Company shall (1) become insolvent; (2) admit in writing its inability to pay
      its debts generally as they mature; (3) make an assignment for the benefit
      of
      creditors or commence proceedings for its dissolution; (4) apply for or consent
      to the appointment of a trustee, liquidator or receiver for its or for a
      substantial part of its property or business; (5) file a petition for bankruptcy
      relief, consent to the filing of such petition or have filed against it an
      involuntary petition for bankruptcy relief, all under federal or state laws
      as
      applicable; or

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (d) A
      trustee, liquidator or receiver shall be appointed for the Company or for a
      substantial part of its property or business without its consent and shall
      not
      be discharged within thirty (30) days after such appointment; or

     

    (e) Any
      governmental agency or any court of competent jurisdiction at the instance
      of
      any governmental agency shall assume custody or control of the whole or any
      substantial portion of the properties or assets of the Company; or

     

    (f) Any
      money
      judgment, writ or warrant of attachment, or similar process, in excess of One
      Hundred Thousand ($100,000) Dollars in the aggregate shall be entered or filed
      against the Company or any of its properties or other assets and shall remain
      unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or
      in
      any event later than five (5) days prior to the date of any proposed sale
      thereunder; or

     

    (g) Bankruptcy,
      reorganization, insolvency or liquidation proceedings, or other proceedings
      for
      relief under any bankruptcy law or any law for the relief of debtors shall
      be
      instituted voluntarily by or involuntarily against the Company;
      or

     

    (h) The
      Company shall not deliver to the Holder the shares pursuant to paragraph 4
      herein within 30 days of receipt of Notice of Conversion; or

     

    (i) any
      of
      the representations or warranties made by the Company herein, in the Purchase
      Agreement or the Security Agreement or in any certificate or financial or other
      written statements heretofore or hereafter furnished by or on behalf of the
      Company in connection with the execution and delivery of this Debenture, the
      Purchase Agreement or the Security Agreement shall be false or misleading in
      a
      material respect on the Closing Date; or

     

    (j)
      the
      Company shall fail in any one of the following respects: (A) to file, within
      sixty (60) days from the date hereof, a registration statement on Form S-l
      or
      SB-2,(or other applicable form ("Registration Statement"), with the Securities
      and Exchange Commission ("SEC"), which Registration Statement shall register
      for
      sale all Conversion Shares which may be issuable upon conversion of this
      Debenture; (B) to use its commercially reasonable efforts to have such
      Registration Statement declared effective by the SEC within one hundred eighty
      (180) days from the date hereof (and for purposes hereof, the Company will
      be
      deemed to be using its "commercially reasonable efforts" without any undue
      hardship or unreasonable expenses, provided it fully and appropriately responds
      to all comments from the SEC within ten (10) business days of receipt thereof,
      and diligently continues to seek effectiveness of such registration statement);
      or (C) to take such action to have the Registration Statement declared effective
      by the SEC within three (3) business days following written confirmation from
      the SEC that it either will not review the Registration Statement or that it
      has
      no further comment on the Registration Statement; or

     

    (k)
      If
      the Company is then a "reporting company" it shall fail to make the required
      filings or statements with the Securities Exchange Commission by the appropriate
      deadlines.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Then,
      or
      at any time thereafter, unless cured, and in each and every such case, unless
      such Event of Default shall have been waived in writing by the Holder (which
      waiver shall not be deemed to be a waiver of any subsequent default) at the
      option of the Holder and in the Holder's sole discretion, the Holder may
      consider this Debenture immediately due and payable, without presentment,
      demand, protest or (further) notice of any kind (other than notice of
      acceleration), all of which are hereby expressly waived, anything herein or
      in
      any note or other instruments contained to the contrary notwithstanding, and
      the
      Holder may immediately, and without expiration of any period of grace, enforce
      any and all of the Holder's rights and remedies provided herein or any other
      rights or remedies afforded by law. Upon an Event of Default, interest shall
      accrue on all amounts outstanding under this Debenture at the rate of 12% per
      annum, until such Event of Default is cured or the principal and all accrued
      interest under this Debenture is paid in full.

     

    12. Priority.
      This
      Debenture represents a prioritized obligation of the Company. However, no
      recourse shall be had for the payment of the principal of this Debenture, or
      for
      any claim based hereon, or otherwise in respect hereof, against any
      incorporator, unitholder, officer or director, as such, past, present or future,
      of the Company or any successor corporation, whether by virtue of any
      constitution, statute or rule of law, or by the enforcement of any assessment
      or
      penalty or otherwise, all such liability being by the acceptance hereof and
      as
      part of the consideration for the issue hereof, expressly waived and
      released.

     

    13. Severability. In
      case
      any provision of this Debenture is held by a court of competent jurisdiction
      to
      be excessive in scope or otherwise invalid or unenforceable, such provision
      shall be adjusted rather than voided, if possible, so that it is enforceable
      to
      the maximum extent possible, and the validity and enforceability of the
      remaining provisions of this Debenture will not in any way be affected or
      impaired thereby.

     

    14. Entire
      Agreement.
      This
      Debenture, the Purchase Agreement, the Security Agreement and the agreements
      referred to in this Debenture constitute the full and entire understanding
      and
      agreement between the Company and the Holder with respect to the subject hereof.
      Neither this Debenture nor any term hereof may be amended, waived, discharged
      or
      terminated other than by a written instrument signed by the Company and the
      Holder.

     

    15. Governing
      Law. This
      Debenture shall be governed by and construed in accordance with the laws of
      New
      York applicable to contracts made and wholly to be performed within the State
      of
      New York and shall be binding upon the successors and assigns of each party
      hereto. The Holder and the Company hereby mutually waive trial by jury and
      consent to exclusive jurisdiction and venue in the courts of the State of New
      York. At Holder's election, any dispute between the parties may be arbitrated
      rather than litigated in the courts, before the American Arbitration Association
      in New York City and pursuant to its rules. Upon demand made by the Holder
      to
      the Company, the Company agrees to submit to and participate in such
      arbitration. This Agreement may be executed in counterparts, and the facsimile
      transmission of an executed counterpart to this Agreement shall be effective
      as
      an original.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    16.
      Miscellaneous.

     

    (a) Notice
      of Certain Events.
      In the
      case of the occurrence of a Reorganization described in Section 7 of this
      Debenture, the Company shall cause to be mailed to the Holder of this Debenture
      at its last address as it appears in the Company's security registry, at least
      twenty (20) days prior to the applicable record, effective or expiration date
      hereinafter specified (or, if such twenty (20) days' notice is not possible,
      at
      the earliest possible date prior to any such record, effective or expiration
      date), a notice thereof, including, if applicable, a statement of the date
      on
      which such Reorganization is expected to become effective, and the date as
      of
      which it is expected that holders of record of the shares will be entitled
      to
      exchange their shares for securities, cash or other property deliverable upon
      such Reorganization.

     

    (b) Transmittal
      of Notices.
      Except
      as may be otherwise provided herein, any notice or other communication or
      delivery required or permitted hereunder shall be in writing and shall be
      delivered personally, or sent by telecopier machine or by a nationally
      recognized overnight courier service, and shall be deemed given when so
      delivered personally, or by telecopier machine or overnight courier service
      as
      follows:

     

    (1)      If
      to the Holder, to:

     

    Regent
      Private Capital, LLC
152 West 57th Street, 9th
      Floor
New York, New York 10019
Telephone: 212-792-5304
Facsimile:
      646-278-9699

     

    With
      a
      copy to:

     

    
      Kenneth
        E. Dornblaser, Esq.

      Johnson,
        Jones, Dornblaser, Coffman & Shorb

      15
        W.
        Sixth Street, Suite 2200

      Tulsa,
        Oklahoma 74119

      Telephone:
        918-584-6644

      Facsimile:
        918-584-6645

    

     

    (2)      If
      to the Holder, to:

     

    Vycor
      Medical, Inc.

    80
      Orville Drive, Suite 100

    Bohemia,
      New York 11716

    Telephone:
      631-244-1435

    Facsimile:
      631-244-1436

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy to:

     

    Benjamin
      A. Tan Esq.

    Sichenzia
      Ross Friedman Ference LLP

    61
      Broadway, 32nd Floor

    New
      York,
      NY 10006

    Phone
      212-930-9700

    Fax
      212-930-9725

    

    Each
      of
      the Holder or the Company may change the foregoing address by notice given
      pursuant to this Section 16(b).

     

    (c)
      Attorneys'
      Fees.
      Should
      any party hereto employ an attorney for the purpose of enforcing or construing
      this Debenture, or any judgment based on this Debenture, in any legal proceeding
      whatsoever, including insolvency, bankruptcy, arbitration, declaratory relief
      or
      other litigation, the prevailing party shall be entitled to receive from the
      other party or parties thereto reimbursement for all reasonable attorneys'
      fees
      and all reasonable costs, including but not limited to service of process,
      filing fees, court and court reporter costs, investigative costs, expert witness
      fees, and the cost of any bonds, whether taxable or not, and that such
      reimbursement shall be included in any judgment or final order issued in that
      proceeding. The "prevailing party" means the party determined by the court
      to
      most nearly prevail and not necessarily the one in whose favor a judgment is
      rendered.

     

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly executed
      by
      an officer thereunto duly authorized.

    

    Dated:
      ______________,
      2008

    
       

      
        
          	
                  VYCOR
                    MEDICAL, INC.

                
	 	 
	
                  By:

                	
                   

                
	
                  Name: 

                	
                   

                
	
                  Title:
                    

                	
                   

                

        

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

      

    

     

    EXHIBIT
      I

    NOTICE
      OF CONVERSION

     

    (To
      be
      executed by the Registered Holder in order to Convert the
      Debenture)

     

    The
      undersigned hereby irrevocably elects to convert $_________ of
      the
      above Debenture No.
      _________ into
      shares of common stock of Vycor Medical, Inc. according to the conditions
set
      forth
      in such Debenture, as of the date written below. If shares are to be issued
      in
      the name of a person other than the undersigned, the undersigned will pay all
      transfer and other taxes and charges payable with respect thereto.

    

    Date
      of
      Conversion

     

    
      
        

      

Applicable
      Conversion Price

    

    
      
        

      

    Signature

     

      
        

      

    

    [Print
      Name of Holder and Title of Signer]

     

    Address:

     

    
      
 

      
 

    SSN
      or
      EIN:

    Shares
      are to be registered in the following name:

    

    Name:

    Address:

    Tel:

    Fax:

    SSN
      or
      EIN:

    

    Shares
      are to be sent or delivered to the following account:

    

    Account
      Name:

    Address:

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    FORM
      OF SECURITY AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECURITY
      AGREEMENT

     

    
      For
        valuable consideration, the receipt and sufficiency of which are acknowledged,
        VYCOR
        MEDICAL, INC., ("Pledgor"),
        enters into this Security Agreement ("Agreement") and grants to REGENT
        PRIVATE CAPITAL, LLC ("Secured
        Party") a security interest in the Collateral to secure the Obligations of
        Pledgor to Secured Party. Pledgor agrees with Secured Party as
        follows:

    

     

    ARTICLE
      I - SECURITY
      INTEREST

     

    1.01 Pledge
      of Collateral.
      Pledgor
      grants to Secured Party a security interest in, and agrees and acknowledges
      that
      Secured Party has and shall continue to have a security interest in, the
      following described property, to-wit:

     

    All
      inventory of Pledgor, now owned, and all accessories, parts and equipment now
      or
      hereafter attached thereto or used in connection therewith;

     

    All
      accounts of Pledgor, including contract rights and accounts receivable, now
      existing or hereafter arising;

     

    All
      general intangibles of Pledgor, now existing or hereafter
      arising;

     

    All
      instruments, documents of title, policies and certificates of insurance,
      securities, chattel paper, deposits, cash or other property owned by Pledgor
      or
      in which Pledgor has an interest which are now or may hereafter be in possession
      of Secured Party;

     

    All
      equipment of Pledgor, now owned;

     

    All
      proceeds and products of the foregoing; and

     

    All
      inventory, accounts, general intangibles, equipment, chattel paper, securities
      and instruments acquired with the proceeds of the foregoing and products of
      the
      foregoing.

     

    (collectively
      the "Collateral"). Pledgor agrees to execute all stock powers, endorse
      instruments, or execute additional pledge agreements or other documents required
      by the Secured Party in order to effectively grant to Secured Party the security
      interest in the Collateral.

     

    1.02 Obligations
      Secured.
      The
      Collateral secures the payment of all debts, obligations and liabilities of
      every kind and character of Pledgor now or hereafter existing in favor of
      Secured Party ("Obligations"), including, but not limited to, all amounts that
      may be outstanding with respect to two essentially identical Convertible
      Debentures, each in the original principal amount of $500,000 issued or to
      be
      issued by Pledgor to Secured Party (the "Debentures"), and all Pledgor's
      representations, warranties, covenants and obligations set forth in that certain
      Debenture Purchase Agreement of even date herewith between Pledgor and Secured
      Party ("Purchase Agreement").

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II - WARRANTIES
      AND COVENANTS OF PLEDGOR

     

    Pledgor
      warrants, covenants and agrees that:

     

    2.01 Title
      to Collateral.
      Pledgor
      is the owner of the Collateral, free of any adverse claim, security interest,
      restriction or encumbrance, except for the security interest granted hereby
      and
      as set forth in Section 2.02 below. Pledgor will defend the Collateral against
      all claims and demands of all persons at any time claiming the same or any
      interest therein.

     

    2.02 Priority;
      Security.
      The
      security interest in the Collateral shall be senior to all other obligations
      of
      the Pledgor other than obligations specifically approved by Secured Party;
      provided that the security interest in the Collateral evidenced by this
      Agreement shall be of equal priority for all purposes with that certain Bridge
      Loan Debenture dated December 14, 2006 (as amended, to extend the maturity
      date
      thereof), in the original principal amount of $172,500 held by Fountainhead
      Capital Partners Limited.

     

    2.03 Filings.
      Pledgor authorizes the Secured Party to file, in jurisdictions where this
      authorization will be given effect, a Financing Statement signed only by the
      Secured Party covering the Collateral; and at the request of Secured Party,
      Pledgor will join the Secured Party in executing one or more Financing
      Statements pursuant to the Uniform Commercial Code, in form satisfactory to
      the
      Secured Party, and will pay the cost of filing the same or filing or recording
      this Agreement in all public offices wherever filing or recording is reasonably
      necessary or desirable..

     

    2.04 Conveyance
      of Collateral.
      Pledgor
      will not sell or offer to sell or otherwise transfer or encumber the Collateral
      or any interest therein without the prior written consent of the Secured
      Party.

     

    2.05 Encumbrances.
      Pledgor
      will keep the Collateral free from any and all adverse liens, security interest
      and encumbrances.

     

    2.06 Expenses.
      Pledgor
      will pay to Secured Party all reasonable expenses including attorneys' fees
      and
      legal expenses, incurred or paid by Secured Party in exercising or protecting
      its interest in the Collateral, and its rights and remedies under this
      Agreement. Pledgor agrees to pay interest on preservation and collection
      expenses incurred by Secured Party at the maximum rate permitted by applicable
      law from the date of incurrence by Secured Party until the date paid by
      Pledgor.

     

    2.07 Representations
      as to Pledgor.
      The
      execution, delivery and performance of this Agreement and the consummation
      of
      the transactions contemplated herein will not conflict with or cause a material
      breach of any agreement, indebtedness, indenture or other instrument to which
      Pledgor is a party. There are no actions, suits or proceedings pending or
      threatened against Pledgor which, if adversely decided, would have a material
      adverse effect upon Pledgor.

     

    ARTICLE
      III - GENERAL
      COVENANTS

     

    3.01
      Effect
      of Other Action.
      The
      security interest granted in this Agreement shall in no way be affected by
      any
      indulgence(s), extension(s), change(s) in the form, evidence, maturity, rate,
      amount or interest or otherwise of any of the Obligations secured hereby, nor
      shall any release of, or failure to perfect the security interest or lien in,
      any security for or of any of the parties liable for the payment of any of
      the
      Obligations, in any manner affect or impair this pledge, and the same shall
      continue in full force and effect in accordance with the terms until all of
      the
      Obligations have been paid to Secured Party.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.02
      Other
      Properties.
      Any and
      all securities and other properties of Pledgor heretofore, now or hereafter
      delivered to Secured Party, or in Secured Patty's possession, shall also secure
      all of the Obligations and shall be held and construed to be a part of the
      Collateral to the same extent as if fully described in this
      Agreement.

     

    ARTICLE
      IV - EVENTS
      OF DEFAULT

     

    It
      shall
      constitute an Event of Default under this Agreement upon the happening of any
      of
      the following events or conditions:

     

    4.01 Payment
      of Obligations.
      Default
      in the payment or performance of any liability or obligation of Pledgor to
      Secured Party, including not by way of limitation default in the payment of
      any
      of the Obligations when due, a default under the Debentures, or a default under
      the Purchase Agreement.

     

    4.02 Execution.
      The
      levy of any attachment, execution, garnishment or other process against Pledgor
      or any of the Collateral in connection with any tax lien, debt, judgment,
      assessment or obligation of Pledgor.

     

    4.03 Termination;
      Insolvency.
      Dissolution, termination of existence, insolvency or business failure of Pledgor
      or the initiation of any bankruptcy proceeding by, or the appointment of a
      receiver or other legal representative for any part of the property of Pledgor,
      or assignment for the benefit of creditors by Pledgor.

     

    4.04 Other
      Covenants.
      Default
      in the performance of any covenant or agreement of Pledgor to Secured Party
      whether under this Agreement or otherwise, or if any warranty or covenant in
      Article II or Article III of this Agreement is or shall become untrue in any
      material respect, or Pledgor fails to comply therewith in any material
      manner.

     

    4.05 Other
      Obligations.
      The
      occurrence of any event which under the terms of any evidence of indebtedness,
      indenture, loan agreement, security agreement or similar instrument permits
      the
      acceleration of maturity of any Obligations of Pledgor to Secured
      Party.

     

    ARTICLE
      V - REMEDIES

     

    5.01
      Sale.
      In the
      event of the default in the payment or performance of any of the Obligations
      when due, or upon the happening of any of the Events of Default specified in
      this Agreement, and at any time thereafter, at the option of the Secured Party,
      any and all of the Obligations shall become due and payable and the Secured
      Party shall have and may exercise with reference to the Collateral any and
      all
      of the rights and remedies of a Secured Party under the Uniform Commercial
      Code
      then in effect in the State of New York and as otherwise granted in this
      Agreement or under any other applicable law or under any other loan document
      or
      agreement executed by Pledgor, (all of which rights and remedies shall be
      cumulative), including without limitation the right and power to sell, at public
      or private sale(s), or otherwise dispose of or utilize the Collateral and any
      part(s) of the Collateral in any manner authorized or permitted under this
      Agreement or under the Uniform Commercial Code after default under this
      Agreement, and to apply the proceeds thereof toward payment of any costs,
      attorneys' fees and legal expenses incurred by the Secured Party and toward
      payment of the Obligations. Except as expressly provided herein, and to the
      extent permitted by law, Pledgor waives any notice of sale or other disposition
      of the Collateral and any other rights or remedies of Pledgor or formalities
      prescribed by law relative to sale
      or
      disposition of the Collateral or exercise of any other right or remedy of
      Secured Party existing after default under this Agreement; and to the extent
      any
      notice is required and cannot be waived, Pledgor agrees that if such notice
      is
      mailed, postage prepaid, to Pledgor at the address of Pledgor according to
      the
      records of Secured Party at least 5 days before the time of the sale or
      disposition, the notice shall be deemed reasonable and shall fully satisfy
      any
      requirement for giving of notice.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5.02
      Pledgor's
      Compliance with Laws.
      Pledgor
      agrees to cooperate fully with Secured Party in order to permit Secured Party
      to
      sell, at foreclosure or other private sale, the Collateral.

     

    ARTICLE
      VI - MISCELLANEOUS

     

    6.01 Demand,
      Compromise.
      Secured
      Party may, at its option, when the Obligations become due, demand, sue for,
      collect or make any compromise or settlement it deems desirable with reference
      to the Collateral. The Secured Party shall not be obligated to take any steps
      necessary to preserve any rights in the Collateral against prior parties, which
      Pledgor hereby is assumed to do.

     

    6.02 No
      Implied Waiver.
      No
      delay or omission on the part of Secured Party in exercising any rights shall
      operate as a waiver of any right. A waiver on any one or more occasions shall
      not be construed as a bar to or waiver of any right or remedy on any future
      occasion.

     

    6.03 Usury.
      It is
      the intention of the Pledgor and Secured Party to comply with applicable usury
      law. It is agreed that notwithstanding any provision to the contrary in this
      Agreement, or in any of the documents evidencing the Obligations or otherwise
      relating thereto, no provision shall require the payment or permit the
      collection of interest in excess of the maximum amount permitted by controlling
      usury laws.

     

    6.04 Successors
      and Assigns.
      All
      rights of Secured Party hereunder shall inure to the benefit of its successors
      and assigns; and all obligations of Pledgor shall bind its successors and
      assigns.

     

    6.05 Remedies
      Cumulative.
      The
      rights and remedies of Secured Party hereunder are cumulative, and the exercise
      of any one or more of the remedies provided in this Agreement shall not be
      construed as a waiver of any of the other remedies of Secured
      Party.

     

    6.06 Termination.
      The
      security interest granted to Secured Party by this Agreement and all the terms
      and provisions of this Agreement shall be deemed a continuing security interest
      and shall continue in full force and effect, and all the terms and provisions
      of
      this Agreement shall remain effective among the parties, until (i) complete
      payment and satisfaction by Pledgor of all of the Obligations and (ii) the
      written release of the security interest created by this Agreement by Secured
      Party.

     

    6.7 Other
      Agreements.
      This
      Security Agreement and the security interest granted in this Agreement are
      in
      addition to, and not in substitution, novation or discharge of, any and all
      prior or contemporaneous security agreements and security interests in favor
      of
      Secured Party or assigned to Secured Party by others. All rights, powers and
      remedies of Secured Party in all security agreements are
      cumulative.

     

    6.08 Interpretation.
      Any
      provision of this Agreement found to be invalid under the laws of the State
      of
      Oklahoma, or any other state having jurisdiction or other applicable law, shall
      be invalid only with respect to the offending provision.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6.09 Governing
      Law; Terms.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York. Unless otherwise defined herein, terms defined in Article
      9
      of the Uniform Commercial Code in the State of New York are used herein as
      therein defined.

     

    6.10 General
      Rules of Construction.
      The
      parties have participated jointly in negotiating and drafting this Agreement.
      If
      a question concerning intent or interpretations arises, no presumption or burden
      of proof shall arise favoring or disfavoring any party by virtue of
      authorship.

     

    6.11 Captions.
      Captions in this Agreement are solely for the purposes of identification and
      shall not in any manner alter or vary the interpretation or construction of
      this
      Agreement.

     

    AGREED
      AND EXECUTED effective February ____, 2008.

    
       

      
        
          
            	
                    PLEDGOR:

                  
	 	 
	VYCOR
                    MEDICAL, INC.
	 	 
	
                    By:

                  	
                     

                  
	
                    Name: 

                  	
                     

                  	
                  
	
                    Title:
                      

                  	
                     

                  	
                  

          

           

          
            
              	
                      SECURED
                        PARTY:

                    
	 	 
	
                      REGENT
                        PRIVATE CAPITAL, LLC

                    

            

             

            
              	
                      By: 

                    	
                       

                    
	Name: Lawrence
                      Field
	
                      
                        
                          Title:
                            Managing
                            Director

                        

                      

                    

            

          

        

      

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    DISCLOSURE
      SCHEDULE

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DISCLOSURE
      SCHEDULE

    

    Section
      1.2

     

    Below
      is
      a list of outstanding loans (applicable interest) that is authorized and
      scheduled for repayment out of proceeds from the issuance the
      Debentures

    

      
        	
                Lender/Payee

              	   	
                Principal Payable (excluding
interest)

              	  	
                Date of Payment

              	 
	
                Fountainhead
                  Capital Partners

              	 	
                $

              	
                172,000

              	 	 	
                February,
                  2009

              	 
	
                Optimus
                  Services

              	 	
                $

              	
                50,000

              	 	 	
                April 30, 2008 (proposed date)

              	
                 

              
	
                Optimus
                  Services

              	 	
                $

              	
                50,00

              	 	 	
                June
                  30, 2008 (proposed date)

              	
                 

              
	
                GC
                  Advisors

              	 	
                $

              	
                17,000

              	 	 	
                June
                  30, 2008

              	 

      

    

     

    Attached
      is a list of accounts payable, all of which are reflected in the attached
      budgets for 2008 and 2009, which will be paid during the period of
      February-June, 2008 as approved for payment as and when they come
      due.

     

    
      	 	 	
              Payee

            	 	
              Amount

            	 
	
              February,
                2008

            	 	 	
              CT
                Corp.

            	 	
              $

            	
              1,122.00

            	 
	
               

            	 	 	
              Hunton

            	 	
              $

            	
              9,697.90

            	 
	
               

            	 	 	
              MediMark 

            	 	
              $

            	
              1,750.00

            	 
	
               

            	 	 	
              Online
                Ontime 

            	 	
              $

            	
              848.45

            	 
	
               

            	 	 	
              Robinson
                Brog 

            	 	
              $

            	
              5,000.00

            	 
	
               

            	 	 	
              Lacey 

            	 	
              $

            	
              35,000.00

            	 
	
            	 	 	
              TUV 

            	 	
              $

            	
              700.00

            	 
	
               

            	 	 	
              Lazer Aptheker    

            	 	
              $

            	
              800.00

            	 
	 	 	 	 	 	 	 	 
	
              March,
                2008

            	 	 	
              Lacey

            	 	
              $

            	
              39,000,00

            	 
	
               

            	 	 	
              Robinson
                Brog 

            	 	
              $

            	
              5,000.00

            	 
	
               

            	 	 	
              TUV 

            	 	
              $

            	
              5,000.00

            	 
	
               

            	 	 	
              Intertek

            	 	
              $

            	
              1,019.08

            	 
	 	 	 	 	 	 	 	 
	
              April,
                2008

            	 	 	
              Lacey

            	 	
              $

            	
              43,000.00

            	 
	
               

            	 	 	
              Robinson
                Brog 

            	 	
              $

            	
              5,000.00

            	 
	
               

            	 	 	
              TUV 

            	 	
              $

            	
              1,011.91

            	 
	
               

            	 	 	
              Lazer
                Aptheker 

            	 	
              $

            	
              167.32

            	 
	 	 	 	 	 	 	 	 
	
              May,
                2008

            	 	 	
              Lacey

            	 	
              $

            	
              41,500.00

            	 
	
               

            	 	 	
              Robinson
                Brog 

            	 	
              $

            	
              3,500.00

            	 
	 	 	 	 	 	 	 	 
	June,
              2008	 	 	
              Lacey

            	 	
              $

            	41,500.00	 
	 	 	 	
              Robinson
                Brog

            	 	
              $

            	2,500.00	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      attached 2008 and 2009 monthly budget forecasts (which are identical to the
      2008
      and 2009 budgets previously provided and approved by Regent) are also hereby
      approved and any payments thereunder authorized.

     

    Section
      2.5(c)/Section 2.9

     

    Below
      is
      a
      list of
      outstanding options, warrants, rights (including conversion or preemptive
      rights) or agreements for the purchase or acquisition from the Company of its
      securities, none of which has
      any
      anti-dilution rights or if there were, such rights have been waived in writing,
      and all obligations arising under such agreements will be subordinate to the
      obligations owed to Regent under this Agreement, in the event of a default
      hereunder or under the Debenture or Security Agreement:

     

    
      	 	
              (i)

            	
              The
                outstanding Bridge Loan Debenture dated December 14, 2006 in the
                original
                principal amount of $172,500 with Fountainhead Capital Partners ("FCP"),
                may be converted into approximately 1,876,300 shares of common
                stock.

            

    

    

    
      	
            	(ii)	
              The
                Warrant to Purchase 50.22 Membership Units of the Company (now
                805,931
                shares of the Company's common stock) dated December 15, 2006 at
                $.0975
                per share.

            

    

     

    
      	 	
              (iii)

            	
              The
                investment opportunity granted under the Option Agreement with FCP
                dated
                December 14, 2006 granting an option to invest up to $1,850,000 within
                3
                years from December 14, 2006 in exchange for up to 5,182,012 shares
                of
                common stock and warrants to convert to 2,870,315 shares of common
                stock.

            

    

     

    
      	 	
              (iv)

            	
              Dr.
                Ezriel E. Kornel entered into a consulting agreement with
                Company
                on January 10, 2006. Pursuant to the consulting agreement, in
                consideration for acting as
                our
                consultant, Dr. Kornel received options to acquire 240,720 shares
                of the
                Company's common stock at a price of $.25 per share. The term of
                the
                agreement is for three
                years.

            

    

     

    
      	
            	(v)	
              Dr.
                David Langer entered into an amended and restated consulting agreement
                with the Company on December 11, 2006. Pursuant to the agreement,
                Dr.
                Langer agreed to provide us certain consulting services, which include
                the
                role of our Chief Medical Advisor, assistance in the analysis,
                preparation, submission, publication and presentation of scientific
                data
                in relation to our research efforts ands ales and marketing efforts.
                In
                consideration of such consulting services, Dr. Langer received options
                to
                acquire 320,960 shares of the Company's common stock at a price of
                $.25
                per share. The agreement will terminate April 15,
                2009.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (vi)

            	
              Dr.
                Donald O'Rourke entered into a consulting agreement with the Company
                on
                January 18, 2008. Pursuant to the consulting agreement, Dr. O'Rourke
                shall
                provide consulting or advisory services on an as needed basis, to
                guide us
                in making important strategic decisions and to evaluate our strategic
                plans and decisions, research and/or development activities and results,
                competitive positions and/or other scientific and/or technical issues.
                In
                consideration for providing such services, Dr. Or'Rourke was granted
                an
                option to purchase 50,000 shares of the Company's common stock at
                $.50 per
                share.

            

    

     

    
      	 	
              (vii)

            	
              GC
                Advisors LLC is the holder of two warrants to purchase 192,576 shares
                of
                common stock of the Company each for an purchase price of $.135 per
                share.
                One warrant expires on January 9, 2009 and the other on January 9,
                210.

            

    

     

    
      	 	
              (viii)

            	
              George
                Kivotidis is a holder of a warrant to purchase up to 4,000 shares
                of the
                Company's common stock at $.50 per share. The warrant is valid from
                November 6, 2007 for a period of three
                years.

            

    

     

    
      	 	
              (ix)

            	
              Martin
                Magida is a holder of a warrant to purchase up to 160,480 shares
                of the
                Company's common stock at $.24
                per
                share. The warrant is valid from September 1, 2007 for a period of
                five
                years.

            

    

     

    
      	 	
              (x)

            	
              Bob
                Guinta is a holder of a warrant to purchase up to 160,480 shares
                of the
                Company's common stock at $.24 per share. The warrant is valid from
                September 1, 2007 for a period of five
                years.

            

    

     

    
      	 	
              (xi)

            	
              Each
                of Kenneth Coviello and Heather Jensen entered into a stock option
                agreement with the Company dated February 15, 2008. Pursuant to the
                said
                stock option agreements, each of Kenneth Coviello and Heather Jensen
                was
                granted an option to purchase 500,000 shares of common stock of the
                Company at an exercise price of $.135 per share. The option shall
                vest 33
                1/3% on each of the first, second and third anniversary of the grant
                and
                shall expire February 12, 2018.

            

    

     

    
      	 	
              (xii)

            	
              Guaranty
                dated November 17, 2005 between The Sawmill Trust and Heather Jensen
                as
                Guarantors and Kenneth Coviello, as Beneficiary, guaranteeing an
                advance
                of $30,000.

            

    

     

    
      	 	
              (xiii)

            	
              Guaranty
                dated November 17, 2005 between the Sawmill Trust and Heather Jensen
                as
                Guarantors and Kenneth Coviello, as Beneficiary, guaranteeing an
                advance
                of $14,000.

            

    

    

    Section
      2.10

     

    Please
      refer to the disclosures for Section 1.2, which is incorporated in its entirety
      herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      2.12

    

    Below
      is
      a list of the Company's patents, trademarks, copyrights and domain names and
      pending patent, trademark and copyright applications.

    

    Patent
      Applications

    

      
        	
                Filing
                  date

              	 	
                Application
                  No.

              	 	
                Country

              	 	
                Title

              	 	
                Status

              
	
                22-Jun-2005

              	 	
                60/692,959

              	 	
                US -
provisional

              	 	
                Surgical
                  Access Instruments For Use With Spinal Or Orthopedic Surgery
                  (Cervical)

              	 	
                Converted
                  to PCT

              
	
                22-Jun-2006

              	 	
                PCT/US06/
                  24243

              	 	
                PCT

              	 	
                Surgical
                  Access Instruments For Use With Spinal Or Orthopedic Surgery
                  (Cervical)

              	 	
                Entered
                  National
                  Phase

              
	
                22-Jun-2005

              	 	
                11/155,175

              	 	
                US
                  - utility

              	 	
                Surgical
                  Access Instruments for use with Delicate Tissues (Brain)

              	 	
                Pending

              
	
                27-Nov-2006

              	 	
                PCT/US06/
                  61246

              	 	
                PCT

              	 	
                Surgical
                  Access Instruments for use with Delicate Tissues (Brain)

              	 	
                Pending
                  -National Phase Entry on May 27, 2009

              
	
                22-Jun-2006

              	 	 	 	
                Canada

              	 	
                Surgical
                  Access Instruments for use with spinal or orthopedic surgery
                  .

              	 	
                Pending

              
	
                22-Jun-2006

              	 	
                06785312.7

              	 	
                Europe

              	 	
                Surgical
                  Access Instruments for use with spinal or orthopedic
                  surgery

              	 	
                Pending

              
	
                22-Jun-2006

              	 	 	 	
                India

              	 	
                Surgical
                  Access Instruments for use with spinal or orthopedic
                  surgery

              	 	
                Pending

              
	
                22-Jun-2006

              	 	 	 	
                Israel

              	 	
                Surgical
                  Access Instruments for use with spinal or orthopedic
                  surgery

              	 	
                Pending

              
	
                22-Jun-2006

              	 	 	 	
                Japan

              	 	
                Surgical
                  Access Instruments for use with spinal or orthopedic
                  surgery.

              	 	
                Pending

              
	
                20-Dec-2007

              	 	
                11/993,280

              	 	
                US

              	 	
                Surgical
                  Access Instruments for use with spinal or orthopedic
                  surgery

              	 	
                Pending

              

      

    

     

    Trademarks

     

    VYCOR
      MEDICAL and VYCOR SAFESITE are both pending with the USPTO. Before they are
      registered a Statement of Use needs to be filed.

     

    Section
      2.17

     

    The
      Company has entered into the broker agreements listed below. All potential
      payments due under the listed broker agreements have been included in the 2008
      and/or 2009 budgets attached hereto:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    GC
      Advisors, LLC dated July 6, 2006, as amended and restated on September 20,
      2006
      and on November 27, 2006, which was terminated by email correspondence dated
      January 25,2008.

    

    Fee
      Agreement with GC Advisors, LLC (d/b/a Oak Street Advisors and RES Holding
      dated
      November 16, 2006.

    

    Engagement
      Letter with Murphy and Durieu dated September 11, 2007, which has been settled
      and released pursuant to a Settlement and Release of Claims dated November
      12,
      2007.

    

    Financial
      Advisory Agreement with the Concordia Financial Group dated January 18,
      2008.

    

    Section
      2.20

    

    D&O
      Policy for Company with Philadelphia Insurance Companies, with a policy period
      from 6/5/07 to 6/5/08, policy no. PHS246271.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      EXHIBIT
        D

       

      FORM
        OF
        ASSIGNMENT
        OF RIGHTS

       

    

    
      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

          Assignment
            of Rights

          Under
            Warrant and

          Under
            Option Agreement

        

      

       

      This
        Assignment ("Assignment") is made and entered into by and among Fountainhead
        Capital Partners Limited ("Assignor")
        and Regent
        Private Capital, LLC ("Assignee"),
        and, solely for the purpose of evidencing its consent to the assignments
        provided below, Vycor
        Medical, Inc. ("Vycor")

       

      WHEREAS,
        Assignor is a party to (i) an Option Agreement with Vycor Medical, LLC, the
        predecessor in interest to Vycor, dated December 14, 2006 ("Option Agreement"),
        and (ii) a Warrant to Purchase Membership Units of Vycor Medical, LLC dated
        December 15, 2006 ("Warrant"), and

       

      WHEREAS,
        in accordance with the agreement of Assignee to provide certain additional
        funds
        to Vycor pursuant to a Convertible Debenture Purchase Agreement ("Purchase
        Agreement") dated of even date herewith by and between Assignee and Vycor,
        one
        of the conditions to the closing of the funding contemplated thereby is the
        assignment by Assignor to Assignee of the contractual rights more fully
        described herein, and

       

      WHEREAS,
        as a current investor in Vycor, Assignor will receive substantial benefit
        from
        the provision of additional funds by Assignee pursuant to the Purchase
        Agreement, and Assignor desires to convey to Assignee the contractual rights
        described herein;

       

      NOW,
        THEREFORE, for and in consideration of the mutual covenants contained herein,
        and other valuable consideration, the receipt and sufficiency of which is
        hereby
        acknowledged and confessed, Assignor and Assignee hereby agree as
        follows:

       

      1.
        Assignment.
        Effective as of the date hereof, Assignor hereby assigns and transfers to
        Assignee, and Assignee hereby acquires from Assignor, an undivided fifty
        percent
        (50%) interest in Assignor's right, title and interest in and to the Option
        Agreement and the Warrant.

       

      By
        reason
        of this Assignment, Assignor is assigning to Assignee the rights under the
        Warrant to acquire fifty-percent (50%) of the underlying securities issuable
        upon exercise of the Warrant (originally, 50.22 units of limited liability
        company interest, now adjusted to reflect 805,931 shares of common stock
        as a
        result of the conversion of Vycor from a limited liability company to a
        corporation).

       

      By
        reason
        of this Assignment, Assignor is assigning to Assignee an undivided fifty
        percent
        (50%) interest in its rights under the Option Agreement, pursuant to which
        Vycor
        has granted Assignor the rights to make future investments in Vycor in
        accordance with the terms thereof.

       

      Assignor
        represents and warrants to Assignee that, apart from Assignor's rights under
        the
        Bridge Loan Debenture dated December 14, 2006 (as amended, to extend the
        maturity date thereof) in the original principal amount of $172,500, Assignor
        and the Security Agreement between Vycor and Assignor dated December 14,
        2006,
        has no other rights to acquire any rights or interests in Vycor other than
        as
        contemplated in the Option Agreement and Warrant.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      2. Consent
        of Vycor.
        By its
        execution of this Agreement in the space indicated below, Vycor hereby consents
        to the assignment evidenced hereby.

       

      3. Substitute
        Documents.
        To
        avoid confusion in the future regarding the specific rights of Assignor and
        Assignee, Vycor further agrees to provide to each of Assignor and Assignee,
        upon
        proper transmittal by Assignor of the original Warrant and Option Agreement
        to
        Vycor, with separate Warrants and Option Agreements, containing the same
        terms
        and conditions, but otherwise reflecting the reduced (i.e. half) interest
        of
        each of Assignor and Assignee with respect to the rights that will be held
        by
        each subsequent to this Assignment.

       

      4. Further
        Actions.
        Assignor covenants and agrees to warrant and defend the sale, transfer,
        assignment, conveyance, grant and delivery of the portion of its interest
        in the
        Warrant and the Option Agreement evidenced hereby against all persons
        whomsoever, to take all steps reasonably necessary to establish the record
        of
        Assignee's interest therein and, at the request of Assignee or Vycor, to
        execute
        and deliver further instruments of transfer and assignment and take such
        other
        action as Assignee or Vycor may reasonably request to more effectively transfer
        and assign to and vest in Assignee the interests intended to be conveyed
        hereby.

       

      EXECUTED
        on this ____ day of February, 2008.

      

      Signatures
        and Consent Appear on Following Page

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

        
          
            	
                    ASSIGNOR:

                  
	 
	
                    Fountainhead
                      Capital Partners Limited

                  
	 
	
                    By:

                  	 
	
                    Name: 

                  	 
	
                    Title:

                  	
                     

                  
	 	 
	 	 
	
                    ASSIGNEE:

                  
	 
	Regent
                    Private Capital LLC
	 
	
                    By:

                  	 
	
                    Name:

                  	
                    Lawrence
                      Field

                  
	
                    Title:

                  	
                    Managing
                      Director

                  

          

        

         

      

       Any
        and
        all necessary consents to the assignment evidenced hereby are given as of
        the
        date set forth above. The undersigned officer has full authority and power
        to
        execute this Assignment on behalf of Vycor Medical, Inc.

       

      
        
          	
                  VYCOR:

                
	 
	Vycor
                  Medical, Inc.
	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          E

         

        FORM
          OF INTRACREDITOR CONFIRMATION AND AGREEMENT

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INTRACREDITOR
        CONFIRMATION AND AGREEMENT

       

      THIS
        INTRACREDITOR CONFIRMATION AND AGREEMENT ("Confirmation") is made and effective
        this ___ day of February, 2008, by and between Fountainhead
        Capital Partners Limited ("Fountainhead")
        and Regent
        Private Capital, LLC ("Regent")

       

      WHEREAS,
        Fountainhead has previously made a certain investment of funds in Vycor Medical
        Inc. ("Vycor") as evidenced by (i) that certain Bridge Loan Debenture dated
        December 14, 2006 (as amended, to extend the maturity date thereof), in the
        original principal amount of $172,500 ("FCP
        Debenture");
        (ii)
        that certain Warrant to Purchase 50.22 Membership Units of the Company (now
        805,931 shares of the Company's common stock) dated December 15, 2006 (the
        "FCP
        Warrant");
        and
        (iii) that certain Option Agreement with FCP dated December 14, 2006
        ("FCP
        Option");
        and,

       

      WHEREAS,
        the FCP Debenture is secured by a security interest in certain collateral,
        in
        favor of Fountainhead created and granted by a Security Agreement between
        Vycor
        and Fountainhead dated December 14, 2006 ("Security Agreement"), and certain
        financing statements that may have been filed in connection therewith
        (collectively, with the Security Agreement, the "Security Documents");
        and

       

      WHEREAS,
        Fountainhead has agreed to make available to Vycor up to an additional $300,000,
        which amount will also be secured by the Security Agreement and the Security
        Documents; and,

       

      WHEREAS,
        Regent has now agreed, pursuant to the terms of a certain Convertible Debenture
        Purchase Agreement dated of even date herewith ("Purchase Agreement") to
        provide
        an additional $1,000,000 of funding to Vycor, to be evidenced by two essentially
        identical Convertible Debentures each in the original principal amount of
        $500,000 ("Regent Debentures"); and

       

      WHEREAS,
        to satisfy Regent's requirement that the Regent Debentures be secured by
        a first
        priority security interest in Vycor's assets, Fountainhead desires to confirm
        and evidence its agreement to subordinate the security interest in Vycor's
        assets from its existing first priority security interest, to a security
        interest equal to and pari passu with the security interest granted to Regent
        as
        a part of the transactions contemplated by the Purchase Agreement;
        and

       

      NOW,
        THEREFORE, in consideration of the premises, the parties hereby agree, confirm
        and certifies as follows:

       

      1. Liens
        of Fountainhead of Equal Priority with Regent Security Interest.
        Fountainhead hereby confirms that Fountainhead's security interests and liens
        in
        and upon the assets of Vycor granted pursuant to the Security Agreement or
        otherwise, are and shall hereafter be and remain of equal seniority and
        priority, and be treated for all purposes on a pari passu basis, with the
        security interests and liens in and upon the assets of Vycor granted to Regent
        pursuant to the transactions contemplated by the Purchase
        Agreement.

       

      2. Liens
        of Regent of Equal Priority with Fountainhead's Security
        Interest.
        Regent
        hereby confirms that Regent's security interests and liens in and upon the
        assets of Vycor granted pursuant to the Purchase Agreement, the Regent
        Debentures and the Security Agreement between Regent
        and Vycor dated of even date with the first issued Regent Debenture or
        otherwise, are and shall hereafter be and remain of equal seniority and
        priority, and be treated for all purposes on a pari passu basis, with the
        security interests and liens in and upon the assets of Vycor granted to
        Fountainhead pursuant to the Security Agreement and the transactions
        contemplated by the FCP Debenture.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      3. Remedies.
        Notwithstanding the confirmation regarding the priorities provided herein,
        nothing herein shall be deemed to affect the rights of either Fountainhead
        or
        Regent under their respective agreements with Vycor as such rights may relate
        to
        their abilities to declare a default by Vycor or seek remedies against Vycor
        for
        such default; provided that in such event, either Fountainhead or Regent,
        as the
        case may be, shall notify the other, at the address indicated next to their
        respective signatures, and in the event either such party forecloses on any
        collateral of Vycor and/or sells, leases, transfers, or otherwise disposes
        of
        any such collateral, all proceeds thereof (net of all reasonable expenses
        incurred in connection with the marshalling and sale of such collateral)
        shall
        be shared equally between Fountainhead and Regent.

       

      4. Extent
        of Priorities.
        The
        priorities specified herein shall remain in full force and effect, regardless
        of
        whether either Fountainhead or Regent rescinds, amends, waives any provision
        of,
        terminates or reforms, by litigation or otherwise, any of the documents
        evidencing the respective advance of funds to Vycor. No delay or waiver on
        the
        part of either Fountainhead or Regent in exercising any right, power or
        privilege granted under any of their agreements with Vycor shall have any
        effect
        on the equal priorities specified herein.

       

      5. Amendment
        of Financing Statements.
        If
        requested by Regent, Fountainhead agrees to file amended financing statements
        in
        each jurisdiction where a current financing statement perfecting its security
        interest in Vycor's assets is currently filed, to reflect the equal priorities
        of this Agreement.

       

      6. Term.
        This
        Confirmation will be for a term beginning on the effective date hereof and
        continuing through the payment and performance in full of all of Vycor's
        obligations to each of Regent and Fountainhead.

       

      7. Amendment.
        This
        Confirmation shall not be amended except in writing by Fountainhead and
        Regent.

       

      8. Successors
        and Assigns.
        This
        Confirmation shall be binding the parties hereto and their respective successors
        and assigns.

       

      IN
        WITNESS WHEREOF, this Confirmation has been duly authorized and executed
        by each
        party as of the date first above written.

       

      Signatures
        on following page

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    REGENT

                  
	 
	
                    REGENT
                      PRIVATE CAPITAL, LLC

                  
	 
	
                    By:

                  	 
	 	Lawrence
                    Field, Managing Director

          

          
          

           

          
            	
                    Address:

                     

                  
	152
                    West 57th Street, 9th Floor
New York, New York
                    10019

          

           

        

      

      
        
          
            	
                    FOUNTAINHEAD

                  
	 
	
                    FOUNTAINHEAD
                      CAPITAL PARTNERS

                    LIMITED

                  
	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

           

          
            	Address: 	 
	  

          

           

        

      

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        F

       

      FORM
        OF
        LOCKUP
        AGREEMENT

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

LOCK-UP
        AGREEMENT

       

      February
        _____,
        2008

      

      Regent
        Private Capital, LLC

      152
        West
        57th Street, 9th Floor

      New
        York,
        New York 10019

      

      Ladies
        and Gentlemen:

       

      The
        undersigned understands that Regent Private Capital, LLC ("Regent") proposes
        to
        enter into a Convertible Debenture Purchase Agreement ("Purchase Agreement")
        with Vycor Medical, Inc. (the "Company") providing for the investment by
        Regent
        of $1,000,000 pursuant to two essentially identical $500,000 principal amount
        Convertible Debentures (the "Debentures").

       

      In
        consideration of the agreement by Regent to make the investment in the Company
        evidenced by the Debentures, and other good and valuable consideration, the
        receipt and sufficiency of which are hereby acknowledged, the undersigned
        agrees
        that he, she or it will not, directly or indirectly, sell, offer to sell,
        contract to sell, grant any option for the sale of, grant any security interest
        in, pledge, hypothecate, or otherwise sell or dispose of any of the common
        stock, or any options or warrants to purchase any common stock, or any
        securities convertible into or exchangeable for common stock, or any interest
        in
        such securities or rights, owned directly by the undersigned or with respect
        to
        which the undersigned has the power of disposition, in any such case whether
        now
        owned or hereafter acquired, other than (i) as a bona fide gift or gifts,
        provided that the undersigned provides prior written notice of such gift
        or
        gifts to Regent and the donee or donees thereof agree to be bound by the
        restrictions set forth herein, (ii) intra-family transfers or transfers for
        estate planning purposes, provided that the undersigned provides prior written
        notice of such transfer or bequest, and such transferee or beneficiary agrees
        to
        be bound by the terms hereof, (iii) in the sale or exchange of the undersigned's
        stock in connection with a merger of the Company with a third party, the
        sale of
        all or substantially all of the Company's assets to a third party or the
        sale or
        exchange of the undersigned's shares pursuant to a bona fide third party
        tender
        offer, any of which has been approved by Regent, (iv) with the prior written
        consent of Regent (which consent can be withheld in Regent's sole discretion),
        or (v) as otherwise allowed in accordance with the following
        schedule:

    

     

    

      
        	
                Period

              	     	
                Percent of Securities That May be Transferred

              	 
	 	 	 	 
	
                From
                  Closing through the first anniversary of Closing

              	 	 	
                0

              	
                %

              
	 	 	 	 	 
	
                First
                  anniversary of Closing to second anniversary of Closing

              	 	 	
                25

              	
                %

              
	 	 	 	 	 
	
                Second
                  anniversary of Closing to third anniversary of Closing

              	 	 	
                25

              	
                %

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Regent
        Private Capital, LLC

    

    February
      ____,
      2008

    Page
      2

     

    After
      the
      third anniversary of the Closing, this Lock-Up Agreement and all restrictions
      on
      transfer imposed hereby shall terminate.

     

    The
      undersigned also agrees and consents to the entry of stop transfer instructions
      with the Company's transfer agent and registrar against the transfer of any
      of
      the common stock held by the undersigned except in compliance with the foregoing
      restrictions. Regent may in its sole discretion without notice, release all
      or
      any portion of the securities subject to this Lock-Up Agreement or any similar
      agreement executed by any other security holder, and if Regent releases any
      securities of any other security holder, securities of the undersigned shall
      not
      by virtue thereof be entitled to a release from this Lock-Up
      Agreement.

     

    In
      the
      event that the undersigned owns no common stock of the Company at the date
      hereof but prior to the termination of this Lock-Up Agreement has the right
      to
      acquire common stock of the Company pursuant to options or warrants, and if
      the
      undersigned exercises such options or warrants while this Lock-Up Agreement
      is
      effective, he, she or it agrees that the common stock purchased on such exercise
      of options or warrants will be subject to the terms of this Lock-Up Agreement
      for the remaining portion thereof, as if commenced on the date of
      Closing.

     

    The
      undersigned understands that the Company and Regent will undertake the
      transactions contemplated by the Purchase Agreement in reliance upon this
      Lock-Up Agreement.

    
       

      
        
          	
                  Very
                    truly yours,

                
	 	 
	
                  By: 

                	 

        

         

        
          	Print Name: 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

          SCHEDULE
            6.2

           

          ACTIONS
            PROHIBITED WITHOUT MINORITY APPROVAL

        

      

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        SCHEDULE
          6.2

         

        ACTIONS
          PROHIBITED WITHOUT MINORITY APPROVAL

      

    

     

    (a) Sell,
      exchange or otherwise transfer all or substantially all of the Company's
      assets.

     

    (b) Cause
      the
      Company to merge or consolidate with or into another limited liability company,
      corporation, partnership, limited partnership or other entity.

     

    (c) Issue
      any
      additional equity interests in the Company, except for equity issued pursuant
      to
      the conversion of the Debentures, the FCP Debenture, the FCP Option or the
      FCP
      Warrants, or otherwise cause an exchange, reclassification or cancellation
      of
      any equity securities of the Company, or change any rights, preferences or
      privileges or restructuring thereof, or the creation of a new class of
      securities which ranks senior to the existing common stock.

     

    (d) Borrow
      money or otherwise obligate the Company on any form of indebtedness or guaranty
      in excess of $10,000 not in the ordinary course of business;

     

    (e) Adopt,
      execute or accept any agreement on behalf of the Company which is not terminable
      at will and which over its normal course, would obligate the Company to make
      payments of cash and/or property having an aggregate value in excess of $100,000
      other
      than
      in
      accordance with a budget approved by Regent.

     

    (f) Enter
      into any transaction with an affiliate of any stockholder, member of the Board
      of Directors, or officer of the Company;

     

    (g) As
      soon
      as reasonably practical the Company shall cause its Board of Directors to
      appoint a compensation committee which shall consist of a majority of
      independent directors (as defined in Rule 303A.02 of he New York Stock Exchange
      rules applicable to listed companies).

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