Document:

Unassociated Document

     

     

    INDYMAC
      ABS, INC.,

    Depositor

     

    INDYMAC
      BANK, F.S.B.,

    Seller
      and Servicer

     

    And

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY

    Trustee

     

    POOLING
      AND SERVICING AGREEMENT

     

    DATED
      AS
      OF DECEMBER 1, 2006

     

    ______________________________

     

    INDYMAC
      RESIDENTIAL MORTGAGE-BACKED TRUST, SERIES 2006-L4

     

    RESIDENTIAL
      MORTGAGE-BACKED CERTIFICATES, SERIES 2006-L4

     

     

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Table
      of Contents

     

    

    
      	
              ARTICLE
                I 

              DEFINITIONS

               

            
	
              Section
                1.01.

            	
              Defined
                Terms.

            
	
              Section
                1.02.

            	
              Allocation
                of Certain Interest Shortfalls.

            
	
              Section
                1.03.

            	
              Accounting.

               

            
	
              ARTICLE
                II 

              CONVEYANCE
                OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

               

            
	
              Section
                2.01.

            	
              Conveyance
                of Mortgage Loans.

            
	
              Section
                2.02.

            	
              Acceptance
                by Trustee.

            
	
              Section
                2.03.

            	
              Repurchase
                or Substitution of Mortgage Loans by the Seller.

            
	
              Section
                2.04.

            	
              Conveyance
                of Subsequent Mortgage Loans.

            
	
              Section
                2.05.

            	
              Representations,
                Warranties and Covenants of the Servicer.

            
	
              Section
                2.06.

            	
              Representations
                and Warranties of the Depositor.

            
	
              Section
                2.07.

            	
              Issuance
                of Certificates.

            
	
              Section
                2.08.

            	
              Conveyance
                of REMIC 1 Regular Interests and Acceptance of REMIC 2 by
                Trustee.

            
	
              Section
                2.09.

            	
              Purposes
                and Powers of the Trust.

               

            
	
              ARTICLE
                III 

              ADMINISTRATION
                AND SERVICING OF THE MORTGAGE LOANS

               

            
	
              Section
                3.01.

            	
              Servicer
                to Act as Servicer.

            
	
              Section
                3.02.

            	
              Sub-Servicing
                Agreements Between Servicer and Sub-Servicers; Special
                Servicing.

            
	
              Section
                3.03.

            	
              Successor
                Sub-Servicers.

            
	
              Section
                3.04.

            	
              Liability
                of the Servicer.

            
	
              Section
                3.05.

            	
              No
                Contractual Relationship Between Sub-Servicers and the Trustee or
                Certificateholders.

            
	
              Section
                3.06.

            	
              Assumption
                or Termination of Sub-Servicing Agreements by Trustee.

            
	
              Section
                3.07.

            	
              Collection
                of Certain Mortgage Loan Payments.

            
	
              Section
                3.08.

            	
              Sub-Servicing
                Accounts.

            
	
              Section
                3.09.

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

            
	
              Section
                3.10.

            	
              Certificate
                Account; Distribution Account.

            
	
              Section
                3.11.

            	
              Withdrawals
                from the Certificate Account and Distribution Account.

            
	
              Section
                3.12.

            	
              Investment
                of Funds in the Certificate Account and the Distribution
                Account.

            
	
              Section
                3.13.

            	
              [Reserved].

            
	
              Section
                3.14.

            	
              Maintenance
                of Errors and Omissions and Fidelity Coverage.

            
	
              Section
                3.15.

            	
              Enforcement
                of Due-On-Sale Clauses; Assumption Agreements.

            
	
              Section
                3.16.

            	
              Realization
                Upon Defaulted Mortgage Loans.

            
	
              Section
                3.17.

            	
              Trustee
                to Cooperate; Release of Mortgage Files.

            
	
              Section
                3.18.

            	
              Servicing
                Compensation.

            
	
              Section
                3.19.

            	
              Reports
                to the Trustee; Certificate Account Statements.

            
	
              Section
                3.20.

            	
              Statement
                as to Compliance.

            
	
              Section
                3.21.

            	
              Assessments
                of Compliance and Attestation Reports.

            
	
              Section
                3.22.

            	
              Commission
                Reporting.

            
	
              Section
                3.23.

            	
              Pre-Funding
                Account.

            
	
              Section
                3.24.

            	
              Access
                to Certain Documentation.

            
	
              Section
                3.25.

            	
              Title,
                Maintenance and Disposition of REO Property.

            
	
              Section
                3.26.

            	
              Obligations
                of the Servicer in Respect of Prepayment Interest Shortfalls.

            
	
              Section
                3.27.

            	
              Interest
                Coverage Account.

            
	
              Section
                3.28.

            	
              Obligations
                of the Servicer in Respect of Mortgage Rates and Monthly
                Payments.

            
	
              Section
                3.29.

            	
              Excess
                Reserve Fund Account.

            
	
              Section
                3.30.

            	
              Prepayment
                Charges

               

            
	
              ARTICLE
                IV 

              FLOW
                OF FUNDS

               

            
	
              Section
                4.01.

            	
              Distributions.

            
	
              Section
                4.02.

            	
              Statements.

            
	
              Section
                4.03.

            	
              Remittance
                Reports; Advances.

            
	
              Section
                4.04.

            	
              Distributions
                on the REMIC Regular Interests.

            
	
              Section
                4.05.

            	
              Allocation
                of Realized Losses.

            
	
              Section
                4.06.

            	
              The
                Policy.

               

            
	
              ARTICLE
                V 

              THE
                CERTIFICATES

               

            
	
              Section
                5.01.

            	
              The
                Certificates.

            
	
              Section
                5.02.

            	
              Registration
                of Transfer and Exchange of Certificates.

            
	
              Section
                5.03.

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            
	
              Section
                5.04.

            	
              Persons
                Deemed Owners.

            
	
              Section
                5.05.

            	
              Appointment
                of Paying Agent.

               

            
	
              ARTICLE
                VI 

              THE
                SERVICER AND THE DEPOSITOR

               

            
	
              Section
                6.01.

            	
              Liability
                of the Servicer and the Depositor.

            
	
              Section
                6.02.

            	
              Merger
                or Consolidation of, or Assumption of the Obligations of, the Servicer
                or
                the Depositor.

            
	
              Section
                6.03.

            	
              Limitation
                on Liability of the Servicer and Others.

            
	
              Section
                6.04.

            	
              Servicer
                Not to Resign.

            
	
              Section
                6.05.

            	
              Delegation
                of Duties.

            
	
              Section
                6.06.

            	
              Inspection.

               

            
	
              ARTICLE
                VII 

              DEFAULT

               

            
	
              Section
                7.01.

            	
              Servicer
                Events of Termination.

            
	
              Section
                7.02.

            	
              Trustee
                to Act; Appointment of Successor.

            
	
              Section
                7.03.

            	
              Waiver
                of Defaults.

            
	
              Section
                7.04.

            	
              Notification
                to Certificateholders.

            
	
              Section
                7.05.

            	
              Survivability
                of Servicer Liabilities.

               

            
	
              ARTICLE
                VIII 

              THE
                TRUSTEE

               

            
	
              Section
                8.01.

            	
              Duties
                of Trustee.

            
	
              Section
                8.02.

            	
              Certain
                Matters Affecting the Trustee.

            
	
              Section
                8.03.

            	
              Trustee
                Not Liable for Certificates or Mortgage Loans.

            
	
              Section
                8.04.

            	
              Trustee
                May Own Certificates.

            
	
              Section
                8.05.

            	
              Trustee
                Fee and Expenses.

            
	
              Section
                8.06.

            	
              Eligibility
                Requirements for Trustee.

            
	
              Section
                8.07.

            	
              Resignation
                or Removal of Trustee.

            
	
              Section
                8.08.

            	
              Successor
                Trustee.

            
	
              Section
                8.09.

            	
              Merger
                or Consolidation of Trustee.

            
	
              Section
                8.10.

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            
	
              Section
                8.11.

            	
              Limitation
                of Liability.

            
	
              Section
                8.12.

            	
              Trustee
                May Enforce Claims Without Possession of Certificates.

            
	
              Section
                8.13.

            	
              Suits
                for Enforcement.

            
	
              Section
                8.14.

            	
              Waiver
                of Bond Requirement.

            
	
              Section
                8.15.

            	
              Waiver
                of Inventory, Accounting and Appraisal Requirement.

            
	
              Section
                8.16.

            	
              Reserved.

            
	
              Section
                8.17.

            	
              Access
                to Records of Trustee.

               

            
	
              ARTICLE
                IX 

              REMIC
                ADMINISTRATION

               

            
	
              Section
                9.01.

            	
              REMIC
                Administration.

            
	
              Section
                9.02.

            	
              Prohibited
                Transactions and Activities.

            
	
              Section
                9.03.

            	
              Indemnification
                with respect to Certain Taxes and Loss of REMIC Status.

               

            
	
              ARTICLE
                X 

              TERMINATION

               

            
	
              Section
                10.01.

            	
              Termination.

            
	
              Section
                10.02.

            	
              Additional
                Termination Requirements.

               

            
	
              ARTICLE
                XI 

              MISCELLANEOUS
                PROVISIONS

               

            
	
              Section
                11.01.

            	
              Amendment.

            
	
              Section
                11.02.

            	
              Recordation
                of Agreement; Counterparts.

            
	
              Section
                11.03.

            	
              Limitation
                on Rights of Certificateholders.

            
	
              Section
                11.04.

            	
              Governing
                Law; Jurisdiction.

            
	
              Section
                11.05.

            	
              Notices.

            
	
              Section
                11.06.

            	
              Severability
                of Provisions.

            
	
              Section
                11.07.

            	
              Article
                and Section References.

            
	
              Section
                11.08.

            	
              Notice
                to the Rating Agencies and the Certificate Insurer.

            
	
              Section
                11.09.

            	
              Further
                Assurances.

            
	
              Section
                11.10.

            	
              Benefits
                of Agreement.

            
	
              Section
                11.11.

            	
              Acts
                of Certificateholders.

            
	
              Section
                11.12.

            	
              Grant
                of Security Interest.

            
	
              Section
                11.13.

            	
              Official
                Record.

            
	
              Section
                11.14.

            	
              Protection
                of Assets.

            
	
              Section
                11.15.

            	
              Qualifying
                Special Purpose Entity.

            
	
              Section
                11.16.

            	
              Rights
                of the Certificate Insurer.

            
	 	 
	 	 
	
              EXHIBITS:

            	 
	 	 
	
              Exhibit
                A-1

            	
              Form
                of Class A Certificates

            
	
              Exhibit
                A-2

            	
              Form
                of Class IO Certificate

            
	
              Exhibit
                A-3

            	
              Form
                of Class M Certificate

            
	
              Exhibit
                A-4

            	
              Form
                of Class B Certificate

            
	
              Exhibit
                A-5

            	
              Form
                of Class C Certificate

            
	
              Exhibit
                A-6

            	
              Form
                of Class R Certificate

            
	
              Exhibit
                A-7

            	
              Form
                of Class P Certificate

            
	
              Exhibit
                B

            	
              Copy
                of Certificate Guaranty Insurance Policy with respect to the Insured
                Certificates

            
	
              Exhibit
                C

            	
              Form
                of Mortgage Loan Purchase Agreement

            
	
              Exhibit
                D

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                E

            	
              Form
                of Request for Release of Documents

            
	
              Exhibit
                F-1

            	
              Form
                of Trustee’s Initial Certification

            
	
              Exhibit
                F-2

            	
              Form
                of Trustee’s Final Certification

            
	
              Exhibit
                F-3

            	
              Form
                of Receipt of Mortgage Note

            
	
              Exhibit
                G

            	
              Reserved
                

            
	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            
	
              Exhibit
                I

            	
              Form
                of Certification with respect to ERISA and the Code

            
	
              Exhibit
                J

            	
              Form
                of Investment Letter

            
	
              Exhibit
                K

            	
              Reserved

            
	
              Exhibit
                L

            	
              Form
                of Transferor Certificate

            
	
              Exhibit
                M

            	
              Form
                of Class R Certificate Transfer Affidavit

            
	
              Exhibit
                N

            	
              Reserved

            
	
              Exhibit
                O-1

            	
              Depositor
                Certification

            
	
              Exhibit
                O-2

            	
              Trustee
                Certification

            
	
              Exhibit
                P

            	
              Addition
                Notice

            
	
              Exhibit
                Q

            	
              Subsequent
                Transfer Instrument

            
	
              Exhibit
                R

            	
              Servicing
                Criteria

            
	
              Exhibit
                S

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

            

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Pooling and Servicing Agreement is dated as of December 1, 2006 (the
“Agreement”), among INDYMAC ABS, INC., as depositor (the “Depositor”), INDYMAC
      BANK, F.S.B., as seller and servicer (the “Seller” and “Servicer”, as
      applicable) and DEUTSCHE BANK NATIONAL TRUST COMPANY, as trustee (the
“Trustee”).

     

    PRELIMINARY
      STATEMENT:

     

    The
      Depositor intends to sell pass-through certificates (collectively, the
“Certificates”), to be issued hereunder in multiple classes, which Certificates
      in the aggregate will evidence the entire beneficial ownership interest in
      the
      Trust Fund created hereunder. The Certificates will consist of seven classes
      of
      certificates, designated as (i) the Class A Certificates, (ii) the Class IO
      Certificates, (iii) the Class M Certificates, (iv) the Class B Certificates,
      (v)
      the Class C Certificates, (vi) the Class P Certificates and (vii) the Class
      R
      Certificates.

     

    REMIC
      1

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the Mortgage Loans and certain other related assets
      subject to this Agreement (exclusive of the Pre-Funding Account, the Interest
      Coverage Account, the Excess Reserve Fund Account and the other assets
      identified as excluded in accordance with the definition of “REMIC 1” herein) as
      a real estate mortgage investment conduit (a “REMIC”) for federal income tax
      purposes, and such segregated pool of assets will be designated as “REMIC 1.”
The Class R-1 Interest represents the sole class of “residual interests” in
      REMIC 1 for purposes of the REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      1 Pass-Through Rate, the initial Uncertificated Principal Balance, and for
      purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each of the REMIC 1 Regular Interests. None
      of the REMIC 1 Regular Interests will be certificated.

     

    
      	
              Designation

            	
              Uncertificated
                

              REMIC
                1

              Pass-Through
                Rate

            	
              Initial
                Uncertificated

              Principal
                Balance

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              LT1AA

            	
              Variable(2)

            	
              $156,800,000.00
                

            	
              August
                25, 2012

            
	
              LT1A

            	
              Variable(2)

            	
              $1,568,800.00
                

            	
              August
                25, 2012

            
	
              LT1M

            	
              Variable(2)

            	
              $11,200.00
                

            	
              August
                25, 2012

            
	
              LT1B

            	
              Variable(2)

            	
              $20,000.00
                

            	
              August
                25, 2012

            
	
              LT1ZZ

            	
              Variable(2)

            	
              $1,600,000.00
                

            	
              August
                25, 2012

            
	
              LT1P

            	
              Variable(2)

            	
              $100.00
                

            	
              August
                25, 2012

            

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                earlier of (a) August 25, 2012 and (b) the expiration of 21 years
                from the
                death of the last survivor of the descendants of Joseph P. Kennedy,
                the
                late ambassador of the United States to the Court of St. James’s, living
                on the date hereof has been designated as the “latest possible maturity
                date” for each Uncertificated REMIC 1 Regular
                Interest.

            

    

    (2)  
       Calculated
      in accordance with the definition of “Uncertificated REMIC 1 Pass-Through Rate”
herein.

    .

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      2

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 1 Regular Interests as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC 2.” The Class R-2 Interest represents the sole class of “residual
      interests” in REMIC 2 for purposes of the REMIC Provisions.

     

    The
      following table sets forth (or describes) the Class designation, Pass-Through
      Rate and initial Certificate Principal Balance for each Class of Certificates
      or
      REMIC 2 Regular Interest that represents one or more of the “regular interests”
in REMIC 2 created hereunder:

    

    
      	
              Designation

            	
              Pass-Through

              Rate

            	
              Initial

              Certificate
                Principal

              Balance

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              Class
                A

            	
              Variable(2)

            	
              $
                156,880,000.00

            	
              August
                25, 2012

            
	
              Class
                M

            	
              Variable(2)

            	
              $   
                 1,120,000.00

            	
              August
                25, 2012

            
	
              Class
                B

            	
              Variable(2)

            	
              $   
                 2,000,000.00

            	
              August
                25, 2012

            
	
              Class
                C Interest

            	
              Variable(3)

            	
              $                    0.00

            	
              August
                25, 2012

            
	
              Class
                P Interest

            	
              NA

            	
              $              
                 100.00

            	
              August
                25, 2012

            
	 	 	 	 

    

    __________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                earlier of (a) August 25, 2012 and (b) the expiration of 21 years
                from the
                death of the last survivor of the descendants of Joseph P. Kennedy,
                the
                late ambassador of the United States to the Court of St. James’s, living
                on the date hereof has been designated as the “latest possible maturity
                date” for each Class of Certificates that represents one or more of the
                “regular interests” in REMIC 2.

            

    

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

    
      	
              (3)

            	
              The
                Class C Interest will accrue interest at its variable Pass-Through
                Rate on
                its Uncertificated Notional Amount outstanding from time to time
                which
                shall equal the aggregate Uncertificated Principal Balance of the
                REMIC 1
                Regular Interests (other than the REMIC 1 Regular Interest LT1P).
                The
                Class C Interest will not accrue interest on its Certificate Principal
                Balances.

            

    

     

    

     

    REMIC
      3

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the Class C Interest and the Class P Interest as a
      REMIC
      for federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC 3.” The Class R-3 Interest represents the sole class of
“residual interests” in REMIC 3 for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth (or describes) the Class designation, Pass-Through
      Rate and initial Certificate Principal Balance or Notional Amount for each
      Class
      of Certificates that represents one or more of the “regular interests” in REMIC
      3 created hereunder:

    

    

    
      	
              Designation

            	
              Pass-Through

              Rate

            	
              Initial

              Certificate
                Principal

              Balance/Notional
                Amount

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              Class
                IO

            	
              (2)

            	
                 
                $ 160,000,000.00(4)

            	
              December
                25, 2008

            
	
              Class
                C

            	
              Variable(3)

            	
              $                     0.00

            	
              August
                25, 2012

            
	
              Class
                P

            	
              NA

            	
              $               
                 100.00

            	
              August
                25, 2012

            
	 	 	 	 

    

    __________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                earlier of (a) August 25, 2012 and (b) the expiration of 21 years
                from the
                death of the last survivor of the descendants of Joseph P. Kennedy,
                the
                late ambassador of the United States to the Court of St. James’s, living
                on the date hereof has been designated as the “latest possible maturity
                date” for each Class of Certificates that represents one or more of the
                “regular interests” in REMIC 3.

            

    

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

    
      	
              (3)

            	
              The
                Class IO Certificates will be interest only certificates and will
                not have
                a Certificate
                Principal Balance.
                The initial Notional Amount is set forth in the table but is not
                included
                in the aggregate Certificate
                Principal Balances
                of
                all Certificates
                offered.
                For federal income tax purposes, the Class IO Certificates will not
                have a
                Pass-Through Rate or a Notional Amount, but will be entitled to (i)
                for
                the first 24 months, 25% of the interest distributed on the Class
                C
                Interest and (ii) thereafter, zero.

            

    

    
      	
              (4)

            	
              The
                Class C Certificates will be entitled to (i) for the first 24 months,
                75%
                of the interest distributed on the Class C Interest and (ii) thereafter,
                100% of all amounts distributed on the Class C
                Interest.

            

    

     

    As
      of the
      Cut-off Date, the Closing Date Mortgage Loans had an aggregate Stated Principal
      Balance equal to $119,819,012.84.

     

    In
      consideration of the mutual agreements herein contained, the Depositor, the
      Servicer and the Trustee agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      I

     

    DEFINITIONS

     

    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. Unless otherwise specified, all calculations in
      respect of interest on the Senior Certificates and the Subordinated Certificates
      shall be made on the basis of a 360-day year and the actual number of days
      elapsed, and all other calculations of interest described herein shall be made
      on the basis of a 360-day year consisting of twelve 30-day months. The Class
      P
      and Class R Certificates are not entitled to distributions in respect of
      interest and, accordingly, will not accrue interest.

     

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

     

    “Account”:
      Any of the Certificate Account, Distribution Account, Excess Reserve Fund
      Account, the Pre-Funding Account or the Interest Coverage Account.

     

    “Accrual
      Period”: With respect to the Senior Certificates and the Subordinated
      Certificates and each Distribution Date, the period commencing on the preceding
      Distribution Date (or in the case of the first such Accrual Period, commencing
      on the Closing Date) and ending on the day preceding the current Distribution
      Date. With
      respect to the Class C Certificates and each Distribution Date, the calendar
      month prior to the month of such Distribution Date.

     

    “Accrued
      Certificate Interest”: With respect to the Senior Certificates, the Subordinated
      Certificates and the Class C Certificates and any Distribution Date, the amount
      of interest accrued during the related Accrual Period at the related
      Pass-Through Rate on the Certificate Principal Balance (or Notional Amount
      in
      the case of the Class IO Certificates and Class C Certificates) of such Class
      immediately prior to such Distribution Date, in each case, reduced by any Net
      Interest Shortfalls allocated to such Class as set forth in Section
      1.02.

     

    Addition
      Notice: With respect to the transfer of Subsequent Mortgage Loans to the Trust
      Fund pursuant to Section 2.04, a notice of the Depositor’s designation of the
      Subsequent Mortgage Loans to be sold to the Trust Fund and the aggregate
      principal balance of such Subsequent Mortgage Loans as of the related Subsequent
      Cut-off Date. The Addition Notice shall be given no later than three (3)
      Business Days prior to the related Subsequent Transfer Date and shall be
      substantially in the form attached hereto as Exhibit P. 

     

    “Adjustable-Rate
      Mortgage Loan”: A Mortgage Loan which provides at any period during the life of
      such loan for the adjustment of the Mortgage Rate payable in respect thereto.
      The Adjustable-Rate Mortgage Loans are identified as such on the Mortgage Loan
      Schedule.

     

    “Adjustment
      Date”: With respect to each Adjustable-Rate Mortgage Loan, each adjustment date
      on which the Mortgage Rate of such Mortgage Loans may change pursuant to the
      related Mortgage Note. The first Adjustment Date following the Cut-off Date
      as
      to each Adjustable-Rate Mortgage Loan is set forth in the Mortgage Loan
      Schedule.

     

    “Advance”:
      As to any Mortgage Loan or REO Property, any advance made by the Servicer in
      respect of any Distribution Date pursuant to Section 4.03.

     

    “Adverse
      REMIC Event”: As defined in Section 9.01 hereof.

     

    “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.

     

    “Agreement”:
      This Pooling and Servicing Agreement and all amendments hereof and supplements
      hereto.

     

    “Allocated
      Realized Loss Amount”: With respect to any Distribution Date and any Class of
      Subordinated Certificates, the sum of (i) the amount of any Realized Losses
      allocated to such Class of Certificates on such Distribution Date pursuant
      to
      Section 4.05(b) and (ii) the amount of any Allocated Realized Loss Amount for
      such Class of Certificates remaining unpaid on the preceding Distribution Date
      minus the amount of the increase in the related Certificate Principal Balance
      due to the receipt of Subsequent Recoveries as provided in Section
      4.01.

     

    “Applicable
      Regulations”: As to any Mortgage Loan, all federal, state and local laws,
      statutes, rules and regulations applicable thereto.

     

    “Assignment”:
      An assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form (excepting therefrom, if applicable, the mortgage recordation
      information which has not been required pursuant to Section 2.01 hereof or
      returned by the applicable recorder’s office), which is sufficient under the
      laws of the jurisdiction wherein the related Mortgaged Property is located
      to
      reflect of record the sale of the Mortgage.

     

    “Available
      Funds”: With respect to any Distribution Date, an amount equal to the excess, if
      any, of: (i) the sum of (a) the aggregate of the related Monthly Payments
      received on or prior to the related Determination Date, including any Subsequent
      Recoveries, (b) Liquidation Proceeds, Principal Prepayments and other
      unscheduled recoveries of principal and interest in respect of the Mortgage
      Loans during the related Prepayment Period, (c) the aggregate of any amounts
      received in respect of a related REO Property withdrawn from any REO Account
      and
      deposited in the Certificate Account for such Distribution Date, (d) the
      aggregate of any amounts deposited in the Certificate Account by the Servicer
      in
      respect of Prepayment Interest Shortfalls for such Distribution Date, (e) the
      aggregate of any Advances made by the Servicer for such Distribution Date,
      (f)
      the aggregate of any related advances made by the Trustee for such Distribution
      Date pursuant to Section 7.02, (g) with respect to the Distribution Date
      immediately following the end of the Funding Period, any amounts remaining
      in
      the Pre-Funding Account after giving effect to any purchase of Subsequent
      Mortgage Loans, (h) any money withdrawn by the servicer from the Interest
      Coverage Account after giving effect to any purchase of Subsequent Mortgage
      Loans and (i) the amounts, if any, received pursuant to an Optional Termination;
      over (ii) the sum of (a) amounts reimbursable or payable to the Servicer
      pursuant to Section 3.11(a) or Section 3.18 or to the Trustee pursuant to
      Section 3.06 or Section 3.11(b), (b) amounts deposited in the Certificate
      Account or the Distribution Account pursuant to clauses (i) (a) through (i)(f)
      above, as the case may be, in error, (c) the Trustee Fee payable from the
      Distribution Account pursuant to Section 4.01(a) and Section 8.05 and (d) any
      indemnification payments or expense reimbursements made by the Trust Fund
      pursuant to Section 8.05.

     

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

     

    “Book-Entry
      Certificate”: Any Certificate registered in the name of the Depository or its
      nominee.

     

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

     

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

     

    “Certificate
      Factor”: With respect to any Class of the Regular Certificates (other than the
      Class IO Certificates and the Class C Certificates) as of any Distribution Date,
      a fraction, expressed as a decimal carried to six places, the numerator of
      which
      is the aggregate Certificate Principal Balance of such Class of Certificates
      on
      such Distribution Date (after giving effect to any distributions of principal
      and allocations of Realized Losses in reduction of the Certificate Principal
      Balance of the Certificates to be made on such Distribution Date), and the
      denominator of which is the initial aggregate Certificate Principal Balance
      of
      such Class of Certificates as of the Closing Date. With respect to the Class
      IO
      Certificates and the Class C Certificates as of any Distribution Date, a
      fraction, expressed as a decimal carried to six places, the numerator of which
      is the aggregate Notional Amount of such Class of Certificates on such
      Distribution Date (after giving effect to reductions thereof to be made on
      such
      Distribution Date due to reductions of the Pool Balance by scheduled principal
      due during the related Remittance Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period), and the denominator of which is the initial aggregate Notional Amount
      of such Class of Certificates as of the Closing Date.

     

    “Certificateholder”:
      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 Class R Certificate for any purpose hereof). Unless otherwise
      specified herein, whenever reference is made herein to actions taken by the
      Trustee on behalf of the Certificateholders or property held by the Trustee
      for
      the benefit of the Certificateholders, such reference shall be deemed and
      construed as a reference to the Trustee acting on behalf of or for the benefit
      of the Certificateholders.

     

    “Certificate
      Account”: The account or accounts created and maintained by the Servicer
      pursuant to Section 3.10(a), which shall be entitled “Deutsche Bank National
      Trust Company, as Trustee, in trust for registered Holders of IndyMac
      Residential Mortgage-Backed Trust Certificates, Series 2006-L4,” which must be
      an Eligible Account.

     

    “Certificate
      Insurer”: Ambac Assurance Corporation, a Wisconsin stock insurance corporation
      or its successors in interest.

     

    “Certificate
      Insurer Default”: The existence and continuance of any of the following: (a) a
      failure by the Certificate Insurer to make a payment required under the Policy
      in accordance with its terms; or (b) the Certificate Insurer (i) files any
      petition or commences any case or proceeding under any provision or chapter
      of
      the Bankruptcy Code or any other similar federal or state law relating to
      insolvency, bankruptcy, rehabilitation, liquidation or reorganization, (ii)
      makes a general assignment for the benefit of its creditors, or (iii) has an
      order for relief entered against it under the Bankruptcy Code or any other
      similar federal or state law relating to insolvency, bankruptcy, rehabilitation,
      liquidation or reorganization which is final and nonappealable; or (c) a court
      of competent jurisdiction, the New York insurance department or other competent
      regulatory authority enters a final and nonappealable order, judgment or decree
      (i) appointing a custodian, trustee, agent or receiver for the Certificate
      Insurer or for all or any material portion of its property or (ii) authorizing
      the taking of possession by a custodian, trustee, agent or receiver of the
      Certificate Insurer (or the taking of possession of all or any material portion
      of the property of the Certificate Insurer).

     

    “Certificate
      Margin”: With respect to the Class A Certificates and each Class of Subordinated
      Certificates and the Accrual Period for any Distribution Date, the margin
      indicated as follows:

    

    
      	
              Class

            	
              Certificate
                Margin (%)

              (Accrual
                Periods for Distribution Dates up to and including the Optional
                Termination Date)

            	
              Certificate
                Margin (%) (Accrual Periods for Distribution Dates that occur after
                the
                Optional Termination Date)

            
	
              Class
                A Certificates

            	
              0.170%

            	
              0.340%

            
	
              Class
                M Certificates

            	
              1.500%

            	
              2.250%

            
	
              Class
                B Certificates

            	
              1.500%

            	
              2.250%

            

    

    

    “Certificate
      Owner”: With respect to each Book-Entry Certificate, any beneficial owner
      thereof.

     

    “Certificate
      Principal Balance”: With respect to any Class of Regular Certificates (other
      than the Class C Certificates and Class P Certificates) immediately prior to
      any
      Distribution Date, an amount equal to the initial Certificate Principal Balance
      thereof (A) reduced by the sum of all amounts actually distributed in respect
      of
      principal of such Class and (B) further reduced, in the case of a Subordinated
      Certificate, by Realized Losses allocated thereto on all prior Distribution
      Dates plus, with respect to the Subordinated Certificates, any increase in
      the
      Certificate Principal Balance of such Certificate due to receipt of Subsequent
      Recoveries pursuant to Section 4.01 (or, in the case of any date of
      determination up to and including the first Distribution Date, the initial
      Certificate Principal Balance of such Certificate, as stated on the face
      thereof). With respect to the Class C Interest as of any date of determination,
      an amount equal to the excess, if any, of (A) the then aggregate Uncertificated
      Principal Balances of the REMIC 1 Regular Interests over (B) the then aggregate
      Certificate Principal Balance of the Class A Certificates, the Class P
      Certificates and the Subordinated Certificates then outstanding.

     

    “Certificate
      Register” and “Certificate Registrar”: The register maintained and registrar
      appointed pursuant to Section 5.02 hereof.

     

    “Class”:
      Collectively, Certificates which 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
      A
      Certificate”: Any one of the Class A Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-1 and evidencing (i) a Regular Interest in
      REMIC 2, and (ii) the right to receive the Net WAC Rate Carryover
      Amount.

     

    “Class
      A
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess, if any, of (x) the Certificate Principal Balance of the Class A
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (A) the product of (i) 93.30% and (ii) the aggregate Stated Principal Balance
      of
      the Mortgage Loans as of the last day of the related Remittance Period (after
      giving effect to scheduled payments of principal due during the related
      Remittance Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (B)
      an amount, not less than zero, the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Remittance Period (after giving
      effect to scheduled payments of principal due during the related Remittance
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period) minus the
      Overcollateralization Floor Amount.

     

    “Class
      A
      Overcollateralization Deficiency Amount”: With respect to any Distribution Date,
      the excess of (i) the Certificate Principal Balance of the Class A Certificates
      after giving effect to distributions of principal to be made on such
      Distribution Date (without regard to any payments of principal under the Policy)
      over (ii) the aggregate Stated Principal Balance of the Mortgage Loans on the
      last day of the immediately preceding Remittance Period (after giving effect
      to
      scheduled payments of principal due during the related Remittance Period, to
      the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period).

     

    “Class
      B
      Certificate”: Any one of the Class B Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-4, and evidencing (i) a Regular Interest in
      REMIC 2, and (ii) the right to receive the Net WAC Rate Carryover
      Amount.

     

    “Class
      B
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess, if any, of (x) the sum of (i) the Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date), (ii) the Certificate
      Principal Balance of the Class M Certificates (after taking into account the
      payment of the Class M Principal Distribution Amount on such Distribution Date),
      and (iii) the Certificate Principal Balance of the Class B Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 97.20% and (ii) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Remittance Period (after giving
      effect to scheduled payments of principal due during the related Remittance
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period) and (B) an amount,
      not
      less than zero, the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Remittance Period (after giving effect to
      scheduled payments of principal due during the related Remittance Period, to
      the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period) minus the Overcollateralization Floor
      Amount.

     

    “Class
      C
      Certificate”: Any one of the Class C Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-5, and evidencing (i) a Regular Interest in
      REMIC 3, and (ii) the obligation to pay the Net WAC Rate Carryover
      Amount.

     

    “Class
      C
      Interest”: An uncertificated interest in the Trust Fund held by the Trustee on
      behalf of the Holders of the Class C Certificates and Class IO Certificates,
      evidencing a Regular Interest in REMIC 2 for purposes of the REMIC
      Provisions.

     

    “Class
      IO
      Certificate”: Any one of the Class IO Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-2 and evidencing (i) a Regular Interest in
      REMIC 2, and (ii) the right to receive the Net WAC Rate Carryover
      Amount.

     

    “Class
      M
      Certificate”: Any one of the Class M Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-3, and evidencing (i) a Regular Interest in
      REMIC 2 and (ii) the right to receive the Net WAC Rate Carryover
      Amount.

     

    “Class
      M
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess, if any, of (x) the sum of (i) the Certificate Principal Balance of
      the
      Class A Certificates (after taking into account the payment of the Class A
      Principal Distribution Amount on such Distribution Date) and (ii) the
      Certificate Principal Balance of the Class M Certificates immediately prior
      to
      such Distribution Date over (y) the lesser of (A) the product of (i) 94.70%
      and
      (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Remittance Period (after giving effect to scheduled payments
      of principal due during the related Remittance Period, to the extent received
      or
      advanced, and unscheduled collections of principal received during the related
      Prepayment Period) and (B) an amount, not less than zero, the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related
      Remittance Period (after giving effect to scheduled payments of principal due
      during the related Remittance Period, to the extent received or advanced, and
      unscheduled collections of principal received during the related Prepayment
      Period) minus the Overcollateralization Floor Amount.

     

    “Class
      P
      Certificate”: Any one of the Class P Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-7, and evidencing a Regular Interest in REMIC
      3.

     

    “Class
      P
      Interest”: An uncertificated interest in the Trust Fund held by the Trustee on
      behalf of the Holders of the Class P Certificates, evidencing a Regular Interest
      in REMIC 2 for purposes of the REMIC Provisions.

     

    “Class
      R
      Certificate”: Any one of the Class R Certificates executed by the Trustee, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit A-6 and evidencing the ownership of the Class
      R-1
      Interest, the Class R-2 Interest and the Class R-3 Interest.

     

    “Class
      R-1 Interest”: The uncertificated Residual Interest in REMIC 1.

     

    “Class
      R-2 Interest”: The uncertificated Residual Interest in REMIC 2.

     

    “Class
      R-3 Interest”: The uncertificated Residual Interest in REMIC 3.

     

    “Close
      of
      Business”: As used herein, with respect to any Business Day, 5:00 p.m. (New York
      time).

     

    “Closing
      Date”: December 21, 2006.

     

    “Closing
      Date Mortgage Loan”: Each mortgage loan transferred and assigned to the Trustee
      pursuant to Section 2.01 or Section 2.03(d) 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. 

     

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

     

    “Compensating
      Interest”: As defined in Section 3.26 hereof.

     

    “Corporate
      Trust Office”: 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 1761 East St. Andrew Place, Santa Ana, CA
      92705-4934, Attention: Trust Administration IN06L4 (IndyMac Residential
      Mortgage-Backed Trust, Series 2006-L4) and which is the address to which notices
      and correspondence with the Trustee should be directed or, with respect to
      the
      Certificate Registrar, the designated office for presentment and surrender
      of
      Certificates for registration of transfer or exchange thereof located at DB
      Services Tennessee, 646 Grassmere Park Road, Nashville, TN 37211, Attention:
      Transfer Unit.

     

    “Corresponding
      Certificate”: With respect to each REMIC 2 Regular Interest, as
      follows:

     

    
      	
              REMIC
                1 Regular Interest

            	
              Class

            
	
              REMIC
                1 Regular Interest LT1A

            	
              A

            
	
              REMIC
                1 Regular Interest LT1M

            	
              M

            
	
              REMIC
                1 Regular Interest LT1B

            	
              B

            
	
              REMIC
                1 Regular Interest LT1P, Class P Interest

            	
              P

            
	
              Class
                C Interest

            	
              IO,
                C

            

    

     

    “Credit
      Enhancement Percentage”: For any Distribution Date, the percentage equivalent of
      a fraction, the numerator of which is (x) the aggregate Certificate Principal
      Balance of the Subordinated Certificates and the Class C Certificates, and
      the
      denominator of which is (y) the aggregate Stated Principal Balance of the
      Mortgage Loans, calculated prior to taking into account distributions of
      principal on the Mortgage Loans and distribution of the Principal Distribution
      Amount to the Holders of the Certificates then entitled to distributions of
      principal on such Distribution Date.

    

    “Custodian”:
      Deutsche Bank National Trust Company, as custodian of the Mortgage Files, and
      any successor thereto.

     

    “Cut-off
      Date”: As to any Closing Date Mortgage Loan, the later of December 1, 2006 and
      the origination date of that Mortgage Loan. As to any Subsequent Mortgage Loan,
      the later of the first day of the month in which the related Subsequent Transfer
      Date occurs and the origination date of that Mortgage Loan. With respect to
      all
      Qualified Substitute Mortgage Loans, their respective dates of substitution.
      References herein to the “Cut-off Date,” when used with respect to more than one
      Mortgage Loan, shall be to the respective Cut-off Dates for such Mortgage
      Loans.

     

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

     

    “Deficiency
      Amount”: With respect to any Distribution Date and the Insured Certificates, an
      amount, if any, equal to the sum of: (i) the aggregate amount by which the
      Accrued Certificate Interest allocable to the Insured Certificates for such
      Distribution Date exceeds the Interest Remittance Amount available on such
      Distribution Date to distribute to the Insured Certificates in accordance with
      Section 4.01(a)(ii); and (ii) (a) with respect to any Distribution Date that
      is
      not the Final Distribution Date, the Class A Overcollateralization Deficiency
      Amount, if any, for such Distribution Date and (b) on the Final Distribution
      Date, the Certificate Principal Balance of the Insured Certificates (after
      giving effect to all distributions of Available Funds).

     

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

     

    “Definitive
      Certificates”: As defined in Section 5.02(c) hereof.

     

    “Delayed
      Delivery Mortgage Loans”: As defined in Section 2.01 hereof.

     

    “Delayed
      Delivery Subsequent Mortgage Loans”: The Subsequent Mortgage Loans identified on
      the Mortgage Loan Schedule, for which neither a related Mortgage File nor the
      Mortgage Note (or lost note affidavit for a lost Mortgage Note) has been
      delivered to the Trustee by the Subsequent Transfer Date. 

     

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

     

    “Delinquency
      Percentage”: For any Distribution Date, the percentage obtained by dividing (x)
      the aggregate Stated Principal Balance of Mortgage Loans 60 days Delinquent
      or
      more or that are secured by Mortgaged Properties that have become REO Properties
      by (y) the aggregate Stated Principal Balance of the Mortgage Loans, in each
      case, as of the last day of the previous calendar month.

     

    “Delinquent”:
      A Mortgage Loan is “Delinquent” if any Monthly Payment due on a Due Date is not
      made by the Close of Business on the next scheduled Due Date for such Mortgage
      Loan. A Mortgage Loan is “30 days Delinquent” if such Monthly Payment has not
      been received by the Close of Business on the corresponding day of the month
      immediately succeeding the month in which such Monthly Payment was due. The
      determination of whether a Mortgage Loan is “60 days Delinquent”, “90 days
      Delinquent”, etc. shall be made in a like manner.

     

    “Depositor”:
      IndyMac ABS, Inc., a Delaware corporation, or any successor in
      interest.

     

    “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 Securities Exchange Act of 1934, as amended.
      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(5) 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”: With respect to any Distribution Date, the 18th
      day of
      the calendar month in which such Distribution Date occurs, or, if such
      18th
      day is
      not a Business Day, the Business Day immediately succeeding such 18th
      day,
      except that if the succeeding Business Day is less than two Business Days before
      the related Distribution Date, then the Determination Date shall be the Business
      Day preceding the 18th
      day of
      the month.

    

     

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

     

    “Disqualified
      Organization”: A “disqualified organization” under Section 860E of the Code,
      which as of the Closing Date is any of: (i) the United States, any state or
      political subdivision thereof, any foreign government, any international
      organization, or any agency or instrumentality of any of the foregoing, (ii)
      any
      organization (other than a cooperative described in Section 521 of the Code)
      which is exempt from the tax imposed by Chapter 1 of the Code unless such
      organization is subject to the tax imposed by Section 511 of the Code, (iii)
      any
      organization described in Section 1381(a)(2)(C) of the Code, (iv) an “electing
      large partnership” within the meaning of Section 775 of the Code or (v) any
      other Person so designated by the Depositor based upon an Opinion of Counsel
      provided by nationally recognized counsel to the Depositor that the holding
      of
      an ownership interest in a Class R Certificate by such Person may cause the
      Trust Fund or any Person having an ownership interest in any Class of
      Certificates (other than such Person) to incur liability for any federal tax
      imposed under the Code that would not otherwise be imposed but for the transfer
      of an ownership interest in the Class R Certificate to such Person. A
      corporation will not be treated as an instrumentality of the United States
      or of
      any state or political subdivision thereof, if all of its activities are subject
      to tax and, a majority of its board of directors is not selected by a
      governmental unit. The term “United States”, “state” and “international
      organizations” shall have the meanings set forth in Section 7701 of the
      Code.

     

    “Distribution
      Account”: The trust account or accounts created and maintained by the Trustee
      pursuant to Section 3.10(b) which shall be entitled “Distribution Account,
      Deutsche Bank National Trust Company, as Trustee, in trust for registered
      Holders of IndyMac Residential Mortgage-Backed Trust Certificates, Series
      2006-L4,” and which must be an Eligible Account.

     

    “Distribution
      Date”: The 25th
      day of
      each month, or if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day,
      commencing in January 2007.

     

    “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 (or, in the case of any Mortgage
      Loan under the terms of which the Monthly Payment for such Mortgage Loan was
      due
      on a day other than the first day of the calendar month in which such
      Distribution Date occurs, the day during the related Remittance Period on which
      such Monthly Payment was due) exclusive of any days of grace.

     

    “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 “P-1” by Moody’s
      and “A-1” by S&P (or comparable ratings if Moody’s and S&P are not the
      Rating Agencies) at the time any amounts are held on deposit therein, (ii)
      with
      the prior written consent of the Certificate Insurer, an account or accounts
      the
      deposits in which are fully insured by the FDIC (to the limits established
      by
      such corporation), the uninsured deposits in which account are otherwise secured
      such that, as evidenced by an Opinion of Counsel delivered to the Trustee and
      to
      each Rating Agency, the Certificateholders will have a claim with respect to
      the
      funds in such account or a perfected first priority security interest against
      such collateral (which shall be limited to Permitted Investments) securing
      such
      funds that is superior to claims of any other depositors or creditors of the
      depository institution with which such account is maintained, (iii) a trust
      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 (iv) with the prior written consent of
      the
      Certificate Insurer, an account otherwise acceptable to each Rating Agency
      without reduction or withdrawal of their then current ratings of any Class
      of
      Certificates (without regard to the Policy) as evidenced by a letter from each
      Rating Agency to the Trustee. Eligible Accounts may bear interest.

     

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

     

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

     

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

     

    “Excess
      Overcollateralization Amount”: With respect to any Distribution Date, the
      excess, if any, of (i) the Overcollateralized Amount for such Distribution
      Date
      (assuming that 100% of the Principal Remittance Amount is applied as a principal
      payment on such Distribution Date) over (ii) the Overcollateralization Target
      Amount for such Distribution Date.

     

    “Excess
      Reserve Fund Account”: The reserve fund designated, established and maintained
      pursuant to Section 3.27.

     

    “Expense
      Adjusted Maximum Mortgage Rate”: With respect to any Adjustable-Rate Mortgage
      Loan, the then applicable Maximum Mortgage Rate thereon minus the Expense Fee
      Rate. With respect to any Fixed-Rate Mortgage Loan, the Expense Adjusted
      Mortgage Rate thereon.

     

    “Expense
      Adjusted Mortgage Rate”: With respect to any Mortgage Loan or REO Property, the
      then applicable Mortgage Rate thereon minus the Expense Fee Rate.

     

    “Expense
      Amount”: For any Distribution Date, the sum of (i) product of the Expense Fee
      Rate and the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      Due Date occurring in the prior calendar month and (ii) the Premium payable
      to
      the Certificate Insurer for that Distribution Date.

     

    “Expense
      Fee Rate”: As to each Mortgage Loan, the sum of the Servicing Fee Rate and the
      Trustee Fee Rate.

     

    “Extra
      Principal Distribution Amount”: With respect to any Distribution Date,
the
      lesser of (x) the Total Monthly Excess Spread for that Distribution Date and
      (y)
      the Overcollateralization Deficiency Amount for that Distribution
      Date.
      

     

    “Fannie
      Mae”: Fannie Mae or any successor thereto.

     

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

     

    “Final
      Distribution Date”: The Distribution Date in August 2012.

     

    “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
      or
      the Servicer pursuant to or as contemplated by Section 2.03, Section 3.16(c)
      or
      Section 10.01), a determination made by the Servicer that all Insurance
      Proceeds, Liquidation Proceeds and other payments or recoveries which the
      Servicer, in its reasonable good faith judgment, expects to be finally
      recoverable in respect thereof have been so recovered. The Servicer shall
      maintain records, prepared by a Servicing Officer, of each Final Recovery
      Determination made thereby.

     

    “Fixed-Rate
      Mortgage Loan”: A Mortgage Loan whose Mortgage Rate is fixed for the life of
      such Mortgage Loan at the fixed Mortgage Rate set forth in the related Mortgage
      Note.

     

    “Formula
      Rate”: With respect to the Class A Certificates and Subordinated Certificates
      and any Distribution Date, a per annum rate equal to the lesser of (i) LIBOR
      plus the related Certificate Margin and (ii) the Maximum Cap Rate.

     

    “Freddie
      Mac”: Freddie Mac or any successor thereto.

     

    “Funding
      Period”: The period beginning on the Closing Date and ending on the earlier to
      occur of (i) the date upon which the amounts on deposit in the Pre-Funding
      Account have been reduced to zero or (ii) February 1, 2007. 

     

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

     

    “Highest
      Priority”: As of any date of determination, the Class of Subordinated
      Certificates then outstanding with a Certificate Principal Balance greater
      than
      zero, with the highest priority for payments pursuant to Section 4.01, in the
      following order of decreasing priority: Class M Certificates and Class B
      Certificates.

     

    “Holder”:
      A Certificateholder.

     

    “Independent”:
      When used with respect to any specified Person, any such Person who (a) is
      in
      fact independent of the Depositor, the Servicer and their respective Affiliates,
      (b) does not have any direct financial interest in or any material indirect
      financial interest in the Depositor or the Servicer or any Affiliate thereof,
      and (c) is not connected with the Depositor or the Servicer or any Affiliate
      thereof as an officer, employee, promoter, underwriter, trustee, partner,
      director or Person performing similar functions; provided, however, that a
      Person shall not fail to be Independent of the Depositor or the Servicer or
      any
      Affiliate thereof merely because such Person is the beneficial owner of 1%
      or
      less of any class of securities issued by the Depositor or the Servicer or
      any
      Affiliate thereof, as the case may be.

     

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

     

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

     

    “Insurance
      Account”: The account or accounts created and maintained pursuant to Section
      4.06, which shall be entitled “Deutsche Bank National Trust Company, as Trustee,
      in trust for the registered holders of IndyMac Residential Mortgage-Backed
      Trust
      Certificates, Series 2006-L4.” The Insurance Account must be an Eligible
      Account.

     

    “Insurance
      Agreement”: The Insurance and Indemnity Agreement, dated as of December 21,
      among the Certificate Insurer, the Trustee, the Servicer, the Seller and the
      Depositor.

     

    “Insurance
      Proceeds”: Proceeds of any title 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 Mortgagor
      in
      accordance with the procedures that the Servicer would follow in servicing
      mortgage loans held for its own account, subject to the terms and conditions
      of
      the related Mortgage Note and Mortgage.

     

    “Insured
      Amount”: With respect to the Insured Certificates and (i) a Distribution Date,
      any Deficiency Amount for such Distribution Date and (ii) any date, any
      Preference Amount to be paid pursuant to the terms of the Policy on such
      date.

     

    “Insured
      Certificates”: The Class A Certificates.

     

    “Interest
      Coverage Account”: The account established and maintained pursuant to Section
      3.27, which account contains an amount, to be paid by the Depositor to the
      Trustee on the Closing Date, that equals $235,813,20. 

     

    “Initial
      Deposit”: The
      amount which will be deposited into the Excess Reserve Fund Account for
      distribution to the holders of the Certificates on the Closing Date. The Initial
      Deposit will be equal to $16,000. 

     

    “Interest
      Determination Date”: With respect to the Senior Certificates and Subordinated
      Certificates and each Accrual Period, the second LIBOR Business Day preceding
      the commencement of such Accrual Period.

     

    “Interest
      Remittance Amount”: With respect to any Distribution Date, that portion of the
      Available Funds for such Distribution Date attributable to interest received
      or
      advanced on the Mortgage Loans or to amounts in respect of Prepayment Interest
      Shortfalls paid by the Servicer.

     

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

     

    “Late
      Payment Rate”: With respect to the Policy, for any Distribution Date, the lesser
      of (a) the greater of (i) the per annum rate of interest publicly announced
      from
      time to time by Citibank, N.A. at its principal office in New York, New York
      as
      its prime lending rate (any change in such prime rate of interest to be
      effective on the date such change is announced by Citibank, N.A.) plus 2%,
      and
      (ii) the then applicable highest rate of interest on any of the Insured
      Certificates and (b) the maximum rate permissible under applicable usury or
      similar laws limiting interest rates, as determined by the Certificate Insurer.
      The Late Payment Rate shall be computed on the basis of the actual number of
      days elapsed over a year of 360 days.

     

    “LIBOR”:
      With respect to each Accrual Period for the Senior Certificates and the
      Subordinated Certificates, the rate determined by the Trustee on the related
      Interest Determination Date on the basis of the London interbank offered rate
      for one-month United States dollar deposits, as such rate appears on the
      Telerate Page 3750, as of 11:00 a.m. (London time) on such Interest
      Determination Date. If such rate does not appear on Telerate Page 3750, LIBOR
      on
      such Interest Determination Date will be determined on the basis of the offered
      rates of the Reference Banks for one-month United States dollar deposits, as
      of
      11:00 a.m. (London time) on such Interest Determination Date. The Trustee will
      request the principal London office of each of the Reference Banks to provide
      a
      quotation of its rate. On such Interest Determination Date, LIBOR for the
      related Accrual Period will be established by the Trustee as
      follows:

     

    (i) If
      on
      such Interest Determination Date two or more Reference Banks provide such
      offered quotations, LIBOR for the related Accrual Period shall be the arithmetic
      mean of such offered quotations (rounded upwards if necessary to the nearest
      whole multiple of 1/16 of 1%); and

     

    (ii) If
      on
      such Interest Determination Date fewer than two Reference Banks provide such
      offered quotations, LIBOR for the related Accrual Period shall be the arithmetic
      mean of the rates quoted by major banks in New York City, selected by the
      Servicer and approved by the Certificate Insurer, at approximately 11:00 A.M.
      (New York City time) on that day for loans in United States dollars to leading
      European banks.

     

    “LIBOR
      Business Day”: Any day on which dealings in deposits of United States dollars
      are transacted in the London interbank market.

     

    “Liquidated
      Mortgage Loan”: As to any Distribution Date, any Mortgage Loan in respect of
      which the Servicer has determined, in accordance with the servicing procedures
      and the Servicing Standard specified herein, as of the end of the related
      Prepayment Period, that all Liquidation Proceeds which it expects to recover
      with respect to the liquidation of the 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 by Section 2.03, Section 3.16(c) or Section 10.01. 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.

     

    “Liquidation
      Proceeds”: The amount (other than amounts received in respect of the rental of
      any REO Property prior to REO Disposition) received by the Servicer in
      connection with: (i) the taking of all or a part of a Mortgaged Property by
      exercise of the power of eminent domain or condemnation; (ii) the liquidation
      of
      a defaulted Mortgage Loan by means of a trustee’s sale, foreclosure sale or
      otherwise; or (iii) the repurchase, substitution or sale of a Mortgage Loan
      or
      an REO Property pursuant to or as contemplated by Section 2.03, Section 3.16(c)
      or Section 10.01.

     

    “Loan-to-Value
      Ratio”: As of any date and as to any Mortgage Loan, the fraction, expressed as a
      percentage, the numerator of which is the Stated Principal Balance of the
      Mortgage Loan and the denominator of which is the Value of the related Mortgaged
      Property.

     

    “Losses”:
      As defined in Section 9.03.

     

    “Lost
      Note Affidavit”: With respect to any Mortgage Loan as to which the original
      Mortgage Note has been permanently 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.

     

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

     

    “Marker
      Rate”: With respect to the Class C Interest and any Distribution Date, a per
      annum rate equal to two (2) times the weighted average of the Uncertificated
      REMIC 1 Pass-Through Rates for REMIC 1 Regular Interest LT1A, REMIC 1 Regular
      Interest LT1M, REMIC 1 Regular Interest LT1B and REMIC 1 Regular Interest LT1ZZ,
      with the rate on each such REMIC 1 Regular Interest (other than REMIC 1 Regular
      Interest LT1ZZ) subject to a cap equal to the lesser of (i) LIBOR plus the
      related Certificate Margin and (ii) the Net WAC Rate for the purpose of this
      calculation; and with the rate on REMIC 1 Regular Interest LT1ZZ subject to
      a
      cap of zero for the purpose of this calculation; provided, however, that for
      this purpose, calculations of the Uncertificated REMIC 1 Pass-Through Rate
      and
      the related caps with respect to REMIC 1 Regular Interest LT1A, REMIC 1 Regular
      Interest LT1M and REMIC 1 Regular Interest LT1B shall be multiplied by a
      fraction, the numerator of which is the actual number of days in the Accrual
      Period and the denominator of which is 30.

     

    “Maximum
      Cap Rate”: For any Distribution Date, will be the annual rate (subject to
      adjustment based on the actual number of days elapsed in the related Accrual
      Period) equal to the weighted average of the Net Maximum Mortgage Rates on
      the
      Mortgage Loans and the per annum rate of any amount withdrawn from the Interest
      Coverage Account (weighted based on the Stated Principal Balances of the
      Mortgage Loans as of the first day of the related Remittance Period, adjusted
      to
      reflect unscheduled principal payments made thereafter that were included in
      the
      Principal Distribution Amount on the immediately preceding distribution date,
      plus any amounts on deposit in the Pre-Funding Account) minus the rate at which
      the Premium is calculated on such distribution date (multiplied by a fraction
      the numerator of which is the aggregate Class Certificate Balance of the Class
      A
      Certificates immediately prior to such distribution date and the denominator
      of
      which is the aggregate Stated Principal Balance of the mortgage loans as of
      the
      first day of the related Remittance Period, adjusted to reflect unscheduled
      principal payments made thereafter that were included in the Principal
      Distribution Amount on the immediately preceding distribution
      date).

     

    “Maximum
      LT1ZZ Uncertificated Accrued Interest Deferral Amount”: With respect to any
      Distribution Date, the excess of (a) accrued interest at the Uncertificated
      REMIC 1 Pass-Through Rate applicable to REMIC 1 Regular Interest LT1ZZ for
      such
      Distribution Date on a balance equal to the Uncertificated Principal Balance
      of
      REMIC 1 Regular Interest LT1ZZ minus the REMIC 1 Overcollateralized Amount,
      in
      each case for such Distribution Date, over (b) Uncertificated Accrued Interest
      on REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1M and REMIC 1
      Regular Interest LT1B, with the rate on each such REMIC 1 Regular Interest
      subject to a cap equal to the lesser of (i) LIBOR plus the related Certificate
      Margin and (ii) the Net WAC Rate for the purpose of this calculation; provided,
      however, that for this purpose, calculations of the Uncertificated REMIC 1
      Pass-Through Rate and the related caps with respect to REMIC 1 Regular Interest
      LT1A, REMIC 1 Regular Interest LT1M and REMIC 1 Regular Interest LT1B shall
      be
      multiplied by a fraction, the numerator of which is the actual number of days
      in
      the Accrual Period and the denominator of which is 30.

     

    “Maximum
      Mortgage Rate”: With respect to each Adjustable-Rate Mortgage Loan, the
      percentage set forth in the related Mortgage Note as the maximum Mortgage Rate
      thereunder (or the Mortgage Rate for such Mortgage Loan in the case of any
      Fixed-Rate Mortgage Loans).

     

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

     

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

     

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

     

    “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 pertaining to a particular
      Mortgage Loan and any additional documents required to be added to the Mortgage
      File pursuant to this Agreement.

     

    “Mortgage
      Loan”: Such of the Closing Date Mortgage Loans and Subsequent Mortgage Loans
      transferred and assigned to the Trustee pursuant to this Agreement and each
      Subsequent Transfer Agreement, as from time to time are held as a part of the
      Trust Fund (including any REO Property), the Mortgage Loans so held being
      identified on the Mortgage Loan Schedule, notwithstanding foreclosure or other
      acquisition of title of the related Mortgaged Property. 

     

    “Mortgage
      Loan Purchase Agreement”: The agreement between the Seller and the Depositor,
      regarding the transfer of the Mortgage Loans by the Seller to or at the
      direction of the Depositor, substantially in the form attached hereto as Exhibit
      C.

     

    “Mortgage
      Loan Schedule”: As of any date, the list of Mortgage Loans included in the Trust
      Fund on such date, attached hereto as Exhibit D (as supplemented by each
      schedule of Subsequent Mortgage Loans), as initially prepared by the Seller
      pursuant to the Mortgage Loan Purchase Agreement. The Mortgage Loan Schedule
      shall set forth the following information with respect to each Mortgage Loan,
      as
      applicable:

     

    
      	 	
              (1)

            	
              the
                Mortgage Loan identifying number;

            

    

     

    
      	 	
              (2)

            	
              [reserved];

            

    

     

    
      	 	
              (3)

            	
              the
                state and zip code of the Mortgaged
                Property;

            

    

     

    
      	 	
              (4)

            	
              the
                original months to maturity;

            

    

     

    
      	 	
              (5)

            	
              [reserved];

            

    

     

    
      	 	
              (6)

            	
              the
                Loan-to-Value Ratio at origination;

            

    

     

    
      	 	
              (7)

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

            

    

     

    
      	 	
              (8)

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

            

    

     

    
      	 	
              (9)

            	
              the
                stated maturity date;

            

    

     

    
      	 	
              (10)

            	
              the
                amount of the Monthly Payment at
                origination;

            

    

     

    
      	 	
              (11)

            	
              the
                amount of the Monthly Payment due on the first Due Date after the
                Cut-off
                Date;

            

    

     

    
      	 	
              (12)

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

            

    

     

    
      	 	
              (13)

            	
              the
                original principal amount of the Mortgage
                Loan;

            

    

     

    
      	 	
              (14)

            	
              the
                Stated Principal Balance of the Mortgage Loan as of the Close of
                Business
                on the Cut-off Date;

            

    

     

    
      	 	
              (15)

            	
              [reserved];

            

    

     

    
      	 	
              (16)

            	
              the
                Mortgage Rate at origination;

            

    

     

    
      	 	
              (17)

            	
              [reserved];

            

    

     

    
      	 	
              (18)

            	
              the
                Value of the Mortgaged Property;

            

    

     

    
      	 	
              (19)

            	
              [reserved];

            

    

     

    
      	 	
              (20)

            	
              [reserved];

            

    

     

    
      	 	
              (21)

            	
              [reserved];
                and

            

    

     

    
      	 	
              (22)

            	
              in
                the case of each Adjustable-Rate Mortgage Loan, the Minimum Mortgage
                Rate,
                the Maximum Mortgage Rate, the Gross Margin and the Periodic Rate
                Cap.

            

    

     

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

     

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

     

    “Mortgage
      Pool”: The pool of Mortgage Loans, identified on Exhibit D from time to time,
      and any REO Properties acquired in respect thereof.

     

    “Mortgage
      Rate”: With respect to each Mortgage Loan, the annual rate at which interest
      accrues on such Mortgage Loan from time to time in accordance with the
      provisions of the related Mortgage Note, which rate in the case of each
      Fixed-Rate Mortgage Loan is the fixed rate set forth in the related Mortgage
      Note, and which rate in the case of each Adjustable-Rate Mortgage Loan (A)
      as of
      any date of determination until the first Adjustment Date following the Cut-off
      Date, shall be the rate set forth in the Mortgage Loan Schedule as the Mortgage
      Rate in effect immediately following the Cut-off Date, and (B) as of any date
      of
      determination thereafter, shall be the rate as adjusted on the most recent
      Adjustment Date, to equal the sum (rounded as provided in the Mortgage Note
      and
      as specified by the Servicer) of the Index, determined as set forth in the
      related Mortgage Note, plus the related Gross Margin, subject to the limitations
      set forth in the related Mortgage Note. With respect to each Mortgage Loan
      that
      is secured by a Mortgaged Property that becomes an REO Property, as of any
      date
      of determination, the annual rate determined in accordance with the immediately
      preceding sentence as of the date such Mortgaged Property became an REO
      Property.

     

    “Mortgaged
      Property”: The underlying property securing a Mortgage Loan, including any REO
      Property, consisting of an Estate in Real Property.

     

    “Mortgagor”:
      The obligor on a Mortgage Note.

     

    “Net
      Interest Shortfalls”: As defined in Section 1.02.

     

    “Net
      Liquidation Proceeds”: With respect to any Liquidated Mortgage Loan or any other
      disposition of the related Mortgaged Property (including any REO Property),
      the
      related Liquidation Proceeds net of Advances, Servicing Advances, 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.

     

    “Net
      Maximum Mortgage Rate”: With respect to any Mortgage Loan and any date of
      determination, will be the specified maximum mortgage rate set forth in the
      related mortgage note (or the mortgage rate for such mortgage loan in the case
      of any fixed-rate mortgage loans) minus the sum of (i) the trustee fee rate
      and
      (ii) the servicing fee rate. 

     

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

     

    “Net
      Prepayment Interest Shortfall”: With respect to any Distribution Date, the
      excess, if any, of any Prepayment Interest Shortfalls for such date over the
      related Compensating Interest.

     

    “Net
      WAC
      Rate”: With respect to the Class A Certificates and the Subordinated
      Certificates, a per annum rate (subject to adjustment based on the actual number
      of days elapsed in the related Accrual Period) equal to the weighted average
      of
      the Net Mortgage Rates on the Mortgage Loans and the per annum rate of any
      amount withdrawn from the Interest Coverage Account (weighted based on the
      Stated Principal Balances of the Mortgage Loans as of the first day of the
      related Remittance Period, adjusted to reflect unscheduled principal payments
      made thereafter that were included in the Principal Distribution Amount on
      the
      immediately preceding Distribution Date, plus any amounts on deposit in the
      Pre-Funding Account) minus the rate at which the Premium is calculated on such
      Distribution Date (multiplied by a fraction the numerator of which is the
      aggregate Certificate Principal Balance of the Class A Certificates immediately
      prior to such Distribution Date and the denominator of which is the aggregate
      Stated Principal Balance of the Mortgage Loans as of the first day of the
      related Remittance Period, adjusted to reflect unscheduled principal payments
      made thereafter that were included in the Principal Distribution Amount on
      the
      immediately preceding Distribution Date). For federal income tax purposes,
      for
      any Distribution Date with respect to the REMIC 2 Regular Interests the
      ownership of which is represented by the Class A, Class M or Class B
      Certificates, the Net WAC Rate shall be expressed as the weighted average
      (adjusted for the actual number of days elapsed in the related Interest Accrual
      Period) of the Uncertificated REMIC 1 Pass-Through Rates on the REMIC 1 Regular
      Interests, weighted on the basis of the Uncertificated Balance of each such
      REMIC 1 Regular Interest. 

     

    “Net
      WAC
      Rate Carryover Amount”: With respect to the Class A, Class M and Class B
      Certificates and any Distribution Date, the sum of (A) the positive excess,
      if
      any, of (i) the amount of interest that would have accrued on such Class of
      Certificates for such Distribution Date if the Pass-Through Rate for such Class
      of Certificates for such Distribution Date were calculated at the related
      Formula Rate over (ii) the amount of interest accrued on such Class of
      Certificates at the Net WAC Rate for such Distribution Date and (B) the related
      Net WAC Rate Carryover Amount for the previous Distribution Date not previously
      paid, together with interest thereon for the most recently ended related Accrual
      Period at a rate equal to the related Formula Rate for such Class of
      Certificates for such Distribution Date.

     

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

     

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

     

    “Notional
      Amount”: Immediately prior to any Distribution Date, (i) with respect to the
      Class C Interest, the aggregate Uncertificated Principal Balances of the REMIC
      1
      Regular Interests (other than REMIC 1 Regular Interest LT1P) and (ii) with
      respect to the Class IO Certificates, the Stated Principal Balances of the
      Mortgage Loans as of the first date of the related Remittance Period. For
      federal income tax purposes, the Class IO Certificates will not have a Notional
      Amount, but will be entitled to (i) for the first 24 months, 25% of the interest
      distributed on the Class C Interest and (ii) thereafter, zero. The Class C
      Certificates will not have a Notional Amount, but will be entitled to (i) for
      the first 24 months, 75% of the interest distributed on the Class C Interest
      and
      (ii) thereafter, 100% of all amounts distributed on the Class C
      Interest.

     

    “Officer’s
      Certificate”: A certificate signed by the Chairman of the Board, the Vice
      Chairman of the Board, the President or a vice president (however denominated),
      the Treasurer, the Secretary, or one of the assistant treasurers or assistant
      secretaries of the Servicer, the Seller or the Depositor, as
      applicable.

     

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

     

    “Optional
      Termination Date”: The earliest Distribution Date on which the Terminator would
      be permitted to exercise its option to terminate the Trust pursuant to Section
      10.01.

     

    “Original
      Pre-Funded Amount”: The amount deposited by the Depositor in the Pre-Funding
      Account on the Closing Date, which amount is $40,181,087.16.
      

     

    “Overcollateralization
      Deficiency Amount”: With respect to any Distribution Date, the amount, if any,
      by which the Overcollateralization Target Amount exceeds the Overcollateralized
      Amount on such Distribution Date (assuming that 100% of the Principal Remittance
      Amount is applied as a principal distribution on such Distribution
      Date).

     

    “Overcollateralization
      Floor Amount”: With respect to any Distribution Date, an amount equal to 0.50%
      of the aggregate Stated Principal Balance of the Mortgage Loans as of the
      Cut-off Date.

     

    “Overcollateralization
      Target Amount”: With respect to any Distribution Date (i) prior to the Stepdown
      Date, 1.40% of the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the Cut-off Date, (ii) on or after the Stepdown Date provided a Trigger
      Event
      is not in effect, the greater of (x) 2.80% of the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Remittance
      Period (after giving effect to scheduled payments of principal due during the
      related Remittance Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (y)
      the Overcollateralization Floor Amount, and (iii) on or after the Stepdown
      Date
      and if a Trigger Event is in effect, the Overcollateralization Target Amount
      for
      the immediately preceding Distribution Date. Notwithstanding the foregoing,
      on
      and after any Distribution Date following the reduction of the aggregate
      Certificate Principal Balance of the Class A, Class M and Class B Certificates
      to zero, the Overcollateralization Target Amount shall be zero.

     

    “Overcollateralized
      Amount”: With respect to any Distribution Date, the amount, if any, by which (i)
      the aggregate Stated Principal Balance of the Mortgage Loans (after giving
      effect to scheduled payments of principal due during the related Remittance
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period) exceeds (ii) the
      aggregate Certificate Principal Balance of the Senior Certificates, Class P
      Certificates and the Subordinated Certificates as of such Distribution Date
      after giving effect to distributions to be made on such Distribution
      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 the Senior Certificates and each Class of the
      Subordinated Certificates and any Distribution Date, the lesser of (x) the
      related Formula Rate for such Distribution Date and (y) the Net WAC Rate for
      such Distribution Date. With respect to the Class C Interest and any
      Distribution Date, a per annum rate equal to the percentage equivalent of a
      fraction, the numerator of which is the sum of 100% of the interest on REMIC
      1
      Regular Interest LT1P and the amounts calculated pursuant to clauses (a) through
      (g) below, and the denominator of which is the aggregate of the Uncertificated
      Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest
      LT1A, REMIC 1 Regular Interest LT1M, REMIC 1 Regular Interest LT1B and REMIC
      1
      Regular Interest LT1ZZ. For purposes of calculating the Pass-Through Rate for
      the Class C Interest, the numerator is equal to the sum of the following
      components:

     

    (a) the
      Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular Interest LT1AA
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 1 Regular Interest LT1AA;

     

    (b) the
      Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular Interest LT1A
      minus
      the Marker Rate, applied to an amount equal to the Uncertificated Principal
      Balance of REMIC 1 Regular Interest LT1A;

     

    (c) the
      Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular Interest LT1M
      minus
      the Marker Rate, applied to an amount equal to the Uncertificated Principal
      Balance of REMIC 1 Regular Interest LT1M;

     

    (d) the
      Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular Interest LT1B
      minus
      the Marker Rate, applied to an amount equal to the Uncertificated Principal
      Balance of REMIC 1 Regular Interest LT1B; 

     

    (e) the
      Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular Interest LT1ZZ
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 1 Regular Interest LT1ZZ; and

     

    (f)
      100%
      of the interest on REMIC 1 Regular Interest LTP.

     

    The
      Class
      C Certificates will be entitled to (i) for the first 24 months, 75% of the
      interest distributed on the Class C Interest and (ii) thereafter, 100% of all
      amounts distributed on the Class C Interest.

     

    The
      Class
      P Certificates and Class R Certificates will not accrue interest and therefore
      will not have a Pass-Through Rate.

     

    “Paying
      Agent”: Any paying agent appointed pursuant to Section 5.05.

     

    “Percentage
      Interest”: With respect to any Certificate (other than a Class R Certificate), a
      fraction, expressed as a percentage, the numerator of which is the initial
      Certificate Principal Balance or initial Notional Amount represented by such
      Certificate and the denominator of which is the aggregate initial Certificate
      Principal Balance or aggregate initial Notional Amount of the related Class.
      With respect to a Class R Certificate, the portion of the Class evidenced
      thereby, expressed as a percentage, as stated on the face of such Certificate;
      provided, however, that the sum of all such percentages for such Class totals
      100%.

     

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

     

    “Permitted
      Investments”: Any one or more of the following obligations or securities
      acquired at a purchase price of not greater than par, regardless of whether
      issued or managed by the Depositor, the 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 its agent acting in their respective commercial capacities)
      incorporated under the laws of the United States of America or any state thereof
      and subject to supervision and examination by federal and/or state authorities;
      and (B) any other demand or time deposit or deposit which is fully insured
      by
      the FDIC;

     

    (iii) repurchase
      obligations with a term not to exceed 30 days with respect to any security
      described in clause (i) above and entered into with a depository institution
      or
      trust company (acting as principal) rated “A2” or higher by Moody’s and “A” by
      S&P; provided, however, that collateral transferred pursuant to such
      repurchase obligation must be of the type described in clause (i) above and
      must
      (A) be valued daily at current market prices plus accrued interest, (B) pursuant
      to such valuation, be equal, at all times, to 105% of the cash transferred
      by
      the Trustee in exchange for such collateral and (C) be delivered to the Trustee
      or, if the Trustee is supplying the collateral, an agent for the Trustee, in
      such a manner as to accomplish perfection of a security interest in the
      collateral by possession of certificated securities;

     

    (iv) with
      the
      prior written consent of the Certificate Insurer, securities bearing interest
      or
      sold at a discount that are issued by any corporation incorporated under the
      laws of the United States of America or any State thereof and that are rated
      by
      a Rating Agency in its highest long-term unsecured rating category at the time
      of such investment or contractual commitment providing for such
      investment;

     

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

     

    (vi) units
      of
      money market funds that have been rated “Aaa” by Moody’s and “AAAm” by S&P,
      including any such funds that may be managed or co-advised by the Trustee or
      an
      Affiliate of the Trustee; and

     

    (vii) if
      previously confirmed in writing to the Trustee, any other demand, money market
      or time deposit, or any other obligation, security or investment, as may be
      acceptable to the Rating Agencies and the Certificate Insurer in writing as
      a
      permitted investment of funds backing securities having ratings of “Aaa” by
      Moody’s and “AAA” by S&P;

     

    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. Furthermore, any
      Permitted Investment shall be relatively risk free and no options or voting
      rights shall be exercised with respect to any Permitted Investment and no
      Permitted Investment may be sold or disposed of before its
      maturity.

     

    “Permitted
      Transferee”: Any transferee of a Class R Certificate, other than a Disqualified
      Organization or a non-U.S. Person.

     

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

     

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

     

    “Policy”:
      The Certificate Guaranty Insurance Policy No. AB1054BE issued by the Certificate
      Insurer in respect of the Insured Certificates, a copy of which is attached
      hereto as Exhibit B.

     

    “Pool
      Balance”: As of any date of determination, the aggregate Stated Principal
      Balance of the Mortgage Loans as of such date.

     

    “Pre-Funding
      Account”: The account established and maintained pursuant to Section 3.23.

     

    “Premium”:
      The premium payable to the Certificate Insurer under the Policy.

     

    “Premium
      Rate”: A rate, expressed as a per annum rate, at which the Premium is payable to
      the Certificate Insurer under the Policy.

     

    “Prepaid
      Interest”: With respect to any Mortgage Loan that was originated after the
      Cut-off Date,  the amount paid by the related Mortgagor in respect of
      interest accrued on that Mortgage Loan from the date of origination through
      and
      including the last day of the month of origination. Prepaid Interest shall
      not
      be an asset of any REMIC. 

     

    “Prepayment
      Assumption”: A prepayment rate for the Mortgage Loans of 30% of the constant
      prepayment rate assumption (which represents an assumed annualized rate of
      prepayment relative to the then-outstanding balance of a pool of new mortgage
      loans).

     

    “Prepayment
      Charge”: With respect to any Mortgage Loan, the charges or premiums, if any, due
      in connection with a full or partial prepayment of such Mortgage Loan in
      accordance with the terms thereof.

     

    “Prepayment
      Charge Schedule”: As of any date, the list of Prepayment Charges included in the
      Trust Fund on that
      date
      (including the prepayment charge summary attached thereto). The Prepayment
      Charge Schedule shall contain the following information with respect to each
      Prepayment Charge:

     

    (i) the
      Mortgage Loan account number;

     

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

     

    (iii) the
      state
      of origination in which the related Mortgaged Property is located;

     

    (iv) the
      first
      date on which a monthly payment is or was due under the related Mortgage
      Note;

     

    (v) the
      term
      of the Prepayment Charge;

     

    (vi) the
      original principal amount of the related Mortgage Loan; and

     

    (vii) the
      Cut-off Date Principal Balance or Subsequent Cut-off Date Principal Balance,
      as
      applicable, of the related Mortgage Loan.

     

    The
      Prepayment Charge Schedule shall be amended from time to time by the Servicer
      in
      accordance with this Agreement.

     

    “Prepayment
      Interest Excess”: With respect to any Distribution Date, for each Mortgage Loan
      that was the subject of a Principal Prepayment in full during the portion of
      the
      related Prepayment Period occurring between the first day and the Determination
      Date of the calendar month in which such Distribution Date occurs, an amount
      equal to interest at the applicable Net Mortgage Rate on the amount of such
      Principal Prepayment for the number of days commencing on the first day of
      the
      calendar month in which such Distribution Date occurs and ending on the date
      on
      which such prepayment is so applied.

     

    “Prepayment
      Interest Shortfall”: With respect to any Distribution Date, for each Mortgage
      Loan that was the subject of a Principal Prepayment in full during the portion
      of the related Prepayment Period occurring between the first day of the related
      Prepayment Period and the last day of the calendar month preceding the month
      in
      which such Distribution Date occurs, an amount equal to one month’s interest on
      the Mortgage Loan less any interest payments made by the Mortgagor. The
      obligations of the Servicer in respect of any Prepayment Interest Shortfall
      are
      set forth in Section 3.26.

     

    “Prepayment
      Period”: With respect to any Distribution Date, the period commencing on the
      16th
      day in
      the calendar month preceding the calendar month in which such Distribution
      Date
      occurs (or, in the case of the first Distribution Date, commencing on the day
      after the Cut-Off Date) and ending on the 15th
      day of
      the calendar month in which such Distribution Date occurs.

     

    “Principal
      Distribution Amount”: With respect to any Distribution Date, an amount equal to
      the sum of (a) the excess of the Principal Remittance Amount over the Excess
      Overcollateralization Amount, if any, for such Distribution Date plus (b) the
      Extra Principal Distribution Amount.

     

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

     

    “Principal
      Remittance Amount”: With respect to any Distribution Date, the sum of (i) each
      scheduled payment of principal collected or advanced on the Mortgage Loans
      by
      the Servicer that was due during the related Remittance Period, (ii) the
      principal portion of all partial and full Principal Prepayments of the Mortgage
      Loans applied by the Servicer during the related Prepayment Period, (iii) the
      principal portion of all related Net Liquidation Proceeds, Subsequent Recoveries
      and Insurance Proceeds received during such Prepayment Period, (iv) that portion
      of the Purchase Price, representing principal of any purchased or repurchased
      Mortgage Loan, deposited to the Certificate Account during such Prepayment
      Period, (v) the principal portion of any related Substitution Adjustments
      deposited in the Certificate Account during such Prepayment Period and (vi)
      on
      the Distribution Date on which the Trust Fund is to be terminated pursuant
      to
      Section 10.01, that portion of the Termination Price, in respect of
      principal.

     

    “Private
      Certificate”: Any of the
      Class B,
      Class C, Class P and Class R Certificates.

     

    “Purchase
      Price”: With respect to any Mortgage Loan or REO Property to be purchased
      pursuant to or as contemplated by Section 2.03, Section 3.16(c) or Section
      10.01, and as confirmed by an Officers’ Certificate from the Servicer to the
      Trustee, an amount equal to the sum of (i) 100% of the Stated Principal Balance
      thereof as of the date of purchase (or such other price as provided in Section
      10.01), (ii) in the case of (x) a Mortgage Loan, accrued interest on such Stated
      Principal Balance at the applicable Mortgage Rate in effect from time to time
      from the Due Date as to which interest was last covered by a payment by the
      Mortgagor or an advance by the Servicer, which payment or advance had as of
      the
      date of purchase been distributed pursuant to Section 4.01, 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 Stated Principal Balance
      at
      the applicable Mortgage Rate in effect from time to time from the Due Date
      as to
      which interest was last covered by a payment by the Mortgagor or an advance
      by
      the Servicer through the end of the calendar month immediately preceding the
      calendar month in which such REO Property was acquired, plus (2) REO Imputed
      Interest for such REO Property for each calendar month commencing with the
      calendar month in which such REO Property was acquired and ending with the
      calendar month in which such purchase is to be effected, net of the total of
      all
      Insurance Proceeds, Liquidation Proceeds and Advances that as of the date of
      purchase had been distributed as or to cover REO Imputed Interest pursuant
      to
      Section 4.03, (iii) any unreimbursed Servicing Advances and Advances and any
      unpaid Servicing Fees allocable to such Mortgage Loan or REO Property, (iv)
      reserved and (v) in the case of a Mortgage Loan required to be purchased
      pursuant to Section 2.03, expenses reasonably incurred or to be incurred by
      the
      Servicer, the Certificate Insurer or the Trustee in respect of the breach or
      defect giving rise to the purchase obligation, including any costs and damages
      incurred by the Trust Fund in connection with any violation by such loan of
      any
      predatory or abusive lending law.

     

    “Qualified
      Insurer”: Any insurance company acceptable to Fannie Mae and/or Freddie
      Mac.

     

    “Qualified
      Substitute Mortgage Loan”: A mortgage loan substituted for a Deleted Mortgage
      Loan pursuant to the terms of this Agreement or the Mortgage Loan Purchase
      Agreement which must, on the date of such substitution, (i) have an outstanding
      Stated Principal Balance (or in the case of a substitution of more than one
      mortgage loan for a Deleted Mortgage Loan, an outstanding aggregate Stated
      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 5% less than, the outstanding Stated Principal Balance of the
      Deleted Mortgage Loan as of the Due Date in the calendar month during which
      the
      substitution occurs, (ii) have a Mortgage Rate not less than (and not more
      than
      one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage
      Loan, (iii) if the Deleted Mortgage Loan is an Adjustable-Rate Mortgage Loan,
      have a Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the
      Deleted Mortgage Loan, (iv) if the Deleted Mortgage Loan is an Adjustable-Rate
      Mortgage Loan, have a Minimum Mortgage Rate not less than the Minimum Mortgage
      Rate of the Deleted Mortgage Loan, (v) if the Deleted Mortgage Loan is an
      Adjustable-Rate Mortgage Loan, have a Gross Margin equal to or greater than
      the
      Gross Margin of the Deleted Mortgage Loan, (vi) if the Deleted Mortgage Loan
      is
      an Adjustable-Rate Mortgage Loan, have a next Adjustment Date not more than
      two
      months later than the next Adjustment Date on the Deleted Mortgage Loan, (vii)
      have a remaining term to maturity not more than one year greater than (and
      not
      more than one year less than) that of the Deleted Mortgage Loan, provided that
      no maturity is later than one month prior to the Final Distribution Date, (viii)
      be current as of the date of substitution, (ix) have a Loan-to-Value Ratio
      as of
      the date of substitution equal to or lower than the Loan-to-Value Ratio of
      the
      Deleted Mortgage Loan as of such date, (x) [reserved], (xi) have the same Due
      Date as that of the Deleted Mortgage Loan and (xii) conform to each
      representation and warranty set forth in Section 3.01 of the Mortgage Loan
      Purchase Agreement applicable to the Deleted Mortgage Loan. In the event that
      one or more mortgage loans are substituted for one or more Deleted Mortgage
      Loans, the amounts described in clause (i) hereof shall be determined on the
      basis of aggregate Stated Principal Balance, the Mortgage Rates described in
      clauses (ii) through (vi) hereof shall be satisfied for each such mortgage
      loan,
      the risk gradings described in clause (x) hereof shall be satisfied as to each
      such mortgage loan, the terms described in clause (vii) hereof shall be
      determined on the basis of weighted average remaining term to maturity (provided
      that no such mortgage loan may have a remaining term to maturity longer than
      the
      Deleted Mortgage Loan), the Loan-to-Value Ratios described in clause (ix) hereof
      shall be satisfied as to each such mortgage loan and, except to the extent
      otherwise provided in this sentence, the representations and warranties
      described in clause (xii) hereof must be satisfied as to each Qualified
      Substitute Mortgage Loan or in the aggregate, as the case may be.

     

    “Rating
      Agency”: Moody’s and S&P or their successors, in its capacity as rating
      agency that has assigned ratings to the Class A Certificates and the
      Subordinated Certificates. If such agency or its successor is no longer in
      existence, “Rating Agency” shall be such nationally recognized statistical
      rating agencies, or other comparable Persons, designated by the Depositor (and
      if rating the Insured Certificates, consented to in writing by the Certificate
      Insurer), notice of which designation shall be given to the Trustee and
      Servicer.

     

    “Realized
      Loss”: With respect to any Liquidated Mortgage Loan, the amount of loss realized
      equal to the portion of the Stated Principal Balance remaining unpaid after
      application of all Net Liquidation Proceeds in respect of such Mortgage Loan.
      If
      the Servicer receives Subsequent Recoveries with respect to any Mortgage Loan,
      the amount of the Realized Loss with respect to that Mortgage Loan will be
      reduced to the extent such recoveries are applied to principal distributions
      on
      any Distribution Date.

     

    “Record
      Date”: With respect to each Distribution Date and the Senior Certificates and
      the Subordinated Certificates (other than any such Certificates that are
      Definitive Certificates), the Business Day immediately preceding such
      Distribution Date. With respect to each Distribution Date and the Class C
      Certificates, the Class R Certificates and any Definitive Certificates, the
      last
      Business Day of the month immediately preceding the month in which such
      Distribution Date occurs (or, in the case of the first Distribution Date, the
      Closing Date).

     

    “Reference
      Banks”: Those banks (i) with an established place of business in London,
      England, (ii) not controlling, under the control of or under common control
      with
      the Depositor, the Seller or the Servicer or any affiliate thereof and (iii)
      which have been designated as such by the Depositor; provided, however, that
      if
      fewer than two of such banks provide a LIBOR rate, then the term “Reference
      Banks” shall refer to any leading banks selected by the Depositor which are
      engaged in transactions in United States dollar deposits in the international
      Eurocurrency market.

     

    “Refinance
      Loan”: Any Mortgage Loan the proceeds of which are used to refinance an existing
      Mortgage Loan.

     

    “Regular
      Certificates”: Any of the Class A Certificates, the Subordinated Certificates,
      the Class P Certificates and the Class C 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 clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be published by the Commission or its staff from time
      to
      time.

     

    “Reimbursement
      Amount”: As to any Distribution Date, the sum of (x) (i) all Insured Payments
      paid by the Certificate Insurer, but for which the Certificate Insurer has
      not
      been reimbursed prior to such Distribution Date pursuant to Section 4.01, plus
      (ii) interest accrued on such Insured Payments not previously repaid, calculated
      at the Late Payment Rate from the date the Trustee received the related Insured
      Payments or the date such Insured Payments were made, and (y) without
      duplication (i) any amounts then due and owing to the Certificate Insurer under
      the Insurance Agreement, as certified to the Trustee by the Certificate Insurer
      plus (ii) interest on such amounts at the Late Payment Rate.

     

    “Relief
      Act”: The Servicemembers Civil Relief Act.

     

    “Relief
      Act Interest Shortfall”: With respect to any Distribution Date, for any Mortgage
      Loan with respect to which there has been a reduction in the amount of interest
      collectible thereon for the most recently ended Remittance Period or (without
      duplication) any earlier Remittance Period as a result of the application of
      the
      Relief Act or any similar state laws, the amount by which (i) interest
      collectible on such Mortgage Loan during each such Remittance Period is less
      than (ii) one month’s interest on the Stated Principal Balance of such Mortgage
      Loan at the Mortgage Rate for such Mortgage Loan before giving effect to the
      application of the Relief Act or any similar state laws.

     

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

     

    “REMIC
      1”: The segregated pool of assets subject hereto, constituting the primary trust
      created hereby and to be administered hereunder, with respect to which a REMIC
      election is to be made, consisting of: (i) such Mortgage Loans and Prepayment
      Charges as from time to time are subject to this Agreement, together with the
      Mortgage Files relating thereto, and together with all collections thereon
      and
      proceeds thereof; (ii) any REO Property, together with all collections thereon
      and proceeds thereof; (iii) the Trustee’s rights with respect to the Mortgage
      Loans under all insurance policies, required to be maintained pursuant to this
      Agreement and any proceeds thereof; (iv) the Depositor’s rights under this
      Agreement (including any security interest created thereby) to the extent
      conveyed pursuant to Section 2.01; and (v) the Certificate Account, the
      Distribution Account and such assets that are deposited therein from time to
      time and any investments thereof, together with any and all income, proceeds
      and
      payments with respect thereto. Notwithstanding the foregoing, however, REMIC
      1
      specifically excludes the Excess Reserve Fund Account, the Pre-Funding Account,
      the Interest Coverage Account, any Prepaid Interest, all payments and other
      collections of principal and interest due on the Mortgage Loans on or before
      the
      Cut-off Date and all Prepayment Charges payable in connection with Principal
      Prepayments made before the Cut-off Date.

     

    “REMIC
      1
      Interest Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) the aggregate Stated Principal Balance
      of
      the Mortgage Loans and related REO Properties then outstanding and (ii) the
      Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular Interest LT1AA
      minus the Marker Rate, divided by (b) 12.

     

    “REMIC
      1
      Overcollateralized Amount”: With respect to any date of determination, (i) 1% of
      the aggregate Uncertificated Principal Balances of the REMIC 1 Regular Interests
      (other than REMIC 1 Regular Interest LT1P) minus (ii) the aggregate of the
      Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1
      Regular Interest LT1M, REMIC 1 Regular Interest LT1B and REMIC 1 Regular
      Interest LT1ZZ, in each case as of such date of determination.

     

    “REMIC
      1
      Principal Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) the aggregate Stated Principal Balance
      of
      the Mortgage Loans and related REO Properties then outstanding and (ii) 1 minus
      a fraction, the numerator of which is two times the aggregate of the
      Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1
      Regular Interest LT1M and REMIC 1 Regular Interest LT1B, and the denominator
      of
      which is the aggregate of the Uncertificated Principal Balances of REMIC 1
      Regular Interest LT1A, REMIC 1 Regular Interest LT1M, REMIC 1 Regular Interest
      LT1B and REMIC 1 Regular Interest LT1ZZ.

     

    “REMIC
      1
      Regular Interest”: Any of the separate non-certificated beneficial ownership
      interests in REMIC 1 issued hereunder and designated as a “regular interest” in
      REMIC 1. Each REMIC 1 Regular Interest shall accrue interest at the related
      Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
      be entitled to distributions of principal, subject to the terms and conditions
      hereof, in an aggregate amount equal to its initial Uncertificated Balance
      as
      set forth in the Preliminary Statement hereto. The following is a list of each
      of the REMIC 1 Regular Interests: REMIC 1 Regular Interest LT1AA, REMIC 1
      Regular Interest LT1A, REMIC 1 Regular Interest LT1M, REMIC 1 Regular Interest
      LT1B, REMIC 1 Regular Interest LT1ZZ and REMIC 1 Regular Interest
      LT1P.

     

    “REMIC
      1
      Regular Interest LT1AA”: One of the separate non-certificated beneficial
      ownership interests in REMIC 1 issued hereunder and designated as a Regular
      Interest in REMIC 1. REMIC 1 Regular Interest LT1AA shall accrue interest at
      the
      related Uncertificated REMIC 1 Pass-Through Rate in effect from time to time,
      and shall be entitled to distributions of principal, subject to the terms and
      conditions hereof, in an aggregate amount equal to its initial Uncertificated
      Principal Balance as set forth in the Preliminary Statement hereto.

     

    “REMIC
      1
      Regular Interest LT1A”: One of the separate non-certificated beneficial
      ownership interests in REMIC 1 issued hereunder and designated as a Regular
      Interest in REMIC 1. REMIC 1 Regular Interest LT1A shall accrue interest at
      the
      related Uncertificated REMIC 1 Pass-Through Rate in effect from time to time,
      and shall be entitled to distributions of principal, subject to the terms and
      conditions hereof, in an aggregate amount equal to its initial Uncertificated
      Principal Balance as set forth in the Preliminary Statement hereto.

     

    “REMIC
      1
      Regular Interest LT1B”: One of the separate non-certificated beneficial
      ownership interests in REMIC 1 issued hereunder and designated as a Regular
      Interest in REMIC 1. REMIC 1 Regular Interest LT1B shall accrue interest at
      the
      related Uncertificated REMIC 1 Pass-Through Rate in effect from time to time,
      and shall be entitled to distributions of principal, subject to the terms and
      conditions hereof, in an aggregate amount equal to its initial Uncertificated
      Principal Balance as set forth in the Preliminary Statement hereto.

     

    “REMIC
      1
      Regular Interest LT1M”: One of the separate non-certificated beneficial
      ownership interests in REMIC 1 issued hereunder and designated as a Regular
      Interest in REMIC 1. REMIC 1 Regular Interest LT1M shall accrue interest at
      the
      related Uncertificated REMIC 1 Pass-Through Rate in effect from time to time,
      and shall be entitled to distributions of principal, subject to the terms and
      conditions hereof, in an aggregate amount equal to its initial Uncertificated
      Principal Balance as set forth in the Preliminary Statement hereto.

     

    “REMIC
      1
      Regular Interest LT1ZZ”: One of the separate non-certificated beneficial
      ownership interests in REMIC 1 issued hereunder and designated as a Regular
      Interest in REMIC 1. REMIC 1 Regular Interest LT1ZZ shall accrue interest at
      the
      related Uncertificated REMIC 1 Pass-Through Rate in effect from time to time,
      and shall be entitled to distributions of principal, subject to the terms and
      conditions hereof, in an aggregate amount equal to its initial Uncertificated
      Principal Balance as set forth in the Preliminary Statement hereto.

     

    “REMIC
      1
      Regular Interest LT1P”: One of the separate non-certificated beneficial
      ownership interests in REMIC 1 issued hereunder and designated as a Regular
      Interest in REMIC 1. REMIC 1 Regular Interest LT1P shall accrue interest at
      the
      related Uncertificated REMIC 1 Pass-Through Rate in effect from time to time,
      and shall be entitled to distributions of principal, subject to the terms and
      conditions hereof, in an aggregate amount equal to its initial Uncertificated
      Principal Balance as set forth in the Preliminary Statement hereto.

     

    “REMIC
      1
      Target Overcollateralized Amount”: 1% of the Overcollateralization Target
      Amount.

     

    “REMIC
      2”: The segregated pool of assets consisting of all of the REMIC 1 Regular
      Interests conveyed in trust to the Trustee, for the benefit of the Holders
      of
      the Regular Certificates and the Class R Certificate (in respect of the Class
      R-2 Interest), pursuant to Article II hereunder, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    “REMIC
      3”: The segregated pool of assets consisting of the Class C Interest and the
      Class P Interest conveyed in trust to the Trustee, for the benefit of the
      Holders of the Class IO Certificates, Class C Certificates, Class P Certificates
      and the Class R Certificate (in respect of the Class R-3 Interest), pursuant
      to
      Article II hereunder, and all amounts deposited therein, with respect to which
      a
      separate REMIC election is to be made.

     

    “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
      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.

     

    “Remittance
      Report”: A report prepared by the Servicer and delivered to the Trustee pursuant
      to Section 4.03.

     

    “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 the Servicer in respect of an
      REO Property pursuant to Section 3.25.

     

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

     

    “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 Mortgage Rate on the Stated Principal Balance of such
      REO
      Property (or, in the case of the first such calendar month, of the related
      Mortgage Loan if appropriate) as of the Close of Business on the Distribution
      Date in such calendar month.

     

    “REO
      Principal Amortization”: With respect to any REO Property, for any calendar
      month, the excess, if any, of (a) the aggregate of all amounts received in
      respect of such REO Property during such calendar month, whether in the form
      of
      rental income, sale proceeds (including, without limitation, that portion of
      the
      Termination Price paid in connection with a purchase of all of the Mortgage
      Loans and REO Properties pursuant to Section 10.01 that is allocable to such
      REO
      Property) or otherwise, net of any portion of such amounts (i) payable pursuant
      to Section 3.25 in respect of the proper operation, management and maintenance
      of such REO Property or (ii) payable or reimbursable to the Servicer pursuant
      to
      Section 3.25 for unpaid 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.

     

    “REO
      Property”: A Mortgaged Property acquired by the Servicer on behalf of the Trust
      Fund through foreclosure or deed-in-lieu of foreclosure, as described in Section
      3.25.

     

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

     

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

     

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

     

    “Responsible
      Officer”: When used with respect to the Trustee, any director, any vice
      president, any assistant vice president, the Secretary, any assistant secretary,
      the Treasurer, any assistant treasurer, the Cashier, any assistant cashier,
      any
      trust officer or assistant trust officer, the Controller and any assistant
      controller 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.

     

    “S&P”:
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc., or its successor in interest.

     

    “Seller”:
      IndyMac Bank, F.S.B. in its capacity as seller under the Mortgage Loan Purchase
      Agreement.

     

    “Senior
      Certificates”: The Class A Certificates and Class IO Certificates. 

     

    “Servicer”:
      IndyMac Bank, F.S.B., a federal savings bank, or any successor Servicer
      appointed as herein provided, in its capacity as Servicer
      hereunder.

     

    “Servicer
      Event of Termination”: One or more of the events described in Section
      7.01.

     

    “Servicer
      Remittance Date”: With respect to any Distribution Date, the Business Day prior
      to such Distribution Date.

     

    “Servicing
      Account”: The account or accounts created and maintained pursuant to Section
      3.09.

     

    “Servicing
      Advances”: All customary, reasonable and necessary “out of pocket” costs and
      expenses (including reasonable attorneys’ fees and expenses) incurred by the
      Servicer in the performance of its servicing obligations, 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 maintenance and liquidation
      of
      the REO Property and (iv) compliance with the obligations under Sections 3.01,
      3.09, 3.16, and 3.25.

     

    “Servicing
      Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
      equal to one month’s interest (or in the event of any payment of interest which
      accompanies a Principal Prepayment in full made by the Mortgagor during such
      calendar month, interest for the number of days covered by such payment of
      interest) at the Servicing Fee Rate on the same principal amount on which
      interest on such Mortgage Loan accrues for such calendar month. A portion of
      such Servicing Fee may be retained by any Sub-Servicer as its servicing
      compensation.

     

    “Servicing
      Fee Rate”: 0.250% per annum.

     

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

     

    “Servicing
      Standard”: Shall mean the standards set forth in Section 3.01.

     

    “Servicing
      Transfer Costs”: Shall mean all reasonable costs and expenses (including without
      limitation, legal fees and expenses) incurred by the Trustee in connection
      with
      the transfer of servicing from a predecessor Servicer, including, without
      limitation, any reasonable costs or expenses associated with the complete
      transfer of all servicing data and the completion, correction or manipulation
      of
      such servicing data as may be required by the Trustee to correct any errors
      or
      insufficiencies in the servicing data or otherwise to enable the Trustee or
      another successor Servicer to service the Mortgage Loans properly and
      effectively.

     

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

     

    “Stated
      Principal Balance”: With respect to any Mortgage Loan: (a) as of any date of
      determination up to but not 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 Stated Principal Balance of such Mortgage
      Loan as of the Cut-off Date, as shown in the Mortgage Loan Schedule, minus
      the
      sum of (i) the principal portion of each Monthly Payment due on a Due Date
      subsequent to the Cut-off Date, to the extent received from the Mortgagor or
      advanced by the Servicer and distributed pursuant to Section 4.01 on or before
      such date of determination, (ii) all Principal Prepayments received after the
      Cut-off Date, to the extent distributed pursuant to Section 4.01 on or before
      such date of determination, (iii) all Liquidation Proceeds and Insurance
      Proceeds to the extent distributed pursuant to Section 4.01 on or before such
      date of determination, and (iv) any Realized Loss incurred with respect thereto
      as a result of a Deficient Valuation made during or prior to the Remittance
      Period for the most recent Distribution Date coinciding with or preceding such
      date of determination; and (b) as of any date of determination coinciding with
      or 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: (a) as of any date of determination up to
      but
      not 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 Fund, 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 4.01 on or before such date of
      determination; and (b) as of any date of determination coinciding with or
      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.

     

    “Stepdown
      Date”: The earlier to occur of (i) the Distribution Date following the
      Distribution Date on which the aggregate Certificate Principal Balance of the
      Class A Certificates have been reduced to zero and (ii) the later
      to
      occur of (a) the Distribution Date in January 2010 and (b) the first
      Distribution Date on which the Credit Enhancement Percentage for the Class
      A
      Certificates (calculated for this purpose only after taking into account
      distributions of principal on the Mortgage Loans on the last day of the related
      Remittance Period but prior to any application of the Principal Distribution
      Amount to the Certificates) is greater than or equal to 6.70%.

     

    “Subordinated
      Certificate”: Any Class M Certificate or Class B Certificate.

     

    “Subsequent
      Cut-off Date”: As to any Subsequent Mortgage Loans, the later of (i) the first
      day of the month in which the related Subsequent Transfer Date occurs or (ii)
      the date of origination of such Subsequent Mortgage Loan.

     

    “Subsequent
      Cut-off Date Principal Balance”: As to any Subsequent Mortgage Loan, its Stated
      Principal Balance as of the close of business on the applicable Subsequent
      Cut-off Date.

     

    “Subsequent
      Mortgage Loan”: A Mortgage Loan sold by the Seller to the Depositor and the
      Depositor to the Trust Fund pursuant to Section 2.04, such Mortgage Loan being
      identified on the Mortgage Loan Schedule attached to a Subsequent Transfer
      Instrument.

     

    “Subsequent
      Recoveries”: As of any Distribution Date, amounts received by the Servicer (net
      of any related expenses permitted to be reimbursed pursuant to Section 3.05)
      specifically related to a Mortgage Loan that was the subject of a liquidation
      or
      an REO Disposition prior to the related Prepayment Period that resulted in
      a
      Realized Loss.

     

    “Subsequent
      Transfer Date”: With respect to each Subsequent Transfer Instrument, the date on
      or before the end of the Funding Period on which the related Subsequent Mortgage
      Loans are sold to the Trust Fund.

     

    “Subsequent
      Transfer Instrument”: Each Subsequent Transfer Instrument, dated as of a
      Subsequent Transfer Date, executed by the Trustee and the Depositor
      substantially in the form attached hereto as Exhibit Q, by which Subsequent
      Mortgage Loans are transferred to the Trust Fund. 

     

    “Sub-Servicer”:
      Any Person with which the Servicer has entered into a Sub-Servicing Agreement
      and which meets the qualifications of a Sub-Servicer pursuant to Section
      3.02.

     

    “Sub-Servicing
      Account”: An account established by a Sub-Servicer which meets the requirements
      set forth in Section 3.08 and is otherwise acceptable to the
      Servicer.

     

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

     

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

     

    “Tax
      Matters Person”: The tax matters person appointed pursuant to Section 9.01(e)
      hereof.

     

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

     

    “Terminator”:
      As defined in Section 10.01 hereof.

     

    “Total
      Monthly Excess Spread”: With respect to any Distribution Date, the sum of (i)
      any Excess Overcollateralization Amount for such Distribution Date and (ii)
      the
      excess, if any, of (x) the Available Funds for such Distribution Date over
      (y)
      the sum for such Distribution Date of (A) the amount required to be distributed
      pursuant to Section 4.01(a) and (B) the Principal Remittance Amount for such
      Distribution Date. For federal income tax purposes, Total Monthly Excess Spread
      shall consist only of amounts distributed on the Class C
      Certificates.

     

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

     

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

     

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

     

    “Trigger
      Event”: A Trigger Event is in effect if:

     

    (i) with
      respect to any Distribution Date occurring from and including January 2010
      to,
      but not including, January 2012, the Mortgage Loans 60 or more days Delinquent,
      in bankruptcy, in foreclosure or that are secured by Mortgaged Properties that
      have become REO Properties exceed 3.00% of the aggregate Stated Principal
      Balance of the Mortgage Loans on such Distribution Date;

     

    (ii) with
      respect to any Distribution Date occurring on or after January 2012, the
      Mortgage Loans 60 or more days Delinquent or that are secured by Mortgaged
      Properties that have become REO Properties exceed 4.50% of the aggregate Stated
      Principal Balance of the Mortgage Loans on such Distribution Date;
      or

     

    (iii) for
      any
      Distribution Date, the
      cumulative amount of Realized Losses incurred on the Mortgage Loans from the
      Cut-Off Date through the last day of the related Remittance Period (reduced
      by
      the aggregate amount of Subsequent Recoveries received from the Cut-Off Date
      through the last day of the related Remittance Period) exceeds (a) 1.00% of
      the
      aggregate Stated Principal Balance of the Closing Date Mortgage Loans and
      Subsequent Mortgage Loans as of their respective Cut-Off Dates with respect
      to
      the Distribution Date in January 2009, plus an additional 1/12th of 0.75% of
      the
      aggregate Stated Principal Balance of the Closing Date Mortgage Loans and
      Subsequent Mortgage Loans as of their respective Cut-Off Dates for each
      Distribution Date occurring in each month thereafter to and including the
      Distribution Date in December 2009, (b) 1.75% of the aggregate Stated Principal
      Balance of the Closing Date Mortgage Loans and Subsequent Mortgage Loans as
      of
      their respective Cut-Off Dates with respect to the Distribution Date in January
      2010, plus an additional 1/12th of 0.75% of the aggregate Stated Principal
      Balance of the Closing Date Mortgage Loans and Subsequent Mortgage Loans as
      of
      their respective Cut-Off Dates for each Distribution Date occurring in each
      month thereafter to and including the Distribution Date in December 2010, (c)
      2.50% of the aggregate Stated Principal Balance of the Closing Date Mortgage
      Loans and Subsequent Mortgage Loans as of their respective Cut-Off Dates with
      respect to the Distribution Date occurring in January 2011, plus an additional
      1/12th of 0.50% of the aggregate Stated Principal Balance of the Closing Date
      Mortgage Loans and Subsequent Mortgage Loans as of their respective Cut-Off
      Dates for each Distribution Date occurring in each month thereafter to and
      including the Distribution Date in December 2011 or (d) 3.00% of the aggregate
      Stated Principal Balance of the Closing Date Mortgage Loans and Subsequent
      Mortgage Loans as of their respective Cut-Off Dates with respect to the
      Distribution Date occurring in December 2012 and each month
      thereafter.

     

    “Trust”:
      The trust created hereunder.

     

    “Trustee”:
      Deutsche Bank National Trust Company, a national banking association, or its
      successor in interest, or any successor Trustee appointed as herein
      provided.

     

    “Trustee
      Fee”: The amount payable to the Trustee on each Distribution Date pursuant to
      Section 4.01(a) and Section 8.05 as compensation for all services rendered
      by it
      in the execution of the Trust and in the exercise and performance of any of
      the
      powers and duties of the Trustee hereunder, which amount shall equal one month’s
      interest at the Trustee Fee Rate on the aggregate Stated Principal Balance
      of
      the Mortgage Loans and any REO Properties as of the first day of the calendar
      month prior to the month of such Distribution Date (or, in the case of the
      initial Distribution Date, as of the Cut-off Date).

     

    “Trustee
      Fee Rate”: 0.015% per annum.

     

    “Trustee
      Float Period”: With respect to each Distribution Date and the related amounts in
      the Distribution Account, the period commencing on the Business Day immediately
      preceding such Distribution Date and ending on such Distribution
      Date.

     

    “Trust
      Fund”: All of the assets of the trust created hereunder consisting of REMIC 1,
      REMIC 2, REMIC 3, the Excess Reserve Fund Account, the Pre-Funding Account,
      the
      Interest Coverage Account and the Insurance Account.

     

    “Trust
      REMIC”: REMIC 1, REMIC 2 or REMIC 3.

     

    “Uncertificated
      Accrued Interest”: With respect to each REMIC Regular Interest on each
      Distribution Date, an amount equal to one month’s interest at the related
      Uncertificated REMIC Pass-Through Rate on the Uncertificated Principal Balance
      or Uncertificated Notional Amount of such REMIC Regular Interest. In each case,
      Uncertificated Accrued Interest will be reduced by any Net Prepayment Interest
      Shortfalls and Relief Act Interest Shortfalls (allocated to such REMIC Regular
      Interest as set forth in Section 1.02).

     

    “Uncertificated
      Principal Balance”: With respect to each REMIC Regular Interest, the amount of
      such REMIC Regular Interest outstanding as of any date of determination. As
      of
      the Closing Date, the Uncertificated Principal Balance of each REMIC Regular
      Interest shall equal the amount set forth in the Preliminary Statement hereto
      as
      its initial Uncertificated Principal Balance. On each Distribution Date, the
      Uncertificated Principal Balance of each REMIC Regular Interest shall be reduced
      by all distributions of principal made on such REMIC Regular Interest on such
      Distribution Date pursuant to Section 4.04 and, if and to the extent necessary
      and appropriate, shall be further reduced on such Distribution Date by Realized
      Losses as provided in Section 4.05, and the Uncertificated Principal Balance
      of
      REMIC 1 Regular Interest LT1ZZ shall be increased by interest deferrals as
      provided in Section 4.05. The Uncertificated Principal Balance of each REMIC
      Regular Interest that has an Uncertificated Principal Balance shall never be
      less than zero.

     

    “Uncertificated
      REMIC Pass-Through Rate”: The Uncertificated REMIC 1 Pass-Through
      Rate.

     

    “Uncertificated
      REMIC 1 Pass-Through Rate”: With respect to each REMIC 1 Regular Interest, a per
      annum rate equal to the weighted average (weighted based on the Stated Principal
      Balances of the Mortgage Loans as of the first day of the related Remittance
      Period, adjusted to reflect unscheduled principal payments made thereafter
      that
      were included in the Principal Distribution Amount on the immediately preceding
      Distribution Date) of the Expense Adjusted Mortgage Rates on the Mortgage Loans
      minus the Premium Rate on such Distribution Date (multiplied by a fraction
      the
      numerator of which is the aggregate Certificate Principal Balance of the Class
      A
      Certificates immediately prior to such Distribution Date and the denominator
      of
      which is the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      first day of the related Remittance Period, adjusted to reflect unscheduled
      principal payments made thereafter that were included in the Principal
      Distribution Amount on the immediately preceding Distribution
      Date).

     

    “Uninsured
      Cause”: Any cause of damage to a Mortgaged Property such that the complete
      restoration of such property is not fully reimbursable by the insurance policies
      required to be maintained pursuant to Section 3.14.

     

    “United
      States Person”: A citizen or resident of the United States, a corporation,
      partnership (or other entity treated as a corporation or partnership for United
      States federal income tax purposes) created or organized in, or under the laws
      of, the United States, any state thereof, or the District of Columbia (except
      in
      the case of a partnership, to the extent provided in Treasury regulations);
      provided, that for purposes solely of the restrictions on the transfer of Class
      R Certificates, no partnership or other entity treated as a partnership for
      United States federal income tax purposes shall be treated as a United States
      Person unless (a) all persons that own an interest in such partnership either
      directly or through any entity that is not a corporation for United States
      federal income tax purposes are required by the applicable operative agreement
      to be United States Persons or (b) the partnership treats all income as
      effectively connected income within the meaning of Section 864 of the Code,
      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. The term “U.S. Person” refers
      to a United States Person.

     

    “Unpaid
      Interest Shortfall Amount”: With respect to the Class A Certificates and any
      Class of Subordinated Certificates and (i) the first Distribution Date, zero,
      and (ii) any Distribution Date after the first Distribution Date, the amount,
      if
      any, by which (a) the sum of (1) the Accrued Certificate Interest for such
      Class
      for the immediately preceding Distribution Date and (2) the outstanding Unpaid
      Interest Shortfall Amount, if any, for such Class for such preceding
      Distribution Date exceeds (b) the aggregate amount distributed to such Class
      in
      respect of interest pursuant to clause (a) of this definition on such preceding
      Distribution Date, plus interest on the amount of interest due but not paid
      on
      the Certificates of such Class on such preceding Distribution Date, to the
      extent permitted by law, at the Pass-Through Rate for such Class for the related
      Accrual Period.

     

    “Value”:
      With respect to a Mortgage Loan other than a Refinance Loan, the lesser of
      (a)
      the value of the Mortgaged Property based upon the appraisal made at the time
      of
      the origination of such Mortgage Loan and (b) the sales price of the Mortgaged
      Property at the time of the origination of such Mortgage Loan; with respect
      to a
      Refinance Loan, the value of the Mortgaged Property based upon the appraisal
      made at the time of the origination of such Refinance Loan.

     

    “Voting
      Rights”: The portion of the voting rights of all of the Certificates which is
      allocated to any Certificate. At all times, the Senior Certificates, the
      Subordinated Certificates, the Class P Certificates and the Class C Certificates
      shall have 99% of the Voting Rights (allocated among the Holders of the Senior
      Certificates, the Subordinated Certificates and the Class C Certificates in
      proportion to the then outstanding Certificate Principal Balances of their
      respective Certificates), and the Class R Certificates shall have 1% of the
      Voting Rights. The Voting Rights allocated to any Class of Certificates (other
      than the Class R Certificates) shall be allocated among all Holders of each
      such
      Class in proportion to the outstanding Certificate Principal Balance or Notional
      Amount of such Certificates; provided, that any Certificate registered in the
      name of the Seller, the Depositor or its Affiliate shall not be eligible to
      vote
      or be considered outstanding and the Percentage Interest evidenced thereby
      shall
      not be taken into account in determining whether the requisite amount of
      Percentage Interests necessary to effect a consent has been obtained unless
      the
      Seller, the Depositor or its Affiliates own 100% of the related Class of such
      Certificates. The Voting Rights allocated to the Class R Certificates shall
      be
      allocated among all Holders of such Class in proportion to such Holders’
respective Percentage Interests in the Class R Certificates; provided, however,
      that when none of the Regular Certificates are outstanding, 100% of the Voting
      Rights shall be allocated among Holders of the Class R Certificates in
      accordance with such Holders’ respective Percentage Interests in the Class R
      Certificates.

     

    Section
      1.02.  Allocation
      of Certain Interest Shortfalls.

     

    For
      purposes of calculating the amount of the Accrued Certificate Interest for
      the
      Class A Certificates, the Subordinated Certificates and the Class C Certificates
      for any Distribution Date, the aggregate amount of any Net Prepayment Interest
      Shortfalls and any Relief Act Interest Shortfalls incurred in respect of the
      Mortgage Loans for any Distribution Date (together, “Net Interest Shortfalls”)
      shall be allocated first, to reduce the interest accrued on the Class C
      Certificates in the related Accrual Period up to an amount equal to one month’s
      interest at the then applicable Pass-Through Rate on the Notional Amount of
      such
      Certificates and, thereafter, to reduce the interest accrued during the related
      Accrual Period on the Class A Certificates and the Subordinated Certificates
      on
      a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Pass-Through Rate on the respective Certificate Principal Balance
      of
      each such Certificate.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC 1 Regular Interests for any Distribution Date, the aggregate amount of
      any
      Net Prepayment Interest Shortfalls and any Relief Act Interest Shortfalls
      incurred in respect of the Mortgage Loans for any Distribution Date shall be
      allocated among REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1A,
      REMIC 1 Regular Interest LT1M, REMIC 1 Regular Interest LT1B, REMIC 1 Regular
      Interest LT1ZZ and REMIC 1 Regular Interest LT1P pro
      rata based
      on,
      and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC 1 Pass-Through Rate on the respective Uncertificated
      Principal Balance of each such REMIC 1 Regular Interest. Any Net Interest
      Shortfalls allocated to the Class C Certificates shall be deemed to be allocated
      to the Class C Interest.

     

    Section
      1.03.  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 required to be 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,
      in trust for the benefit of the Certificateholders and the Certificate Insurer,
      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 Closing
      Date Mortgage Loan identified on the Mortgage Loan Schedule, including the
      related Stated Principal Balance as of the Cut-off Date, all interest and
      principal received thereon after the Cut-off Date (other than interest and
      principal due on such Closing Date Mortgage Loans on or before the Cut-off
      Date
      and other than Prepaid Interest with respect to such Mortgage Loans); (ii)
      property which secured each such Closing Date Mortgage Loan and which has been
      acquired by foreclosure or deed in lieu of foreclosure; (iii) its interest
      in
      any insurance policies in respect of the Closing Date Mortgage Loans; (iv)
      all
      proceeds of any of the foregoing; (v) the rights of the Depositor under the
      Mortgage Loan Purchase Agreement; and (vi) all other assets included or to
      be
      included in the Trust Fund. 

     

    In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with, the Trustee or its designated agent (the “Custodian”), the
      following documents or instruments with respect to each Closing Date Mortgage
      Loan so transferred and assigned (with respect to each Mortgage Loan, a
“Mortgage File”):

     

    (i)  the
      original Mortgage Note, endorsed either (A) in blank or (B) in the following
      form: “Pay to the order of Deutsche Bank National Trust Company, as Trustee,
      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 Stated Principal
      Balance of which is less than or equal to 2.0% of the Pool Balance as of the
      Cut-off Date;

     

    (ii)  the
      original Mortgage 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 copy
      of
      such Mortgage or power of attorney, as the case may be, certified to be a true
      and complete copy of the original submitted for recording;

     

    (iii)  an
      original Assignment, in form and substance acceptable for recording. The
      Mortgage shall be assigned either (A) in blank or (B) to “Deutsche Bank National
      Trust Company, as Trustee, without recourse”;

     

    (iv)  an
      original copy of any intervening Assignment, showing a complete chain of
      assignments;

     

    (v)  the
      original or a certified copy of the lender’s title insurance policy;
      and

     

    (vi)  the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any.

     

    With
      respect to up to 30% of the Closing Date Mortgage Loans and
      Subsequent Mortgage Loans,
      the
      Depositor may deliver all or a portion of each related Mortgage File to the
      Trustee not later than five Business Days after the Closing Date or Subsequent
      Transfer Date, as applicable (such Closing Date Mortgage Loans and
      Subsequent Mortgage Loans,
      the
“Delayed Delivery Mortgage Loans”).

     

    If
      any of
      the documents referred to in Section 2.01(ii), (iii) or (iv) above has as of
      the
      Closing Date been submitted for recording but either (x) has not been returned
      from the applicable public recording office or (y) has been lost or such public
      recording office has retained the original of such document, the obligations
      of
      the Depositor to deliver such documents shall be deemed to be satisfied upon
      (1)
      delivery to the Trustee or the Custodian no later than the Closing Date, of
      a
      copy of each such document certified by the Servicer, in its capacity as Seller,
      in the case of (x) above or the applicable public recording office in the case
      of (y) above to be a true and complete copy of the original that was submitted
      for recording and (2) if such copy is certified by the Servicer, in its capacity
      as Seller, delivery to the Trustee or the Custodian, promptly upon receipt
      thereof of either the original or a copy of such document certified by the
      applicable public recording office to be a true and complete copy of the
      original. If the original lender’s title insurance policy, or a certified copy
      thereof, was not delivered pursuant to Section 2.01(v) above, the Depositor
      shall deliver or cause to be delivered to the Trustee or the Custodian, 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 certified copy thereof to be delivered to the Trustee or the
      Custodian, promptly upon receipt thereof. The Servicer or the Depositor shall
      deliver or cause to be delivered to the Trustee or the Custodian promptly upon
      receipt thereof any other documents constituting a part of a Mortgage File
      received with respect to any Mortgage Loan, including, but not limited to,
      any
      original documents evidencing an assumption or modification of any Mortgage
      Loan.

     

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

     

    The
      Depositor (at the expense of the Seller) shall cause the Assignments which
      were
      delivered in blank to be completed and shall cause all Assignments referred
      to
      in Section 2.01(iii) hereof and, to the extent necessary, in Section 2.01(iv)
      hereof to be recorded. The Depositor shall furnish the Trustee, or its
      designated agent, with a copy of each Assignment submitted for recording. In
      the
      event that any such Assignment is lost or returned unrecorded because of a
      defect therein, the Depositor shall promptly have a substitute Assignment
      prepared or have such defect cured, as the case may be, and thereafter cause
      each such Assignment to be duly recorded.

     

    Notwithstanding
      the foregoing, however, for administrative convenience and facilitation of
      servicing and to reduce closing costs, the Assignments shall not be required
      to
      be submitted for recording (except with respect to any Mortgage Loan located
      in
      Maryland) unless such failure to record would result in a withdrawal or a
      downgrading by any Rating Agency of the rating on any Class of Certificates
      (with respect to the Class A Certificates only, without regard to the
      Certificate Policy; provided further, however, each Assignment shall be
      submitted for recording by the Originator (or by the Servicer at the expense
      of
      the Originator in the case of clauses (v) and (vi) below) in the manner
      described above, at no expense to the Trust Fund, the Servicer or the Trustee,
      upon the earliest to occur of: (i) direction by Holders of Certificates entitled
      to at least 25% of the Voting Rights, (ii) [reserved], (iii) the occurrence
      of a
      bankruptcy or insolvency relating to the Originator, (iv) the occurrence of
      a
      servicing transfer as described in Section 7.02 hereof, (v) with respect to
      any
      one Assignment, the occurrence of a bankruptcy, insolvency or foreclosure
      relating to the Mortgagor under the related Mortgage and (vi) with respect
      to
      any Assignments, the payment in full of the related Mortgage Note if required
      in
      the applicable jurisdiction. Notwithstanding the foregoing, if the Originator
      is
      unable to pay the cost of recording the Assignments, such expense shall be
      paid
      by the Trustee and shall be reimbursable to the Trustee as an Extraordinary
      Trust Fund Expense.

     

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

     

    The
      Servicer shall forward to the Custodian original documents evidencing an
      assumption, modification, consolidation or extension of any Mortgage Loan
      entered into in accordance with this Agreement within two weeks of their
      execution; provided, however, that the Servicer shall provide the Custodian
      with
      a certified true copy of any such document submitted for recordation within
      two
      weeks of its execution, and shall provide the original of any document submitted
      for recordation or a copy of such document certified by the appropriate public
      recording office to be a true and complete copy of the original within 270
      days
      of its submission for recordation. In the event that the Servicer cannot provide
      a copy of such document certified by the public recording office within such
      270
      day period, the Servicer shall deliver to the Custodian, within such 270 day
      period, an Officer’s Certificate of the Servicer which shall (A) identify the
      recorded document, (B) state that the recorded document has not been delivered
      to the Custodian due solely to a delay caused by the public recording office,
      (C) state the amount of time generally required by the applicable recording
      office to record and return a document submitted for recordation, if known,
      and
      (D) specify the date the applicable recorded document is expected to be
      delivered to the Custodian, and, upon receipt of a copy of such document
      certified by the public recording office, the Servicer shall immediately deliver
      such document to the Custodian. In the event the appropriate public recording
      office will not certify as to the accuracy of such document, the Servicer shall
      deliver a copy of such document certified by an officer of the Servicer to
      be a
      true and complete copy of the original to the Custodian.

     

    Notwithstanding
      anything to the contrary in this Agreement, within five Business Days after
      the
      Closing Date, the Depositor shall either:

     

    (x) deliver
      to the Trustee the Mortgage File as required pursuant to this Section 2.01
      for
      each Delayed Delivery Mortgage Loan; or

     

    (y)(A) cause
      the
      Seller to repurchase the Delayed Delivery Mortgage Loan or (B) substitute a
      Qualified Substitute Mortgage Loan for a Delayed Delivery Mortgage Loan, which
      repurchase or substitution shall be accomplished in the manner and subject
      to
      the conditions in Section 2.03 (treating each such Delayed Delivery Mortgage
      Loan as a Deleted Mortgage Loan for purposes of such Section 2.03);

     

    provided,
      however, that if the Depositor fails to deliver a Mortgage File for any Delayed
      Delivery Mortgage Loan within the period specified herein, the Depositor shall
      cause the Seller to use its best reasonable efforts to effect a substitution,
      rather than a repurchase of, such Delayed Delivery Mortgage Loan; provided,
      further, that the cure period provided for in Section 2.02 or in Section 2.03
      shall not apply to the initial delivery of the Mortgage File for such Delayed
      Delivery Mortgage Loan, but rather the Seller shall have five (5) Business
      Days
      to cure such failure to deliver. At the end of such period, the Trustee shall
      send a certification for the Delayed Delivery Mortgage Loans delivered during
      such period in accordance with the provisions of Section 2.02.

     

    Section
      2.02.  Acceptance
      by Trustee.

     

    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, the Trustee acknowledges receipt of the documents referred to in Section
      2.01 above and all other assets included in the definition of “Trust Fund” and
      declares that 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 and the Certificate Insurer.

     

    The
      Trustee agrees, for the benefit of the Certificateholders and the Certificate
      Insurer, to execute and deliver (or cause the Custodian to execute and deliver)
      to the Depositor on or prior to the Closing Date and each Subsequent Transfer
      Date an acknowledgment of receipt of the original Mortgage Notes (with any
      exceptions noted), substantially in the form attached as Exhibit F-3
      hereto.

     

    The
      Trustee agrees, for the benefit of the Certificateholders and the Certificate
      Insurer, to review, or that it has reviewed pursuant to Section 2.01 (or to
      cause the Custodian to review or that it has caused the Custodian to have
      reviewed), each Mortgage File on or prior to the Closing Date, with respect
      to
      each Mortgage Loan (or, with respect to any document delivered after the Startup
      Day, within 45 days of receipt and with respect to any Qualified Substitute
      Mortgage Loan, within 45 days after the assignment thereof). The Trustee further
      agrees, for the benefit of the Certificateholders and the Certificate Insurer,
      to certify in substantially the form attached hereto as Exhibit F-1, within
      45
      days after the Closing Date, with respect to each Mortgage Loan (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 45 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 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 (1) and (2) of the Mortgage
      Loan Schedule accurately reflects information set forth in the Mortgage File.
      It
      is herein acknowledged that, in conducting such review, the Trustee (or the
      Custodian, as applicable) 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.

     

    Within
      the year commencing on the Closing Date and ending on the first anniversary
      date
      of the Closing Date, the Trustee shall deliver (or cause the Custodian to
      deliver) to the Depositor, the Seller, the Certificate Insurer and the Servicer
      a final certification in the form annexed hereto as Exhibit F-2 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 (or the Custodian, as
      applicable) finds any document or documents constituting a part of a Mortgage
      File to be missing or to not meet the requirements of Section 2.01, at the
      conclusion of its review the Trustee shall indicate such on the exception report
      annexed to the final certification sent to the Seller, the Depositor, the
      Certificate Insurer and the Servicer. In addition, upon the discovery by the
      Seller, the Depositor, the Certificate Insurer or the Servicer (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 which materially adversely affects
      such Mortgage Loan or the interests of the Certificateholders in such Mortgage
      Loan, the party discovering such breach shall give prompt written notice to
      the
      other parties to this Agreement.

     

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

     

    (a)  Upon
      discovery or receipt of written notice of any document which does not conform
      to
      the requirements of Section 2.01, 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 in respect of any Mortgage Loan
      which
      in any such case materially adversely affects the value of such Mortgage Loan
      or
      the interest therein of the Certificateholders or the Certificate Insurer,
      the
      Trustee shall promptly notify the Seller, the Depositor, the Certificate Insurer
      and the Servicer of such defect, missing document or breach and request that
      the
      Seller, if and to the extent required under the Mortgage Loan Purchase
      Agreement, deliver such missing document or cure such defect or breach within
      90
      days from the date the Seller was notified of such missing document, defect
      or
      breach, and if the Seller does not deliver such missing document or cure such
      defect or breach in all material respects during such period, if and to the
      extent required under the Mortgage Loan Purchase Agreement, the Servicer or
      the
      Trustee, in accordance with Section 3.02(b), shall enforce the Seller’s
      obligation under the Mortgage Loan Purchase Agreement and cause the Seller
      to
      repurchase such 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;
      provided, 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. The Purchase Price
      for the repurchased Mortgage Loan shall be deposited in the Certificate Account,
      and the Trustee, upon receipt of written certification from the Servicer of
      such
      deposit, 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). It is
      understood and agreed (i) 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 and the Certificate Insurer and (ii) that
      the Seller shall not have any obligation to provide any such cure, repurchase
      or
      substitution remedy with respect to any such defect or breach to the extent
      such
      defect or breach occurred as a result of the problem associated with the related
      Mortgage Loan that is identified on Schedule II to the Mortgage Loan Purchase
      Agreement.

     

    (b)  As
      promptly as practicable following the earlier of discovery by the Depositor
      or
      receipt of notice by the Depositor of the breach of any representation, warranty
      or covenant of the Depositor set forth in Section 2.06 which materially and
      adversely affects the interests of the Certificateholders or the Certificate
      Insurer in any Mortgage Loan, the Depositor shall cure such breach in all
      material respects.

     

    (c)  As
      promptly as practicable following the earlier of discovery by the Servicer
      or
      receipt of notice by the Servicer of the breach of any representation, warranty
      or covenant of the Servicer set forth in Section 2.05 which materially and
      adversely affects the interests of the Certificateholders in any Mortgage Loan,
      the Servicer shall cure such breach in all material respects.

     

    (d)  Any
      substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans
      made pursuant to Section 2.03(a) must be effected prior to the last Business
      Day
      that is two years after the Closing Date. The final maturity date of such
      Qualified Substitute Mortgage Loan must be on or before March 2011. As to any
      Deleted Mortgage Loan for which the Seller substitutes a Qualified Substitute
      Mortgage Loan or Loans, such substitution shall be effected by the Seller
      delivering to the Trustee, for such Qualified Substitute Mortgage Loan or Loans,
      the Mortgage Note, the Mortgage and the Assignment to the Trustee, and such
      other documents and agreements, with all necessary endorsements thereon, as
      are
      required by Section 2.01, together with an Officers’ Certificate providing 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. The Trustee shall acknowledge receipt for
      such Qualified Substitute Mortgage Loan or Loans and, within ten Business Days
      thereafter, shall review such documents as specified in Section 2.02 and deliver
      to the Servicer, with respect to such Qualified Substitute Mortgage Loan or
      Loans, a certification substantially in the form attached hereto as Exhibit
      F-1,
      with any applicable exceptions noted thereon. Within one year of the date of
      substitution, the Trustee shall deliver to the Servicer a certification
      substantially in the form of Exhibit F-2 hereto with respect to such Qualified
      Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
      Monthly Payments due with respect to Qualified Substitute Mortgage Loans in
      the
      month of substitution are not part of 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 Remittance Period ending in the month of substitution and the Seller
      shall thereafter be entitled to retain all amounts subsequently received in
      respect of such Deleted Mortgage Loan. The Trustee shall give written notice
      to
      the Certificateholders and the Certificate Insurer that such substitution has
      taken place, and the Servicer 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 by the Seller, such Qualified Substitute Mortgage Loan or Loans
      shall constitute part of the Mortgage Pool and shall be subject in all respects
      to the terms of this Agreement and the Mortgage Loan Purchase Agreement,
      including all applicable representations and warranties thereof included in
      the
      Mortgage Loan Purchase Agreement as of the date of substitution.

     

    For
      any
      month in which the Seller substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the Servicer will determine the
      amount (the “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 Stated Principal Balance thereof
      as
      of the date of substitution, together with one month’s interest on such Stated
      Principal Balance at the applicable Net Mortgage Rate. On the date of such
      substitution, the Seller will deliver or cause to be delivered to the Servicer
      for deposit in the Certificate Account, to the extent required under the
      Mortgage Loan Purchase Agreement, an amount equal to the Substitution
      Adjustment, if any, and the Trustee, upon receipt of the related Qualified
      Substitute Mortgage Loan or Loans and certification by the Servicer of such
      deposit, shall release to the Seller the Mortgage File or Files with respect
      to
      the applicable Deleted Mortgage Loan(s), 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
      and the Certificate Insurer an Opinion of Counsel to the effect that such
      substitution 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 to fail
      to qualify as a REMIC at any time that any Certificate is outstanding. If such
      Opinion of Counsel can not 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 Depositor, the Certificate Insurer or the Servicer or receipt
      of written notice by 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 hereto. In connection therewith, the Servicer
      or
      the Trustee, in accordance with Section 3.02(b), shall enforce the obligations
      of the Seller to 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. Such repurchase or
      substitution shall be made by the Seller if the affected Mortgage Loan’s status
      as a non-qualified mortgage is or results from a breach of any representation,
      warranty or covenant made by the Seller under the Mortgage Loan Purchase
      Agreement. Any such repurchase or substitution shall be made in the same manner
      as set forth in Section 2.03(d). The Trustee shall reconvey to the Seller,
      as
      the case may be, 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 pursuant to Section 2.03(a).

     

    (f)  The
      Seller assigns to the Depositor and the Depositor assigns to the Trustee all
      rights the Seller might have under contracts with third parties relating to
      early payment defaults on the Mortgage Loans (“EPD Rights”) and the Servicer
      assumes any related duties as part of its servicing obligations. Consistent
      with
      the Servicing Standard, the Servicer shall attempt to enforce the EPD rights.
      If
      the Servicer’s enforcement of the EPD Rights obligates the Servicer to sell a
      Mortgage Loan to a third party, the Servicer shall repurchase the Mortgage
      Loan
      at the Purchase Price and sell the Mortgage Loan to the third party. The
      Servicer shall deposit into the Certificate Account all amounts received in
      connection with the enforcement of EPD Rights, not exceeding the Purchase Price,
      with respect to any Mortgage Loan. Any amounts received by the Servicer with
      respect a Mortgage Loan in excess of the Purchase Price shall be retained by
      the
      Servicer as additional servicing compensation. The Trustee, upon receipt of
      certification from the Servicer of the deposit of the Purchase Price in
      connection with a repurchase of a Mortgage Loan and a Request for File Release
      from the Servicer, shall release or cause to be released to the purchaser of
      such Mortgage Loan the related Mortgage File and shall execute and deliver
      such
      instruments of transfer or assignment prepared by the purchaser of such Mortgage
      Loan, in each case without recourse, as shall be necessary to vest in the
      purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto
      and
      the purchaser of such Mortgage Loan shall succeed to all the Trustee’s right,
      title and interest in and to such Mortgage Loan and all security and documents
      related thereto. Such assignment shall be an assignment outright and not for
      security. The purchaser of such Mortgage Loan shall thereupon own such Mortgage
      Loan, and all security and documents, free of any further obligation to the
      Trustee or the Certificateholders with respect thereto.

     

    Section
      2.04.  Conveyance
      of Subsequent Mortgage Loans.

     

    (a)  Subject
      to the conditions set forth in paragraph (b) below in consideration of the
      Trustee’s delivery on the Subsequent Transfer Dates to or upon the order of the
      Depositor of all or a portion of the balance of funds in the Pre-Funding
      Account, the Depositor shall on any Subsequent Transfer Date sell, transfer,
      assign, set over and convey without recourse to the Trust Fund but subject
      to
      the other terms and provisions of this Agreement all of the right, title and
      interest of the Depositor in the (i) the Subsequent Mortgage Loans identified
      on
      the Mortgage Loan Schedule attached to the related Subsequent Transfer
      Instrument delivered by the Depositor on such Subsequent Transfer Date, (ii)
      all
      interest accruing thereon on and after the Subsequent Cut-off Date and all
      collections in respect of interest and principal due after the Subsequent
      Cut-off Date and (iii) all items with respect to such Subsequent Mortgage Loans
      to be delivered pursuant to Section 2.01 and the other items in the related
      Mortgage Files; provided, however, that the Depositor reserves and retains
      all
      right, title and interest in and to principal received and interest accruing
      on
      the Subsequent Mortgage Loans prior to the related Subsequent Cut-off Date.
      The
      transfer to the Trustee by the Depositor of the Subsequent Mortgage Loans
      identified on the Mortgage Loan Schedule shall be absolute and is intended
      by
      the Depositor, the Servicer, the Trustee and the Certificateholders to
      constitute and to be treated as a sale of the Subsequent Mortgage Loans by
      the
      Depositor to the Trust Fund. The
      related Mortgage File for each Subsequent Mortgage Loan shall be delivered
      to
      the Trustee at least three (3) Business Days prior to the related Subsequent
      Transfer Date (except that, in the case of Subsequent Mortgage Loans that are
      Delayed Delivery Subsequent Mortgage Loans, such delivery may take place within
      five (5) Business Days of the Subsequent Transfer Date).

     

    (b)  The
      purchase price paid by the Trustee from amounts released from the Pre-Funding
      Account shall be 100% of the aggregate Stated Principal Balance of the related
      Subsequent Mortgage Loans so transferred (as identified on the Mortgage Loan
      Schedule attached to the related Subsequent Transfer Instrument provided by
      the
      Depositor). This Agreement shall constitute a fixed-price contract in accordance
      with Section 860G(a)(3)(A)(ii) of the Code.

     

    (c)  The
      Depositor shall transfer to the Trustee for deposit in the pool of Mortgage
      Loans the Subsequent Mortgage Loans and the other property and rights related
      thereto as described in paragraph (a) above, and the Trustee shall release
      funds
      from the Pre-Funding Account only upon the satisfaction of each of the following
      conditions on or prior to the related Subsequent Transfer Date (except that,
      in
      the case of Subsequent Mortgage Loans that are Delayed Delivery Subsequent
      Mortgage Loans, such delivery may take place within five (5) Business Days
      of
      the Subsequent Transfer Date):

     

    (i)  the
      Depositor shall have provided the Trustee, the Certificate Insurer and the
      Rating Agencies with a timely Addition Notice and shall have provided any
      information reasonably requested by the Trustee with respect to the Subsequent
      Mortgage Loans;

     

    (ii)  the
      Depositor shall have delivered to the Trustee a duly executed Subsequent
      Transfer Instrument, which shall include a Mortgage Loan Schedule listing the
      Subsequent Mortgage Loans, and the Seller shall have delivered a computer file
      acceptable to the Trustee containing such Mortgage Loan Schedule to the Trustee
      at least three (3) Business Days prior to the related Subsequent Transfer
      Date;

     

    (iii)  as
      of
      each Subsequent Transfer Date, as evidenced by delivery of the Subsequent
      Transfer Instrument, the Depositor shall not be insolvent nor shall it have
      been
      rendered insolvent by such transfer nor shall it be aware of any pending
      insolvency;

     

    (iv)  such
      sale
      and transfer shall not result in a material adverse tax consequence to the
      Trust
      Fund or the Certificateholders;

     

    (v)  the
      Funding Period shall not have terminated;

     

    (vi)  the
      Depositor shall not have selected the Subsequent Mortgage Loans in a manner
      that
      it believed to be adverse to the interests of the Certificateholders or the
      Certificate Insurer;

     

    (vii)  the
      NIMS
      Insurer, if any, must consent to such conveyance;

     

    (viii)  the
      Depositor shall have delivered to the Trustee a Subsequent Transfer Instrument
      confirming the satisfaction of the conditions precedent specified in this
      Section 2.04 and, pursuant to the Subsequent Transfer Instrument, assigned
      to
      the Trustee without recourse for the benefit of the Certificateholders and
      the
      Certificate Insurer all the right, title and interest of the Depositor, in,
      to
      and under this Agreement, to the extent of the Subsequent Mortgage Loans;
      and

     

    (ix)  the
      Depositor shall have delivered to the Trustee an Opinion of Counsel addressed
      to
      the Trustee, the Certificate Insurer and the Rating Agencies with respect to
      the
      transfer of the Subsequent Mortgage Loans substantially in the form of the
      Opinion of Counsel delivered to the Trustee on the Closing Date regarding the
      true sale of the Subsequent Mortgage Loans.

     

    (d)  The
      obligation of the Trust Fund to purchase a Subsequent Mortgage Loan on any
      Subsequent Transfer Date is subject to the satisfaction of the conditions set
      forth in the immediately preceding paragraph and the accuracy of the following
      representations and warranties with respect to each such Subsequent Mortgage
      Loan determined as of the applicable Subsequent Cut-off Date: (a)
      each
      such Subsequent
      Mortgage Loan must
      satisfy the representations and warranties specified herein and in the related
      Subsequent
      Transfer Instrument;
      (b) the
      Depositor will not select such Subsequent
      Mortgage Loan in
      a
      manner that it believes to be adverse to the interests of the Certificateholders
      or the Certificate Insurer; (c) the depositor will deliver certain opinions
      of
      counsel with respect to the validity of the conveyance of such Subsequent
      Mortgage Loan; and (d) following the purchase of any Subsequent Mortgage Loan
      by
      the trust, the Mortgage Loans (including the related Subsequent Mortgage Loans)
      will, as of the related Cut-off Date not vary by more than the permitted
      variance specified in the below table. For purposes of the calculations
      described in the below table, percentages of the Mortgage Loans will be based
      on
      the Stated
      Principal Balance of
      the
      Closing Date Mortgage Loans and Subsequent Mortgage Loans as of their respective
      Cut-off dates.

     

    [Missing
      Graphic Reference]

     

    Notwithstanding
      the foregoing, any Subsequent Mortgage Loan may be rejected by any Rating Agency
      if the inclusion of any such Subsequent Mortgage Loan would adversely affect
      the
      ratings of any Class of Certificates (without regard to the Policy). At least
      one (1) Business Day prior to the Subsequent Transfer Date, each Rating Agency
      shall notify the Trustee as to which Subsequent Mortgage Loans, if any, shall
      not be included in the transfer on the Subsequent Transfer Date; provided,
      however, that the Seller shall have delivered to each Rating Agency at least
      three (3) Business Days prior to such Subsequent Transfer Date a computer file
      acceptable to each Rating Agency describing the characteristics specified in
      paragraphs (c) and (d) above.

     

    Section
      2.05.  Representations,
      Warranties and Covenants of the Servicer.

     

    The
      Servicer hereby represents, warrants and covenants to the Trustee, for the
      benefit of each of the Trustee, the Certificate Insurer and the
      Certificateholders, and to the Depositor that as of the Closing Date and as
      of
      the date of transfer of each Subsequent Mortgage Loan or as of such date
      specifically provided herein:

     

    (i)  The
      Servicer is duly organized, validly existing and in good standing under the
      laws
      of the United States and has all licenses necessary to carry on its business
      as
      now being conducted and is licensed, qualified and in good standing in the
      states where each Mortgaged Property is located if the laws of such state
      require licensing or qualification in order to conduct business of the type
      conducted by the Servicer or to ensure the enforceability or validity of each
      Mortgage Loan; the Servicer has the power and authority to execute and deliver
      this Agreement and to perform in accordance herewith; the execution, delivery
      and performance of this Agreement (including all instruments of transfer to
      be
      delivered pursuant to this Agreement) by the Servicer and the consummation
      of
      the transactions contemplated hereby have been duly and validly authorized;
      this
      Agreement evidences the valid, binding and enforceable obligation of the
      Servicer, subject to applicable bankruptcy, insolvency, reorganization,
      moratorium or other similar laws affecting the enforcement of creditors’ rights
      generally; and all requisite corporate action has been taken by the Servicer
      to
      make this Agreement valid and binding upon the Servicer in accordance with
      its
      terms;

     

    (ii)  The
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Servicer and will not result in the breach
      of
      any term or provision of the charter or by-laws of the Servicer or result in
      the
      breach of any term or provision of, or conflict with or constitute a default
      under or result in the acceleration of any obligation under, any agreement,
      indenture or loan or credit agreement or other instrument to which the Servicer
      or its property is subject, or result in the violation of any law, rule,
      regulation, order, judgment or decree to which the Servicer or its property is
      subject;

     

    (iii)  The
      execution and delivery of this Agreement by the Servicer and the performance
      and
      compliance with its obligations and covenants hereunder do not require the
      consent or approval of any governmental authority or, if such consent or
      approval is required, it has been obtained;

     

    (iv)  This
      Agreement, and all documents and instruments contemplated hereby which are
      executed and delivered by the Servicer, constitute and will constitute valid,
      legal and binding obligations of the Servicer, enforceable in accordance with
      their respective terms, except as the enforcement thereof may be limited by
      applicable bankruptcy laws and general principles of equity;

     

    (v)  
      [Reserved];

     

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

     

    (vii)  There
      is
      no action, suit, proceeding or investigation pending or, to its knowledge,
      threatened against the Servicer that, either individually or in the aggregate,
      (A) may result in any change in the business, operations, financial condition,
      properties or assets of the Servicer that might prohibit or materially and
      adversely affect the performance by such Servicer of its obligations under,
      or
      validity or enforceability of, this Agreement, or (B) may result in any material
      impairment of the right or ability of the Servicer to carry on its business
      substantially as now conducted, or (C) may result in any material liability
      on
      the part of the Servicer, or (D) would draw into question the validity or
      enforceability of this Agreement or of any action taken or to be taken in
      connection with the obligations of the Servicer contemplated herein, or (E)
      would otherwise be likely to impair materially the ability of the Servicer
      to
      perform under the terms of this Agreement;

     

    (viii)  Neither
      this Agreement nor any information, certificate of an officer, statement
      furnished in writing or report delivered to the Trustee by the Servicer in
      connection with the transactions contemplated hereby contains any untrue
      statement of a material fact; and

     

    (ix)  The
      Servicer covenants that its computer and other systems used in servicing the
      Mortgage Loans operate in a manner such that the Servicer can service the
      Mortgage Loans in accordance with the terms of this Agreement.

     

    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.05 shall survive delivery of the Mortgage Files to
      the
      Trustee and shall inure to the benefit of the Trustee, the Depositor, the
      Certificate Insurer and the Certificateholders. Upon discovery by any of the
      Depositor, the Servicer, the Seller, the Certificate Insurer or the Trustee
      of a
      breach of any of the foregoing representations, warranties and covenants which
      materially and adversely affects the value of any Mortgage Loan, or the
      interests therein of the Certificateholders and the Certificate Insurer, the
      party discovering such breach shall give prompt written notice (but in no event
      later than two Business Days following such discovery) to the Servicer, the
      Seller, the Certificate Insurer and the Trustee.

     

    Section
      2.06.  Representations
      and Warranties of the Depositor.

     

    The
      Depositor represents and warrants to the Trust and to the Trustee, for the
      benefit of each of the Trustee, the Certificateholders and the Certificate
      Insurer, that as of the Closing Date and as of the date of transfer of each
      Subsequent Mortgage Loan or as of such date specifically provided
      herein:

     

    (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 and except as such
      enforceability may be limited by general principles of equity (whether
      considered in a proceeding at law or in equity);

     

    (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 articles 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 or the ability of
      the
      Depositor to perform its obligations under this Agreement;

     

    (vii)  The
      execution, delivery and performance of this Agreement by the Depositor, and
      the
      consummation of the transactions contemplated thereby, do not and will not
      result in a material breach or violation of any of the terms or provisions
      of,
      or 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 articles of incorporation or by-laws of the Depositor or
      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 and as would not have a material adverse effect
      on the validity of this Agreement or the Certificates);

     

    (viii)  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

     

    (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. It is understood and agreed that the representations and
      warranties set forth in this Section 2.06 shall survive delivery of the Mortgage
      Files to the Trustee and shall inure to the of the Certificateholders
and
      the
      Certificate Insurer
      notwithstanding any restrictive or qualified endorsement or assignment. Upon
      discovery by any of the Depositor, the Servicer, the Certificate Insurer 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 and the Certificate Insurer, the party
      discovering such breach shall give prompt written notice to the other parties
      hereto, and in no event later than two Business Days from the date of such
      discovery. Unless such breach shall not be susceptible of cure within 90 days,
      the obligation of the Depositor set forth in Section 2.03(b) to cure breaches
      shall constitute the sole remedy against the Depositor available to the
      Certificateholders, the Servicer and the Trustee on behalf of the
      Certificateholders respecting a breach of the representations, warranties and
      covenants contained in this Section 2.06.

     

    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, 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 Trustee, 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. The rights of the Certificateholders to receive distributions from the
      proceeds of the Trust Fund in respect of the Certificates, and all ownership
      interests evidenced or constituted by the Certificates, shall be as set forth
      in
      this Agreement.

     

    Section
      2.08.  Conveyance
      of REMIC 1 Regular Interests, Class C Interest and Class P Interest and
      Acceptance of REMIC 2 and REMIC 3 by Trustee.

     

    (a)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the assets
      described in the definition of REMIC 1 for the benefit of the holders of the
      REMIC 1 Regular Interests (which are uncertificated) and the Class R
      Certificates (in respect of the Class R-1 Interest). The Trustee acknowledges
      receipt of the assets described in the definition of REMIC 1 and declares that
      it holds and will hold the same in trust for the exclusive use and benefit
      of
      the holders of the REMIC 1 Regular Interests and the Class R Certificates (in
      respect of the Class R-1 Interest). The interests evidenced by the Class R-1
      Interest, together with the REMIC 1 Regular Interests, constitute the entire
      beneficial ownership interest in REMIC 1.

     

    (b)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the REMIC
      1 Regular Interests (which are uncertificated) for the benefit of the Holders
      of
      the Regular Certificates (other than the Class C Certificates, Class IO
      Certificates and Class P Certificates), the Class C Interest, the Class P
      Interest and the Class R Certificates (in respect of the Class R-2 Interest).
      The Trustee acknowledges receipt of the REMIC 1 Regular Interests and declares
      that it holds and will hold the same in trust for the exclusive use and benefit
      of the Holders of the Regular Certificates (other than the Class C Certificates,
      Class IO Certificates and Class P Certificates), the Class C Interest, the
      Class
      P Interest and the Class R Certificates (in respect of the Class R-2 Interest).
      The interests evidenced by the Class R-2 Interest, together with the Regular
      Certificates (other than the Class C Certificates, Class IO Certificates and
      Class P Certificates), the Class C Interest, the Class P Interest, constitute
      the entire beneficial ownership interest in REMIC 2.

     

    (c)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      C Interest and the Class P Interest (which are uncertificated) for the benefit
      of the Holders of the Class C Certificates, Class IO Certificates and Class
      P
      Certificates and the Class R Certificates (in respect of the Class R-3
      Interest). The Trustee acknowledges receipt of the Class C Interest and the
      Class P Interest and declares that it holds and will hold the same in trust
      for
      the exclusive use and benefit of the Holders of the the Class C Certificates,
      Class IO Certificates and Class P Certificates and the Class R Certificates
      (in
      respect of the Class R-3 Interest). The interests evidenced by the Class R-3
      Interest, together with the Class C Certificates, Class IO Certificates and
      Class P Certificates, constitute the entire beneficial ownership interest in
      REMIC 3.

     

    (d)  
      [Reserved].

     

    (e)  Concurrently
      with (i) the assignment and delivery to the Trustee of REMIC 1 (including the
      Residual Interest therein represented by the Class R-1 Interest) and the
      acceptance by the Trustee thereof, pursuant to Section 2.08(a), (ii) the
      assignment and delivery to the Trustee of REMIC 2 (including the Residual
      Interest therein represented by the Class R-2 Interest) and the acceptance
      by
      the Trustee thereof, pursuant to Section 2.08(b) and (iii) the assignment and
      delivery to the Trustee of REMIC 3 (including the Residual Interest therein
      represented by the Class R-3 Interest) and the acceptance by the Trustee
      thereof, pursuant to Section 2.08(c), the Trustee, 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 Class
      R
      Certificates in authorized denominations evidencing the Class R-1 Interest,
      the
      Class R-2 Interest and the Class R-3 Interest.

     

    Section
      2.09.  Purposes
      and Powers of the Trust.

     

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

     

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

     

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

     

    (iii)  to
      make
      payments on the Certificates;

     

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

     

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

     

    The
      Trust
      is hereby authorized to engage in the foregoing activities. The Trustee and
      the
      Servicer shall not cause the Trust to engage in any activity other than in
      connection with the foregoing or other than as required or authorized by the
      terms of this Agreement while any Certificate is outstanding, and this Section
      2.10 may not be amended, without the consent of the Certificateholders
      evidencing 66 2/3% or more of the aggregate Voting Rights of the
      Certificates.

     

    

     

    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING

    OF
      THE
      MORTGAGE LOANS

     

    Section
      3.01.  Servicer
      to Act as Servicer.

     

    The
      Servicer shall service and administer the Mortgage Loans on behalf of the Trust
      and in the best interests of and for the benefit of the Certificateholders
      and
      the Certificate Insurer (as determined by the Servicer in its reasonable
      judgment) in accordance with the terms of this Agreement and the Mortgage Loans
      and, to the extent consistent with such terms, in the same manner in which
      it
      services and administers similar mortgage loans for its own portfolio, giving
      due consideration to customary and usual standards of practice of mortgage
      lenders and loan servicers administering similar mortgage loans but without
      regard to:

     

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

     

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

     

    (iii)  the
      Servicer’s obligation to make Advances or Servicing Advances; or

     

    (iv)  the
      Servicer’s or any Sub-Servicer’s right to receive compensation for its services
      hereunder or with respect to any particular transaction.

     

    Subject
      only to the above-described servicing standards and the terms of this Agreement
      and of the Mortgage Loans, the Servicer shall have full power and authority,
      acting alone or through Sub-Servicers as provided in Section 3.02, to do or
      cause to be done any and all things in connection with such servicing and
      administration which it may deem necessary or desirable. Without limiting the
      generality of the foregoing, the Servicer in its own name or in the name of
      a
      Sub-Servicer is hereby authorized and empowered by the Trustee, when the
      Servicer believes it appropriate in its best judgment in accordance with the
      servicing standards set forth above, to execute and deliver, on behalf of the
      Certificateholders, the Certificate Insurer and the Trustee, and upon notice
      to
      the Trustee and the Certificateholders, any and all instruments of satisfaction
      or cancellation, or of partial or full release or discharge, and all other
      comparable instruments, with respect to the Mortgage Loans and the Mortgaged
      Properties and to institute foreclosure proceedings or obtain a deed-in-lieu
      of
      foreclosure so as to convert the ownership of such properties, and to hold
      or
      cause to be held title to such properties, on behalf of the Trustee and
      Certificateholders. The Servicer shall service and administer the Mortgage
      Loans
      in accordance with applicable state and federal law and shall provide to the
      Mortgagors any reports required to be provided to them thereby. Subject to
      Section 3.17, the Trustee shall execute, at the written request of the Servicer,
      and furnish to the Servicer and any Sub-Servicer any special or limited powers
      of attorney and other documents necessary or appropriate to enable the Servicer
      or any Sub-Servicer to carry out their servicing and administrative duties
      hereunder; provided, such limited powers of attorney or other documents shall
      be
      prepared by the Servicer and submitted to the Trustee for execution. The Trustee
      shall not be liable for the actions of the Servicer or any Sub-Servicers under
      such powers of attorney.

     

    Subject
      to Section 3.09 hereof, in accordance with the servicing standards of the
      preceding paragraphs, the Servicer shall advance or cause to be advanced funds
      as necessary for the purpose of effecting the timely payment of taxes and
      assessments on the Mortgaged Properties, which advances shall be Servicing
      Advances reimbursable in the first instance from related collections from the
      Mortgagors pursuant to Section 3.09, and further as provided in Section 3.11.
      Any cost incurred by the Servicer or by Sub-Servicers in effecting the timely
      payment of taxes and assessments on a Mortgaged Property shall not, for the
      purpose of calculating distributions to Certificateholders, be added to the
      unpaid Stated
      Principal Balance of
      the
      related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan
      so
      permit.

     

    Notwithstanding
      anything in this Agreement to the contrary, the Servicer may not make any future
      advances with respect to a Mortgage Loan (except as provided in Section 4.03)
      and the Servicer shall not (i) permit any modification with respect to any
      Mortgage Loan that would change the Mortgage Rate, reduce or increase the Stated
      Principal Balance (except for reductions resulting from actual payments of
      principal) or change the final maturity date on such Mortgage Loan (unless,
      as
      provided in Section 3.07, the Mortgagor is in default with respect to the
      Mortgage Loan or such default is, in the judgment of the Servicer, reasonably
      foreseeable) or (ii) permit any modification, waiver or amendment of any term
      of
      any Mortgage Loan that would both (A) effect an exchange or reissuance of such
      Mortgage Loan under Section 1001 of the Code (or Treasury regulations
      promulgated thereunder) and (B) any REMIC created hereunder to fail to qualify
      as a REMIC under the Code or the imposition of any tax on “prohibited
      transactions” or “contributions after the startup date” under the REMIC
      Provisions. The Servicer shall also not permit extensions beyond the Final
      Distribution Date.

     

    Section
      3.02.  Sub-Servicing
      Agreements Between Servicer and Sub-Servicers; Special Servicing.

     

    (a)  The
      Servicer may enter into Sub-Servicing Agreements with Sub-Servicers for the
      servicing and administration of the Mortgage Loans; provided, however, that
      such
      agreements would not result in a withdrawal or a downgrading by any Rating
      Agency of the rating on any Class of Certificates (without regard to the
      Policy).

     

    Each
      Sub-Servicer shall be (i) authorized and licensed to transact business in the
      state or states where the related Mortgaged Properties it is to service are
      situated, if and to the extent required by applicable law to enable the
      Sub-Servicer to perform its obligations hereunder and under the Sub-Servicing
      Agreement and (ii) a Freddie Mac or Fannie Mae approved mortgage servicer.
      Each
      Sub-Servicing Agreement must impose on the Sub-Servicer requirements conforming
      to the provisions set forth in Section 3.08 and provide for servicing of the
      Mortgage Loans consistent with the terms of this Agreement. The Servicer will
      examine each Sub-Servicing Agreement and will be familiar with the terms
      thereof. The terms of any Sub-Servicing Agreement will not be inconsistent
      with
      any of the provisions of this Agreement. The Servicer and the Sub-Servicers
      may
      enter into and make amendments to the Sub-Servicing Agreements or enter into
      different forms of Sub-Servicing Agreements; provided, however, that any such
      amendments or different forms shall be consistent with and not violate the
      provisions of this Agreement, and that no such amendment or different form
      shall
      be made or entered into which could be reasonably expected to be materially
      adverse to the interests of the Certificateholders or the Certificate Insurer
      without the consent of the Holders of Certificates entitled to at least 66%
      of
      the Voting Rights (excluding any Certificates held by the Seller, the Servicer
      or any Affiliate thereof) and the Certificate Insurer (unless the Policy has
      been canceled upon the payment in full of the Insured Certificates or a
      Certificate Insurer Default has occurred and is continuing); provided, further,
      that the consent of the Holders of Certificates entitled to at least 66% of
      the
      Voting Rights (excluding any Certificates held by the Seller, the Servicer
      or
      any Affiliate thereof) or the Certificate Insurer shall not be required (i)
      to
      cure any ambiguity or defect in a Sub-Servicing Agreement, (ii) to correct,
      modify or supplement any provisions of a Sub-Servicing Agreement, or (iii)
      to
      make any other provisions with respect to matters or questions arising under
      a
      Sub-Servicing Agreement, which, in each case, shall not be inconsistent with
      the
      provisions of this Agreement. Any variation without the consent of the Holders
      of Certificates entitled to at least 66% of the Voting Rights (excluding any
      Certificates held by the Seller, the Servicer or any Affiliate thereof) and
      the
      Certificate Insurer (unless the Policy has been canceled upon the payment in
      full of the Insured Certificates or a Certificate Insurer Default has occurred
      and is continuing) from the provisions set forth in Section 3.08 relating to
      insurance or priority requirements of Sub-Servicing Accounts, or credits and
      charges to the Sub-Servicing Accounts or the timing and amount of remittances
      by
      the Sub-Servicers to the Servicer, are conclusively deemed to be inconsistent
      with this Agreement and therefore prohibited. The Servicer shall deliver to
      the
      Trustee copies of all Sub-Servicing Agreements, and any amendments or
      modifications thereof, promptly upon the Servicer’s execution and delivery of
      such instruments.

     

    (b)  As
      part
      of its servicing activities hereunder, the Servicer, for the benefit of the
      Trustee, the Certificate Insurer and the Certificateholders, shall enforce
      the
      obligations of each Sub-Servicer under the related Sub-Servicing Agreement
      and
      of the Seller under the Mortgage Loan Purchase Agreement, including, without
      limitation, any obligation to make advances in respect of delinquent payments
      as
      required by a Sub-Servicing Agreement, or 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 Section 2.03(a). Such
      enforcement, including, without limitation, the legal prosecution of claims,
      termination of Sub-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 Servicer, in its good faith business judgment, would require were
      it
      the owner of the related Mortgage Loans. The Servicer shall pay the costs of
      such enforcement at its own expense, and shall be reimbursed therefor only
      (i)
      from a general recovery resulting from such enforcement, to the extent, if
      any,
      that such recovery exceeds all amounts due in respect of the related Mortgage
      Loans, or (ii) from a specific recovery of costs, expenses or attorneys’ fees
      against the party against whom such enforcement is directed. Enforcement of
      the
      Mortgage Loan Purchase Agreement against the Seller shall be effected by the
      Servicer to the extent it is not the Seller, and otherwise by the Trustee in
      accordance with the foregoing provisions of this paragraph.

     

    Section
      3.03.  Successor
      Sub-Servicers.

     

    The
      Servicer shall be entitled to terminate any Sub-Servicing Agreement and the
      rights and obligations of any Sub-Servicer pursuant to any Sub-Servicing
      Agreement in accordance with the terms and conditions of such Sub-Servicing
      Agreement. In the event of termination of any Sub-Servicer, all servicing
      obligations of such Sub-Servicer shall be assumed simultaneously by the Servicer
      without any act or deed on the part of such Sub-Servicer or the Servicer, and
      the Servicer either shall service directly the related Mortgage Loans or shall
      enter into a Sub-Servicing Agreement with a successor Sub-Servicer which
      qualifies under Section 3.02.

     

    Any
      Sub-Servicing Agreement shall include the provision that such agreement may
      be
      immediately terminated by the Servicer or the Trustee (if the Trustee is acting
      as Servicer) without fee, in accordance with the terms of this Agreement, in
      the
      event that the Servicer (or the Trustee, if such party is then acting as
      Servicer) shall, for any reason, no longer be the Servicer (including
      termination due to a Servicer Event of Termination).

     

    Section
      3.04.  Liability
      of the Servicer.

     

    Notwithstanding
      any Sub-Servicing Agreement or the provisions of this Agreement relating to
      agreements or arrangements between the Servicer and a Sub-Servicer or reference
      to actions taken through a Sub-Servicer or otherwise, the Servicer shall remain
      obligated and primarily liable to the Trustee, the Certificate Insurer and
      the
      Certificateholders for the servicing and administering of the Mortgage Loans
      in
      accordance with the provisions of Section 3.01 without diminution of such
      obligation or liability by virtue of such Sub-Servicing Agreements or
      arrangements or by virtue of indemnification from the Sub-Servicer and to the
      same extent and under the same terms and conditions as if the Servicer alone
      were servicing and administering the Mortgage Loans. The Servicer shall be
      entitled to enter into any agreement with a Sub-Servicer for indemnification
      of
      the Servicer by such Sub-Servicer and nothing contained in this Agreement shall
      be deemed to limit or modify such indemnification.

     

    Section
      3.05.  No
      Contractual Relationship Between Sub-Servicers and the Trustee or
      Certificateholders.

     

    Any
      Sub-Servicing Agreement that may be entered into and any transactions or
      services relating to the Mortgage Loans involving a Sub-Servicer in its capacity
      as such shall be deemed to be between the Sub-Servicer and the Servicer alone,
      and neither the Trustee nor the Certificateholders shall be deemed parties
      thereto, and neither the Trustee nor the Certificateholders shall have any
      claims, rights, obligations, duties or liabilities with respect to the
      Sub-Servicer except as set forth in Section 3.06. The Servicer shall be solely
      liable for all fees owed by it to any Sub-Servicer, irrespective of whether
      the
      Servicer’s compensation pursuant to this Agreement is sufficient to pay such
      fees.

     

    Section
      3.06.  Assumption
      or Termination of Sub-Servicing Agreements by Trustee.

     

    In
      the
      event the Servicer shall for any reason no longer be the servicer (including
      by
      reason of the occurrence of a Servicer Event of Termination), the successor
      Servicer or the Trustee if it becomes successor Servicer shall thereupon assume
      all of the rights and obligations of the Servicer under each Sub-Servicing
      Agreement that the Servicer may have entered into, unless the Trustee elects
      to
      terminate any Sub-Servicing Agreement in accordance with its terms as provided
      in Section 3.03. Upon such assumption, the Trustee (or the successor Servicer
      appointed pursuant to Section 7.02) shall be deemed, subject to Section 3.03,
      to
      have assumed all of the departing Servicer’s interest therein and to have
      replaced the departing Servicer as a party to each Sub-Servicing Agreement
      to
      the same extent as if each Sub-Servicing Agreement had been assigned to the
      assuming party, except that (i) the departing Servicer shall not thereby be
      relieved of any liability or obligations under any Sub-Servicing Agreement
      that
      arose before it ceased to be the Servicer and (ii) neither the Trustee nor
      any
      successor Servicer shall be deemed to have assumed any liability or obligation
      of the Servicer that arose before it ceased to be the Servicer.

     

    The
      Servicer at its expense shall, upon request of the Trustee, deliver to the
      assuming party all documents and records relating to each Sub-Servicing
      Agreement and the Mortgage Loans then being serviced and an accounting of
      amounts collected and held by or on behalf of it, and otherwise use its best
      efforts to effect the orderly and efficient transfer of the Sub-Servicing
      Agreements to the assuming party. All Servicing Transfer Costs shall be paid
      by
      the predecessor Servicer (or, if the predecessor Servicer is the Trustee, the
      Servicer that immediately preceded the Trustee) upon presentation of reasonable
      documentation of such costs, and if such predecessor Servicer defaults in its
      obligation to pay such costs, such costs shall be paid by the successor Servicer
      or the Trustee (in which case, the successor Servicer or the Trustee, as
      applicable, shall be entitled to reimbursement therefor from the assets of
      the
      Trust Fund).

     

    Section
      3.07.  Collection
      of Certain Mortgage Loan Payments.

     

    The
      Servicer shall make reasonable efforts to collect all payments called for under
      the terms and provisions of the Mortgage Loans, and shall, to the extent such
      procedures shall be consistent with this Agreement and the terms and provisions
      of any applicable insurance policies, follow such collection procedures as
      it
      would follow with respect to mortgage loans comparable to the Mortgage Loans
      and
      held for its own account. Consistent with the foregoing, the Servicer may in
      its
      discretion (i) waive any late payment charge or, if applicable, any penalty
      interest, or (ii) subject to the last sentence of Section 3.02, extend the
      due
      dates for the Monthly Payments due on a Mortgage Note for a period of not
      greater than 180 days; provided, however, that any extension pursuant to clause
      (ii) above shall not affect the amortization schedule of any Mortgage Loan
      for
      purposes of any computation hereunder, except as provided below. In the event
      of
      any such arrangement pursuant to clause (ii) above, the Servicer shall make
      timely advances on such Mortgage Loan during such extension pursuant to Section
      4.03 and in accordance with the amortization schedule of such Mortgage Loan
      without modification thereof by reason of such arrangement. Notwithstanding
      the
      foregoing, in the event that any Mortgage Loan is in default or, in the judgment
      of the Servicer, such default is reasonably foreseeable, the Servicer,
      consistent with the standards set forth in Section 3.01, may also waive, modify
      or vary any term of such Mortgage Loan (including modifications that would
      change the Mortgage Rate, forgive the payment of principal or interest or extend
      the final maturity date of such Mortgage Loan), accept payment from the related
      Mortgagor of an amount less than the Stated Principal Balance in final
      satisfaction of such Mortgage Loan, or consent to the postponement of strict
      compliance with any such term or otherwise grant indulgence to any Mortgagor
      (any and all such waivers, modifications, variances, forgiveness of principal
      or
      interest, postponements, or indulgences collectively referred to herein as
      “forbearance”); provided, however, that (i) the Servicer shall determine that
      such forbearance is not materially adverse to the interests of the
      Certificateholders (taking into account any estimated loss that might result
      absent such action) and is expected to minimize the loss on such Mortgage Loan,
      (ii) the Servicer shall not initiate any new lending to such Mortgagor through
      the Trust Fund and (iii) in no event shall the Servicer grant any such
      forbearance (other than as permitted by the second sentence of this Section)
      with respect to any one Mortgage Loan more than once in any 12 month period
      or
      more than three times over the life of such Mortgage Loan. The Servicer’s
      analysis supporting any forbearance and the conclusion that any forbearance
      meets the standards of Section 3.01 shall be reflected in writing in the
      Mortgage File.

     

    Section
      3.08.  Sub-Servicing
      Accounts.

     

    In
      those
      cases where a Sub-Servicer is servicing a Mortgage Loan pursuant to a
      Sub-Servicing Agreement, the Sub-Servicer will be required to establish and
      maintain one or more accounts (collectively, the “Sub-Servicing Account”). The
      Sub-Servicing Account shall be an Eligible Account and shall comply with all
      requirements of this Agreement relating to the Certificate Account. The
      Sub-Servicer shall deposit in the clearing account in which it customarily
      deposits payments and collections on mortgage loans in connection with its
      mortgage loan servicing activities on a daily basis, and in no event more than
      one Business Day after the Sub-Servicer’s receipt thereof, all proceeds of
      Mortgage Loans received by the Sub-Servicer less its servicing compensation
      to
      the extent permitted by the Sub-Servicing Agreement, and shall thereafter
      deposit such amounts in the Sub-Servicing Account, in no event more than two
      Business Days after the receipt of such amounts. The Sub-Servicer shall
      thereafter deposit such proceeds in the Certificate Account or remit such
      proceeds to the Servicer for deposit in the Certificate Account not later than
      two Business Days after the deposit of such amounts in the Sub-Servicing
      Account. For purposes of this Agreement, the Servicer shall be deemed to have
      received payments on the Mortgage Loans when the Sub-Servicer receives such
      payments.

     

    Section
      3.09.  Collection
      of Taxes, Assessments and Similar Items; Servicing Accounts.

     

    The
      Servicer shall establish and maintain, or cause to be established and
      maintained, one or more accounts (the “Servicing Accounts”), into which all
      Escrow Payments shall be deposited and retained. Servicing Accounts shall be
      Eligible Accounts. The Servicer shall deposit in the clearing account in which
      it customarily deposits payments and collections on mortgage loans in connection
      with its mortgage loan servicing activities on a daily basis, and in no event
      more than one Business Day after the Servicer’s receipt thereof, all Escrow
      Payments collected on account of the Mortgage Loans and shall thereafter deposit
      such Escrow Payments in the Servicing Accounts, in no event more than two
      Business Days after the receipt of such Escrow Payments, all Escrow Payments
      collected on account of the Mortgage Loans for the purpose of effecting the
      timely payment of any such items as required under the terms of this Agreement.
      Withdrawals of amounts from a Servicing Account may be made only to: (i) effect
      payment of taxes, assessments and comparable items in a manner and at a time
      that assures that the lien priority of the Mortgage is not jeopardized (or,
      with
      respect to the payment of taxes, in a manner and at a time that avoids the
      loss
      of the Mortgaged Property due to a tax sale or the foreclosure as a result
      of a
      tax lien); (ii) reimburse the Servicer (or a Sub-Servicer to the extent provided
      in the related Sub-Servicing Agreement) out of related collections for any
      Servicing Advances made pursuant to Section 3.01 (with respect to taxes and
      assessments); (iii) refund to Mortgagors any sums as may be determined to be
      overages; (iv) pay interest, if required and as described below, to Mortgagors
      on balances in the Servicing Account; (v) to pay the Servicer excess interest
      on
      funds in the Servicing Accounts to the extent permitted as provided below;
      or
      (vi) clear and terminate the Servicing Account at the termination of the
      Servicer’s obligations and responsibilities in respect of the Mortgage Loans
      under this Agreement in accordance with Article X. In the event the Servicer
      shall deposit in a Servicing Account any amount not required to be deposited
      therein, it may at any time withdraw such amount from such Servicing Account,
      any provision herein to the contrary notwithstanding. The Servicer will be
      responsible for the administration of the Servicing Accounts and will be
      obligated to make Servicing Advances to such accounts when and as necessary
      to
      avoid the lapse of insurance coverage on the Mortgaged Property, or which the
      Servicer knows, or in the exercise of the required standard of care of the
      Servicer hereunder should know, is necessary to avoid the loss of the Mortgaged
      Property due to a tax sale or the foreclosure as a result of a tax lien. If
      any
      such payment has not been made and the Servicer receives notice of a tax lien
      with respect to the Mortgage being imposed, the Servicer will, within 10
      Business Days of such notice, advance or cause to be advanced funds necessary
      to
      discharge such lien on the Mortgaged Property. As part of its servicing duties,
      the Servicer or Sub-Servicers shall pay to the Mortgagors interest on funds
      in
      the Servicing Accounts, to the extent required by law and, to the extent that
      interest earned on funds in the Servicing Accounts is insufficient, to pay
      such
      interest from its or their own funds, without any reimbursement therefor. The
      Servicer may pay to itself any excess interest on funds in the Servicing
      Accounts, to the extent such action is in conformity with the Servicing
      Standard, is permitted by law and such amounts are not required to be paid
      to
      Mortgagors or used for any of the other purposes set forth above.

     

    Section
      3.10.  Certificate
      Account; Distribution Account.

     

    (a)  On
      behalf
      of the Trust Fund, the Servicer shall establish and maintain, or cause to be
      established and maintained, one or more accounts (such account or accounts,
      the
“Certificate Account”), held in trust for the benefit of the Trustee, the
      Certificate Insurer and the Certificateholders. The Certificate Account shall
      be
      an Eligible Account. On behalf of the Trust Fund, the Servicer shall deposit
      or
      cause to be deposited in the clearing account in which it customarily deposits
      payments and collections on mortgage loans in connection with its mortgage
      loan
      servicing activities on a daily basis, and in no event more than one Business
      Day after the Servicer’s receipt thereof, and shall thereafter deposit in the
      Certificate Account, in no event more than two Business Days after the
      Servicer’s receipt thereof, as and when received or as otherwise required
      hereunder, the following payments and collections received or made by it
      subsequent to the Cut-off Date (other than in respect of principal or interest
      on the Mortgage Loans due on or before the Cut-off Date and other than Prepaid
      Interest with respect to such Mortgage Loans) or payments (other than Principal
      Prepayments) received by it on or prior to the Cut-off Date, but allocable
      to a
      Remittance Period subsequent thereto:

     

    (i)  all
      payments on account of principal, including Principal Prepayments;

     

    (ii)  all
      payments on account of interest (net of the related Servicing Fee) on each
      Mortgage Loan;

     

    (iii)  all
      Insurance Proceeds and Liquidation Proceeds (other than proceeds collected
      in
      respect of any particular REO Property and amounts paid in connection with
      a
      purchase of Mortgage Loans and REO Properties pursuant to Section 10.01) and
      Subsequent Recoveries;

     

    (iv)  any
      amounts required to be deposited pursuant to Section 3.12 in connection with
      any
      losses realized on Permitted Investments with respect to funds held in the
      Certificate Account;

     

    (v)  any
      amounts required to be deposited by the Servicer pursuant to the second
      paragraph of Section 3.14(a) in respect of any blanket policy
      deductibles;

     

    (vi)  all
      proceeds of any Mortgage Loan repurchased or purchased in accordance with
      Section 2.03, Section 3.16(c) or Section 10.01; 

     

    (vii)  all
      amounts required to be deposited in connection with Substitution Adjustments
      pursuant to Section 2.03; and

     

    (viii)  all
      Prepayment Charges collected.

     

    The
      foregoing requirements for deposit in the Certificate Account shall be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, payments in the nature of Servicing Fees, late payment
      charges, assumption fees, modification fees, insufficient funds charges and
      ancillary income need not be deposited by the Servicer in the Certificate
      Account and may be retained by the Servicer as additional compensation. In
      the
      event the Servicer shall deposit in the Certificate Account any amount not
      required to be deposited therein, it may at any time withdraw such amount from
      the Certificate Account, any provision herein to the contrary
      notwithstanding.

     

    (b)  On
      behalf
      of the Trust Fund, the Trustee shall establish and maintain one or more accounts
      (such account or accounts, the “Distribution Account”), held in trust for the
      benefit of the Trustee, the Certificate Insurer and the Certificateholders.
      The
      Distribution Account will be an Eligible Account. On behalf of the Trust Fund,
      the Servicer shall deliver to the Trustee in immediately available funds for
      deposit in the Distribution Account on or before 3:00 p.m. New York time (i)
      on
      the Servicer Remittance Date, that portion of the Available Funds (calculated
      without regard to the references in the definition thereof to amounts that
      may
      be withdrawn from the Distribution Account) for the related Distribution Date
      then on deposit in the Certificate Account and any other amounts deposited
      hereunder that are required to be deposited in the Distribution Account funds
      reimbursable pursuant to Section 3.27, and (ii) on each Business Day as of
      the
      commencement of which the balance on deposit in the Certificate Account exceeds
      $75,000 following any withdrawals pursuant to the next succeeding sentence,
      the
      amount of such excess, but only if the Certificate Account constitutes an
      Eligible Account solely pursuant to clause (ii) of the definition of “Eligible
      Account.” If the balance on deposit in the Certificate Account exceeds $75,000
      as of the commencement of business on any Business Day and the Certificate
      Account constitutes an Eligible Account solely pursuant to clause (ii) of the
      definition of “Eligible Account,” the Servicer shall, on or before 3:00 p.m. New
      York time on such Business Day, withdraw from the Certificate Account any and
      all amounts payable or reimbursable to the Servicer, the Trustee, the Seller
      or
      any Sub-Servicer pursuant to Section 3.11 and shall pay such amounts to the
      Persons entitled thereto.

     

    (c)  Funds
      in
      the Certificate Account and the Distribution Account shall be invested in
      Permitted Investments in accordance with the provisions set forth in Section
      3.12. The Servicer shall give notice to the Trustee and the Certificate Insurer
      of the location of the Certificate Account maintained by it when established
      and
      prior to any change thereof. The Trustee shall give notice to the Servicer,
      the
      Certificate Insurer and the Depositor of the location of the Distribution
      Account when established and prior to any change thereof.

     

    (d)  Funds
      held in the Certificate Account at any time may be delivered by the Servicer
      to
      the Trustee for deposit in an account (which may be the Distribution Account
      and
      must satisfy the standards for the Distribution Account as set forth in the
      definition thereof) and for all purposes of this Agreement shall be deemed
      to be
      a part of the Certificate Account; provided, however, that the Trustee shall
      have the sole authority to withdraw any funds held pursuant to this subsection
      (d). In the event the Servicer shall deliver to the Trustee for deposit in
      the
      Distribution Account any amount not required to be deposited therein, it may
      at
      any time request in writing that the Trustee withdraw such amount from the
      Distribution Account and remit to it any such amount, any provision herein
      to
      the contrary notwithstanding. In addition, the Servicer shall deliver to the
      Trustee from time to time for deposit, and the Trustee shall so deposit, in
      the
      Distribution Account:

     

    (i)  any
      Advances, as required pursuant to Section 4.03;

     

    (ii)  any
      amounts required to be deposited pursuant to Section 3.25(d) or (f) in
      connection with any REO Property;

     

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

     

    (iv)  any
      Compensating Interest to be deposited pursuant to Section 3.24 in connection
      with any Prepayment Interest Shortfall;

     

    (v)  any
      amounts required to be paid or reimbursed to the Trustee pursuant to the
      Agreement (to the extent required to be paid by the Servicer), including, but
      not limited to Section 3.06 and Section 7.02 (to the extent required to be
      paid
      by the Servicer); and

     

    (vi)  any
      amounts required to be deposited pursuant to Section 3.12 in connection with
      any
      losses realized on Permitted Investments with respect to funds held in the
      Distribution Account (other than any such losses incurred during the Trustee
      Float Period).

     

    Section
      3.11.  Withdrawals
      from the Certificate Account and Distribution Account.

     

    (a)  The
      Servicer shall, from time to time, make withdrawals from the Certificate Account
      for any of the following purposes or as described in Section 4.03:

     

    (i)  to
      remit
      to the Trustee for deposit in the Distribution Account the amounts required
      to
      be so remitted pursuant to Section 3.10(b) or permitted to be so remitted
      pursuant to the first sentence of Section 3.10(d);

     

    (ii)  subject
      to Section 3.16(d), to reimburse the Servicer for (a) any unreimbursed Advances
      to the extent of amounts received which represent Late Collections (net of
      the
      related Servicing Fees) of Monthly Payments, Liquidation Proceeds and Insurance
      Proceeds on Mortgage Loans with respect to which such Advances were made in
      accordance with the provisions of Section 4.03 or (b) any unreimbursed Advances
      with respect to the final liquidation of a Mortgage Loan that are Nonrecoverable
      Advances, but only to the extent that Late Collections, Liquidation Proceeds,
      Subsequent Recoveries and Insurance Proceeds received with respect to such
      Mortgage Loan are insufficient to reimburse the Servicer for such unreimbursed
      Advances;

     

    (iii)  subject
      to Section 3.16(d), to pay the Servicer or any Sub-Servicer (a) any unpaid
      Servicing Fees, (b) any unreimbursed Servicing Advances with respect to each
      Mortgage Loan, but only to the extent of any Late Collections, Liquidation
      Proceeds and Insurance Proceeds received with respect to such Mortgage Loan,
      and
      (c) any Servicing Advances with respect to the final liquidation of a Mortgage
      Loan that are Nonrecoverable Advances, but only to the extent that Late
      Collections, Liquidation Proceeds and Insurance Proceeds received with respect
      to such Mortgage Loan are insufficient to reimburse the Servicer or any
      Sub-Servicer for Servicing Advances;

     

    (iv)  to
      pay to
      the Servicer as servicing compensation (in addition to the Servicing Fee) on
      the
      Servicer Remittance Date any interest or investment income earned on funds
      deposited in the Certificate Account;

     

    (v)  to
      pay to
      the Seller or the Servicer, as the case may be, with respect to each Mortgage
      Loan that has previously been purchased or replaced pursuant to Section 2.03
      or
      Section 3.16(c) all amounts received thereon subsequent to the date of purchase
      or substitution, as the case may be;

     

    (vi)  to
      reimburse the Servicer for any Advance or Servicing Advance previously made
      which the Servicer has determined to be a Nonrecoverable Advance in accordance
      with the provisions of Section 4.03;

     

    (vii)  to
      pay,
      or to reimburse the Servicer for Servicing Advances in respect of, expenses
      incurred in connection with any Mortgage Loan pursuant to Section
      3.16(b);

     

    (viii)  to
      reimburse the Servicer or the Depositor for expenses incurred by or reimbursable
      to the Servicer or the Depositor pursuant to Section 6.03;

     

    (ix)  to
      reimburse the Servicer or the Trustee, as the case may be, for expenses
      reasonably incurred in connection with any breach or defect giving rise to
      the
      purchase obligation under Section 2.03 of this Agreement, including any expenses
      arising out of the enforcement of the purchase obligation (other than with
      respect to a breach caused by the Servicer);

     

    (x)  to
      pay
      itself any Prepayment Interest Excess;

     

    (xi)  to
      pay
      itself to the extent permitted under Section 3.06;

     

    (xii)  to
      withdraw any funds deposited in the Certificate Account in error;
      and

     

    (xiii)  to
      clear
      and terminate the Certificate Account pursuant to Section 10.01.

     

    The
      foregoing requirements for withdrawal from the Certificate Account shall be
      exclusive. In the event the Servicer shall deposit in the Certificate Account
      any amount not required to be deposited therein, it may at any time withdraw
      such amount from the Certificate Account, any provision herein to the contrary
      notwithstanding.

     

    The
      Servicer shall keep and maintain separate accounting, on a Mortgage
      Loan-by-Mortgage Loan basis, for the purpose of justifying any withdrawal from
      the Certificate Account, to the extent held by or on behalf of it, pursuant
      to
      subclauses (ii), (iii), (iv), (v), (vi) and (vii) above. The Servicer shall
      provide written notification to the Trustee, on or prior to the next succeeding
      Servicer Remittance Date, upon making any withdrawals from the Certificate
      Account pursuant to subclause (vi) above; provided that an Officer’s Certificate
      in the form described under Section 4.03(d) shall suffice for such written
      notification to the Trustee in respect hereof.

     

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

     

    (i)  to
      make
      distributions in accordance with Section 4.01;

     

    (ii)  to
      pay
      itself the Trustee Fee pursuant to Section 4.01 and Section 8.05;

     

    (iii)  to
      pay
      any amounts in respect of taxes pursuant to Section 9.01(g);

     

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

     

    (v)  to
      pay
      any amounts required to be paid to the Trustee pursuant to this Agreement,
      including but not limited to funds required to be paid pursuant to Section
      2.01,
      Section 3.06, Section 7.02, Section 8.05 and Section 9.01(c);

     

    (vi)  to
      pay to
      itself as additional compensation any interest or investment income earned
      on
      funds on deposit in the Distribution Account during the Trustee Float Period
      to
      the extent provided in Section 3.12(b);

     

    (vii)  to
      pay to
      the Servicer as servicing compensation any interest or investment income earned
      on funds on deposit in the Distribution Account (other than during the Trustee
      Float Period) to the extent provided in Section 3.12(b); and

     

    (viii)  to
      withdraw any funds deposited in the Distribution Account in error; 

     

    Section
      3.12.  Investment
      of Funds in the Certificate Account and the Distribution Account.

     

    (a)  The
      Servicer shall direct any depository institution maintaining the Certificate
      Account and the Distribution Account (except with respect to the Trustee Float
      Period), and the Trustee may direct any depository institution maintaining
      (during the Trustee Float Period) the Distribution Account (each such account,
      for purposes of this Section 3.12, an “Investment Account”) to invest the funds
      in such Investment Account in one or more Permitted Investments bearing interest
      or sold at a discount, and maturing, unless payable on demand, (i) no later
      than
      the Business Day immediately preceding the date on which such funds are required
      to be withdrawn from such account pursuant to this Agreement, if a Person other
      than the Trustee is the obligor thereon or if such investment is managed or
      advised by a Person other than the Trustee or an Affiliate of the Trustee,
      and
      (ii) no later than the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if the Trustee is the obligor
      thereon. Funds in the Distribution Account may also be held uninvested. All
      such
      Permitted Investments shall be held to maturity, unless payable on demand.
      Any
      investment of funds in an Investment Account shall be made in the name of the
      Trustee (in its capacity as such), or in the name of a nominee of the Trustee.
      The Trustee shall be entitled to sole possession (except with respect to
      investment direction of funds held in the Certificate Account and, other than
      with respect to the Trustee Float Period, the Distribution Account and any
      income realized thereon) over each such investment, and any certificate or
      other
      instrument evidencing any such investment shall be delivered directly to the
      Trustee or its agent, together with any document of transfer necessary to
      transfer title to such investment to the Trustee or its nominee. In the event
      amounts on deposit in an Investment Account are at any time invested in a
      Permitted Investment payable on demand, the Trustee shall:

     

    
      	 	
              (x)

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

            

    

     

    
      	 	
              (y)

            	
              demand
                payment of all amounts due thereunder promptly upon determination
                by a
                Responsible Officer of the Trustee that such Permitted Investment
                would
                not constitute a Permitted Investment in respect of funds thereafter
                on
                deposit in the Investment Account, it being understood and agreed
                that the
                Trustee shall have no duty to monitor investments in the Investment
                Accounts.

            

    

     

    (b)  All
      income realized from the investment of funds on deposit in the Certificate
      Account, the Distribution Account (except with respect to the Trustee Float
      Period), and any REO Account held by or on behalf of the Servicer shall be
      for
      the benefit of the Servicer and shall be subject to its withdrawal in accordance
      with Section 3.11 or Section 3.25, as applicable. All income realized from
      the
      investment of funds on deposit in the Distribution Account during the Trustee
      Float Period held by or on behalf of the Trustee shall be for the benefit of
      the
      Trustee and shall be subject to its withdrawal in accordance with Section 3.12.
      The Servicer shall deposit in the Certificate Account, the Distribution Account
      (except with respect to the Trustee Float Period) or any REO Account, as
      applicable, the amount of any loss of principal incurred in respect of any
      such
      Permitted Investment made with funds in such account immediately upon
      realization of such loss. The Trustee shall deposit in the Distribution Account
      the amount of any loss of principal incurred in respect of any such Permitted
      Investment made with funds in such account during the Trustee Float Period
      immediately upon realization of such loss. The Trustee or its Affiliates are
      permitted to receive additional compensation that could be deemed to be in
      the
      Trustee’s economic self-interest for (i) serving as investment adviser,
      administrator, shareholder, servicing agent, custodian or sub-custodian with
      respect to certain of the Permitted Investments, (ii) using Affiliates to effect
      transactions in certain Permitted Investments and (iii) effecting transactions
      in certain Permitted Investments. The Trustee does not guarantee the performance
      of any Permitted Investment.

     

    Section
      3.13.  [Reserved].

     

    Section
      3.14.  Maintenance
      of Errors and Omissions and Fidelity Coverage.

     

    The
      Servicer shall keep in force during the term of this Agreement a policy or
      policies of insurance covering errors and omissions for failure in the
      performance of the Servicer’s obligations under this Agreement, which policy or
      policies shall be in such form and amount that would meet the requirements
      of
      Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans, unless
      the Servicer has obtained a waiver of such requirements from the Rating
      Agencies. The Servicer shall also maintain a fidelity bond in the form and
      amount that would meet the requirements of Fannie Mae or Freddie Mac, unless
      the
      Servicer has obtained a waiver of such requirements from the Rating Agencies.
      The Servicer shall be deemed to have complied with this provision if an
      Affiliate of the Servicer has such errors and omissions and fidelity bond
      coverage and, by the terms of such insurance policy or fidelity bond, the
      coverage afforded thereunder extends to the Servicer. Any such errors and
      omissions policy and fidelity bond shall by its terms not be cancelable without
      thirty days’ prior written notice to the Trustee. The Servicer shall also cause
      each Sub-Servicer to maintain a policy of insurance covering errors and
      omissions and a fidelity bond which would meet such requirements.

     

    Section
      3.15.  Enforcement
      of Due-On-Sale Clauses; Assumption Agreements.

     

    The
      Servicer will, to the extent it has knowledge of any conveyance or prospective
      conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
      conveyance or by contract of sale, and whether or not the Mortgagor remains
      or
      is to remain liable under the Mortgage Note and/or the Mortgage), exercise
      its
      rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale”
clause, if any, applicable thereto; provided, however, that the Servicer shall
      not be required to take such action if the Person to whom the related Mortgaged
      Property has been conveyed or is proposed to be conveyed satisfies the
      conditions contained in the Mortgage Note and the Mortgage related thereto
      and
      the consent of the mortgagee under the Mortgage Note or the Mortgage is not
      otherwise so required under the Mortgage Note or the Mortgage as a condition
      to
      the transfer. The Servicer shall not exercise any such rights if prohibited
      by
      law from doing so. If the Servicer reasonably believes it is unable under
      applicable law to enforce such “due-on-sale” clause, or if any of the other
      conditions set forth in the proviso to the preceding sentence apply, the
      Servicer will enter into an assumption and modification agreement from or with
      the person to whom such property has been conveyed or is proposed to be
      conveyed, pursuant to which such person becomes liable under the Mortgage Note
      and, to the extent permitted by applicable state law, the Mortgagor remains
      liable thereon. The Servicer is also authorized to enter into a substitution
      of
      liability agreement with such person, pursuant to which the original Mortgagor
      is released from liability and such person is substituted as the Mortgagor
      and
      becomes liable under the Mortgage Note; provided, that no such substitution
      shall be effective unless such person satisfies the underwriting criteria of
      the
      Servicer and has a credit risk rating at least equal to that of the original
      Mortgagor. In connection with any assumption or substitution, the Servicer
      shall
      apply such underwriting standards and follow such practices and procedures
      as
      shall be normal and usual in its general mortgage servicing activities and
      as it
      applies to other mortgage loans owned solely by it. Any fee collected by the
      Servicer in respect of an assumption, modification or substitution of liability
      agreement shall be retained by the Servicer as additional servicing
      compensation. In connection with any such assumption, no material term of the
      Mortgage Note (including but not limited to the related Mortgage Rate and the
      amount of the Monthly Payment) may be amended or modified, except as otherwise
      required pursuant to the terms thereof. The Servicer shall notify the Trustee
      that any such substitution, modification or assumption agreement has been
      completed by forwarding to the Trustee the executed original of such
      substitution, modification or assumption agreement, which document shall be
      added to the related Mortgage File and shall, for all purposes, be considered
      a
      part of such Mortgage File to the same extent as all other documents and
      instruments constituting a part thereof.

     

    Notwithstanding
      the foregoing paragraph or any other provision of this Agreement, the Servicer
      shall not be deemed to be in default, breach or any other violation of its
      obligations hereunder by reason of any assumption of a Mortgage Loan by
      operation of law or by the terms of the Mortgage Note or any assumption which
      the Servicer may be restricted by law from preventing, for any reason
      whatsoever. For purposes of this Section 3.15, the term “assumption” is deemed
      to also include a sale (of the Mortgaged Property) subject to the Mortgage
      that
      is not accompanied by an assumption or substitution of liability
      agreement.

     

    Section
      3.16.  Realization
      Upon Defaulted Mortgage Loans.

     

    (a)  The
      Servicer shall use reasonable efforts, in accordance with the Servicing
      Standard, to foreclose upon or otherwise comparably convert the ownership of
      properties securing such of the Mortgage Loans as come into and continue in
      default and as to which no satisfactory arrangements can be made for collection
      of delinquent payments pursuant to Section 3.07. The Servicer shall be
      responsible for all costs and expenses incurred by it in any such proceedings;
      provided, however, that such costs and expenses will be recoverable as Servicing
      Advances by the Servicer as contemplated in Section 3.11 and Section 3.25.
      The
      foregoing is subject to the provision that, in any case in which a Mortgaged
      Property shall have suffered damage from an Uninsured Cause, the Servicer shall
      not be required to expend its own funds toward the restoration of such property
      unless it shall determine in its discretion that such restoration will increase
      the proceeds of liquidation of the related Mortgage Loan after reimbursement
      to
      itself for such expenses.

     

    (b)  Notwithstanding
      the foregoing provisions of this Section 3.16 or any other provision of this
      Agreement, with respect to any Mortgage Loan as to which the Servicer has
      received actual notice of, or has actual knowledge of, the presence of any
      toxic
      or hazardous substance on the related Mortgaged Property, the Servicer shall
      not, on behalf of the Trustee, either (i) obtain title to such Mortgaged
      Property as a result of or in lieu of foreclosure or otherwise, or (ii)
      otherwise acquire possession of, or take any other action with respect to,
      such
      Mortgaged Property, if, as a result of any such action, the Trustee, the Trust
      Fund or the Certificateholders would be considered to hold title to, to be
      a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
      Mortgaged Property within the meaning of the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980, as amended from time to time,
      or any comparable law, unless the Servicer has also previously determined,
      based
      on its reasonable judgment and a report prepared by a Person who regularly
      conducts environmental audits using customary industry standards,
      that:

     

    
      	 	
              (1)

            	
              such
                Mortgaged Property is in compliance with applicable environmental
                laws or,
                if not, that it would be in the best economic interest of the Trust
                Fund
                to take such actions as are necessary to bring the Mortgaged Property
                into
                compliance therewith; and

            

    

     

    
      	 	
              (2)

            	
              there
                are no circumstances present at such Mortgaged Property relating
                to the
                use, management or disposal of any hazardous substances, hazardous
                materials, hazardous wastes, or petroleum-based materials for which
                investigation, testing, monitoring, containment, clean-up or remediation
                could be required under any federal, state or local law or regulation,
                or
                that if any such materials are present for which such action could
                be
                required, that it would be in the best economic interest of the Trust
                Fund
                to take such actions with respect to the affected Mortgaged
                Property.

            

    

     

    The
      cost
      of the environmental audit report contemplated by this Section 3.16 shall be
      advanced by the Servicer, subject to the Servicer’s right to be reimbursed
      therefor from the Certificate Account as provided in Section 3.11(a)(vii),
      such
      right of reimbursement being prior to the rights of Certificateholders to
      receive any amount in the Certificate Account received in respect of the
      affected Mortgage Loan or other Mortgage Loans.

     

    If
      the
      Servicer determines, as described above, that it is in the best economic
      interest of the Trust Fund to take such actions as are necessary to bring any
      such Mortgaged Property into compliance with applicable environmental laws,
      or
      to take such action with respect to the containment, clean-up or remediation
      of
      hazardous substances, hazardous materials, hazardous wastes or petroleum-based
      materials affecting any such Mortgaged Property, then the Servicer shall take
      such action as it deems to be in the best economic interest of the Trust Fund;
      provided, that any amounts disbursed by the Servicer pursuant to this Section
      3.16(b) shall constitute Servicing Advances, subject to Section 4.03(d). The
      cost of any such compliance, containment, cleanup or remediation shall be
      advanced by the Servicer, subject to the Servicer’s right to be reimbursed
      therefor from the Certificate Account as provided in Section 3.11(a)(iii) and
      (a)(vii), such right of reimbursement being prior to the rights of
      Certificateholders to receive any amount in the Certificate Account received
      in
      respect of the affected Mortgage Loan or other Mortgage Loans.

     

    (c)  The
      Servicer may agree to a modification of any Mortgage Loan (a “Modified Mortgage
      Loan”) at the request of the related Mortgagor if (i) the modification is in
      lieu of a refinancing and the Mortgage Rate on the Modified Mortgage Loan,
      as
      modified, is approximately a prevailing market rate for newly-originated
      Mortgage Loans having similar terms and (ii) the Servicer purchases the Modified
      Mortgage Loan from the Trust Fund as described below. Effective immediately
      after the deposit of the Purchase Price by the Servicer, all interest of the
      Trustee in the Modified Mortgage Loan shall automatically be deemed transferred
      and assigned to the Servicer and all benefits and burdens of ownership thereof,
      including the right to accrued interest thereon from the date of the deposit
      of
      the Purchase Price and the risk of default thereon, shall pass to the Servicer.
      The Servicer shall promptly deliver to the Trustee a certification of a
      Servicing Officer to the effect that all requirements of this paragraph have
      been satisfied with respect to the Modified Mortgage Loan.

     

    The
      Servicer shall deposit the Purchase Price for any Modified Mortgage Loan in
      the
      Certificate Account pursuant to Section 3.10(a)(vii) within one Business Day
      after the purchase of the Modified Mortgage Loan. Upon receipt by the Trustee
      of
      written notification of any such deposit signed by a Servicing Officer, the
      Trustee shall release to the Servicer the related Mortgage File and shall
      execute and deliver such instruments of transfer or assignment, in each case
      without recourse, as shall be necessary to vest in the Servicer any Modified
      Mortgage Loan previously transferred and assigned pursuant hereto. The Servicer
      covenants and agrees to indemnify the Trustee and the Trust Fund against any
      liability for any “prohibited transaction” taxes and any related interest,
      additions, and penalties imposed on the Trust Fund established hereunder as
      a
      result of any modification of a Mortgage Loan effected pursuant to this Section
      3.16(c), any holding of a Modified Mortgage Loan by the Trust Fund or any
      purchase of a Modified Mortgage Loan by the Servicer (but such obligation shall
      not prevent the Servicer or any other appropriate Person from contesting any
      such tax in appropriate proceedings and shall not prevent the Servicer from
      withholding payment of such tax, but not any related indemnification, if
      permitted by law, pending the outcome of such proceedings). The Servicer shall
      have no right of reimbursement for any amount paid pursuant to the foregoing
      indemnification, except to the extent that the amount of any tax, interest,
      and
      penalties, together with interest thereon, is refunded to the Trust Fund. In
      no
      event shall the Servicer have the discretion to sell a delinquent or defaulted
      Mortgage Loan.

     

    (d)  Proceeds
      received in connection with any Final Recovery Determination, as well as any
      recovery resulting from a partial collection of Insurance Proceeds, Subsequent
      Recoveries or Liquidation Proceeds, in respect of any Mortgage Loan, will be
      applied in the following order of priority: first, to unpaid Servicing Fees;
      second, to the Servicer or any Sub-Servicer for any related unreimbursed
      Servicing Advances pursuant to Section 3.11(a)(iii) and Advances pursuant to
      Section 3.11(a)(ii); third, to accrued and unpaid interest on the Mortgage
      Loan,
      to the date of the Final Recovery Determination, or to the Due Date prior to
      the
      Distribution Date on which such amounts are to be distributed if not in
      connection with a Final Recovery Determination; and fourth, as a recovery of
      principal of the Mortgage Loan. The portion of the recovery so allocated to
      unpaid Servicing Fees shall be reimbursed to the Servicer or any Sub-Servicer
      pursuant to Section 3.11(a)(iii).

     

    Section
      3.17.  Trustee
      to Cooperate; Release of Mortgage Files.

     

    (a)  Upon
      the
      payment in full of any Mortgage Loan, or the receipt by the Servicer of a
      notification that payment in full shall be escrowed in a manner customary for
      such purposes, the Servicer shall deliver to the Trustee two executed copies
      of
      a Request for Release in the form of Exhibit E (which certification shall
      include a statement to the effect that all amounts received or to be received
      in
      connection with such payment which are required to be deposited in the
      Certificate Account pursuant to Section 3.10 have been or will be so deposited)
      signed by a Servicing Officer (or in a mutually agreeable electronic format
      that
      will, in lieu of a signature on its face, originate from a Servicing Officer)
      and shall request delivery to it of the Mortgage File. Upon receipt of such
      certification and request, the Trustee shall, within five Business Days, release
      and send by overnight mail, at the expense of the Servicer, the related Mortgage
      File to the Servicer. No expenses incurred in connection with any instrument
      of
      satisfaction or deed of reconveyance shall be chargeable to the Certificate
      Account or the Distribution Account.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan, including, for this purpose, collection under any insurance policy
      relating to the Mortgage Loans, the Trustee shall, upon any request made by
      or
      on behalf of the Servicer and delivery to the Trustee of two copies of a Request
      for Release in the form of Exhibit E signed by a Servicing Officer (or in a
      mutually agreeable electronic format that will, in lieu of a signature on its
      face, originate from a Servicing Officer), release the related Mortgage File
      to
      the Servicer, and the Trustee shall, at the direction of the Servicer, execute
      such documents as shall be necessary to the prosecution of any such proceedings.
      Such Request for Release shall obligate the Servicer to return each and every
      document previously requested from the Mortgage File to the Trustee when the
      need therefor by the Servicer no longer exists, unless the Mortgage Loan has
      been liquidated and the Liquidation Proceeds relating to the Mortgage Loan
      have
      been deposited in the Certificate Account or the Mortgage File or such document
      has been delivered to an attorney, or to a public trustee or other public
      official as required by law, for purposes of initiating or pursuing legal action
      or other proceedings for the foreclosure of the Mortgaged Property either
      judicially or non-judicially, and the Servicer has delivered, or caused to
      be
      delivered, to the Trustee an additional Request for Release certifying as to
      such liquidation or action or proceedings. Upon the request of the Trustee,
      the
      Servicer shall provide notice to the Trustee of the name and address of the
      Person to which such Mortgage File or such document was delivered and the
      purpose or purposes of such delivery. Upon receipt of two copies of a Request
      for Release from a Servicing Officer stating that such Mortgage Loan was
      liquidated and that all amounts received or to be received in connection with
      such liquidation that are required to be deposited into the Certificate Account
      have been so deposited, or that such Mortgage Loan has become an REO Property,
      one copy of such Request for Release with respect to such Mortgage Loan shall
      be
      released by the Trustee to the Servicer or its designee.

     

    (c)  Upon
      written certification of a Servicing Officer, the Trustee shall execute and
      deliver to the Servicer or the Sub-Servicer, as the case may be, copies of,
      any
      court pleadings, requests for trustee’s sale or other documents necessary to the
      foreclosure or trustee’s sale in respect of a Mortgaged Property or to any legal
      action brought to obtain judgment against any Mortgagor on the Mortgage Note
      or
      Mortgage or to obtain a deficiency judgment, or to enforce any other remedies
      or
      rights provided by the Mortgage Note or Mortgage or otherwise available at
      law
      or in equity. Each such certification shall include a request that such
      pleadings or documents be executed by the Trustee and a statement as to the
      reason such documents or pleadings are required and that the execution and
      delivery thereof by the Trustee will not invalidate or otherwise affect the
      lien
      of the Mortgage, except for the termination of such a lien upon completion
      of
      the foreclosure or trustee’s sale.

     

    Section
      3.18.  Servicing
      Compensation.

     

    As
      compensation for the activities of the Servicer hereunder, the Servicer shall
      be
      entitled to the Servicing Fee with respect to each Mortgage Loan payable solely
      from payments of interest in respect of such Mortgage Loan, subject to Section
      3.24. In addition, the Servicer shall be entitled to recover unpaid Servicing
      Fees out of Insurance Proceeds, Subsequent Recoveries or Liquidation Proceeds
      to
      the extent permitted by Section 3.11(a)(iii). The right to receive the Servicing
      Fee may not be transferred in whole or in part except in connection with the
      transfer of all of the Servicer’s responsibilities and obligations under this
      Agreement; provided, however, that the Servicer may pay from the Servicing
      Fee
      any amounts due to a Sub-Servicer pursuant to a Sub-Servicing Agreement entered
      into under Section 3.02.

     

    Additional
      servicing compensation in the form of assumption fees, late payment charges,
      insufficient funds charges, ancillary income or otherwise shall be retained
      by
      the Servicer only to the extent such fees or charges are received by the
      Servicer. The Servicer shall also be entitled pursuant to Section 3.11(a)(iv)
      to
      withdraw from the Certificate Account and pursuant to Section 3.25(b) to
      withdraw from any REO Account, as additional servicing compensation, interest
      or
      other income earned on deposits therein, subject to Section 3.12 and Section
      3.24. The Servicer shall be required to pay all expenses incurred by it in
      connection with its servicing activities hereunder (including premiums for
      the
      insurance required by Section 3.14, to the extent such premiums are not paid
      by
      the related Mortgagors or by a Sub-Servicer and servicing compensation of each
      Sub-Servicer) and shall not be entitled to reimbursement therefor except as
      specifically provided herein.

     

    In
      addition, the Servicer shall be entitled to any Prepayment Interest Excess,
      which it may withdraw from the Certificate Account pursuant to Section
      3.11(a)(x).

     

    Section
      3.19.  Reports
      to the Trustee; Certificate Account Statements.

     

    Not
      later
      than twenty days after each Distribution Date, the Servicer shall forward,
      upon
      request, to the Trustee, the Certificate Insurer and the Depositor, the most
      current available bank statement for the Certificate Account. Copies of such
      statement shall be provided by the Trustee to any Certificateholder or
      Certificate Owner, to the Certificate Insurer and to any Person identified
      to
      the Trustee as a prospective transferee of a Certificate, upon request at the
      expense of the requesting party; provided, that such statement is delivered
      by
      the Servicer to the Trustee.

     

    Section
      3.20.  Statement
      as to Compliance.

     

    The
      Servicer shall deliver to the Trustee via electronic mail
      (DBSEC.Notifications@db.com), the Depositor, the Certificate Insurer and the
      Rating Agencies on or before March 15 of each year, commencing in 2007, an
      officer’s certificate, certifying that with respect to the period ending
      December 31st of the prior year: (i) the Servicer or such Servicing Officer,
      as
      applicable, has reviewed the activities of the Servicer during the preceding
      calendar year or portion thereof and its performance under this Agreement and
      (ii) to the best of the Servicer’s or such Servicing Officer’s knowledge, as
      applicable, based on such review, the Servicer has performed and fulfilled
      its
      duties, responsibilities and obligations under this Agreement in all material
      respects throughout such year, or, if there has been a default in the
      fulfillment of any such duties, responsibilities or obligations, specifying
      each
      such default known to such Servicing Officer and the nature and status thereof.
      Copies of any such statement shall be provided by the Trustee to any
      Certificateholder and to any Person identified to the Trustee as a prospective
      transferee of a Certificate, upon request at the expense of the requesting
      party, provided such statement is delivered by the Servicer to the Trustee.
      In
      addition to the foregoing, the Servicer will, to the extent reasonable, give
      any
      other servicing information required by the Commission pursuant to applicable
      law.

     

    Section
      3.21.  Assessments
      of Compliance and Attestation Reports.

     

    The
      Servicer shall service and administer the Mortgage Loans in accordance with
      all
      applicable requirements of the Servicing Criteria (as set forth in Exhibit
      R
      hereto). Pursuant to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122
      of Regulation AB, the Servicer shall deliver to the Trustee via electronic
      mail
      (DBSEC.Notifications@db.com), the Certificate Insurer and the Depositor prior
      to
      (x) March 15, 2007 and (y) unless and until a Form 15 Suspension Notice shall
      have been filed, prior to March 15th of each year thereafter, a report regarding
      the Servicer’s assessment of compliance (an “Assessment of Compliance”) with the
      Servicing Criteria during the preceding calendar year. The Assessment of
      Compliance must be reasonably satisfactory to the Depositor, and as set forth
      in
      Regulation AB, the Assessment of Compliance must contain the
      following:

     

    a. A
      statement by such officer of its responsibility for assessing compliance with
      the Servicing Criteria applicable to the Servicer;

     

    b. A
      statement by such officer that such officer used the Servicing Criteria, and
      which will also be attached to the Assessment of Compliance, to assess
      compliance with the Servicing Criteria applicable to the Servicer;

     

    c. An
      assessment by such officer of the Servicer’s compliance with the applicable
      Servicing Criteria for the period consisting of the preceding calendar year,
      including disclosure of any material instance of noncompliance with respect
      thereto during such period, which assessment shall be based on the activities
      it
      performs with respect to asset-backed securities transactions taken as a whole
      involving the Servicer, that are backed by the same asset type as the Mortgage
      Loans;

     

    d. A
      statement that a registered public accounting firm has issued an attestation
      report on the Servicer’s Assessment of Compliance for the period consisting of
      the preceding calendar year; and

     

    e. A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
      the Servicer, which statement shall be based on the activities it performs
      with
      respect to asset-backed securities transactions taken as a whole involving
      the
      Servicer, that are backed by the same asset type as the Mortgage
      Loans.

     

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on
      Exhibit R hereto which are indicated as applicable to the Servicer.

     

    Prior
      to
      (x) March 15, 2007 and (y) unless and until a Form 15 Suspension Notice shall
      have been filed, prior to March 15th of each year thereafter, the Servicer
      shall
      furnish to the Trustee and the Depositor a report (an “Attestation Report”) by a
      registered public accounting firm that attests to, and reports on, the
      Assessment of Compliance made by the Servicer, as required by Rules 13a-18
      and
      15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, which Attestation
      Report must be made in accordance with standards for attestation reports issued
      or adopted by the Public Company Accounting Oversight Board. 

     

    The
      Servicer shall cause and any sub-servicer, and each subcontractor determined
      by
      the Servicer to be “participating in the servicing function” within the meaning
      of Item 1122 of Regulation AB, to deliver to the Trustee and the Depositor
      an
      Assessment of Compliance and Attestation Report as and when provided
      above.

     

    Such
      Assessment of Compliance, as to any Sub-Servicer, shall at a minimum address
      each of the Servicing Criteria specified on Exhibit R hereto which are indicated
      as applicable to any “primary servicer.” Notwithstanding the foregoing, as to
      any subcontractor, an Assessment of Compliance is not required to be delivered
      unless it is required as part of a Form 10-K with respect to the Trust
      Fund.

     

    If
      the
      Servicer cannot deliver any Assessment of Compliance or Attestation Report
      by
      March 15th of such year, the Depositor, at its sole option, may permit a cure
      period for the Servicer to deliver such Assessment of Compliance or Attestation
      Report, but in no event later than March 25th of such year.

     

    Failure
      of the Servicer to timely comply with this Section 3.21 may be deemed an Event
      of Default. The Trustee shall, with the consent of the Depositor, in addition
      to
      whatever rights the Trustee may have under this Agreement and at law or equity
      or to damages, including injunctive relief and specific performance, give notice
      to Certificateholders that they have ten Business Days to object. If no such
      objection is received and so long as no Certificate Insurer Default is
      continuing, if the Certificate Insurer consents in writing, the Trustee shall
      immediately terminate all the rights and obligations of the Servicer under
      this
      Agreement and in and to the Mortgage Loans and the proceeds thereof without
      compensating the Servicer for the same. This paragraph shall supersede any
      other
      provision in this Agreement or any other agreement to the contrary.

     

    The
      Trustee shall, prior to (x) March 15, 2007 and (y) unless and until a Form
      15
      Suspension Notice shall have been filed, prior to March 15th of each year
      thereafter, shall also provide an Assessment of Compliance and Attestation
      Report, as and when provided above, which shall at a minimum address each of
      the
      Servicing Criteria specified on Exhibit R hereto which are indicated as
      applicable to the “trustee.”

     

    The
      Servicer shall indemnify and hold harmless the Depositor and its officers,
      directors and Affiliates from and against any actual losses, damages, penalties,
      fines, forfeitures, reasonable and necessary legal fees and related costs,
      judgments and other costs and expenses that such Person may sustain based upon
      a
      breach of the Servicer’s obligations under this Section 3.21.

     

    Section
      3.22.  Commission
      Reporting.

     

    (i)  Unless
      and until a Form 15 Suspension Notice shall have been filed, the Trustee shall,
      within 15 days after each Distribution Date and in accordance with industry
      standards, file with the Commission via the Electronic Data Gathering and
      Retrieval System (“EDGAR”), a Distribution Report on Form 10-D (the
“Distribution Report”) with a copy of the Monthly Statement to be furnished by
      the Trustee to the Certificateholders for such Distribution Date and, if
      applicable, including the information required by each of the items set forth
      in
      Part II thereof, subject to the receipt of the information set forth in (f)
      below, in the case of information not required to be provided by the
      Trustee.

     

    (ii)  
      Except
      with respect to the Distribution Report to be filed following the first
      Distribution Date, the Trustee shall prepare each Distribution Report and,
      no
      later than 5 Business Days prior to the date on which such Distribution Report
      is required to be filed, deliver a copy of such Distribution Report to the
      Depositor for review. No later than the Business Day following the receipt
      thereof, the Depositor shall notify the Trustee of any changes to be made to
      the
      Distribution Report. The Trustee shall make any changes thereto requested by
      the
      Depositor and deliver the final Distribution Report to the Depositor for
      signature no later than three Business Days prior to the date on which such
      Distribution Report must be filed by the Trustee in accordance with clause
      (i)
      above. The Depositor shall execute the final Distribution Report and deliver
      the
      same to the Trustee via electronic mail (DBSEC.Notifications@db.com) or
      facsimile no later than the Business Day following receipt of the same (which,
      unless not received within such time frame from the Trustee, shall be no later
      than two Business Days prior to the date on which the Distribution Report is
      required to be filed), with an original executed hard copy to follow by
      overnight mail. With respect to the Distribution Report to be filed following
      the first Distribution Date, the Depositor shall prepare and execute such
      Distribution Report and, no later than 5 Business Days prior to the date on
      which such Distribution Report is required to be filed, deliver a copy of such
      Distribution Report to the Trustee. The Trustee shall attach thereto the Monthly
      Statement furnished by the Trustee to the Certificateholders for such
      Distribution Date and file such Distribution Report in accordance with clause
      (a) above.

     

    (iii)  The
      Depositor shall prepare and file Current Reports on Form 8-K, as and when
      required. 

     

    (iv)  Prior
      to
      January 30th of the first year in which the Trustee is able to do so under
      applicable law, the Trustee shall, in accordance with industry standards, file
      a
      Form 15 Suspension Notice with respect to the Trust Fund. 

     

    (v)  Prior
      to
      (x) March 15, 2007 and (y) unless and until a Form 15 Suspension Notice shall
      have been filed, prior to March 15th of each year thereafter, the Servicer
      shall
      provide the Trustee with an Annual Compliance Statement, together with a copy
      of
      the Assessment of Compliance and Attestation Report to be delivered by the
      Servicer pursuant to Sections 3.20 and 3.21. Prior to (x) March 31, 2007 and
      (y)
      unless and until a Form 15 Suspension Notice shall have been filed, March 31st
      of each year thereafter, the Trustee shall, subject to subsection (e) below,
      file a Form 10-K, with respect to the Trust Fund. The Trustee shall prepare
      each
      Form 10-K and, no later than 5 Business Days prior to the date on which such
      Form 10-K is required to be filed, deliver a copy of such Form 10-K to the
      Depositor for review. No later than the Business Day following the receipt
      thereof, the Depositor shall notify the Trustee of any changes to be made to
      the
      Form 10-K. The Trustee shall make any changes thereto requested by the Depositor
      and deliver the final Form 10-K to the Depositor for signature no later than
      three Business Days prior to the date on which such Form 10-K must be filed
      by
      the Trustee in accordance with this clause (iv). The Depositor shall execute
      the
      final Form 10-K and deliver the same to the Trustee via electronic mail
      (DBSEC.Notifications@db.com) or facsimile no later than Business Day following
      receipt of the same (which, unless not received within such time frame from
      the
      Trustee, shall be no later than two Business Days prior to the date on which
      the
      Form 10-K is required to be filed), with an original executed hard copy to
      follow by overnight mail. Such Form 10-K shall include the Assessment of
      Compliance, Attestation Report, Annual Compliance Statements and other
      documentation provided by the Servicer pursuant to Sections 3.20 and 3.21 and
      a
      certification in the form attached hereto as Exhibit O-1 (the “Depositor
      Certification”), which shall be signed by the senior officer of the Depositor in
      charge of securitization. 

     

    (vi)  As
      to
      each item of information required to be included in any Form 10-D, Form 8-K
      or
      Form 10-K, the Trustee's or Depositor’s obligation to include the information in
      the applicable report is subject to receipt from the entity that is indicated
      in
      Exhibit S as the responsible party for providing that information, if other
      than
      the Trustee or the Depositor, as applicable, as and when required as described
      above. Each of the Trustee, the Servicer and the Depositor, as applicable,
      hereby agree to notify and provide to the Trustee and the Depositor all
      information that is required to be included in any Form 10-D, Form 8-K or Form
      10-K, with respect to which that entity is indicated in Exhibit S as the
      responsible party for providing that information. In the case of information
      to
      be included in the Form 10-D, such information shall be delivered to the Trustee
      no later than no later than 5 calendar days following each Distribution Date.
      In
      the case of information to be included in the Form 8-K, such information shall
      be delivered to the Depositor no later than 2 Business Days following the
      occurrence of a reportable event. In the case of information to be included
      in
      the Form 10-K, such information, other than the documentation provided pursuant
      to Sections 3.20, 3.21 and 3.22, shall be delivered to the Trustee no later
      than
      (x) March 1, 2007 and (y) unless and until a Form 15 Suspension Notice shall
      have been filed, March 1st of each year thereafter. The Servicer shall be
      responsible for determining the pool concentration applicable to any subservicer
      or originator at any time, for purposes of disclosure as required by Items
      1117
      and 1119 of Regulation AB. The Trustee shall provide electronic or paper copies
      of all Form 10-D, 8-K and 10-K filings free of charge to any Certificateholder
      upon request. 

     

    (vii)  The
      Trustee shall sign a certification (in the form attached hereto as Exhibit
      O-2)
      for the benefit of the Depositor and its officers, directors and Affiliates.
      The
      Trustee's certification shall be delivered to the Depositor no later than March
      18th of each year (or if such day is not a Business Day, the immediately
      preceding Business Day) and the Depositor shall deliver the Depositor
      Certification to the Trustee for filing no later than March 20th of each year
      (or if such day is not a Business Day, the immediately preceding Business
      Day).

     

    (viii)  The
      Trustee shall indemnify and hold harmless the Depositor and its officers,
      directors and Affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon (i) a breach of the
      Trustee’s obligations under this Section 3.22, Section 3.21 or (ii) any
      material misstatement or omission contained in any information provided by
      the
      Trustee including, without limitation, in the certification provided by the
      Trustee in the form of Exhibit O-2 or the Assessment of Compliance provided
      pursuant to Section 3.21. If the indemnification provided for herein is
      unavailable or insufficient to hold harmless the Depositor, then the Trustee,
      in
      connection with (i) a breach of the Trustee’s obligations under this
      Section 3.22, Section 3.21 or (ii) any material misstatement or omission
      contained in any information provided by the Trustee including, without
      limitation, in the certification provided by the Trustee in the form of Exhibit
      O-2, or in the Assessment of Compliance or Attestation report provided pursuant
      to Section 3.21, agrees that it shall contribute to the amount paid or payable
      by the Depositor as a result of the losses, claims, damages or liabilities
      of
      the Depositor in such proportion as is appropriate to reflect the relative
      fault
      of the Depositor on the one hand and the Trustee on the other. This
      indemnification shall survive the termination of this Agreement or the
      termination of any party to this Agreement.

     

    The
      Servicer shall indemnify and hold harmless the Depositor, the Trustee, the
      Certificate Insurer and their respective officers, directors and Affiliates
      from
      and against any actual losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses that such Person may sustain based upon (i) a breach of the
      Servicer’s obligations under Sections 3.20, 3.21 or 3.22 or (ii) any material
      misstatement or omission contained in any information provided by the Servicer
      including, without limitation, in the information provided pursuant to Sections
      3.20 and 3.21. This indemnification shall survive the termination of this
      Agreement or the termination of any party to this Agreement.

     

    The
      Depositor shall indemnify and hold harmless the Servicer, the Trustee, the
      Certificate Insurer and their respective officers, directors and Affiliates
      from
      and against any actual losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses that such Person may sustain based upon (i) a breach of the
      Depositor’s obligations under this Section 3.22 or (ii) any material
      misstatement or omission contained in any information provided by the
      Depositor.

     

    (ix)  The
      Trustee will have no duty or liability to verify the accuracy or sufficiency
      of
      any information not prepared by it included in any Form 10-D, Form
      10-K or Form 8-K.  The Trustee shall have no liability with
      respect to any failure to properly prepare or file any Form 10-D or Form 10-K
      resulting from or relating to the Trustee's inability or failure to obtain
      any
      information in a timely manner from the party responsible for delivery of such
      disclosure information.  The Trustee shall have no liability with respect
      to any failure to properly file any Form 10-D or 10-K resulting from or relating
      to the Depositor's failure to timely comply with the provisions of this
      section.  Nothing herein shall be construed to require the Trustee or any
      officer, director or Affiliate thereof to sign any Form 10-D, Form 10-K or
      Form
      8-K. Copies of all reports filed by the Trustee under the Exchange Act shall
      be
      sent to the Depositor electronically or at the addressed set forth in Section
      11.05. Fees and expenses incurred by the Trustee in connection with this Section
      3.24 shall not be reimbursable from the Trust Fund.

     

    (x)  Upon
      any
      filing with the Commission, the Trustee shall promptly deliver to the Depositor
      a copy of any executed report, statement or information.

     

    (xi)  To
      the
      extent that, following the Closing Date, the Depositor certifies that reports
      and certifications differing from those required under this Section 3.22 are
      necessary to comply with the reporting requirements under the Exchange Act,
      the
      parties hereto hereby agree that each will reasonably cooperate to amend the
      provisions of this Section 3.22 in order to comply with such amended reporting
      requirements and such amendment of this Section 3.22. Any such amendment may
      result in the reduction of the reports executed by and filed on behalf of the
      Depositor under the Exchange Act. Notwithstanding the foregoing, the Trustee
      shall not be obligated to enter into any amendment pursuant to this Section
      that
      adversely affects its obligations and immunities under this
      Agreement.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.20, 3.21
      and
      this Section 3.22 of this Agreement is to facilitate compliance by the Depositor
      with the provisions of Regulation AB. Therefore, each of the parties agree
      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 in respect of the requirements
      of
      Regulation AB, (c) the parties shall comply with reasonable requests made by
      the
      Depositor for delivery of additional or different information as the Depositor
      may determine in good faith is necessary to comply with the provisions of
      Regulation AB, 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
      3.23.  Pre-Funding
      Account.

     

    (a)  No
      later
      than the Closing Date, the Trustee shall establish and maintain a segregated
      trust account that is an Eligible Account, which shall be titled “Pre-Funding
      Account, Deutsche Bank National Trust Company, as Trustee, in trust for
      registered Holders of IndyMac Residential Mortgage-Backed Trust Certificates,
      Series 2006-L4” (the “Pre-Funding Account”). The Trustee shall, promptly upon
      receipt, deposit in the Pre-Funding Account and retain therein the Original
      Pre-Funded Amount remitted on the Closing Date to the Trustee by the Depositor.
      Funds deposited in the Pre-Funding Account shall be held in trust by the Trustee
      for the Certificateholders and the Certificate Insurer for the uses and purposes
      set forth herein. The Trustee shall account for the Pre-Funding Account as
      outside reserve funds within the meaning of Treasury Regulation Section
      1.860G-2(h) and not as assets of any REMIC created pursuant to this
      Agreement.

     

    (b)  The
      Trustee shall invest funds deposited in the Pre-Funding Account in Permitted
      Investments of the kind described in clauses (i), (v) or (vi) of the definition
      of Permitted Investments, as specified in a written direction from the Servicer,
      with a maturity date no later than the second Business Day preceding each
      Distribution Date. Any income earned on deposits in the Pre-Funding Account
      shall be deposited into the Interest Coverage Account. For federal income tax
      purposes, the holders of the Class R Certificates shall be the owners of the
      Pre-Funding Account and shall report all items of income, deduction, gain or
      loss arising therefrom. The Servicer shall deposit in the Pre-Funding Account
      the amount of any net loss incurred in respect of any such Permitted Investment
      immediately upon realization of such loss without any right of reimbursement
      therefor. The Pre-Funding Account shall not be assets of any Trust
      REMIC.

     

    (c)  Amounts
      on deposit in the Pre-Funding Account shall be withdrawn by the Trustee as
      follows:

     

    (i)  on
      any
      Subsequent Transfer Date, the Trustee shall withdraw from the Pre-Funding
      Account an amount equal to 100% of the Stated Principal Balances of the
      Subsequent Mortgage Loans transferred and assigned to the Trustee for deposit
      in
      the pool of Mortgage Loans on such Subsequent Transfer Date and pay such amount
      to or upon the order of the Depositor upon satisfaction of the conditions set
      forth in Section 2.04 with respect to such transfer and assignment;

     

    (ii)  if
      the
      amount on deposit in the Pre-Funding Account has not been reduced to zero during
      the Funding Period, on the day of the termination of the Funding Period, the
      Trustee shall deposit into the Distribution Account any amounts remaining in
      the
      Pre-Funding Account to be held uninvested;

     

    (iii)  to
      withdraw any amount not required to be deposited in the Pre-Funding Account
      or
      deposited therein in error; and

     

    (iv)  to
      clear
      and terminate the Pre-Funding Account upon the earlier to occur of (A) the
      day
      immediately following the end of the Funding Period and (B) the termination
      of
      this Agreement, with any amounts remaining on deposit therein being paid to
      the
      Certificateholders then entitled to distributions in respect of
      principal.

     

    Section
      3.24.  Access
      to Certain Documentation.

     

    The
      Servicer shall provide to the Office of Thrift Supervision, the FDIC, and any
      other federal or state banking or insurance regulatory authority that may
      exercise authority over any Certificateholder or Certificate Owner, access
      to
      the documentation regarding the Mortgage Loans required by applicable laws
      and
      regulations. Such access shall be afforded without charge, but only upon
      reasonable request and reasonable advance notice and during normal business
      hours at the offices of the Servicer designated by it. In addition, access
      to
      the documentation regarding the Mortgage Loans will be provided to any
      Certificateholder or Certificate Owner, the Certificate Insurer, the Trustee
      and
      any Person identified to the Servicer as a prospective transferee of a
      Certificate, upon reasonable request and reasonable advance notice during normal
      business hours at the offices of the Servicer designated by it at the expense
      of
      the Person requesting such access.

     

    Section
      3.25.  Title,
      Maintenance and Disposition of REO Property.

     

    (a)  The
      deed
      or certificate of sale of any REO Property shall be taken in the name of the
      Trustee, or its nominee, in trust for the benefit of the Certificateholders
      and
      the Certificate Insurer. If the Trust Fund acquires any Mortgaged Property
      as
      aforesaid or otherwise in connection with a default or imminent default on
      a
      Mortgage Loan, the REO Property shall only be held temporarily, shall be
      actively marketed for sale, and the Servicer shall dispose of the Mortgaged
      Property as soon as practicable, and in any case before the end of the third
      calendar year following the calendar year in which the Trust Fund acquires
      the
      property. Notwithstanding any other provision of this Agreement, no Mortgaged
      Property acquired by the Trust Fund shall be rented (or allowed to continue
      to
      be rented) or otherwise used for the production of income by or on behalf of
      the
      Trust Fund in such a manner or pursuant to any terms that would (i) cause the
      Mortgaged Property to fail to qualify as “foreclosure property” within the
      meaning of Section 860G(a)(8) of the Code or (ii) subject any REMIC to the
      imposition of any federal, state, or local income taxes on the proceeds received
      from the Mortgaged Property under Section 860G(c) of the Code or otherwise,
      unless the Servicer has agreed to indemnify and hold harmless the Trust Fund
      with respect to the imposition of any such taxes.

     

    The
      decision of the Servicer to foreclose on a defaulted Mortgage Loan shall be
      subject to a determination by the Servicer that the proceeds of the foreclosure
      would exceed the costs and expenses of bringing a foreclosure proceeding. The
      proceeds received from the maintenance of any REO Properties, net of
      reimbursement to the Servicer for costs incurred (including any property or
      other taxes) in connection with maintenance of the REO Properties and net of
      unreimbursed Servicing Fees, Advances, and Servicing Advances, shall be applied
      to the payment of principal of and interest on the related defaulted Mortgage
      Loans (with interest accruing as though the Mortgage Loans were still current
      and adjustments, if applicable, to the Mortgage Rate were being made in
      accordance with the Mortgage Note) and all such proceeds shall be deemed, for
      all purposes in this Agreement, to be payments on account of principal and
      interest on the related Mortgage Notes and shall be deposited into the
      Distribution Account.

     

    (b)  The
      Servicer shall separately account for any funds collected in connection with
      any
      REO Property and shall establish and maintain, or cause to be established and
      maintained, with respect to REO Properties an account held in trust for the
      Trustee for the benefit of the Certificateholders and the Certificate Insurer
      (the “REO Account”), which shall be an Eligible Account. The Servicer shall be
      permitted to allow the Certificate Account to serve as the REO Account, subject
      to separate ledgers for each REO Property. The Servicer shall be entitled to
      retain or withdraw any interest income paid on funds deposited in the REO
      Account.

     

    (c)  The
      Servicer shall deposit, or cause to be deposited in the clearing account in
      which it customarily deposits payments and collections on mortgage loans in
      connection with its mortgage loan servicing activities on a daily basis, and
      in
      no event more than one Business Day after the Servicer’s receipt thereof, and
      shall thereafter deposit in the REO Account, in no event more than two Business
      Days after the Servicer’s receipt thereof, any amounts collected in respect of
      an REO Property and shall withdraw therefrom funds necessary for the proper
      maintenance and preservation of such REO Property including, without
      limitation:

     

    (i)  all
      insurance premiums due and payable in respect of such REO Property;

     

    (ii)  all
      real
      estate taxes and assessments in respect of such REO Property that may result
      in
      the imposition of a lien thereon; and

     

    (iii)  all
      costs
      and expenses necessary to maintain such REO Property.

     

    To
      the
      extent that amounts on deposit in the REO Account with respect to an REO
      Property are insufficient for the purposes set forth in clauses (i) through
      (iii) above with respect to such REO Property, the Servicer shall advance from
      its own funds such amount as is necessary for such purposes if, but only if,
      the
      Servicer would make such advances if the Servicer owned the REO Property and
      if
      in the Servicer’s judgment, the payment of such amounts will be recoverable from
      the proceeds of the REO Property.

     

    Notwithstanding
      the foregoing, following the date of acquisition by the Trust Fund, neither
      the
      Servicer nor the Trustee shall knowingly:

     

    (i) authorize
      the Trust Fund to enter into, renew or extend any New Lease with respect to
      any
      REO Property;

     

    (ii) authorize
      any amount to be received or accrued under any New Lease other than amounts
      that
      will constitute Rents from Real Property;

     

    (iii) authorize
      any construction on any REO Property; or

     

    (iv) authorize
      any Person to Directly Operate any REO Property on any date more than 90 days
      after its date of acquisition by the Trust Fund.

     

    (d)  In
      addition to the withdrawals permitted under Section 3.25(d), the Servicer may
      from time to time make withdrawals from the REO Account for any REO Property:
      (i) to pay itself or any Sub-Servicer unpaid Servicing Fees in respect of the
      related Mortgage Loan; and (ii) to reimburse itself or any Sub-Servicer for
      unreimbursed Servicing Advances and Advances made in respect of such REO
      Property or the related Mortgage Loan. On the Servicer Remittance Date, the
      Servicer shall withdraw from each REO Account maintained by it and deposit
      into
      the Distribution Account in accordance with Section 3.10(d)(ii), for
      distribution on the related Distribution Date in accordance with Section 4.01,
      any proceeds from the related REO Property received during the prior calendar
      month, net of any withdrawals made pursuant to Section 3.25(c) or this Section
      3.25(d).

     

    (e)  [Reserved].

     

    (f)  The
      proceeds from the REO Disposition, net of any amount required by law to be
      remitted to the Mortgagor under the related Mortgage Loan and net of any payment
      or reimbursement to the Servicer or any Sub-Servicer as provided above, shall
      be
      deposited in the Distribution Account in accordance with Section 3.10(d)(ii)
      on
      the Servicer Remittance Date in the month following the receipt thereof for
      distribution on the related Distribution Date in accordance with Section 4.01.
      Any REO Disposition shall be for cash only (unless changes in the REMIC
      Provisions made subsequent to the Startup Day allow a sale for other
      consideration).

     

    (g)  The
      Servicer shall file information returns with respect to the receipt of mortgage
      interest received in a trade or business, reports of foreclosures and
      abandonments of any Mortgaged Property and cancellation of indebtedness income
      with respect to any Mortgaged Property as required by Sections 6050H, 6050J
      and
      6050P of the Code, respectively. Such reports shall be in form and substance
      sufficient to meet the reporting requirements imposed by such Sections 6050H,
      6050J and 6050P of the Code.

     

    Section
      3.26.  Obligations
      of the Servicer in Respect of Prepayment Interest Shortfalls.

     

    Not
      later
      than 3:00 p.m. New York time on each Servicer Remittance Date, the Servicer
      shall remit from its own funds to the Distribution Account an amount
      (“Compensating Interest”) equal to the lesser of (A) the aggregate of the
      Prepayment Interest Shortfalls for the related Distribution Date and (B)
      one-half of its aggregate Servicing Fee received in the related Remittance
      Period. The Servicer shall not have the right to reimbursement for any amounts
      remitted to the Trustee in respect of Compensating Interest. Such amounts so
      remitted shall be included in the Available Funds and distributed therewith
      on
      the next Distribution Date. The Servicer shall not be obligated to pay any
      compensating amounts with respect to Relief Act Interest
      Shortfalls.

     

    Section
      3.27.  Interest
      Coverage Account.

     

    (a)  The
      Trustee shall establish and maintain a segregated non-interest bearing trust
      account that is an Eligible Account, which shall be titled “Interest Coverage
      Account, Deutsche Bank National Trust Company, as Trustee, in trust for
      registered Holders of IndyMac Residential Mortgage-Backed Trust Certificates,
      Series 2006-L4” (the “Interest Coverage Account”). The Trustee shall, promptly
      upon receipt, deposit in the Interest Coverage Account and retain therein the
      amount remitted on the Closing Date to the Trustee by the Depositor. Funds
      deposited in the Interest Coverage Account shall be held in trust by the Trustee
      for the Certificateholders and the Certificate Insurer for the uses and purposes
      set forth herein. The Interest Coverage Account shall not be an asset of any
      Trust REMIC.

     

    (b)  Amounts
      on deposit in the Interest Coverage Account shall remain
      uninvested.

     

    (c)  On
      each
      Distribution Date the Trustee shall withdraw from the Interest Coverage Account
      and deposit in the Distribution Account an amount equal to 30 days’ interest on
      the excess, if any, of the Original Pre-Funded Amount over the aggregate Stated
      Principal Balance of related Subsequent Mortgage Loans that both (i) had a
      Due
      Date during the Due Period relating to such Distribution Date and (ii) had
      a
      Subsequent Cut-off Date prior to the first day of the month in which such
      Distribution Date occurs, at a per annum rate equal to 6.96669%. Such withdrawal
      and deposit shall be treated as a contribution of cash by the Servicer to REMIC
      1. On the Distribution Date in February 2007, the Trustee shall withdraw from
      the Interest Coverage Account and remit to the Depositor or its designee an
      amount equal to the excess, if any, of the amount remaining in the Interest
      Coverage Account over the amount that would be required to be withdrawn
      therefrom (assuming sufficient funds therein) pursuant to the second preceding
      sentence, if any.

     

    (d)  Upon
      the
      earlier of (i) the Distribution Date immediately following the end of the
      Funding Period, (ii) the reduction of the aggregate Class Certificate Balance
      of
      the Certificates to zero or (iii) the termination of this Agreement, any amount
      remaining on deposit in the Interest Coverage Account after distributions
      pursuant to paragraph (c) above shall be withdrawn by the Trustee and paid
      to
      the Depositor or its designee.

     

    Section
      3.28.  Obligations
      of the Servicer in Respect of Mortgage Rates and Monthly
      Payments.

     

    In
      the
      event that a shortfall in any collection on or liability with respect to the
      Mortgage Loans in the aggregate results from or is attributable to adjustments
      to Mortgage Rates, Monthly Payments or Stated Principal Balances that were
      made
      by the Servicer in a manner not consistent with the terms of the related
      Mortgage Note and this Agreement, the Servicer, upon discovery or receipt of
      notice thereof, immediately shall deposit in the Certificate Account from its
      own funds the amount of any such shortfall and shall indemnify and hold harmless
      the Trust Fund, the Trustee, the Depositor, the Certificate Insurer and any
      successor Servicer in respect of any such liability. Such indemnities shall
      survive the termination or discharge of this Agreement. Notwithstanding the
      foregoing, this Section 3.26 shall not limit the ability of the Servicer to
      seek
      recovery of any such amounts from the related Mortgagor under the terms of
      the
      related Mortgage Note, as permitted by law.

     

    Section
      3.29.  Excess
      Reserve Fund Account.

     

    (a)  No
      later
      than the Closing Date, the Trustee shall establish and maintain with itself
      a
      separate, segregated trust account titled, “Excess Reserve Fund Account,
      Deutsche Bank National Trust Company, as Trustee, in trust for registered
      Holders of IndyMac Residential Mortgage-Backed Trust Certificates, Series
      2006-L4,”
and
      into which the Initial Deposit will be deposited on the Closing Date.
      The
      Excess Reserve Fund Account shall be an Eligible Account. 

     

    On
      each
      Distribution Date as to which there is a Net WAC Rate Carryover Amount that
      will
      remain unpaid to the Holders of the Class A Certificates or the Subordinated
      Certificates, the Trustee has been directed by the Class C Certificateholders
      to, and therefore will, deposit into the Excess Reserve Fund Account the amounts
      described in Section 4.01(d)(vi), rather than distributing such amounts to
      the
      Class C Certificateholders. On each such Distribution Date, the Trustee shall
      hold all such amounts for the benefit of the Holders of the Class A Certificates
      and the Subordinated Certificates, and will distribute such amounts to the
      Holders of the Class A Certificates and the Subordinated Certificates in the
      amounts and priorities set forth in Section 4.01(e). After the first
      Distribution Date, if no unpaid Net WAC Rate Carryover Amounts are payable
      from
      the Excess Reserve Fund Account on a Distribution Date, the Trustee shall
      deposit into the Excess Reserve Fund Account on behalf of the Class C
      Certificateholders, from amounts otherwise distributable to the Class C
      Certificateholders, an amount such that when added to other amounts already
      on
      deposit in the Excess Reserve Fund Account, the aggregate amount on deposit
      therein is equal to zero.

     

    It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Excess Reserve Fund Account be disregarded
      as
      an entity separate from the Holder of the Class C Certificates unless and until
      the date when either (a) there is more than one Class C Certificateholder or
      (b)
      any Class of Certificates in addition to the Class C Certificates is
      recharacterized as an equity interest in the Excess Reserve Fund Account for
      federal income tax purposes, in which case it is the intention of the parties
      hereto that, for federal and state income and state and local franchise tax
      purposes, the Excess Reserve Fund Account be treated as a partnership. All
      amounts deposited into the Excess Reserve Fund Account shall be treated as
      amounts distributed by REMIC 2 to the Holders of the Class C Certificates.
      The
      Excess Reserve Fund Account will be an “outside reserve fund” within the meaning
      of Treasury regulation Section 1.860G-2(h). Upon the termination of the Trust
      Fund, or the payment in full of the Class A Certificates and the Subordinated
      Certificates, all amounts remaining on deposit in the Excess Reserve Fund
      Account will be released by the Trust Fund and distributed to the Class C
      Certificateholders or their designees. The Excess Reserve Fund Account will
      be
      part of the Trust Fund but not part of any REMIC, and any payments to the
      Holders of the Class A Certificates or the Subordinated Certificates of Net
      WAC
      Rate Carryover Amounts from the Excess Reserve Fund Account will not be payments
      with respect to a “regular interest” in a REMIC within the meaning of Code
      Section 860(G)(a)(1).

     

    By
      accepting a Class C Certificate, each Class C Certificateholder hereby agrees
      to
      direct the Trustee, and the Trustee hereby is directed, to deposit into the
      Excess Reserve Fund Account the amounts described above on each Distribution
      Date as to which there is any Net WAC Rate Carryover Amount that will remain
      unpaid to the Holders of the Class A Certificates or the Subordinated
      Certificates, rather than distributing such amounts to the Class C
      Certificateholders. By accepting a Class C Certificate, each Class C
      Certificateholder further agrees that such direction is given for good and
      valuable consideration, the receipt and sufficiency of which are acknowledged
      by
      such acceptance.

     

    The
      Servicer shall direct any depository institution maintaining the Excess Reserve
      Fund Account to invest the funds in such account in one or more Permitted
      Investments bearing interest or sold at a discount, and maturing, unless payable
      on demand, (i) no later than the Business Day immediately preceding the date
      on
      which such funds are required to be withdrawn from such account pursuant to
      this
      Agreement, if a Person other than the Trustee or an Affiliate manages or advises
      such investment, and (ii) no later than the date on which such funds are
      required to be withdrawn from such account pursuant to this Agreement, if the
      Trustee or an Affiliate manages or advises such investment. If no investment
      direction of the Servicer with respect to the Excess Reserve Fund Account is
      received by the Trustee, the Trustee shall invest the funds in Deutsche Bank
      Institutional Cash Management Fund No. 541. The Trustee shall not be responsible
      for any losses incurred with respect to any investment of funds pursuant to
      this
      Section 3.27(a), except to the extent that the Trustee is the obligor on such
      Permitted Investment. All income realized from investment of funds in the Excess
      Reserve Fund Account shall be distributed to the Holders of the Class C
      Certificates.

     

    For
      federal tax return and information reporting, the right of the Holders of the
      Class A Certificates and the Subordinated Certificates to receive payments
      from
      the Excess Reserve Fund Account in respect of any unpaid Net WAC Rate Carryover
      Amount shall be assigned a value of $0, which value the Trustee shall identify
      to any Certificateholder that requests such information by contacting the
      Trustee in writing.

     

    Section
      3.30.  Prepayment
      Charges

     

    (a)               
      The
      Servicer shall not waive any part of any Prepayment Charge unless the waiver
      relates to a default or a reasonably foreseeable default, the collection of
      any
      Prepayment Charge would violate any relevant law or regulation or the waiving
      of
      the Prepayment Charge would otherwise benefit the Trust Fund and it is expected
      that the waiver would maximize recovery of total proceeds taking into account
      the value of the Prepayment Charge and related Mortgage Loan and doing so is
      standard and customary in servicing similar Mortgage Loans (including any waiver
      of a Prepayment Charge in connection with a refinancing of a Mortgage Loan
      that
      is related to a default or a reasonably foreseeable default). The Servicer
      shall
      not waive a Prepayment Charge in connection with a refinancing of a Mortgage
      Loan that is not related to a default or a reasonably foreseeable
      default.

     

    (b)              
      The
      Seller represents and warrants to the Depositor and the Trustee, as of the
      Closing Date, that the information in the Prepayment Charge Schedule (including
      the attached prepayment charge summary) is complete and accurate in all material
      respects at the dates as of which the information is furnished and each
      Prepayment Charge is permissible and enforceable in accordance with its terms
      under applicable state law.

     

    (c)               
      Upon
      discovery by the Seller or a Responsible Officer of the Trustee of a breach
      of
      the foregoing clause (b) that materially and adversely affects right of the
      Holders of the Class P Certificate to any Prepayment Charge, the party
      discovering the breach shall give prompt written notice to the other parties.
      Within sixty (60) days of the earlier of discovery by the Servicer or receipt
      of
      notice by the Servicer of breach, the Servicer shall cure the breach in all
      material respects or shall pay into the Servicing Account the amount of the
      scheduled Prepayment Charge, less any amount previously collected and paid
      by
      the Servicer into the Servicing Account. If the covenant made by the Servicer
      in
      clause (a) above is breached, the Servicer must pay into the Servicing Account
      the amount of the waived Prepayment Charge.

     

    

     

    ARTICLE
      IV

     

    FLOW
      OF
      FUNDS

     

    Section
      4.01.  Distributions.

     

    (a)  On
      each
      Distribution Date, prior to making any distributions on the Certificates, the
      Trustee shall withdraw from the Distribution Account, from amounts on deposit
      therein, amounts representing the Trustee Fee payable for such Distribution
      Date
      and any and all expenses owing to it under the terms of this Agreement, which
      the Trustee shall pay to itself. Following such payments, on each Distribution
      Date the Trustee shall withdraw from the Distribution Account that portion
      of
      Available Funds for such Distribution Date, consisting of the Interest
      Remittance Amount for such Distribution Date, and shall make the following
      disbursements and transfers in the order of priority described below, in each
      case to the extent of the Interest Remittance Amount remaining for such
      Distribution Date:

     

    (i)  to
      the
      Certificate Insurer, the amount owing under the Insurance Agreement for the
      Premium payable in respect of the Insured Certificates;

     

    (ii)  concurrently,
      to each class of the Senior Certificates on a pro
      rata
      basis,
      based on the entitlement on each such class, the Accrued Certificate Interest
      related to such
      Class for such Distribution Date;

     

    (iii)  to
      the
      Class A Certificates, the Unpaid Interest Amount for such
      Class for such Distribution Date;

     

    (iv)  to
      the
      Certificate Insurer, the amount owing under the Insurance Agreement for
      reimbursement for prior claims paid under the Policy and any other amounts
      owing
      to the Certificate Insurer under the Insurance Agreement;

     

    (v)  to
      the
      Holders of the Class M Certificates, the Accrued Certificate Interest for such
      Class for such Distribution Date; and

     

    (vi)  to
      the
      Holders of the Class B Certificates, the Accrued Certificate Interest for such
      Class for such Distribution Date.

     

    (b)  On
      each
      Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
      Event
      is in effect, the Trustee shall withdraw from the Distribution Account an amount
      equal to the Principal Distribution Amount and distribute to the
      Certificateholders the following amounts, in the following order of priority,
      in
      each case to the extent of the Principal Distribution Amount remaining for
      such
      Distribution Date:

     

    (i)  to
      the
      Holders of the Class A Certificates, until the Certificate Principal Balance
      of
      such Class has been reduced to zero;

     

    (ii)  to
      the
      Certificate Insurer, the amount owing under the Insurance Agreement for
      reimbursement for prior claims paid under the Policy and any other amounts
      owing
      to the Certificate Insurer under the Insurance Agreement, to the extent not
      paid
      pursuant to clause Section 4.01(a) above and to the extent of the Principal
      Distribution Amount remaining after the distribution in Section 4.01(b)(i)
      above;

     

    (iii)  to
      the
      Holders of the Class M Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero;

     

    (iv)  to
      the
      Holders of the Class B Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero.

     

    (c)  On
      each
      Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
      Event is not in effect, the Trustee shall withdraw from the Distribution Account
      an amount equal to the Principal Distribution Amount and distribute to the
      Certificateholders the following amounts, in the following order of priority,
      in
      each case to the extent of the Principal Distribution Amount remaining for
      such
      Distribution Date:

     

    (i)  to
      the
      Holders of the Class A Certificates, the Class A Principal Distribution Amount
      for such Distribution Date, until the aggregate Certificate Principal Balance
      of
      such Class has been reduced to zero;

     

    (ii)  to
      the
      Certificate Insurer, the amount owing to the Certificate Insurer under the
      Insurance Agreement for reimbursement for prior claims paid under the Policy
      and
      any other amounts owing to the Certificate Insurer under the Insurance
      Agreement, to the extent not paid pursuant to Section 4.01(a) above and to
      the
      extent of the Principal Distribution Amount remaining after the distribution
      in
      Section 4.01(c)(i) above;

     

    (iii)  to
      the
      Holders of the Class M Certificates, the Class M Principal Distribution Amount
      for such Distribution Date, until the Certificate Principal Balance thereof
      has
      been reduced to zero;

     

    (iv)  to
      the
      Holders of the Class B Certificates, the Class B Principal Distribution Amount
      for such Distribution Date, until the Certificate Principal Balance thereof
      has
      been reduced to zero.

     

    (d)  On
      each
      Distribution Date, the Total Monthly Excess Spread shall be distributed as
      follows:

     

    (i)  to
      the
      Holders of the Certificates then entitled to distributions of principal, the
      Extra Principal Distribution Amount payable to such Holders as part of the
      Principal Distribution Amount to the extent of their respective entitlements
      to
      principal as set forth in Section 4.01(b) and Section 4.01(c)
      above;

     

    (ii)  to
      the
      Holders of the Class M Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount for such Distribution Date and such Class of
      Certificates;

     

    (iii)  to
      the
      Holders of the Class M Certificates, in an amount equal to the Allocated
      Realized Loss Amount for such Distribution Date and such Class of
      Certificates;

     

    (iv)  to
      the
      Holders of the Class B Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount for such Distribution Date and such Class of
      Certificates;

     

    (v)  to
      the
      Holders of the Class B Certificates, in an amount equal to the Allocated
      Realized Loss Amount for such Distribution Date and such Class of
      Certificates;

     

    (vi)  to
      the
      Excess Reserve Fund Account, for distribution therefrom to the Holders of the
      Class A Certificates and the Subordinated Certificates, the amount of any Net
      WAC Rate Carryover Amounts for such Distribution Date, to the extent of their
      respective entitlements as set forth in Section 4.01(e);

     

    (vii)  [reserved];

     

    (viii)  to
      the
      Holders of the Class C Certificates, (a) the Accrued Certificate Interest for
      such Class and any Excess Overcollateralization Amount for such Distribution
      Date and (b) on any Distribution Date on which the Certificate Principal
      Balances of the Class A Certificates and the Subordinated Certificates have
      been
      reduced to zero, any remaining Available Funds; 

     

    (ix)  if
      such
      Distribution Date follows the Prepayment Period during which occurs the latest
      date on which a Prepayment Charge may be required to be paid in respect of
      any
      Mortgage Loans, to the Holders of the Class P Certificates, in reduction of
      the
      Certificate Principal Balance thereof, until the Certificate Principal Balance
      thereof is reduced to zero; and

     

    (x)  any
      remaining amounts to the Holders of the Class R Certificates (in respect of
      the
      Class R-2 Interest).

     

    On
      each
      Distribution Date, an amount equal to all Prepayment Charges received during
      the
      related Prepayment Period together with the amounts paid in respect thereof
      pursuant to Section 3.30 shall be distributed to the Holders of the Class P
      Certificates. The distribution of the foregoing amounts to the Holders of the
      Class P Certificates shall not reduce the Class Certificate Balance
      thereof.

     

    On
      each
      Distribution Date, following the foregoing distributions, an amount equal to
      the
      amount of Subsequent Recoveries deposited into the Certificate Account pursuant
      to Section 3.05 and included in the Available Funds for such Distribution Date
      shall be applied to increase the Certificate Principal Balance of the Class
      of
      Subordinated Certificates with the Highest Priority up to the extent of such
      Realized Losses previously allocated to that Class of Certificates pursuant
      to
      Section 4.04. An amount equal to the amount of any remaining Subsequent
      Recoveries shall be applied to increase the Certificate Principal Balance of
      the
      Class of Certificates with the next Highest Priority, up to the amount of such
      Realized Losses previously allocated to that Class of Certificates pursuant
      to
      Section 4.04, and so on. Holders of such Certificates will not be entitled
      to
      any distribution in respect of interest on the amount of such increases for
      any
      Accrual Period preceding the Distribution Date on which such increase occurs.
      Any such increases shall be applied to the Certificate Principal Balance of
      each
      Certificate of such Class in accordance with its respective Percentage
      Interest.

     

    (e)  On
      each
      Distribution Date, following the distributions made pursuant to Section 4.01(a),
      Section 4.01(b) or Section 4.01(c), as applicable, and Section 4.01(d), the
      Trustee shall withdraw from the Excess Reserve Fund Account the lesser of (A)
      the amount on deposit therein and (B) the aggregate of any Net WAC Rate
      Carryover Amounts for such Distribution Date and shall distribute the amount
      so
      withdrawn to the Holders of the Class A Certificates and the Subordinated
      Certificates in the following order of priority, in each case to the extent
      of
      the amount withdrawn:

     

    From
      amounts on deposit in the Excess Reserve Fund Account as follows:

     

    (i)  to
      the
      Class A Certificates, the Net WAC Rate Carryover Amount for each such Class
      and
      each such Distribution Date; and 

     

    (ii)  sequentially,
      to the Class M and Class B Certificates, in that order, the Net WAC Rate
      Carryover Amount for each such Class and each such Distribution
      Date.

     

    (f)  All
      distributions made with respect to the Certificates of each Class on each
      Distribution Date shall be allocated pro
      rata
      among
      the outstanding Certificates of such Class based on their respective Percentage
      Interests. Payments in respect of the Certificates of each Class on each
      Distribution Date will be made to the Holders of record on the related Record
      Date (except as otherwise provided in this Section 4.01(f), in Section 4.01(h)
      or in Section 10.01, respecting the final distribution on the Certificates),
      based on the aggregate Percentage Interest represented by their respective
      Certificates in such Class, and shall be made by wire transfer of immediately
      available funds to the account of any such Holder at a bank or other entity
      having appropriate facilities therefor, or otherwise by check mailed by first
      class mail to the address of such Holder appearing in the Certificate Register,
      if such Holder shall have so notified the Trustee in writing at least five
      Business Days prior to the Record Date immediately prior to such Distribution
      Date. The final distribution on each Certificate will be made in like manner,
      but only upon presentment and surrender of such Certificate at the Corporate
      Trust Office of the Trustee or such other location specified in the notice
      to
      Certificateholders of such final distribution.

     

    (g)  The
      rights of the Certificateholders to receive distributions in respect of the
      Certificates, and all interests of the Certificateholders in such distributions,
      shall be as set forth in this Agreement. In no event shall the Holders of any
      Class of Certificates, the Trustee, the Depositor or the Servicer in any way
      be
      responsible or liable to the Holders of any other Class of Certificates in
      respect of amounts properly previously distributed on the
      Certificates.

     

    Except
      as
      otherwise provided in Section 10.01, whenever the Trustee expects that the
      final
      distribution with respect to any Class of Certificates will be made on the
      next
      Distribution Date, the Trustee shall, no later than four days prior to the
      related Distribution Date, send, by overnight delivery or by registered mail,
      to
      each Holder on such date of such Class of Certificates and the Certificate
      Insurer a notice to the effect that:

     

    (i)  the
      Trustee expects that the final distribution with respect to the Certificates
      of
      such Class will be made on such Distribution Date but only upon presentation
      and
      surrender of such Certificates at the office of the Trustee therein specified,
      and

     

    (ii)  no
      interest shall accrue on such Certificates from and after the end of the
      calendar month preceding such final Distribution Date.

     

    Any
      funds
      not distributed to any Holder or Holders of any Class of Certificates on such
      final Distribution Date because of the failure of such Holder or Holders to
      tender their Certificates shall, on such date, be set aside and held in trust
      by
      the Trustee and credited to the account of the appropriate non-tendering Holder
      or Holders. If any Certificates as to which notice has been given pursuant
      to
      this Section 4.01(h) shall not have been surrendered for cancellation within
      six
      months after the time specified in such notice, the Trustee shall mail a second
      notice to the remaining non-tendering Certificateholders to surrender their
      Certificates for cancellation in order to receive the final distribution with
      respect thereto. If within one year after the second notice all such
      Certificates shall not have been surrendered for cancellation, the Trustee
      shall, directly or through an agent, mail a final notice to the remaining
      non-tendering Certificateholders concerning surrender of their Certificates
      but
      shall continue to hold any remaining funds for the benefit of non-tendering
      Certificateholders. The costs and expenses of maintaining the funds in trust
      and
      of contacting such Certificateholders shall be paid out of the assets remaining
      in such trust funds. If within one year after the final notice any such
      Certificates shall not have been surrendered for cancellation, the Trustee
      shall
      pay to Lehman Brothers Inc. all such amounts, and Lehman Brothers Inc. shall
      be
      entitled to all unclaimed funds and other assets which remain subject hereto,
      and the Trustee upon transfer of such funds shall be discharged of any
      responsibility for such funds, and the Certificateholders shall look only to
      Lehman Brothers Inc. for payment. No interest shall accrue or be payable to
      any
      Certificateholder on any amount held in trust by the Trustee as a result of
      such
      Certificateholder’s failure to surrender its Certificate(s) for final payment
      thereof in accordance with this Section 4.01(h). Any such amounts held in trust
      by the Trustee shall be held in an Eligible Account and shall be held
      uninvested.

     

    Section
      4.02.  Statements.

     

    (a)  On
      each
      Distribution Date, based, as applicable, on information provided to it by the
      Servicer, the Trustee shall prepare and make available to each Holder of the
      Regular Certificates, the Servicer, the Certificate Insurer and the Rating
      Agencies, a statement as to the distributions made on such Distribution
      Date:

     

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

     

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

     

    (iii)  reserved;

     

    (iv)  the
      aggregate amount of servicing compensation received by the Servicer with respect
      to the related Remittance Period (separately identifying Servicing Fees and
      other servicing compensation) and such other customary information as the
      Trustee reasonably deems necessary or desirable, or which a Certificateholder
      reasonably requests, to enable Certificateholders to prepare their tax
      returns;

     

    (v)  the
      aggregate amount of Advances for the related Remittance Period;

     

    (vi)  the
      Pool
      Balance at the Close of Business at the end of the related Remittance
      Period;

     

    (vii)  the
      number, aggregate Stated Principal Balance, weighted average remaining term
      to
      maturity and weighted average Mortgage Rate of the Mortgage Loans as of the
      related Determination Date;

     

    (viii)  the
      number and aggregate unpaid Stated Principal Balance of Mortgage Loans (a)
      that
      were (A) Delinquent (exclusive of Mortgage Loans in bankruptcy or foreclosure
      and REO Properties) (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more
      days, (B) as to which foreclosure proceedings have been commenced and Delinquent
      (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more days, (C) in bankruptcy
      and Delinquent (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more days,
      in
      each preceding case as of the Close of Business on the last day of the calendar
      month preceding such Distribution Date, and (b) the related Mortgaged Properties
      of which are REO Properties;

     

    (ix)  the
      total
      number and cumulative Stated Principal Balance of all REO Properties as of
      the
      Close of Business of the last day of the preceding Prepayment
      Period;

     

    (x)  the
      aggregate amount of Principal Prepayments made during the related Prepayment
      Period;

     

    (xi)  the
      aggregate amount of Realized Losses incurred during the related Prepayment
      Period and the cumulative amount of Realized Losses;

     

    (xii)  the
      aggregate amount of Subsequent Recoveries received during the related Prepayment
      Period and the cumulative amount of Subsequent Recoveries received since the
      Closing Date

     

    (xiii)  the
      aggregate Certificate Principal Balance of each Class of Regular Certificates
      after giving effect to the distributions, and allocations of Realized Losses,
      made on such Distribution Date separately identifying any reduction thereof
      due
      to allocations of Realized Losses (in the case of the Subordinated Certificates
      and the Class C Certificates);

     

    (xiv)  the
      Certificate Factor for each Class of the Regular Certificates applicable to
      such
      Distribution Date;

     

    (xv)  the
      Accrued Certificate Interest for the Senior Certificates, the Subordinated
      Certificates and the Class C Certificates for such Distribution Date and Unpaid
      Interest Shortfall Amount, if any, with respect to the Class A Certificates
      and
      the Subordinated Certificates for such Distribution Date;

     

    (xvi)  the
      aggregate amount of any Net Prepayment Interest Shortfalls for such Distribution
      Date;

     

    (xvii)  the
      aggregate amount of any Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (xviii)  the
      Overcollateralized Amount and the Excess Overcollateralization Amount for such
      Distribution Date;

     

    (xix)  the
      Credit Enhancement Percentage for such Distribution Date;

     

    (xx)  the
      Net
      WAC Rate Carryover Amount for the Class A Certificates and the Subordinated
      Certificates, if any, for such Distribution Date and the amount remaining unpaid
      after payments from the Excess Reserve Fund Account are made pursuant to Section
      4.01(e);

     

    (xxi)  when
      the
      Stepdown Date has occurred and when a Trigger Event is in effect;

     

    (xxii)  the
      deposits to and withdrawals from the Excess Reserve Fund Account on such
      Distribution Date;

     

    (xxiii)  the
      Available Funds for such Distribution Date;

     

    (xxiv)  the
      respective Pass-Through Rates applicable to the Senior Certificates, the
      Subordinated Certificates and the Class C Certificates for such Distribution
      Date and the respective Pass-Through Rates applicable to the Senior Certificates
      and the Subordinated Certificates for the immediately succeeding Distribution
      Date;

     

    (xxv)  the
      aggregate Notional Amount of the Class C Certificates and Class IO Certificates,
      in each case after giving effect the reductions thereof to occur on such
      Distribution Date; 

     

    (xxvi)  the
      amount of the Reimbursement Amount for such Distribution Date and the amount
      received by the Certificate Insurer in respect thereof on such Distribution
      Date; 

     

    (xxvii)  
      the
      amount on deposit in the Interest Coverage Account; and

     

    (xxviii)  for
      the
      distribution occurring on the Distribution Date immediately following the end
      of
      the Funding Period, the balance on deposit in the Pre-Funding Account that
      has
      not been used to purchase Subsequent Mortgage Loans and that is being
      distributed to the Certificateholders on such Distribution Date.

     

    The
      Trustee will make such statement (and, at its option, any additional files
      containing the same information in an alternative format) available each month
      to Certificateholders, the Servicer, the Trustee, the Certificate Insurer and
      the Rating Agencies via the Trustee’s internet website. 

     

    The
      Trustee’s responsibility for disbursing the above information to the
      Certificateholders is limited to the availability, timeliness, and accuracy
      of
      the information derived from the Servicer. 

     

    By
      each
      Determination Date, the Servicer shall provide to the Trustee in electronic
      form
      the information needed to determine the distributions to be made pursuant to
      Section 4.01 and any other information on which the Servicer and the Trustee
      mutually agree.

     

    The
      Trustee’s internet website shall initially be located at https://www.tss.db.com/invr.
      Assistance in using the website can be obtained by calling the Trustee’s
      customer service desk at 1-800-735-7777. Parties that are unable to use the
      above distribution options are entitled to have a paper copy mailed to them
      via
      first class mail by calling the customer service desk and indicating such.
      The
      Trustee shall have the right to change the way such statements are distributed
      in order to make such distribution more convenient and/or more accessible to
      the
      above parties and the Trustee shall provide timely and adequate notification
      to
      all above parties regarding any such changes.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed in a separate section of the report as a dollar
      amount for each hypothetical Certificate having an initial Certificate Principal
      Balance or Notional Amount (in the case of the Class C Certificates) equal
      to
      $1,000.

     

    (b)  Within
      a
      reasonable period of time after the end of each calendar year, the Trustee
      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) and (ii) above, aggregated for such calendar year or applicable portion
      thereof during which such Person was a Certificateholder. Such obligation of
      the
      Trustee shall be deemed to have been satisfied to the extent that substantially
      comparable information shall be prepared and furnished by the Trustee to
      Certificateholders pursuant to any requirements of the Code as are in force
      from
      time to time.

     

    On
      each
      Distribution Date, the Trustee shall make available to the Class R
      Certificateholders a copy of the reports forwarded to the Regular
      Certificateholders in respect of such Distribution Date with such other
      information as the Trustee deems necessary or appropriate.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Trustee
      shall
      deliver to each Person who at any time during the calendar year was a Class
      R
      Certificateholder, if requested in writing by such Person, such information
      as
      is reasonably necessary to provide to such Person a statement containing the
      information provided pursuant to the previous paragraph aggregated for such
      calendar year or applicable portion thereof during which such Person was a
      Class
      R Certificateholder. Such obligation of the Trustee shall be deemed to have
      been
      satisfied to the extent that substantially comparable information shall be
      prepared and furnished to Certificateholders by the Trustee pursuant to any
      requirements of the Code as from time to time in force.

     

    The
      Trustee shall maintain at its Corporate Trust Office and shall make available
      free of charge during normal business hours for review by any Certificateholder,
      Certificate Owner or any Person identified to the Trustee as a prospective
      transferee of a Certificate, originals or copies of the following items: (i)
      the
      private placement memorandum or other disclosure document relating to such
      Certificates, if any, in the form most recently provided to the Trustee; and
      (ii) in all cases, (A) this Agreement and any amendments hereof entered into
      pursuant to Section 11.01, (B) all monthly statements required to be delivered
      to Certificateholders of the relevant Class pursuant to this Section 4.02 since
      the Closing Date, and all other notices, reports, statements and written
      communications delivered to the Certificateholders of the relevant Class
      pursuant to this Agreement since the Closing Date, (C) all certifications
      delivered by a Responsible Officer of the Trustee since the Closing Date
      pursuant to Section 9.01(h) and (D) any and all Officers’ Certificates delivered
      to the Trustee by the Servicer since the Closing Date to evidence the Servicer’s
      determination that any Advance or Servicing Advance was, or if made, would
      be a
      Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively. Copies
      and mailing of any and all of the foregoing items will be available from the
      Trustee upon request at the expense of the person requesting the
      same.

     

    Section
      4.03.  Remittance
      Reports; Advances.

     

    (a)  By
      each
      Determination Date, the Servicer shall provide to the Trustee and the
      Certificate Insurer in electronic form the information needed to determine
      the
      distributions to be made pursuant to Section 4.01 and any other information
      on
      which the Servicer and the Trustee mutually agree. On or before the fifth
      Business Day following the end of each Prepayment Period (but in no event later
      than the third Business Day prior to the related Distribution Date), the
      Servicer shall deliver to the Trustee and the Certificate Insurer (which
      delivery may be by electronic data transmission) a report in substantially
      the
      form agreed to by the Servicer and the Trustee. The Trustee shall not be
      responsible to recompute, recalculate or verify any information provided to
      it
      by the Servicer.

     

    (b)  The
      amount of Advances to be made by the Servicer for any Distribution Date shall
      equal, subject to Section 4.03(d), the sum of (i) the aggregate amount of
      Monthly Payments (net of the related Servicing Fee), due during the related
      Remittance Period in respect of the Mortgage Loans, which Monthly Payments
      were
      delinquent on a contractual basis as of the Close of Business on the related
      Determination Date and (ii) with respect to each REO Property, which REO
      Property was acquired during or prior to the related Remittance Period and
      as to
      which REO Property an REO Disposition did not occur during the related
      Remittance Period, an amount equal to the excess, if any, of the REO Imputed
      Interest on such REO Property for the most recently ended calendar month, over
      the net income from such REO Property transferred to the Distribution Account
      pursuant to Section 3.25 for distribution on such Distribution
      Date.

     

    On
      or
      before 3:00 p.m. New York time on the Servicer Remittance Date, the Servicer
      shall remit in immediately available funds to the Trustee for deposit in the
      Distribution Account an amount equal to the aggregate amount of Advances, if
      any, to be made in respect of the Mortgage Loans and REO Properties for the
      related Distribution Date either (i) from its own funds or (ii) from the
      Certificate Account, to the extent of funds held therein for future distribution
      (in which case it will cause to be made an appropriate entry in the records
      of
      Certificate Account that amounts held for future distribution have been, as
      permitted by this Section 4.03, used by the Servicer in discharge of any such
      Advance) or (iii) in the form of any combination of (i) and (ii) aggregating
      the
      total amount of Advances to be made by the Servicer with respect to the Mortgage
      Loans and REO Properties. Any amounts held for future distribution used by
      the
      Servicer to make an Advance as permitted in the preceding sentence shall be
      appropriately reflected in the Servicer’s records and replaced by the Servicer
      by deposit in the Certificate Account on or before any future Servicer
      Remittance Date to the extent that the Available Funds for the related
      Distribution Date (determined without regard to Advances to be made on the
      Servicer Remittance Date) shall be less than the total amount that would be
      distributed to the Certificateholders pursuant to Section 4.01 on such
      Distribution Date if such amounts held for future distributions had not been
      so
      used to make Advances. The Trustee will provide notice to the Servicer by
      telecopy by the Close of Business on any Servicer Remittance Date in the event
      that the amount remitted by the Servicer to the Trustee on such date is less
      than the Advances required to be made by the Servicer for the related
      Distribution Date, as set forth in the related Remittance Report.

     

    (c)  The
      obligation of the Servicer to make such Advances is mandatory, notwithstanding
      any other provision of this Agreement but subject to (d) below, and, with
      respect to any Mortgage Loan, shall continue until a Final Recovery
      Determination in connection therewith or the removal thereof from the Trust
      Fund
      pursuant to any applicable provisions of this Agreement, except as otherwise
      provided in this Section.

     

    (d)  Notwithstanding
      anything herein to the contrary, no Advance or Servicing Advance shall be
      required to be made hereunder by the Servicer if such Advance or Servicing
      Advance would, if made, constitute a Nonrecoverable Advance. The determination
      by the Servicer that it has made a Nonrecoverable Advance or that any proposed
      Advance or Servicing Advance, if made, would constitute a Nonrecoverable
      Advance, shall be evidenced by an Officers’ Certificate of the Servicer
      delivered to the Depositor, the Certificate Insurer and the
      Trustee.

     

    Section
      4.04.  Distributions
      on the REMIC Regular Interests. 

     

    On
      each
      Distribution Date, the Trustee shall cause the Available Funds from the
      Distribution Account to make the following disbursements and transfers, in
      the
      following order of priority, to be distributed by REMIC 1 to REMIC 2 on account
      of the REMIC 1 Regular Interests or withdrawn from the Distribution Account
      and
      distributed to the Holders of the Class R Certificates (in respect of the Class
      R-1 Interest), as the case may be:

     

    (i)  first,
      to
      the extent of Available Funds, to Holders of REMIC 1 Regular Interest LT1AA,
      REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1M, REMIC 1 Regular
      Interest LT1B, REMIC 1 Regular Interest LT1ZZ and REMIC 1 Regular Interest
      LT1P,
pro
      rata,
      in an
      amount equal to (A) the Uncertificated Accrued Interest for such Distribution
      Date, plus (B) any amounts in respect thereof remaining unpaid from previous
      Distribution Dates. Amounts payable as Uncertificated Accrued Interest in
      respect of REMIC 1 Regular Interest LT1ZZ shall be reduced when the REMIC 1
      Overcollateralized Amount is less than the REMIC 1 Target Overcollateralized
      Amount, by the lesser of (x) the amount of such difference and (y) the Maximum
      LT1ZZ Uncertificated Accrued Interest Deferral Amount and such amount will
      be
      payable to the Holders of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular
      Interest LT1A, REMIC 1 Regular Interest LT1M and REMIC 1 Regular Interest LT1B,
      in the same proportion as the Overcollateralization Deficiency Amount is
      allocated to the Corresponding Certificates and the Uncertificated Principal
      Balance of the REMIC 1 Regular Interest LT1ZZ shall be increased by such amount;
      

     

    (ii)  second,
      to the Holders of REMIC 1 Regular Interest LT1P, on each Distribution Date,
      100%
      of the amount paid in respect of Prepayment Charges; and

     

    (iii)  third,
      to
      the Holders of REMIC 1 Regular Interests, in an amount equal to the remainder
      of
      the Available Funds for such Distribution Date after the distributions made
      pursuant to clause (i) above, allocated as follows:

     

    (a)  98.00%
      of
      such remainder to the Holders of REMIC 1 Regular Interest LT1AA, until the
      Uncertificated Principal Balance of such Uncertificated REMIC 1 Regular Interest
      is reduced to zero;

     

    (b)  2.00%
      of
      such remainder, first, to the Holders of REMIC 1 Regular Interest LT1A, REMIC
      1
      Regular Interest LT1M, REMIC 1 Regular Interest LT1B and REMIC 1 Regular
      Interest LT1P, 1.00% of such remainder, in the same proportion as principal
      payments are allocated to the Corresponding Certificates, until the
      Uncertificated Principal Balances of such REMIC 1 Regular Interests are reduced
      to zero; and second, to the Holders of REMIC 1 Regular Interest LT1ZZ, 1.00%
      of
      such remainder, until the Uncertificated Principal Balance of such REMIC 1
      Regular Interest is reduced to zero; then

     

    (c)  any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-1 Interest).

     

    provided,
      however, that (i) 98.00% and (ii) 2.00% of any principal payments that are
      attributable to an Excess Overcollateralization Amount shall be allocated to
      Holders of REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LTZZ,
      respectively.

     

    If
      the
      Trustee becomes aware that interest and principal collections that it receives
      in respect of the Mortgage Loans are not flowing from (a) REMIC 1 to REMIC
      2,
      (b) from REMIC 2 to the Class A, Class M and Class B Certificates, the Class
      C
      Interest and the Class P Interest and (c) from the Class C Interest and the
      Class P Interest to the Class IO, Class C and Class P Certificates, then the
      Trustee shall notify the Servicer and cooperate in consulting with the
      Servicer’s tax counsel. The advice or any opinion of said counsel shall be full
      and complete authorization and protection to the Trustee in respect of any
      action taken or omitted by it hereunder in good faith and in accordance with
      such advice or opinion of counsel. All parties hereby agree to resolve such
      issues within 30 days of notice thereof. Furthermore, to the extent any
      provisions of this document are inconsistent with (a), (b) and (c) above, such
      provisions will be amended in accordance with Section 11.01 of this Agreement.
      Notwithstanding anything herein to the contrary, the Trustee shall incur no
      liability for any payments made in accordance with the provisions of this
      Agreement.

     

    Notwithstanding
      the distributions described in this Section 4.04, distribution of funds shall
      be
      made so that the Uncertificated Principal Balance of each of REMIC 1 Regular
      Interest LT1A, REMIC 1 Regular Interest LT1M and REMIC 1 Regular Interest LT1B
      remains equal to 1% of the Certificate Principal Balance of the related
      Corresponding Certificate and for REMIC 1 Regular Interest LT1ZZ to equal the
      sum of (i) 1% of the Mortgage Pool and (ii) 1% of the Overcollateralized Amount
      for such Distribution Date.

     

    Section
      4.05.  Allocation
      of Realized Losses.

     

    For
      each
      Distribution Date, the Servicer shall calculate the amount of Realized Losses
      on
      the Mortgage Loans that occurred during the preceding Prepayment Period, and
      shall include such calculation in its Remittance Report.

     

    If
      on any
      Distribution Date, the aggregate Certificate Principal Balance of the Class
      A
      Certificates and the Subordinated Certificates, determined after all
      distributions pursuant to Section 4.01 have been made, exceed the aggregate
      Stated Principal Balance of all of the Mortgage Loans as of such Distribution
      Date after all distributions pursuant to Section 4.01 have been made, such
      excess shall be allocated by the Trustee as follows: first, to the Class B
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; and second, to the Class M Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero. All Realized Losses to
      be so
      allocated to the Certificate Principal Balance of any such Class on any
      Distribution Date shall be so allocated after the actual distributions to be
      made on such date as provided herein. No allocations of any Realized Losses
      shall be made to the Certificate Principal Balance of the Class A Certificates.
      All references in Section 4.01 to the Certificate Principal Balance of any
      Class
      of Certificates, unless otherwise stated, shall be to the Certificate Principal
      Balance of such Class immediately prior to the relevant Distribution Date,
      before reduction thereof by any Realized Losses as provided in this Section
      4.05, in each case to be allocated to such Class of Certificates, on such
      Distribution Date.

     

    Any
      allocation of Realized Losses to a Subordinated Certificate on any Distribution
      Date shall be made by reducing the Certificate Principal Balance thereof by
      the
      amount so allocated.

     

    All
      Realized Losses on the Mortgage Loans shall be allocated by the Trustee on
      each
      Distribution Date, in the specified percentages, as follows: first, to
      Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1AA
      and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the REMIC
      1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the
      Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA and REMIC
      1
      Regular Interest LT1ZZ up to an aggregate amount equal to the REMIC 1 Principal
      Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated
      Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest
      LT1B and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until
      the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B has been
      reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC
      1
      Regular Interest LT1AA, REMIC 1 Regular Interest LT1M and REMIC 1 Regular
      Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC 1 Regular Interest LT1M has been reduced to zero.

     

    All
      Realized Losses allocated to the Class C Certificates shall be deemed to be
      allocated to the Class C Interest.

     

    Section
      4.06.  The
      Policy.

     

    (a)  If
      the
      Trustee determines that a Deficiency Amount to be covered by the Policy will
      exist for the related Distribution Date, the Trustee shall complete the notice
      in the form of Exhibit A to the Policy (the “Notice”) and submit such Notice in
      accordance with the Policy to the Certificate Insurer no later than 12:00 P.M.,
      New York City time, on the second Business Day immediately preceding such
      Distribution Date, as a claim for the amount of such Insured
      Amount.

     

    (b)  The
      Trustee shall establish and maintain the Insurance Account on behalf of the
      Holders of the Insured Certificates over which the Trustee shall have the
      exclusive control and sole right of withdrawal. Upon receipt of an Insured
      Amount from the Certificate Insurer on behalf of the Holders of the Insured
      Certificates, the Trustee shall deposit such Insured Amount in the Insurance
      Account and distribute such amount only for purposes of payment to the Insured
      Certificates of the Insured Amount for which a claim was made and such amount
      may not be applied to satisfy any costs, expenses or liabilities of the
      Servicer, the Seller, the Depositor, the Trustee or the Trust Fund or to pay
      any
      other Class of Certificates. Amounts paid under the Policy, to the extent needed
      to pay the Insured Amount, shall be transferred to the Distribution Account
      on
      the related Distribution Date and disbursed by the Trustee to the holders of
      the
      Insured Certificates in accordance with Section 4.01. It shall not be necessary
      for such payments to be made by checks or wire transfers separate from the
      checks or wire transfers used to pay other distributions to the holders of
      the
      Insured Certificates with other funds available to make such payment. However,
      the amount of any payment of principal or of interest on the Insured
      Certificates to be paid from funds transferred from the Insurance Account shall
      be noted as provided in paragraph (d) below and in the statement to be furnished
      to holders of the Insured Certificates pursuant to Section 4.02. Funds held
      in
      the Insurance Account shall not be invested. Any funds remaining in the
      Insurance Account on the first Business Day following the later of (i) the
      related Distribution Date or (ii) the date received by the Trustee, shall be
      returned to the Certificate Insurer pursuant to the written instructions of
      the
      Certificate Insurer by the end of such Business Day.

     

    (c)  The
      Trustee shall keep a complete and accurate record of the amount of interest
      and
      principal paid in respect of any Insured Certificate from moneys received under
      the Policy. The Certificate Insurer shall have the right to inspect such records
      at reasonable times during normal business hours upon one Business Day’s prior
      notice to the Trustee.

     

    (d)  In
      the
      event that the Trustee has received a certified copy of an order of the
      appropriate court that any Insured Amount has been voided in whole or in part
      as
      a preference payment under applicable bankruptcy law, the Trustee shall so
      notify the Certificate Insurer, shall comply with the provisions of the Policy
      to obtain payment by the Certificate Insurer of such Preference Amount in the
      amount of such voided Insured Amount, and shall, at the time it provides notice
      to the Certificate Insurer, notify, by mail the holders of the affected Insured
      Certificates that, in the event any holder’s Insured Amount is so recovered,
      such holder of an Insured Certificate will be entitled to payment pursuant
      to
      the Policy, a copy of which shall be made available through the Trustee or
      the
      Certificate Insurer, and the Trustee shall furnish to the Certificate Insurer,
      its records evidencing the payments which have been made by the Trustee and
      subsequently recovered from the holders of the Insured Certificates, and dates
      on which such payments were made.

     

    (e)  The
      Trustee shall promptly notify the Certificate Insurer of any proceeding or
      the
      institution of any action, of which a Responsible Officer of the Trustee has
      actual knowledge, seeking the avoidance as a preferential transfer under
      applicable bankruptcy, insolvency, receivership or similar law (a “Preference
      Claim”)
      of any
      distribution made with respect to the Insured Certificates. Each holder of
      an
      Insured Certificate, by its purchase of such Insured Certificate, the Servicer,
      the Depositor and the Trustee agree that the Certificate Insurer (so long as
      no
      Certificate Insurer Default exists) may at any time during the continuation
      of
      any proceeding relating to a Preference Claim direct all matters relating to
      such Preference Claim, including, without limitation, (i) the direction of
      any
      appeal of any order relating to such Preference Claim and (ii) the posting
      of
      any surety or performance bond pending any such appeal. In addition and without
      limitation of the foregoing, the Certificate Insurer shall be subrogated to,
      and
      each holder of an Insured Certificate and the Trustee hereby delegates and
      assigns to the Certificate Insurer, to the fullest extent permitted by law,
      the
      rights of the Trustee and each holder of an Insured Certificate in the conduct
      of any such Preference Claim, including, without limitation, all rights of
      any
      party to any adversary proceeding or action with respect to any court order
      issued in connection with any such Preference Claim.

     

    (f)  The
      Trustee shall, upon retirement of the Insured Certificates, furnish to the
      Certificate Insurer a notice of such retirement, and, upon retirement of the
      Insured Certificates and the expiration of the term of the Policy, surrender
      the
      Policy to the Certificate Insurer for cancellation.

     

    (g)  The
      Trustee will hold the Policy in trust as agent for the holders of the Insured
      Certificates for the purpose of making claims thereon and distributing the
      proceeds thereof. Neither the Policy nor the amounts paid on the Policy will
      constitute part of the Trust Fund created by this Agreement. Each Holder of
      the
      Insured Certificates, by accepting its Insured Certificates, appoints the
      Trustee as attorney in fact for the purpose of making claims on the
      Policy.

     

    (h)  Anything
      herein to the contrary notwithstanding, any payment with respect to principal
      of
      or interest on the Insured Certificates which is made with moneys received
      pursuant to the terms of the Policy shall not be considered payment of the
      Insured Certificates from the Trust Fund. The Depositor, the Servicer and the
      Trustee acknowledge, and each holder by its acceptance of an Insured Certificate
      agrees, that without the need for any further action on the part of the
      Certificate Insurer, the Depositor, the Servicer or the Trustee (a) to the
      extent the Certificate Insurer makes payments, directly or indirectly, on
      account of principal of or interest on the Insured Certificates to the holders
      of such Insured Certificates, the Certificate Insurer will be fully subrogated
      to, and each holder of an Insured Certificate, the Servicer and the Trustee
      hereby delegate and assign to the Certificate Insurer, to the fullest extent
      permitted by law, the rights of such holders to receive such principal and
      interest from the Trust Fund, including, without limitation, any amounts due
      to
      the holders of the Insured Certificates in respect of securities law violations
      arising from the offer and sale of the Insured Certificates, and (b) the
      Certificate Insurer shall be paid such amounts from the sources and in the
      manner provided herein for the payment of such amounts and as provided in this
      Agreement. The Trustee and the Servicer shall cooperate in all respects with
      any
      reasonable request by the Certificate Insurer for action to preserve or enforce
      the Certificate Insurer’s rights or interests under this Agreement without
      limiting the rights or affecting the interests of the holders as otherwise
      set
      forth herein.

     

    (i)  By
      accepting its Insured Certificate, each holder of an Insured Certificate agrees
      that, unless a Certificate Insurer Default exists, the Certificate Insurer
      shall
      be deemed to be the holder of the Insured Certificate for all purposes (other
      than with respect to the receipt of payment on the Insured Certificates) and
      shall have the right to exercise all rights (including, without limitation,
      voting rights) of the holders of the Insured Certificates under this Agreement
      and under the Insured Certificates without any further consent of the holders
      of
      the Insured Certificates. All notices, statement reports, certificates or
      opinions required by this Agreement to be sent to any holders of Insured
      Certificates shall also be sent to the Certificate Insurer.

     

     

    ARTICLE
      V

     

    THE
      CERTIFICATES

     

    Section
      5.01.  The
      Certificates.

     

    Each
      of
      the Senior Certificates, the Subordinated Certificates, the Class C Certificates
      and the Class R Certificates shall be substantially in the forms annexed hereto
      as exhibits, and shall, on original issue, be executed, authenticated and
      delivered by the Trustee to or upon the order of the Depositor concurrently
      with
      the sale and assignment to the Trustee of the Trust Fund. The Class A
      Certificates and the Subordinated Certificates shall be initially evidenced
      by
      one or more Certificates representing a Percentage Interest with a minimum
      dollar denomination of $100,000 initial Certificate Principal Balance and
      integral dollar multiples of $1,000.00 in excess thereof, 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 Certificate Principal Balance of
      such
      Class on the Closing Date. The Class C Certificates and the Class R Certificates
      are issuable in any Percentage Interests; provided, however, that the sum of
      all
      such percentages for each such Class totals 100% and no more than ten
      Certificates of each such Class may be issued.

     

    The
      Certificates shall be executed on behalf of the Trust by manual or facsimile
      signature on behalf of the Trustee by a Responsible Officer. 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
      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 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 5.02(c), the Class A Certificates and the Subordinated
      Certificates shall be Book-Entry Certificates. The other Classes of Certificates
      shall not be Book-Entry Certificates.

     

    Section
      5.02.  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 Trustee 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 the Trustee’s
      offices located at 648 Grassmere Park Road, Nashville, Tennessee 37211,
      Attention: Transfer Department, at the offices of the Trustee’s agent located at
      DB Services Tennessee, 648 Grassmere Park Road, Nashville, Tennessee 37211-3658
      or at such other office designated by the Trustee for such purposes and, in
      the
      case of a Class R Certificate, upon satisfaction of the conditions set forth
      below, the Trustee 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
      Trustee on behalf of the Trust 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 Trustee or
      the
      Certificate Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer satisfactory to the Trustee and the Certificate Registrar
      duly executed by, the Holder thereof or his attorney duly authorized in writing.
      In addition, with respect to each Class R Certificate, the holder thereof may
      exchange, in the manner described above, such Class R Certificate for two
      separate certificates, each representing such holder’s respective Percentage
      Interest in the Class R-1 Interest and the Class R-2 Interest, respectively,
      in
      each case that was evidenced by the Class R Certificate being
      exchanged.

     

    (b)  Except
      as
      provided in paragraph (c) 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 Trustee
      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 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 may conclusively
      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 Trustee and its agents, employees, officers and directors as
      the
      absolute owner of the Certificates for all purposes whatsoever.

     

    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 in writing that the
      Depository is no longer willing or able to discharge properly its
      responsibilities as Depository and (y) the Trustee or the Depositor is unable
      to
      locate a qualified successor or (ii) after the occurrence of a Servicer Event
      of
      Termination, the Certificate Owners of the Book-Entry Certificates representing
      Percentage Interests of such Classes aggregating not less than 51% advise the
      Trustee and Depository through the applicable financial intermediaries and
      the
      Depository Participants in writing that the continuation of a book-entry system
      through the Depository to the exclusion of definitive, fully registered
      certificates (the “Definitive Certificates”) to Certificate Owners is no longer
      in the best interests of the Certificate Owners. Upon surrender to the
      Certificate Registrar of the Book-Entry Certificates by the Depository,
      accompanied by registration instructions from the Depository for registration,
      the Trustee shall, at the Servicer’s expense, execute on behalf of the Trust and
      authenticate the Definitive Certificates. Neither the Depositor nor the Trustee
      shall be liable for any delay in delivery of such instructions and may
      conclusively rely on, and shall be fully protected in relying on, such
      instructions. Upon the issuance of Definitive Certificates, the Trustee, the
      Certificate Registrar, the Servicer, any Paying Agent and the Depositor shall
      recognize the Holders of the Definitive Certificates as Certificateholders
      hereunder.

     

    (d)  No
      transfer, sale, pledge or other disposition of any Private Certificate or any
      Ownership Interest therein shall be made unless such disposition is exempt
      from
      the registration requirements of the 1933 Act, and any applicable state
      securities laws or is made in accordance with the 1933 Act and such state
      securities laws.

     

    In
      the
      event of any such transfer of any Ownership Interest in any Private Certificate
      that is a Definitive Certificate, except with respect to the initial transfer
      of
      any Private Certificate by the Depositor (i) unless such transfer is made in
      reliance upon Rule 144A under the 1933 Act (as evidenced by the investment
      letter delivered to the Trustee, in substantially the form of the Form of Rule
      144A Investment Letter included as part of Exhibit J hereto), the Trustee and
      the Depositor shall require a written Opinion of Counsel (which may be in-house
      counsel) acceptable to and in form and substance reasonably satisfactory to
      the
      Trustee and the Depositor that such transfer may be made pursuant to an
      exemption, describing the applicable exemption and the basis therefor, from
      the
      1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
      shall not be an expense of the Trustee or the Depositor or (ii) the Trustee
      shall require the transferor to execute a transferor certificate (in
      substantially the form attached hereto as Exhibit L) and the transferee to
      execute an investment letter (in substantially the form attached hereto as
      Exhibit J) acceptable to and in form and substance reasonably satisfactory
      to
      the Depositor and the Trustee certifying to the Depositor and the Trustee the
      facts surrounding such transfer, which transferor certificate and investment
      letter shall not be an expense of the Trustee or the Depositor. The Holder
      of
      such Private Certificate desiring to effect such transfer shall, and does hereby
      agree to, indemnify the Trustee 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.

     

    In
      the
      event of any such transfer of any Ownership Interest in any Private Certificate
      that is a Book-Entry Certificate, except with respect to the initial transfer
      of
      any such Certificate by the Depositor, such transfer shall be required to be
      made in reliance upon Rule 144A under the 1933 Act, and the transferor will
      be
      deemed to have made each of the representations and warranties set forth on
      Exhibit L hereto in respect of such interest as if it was evidenced by such
      Private Certificate and the transferee will be deemed to have made each of
      the
      representations and warranties set forth in the Form of Rule 144A Investment
      Letter included as part of Exhibit J hereto in respect of such interest as
      if it
      was evidenced by a Definitive Certificate. The Certificate Owner of any such
      Ownership Interest in any such Private Certificate desiring to effect such
      transfer shall, and does hereby agree to, indemnify the Trustee 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.

     

    No
      transfer of any Certificate or any interest therein shall be made to any Plan
      subject to ERISA or Section 4975 of the Code, any Person acting, directly or
      indirectly, on behalf of any such Plan or any Person acquiring such Certificates
      with “Plan Assets” of a Plan within the meaning of the Department of Labor
      regulation promulgated at 29 C.F.R. § 2510.3-101 (“Plan Assets”), as certified
      by such transferee in the form of Exhibit I, unless the Trustee is provided
      with
      an Opinion of Counsel on which the Depositor, the Trustee, the Certificate
      Insurer and the Servicer may rely, which is satisfactory to the Trustee, that
      the purchase of such Certificates is permissible under applicable law, will
      not
      constitute or result in any prohibited transaction under ERISA or Section 4975
      of the Code and will not subject the Depositor, the Servicer, the Trustee,
      the
      Certificate Insurer or the Trust Fund to any obligation or liability (including
      obligations or liabilities under ERISA or Section 4975 of the Code) in addition
      to those undertaken in this Agreement, which Opinion of Counsel shall not be
      an
      expense of the Depositor, the Servicer, the Trustee, the Certificate Insurer
      or
      the Trust Fund. Neither a certification nor an Opinion of Counsel will be
      required in connection with the initial transfer of any such Certificate by
      the
      Depositor to an affiliate of the Depositor (in which case, the Depositor or
      any
      affiliate thereof shall have deemed to have represented that such affiliate
      is
      not a Plan or a Person investing Plan Assets) and the Trustee shall be entitled
      to conclusively rely upon a written representation from the Depositor of the
      status of such transferee as an affiliate of the Depositor.

     

    In
      the
      event of any such transfer of any Ownership Interest in any Book-Entry
      Certificate, except with respect to the initial transfer of any such Certificate
      by the Depositor, the transferee will be deemed to have made each of the
      representations and warranties set forth on Exhibit I hereto.

     

    If
      any
      Certificate subject to the restrictions set forth in the preceding paragraph
      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 retroactive to the date
      of
      transfer to the purported beneficial owner. Any purported beneficial owner
      whose
      acquisition or holding of any such Certificate or interest therein was effected
      in violation of the provisions of the preceding paragraph shall indemnify and
      hold harmless the Depositor, the Servicer, the Trustee and the Trust Fund from
      and against any and all liabilities, claims, costs or expenses incurred by
      those
      parties as a result of that acquisition or holding.

     

    Each
      Person who has or who acquires any Ownership Interest in a Class 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 Class R Certificate are expressly subject to the following
      provisions:

     

    (i)  Each
      Person holding or acquiring any Ownership Interest in a Class R Certificate
      shall be a Permitted Transferee and shall promptly notify the Trustee of any
      change or impending change in its status as a Permitted Transferee.

     

    (ii)  No
      Person
      shall acquire an Ownership Interest in a Class R Certificate unless such
      Ownership Interest is a pro
      rata
      undivided interest.

     

    (iii)  In
      connection with any proposed transfer of any Ownership Interest in a Class
      R
      Certificate, the Trustee shall as a condition to registration of the transfer,
      require delivery to it, in form and substance satisfactory to it, of each of
      the
      following:

     

    (x) an
      affidavit in the form of Exhibit M hereto from the proposed transferee to the
      effect that such transferee is a Permitted Transferee and that it is not
      acquiring its Ownership Interest in the Class R Certificate that is the subject
      of the proposed transfer as a nominee, trustee or agent for any Person who
      is
      not a Permitted Transferee; and

     

    (y) a
      covenant of the proposed transferee to the effect that the proposed transferee
      agrees to be bound by and to abide by the transfer restrictions applicable
      to
      the Class R Certificates.

     

    (iv)  Any
      attempted or purported transfer of any Ownership Interest in a Class R
      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 a Class R Certificate, then the prior Holder of such Class
      R
      Certificate that is a Permitted Transferee shall, upon discovery that the
      registration of transfer of such Class R 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 Class R Certificate. The Trustee shall
      be under no liability to any Person for any registration of transfer of a Class
      R Certificate that is in fact not permitted by this Section or for making any
      distributions due on such Class R 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 Trustee received the documents specified in clause
      (iii). The Trustee shall be entitled to recover from any Holder of a Class
      R
      Certificate that was in fact not a Permitted Transferee at the time such
      distributions were made all distributions made on such Class R Certificate.
      Any
      such distributions so recovered by the Trustee shall be distributed and
      delivered by the Trustee to the prior Holder of such Class R Certificate that
      is
      a Permitted Transferee.

     

    (v)  If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Class R Certificate in violation of the restrictions in this Section, then
      the
      Trustee shall have the right but not the obligation, without notice to the
      Holder of such Class R Certificate or any other Person having an Ownership
      Interest therein, to notify the Depositor to arrange for the sale of such Class
      R 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 Trustee to the
      previous Holder of such Class R Certificate that is a Permitted Transferee,
      except that in the event that the Trustee determines that the Holder of such
      Class R Certificate may be liable for any amount due under this Section or
      any
      other provisions of this Agreement, the Trustee may withhold a corresponding
      amount from such remittance as security for such claim.

     

    (vi)  If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Class R Certificate in violation of the restrictions in this Section, then
      the
      Trustee 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 which are applicable solely to the Class
      R
      Certificates shall cease to apply to transfers occurring on or after the date
      on
      which there shall have been delivered to the Trustee, in form and substance
      satisfactory to the Trustee, (i) written notification from each Rating Agency
      that the removal of the restrictions on Transfer which are applicable solely
      to
      the Class R Certificates set forth in this Section will not cause such Rating
      Agency to downgrade its rating of the Certificates and (ii) an Opinion of
      Counsel to the effect that such removal will not cause any REMIC created
      hereunder to fail to qualify as a REMIC.

     

    (e)  No
      service charge shall be made for any registration of transfer or exchange of
      Certificates, 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
      5.03.  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
      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 or the Certificate Registrar that such Certificate has been
      acquired by a bona fide purchaser, the Trustee 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 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 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
      5.04.  Persons
      Deemed Owners.

     

    The
      Servicer, the Depositor, the Trustee, the Certificate Registrar, any Paying
      Agent and any agent of the Servicer, the Depositor, the Trustee, the Certificate
      Registrar or any Paying Agent may treat the Person, including the Depository,
      in
      whose name any Certificate is registered as the owner of such Certificate for
      the purpose of receiving distributions pursuant to Section 4.01 and for all
      other purposes whatsoever, and none of the Servicer, the Trust, the Trustee
      nor
      any agent of any of them shall be affected by notice to the
      contrary.

     

    Section
      5.05.  Appointment
      of Paying Agent.

     

    (a)  The
      Paying Agent shall make distributions to Certificateholders from the
      Distribution Account pursuant to Section 4.01 and shall report the amounts
      of
      such distributions to the Trustee. 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 Trustee.
      The Trustee may appoint a successor to act as Paying Agent, which appointment
      shall be reasonably satisfactory to the Depositor.

     

    (b)  The
      Trustee shall cause the Paying Agent (if other than the Trustee) 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 and the Certificate Insurer 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.

     

     

     

    ARTICLE
      VI 

     

    THE
      SERVICER AND THE DEPOSITOR

     

    Section
      6.01.  Liability
      of the Servicer and the Depositor.

     

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

     

    Section
      6.02.  Merger
      or Consolidation of, or Assumption of the Obligations of, the Servicer or the
      Depositor.

     

    Any
      entity into which the Servicer or Depositor may be merged or consolidated,
      or
      any entity resulting from any merger, conversion or consolidation to which
      the
      Servicer or the Depositor shall be a party, or any corporation succeeding to
      the
      business of the Servicer or the Depositor, shall be the successor of the
      Servicer or the Depositor, as the case may be, hereunder, without the execution
      or filing of any paper or any further act on the part of any of the parties
      hereto, anything herein to the contrary notwithstanding; provided, however,
      that
      the successor Servicer shall satisfy all the requirements of Section 7.02 with
      respect to the qualifications of a successor Servicer.

     

    Section
      6.03.  Limitation
      on Liability of the Servicer and Others.

     

    Neither
      the Servicer or the Depositor nor any of the directors or officers or employees
      or agents of the Servicer or the Depositor shall be under any liability to
      the
      Trust or the Certificateholders for any action taken or for refraining from
      the
      taking of any action by the Servicer or the Depositor in good faith pursuant
      to
      this Agreement, or for errors in judgment; provided, however, that this
      provision shall not protect the Servicer, the Depositor or any such Person
      against any liability which would otherwise be imposed by reason of its willful
      misfeasance, bad faith or negligence in the performance of duties of the
      Servicer or the Depositor, as the case may be, or by reason of its reckless
      disregard of its obligations and duties of the Servicer or the Depositor, as
      the
      case may be, hereunder; provided, further, that this provision shall not be
      construed to entitle the Servicer to indemnity in the event that amounts
      advanced by the Servicer to retire any senior lien exceed Liquidation Proceeds
      (in excess of related liquidation expenses) realized with respect to the related
      Mortgage Loan. The Servicer and any director or officer or employee or agent
      of
      the 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. The Servicer and the Depositor, and any director or officer or
      employee or agent of the Servicer or the Depositor, shall be indemnified by
      the
      Trust and held harmless against any loss, liability or expense incurred in
      connection with any legal action relating to this Agreement or the Certificates,
      other than any loss, liability or expense related to any specific Mortgage
      Loan
      or Mortgage Loans (except as any such loss, liability or expense shall be
      otherwise reimbursable pursuant to this Agreement) and any loss, liability
      or
      expense incurred by reason of its willful misfeasance, bad faith or negligence
      in the performance of duties hereunder or by reason of its reckless disregard
      of
      obligations and duties hereunder. None of the Depositor, the Seller or the
      Servicer shall be under any obligation to appear in, prosecute or defend any
      legal action that is not incidental to its respective duties hereunder and
      which
      in its opinion may involve it in any expense or liability; provided, however,
      that any of the Depositor, the Seller or the Servicer may in its discretion
      undertake any such legal action that it may deem appropriate in respect of
      this
      Agreement and the rights and duties of the parties hereto and interests of
      the
      Trustee and the Certificateholders hereunder or with respect to the Mortgage
      Loans including, without limitation, any rights or causes of action arising
      out
      of the origination of the Mortgage Loans.  In such event, unless the
      Depositor, the Servicer or the Seller, as applicable, acts without the consent
      of the Certificate Insurer (unless the Policy has been canceled upon the payment
      in full of the Insured Certificates or a Certificate Insurer Default has
      occurred and is continuing), the legal expenses and costs of such action and
      any
      liability resulting therefrom shall be expenses, costs and liabilities of the
      Trust Fund, and the Depositor, the Seller, and the Servicer shall be entitled
      to
      be reimbursed therefor out of the Certificate Account. The Servicer’s right to
      indemnity or reimbursement pursuant to this Section shall survive any
      resignation or termination of the Servicer pursuant to Section 6.04 or 7.01
      with
      respect to any losses, expenses, costs or liabilities arising prior to such
      resignation or termination (or arising from events that occurred prior to such
      resignation or termination). This paragraph shall apply to the Servicer solely
      in its capacity as Servicer hereunder and in no other capacities.

     

    Section
      6.04.  Servicer
      Not to Resign.

     

    Subject
      to the provisions of Section 7.01 and Section 7.02, the Servicer shall not
      resign from the obligations and duties hereby imposed on it except (i) upon
      determination that the performance of its obligations or duties hereunder are
      no
      longer permissible under applicable law or are in material conflict by reason
      of
      applicable law with any other activities carried on by it or its subsidiaries
      or
      Affiliates, the other activities of the Servicer so causing such a conflict
      being of a type and nature carried on by the Servicer or its subsidiaries or
      Affiliates at the date of this Agreement or (ii) upon satisfaction of the
      following conditions: (a) the Servicer has proposed a successor Servicer to
      the
      Trustee and the Certificate Insurer in writing and such proposed successor
      Servicer is reasonably acceptable to the Trustee and the Certificate Insurer;
      and (b) each Rating Agency shall have delivered a letter to the Trustee prior
      to
      the appointment of the successor Servicer stating that the proposed appointment
      of such successor Servicer as Servicer hereunder will not result in the
      reduction or withdrawal of the then current rating of any of the Certificates
      (without regard to the Policy); provided, however, that no such resignation
      by
      the Servicer shall become effective until such successor Servicer or the
      Trustee, if it becomes successor Servicer, shall have assumed the Servicer’s
      responsibilities and obligations hereunder or the Trustee shall have designated
      a successor Servicer in accordance with Section 7.02. Any such resignation
      shall
      not relieve the Servicer of responsibility for any of the obligations specified
      in Sections 7.01 and 7.02 as obligations that survive the resignation or
      termination of the Servicer. Any such determination permitting the resignation
      of the Servicer pursuant to clause (i) above shall be evidenced by an Opinion
      of
      Counsel to such effect delivered to the Trustee and the Certificate
      Insurer.

     

    Section
      6.05.  Delegation
      of Duties.

     

    In
      the
      ordinary course of business, the Servicer at any time may delegate any of its
      duties hereunder to any Person, including any of its Affiliates, who agrees
      to
      conduct such duties in accordance with standards comparable to those set forth
      in Section 3.01. Such delegation shall not relieve the Servicer of its
      liabilities and responsibilities with respect to such duties and shall not
      constitute a resignation within the meaning of Section 6.04. Except as provided
      in Section 3.02, no such delegation is permitted that results in the delegate
      subservicing any Mortgage Loans. The Servicer shall provide the Trustee with
      60
      days prior written notice prior to the delegation of any of its duties to any
      Person other than any of the Servicer’s Affiliates or their respective
      successors and assigns.

     

    Section
      6.06.  Inspection.

     

    The
      Servicer, in its capacity as Seller and Servicer, shall afford the Trustee
      and
      the Certificate Insurer, upon reasonable advance notice, during normal business
      hours, access to all records maintained by the Servicer in respect of its rights
      and obligations hereunder and access to officers of the Servicer responsible
      for
      such obligations. Upon request, the Servicer shall furnish to the Trustee and/or
      the Certificate Insurer, as applicable, its most recent publicly available
      financial statements and such other information relating to its capacity to
      perform its obligations under this Agreement.

     

     

     

    ARTICLE
      VII

     

    DEFAULT

     

    Section
      7.01.  Servicer
      Events of Termination.

     

    (a)  If
      any
      one of the following events (“Servicer Events of Termination”) shall occur and
      be continuing:

     

    (i)  (A)The
      failure by the Servicer to make any Advance; or (B) any other failure by the
      Servicer to deposit in the Certificate Account or Distribution Account any
      deposit required to be made under the terms of this Agreement which continues
      unremedied for a period of five (5) Business Days after the date upon which
      written notice of such failure shall have been given to the Servicer by the
      Trustee, or to the Servicer, the Certificate Insurer and the Trustee by the
      Holders of Certificates evidencing at least 25% of the Voting Rights;
      or

     

    (ii)  The
      failure by the Servicer to make any required Servicing Advance which failure
      continues unremedied for a period of 30 days, or the failure by the Servicer
      duly to observe or perform, in any material respect, any other covenants,
      obligations or agreements of the Servicer as set forth in this Agreement, which
      failure continues unremedied for a period of 30 days, after the date (A) on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Servicer by the Trustee, or to the Servicer and the
      Trustee by the Holders of Certificates evidencing at least 25% of the Voting
      Rights or (B) actual knowledge of such failure by a Servicing Officer of the
      Servicer; or

     

    (iii)  The
      entry
      against the 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

     

    (iv)  The
      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 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 Servicer and such decree or order shall have remained
      in force undischarged, unbonded or unstayed for a period of 60 days; or the
      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,
      in
      each and every such case, so long as a Servicer Event of Termination shall
      not
      have been remedied within the applicable grace period, or with respect solely
      to
      clause (i)(A) above, if such Advance is not made by 5:00 P.M., New York time,
      on
      the Business Day immediately following the Servicer Remittance Date (provided,
      that the Trustee shall give the Servicer notice of such failure to advance
      by
      5:00 P.M. New York time on the Servicer Remittance Date), the Trustee may,
      and
      at the direction of the Holders of Certificates evidencing Percentage Interests
      aggregating not less than 51%, by notice then given in writing to the Servicer,
      the Certificate Insurer and to the Trustee or, if no Certificate Insurer Default
      has occurred and is continuing, at the direction of the Certificate Insurer,
      the
      Trustee shall, terminate all of the rights and obligations of the Servicer
      as
      servicer under this Agreement but only upon consent of the Certificate Insurer
      if no Certificate Insurer Default has occurred and is continuing. Any such
      notice to the Servicer shall also be given to each Rating Agency, the
      Certificate Insurer, the Depositor and the Seller. On or after the receipt
      by
      the Servicer (and by the Trustee if such notice is given by the Holders) of
      such
      written notice, all authority and power of the 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 (or if another successor Servicer
      shall at such time have already been appointed in accordance with Section 7.02,
      such successor Servicer) pursuant to and under this Section (subject to Section
      7.02); and, without limitation, the Trustee (or such other successor Servicer
      appointed in accordance with Section 7.02) is hereby authorized and empowered
      to
      execute and deliver, on behalf of the 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 Servicer agrees to
      cooperate with the Trustee (or such other successor Servicer appointed in
      accordance with Section 7.02) in effecting the termination of the
      responsibilities and rights of the Servicer hereunder, including, without
      limitation, the delivery to the Trustee (or such other successor Servicer
      appointed in accordance with Section 7.02) of all documents, funds, information
      and records requested by it to enable it to assume the Servicer’s functions
      under this Agreement within ten Business Days subsequent to such notice, the
      transfer within one Business Day subsequent to such notice to the Trustee (or
      such other successor Servicer appointed in accordance with Section 7.02) for
      the
      administration by it of all cash amounts that shall at the time be held by
      the
      Servicer and to be deposited by it in the Certificate Account, the Distribution
      Account, any REO Account or any Servicing Account or that have been deposited
      by
      the Servicer in such accounts or thereafter received by the Servicer with
      respect to the Mortgage Loans or any REO Property received by the Servicer.
      All
      reasonable costs and expenses (including attorneys’ fees) incurred in connection
      with transferring the Mortgage Files to the successor Servicer and amending
      this
      Agreement to reflect such succession as Servicer pursuant to this Section shall
      be paid by the predecessor Servicer (or if the predecessor Servicer is the
      Trustee, the Servicer that immediately preceded the Trustee) upon presentation
      of reasonable documentation of such costs and expenses and to the extent not
      paid by such Servicer, by the Trust.

     

    Section
      7.02.  Trustee
      to Act; Appointment of Successor.

     

    (a)  On
      and
      after the time the Servicer (and the Trustee, if notice is sent by the Holders)
      receives a notice of termination pursuant to Section 6.04 or Section 7.01,
      the
      Certificate Insurer shall have the right to appoint a successor Servicer and
      if
      the Certificate Insurer does not exercise such right, the Trustee shall be
      the
      successor in all respects to the 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 Servicer (except for any representations or warranties of the
      Servicer under this Agreement, the responsibilities, duties and liabilities
      contained in Section 2.03(c) and the obligation to deposit amounts in respect
      of
      losses pursuant to Section 3.12) by the terms and provisions hereof arising
      on
      and after its succession including, without limitation, the Servicer’s
      obligations to make Advances pursuant to Section 4.03; provided, however, that
      if the Trustee is prohibited by law or regulation from obligating itself to
      make
      advances regarding delinquent mortgage loans, then the Trustee shall not be
      obligated to make Advances pursuant to Section 4.03; provided further, that
      any
      failure to perform such duties or responsibilities during the period following
      the termination of the Servicer reasonably necessary for the Trustee as
      successor to the Servicer hereunder to assume the duties and responsibilities
      of
      the Servicer or caused by the Servicer’s failure to provide information,
      documents or funds (or any other items reasonably requested by the Trustee
      in
      order to succeed to the Servicer’s responsibilities, duties and liabilities
      hereunder) required by Section 7.01 shall not be considered a default by the
      Trustee as successor to the Servicer hereunder and shall not result in any
      liability to the Trustee, and the Trustee, in its capacity as successor
      Servicer, shall not be responsible for the lack of information and/or documents
      that it cannot obtain through reasonable efforts. As compensation therefor,
      the
      Trustee (or such other successor Servicer as may be appointed as provided
      herein) shall be entitled to such compensation as the 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
      Servicer or (ii) if the Trustee is legally unable so to act, 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 $50,000,000 as
      the
      successor to the Servicer hereunder in the assumption of all or any part of
      the
      responsibilities, duties or liabilities of the Servicer hereunder and such
      successor Servicer must be acceptable to the Certificate Insurer; provided,
      that
      the appointment of any such successor Servicer will not result in the
      qualification, reduction or withdrawal of the ratings assigned to any of the
      Certificates by the Rating Agencies as evidenced by a letter to such effect
      from
      each Rating Agency (without regard to the Policy). Pending appointment of a
      successor to the 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 Servicer would otherwise have received
      pursuant to Section 3.18 (or such other compensation as the Trustee and such
      successor shall agree, not to exceed the Servicing Fee). The appointment of
      a
      successor Servicer shall not affect any liability of the predecessor Servicer
      which may have arisen under this Agreement prior to its termination as 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 Servicer
      be liable for any acts or omissions of the predecessor Servicer or for any
      breach by such 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. All Servicing Transfer Costs shall be paid
      by
      the predecessor Servicer (or, if the predecessor Servicer is the Trustee, the
      Servicer that preceded the Trustee) upon presentation of reasonable
      documentation of such costs, and if such predecessor Servicer defaults in its
      obligation to pay such costs, such costs shall be paid by the successor Servicer
      or the Trustee (in which case the successor Servicer or the Trustee, as
      applicable, shall be entitled to reimbursement therefor from the assets of
      the
      Trust Fund). If no Certificate Insurer Default has occurred and is continuing,
      the Certificate Insurer shall have the right to consent to any successor
      Servicer which the Trustee may propose to appoint.

     

    (b)  Any
      successor to the Servicer, including the Trustee, shall during the term of
      its
      service as servicer continue to service and administer the Mortgage Loans for
      the benefit of Certificateholders and the Certificate Insurer, and maintain
      in
      force a policy or policies of insurance covering errors and omissions in the
      performance of its obligations as Servicer hereunder and a fidelity bond in
      respect of its officers, employees and agents to the same extent as the Servicer
      is so required pursuant to Section 3.14.

     

    Section
      7.03.  Waiver
      of Defaults.

     

    The
      Majority Certificateholders (excluding any Certificates held by the Seller,
      the
      Servicer or any Affiliate thereof) may, on behalf of all Certificateholders
      and
      the Certificate Insurer, waive any events permitting removal of the Servicer
      as
      servicer pursuant to this Article VII; provided, however, that the Majority
      Certificateholders (excluding any Certificates held by the Servicer or any
      Affiliate thereof) may not waive a default in making a required distribution
      on
      a Certificate without the consent of the Holder of such Certificate. Upon any
      waiver of a past default, such default shall cease to exist and any Servicer
      Event of Termination 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 default 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
      the Rating Agencies.

     

    Section
      7.04.  Notification
      to Certificateholders.

     

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

     

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

     

    Section
      7.05.  Survivability
      of Servicer Liabilities.

     

    Notwithstanding
      anything herein to the contrary, upon termination of the Servicer hereunder,
      any
      liabilities of the Servicer which accrued prior to such termination shall
      survive such termination.

     

     

     

    ARTICLE
      VIII

     

    THE
      TRUSTEE

     

    Section
      8.01.  Duties
      of Trustee.

     

    The
      Trustee, prior to the occurrence of a Servicer Event of Termination and after
      the curing of all Servicer Events of Termination which may have occurred,
      undertakes to perform such duties and only such duties as are specifically
      set
      forth in this Agreement. If a Servicer Event of Termination has occurred (which
      has not been cured) of which a Responsible Officer of the Trustee 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 person would exercise or use under the circumstances in the conduct
      of his own affairs.

     

    The
      Trustee, upon receipt of all resolutions, certificates, statements, opinions,
      reports, documents, orders or other instruments furnished to the Trustee 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 the Trustee will not
      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 shall take such action as it deems appropriate
      to
      have the instrument corrected, and if the instrument is not corrected to the
      Trustee’s satisfaction, the Trustee will provide notice thereof to the
      Certificateholders.

     

    No
      provision of this Agreement shall be construed to relieve the Trustee from
      liability for its own negligent action, its own negligent failure to act or
      its
      own misconduct; provided, however, that:

     

    (i)  prior
      to
      the occurrence of a Servicer Event of Termination, and after the curing of
      all
      such Servicer Events of Termination which may have occurred, the duties and
      obligations of the Trustee shall be determined solely by the express provisions
      of this Agreement, the Trustee shall not be liable except for the performance
      of
      such duties and obligations as are specifically set forth in this Agreement,
      no
      implied covenants or obligations shall be read into this Agreement against
      the
      Trustee and, in the absence of bad faith on the part of the Trustee, the Trustee
      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 and conforming to the requirements of this Agreement;

     

    (ii)  the
      Trustee shall not be personally liable for an error of judgment made in good
      faith by a Responsible Officer of the Trustee, unless it shall be proved that
      the Trustee was negligent in ascertaining or investigating the facts related
      thereto;

     

    (iii)  the
      Trustee shall not be personally liable with respect to any action taken,
      suffered or omitted to be taken by it in good faith in accordance with the
      direction of the Majority Certificateholders relating to the time, method and
      place of conducting any proceeding for any remedy available to the Trustee,
      or
      exercising or omitting to exercise any trust or power conferred upon the
      Trustee, under this Agreement; and

     

    (iv)  the
      Trustee shall not be charged with knowledge of any failure by the Servicer
      to
      comply with the obligations of the Servicer referred to in clauses (i) and
      (ii)
      of Section 7.01(a) 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 failure from the Servicer or the Majority
      Certificateholders.

     

    The
      Trustee shall not be required to expend or risk its own funds or otherwise
      incur
      financial liability in the performance of any of its duties hereunder, or in
      the
      exercise of any of its rights or powers (other than expenses, disbursements
      and
      advances incurred or made by the Trustee, including the compensation and the
      expenses and disbursements of its agents and counsel, in the ordinary course
      of
      the Trustee’s performance in accordance with the provisions of this Agreement),
      if there is reasonable ground for believing that the repayment of such funds
      or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      it, and none of the provisions contained in this Agreement shall in any event
      require the Trustee to perform, or be responsible for the manner of performance
      of, any of the obligations of the 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 Servicer in accordance with
      the terms of this Agreement.

     

    Section
      8.02.  Certain
      Matters Affecting the Trustee.

     

    Except
      as
      otherwise provided in Section 8.01:

     

    (i)  the
      Trustee may request and rely upon, and shall be protected in acting or
      refraining from acting upon, any resolution, Officer’s 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 may
      prescribe;

     

    (ii)  the
      Trustee may consult with counsel and 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 Opinion
      of
      Counsel;

     

    (iii)  the
      Trustee shall be under no 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 reasonable
      security or indemnity against the costs, expenses and liabilities which may
      be
      incurred therein or thereby; nothing contained herein shall, however, relieve
      the Trustee of the obligation, upon the occurrence of a Servicer Event of
      Termination (which has not been cured or waived), to exercise such of the rights
      and powers vested in it by this Agreement, and to use the same degree of care
      and skill in their exercise as a prudent person would exercise or use under
      the
      circumstances in the conduct of such person’s own affairs;

     

    (iv)  the
      Trustee shall not 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 a Servicer Event of Termination and after the curing of all
      Servicer Events of Termination 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 no Certificates held by the Servicer, the Seller, the Depositor
      or
      any Affiliate thereof shall be given effect for the purpose of calculating
      any
      such aggregation of Voting Rights); 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 from such
      Certificateholders as a condition to making such investigation. Nothing in
      this
      clause (v) shall derogate from the obligation of the Servicer to observe any
      applicable law prohibiting disclosure of information regarding the
      Mortgagors;

     

    (vi)  the
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents or attorneys or a
      custodian;

     

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

     

    (viii)  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
      its action or inaction other than its negligence or willful misconduct in the
      performance of such act; and

     

    (ix)  the
      Trustee shall not be personally liable for any loss resulting from the
      investment of funds held in the Certificate Account or the Distribution Account
      at the direction of the Servicer pursuant to Section 3.12.

     

    In
      order
      to comply with its duties under the U.S. Patriot Act, the Trustee shall obtain
      and verify certain information and documentation from the other parties hereto,
      including, but not limited to, such parties’ name, address and other identifying
      information.

     

    In
      order
      to comply with laws, rules and regulations applicable to banking institutions,
      including those relating to the funding of terrorist activities and money
      laundering, the Trustee is required to obtain, verify and record certain
      information relating to individuals and entities which maintain a business
      relationship with the Trustee.  Accordingly, each of the parties
      agrees to provide to the Trustee upon its request from time to time such
      party’s complete name, address, tax identification number and such other
      identifying information together with copies of such party’s constituting
      documentation, securities disclosure documentation or such other identifying
      documentation as may be available for such party.

     

    Section
      8.03.  Trustee
      Not Liable for Certificates or Mortgage Loans.

     

    The
      recitals contained herein and in the Certificates (other than the authentication
      of the Trustee on the Certificates) shall be taken as the statements of the
      Depositor, and the Trustee assumes no responsibility for the correctness of
      the
      same. The Trustee makes no representations as to the validity or sufficiency
      of
      this Agreement or of the Certificates (other than the signature and
      authentication of the Trustee on the Certificates) or of any Mortgage Loan
      or
      related document. The Trustee shall not be accountable for the use or
      application by the Servicer, or for the use or application of any funds paid
      to
      the Servicer in respect of the Mortgage Loans or deposited in or withdrawn
      from
      the Certificate Account by the Servicer. The Trustee shall at no 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 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 Servicer pursuant to Section
      7.02
      and in such case only to the extent of the Servicer’s obligations hereunder);
      the compliance by the Depositor, the Seller, the Seller or the Servicer 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 moneys by or at the direction of the Servicer
      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; the acts or omissions of any of the Servicer (other than if the
      Trustee shall assume the duties of the Servicer pursuant to Section 7.02 and
      in
      such case only to the extent of the Servicer’s obligations hereunder), any
      Sub-Servicer or any Mortgagor; any action of the Servicer (other than if the
      Trustee shall assume the duties of the Servicer pursuant to Section 7.02 and
      in
      such case only to the extent of the Servicer’s obligations hereunder), or any
      Sub-Servicer taken in the name of the Trustee; the failure of the Servicer
      or
      any Sub-Servicer to act or perform any duties required of it as agent of the
      Trustee hereunder; or any action by the Trustee taken at the instruction of
      the
      Servicer (other than if the Trustee shall assume the duties of the Servicer
      pursuant to Section 7.02 and in such case only to the extent of the Servicer’s
      obligations hereunder); 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
      pursuant to Section 2.01. The Trustee shall have no responsibility for filing
      any financing or continuation statement in any public office at any time or
      to
      otherwise perfect or maintain the perfection of any security interest or lien
      granted to it hereunder (unless the Trustee shall have become the successor
      Servicer and in such case only to the extent of the Servicer’s obligations
      hereunder).

     

    Section
      8.04.  Trustee
      May Own Certificates.

     

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Certificates with the same rights as it would have if it were not Trustee
      and
      may transact any banking and trust business with the Seller, the Servicer,
      the
      Depositor or their Affiliates.

     

    Section
      8.05.  Trustee
      Fee and Expenses.

     

    As
      compensation for its activities under this Agreement, on each Distribution
      Date
      the Trustee may withdraw from the Distribution Account and pay to itself the
      Trustee Fee for that Distribution Date. The Trustee and any director, officer,
      employee, or agent of the Trustee shall be indemnified by the Servicer against
      any loss, liability, or expense (including reasonable attorney’s fees) (i)
      resulting from any error in any tax or information return prepared by the
      Servicer or (ii) incurred in connection with any claim or legal action relating
      to:

     

    (a)  this
      Agreement;

     

    (b)  the
      Certificates; or

     

    (c)  the
      performance of any of the Trustee’s duties under this Agreement, other than any
      loss, liability or expense incurred because of willful misfeasance, bad faith
      or
      negligence in the performance of any of the Trustee’s duties hereunder or
      incurred by reason of any action of the Trustee taken at the direction of the
      Certificateholders under this Agreement.

     

    This
      indemnity shall survive the termination of this Agreement or the resignation
      or
      removal of the Trustee under this Agreement. Without limiting the foregoing,
      except as otherwise agreed upon in writing by the Depositor and the Trustee,
      and
      except for any expense, disbursement, or advance arising from the Trustee’s
      negligence, bad faith, or willful misconduct, the Servicer shall pay or
      reimburse the Trustee, for all reasonable expenses, disbursements, and advances
      incurred or made by the Trustee in accordance with this Agreement with respect
      to:

     

    (i)  the
      reasonable compensation, expenses, and disbursements of its counsel not
      associated with the closing of the issuance of the Certificates;

     

    (ii)  the
      reasonable compensation, expenses, and disbursements of any accountant,
      engineer, or appraiser that is not regularly employed by the Trustee, to the
      extent that the Trustee must engage them to perform services under this
      Agreement; and

     

    (iii)  printing
      and engraving expenses in connection with preparing any Definitive
      Certificates.

     

    Except
      as
      otherwise provided in this Agreement, the Trustee shall not be entitled to
      payment or reimbursement for any routine ongoing expenses incurred by the
      Trustee in the ordinary course of its duties as Trustee, Certificate Registrar
      or Paying Agent under this Agreement or for any other expenses.

     

    Section
      8.06.  Eligibility
      Requirements for Trustee.

     

    The
      Trustee 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, having a combined
      capital and surplus of at least $50,000,000 and subject to supervision or
      examination by federal or state authority and has a credit rating which would
      not cause any Rating Agency to reduce its current rating of the Certificates.
      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 shall
      cease
      to be eligible in accordance with the provisions of this Section 8.06, the
      Trustee shall resign immediately in the manner and with the effect specified
      in
      Section 8.07.

     

    Section
      8.07.  Resignation
      or Removal of Trustee.

     

    The
      Trustee may at any time resign and be discharged from the trusts hereby created
      by giving written notice thereof to the Depositor, the Servicer, the Certificate
      Insurer and each Rating Agency. Upon receiving such notice of resignation,
      the
      Depositor shall promptly appoint a successor Trustee by written instrument,
      in
      duplicate, one copy of which instrument shall be delivered to the resigning
      Trustee, the Certificate Insurer and one copy to the successor Trustee. If
      no
      successor Trustee shall have been so appointed and having accepted appointment
      within 30 days after the giving of such notice of resignation, the resigning
      Trustee may petition any court of competent jurisdiction for the appointment
      of
      a successor Trustee.

     

    If
      at any
      time the Trustee shall cease to be eligible in accordance with the provisions
      of
      Section 8.06 and shall fail to resign after written request therefor by the
      Depositor or if at any time the Trustee shall be legally unable to act, or
      shall
      be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its
      property shall be appointed, or any public officer shall take charge or control
      of the Trustee or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation, then the Depositor or the Servicer may remove
      the
      Trustee but only upon consent of the Certificate Insurer if no Certificate
      Insurer default has occurred and is continuing. If the Depositor or the Servicer
      removes the Trustee under the authority of the immediately preceding sentence,
      the Depositor shall promptly appoint a successor Trustee by written instrument,
      in duplicate, one copy of which instrument shall be delivered to the Trustee
      so
      removed and one copy to the successor Trustee. The Trustee that is the subject
      of such removal shall deliver a copy of such instrument to the
      Certificateholders, the Certificate Insurer and the Servicer. If no successor
      Trustee shall have been so appointed and having accepted appointment within
      30
      days after the giving of such notice of resignation, then the Certificate
      Insurer may appoint a successor Trustee.

     

    The
      Majority Certificateholders (excluding any Certificates held by the Seller,
      the
      Servicer or any Affiliate thereof) may at any time remove the Trustee by written
      instrument or instruments delivered to the Servicer, the Depositor, the
      Certificate Insurer and the Trustee but only upon consent of the Certificate
      Insurer if no Certificate Insurer Default has occurred and is continuing; the
      Depositor shall thereupon use its best efforts to appoint a successor Trustee
      in
      accordance with this Section. The Trustee that is the subject of such removal
      shall deliver a copy of such instrument to the Certificateholders and the
      Servicer.

     

    Any
      resignation or removal of the Trustee and appointment of a successor Trustee
      pursuant to any of the provisions of this Section 8.07 shall not become
      effective until acceptance of appointment by the successor Trustee as provided
      in Section 8.08.

     

    Section
      8.08.  Successor
      Trustee.

     

    Any
      successor Trustee appointed as provided in Section 8.07 shall execute,
      acknowledge and deliver to the Depositor, the Servicer, the Certificate Insurer
      and to its predecessor Trustee an instrument accepting such appointment
      hereunder, and thereupon the resignation or removal of the predecessor Trustee
      shall become effective, and such successor Trustee, 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. The Depositor, the Servicer and the predecessor
      Trustee 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 all such rights, powers, duties and obligations.

     

    No
      successor Trustee shall accept appointment as provided in this Section 8.08
      unless at the time of such acceptance such successor Trustee shall be eligible
      under the provisions of Section 8.06 and the appointment of such successor
      Trustee shall not result in a downgrading of any Class of the Certificates
      by
      either Rating Agency, as evidenced by a letter from each Rating
      Agency.

     

    Upon
      acceptance of appointment by a successor Trustee as provided in this Section
      8.08, the successor Trustee shall mail notice of the appointment of a successor
      Trustee hereunder to all Holders of Certificates and the Certificate Insurer
      at
      their addresses as shown in the Certificate Register and to each Rating
      Agency.

     

    Notwithstanding
      anything to the contrary contained herein, so long as no Certificate Insurer
      Default exists, the appointment of any successor Trustee pursuant to any
      provision of this Agreement will be subject to the prior written consent of
      the
      Certificate Insurer.

     

    Section
      8.09.  Merger
      or Consolidation of Trustee.

     

    Any
      entity into which the Trustee 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 shall be a party, or any entity succeeding
      to
      the business of the Trustee, shall be the successor of the Trustee hereunder,
      provided such entity shall be eligible under the provisions of Section 8.06
      and
      8.08, 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 shall execute and deliver all
      instruments to appoint one or more Persons approved by the Trustee to act as
      co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
      separate trustees, of all or any part of the Trust, and to vest in such Person
      or Persons, in such capacity and for the benefit of the Certificateholders
      and
      the Certificate Insurer, 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 Servicer and the Trustee may consider
      necessary or desirable. Any such co-trustee or separate trustee shall be subject
      to the written approval of the Servicer. If the Servicer shall not have joined
      in such appointment within 15 days after the receipt by it of a request so
      to
      do, or in the case a Servicer Event of Termination shall have occurred and
      be
      continuing, the Trustee alone shall have the power to make such appointment.
      No
      co-trustee or separate trustee hereunder shall be required to meet the terms
      of
      eligibility as a successor Trustee under Section 8.06, and no notice to
      Certificateholders of the appointment of any co-trustee or separate trustee
      shall be required under Section 8.08. The Servicer shall be responsible for
      the
      fees of any co-trustee or separate trustee appointed hereunder.

     

    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 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
      Servicer and the Trustee, acting jointly, may at any time accept the resignation
      of or remove any separate trustee or co-trustee except that following the
      occurrence of a Servicer Event of Termination, the Trustee acting alone may
      accept the resignation 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 and the Servicer.

     

    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.

     

    Section
      8.11.  Limitation
      of Liability.

     

    The
      Certificates are executed by the Trustee, not in its individual capacity but
      solely as Trustee 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 Trustee 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.

     

    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
      and
      the Certificate Insurer, 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, its agents
      and
      counsel, be for the ratable benefit of the Certificateholders in respect of
      which such judgment has been recovered.

     

    Section
      8.13.  Suits
      for Enforcement.

     

    In
      case a
      Servicer Event of Termination or other default by the Servicer or the Depositor
      hereunder shall occur and be continuing, the Trustee, shall, at the direction
      of
      the Majority Certificateholders, or may, proceed to protect and enforce its
      rights and the rights of the Certificateholders under this Agreement 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.  Reserved.

     

    Section
      8.17.  Access
      to Records of Trustee.

     

    The
      Trustee shall afford the Seller, the Depositor, the Servicer, the Certificate
      Insurer and each Certificateholder or Certificate Owner, upon reasonable notice
      during normal business hours, access to all records maintained by the Trustee
      in
      respect of its duties under this Agreement and access to officers of the Trustee
      responsible for performing its duties. Upon request, the Trustee shall furnish
      the Depositor, the Servicer, the Certificate Insurer and any requesting
      Certificateholder or Certificate Owner with its most recent financial
      statements. The Trustee shall cooperate fully with the Seller, the Servicer,
      the
      Depositor, the Certificate Insurer and the Certificateholder or Certificate
      Owner for review and copying any books, documents or records requested with
      respect to the Trustee’s duties under this Agreement at the expense of the
      requesting party. The Seller, the Depositor, the Servicer and the
      Certificateholder or Certificate Owner shall not have any responsibility or
      liability for any action for failure to act by the Trustee and are not obligated
      to supervise the performance of the Trustee under this Agreement or
      otherwise.

     

     

    
 

    ARTICLE
      IX

     

    REMIC
      ADMINISTRATION

     

    Section
      9.01.  REMIC
      Administration.

     

    (a)  REMIC
      elections as set forth in the Preliminary Statement shall be made by the Trustee
      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 and residual interest in each
      REMIC shall be as designated in the Preliminary Statement. For the purposes
      of
      the REMIC election in respect of REMIC 1, (i) the REMIC 1 Regular Interests
      shall be designated as the Regular Interests in REMIC 1 and the Class R-1
      Interest shall be designated as the Residual Interest in REMIC 1, (ii) the
      Class
      A, Class M and Class B Certificates (exclusive of the right to receive payments
      from the Excess Reserve Fund Account), the Class C Interest and the Class P
      Interest shall be designated as the Regular Interests in REMIC 2 and the Class
      R-2 Interest shall be designated as the Residual Interest in REMIC 2 and (iii)
      the Class IO Certificates, Class C Certificates (exclusive of the obligation
      to
      make payments to Excess Reserve Fund Account) and the Class P Certificates,
      shall be designated as the Regular Interests in REMIC 3 and the Class R-3
      Interest shall be designated as the Residual Interest in REMIC 3. The Trustee
      shall not permit the creation of any “interests” in any Trust REMIC (within the
      meaning of Section 860G of the Code) other than the REMIC 1 Regular Interests,
      the Class C Interest, the Class P Interest, the Class R-1 Interest, the Class
      R-2 Interest, the Class R-3 Interest and the interests represented by the
      Certificates.

     

    (b)  The
      Closing Date is hereby designated as the “Startup Day” of each REMIC within the
      meaning of section 860G(a)(9) of the Code.

     

    (c)  The
      Trustee shall pay any and all tax related expenses (not including taxes) of
      each
      REMIC, including but not limited to any professional fees or expenses related
      to
      audits or any administrative or judicial proceedings with respect to each 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 Trustee in
      fulfilling its duties hereunder. The Trustee shall be entitled to reimbursement
      of expenses to the extent provided in clause (i) above from the Distribution
      Account.

     

    (d)  The
      Trustee shall prepare, sign and file, all of the REMICs’ federal and state tax
      and information returns as the direct representative of each REMIC created
      hereunder. The expenses of preparing and filing such returns shall be borne
      by
      the Trustee.

     

    (e)  The
      Holder of the Class R Certificate at any time holding the largest Percentage
      Interest thereof shall be the “tax matters person” as defined in the REMIC
      Provisions (the “Tax Matters Person”) with respect to each REMIC and shall act
      as Tax Matters Person for each REMIC. The Trustee, as agent for the Tax Matters
      Person, shall perform on behalf of each REMIC all reporting and other tax
      compliance duties that are the responsibility of such REMIC under the Code,
      the
      REMIC Provisions, or other compliance guidance issued by the Internal Revenue
      Service or any state or local taxing authority. Among its other duties, if
      required by the Code, the REMIC Provisions, or other such guidance, the Trustee,
      as agent for the Tax Matters Person, 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 a Class R Certificate to any disqualified
      person or organization and (ii) to the Certificateholders such information
      or
      reports as are required by the Code or REMIC Provisions.

     

    (f)  The
      Trustee, the Servicer and the Holders of Certificates shall take any action
      or
      cause the REMIC to take any action necessary to create or maintain the status
      of
      each REMIC as a REMIC under the REMIC Provisions and shall assist each other
      as
      necessary to create or maintain such status. Neither the Trustee, the Servicer
      nor the Holder of any Class R Certificate shall knowingly 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 (i) endanger the status of such REMIC as a REMIC
      or
      (ii) result in the imposition of a tax upon such REMIC (including but not
      limited to the tax on prohibited transactions as defined in Code Section
      860F(a)(2) and the tax on prohibited contributions set forth on Section 860G(d)
      of the Code) (either such event, an “Adverse REMIC Event”) unless the Trustee,
      the Certificate Insurer and the Servicer have received an Opinion of Counsel
      (at
      the expense of the party seeking to take such action but in no event at the
      expense of the Trustee) to the effect that the contemplated action will not
      endanger such status or result in the imposition of such a tax. In addition,
      prior to taking any action with respect to any REMIC created hereunder or the
      assets therein, or causing such REMIC to take any action, which is not expressly
      permitted under the terms of this Agreement, any Holder of a Class R Certificate
      will consult with the Servicer and the Certificate Insurer, or its respective
      designees, in writing, with respect to whether such action could cause an
      Adverse REMIC Event to occur with respect to any REMIC, and no such Person
      shall
      take any such action or cause any REMIC to take any such action as to which
      the
      Servicer or the Certificate Insurer has advised it in writing that an Adverse
      REMIC Event could occur.

     

    (g)  Each
      Holder of a Class R Certificate shall pay when due any and all taxes imposed
      on
      each REMIC created hereunder by federal, state or local governmental
      authorities. To the extent that such Trust taxes are not paid by a Class R
      Certificateholder, the Trustee shall pay any remaining REMIC taxes out of
      current or future amounts otherwise distributable to the Holder of the Class
      R
      Certificate in the REMICs 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 the related REMIC. If any tax is
      imposed on “prohibited transactions” (as defined in Section 860F(a)(2) of the
      Code) of any REMIC created hereunder, on the “net income form foreclosure
      property” of any REMIC created hereunder as defined in Section 860G(c) of the
      Code, on any contribution to any REMIC created hereunder after the Startup
      Day
      pursuant to Section 860G(d) of the Code, or any other tax is imposed, including
      any minimum tax imposed on any REMIC created hereunder pursuant to Sections
      23153 and 24874 of the California Revenue and Taxation Code, if not paid as
      otherwise provided for herein, the tax shall be paid by (i) the Trustee, if
      any
      such other tax arises out of or results from negligence of the Trustee in the
      performance of its obligations under this Agreement, (ii) the Servicer or the
      Seller, in the case of any such minimum tax, if such tax arises out of or
      results from a breach by the Servicer or Seller of any of their obligations
      under this Agreement, (iii) the Seller, if any such tax arises out of or results
      from the Seller’s obligation to repurchase a Mortgage Loan pursuant to Section
      2.03, or (iv) in all other cases, or if the Trustee, the Servicer, or the Seller
      fails to honor its obligations under the preceding clauses (i), (ii), or (iii),
      any such tax will be paid with amounts otherwise to be distributed to the
      Certificateholders, as provided in Section 3.11(b).

     

    (h)  The
      Trustee, as agent for the Tax Matters Person, 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 Servicer shall enter into any arrangement by which any
      REMIC
      created hereunder will receive a fee or other compensation for
      services.

     

    (k)  On
      or
      before April 15th
      of each
      calendar year beginning in 2007, the Servicer shall deliver to the Trustee
      and
      each Rating Agency an Officers’ Certificate stating the Servicer’s compliance
      with the provisions of this Section 9.01.

     

    (l)  The
      Trustee will apply for an Employee Identification Number from the Internal
      Revenue Service via a Form SS-4 or other acceptable method for all tax entities
      and shall complete and timely file the Form 8811.

     

    Section
      9.02.  Prohibited
      Transactions and Activities.

     

    None
      of
      the Depositor, the Servicer or 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 any REMIC created hereunder pursuant to Article X of this
      Agreement, (iv) a substitution pursuant to Article II or Section 3.10 of this
      Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II of this
      Agreement, or acquire any assets for any REMIC, sell or dispose of any
      investments in the Distribution Account, or accept any contributions to either
      REMIC after the Closing Date, unless it has received an Opinion of Counsel
      (at
      the expense of the party causing such sale, disposition, acquisition,
      substitution or acceptance) acceptable to the Certificate Insurer that such
      sale, disposition, acquisition, substitution or acceptance will not (a) affect
      adversely the status of any REMIC created hereunder as a REMIC or of the
      interests therein other than the Class R Certificates as the regular interests
      therein, (b) affect the distribution of interest or principal on the
      Certificates, (c) result in the encumbrance of the assets transferred or
      assigned to the Trust Fund (except pursuant to the provisions of this
      Agreement), (d) cause any REMIC created hereunder to be subject to a tax on
      prohibited transactions or prohibited contributions pursuant to the REMIC
      Provisions or (e) disqualify the Trust from being a qualifying special purpose
      entity under generally accepted accounting principles.

     

    Section
      9.03.  Indemnification
      with respect to Certain Taxes and Loss of REMIC Status.

     

    (a)  In
      the
      event that any REMIC created hereunder fails to qualify as a REMIC, loses its
      status as a REMIC, or incurs federal, state or local taxes as a result of a
      prohibited transaction or prohibited contribution under the REMIC Provisions
      due
      to the negligent performance by the Servicer of its duties and obligations
      set
      forth herein or due to the location of the Servicer, the Servicer shall
      indemnify the Trustee and the Holder of the related Class R Certificate against
      any and all losses, claims, damages, liabilities or expenses (“Losses”)
      resulting from such negligence; provided, however, that the Servicer shall
      not
      be liable for any such Losses attributable to the action or inaction of the
      Trustee, the Depositor or the Holder of such Class R Certificate, as applicable,
      or for any such Losses resulting from misinformation provided by the Holder
      of
      such Class R Certificate on which the Servicer has relied. The foregoing shall
      not be deemed to limit or restrict the rights and remedies of the Holder of
      such
      Class R Certificate now or hereafter existing at law or in equity.
      Notwithstanding the foregoing, however, in no event shall the Servicer have
      any
      liability (1) for any action or omission that is taken in accordance with and
      in
      compliance with the express terms of, or which is expressly permitted by the
      terms of, this Agreement, (2) for any Losses other than arising out of a
      negligent performance by the Servicer of its duties and obligations set forth
      herein, and (3) for any special or consequential damages to Certificateholders
      (in addition to payment of principal and interest on the
      Certificates).

     

    (b)  In
      the
      event that any REMIC created hereunder fails to qualify as a REMIC, loses its
      status as a REMIC, or incurs federal, state or local taxes as a result of a
      prohibited transaction or prohibited contribution under the REMIC Provisions
      due
      to the negligent performance by the Trustee of its duties and obligations set
      forth herein, the Trustee shall indemnify the Trust Fund against any and all
      Losses resulting from such negligence; provided, however, that the Trustee
      shall
      not be liable for any such Losses attributable to the action or inaction of
      the
      Servicer, the Depositor or the Holder of such Class R Certificate, as
      applicable, or for any such Losses resulting from misinformation provided by
      the
      Holder of such Class R Certificate on which the Trustee has relied. The
      foregoing shall not be deemed to limit or restrict the rights and remedies
      of
      the Holder of such Class R Certificate now or hereafter existing at law or
      in
      equity. Notwithstanding the foregoing, however, in no event shall the Trustee
      have any liability (1) for any action or omission that is taken in accordance
      with and in compliance with the express terms of, or which is expressly
      permitted by the terms of, this Agreement, (2) for any Losses other than arising
      out of a negligent performance by the Trustee of its duties and obligations
      set
      forth herein, and (3) for any special or consequential damages to
      Certificateholders (in addition to payment of principal and interest on the
      Certificates).

     

     

     

    ARTICLE
      X

     

    TERMINATION

     

    Section
      10.01.  Termination.

     

    (a)  The
      respective obligations and responsibilities of the Servicer, the Depositor
      and
      the Trustee created hereby (other than the obligation of the Trustee to make
      certain payments to Certificateholders after the final Distribution Date and
      the
      obligation of the Servicer to send certain notices as hereinafter set forth)
      shall terminate upon notice to the Trustee upon the earliest of (i) the
      Distribution Date on which the Certificate Principal Balances of the
      Certificates have been reduced to zero and any amounts owed to the Certificate
      Insurer have been paid in full, (ii) the final payment or other liquidation
      of
      the last Mortgage Loan in the Trust and any amounts owed to the Certificate
      Insurer have been paid in full and (iii) the optional purchase by the Terminator
      of the Mortgage Loans as described below. Notwithstanding the foregoing, in
      no
      event shall the trust created hereby continue beyond the earlier of (i) the
      Latest Possible Maturity Date and (ii) the expiration of 21 years from the
      death
      of the last survivor of the descendants of Joseph P. Kennedy, the late
      ambassador of the United States to the Court of St. James’s, living on the date
      hereof.

     

    Either
      (i) the Servicer, or (ii) if the Servicer fails to exercise such option and
      any
      portion of the Class A Certificates remain outstanding, the Certificate Insurer
      (either the Servicer or the Certificate Insurer, as applicable, the
“Terminator”), shall have the right to terminate this Agreement on any
      Distribution Date following the date on which the aggregate Stated Principal
      Balance of the Mortgage Loans and REO Properties as of the last day of the
      related Remittance Period is less than 10% of the aggregate Stated Principal
      Balance of the Mortgage Loans on the Cut-off Date, by purchasing, on or before
      such Distribution Date, all of the outstanding Mortgage Loans and REO Properties
      at a price (the “Termination Price”) equal to the sum of (i) 100% of the Stated
      Principal Balance of each Mortgage Loan (other than in respect of a Delinquent
      Mortgage Loan or REO Property) as of such date of purchase (assuming for this
      purpose that all amounts on deposit in the Certificate Account, net of amounts
      payable or reimbursable to the Servicer, have been distributed pursuant to
      Section 4.01 on or before such date of purchase) plus one month’s accrued
      interest thereon at the applicable Mortgage Rate (or if the Terminator is the
      Servicer, at the applicable Mortgage Rate less the Servicing Fee Rate), (ii)
      the
      lesser of (x) the appraised value of any Delinquent Mortgage Loan or REO
      Property as determined by the higher of two appraisals completed by two
      independent appraisers selected by the Servicer at the expense of the Servicer
      and (y) the Stated Principal Balance of each such Delinquent Mortgage Loan
      or
      Mortgage Loan related to such REO Property, in each case plus accrued and unpaid
      interest thereon at the applicable Mortgage Rate (or if the Terminator is the
      Servicer, at the applicable Mortgage Rate less the Servicing Fee Rate) and
      (iii)
      any related Net WAC Rate Carryover Amount and any outstanding amounts owed
      to
      the Certificate Insurer; provided that the purchase of the Mortgage Loans by
      the
      Terminator will not be permitted unless the total proceeds of such sale will
      be
      an amount sufficient to pay all principal and interest owed on the Class A
      Certificates and all amounts owed to the Certificate Insurer.

     

    In
      connection with any such purchase pursuant to the preceding paragraph, the
      Servicer shall remit to the Trustee for deposit in the Distribution Account
      all
      amounts then on deposit in the Certificate Account (after paying itself or
      reimbursing itself for unreimbursed Advances and Servicing Advances and unpaid
      Servicing Fees and withdrawing any other amounts payable to itself that it
      is
      permitted to withdraw from the Certificate Account), which deposit shall be
      deemed to have occurred immediately preceding such purchase. Any such purchase
      shall be accomplished by deposit of the Termination Price into the Distribution
      Account on the Business Day before the date of final distribution pursuant
      to
      Section 10.01(c).

     

    Upon
      the
      termination of the Trust Fund, any amounts remaining on deposit in the Excess
      Reserve Fund Account shall be released by the Trust Fund and distributed by
      the
      Trustee to the Class C Certificateholders or their designees. Upon termination
      of the Trust Fund, the Trustee will return the original Policy to the
      Certificate Insurer.

     

    With
      such
      repurchase by the Servicer, the Servicer shall acquire any rights or potential
      rights of the Certificateholders or the Trustee to causes of action against
      any
      Person relating to the Mortgage Loans or the origination of the Mortgage Loans,
      including, without limitation, the right to enforce any breach of a
      representation or warranty made at any time with respect to the Mortgage
      Loans.

     

    (b)  Notice
      of
      any termination, specifying the date upon which the Certificateholders may
      surrender their Certificates to the Trustee for payment of the final
      distribution and cancellation, shall be given promptly by the Trustee upon
      the
      Trustee receiving notice of such date from the Servicer, by letter to the
      Certificateholders mailed not earlier than the 15th
      day and
      not later than the 25th
      day of
      the month next preceding the month of such final distribution specifying (1)
      the
      date upon which final distribution of the Certificates will be made upon
      presentation and surrender of such Certificates at the office or agency of
      the
      Trustee therein designated, (2) the amount of any such final distribution and
      (3) that the Record Date otherwise applicable to such date of final distribution
      is not applicable, distributions being made only upon presentation and surrender
      of the Certificates at the office or agency of the Trustee therein
      specified.

     

    (c)  Upon
      presentation and surrender of the Certificates, the Trustee shall cause to
      be
      distributed to Holders of the Certificates on the date for such final
      distribution (which date may be but is not required to be a Distribution Date),
      in proportion to the Percentage Interests of their respective Certificates
      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 as if such date was the immediately following
      Distribution Date, plus any residual amounts in excess thereof that are
      available for such final distribution. By acceptance of the Class R
      Certificates, the Holders of the Class R Certificates agree, in connection
      with
      any termination hereunder, to assign and transfer any amounts in excess of
      the
      par value of the Mortgage Loans, and to the extent received in respect of such
      termination, to pay any such amounts to the Holders of the Class C
      Certificates.

     

    (d)  In
      the
      event that all Certificateholders shall not surrender their Certificates for
      final payment and cancellation on or before such final distribution, the Trustee
      shall take the actions set forth in Section 4.01(h).

     

    Section
      10.02.  Additional
      Termination Requirements.

     

    (a)  In
      the
      event that the Terminator exercises its purchase option as provided in Section
      10.01, each REMIC shall be terminated in accordance with the following
      additional requirements, unless the Trustee shall have been furnished with
      an
      Opinion of Counsel to the effect that the failure of the Trust to comply with
      the requirements of this Section will not (i) result in the imposition of taxes
      on “prohibited transactions” of the Trust as defined in Section 860F of the Code
      or (ii) cause any REMIC constituting part of the Trust Fund to fail to qualify
      as a REMIC at any time that any Certificates are outstanding:

     

    (i)  Within
      90
      days prior to the final Distribution Date, the Servicer shall adopt and the
      Trustee shall sign a plan of complete liquidation of each REMIC created
      hereunder meeting the requirements of a “Qualified Liquidation” under Section
      860F of the Code and any regulations thereunder; and

     

    (ii)  At
      or
      after the time of adoption of such a plan of complete liquidation and at or
      prior to the final Distribution Date, the Trustee shall sell all of the assets
      of the Trust Fund to the Servicer for cash pursuant to the terms of the plan
      of
      complete liquidation.

     

    (b)  By
      their
      acceptance of Certificates, the Holders thereof hereby agree to appoint the
      Trustee as their attorney in fact to: (i) adopt such a plan of complete
      liquidation (and the Certificateholders hereby appoint the Trustee as their
      attorney in fact to sign such plan) as appropriate; and (ii) to take such other
      action in connection therewith as may be reasonably required to carry out such
      plan of complete liquidation all in accordance with the terms
      hereof.

     

     

     

    ARTICLE
      XI

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      11.01.  Amendment.

     

    This
      Agreement may be amended from time to time by the Depositor, the Servicer and
      the Trustee, with the consent of the Certificate Insurer but 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 or modify 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 modify, eliminate
      or add to any provisions of this Agreement to such extent as shall be necessary
      or desirable to maintain the qualification of the Trust Fund as a REMIC at
      all
      times that any Certificate is outstanding or to avoid or minimize the risk
      of
      the imposition of any federal income tax on the Trust Fund pursuant to the
      Code
      that would be a claim against the Trust Fund; provided; that (1) such action
      shall not, as evidenced by either (a) an Opinion of Counsel delivered to the
      Trustee and the Certificate Insurer or (b) written notice to the Depositor,
      the
      Servicer 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 (without regard to
      the
      Policy), adversely affect in any material respect the interests of any
      Certificateholder and (2) in the case of an amendment pursuant to clause (iv)
      above, such action is necessary or desirable to maintain such qualification
      or
      to avoid or minimize the risk of the imposition of any such federal income
      tax,
      as evidenced by an Opinion of Counsel delivered to the Trustee and the
      Certificate Insurer.

     

    In
      addition, this Agreement may be amended from time to time by the Depositor,
      the
      Servicer and the Trustee with the consent of the Majority Certificateholders
      and
      with the consent of the Certificate Insurer for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      this Agreement or of modifying in any manner the rights of the Holders of
      Certificates; provided, however, that no such amendment shall (i) reduce in
      any
      manner the amount of, or delay the timing of, payments on the Certificates
      without the consent of the Holder of such Certificate, (ii) amend, modify,
      add
      to, rescind, or alter in any respect Section 11.15, notwithstanding any contrary
      provision of this Agreement, without the consent of the Holders of Certificates
      evidencing Percentage Interests aggregating not less than 66 2/3% (provided,
      however, that no Certificates held by the Servicer, the Seller, the Depositor
      or
      any Affiliate thereby shall be given effect for the purpose of calculating
      any
      such aggregation of Percentage Interests), (iii) modify, add to, rescind, alter,
      or amend in any respect any provision of this Agreement restricting the Trust
      Fund from holding any property or engaging in any activity that would disqualify
      the Trust Fund from being a qualifying special purpose entity under generally
      accepted accounting principles without the consent of the Holders of
      Certificates evidencing Percentage Interests aggregating not less than 66 2/3%
      (provided, however, that no Certificates held by the Servicer, the Seller,
      the
      Depositor or any Affiliate thereby shall be given effect for the purpose of
      calculating any such aggregation of Percentage Interests), or (iv) reduce the
      aforesaid percentages of Certificates the Holders of which are required to
      consent to any such amendment, without the consent of the Holders of all such
      Certificates then outstanding. Upon approval of an amendment, a copy of such
      amendment shall be sent to each Rating Agency.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      or
      enter into any amendment to this Agreement unless it shall have first received
      an Opinion of Counsel (addressed to the Trustee and the Certificate Insurer)
      to
      the effect that such amendment or the exercise of any power granted to the
      Servicer, the Depositor or the Trustee in accordance with such amendment (i)
      is
      authorized or permitted by the Agreement and (ii) will not result in the
      imposition of a tax on any REMIC created hereunder constituting part of the
      Trust Fund pursuant to the REMIC Provisions or cause any REMIC created hereunder
      constituting part of the Trust 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.

     

    Promptly
      after the execution of any such amendment the Trustee shall furnish a copy
      of
      such amendment to each Certificateholder.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this Section 11.01
      to approve the particular form of any proposed amendment, but it shall be
      sufficient if such consent shall approve the substance thereof. The manner
      of
      obtaining such consents and of evidencing the authorization of the execution
      thereof by Certificateholders shall be subject to such reasonable regulations
      as
      the Trustee may prescribe.

     

    The
      cost
      of any Opinion of Counsel to be delivered pursuant to this Section 11.01 shall
      be borne by the Person seeking the related amendment, but in no event shall
      such
      Opinion of Counsel be an expense of the Trustee.

     

    The
      Trustee may but shall not be obligated to enter into any amendment pursuant
      to
      this Section that affects its rights, duties and immunities under this Agreement
      or otherwise; provided however, that such consent shall not be unreasonably
      withheld.

     

    Section
      11.02.  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 properties subject
      to
      the Mortgages are situated, and in any other appropriate public recording office
      or elsewhere, such recordation to be effected by the Servicer at the expense
      of
      the Trust, but only upon direction of Certificateholders and the Certificate
      Insurer accompanied by an Opinion of Counsel to the effect that such recordation
      materially and beneficially affects the interests of the Certificateholders
      or
      the Certificate Insurer.

     

    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
      11.03.  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 and the Certificate Insurer 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
      (excluding any Certificates held by the Seller, the Servicer or any Affiliate)
      thereof 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 11.03 each and every Certificateholder and
      the
      Trustee shall be entitled to such relief as can be given either at law or in
      equity.

     

    Section
      11.04.  Governing
      Law; Jurisdiction.

     

    This
      Agreement shall be construed in accordance with the laws of the State of New
      York, and the obligations, rights and remedies of the parties hereunder shall
      be
      determined in accordance with such laws. With respect to any claim arising
      out
      of this Agreement, each party irrevocably submits to the exclusive jurisdiction
      of the courts of the State of New York and the United States District Court
      located in the Borough of Manhattan in The City of New York, and each party
      irrevocably waives any objection which it may have at any time to the laying
      of
      venue of any suit, action or proceeding arising out of or relating hereto
      brought in any such courts, irrevocably waives any claim that any such suit,
      action or proceeding brought in any such court has been brought in any
      inconvenient forum and further irrevocably waives the right to object, with
      respect to such claim, suit, action or proceeding brought in any such court,
      that such court does not have jurisdiction over such party, provided that
      service of process has been made by any lawful means.

     

    Section
      11.05.  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, by facsimile (with confirmation of receipt) or
      by
      express delivery service, to (a) in the case of the Seller, the Seller and/or
      Servicer, IndyMac Bank, F.S.B., 155 North Lake Avenue, Pasadena, California
      91101, Attention: Secondary Marketing, or such other address or telecopy number
      as may hereafter be furnished to the Depositor and the Trustee in writing by
      the
      Servicer, (b) in the case of the Trustee, Deutsche Bank National Trust Company,
      1761 East St. Andrew Place, Santa Ana, California 92705-4934, Attention: Trust
      Administration-IN06L4 (telecopy number: (714) 656-2626), or such other address
      or telecopy number as may hereafter be furnished to the Depositor and the
      Servicer in writing by the Trustee; (c) in the case of the Depositor, IndyMac
      ABS, Inc., 155 North Lake Avenue, Pasadena, California 91101, Attention:
      Secondary Marketing, and (d) in the case of the Certificate Insurer, Ambac
      Assurance Corporation, One State Street Plaza, New York, New York, 10004,
      Attention: Risk Management, Asset-Backed Securities (telecopy number: (212)
      363-1459) (confirmation: (212) 668-0340), with a copy to General Counsel, or
      such other address or telecopy number as may be furnished to the Servicer,
      the
      Certificate Insurer and the Trustee in writing by the Depositor. 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 Servicer Event of Termination 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.

     

    Section
      11.06.  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 or the rights of
      the
      Certificate Insurer.

     

    Section
      11.07.  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
      11.08.  Notice
      to the Rating Agencies and the Certificate Insurer.

     

    (a)  Each
      of
      the Trustee and the Servicer shall be obligated to use its best reasonable
      efforts promptly to provide notice to each Rating Agency and the Certificate
      Insurer with respect to each of the following of which a Responsible Officer
      of
      the Trustee or Servicer, as the case may be, has actual knowledge:

     

    (i)  any
      material change or amendment to this Agreement;

     

    (ii)  the
      occurrence of any Servicer Event of Termination that has not been cured or
      waived;

     

    (iii)  the
      resignation or termination of the Servicer or the Trustee;

     

    (iv)  the
      final
      payment to Holders of any Class of the Certificates;

     

    (v)  any
      change in the location of any Account; and

     

    (vi)  if
      the
      Trustee is acting as successor Servicer pursuant to Section 7.02 hereof, any
      event that would result in the inability of the Trustee to make
      Advances.

     

    (b)  In
      addition, the Trustee shall promptly make available to each Rating Agency and
      the Certificate Insurer copies of each Statement to Certificateholders described
      in Section 4.02 hereof and the Servicer shall promptly furnish to each Rating
      Agency and the Certificate Insurer copies of the following:

     

    (i)  each
      annual statement as to compliance described in Section 3.20 hereof;

     

    (ii)  each
      annual independent public accountants’ servicing report described in Section
      3.21 hereof; and

     

    (iii)  each
      notice delivered pursuant to Section 7.01(a) hereof which relates to the fact
      that the Servicer has not made an Advance.

     

    Any
      such
      notice pursuant to this Section 11.08 shall be in writing and shall be deemed
      to
      have been duly given if personally delivered or mailed by first class mail,
      postage prepaid, or by express delivery service to Moody’s Investors Service,
      Inc., 99 Church Street, New York, NY 10048, Attention: MBS Monitoring/IndyMac
      Residential Mortgage-Backed Trust Certificates, Series 2006-L4 and to Standard
      & Poor’s, a division of the McGraw-Hill Companies, Inc., 55 Water Street,
      41st floor, New York, New York 10041-0003, Attention: ABS Surveillance Group-
      New Assets, or such other addresses as the Rating Agencies may designate in
      writing to the parties hereto.

     

    Section
      11.09.  Further
      Assurances.

     

    Notwithstanding
      any other provision of this Agreement, neither the 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
      11.10.  Benefits
      of Agreement.

     

    Except
      as
      set forth in Section 11.12 and Section 11.16, nothing in this Agreement or
      in
      the Certificates, expressed or implied, shall give to any Person, other than
      the
      Certificateholders, the Certificate Insurer and the parties hereto and their
      successors hereunder, any benefit or any legal or equitable right, remedy or
      claim under this Agreement. The Certificate Insurer shall be an express
      third-party beneficiary of this Agreement.

     

    Section
      11.11.  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 Servicer. 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 11.11.

     

    (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.

     

    (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
      11.12.  Grant
      of Security Interest.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      by the Depositor to the Trustee, be, and be construed as, a sale of the Mortgage
      Loans by the Depositor and not a pledge of the Mortgage Loans to secure a debt
      or other obligation of the Depositor. However, in the event that,
      notwithstanding the aforementioned intent of the parties, the Mortgage Loans
      are
      held to be property of the Depositor, then, (a) it is the express intent of
      the
      parties that such conveyance be deemed a pledge of the Mortgage Loans by the
      Depositor to the Trustee to secure a debt or other obligation of the Depositor
      and (b)(1) this Agreement shall also be deemed to be a security agreement within
      the meaning of Articles 8 and 9 of the Uniform Commercial Code as in effect
      from
      time to time in the State of New York; (2) the conveyance provided for in
      Section 2.01 hereof shall be deemed to be a grant by the Depositor to the
      Trustee of a security interest in all of the Depositor’s right, title and
      interest in and to the Mortgage Loans and all amounts payable to the holders
      of
      the Mortgage Loans in accordance with the terms thereof and all proceeds of
      the
      conversion, voluntary or involuntary, of the foregoing into cash, instruments,
      securities or other property, including without limitation all amounts, other
      than investment earnings, from time to time held or invested in the Certificate
      Account and the Distribution Account, whether in the form of cash, instruments,
      securities or other property; (3) the obligations secured by such security
      agreement shall be deemed to be all of the Depositor’s obligations under this
      Agreement, including the obligation to provide to the Certificateholders the
      benefits of this Agreement relating to the Mortgage Loans and the Trust Fund;
      and (4) notifications to persons holding such property, and acknowledgments,
      receipts or confirmations from persons holding such property, shall be deemed
      notifications to, or acknowledgments, receipts or confirmations from, financial
      intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
      of perfecting such security interest under applicable law. Accordingly, the
      Depositor hereby grants to the Trustee a security interest in the Mortgage
      Loans
      and all other property described in clause (2) of the preceding sentence, for
      the purpose of securing to the Trustee the performance by the Depositor of
      the
      obligations described in clause (3) of the preceding sentence. Notwithstanding
      the foregoing, the parties hereto intend the conveyance pursuant to Section
      2.01
      to be a true, absolute and unconditional sale of the Mortgage Loans and assets
      constituting the Trust Fund by the Depositor to the Trustee.

     

    Section
      11.13.  Official
      Record.

     

    The
      Seller agrees that this Agreement is and shall remain at all times before the
      time at which this Agreement terminates an official record of the Seller as
      referred to in Section 13(e) of the Federal Deposit Insurance Act.

     

    Section
      11.14.  Protection
      of Assets.

     

    (a)  Except
      for transactions and activities entered into in connection with the
      securitization that is the subject of this agreement, the Trust created by
      this
      Agreement is not authorized and has no power to:

     

    (1) borrow
      money or issue debt;

     

    (2) merge
      with another entity, reorganize, liquidate or sell assets;

     

    (3) engage
      in
      any business or activities.

     

    (b)  Each
      party to this agreement agrees that it will not file an involuntary bankruptcy
      petition against the Trustee or the Trust Fund or initiate any other form of
      insolvency proceeding until at least one year and one day after the Certificates
      have been paid in full.

     

    Section
      11.15.  Qualifying
      Special Purpose Entity.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trust Fund shall not hold any
      property or engage in any activity that would disqualify the Trust Fund from
      being a qualifying special purpose entity under generally accepted accounting
      principles.

     

    Section
      11.16.  Rights
      of the Certificate Insurer.

     

    (a)  The
      Certificate Insurer is an express third-party beneficiary of this
      Agreement.

     

    (b)  The
      Trustee or the Depositor, as applicable, shall provide to the Certificate
      Insurer copies of any report, notice, Opinion of Counsel, Officers’ Certificate,
      request for consent or request for amendment to any document related hereto
      promptly upon the Trustee’s or the Depositor’s production or receipt thereof,
      but only to the extent that such item is required to be delivered to the
      Certificate Insurer hereunder.

     

    (c)  Unless
      a
      Certificate Insurer Default exists, the Trustee, the Servicer and the Depositor
      shall not agree to any amendment to this Agreement without first having obtained
      the prior written consent of the Certificate Insurer.

     

    (d)  So
      long
      as there does not exist a failure by the Certificate Insurer to make a required
      payment under the Policy, the Certificate Insurer shall have the right to
      exercise all rights of the Holders of the Insured Certificates under this
      Agreement without any consent of such Holders, and such Holders may exercise
      such rights only with the prior written consent of the Certificate Insurer,
      except as provided herein.

     

    (e)  The
      Certificate Insurer shall not be entitled to exercise any of its rights
      hereunder so long as there exists a failure by the Certificate Insurer to make
      a
      required payment under the Policy.

     

    

    IN
      WITNESS WHEREOF, the Depositor, the Seller, the Servicer and the Trustee 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.

     

    INDYMAC
      ABS, INC.,

    as
      Depositor

     

    By: /s/
      Jill Jacobson   

    Name:
      Jill
      Jacobson   

    Title:
       
      Vice
      President   

    

    INDYMAC
      BANK, F.S.B.

    as
      Seller
      and Servicer

     

    By: /s/
      Jill Jacobson   

    Name:
      Jill
      Jacobson   

    Title:
       
      Vice
      President    

    

    

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY,

    as
      Trustee

     

    By: /s/
      Jennifer Hermansader  

    Name: 
      Jennifer Hermansader  

    Title:
       
      Associate   

    

    

    By: /s/
      Ronaldo Reyes   

    Name: 
      Ronaldo Reyes   

    Title:
       
      Vice
      President 

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

    On
      the
      ___th day of December, 2006 before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a  _____________________
      of IndyMac ABS 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.

     

    __________________________

    Notary
      Public

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      __day of December, 2006 before me, a notary public in and for said State,
      personally appeared __________________________ known to me to be a  ____________________ 
      of
      IndyMac Bank, F.S.B., 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. 

     

    __________________________

    Notary
      Public

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      __th day of December, 2006 before me, a notary public in and for said State,
      personally appeared _________________________ to be an
      ____________________________ of Deutsche Bank National Trust Company that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written. 

     

    __________________________

    Notary
      Public

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      ___th day of December, 2006 before me, a notary public in and for said State,
      personally appeared ___________________________ to be an
      __________________________ of Deutsche Bank National Trust Company that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written. 

     

    __________________________

    Notary
      Public

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      EXHIBIT
        A-1

       

      FORM
        OF
        CLASS A CERTIFICATE

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUSTEE 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”).

       

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
        PROCEDURES DESCRIBED HEREIN.

       

      

       

      
        	
                Certificate
                  No.

              	
                :

              	
                1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                First
                  Distribution Date 

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                Initial
                  Certificate Balance of this Certificate (“Denomination”)

              	
                :

              	
                $_____

              
	 	 	 
	
                Initial
                  Certificate Balances of all Certificates of this Class

              	
                :

              	
                $_____

              
	 	 	 
	
                CUSIP

              	
                :

              	
                ___________

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                Variable

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        A

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

      

      Principal
        in respect of this Certificate is distributable monthly as stated herein.
        Accordingly, the Certificate Principal Balance at any time may be less than
        the
        Certificate Principal Balance as set forth herein. This Certificate does
        not
        evidence an obligation of, or an interest in, and is not guaranteed by the
        Depositor, the Seller, the Servicer 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 (obtained by dividing the Denomination of this
        Certificate by the aggregate of the Denominations of all Certificates of
        the
        Class to which this Certificate belongs) in certain monthly distributions
        pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
        specified above (the “Agreement”) among IndyMac ABS, Inc., as depositor (the
“Depositor”), IndyMac Bank, F.S.B., as seller (in such capacity, the “Seller”)
        and as servicer (in such capacity, the “Servicer”), and Deutsche Bank National
        Trust Company, as trustee (the “Trustee”). To the extent not defined herein, the
        capitalized terms used herein have the meanings assigned in the Agreement.
        This
        Certificate is issued under and is subject to the terms, provisions and
        conditions of the Agreement, to which Agreement the Holder of this Certificate
        by virtue of the acceptance hereof assents and by which such Holder is
        bound.

       

      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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any Person using “Plan Assets” to acquire this Certificate shall be made except
        in accordance with Section 5.02(d) of the Agreement.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually countersigned by an authorized signatory
        of the
        Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        ___________ __, 200_

      

      
        	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY,

                not
                  in its individual capacity, but solely as Trustee

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                By:

              	 
	 	 
	 	 

      

      

      

      
        	
                Countersigned:

              	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                By:

              	 
	 	
                Authorized
                  Signatory of

                DEUTSCHE
                  BANK NATIONAL TRUST
                  COMPANY, not in its

                individual
                  capacity, but
                  solely as Trustee

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage-Backed Trust, of the Series
        specified on the face hereof (herein collectively called the “Certificates”),
        and representing a beneficial ownership interest in the Trust created 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 such 25th day is not a Business Day, the Business Day
        immediately following (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. The Record Date applicable to each Distribution
        Date
        is (i) with respect to each Class A Certificate, Class IO Certificate, the
        Subordinated Certificates and any Book-Entry Certificate, the Business Day
        immediately preceding such Distribution Date and (ii) the Class C Certificates,
        the Class P Certificates, the Class R Certificates and any Definitive
        Certificate, the last Business Day of the month immediately preceding the
        month
        in which such Distribution Date occurs (or, in the case of the first
        Distribution Date, the Closing Date).

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Trustee in writing at least five Business Days prior to the
        related
        Record Date and such Certificateholder shall satisfy the conditions to receive
        such form of payment set forth in the Agreement, or, if not, by check mailed
        by
        first class mail to the address of such Certificateholder appearing in the
        Certificate Register. The final distribution on each Certificate will be
        made in
        like manner, but only upon presentment and surrender of such Certificate
        at the
        Corporate Trust Office or such other location 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 Servicer and the Trustee with the consent of the Certificate
        Insurer and the Holders of Certificates affected by such amendment evidencing
        the requisite Percentage Interest, as provided 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Depositor, the Servicer, the Seller 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 none of the Depositor,
        the
        Trustee, or any such agent shall be affected by any notice to the
        contrary.

      

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class A Certificates remain outstanding, the Certificate Insurer,
        will have the right to repurchase, in whole, from the Trust all remaining
        Mortgage Loans and all property acquired in respect of the Mortgage Loans
        at a
        purchase price determined as provided in the Agreement. The obligations and
        responsibilities created by the Agreement will terminate as provided in Section
        10.01 of the Agreement.

      

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      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 Trustee 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

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

      

       

      

      EXHIBIT
        A-2

       

      FORM
        OF
        CLASS IO CERTIFICATE

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUSTEE 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 IS ENTITLED TO PAYMENTS OF INTEREST ONLY AS DESCRIBED IN THE
        POOLING
        AND SERVICING AGREEMENT REFERRED TO HEREIN.

       

      
        	
                Certificate
                  No.

              	
                :

              	
                1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                First
                  Distribution Date 

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                Initial
                  Notional Balance of this Certificate (“Denomination”)

              	
                :

              	
                $_____

              
	 	 	 
	
                Initial
                  Notional Balances of all Certificates of this Class

              	
                :

              	
                $_____

              
	 	 	 
	
                CUSIP

              	
                :

              	
                ___________

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                Variable

              

      

      

       

      THE
        NOTIONAL AMOUNT OF THIS CERTIFICATE WILL DECLINE MONTHLY AND FOLLOWING THE
        DECEMBER 2008 DISTRIBUTION DATE WILL BE ZERO. ACCORDINGLY, THE OUTSTANDING
        NOTIONAL AMOUNT HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
        AS
        THE DENOMINATION OF THIS CERTIFICATE.

       

      

       

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        IO

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

      

      This
        Certificate does not evidence an obligation of, or an interest in, and is
        not
        guaranteed by the Depositor, the Seller, the Servicer 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 a Percentage Interest evidenced
        by this Certificate (obtained by dividing the denomination of this Certificate
        by the aggregate Notional Balance of the Class IO Certificates as of the
        Issue
        Date) in that certain beneficial ownership interest evidenced by all the
        Class
        IO Certificates in the Trust Fund created pursuant to a Pooling and Servicing
        Agreement dated as of the Cut-off Date specified above (the “Agreement”) among
        IndyMac ABS, Inc., as depositor (the “Depositor”), IndyMac Bank, F.S.B., as
        seller (in such capacity, the “Seller”) and as servicer (in such capacity, the
“Servicer”), and Deutsche Bank National Trust Company, as trustee (the
“Trustee”). To the extent not defined herein, the capitalized terms used herein
        have the meanings assigned in the Agreement. This Certificate is issued under
        and is subject to the terms, provisions and conditions of the Agreement,
        to
        which Agreement the Holder of this Certificate by virtue of the acceptance
        hereof assents and by which such Holder is bound.

       

      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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any Person using “Plan Assets” to acquire this Certificate shall be made except
        in accordance with Section 5.02(d) of the Agreement.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually countersigned by an authorized signatory
        of the
        Trustee.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        ___________ __, 200_

      

      
        

        
          	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,

                  not
                    in its individual capacity, but solely as Trustee

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	 
	 	 
	 	 

        

        

        

        
          	
                  Countersigned:

                	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory of

                  DEUTSCHE
                    BANK NATIONAL TRUST
                    COMPANY, not in its

                  individual
                    capacity, but
                    solely as Trustee

                

        

        

      

      

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage-Backed Trust, of the Series
        specified on the face hereof (herein collectively called the “Certificates”),
        and representing a beneficial ownership interest in the Trust created 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 such 25th day is not a Business Day, the Business Day
        immediately following (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. The Record Date applicable to each Distribution
        Date
        is (i) with respect to each Class A Certificate, Class IO Certificate, the
        Subordinated Certificates and any Book-Entry Certificate, the Business Day
        immediately preceding such Distribution Date and (ii) the Class C Certificates,
        the Class P Certificates, the Class R Certificates and any Definitive
        Certificate, the last Business Day of the month immediately preceding the
        month
        in which such Distribution Date occurs (or, in the case of the first
        Distribution Date, the Closing Date).

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Trustee in writing at least five Business Days prior to the
        related
        Record Date and such Certificateholder shall satisfy the conditions to receive
        such form of payment set forth in the Agreement, or, if not, by check mailed
        by
        first class mail to the address of such Certificateholder appearing in the
        Certificate Register. The final distribution on each Certificate will be
        made in
        like manner, but only upon presentment and surrender of such Certificate
        at the
        Corporate Trust Office or such other location 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 Servicer and the Trustee with the consent of the Certificate
        Insurer and the Holders of Certificates affected by such amendment evidencing
        the requisite Percentage Interest, as provided 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Depositor, the Servicer, the Seller 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 none of the Depositor,
        the
        Trustee, or any such agent shall be affected by any notice to the
        contrary.

      

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class IO Certificates remain outstanding, the Certificate
        Insurer, will have the right to repurchase, in whole, from the Trust all
        remaining Mortgage Loans and all property acquired in respect of the Mortgage
        Loans at a purchase price determined as provided in the Agreement. The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 10.01 of the Agreement.

      

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      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 Trustee 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

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

      

       

      EXHIBIT
        A-3

       

      FORM
        OF
        CLASS M CERTIFICATES

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUSTEE 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”).

       

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
        PROCEDURES DESCRIBED HEREIN.

       

      THIS
        CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE CLASS IO
        CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
        REFERRED TO HEREIN.

       

      
        	
                Certificate
                  No.

              	
                :

              	
                1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                First
                  Distribution Date 

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                Initial
                  Certificate Balance of this Certificate (“Denomination”)

              	
                :

              	
                $_____

              
	 	 	 
	
                Initial
                  Certificate Balances of all Certificates of this Class

              	
                :

              	
                $_____

              
	 	 	 
	
                CUSIP

              	
                :

              	
                ___________

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                Variable

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        M

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

      

      Principal
        in respect of this Certificate is distributable monthly as stated herein.
        Accordingly, the Certificate Principal Balance at any time may be less than
        the
        Certificate Principal Balance as set forth herein. This Certificate does
        not
        evidence an obligation of, or an interest in, and is not guaranteed by the
        Depositor, the Seller, the Servicer 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 (obtained by dividing the Denomination of this
        Certificate by the aggregate of the Denominations of all Certificates of
        the
        Class to which this Certificate belongs) in certain monthly distributions
        pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
        specified above (the “Agreement”) among IndyMac ABS, Inc., as depositor (the
“Depositor”), IndyMac Bank, F.S.B., as seller (in such capacity, the “Seller”)
        and as servicer (in such capacity, the “Servicer”), and Deutsche Bank National
        Trust Company, as trustee (the “Trustee”). To the extent not defined herein, the
        capitalized terms used herein have the meanings assigned in the Agreement.
        This
        Certificate is issued under and is subject to the terms, provisions and
        conditions of the Agreement, to which Agreement the Holder of this Certificate
        by virtue of the acceptance hereof assents and by which such Holder is
        bound.

       

      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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any Person using “Plan Assets” to acquire this Certificate shall be made except
        in accordance with Section 5.02(d) of the Agreement.

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually countersigned by an authorized signatory
        of the
        Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        __________ __, 200_

       

      
        

        
          	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,

                  not
                    in its individual capacity, but solely as Trustee

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	 
	 	 
	 	 

        

        

        

        
          	
                  Countersigned:

                	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory of

                  DEUTSCHE
                    BANK NATIONAL TRUST
                    COMPANY, not in its

                  individual
                    capacity, but
                    solely as Trustee

                

        

        

 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage-Backed Certificates, of the
        Series specified on the face hereof (herein collectively called the
“Certificates”), and representing a beneficial ownership interest in the Trust
        created 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 such 25th day is not a Business Day, the Business Day
        immediately following (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. The Record Date applicable to each Distribution
        Date
        is (i) with respect to each Class A Certificate, Class IO Certificate, the
        Subordinated Certificates and any Book-Entry Certificate, the Business Day
        immediately preceding such Distribution Date and (ii) the Class C Certificates,
        the Class P Certificates, the Class R Certificates and any Definitive
        Certificate, the last Business Day of the month immediately preceding the
        month
        in which such Distribution Date occurs (or, in the case of the first
        Distribution Date, the Closing Date).

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Trustee in writing at least five Business Days prior to the
        related
        Record Date and such Certificateholder shall satisfy the conditions to receive
        such form of payment set forth in the Agreement, or, if not, by check mailed
        by
        first class mail to the address of such Certificateholder appearing in the
        Certificate Register. The final distribution on each Certificate will be
        made in
        like manner, but only upon presentment and surrender of such Certificate
        at the
        Corporate Trust Office or such other location 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 Servicer and the Trustee with the consent of the Certificate
        Insurer and the Holders of Certificates affected by such amendment evidencing
        the requisite Percentage Interest, as provided 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Depositor, the Servicer, the Seller 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 none of the Depositor,
        the
        Trustee, or any such agent shall be affected by any notice to the
        contrary.

      

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class A Certificates remain outstanding, the Certificate Insurer,
        will have the right to repurchase, in whole, from the Trust all remaining
        Mortgage Loans and all property acquired in respect of the Mortgage Loans
        at a
        purchase price determined as provided in the Agreement. The obligations and
        responsibilities created by the Agreement will terminate as provided in Section
        10.01 of the Agreement.

      

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      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 Trustee 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

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

      

      EXHIBIT
        A-4

      

      FORM
        OF
        CLASS B CERTIFICATES

      

      THIS
        CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED
        (THE “SECURITIES 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 OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION UNDER THE SECURITIES ACT.

       

      THE
        HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES NOT TO OFFER,
        SELL OR
        OTHERWISE TRANSFER SUCH CERTIFICATE EXCEPT IN ACCORDANCE WITH ALL APPLICABLE
        STATE SECURITIES LAWS AND (A) PURSUANT TO A REGISTRATION STATEMENT WHICH
        HAS
        BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (B) FOR SO LONG AS THIS
        CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
        ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A IN A TRANSACTION MEETING
        THE REQUIREMENTS OF RULE 144A.

       

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
        PROCEDURES DESCRIBED 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 IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS IO
        CERTIFICATES AND THE CLASS M CERTIFICATES TO THE EXTENT DESCRIBED IN THE
        POOLING
        AND SERVICING AGREEMENT REFERRED TO HEREIN.

       

      
        	
                Certificate
                  No.

              	
                :

              	
                1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                First
                  Distribution Date 

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                Initial
                  Certificate Balance of this Certificate (“Denomination”)

              	
                :

              	
                $_____

              
	 	 	 
	
                Initial
                  Certificate Balances of all Certificates of this Class

              	
                :

              	
                $_____

              
	 	 	 
	
                CUSIP

              	
                :

              	
                ___________

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                Variable

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        B

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

      

      Principal
        in respect of this Certificate is distributable monthly as set forth herein.
        Accordingly, the Certificate Principal Balance of this Class B Certificate
        at
        any time may be less than the Initial Certificate Principal Balance set forth
        on
        the face hereof. This Class B Certificate does not evidence an obligation
        of, or
        an interest in, and is not guaranteed by the Depositor, the Servicer, or
        the
        Trustee referred to below or any of their respective affiliates.

       

      This
        certifies that [___] is the registered owner of the Percentage Interest
        evidenced by this Class B Certificate (obtained by dividing the Denomination
        of
        this Class B Certificate by the Initial Certificate Principal Balance of
        this
        Class) in certain monthly distributions with respect to a Trust consisting
        primarily of the Mortgage Loans deposited by IndyMac ABS, Inc. (the
“Depositor”). The Trust was created pursuant to a Pooling and Servicing
        Agreement dated as of December 1, 2006 (the “Agreement”) among the Depositor,
        IndyMac Bank, F.S.B., as seller (the “Seller”) and servicer (the “Servicer”) and
        Deutsche Bank National Trust Company, as Trustee (the “Trustee”). To the extent
        not defined herein, the capitalized terms used herein have the meanings assigned
        in the Agreement. This Class B Certificate is issued under and is subject
        to the
        terms, provisions and conditions of the Agreement, to which Agreement the
        Holder
        of this Class B Certificate by virtue of the acceptance hereof assents and
        by
        which such Holder is bound.

       

      No
        transfer of a Certificate of this Class shall be made unless such transfer
        is
        made pursuant to an effective registration statement under the Act and any
        applicable state securities laws or is exempt from the registration requirements
        under said Act and such laws. In the event of any such transfer of any Ownership
        Interest in any Private Certificate that is a Book-Entry Certificate, except
        with respect to the initial transfer of any such Certificate by the Depositor,
        such transfer shall be required to be made in reliance upon Rule 144A under
        the
        1933 Act, and the transferor will be deemed to have made each of the
        representations and warranties set forth on Exhibit L hereto in respect of
        such
        interest as if it was evidenced by such Private Certificate and the transferee
        will be deemed to have made each of the representations and warranties set
        forth
        in the Form of Rule 144A Investment Letter included as part of Exhibit J
        hereto
        in respect of such interest as if it was evidenced by a Definitive Certificate.
        The Certificate Owner of any such Ownership Interest in any such Private
        Certificate desiring to effect such transfer shall, and does hereby agree
        to,
        indemnify the Trustee 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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any Person using “Plan Assets” to acquire this Certificate shall be made except
        in accordance with Section 5.02(d) of the Agreement.

       

      Reference
        is hereby made to the further provisions of this Class B 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
        Class B Certificate shall not be entitled to any benefit under the Agreement
        or
        be valid for any purpose unless manually countersigned by an authorized
        signatory of the Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        __________ __, 200_

      

       

      
        

        
          	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,

                  not
                    in its individual capacity, but solely as Trustee

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	 
	 	 
	 	 

        

        

        

        
          	
                  Countersigned:

                	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory of

                  DEUTSCHE
                    BANK NATIONAL TRUST
                    COMPANY, not in its

                  individual
                    capacity, but
                    solely as Trustee

                

        

        

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage-Backed Trust 2006-L4, Mortgage
        Backed Certificates, Series 2006-L4 (herein collectively called the
“Certificates”), and representing a beneficial ownership interest in the Trust
        created 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 such 25th day is not a Business Day then the first Business
        Day following such Distribution Date (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 by check or money order mailed to the address
        of the person entitled thereto as it appears on the Certificate Register
        or by
        wire transfer or otherwise, as set forth in the Agreement. 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
        Trustee 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 Servicer and the Trustee and of 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Servicer, the Depositor 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 none of the Depositor, the Servicer, the
        Trustee or any such agent shall be affected by any notice to the
        contrary.

       

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class A Certificates remain outstanding, the Certificate Insurer,
        will have the right to repurchase, in whole, from the Trust all remaining
        Mortgage Loans and all property acquired in respect of the Mortgage Loans
        at a
        purchase price determined as provided in the Agreement. The obligations and
        responsibilities created by the Agreement will terminate as provided in Section
        10.01 of the Agreement.

      

      Capitalized
        terms used herein that are defined in the Agreement shall have the meanings
        ascribed to them in the Agreement, and nothing herein shall be deemed
        inconsistent with that meaning.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      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 Trustee 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

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

      

      

       

      EXHIBIT
        A-5

       

      FORM
        OF
        CLASS C CERTIFICATES

       

      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 “SECURITIES 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 OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION UNDER THE SECURITIES ACT.

      

      ANY
        RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER
        THE
        ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT
        REFERRED TO HEREIN.

      

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
        PROCEDURES DESCRIBED HEREIN.

      

      
        	
                Certificate
                  No.

              	
                :

              	
                1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                First
                  Distribution Date 

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                Percentage
                  Interest of this Certificate

                (“Denomination”)

              	
                :

              	
                100%

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        C

       

      

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

      

      The
        Certificate Principal Balance of this Class C Certificate at any time may
        be
        greater than or less than the Initial Certificate Principal Balance set forth
        on
        the face hereof. The Notional Amount of this Class C Certificate at any time
        may
        be less than the Initial Notional Amount set forth on the face hereof. This
        Class C Certificate does not evidence an obligation of, or an interest in,
        and
        is not guaranteed by the Depositor, the Servicer, or the Trustee referred
        to
        below or any of their respective affiliates.

       

      This
        certifies that [__] is the registered owner of the Percentage Interest evidenced
        by this Class C Certificate (obtained by dividing the Denomination of this
        Class
        C Certificate by the Initial Notional Amount of this Class) in certain
        distributions with respect to a Trust consisting primarily of the Mortgage
        Loans
        deposited by IndyMac ABS, Inc. (the “Depositor”). The Trust was created pursuant
        to a Pooling and Servicing Agreement dated as of the Cut-off Date (the
“Agreement”) among the Depositor, IndyMac Bank, F.S.B., as seller (the “Seller”)
        and servicer (the “Servicer”) and Deutsche Bank National Trust Company, as
        Trustee (the “Trustee”). To the extent not defined herein, the capitalized terms
        used herein have the meanings assigned in the Agreement. This Class C
        Certificate is issued under and is subject to the terms, provisions and
        conditions of the Agreement, to which Agreement the Holder of this Class
        C
        Certificate by virtue of the acceptance hereof assents and by which such
        Holder
        is bound.

       

      No
        transfer of a Certificate of this Class shall be made unless such transfer
        is
        made pursuant to an effective registration statement under the Act and any
        applicable state securities laws or is exempt from the registration requirements
        under said Act and such laws. In the event of any such transfer (i) unless
        such
        transfer is made in reliance upon Rule 144A under the 1933 Act (as evidenced
        by
        the investment letter delivered to the Trustee, in substantially the form
        of the
        Form of Rule 144A Investment Letter included as part of Exhibit J to the
        Agreement), the Trustee and the Depositor shall require a written Opinion
        of
        Counsel (which may be in-house counsel) acceptable to and in form and substance
        reasonably satisfactory to the Trustee and the Depositor that such transfer
        may
        be made pursuant to an exemption, describing the applicable exemption and
        the
        basis therefor, form the 1933 Act or is being made pursuant to the 1933 Act,
        which Opinion of Counsel shall not be an expense of the Trustee or the Depositor
        or (ii) the Trustee shall require the transferor to execute a transferor
        certificate (in substantially the form of Exhibit L of the Agreement) and
        the
        transferee to execute an investment letter (in substantially the form attached
        hereto as Exhibit J of the Agreement) acceptable to and in form and substance
        reasonably satisfactory to the Depositor and the Trustee certifying to the
        Depositor and the Trustee the facts surrounding such transfer, which investment
        letter shall not be an expense of the Trustee or the Depositor. The Holder
        hereof desiring to effect such transfer shall, and does hereby agree to,
        indemnify the Trustee 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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any person using Plan Assets to acquire this Certificate shall be made except
        in
        accordance with Section 5.02(d) of the Agreement.

       

      Reference
        is hereby made to the further provisions of this Class C 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
        Class C Certificate shall not be entitled to any benefit under the Agreement
        or
        be valid for any purpose unless manually countersigned by an authorized
        signatory of the Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        ___________ __, 200_

      

       

      
        

        
          	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,

                  not
                    in its individual capacity, but solely as Trustee

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	 
	 	 
	 	 

        

        

        

        
          	
                  Countersigned:

                	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory of

                  DEUTSCHE
                    BANK NATIONAL TRUST
                    COMPANY, not in its

                  individual
                    capacity, but
                    solely as Trustee

                

        

        

 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage-Backed Trust 2006-L4, Mortgage
        Backed Certificates, Series 2006-L4 (herein collectively called the
“Certificates”), and representing a beneficial ownership interest in the Trust
        created 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 such 25th day is not a Business Day then the first Business
        Day following such Distribution Date (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 by check or money order mailed to the address
        of the person entitled thereto as it appears on the Certificate Register
        or by
        wire transfer or otherwise, as set forth in the Agreement. 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
        Trustee 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 Servicer and the Trustee and of 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Servicer, the Depositor 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 none of the Depositor, the Servicer, the
        Trustee or any such agent shall be affected by any notice to the
        contrary.

       

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class A Certificates remain outstanding, the Certificate Insurer,
        will have the right to repurchase, in whole, from the Trust all remaining
        Mortgage Loans and all property acquired in respect of the Mortgage Loans
        at a
        purchase price determined as provided in the Agreement. The obligations and
        responsibilities created by the Agreement will terminate as provided in Section
        10.01 of the Agreement.

      

       

      Capitalized
        terms used herein that are defined in the Agreement shall have the meanings
        ascribed to them in the Agreement, and nothing herein shall be deemed
        inconsistent with that meaning.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      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 Trustee 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

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

       

      

       

      EXHIBIT
        A-6

       

      FORM
        OF
        CLASS R CERTIFICATES

      

       

      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”).

       

      THIS
        CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED
        (THE “SECURITIES 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 OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION UNDER THE SECURITIES ACT.

       

      ANY
        RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER
        THE
        ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT
        REFERRED TO HEREIN.

       

      THIS
        CLASS R CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND
        WILL
        NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE WITH
        THE
        PROVISIONS OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
        HEREIN.

       

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
        PROCEDURES DESCRIBED HEREIN.

      

      
        	
                Certificate
                  No.

              	
                :

              	
                1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                ___________
                  __, 200_

              
	 	 	 
	
                Aggregate
                  Percentage Interest of the Class R Certificates as of the Issue
                  Date

              	
                :

              	
                100.00%

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        R

       

      

      evidencing
        the distributions allocable to the Class R Certificates with respect to a
        Trust
        consisting primarily of a pool of fixed and adjustable-rate, residential
        lot
        mortgage loans (the “Mortgage Loans”) secured by parcels of land that have been
        improved for residential use. 

      

      IndyMac
        ABS, Inc., as Depositor

      

      This
        Certificate does not evidence an obligation of, or an interest in, and is
        not
        guaranteed by the Depositor, the Servicer or the Trustee referred to below
        or
        any of their respective affiliates.

       

      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 IndyMac ABS, Inc.
        (the
“Depositor”). The Trust was created pursuant to a Pooling and Servicing
        Agreement dated as of the Cut-off Date (the “Agreement”) among the Depositor,
        IndyMac Bank, F.S.B., as seller (the “Seller”) and Servicer (the “Servicer”) and
        Deutsche Bank National Trust Company, as trustee (the “Trustee”). To the extent
        not defined herein, the capitalized terms used herein have the meanings assigned
        in the Agreement. This Certificate is issued under and is subject to the
        terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of the acceptance hereof assents and by which
        such
        Holder is bound.

       

      This
        Certificate does not have a principal balance or pass-through rate and will
        be
        entitled to distributions only to the extent set forth in the Agreement.
        In
        addition, 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
        Trustee.

       

      No
        transfer of a Certificate of this Class shall be made unless such transfer
        is
        made pursuant to an effective registration statement under the Act and any
        applicable state securities laws or is exempt from the registration requirements
        under said Act and such laws. In the event of any such transfer (i) unless
        such
        transfer is made in reliance upon Rule 144A under the 1933 Act (as evidenced
        by
        the investment letter delivered to the Trustee, in substantially the form
        of the
        Form of Rule 144A Investment Letter included as part of Exhibit J to the
        Agreement), the Trustee and the Depositor shall require a written Opinion
        of
        Counsel (which may be in-house counsel) acceptable to and in form and substance
        reasonably satisfactory to the Trustee and the Depositor that such transfer
        may
        be made pursuant to an exemption, describing the applicable exemption and
        the
        basis therefor, form the 1933 Act or is being made pursuant to the 1933 Act,
        which Opinion of Counsel shall not be an expense of the Trustee or the Depositor
        or (ii) the Trustee shall require the transferor to execute a transferor
        certificate (in substantially the form of Exhibit L of the Agreement) and
        the
        transferee to execute an investment letter (in substantially the form attached
        hereto as Exhibit J of the Agreement) acceptable to and in form and substance
        reasonably satisfactory to the Depositor and the Trustee certifying to the
        Depositor and the Trustee the facts surrounding such transfer, which investment
        letter shall not be an expense of the Trustee or the Depositor. The Holder
        hereof desiring to effect such transfer shall, and does hereby agree to,
        indemnify the Trustee 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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any person using Plan Assets to acquire this Certificate shall be made except
        in
        accordance with Section 5.02(d) of the Agreement.

       

      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 and shall promptly notify the
        Trustee
        of any change or impending change in its status as a Permitted Transferee;
        (ii)
        no Person shall acquire an Ownership Interest in this Certificate unless
        such
        Ownership Interest is a pro rata undivided interest; (iii) in connection
        with
        any proposed transfer of any Ownership Interest in this Certificate, the
        Trustee
        shall as a condition to registration of the transfer, require delivery to
        it, in
        form and substance satisfactory to it, of each of the following: (a) an
        affidavit in the form of Exhibit O to the Agreement from the proposed transferee
        to the effect that such transferee is a Permitted Transferee and that it
        is not
        acquiring its Ownership Interest in the Class R Certificate that is the subject
        of the proposed transfer as a nominee, trustee or agent for any Person who
        is
        not a Permitted Transferee; and (b) a covenant of the proposed transferee
        to the
        effect that the proposed transferee agrees to be bound by and to abide by
        the
        transfer restrictions applicable to the Class R Certificates; (iv) any attempted
        or purported transfer of any Ownership Interest in this Certificate in violation
        of the provisions of this Section shall be absolutely null and void and shall
        vest no rights in the purported transferee.

       

      Reference
        is hereby made to the further provisions of this Class R 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 countersigned by an authorized signatory
        of the
        Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        ___________ __, 200_

       

      
        

        
          	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,

                  not
                    in its individual capacity, but solely as Trustee

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	 
	 	 
	 	 

        

        

        

        
          	
                  Countersigned:

                	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory of

                  DEUTSCHE
                    BANK NATIONAL TRUST
                    COMPANY, not in its

                  individual
                    capacity, but
                    solely as Trustee

                

        

        

 

      

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage Backed Trust 2006-L4, Mortgage
        Backed Certificates, Series 2006-L4 (herein collectively called the
“Certificates”), and representing a beneficial ownership interest in the Trust
        created 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 such 25th day is not a Business Day then the first Business
        Day following such Distribution Date (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 by check or money order mailed to the address
        of the person entitled thereto as it appears on the Certificate Register
        or by
        wire transfer or otherwise, as set forth in the Agreement. 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
        Trustee 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 Servicer and the Trustee and of 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Servicer, the Depositor 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 none of the Depositor, the Servicer, the
        Trustee or any such agent shall be affected by any notice to the
        contrary.

       

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class A Certificates remain outstanding, the Certificate Insurer,
        will have the right to repurchase, in whole, from the Trust all remaining
        Mortgage Loans and all property acquired in respect of the Mortgage Loans
        at a
        purchase price determined as provided in the Agreement. The obligations and
        responsibilities created by the Agreement will terminate as provided in Section
        10.01 of the Agreement.

      

      Capitalized
        terms used herein that are defined in the Agreement shall have the meanings
        ascribed to them in the Agreement, and nothing herein shall be deemed
        inconsistent with that meaning.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM - as tenants in common

              	
                UNIF
                  GIFT MIN ACT - Custodian

              
	
                TEN
                  ENT - as tenants by the entireties

              	
                (Cust)
                  (Minor) under

                Uniform
                  Gifts to Minors Act

              
	
                JT
                  TEN - as joint tenants with 

                right
                  of survivorship and not as

                tenants
                  in common

              	
                _____________

                (State)

              

      

      

      

      Additional
        abbreviations may also be used though not in the above list.

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
        unto

      

      
        	 	 	 
	 	 	 
	 	 	 

      

      (Please
        print or typewrite name 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 Trustee 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

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

       

      

       

      

       

      EXHIBIT
        A-7

       

      FORM
        OF
        CLASS P CERTIFICATES

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE WITH
        THE
        PROVISIONS OF THE AGREEMENT REFERRED TO 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 “SECURITIES 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 OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
        REGISTRATION UNDER THE SECURITIES ACT.

      

      ANY
        RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER
        THE
        ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT
        REFERRED TO HEREIN.

      

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED (“ERISA”), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
        PROCEDURES DESCRIBED HEREIN.

       

      

        
          	
                  Certificate
                    No.

                	
                  :

                	
                  1

                
	 	 	 
	
                  Cut-off
                    Date

                	
                  :

                	
                  ___________
                    __, 200_

                
	 	 	 
	
                  First
                    Distribution Date 

                	
                  :

                	
                  ___________
                    __, 200_

                
	 	 	 
	
                  Initial
                    Certificate Balances of all Certificates of this Class (“Denomination”)

                	 	
                  $100

                
	 	 	 
	
                  Percentage
                    Interest of this Certificate (“Denomination”)

                	 	
                  100%

                

        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

      Class
        P

       

      

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class payable solely from Prepayment Charges.

      

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Certificate does not evidence an obligation of, or an interest in, and
        is
        not guaranteed by the Depositor, the Seller, the Servicer 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 (obtained by dividing the Denomination of this
        Certificate by the aggregate of the Denominations of all Certificates of
        the
        Class to which this Certificate belongs) in certain distributions with respect
        to a Trust consisting primarily of the Mortgage Loans deposited by IndyMac
        ABS,
        Inc. (the “Depositor”). The Trust was created pursuant to a Pooling and
        Servicing Agreement dated as of the Cut-off Date (the “Agreement”) among the
        Depositor, IndyMac Bank, F.S.B., as seller (the “Seller”) and servicer (the
“Servicer”) and Deutsche Bank National Trust Company, as Trustee (the
“Trustee”). To the extent not defined herein, the capitalized terms used herein
        have the meanings assigned in the Agreement. This Certificate is issued under
        and is subject to the terms, provisions and conditions of the Agreement,
        to
        which Agreement the Holder of this Certificate by virtue of the acceptance
        hereof assents and by which such Holder is bound. This Certificate represents
        an
        interest in the Trust, but does not represent an interest in any
        REMIC.

       

      This
        Certificate does not have a Pass-Through Rate and will be entitled to
        distributions only to the extent set forth in the Agreement and solely payable
        from Prepayment Charges. In addition, 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 office or agency maintained by the
        Trustee.

       

      No
        transfer of a Certificate of this Class shall be made unless such transfer
        is
        made pursuant to an effective registration statement under the Act and any
        applicable state securities laws or is exempt from the registration requirements
        under said Act and such laws. In the event of any such transfer (i) unless
        such
        transfer is made in reliance upon Rule 144A under the 1933 Act (as evidenced
        by
        the investment letter delivered to the Trustee, in substantially the form
        of the
        Form of Rule 144A Investment Letter included as part of Exhibit J to the
        Agreement), the Trustee and the Depositor shall require a written Opinion
        of
        Counsel (which may be in-house counsel) acceptable to and in form and substance
        reasonably satisfactory to the Trustee and the Depositor that such transfer
        may
        be made pursuant to an exemption, describing the applicable exemption and
        the
        basis therefor, form the 1933 Act or is being made pursuant to the 1933 Act,
        which Opinion of Counsel shall not be an expense of the Trustee or the Depositor
        or (ii) the Trustee shall require the transferor to execute a transferor
        certificate (in substantially the form of Exhibit L of the Agreement) and
        the
        transferee to execute an investment letter (in substantially the form attached
        hereto as Exhibit J of the Agreement) acceptable to and in form and substance
        reasonably satisfactory to the Depositor and the Trustee certifying to the
        Depositor and the Trustee the facts surrounding such transfer, which investment
        letter shall not be an expense of the Trustee or the Depositor. The Holder
        hereof desiring to effect such transfer shall, and does hereby agree to,
        indemnify the Trustee 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.

       

      No
        transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
        the
        Code, any Person acting, directly or indirectly, on behalf of any such Plan
        or
        any person using Plan Assets to acquire this Certificate shall be made except
        in
        accordance with Section 5.02(d) of the Agreement.

       

      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 countersigned by an authorized signatory
        of the
        Trustee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
        executed.

       

      Dated:
        _______ __, 2006

       

      
        

        
          	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,

                  not
                    in its individual capacity, but solely as Trustee

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	 
	 	 
	 	 

        

        

        

        
          	
                  Countersigned:

                	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                  By:

                	 
	 	
                  Authorized
                    Signatory of

                  DEUTSCHE
                    BANK NATIONAL TRUST
                    COMPANY, not in its

                  individual
                    capacity, but
                    solely as Trustee

                

        

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDYMAC
        ABS, INC.

      IndyMac
        Residential Mortgage-Backed Trust 2006-L4,

      Mortgage-Backed
        Certificates, Series 2006-L4

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        IndyMac ABS, Inc., IndyMac Residential Mortgage-Backed Trust 2006-L4, Mortgage
        Backed Certificates, Series 2006-L4 (herein collectively called the
“Certificates”), and representing a beneficial ownership interest in the Trust
        created 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 such 25th day is not a Business Day then the first Business
        Day following such Distribution Date (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 by check or money order mailed to the address
        of the person entitled thereto as it appears on the Certificate Register
        or by
        wire transfer or otherwise, as set forth in the Agreement. 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
        Trustee 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 Servicer and the Trustee and of 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.

       

      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 Trustee upon surrender of this Certificate for registration of transfer
        at
        the office or agency maintained by the Trustee, accompanied by a written
        instrument of transfer in form satisfactory to the Trustee 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.

       

      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 Trustee may require payment of a sum sufficient to cover any tax
        or
        other governmental charge payable in connection therewith.

       

      The
        Servicer, the Depositor 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 none of the Depositor, the Servicer, the
        Trustee or any such agent shall be affected by any notice to the
        contrary.

       

      On
        any
        Distribution Date following the date on which the aggregate Stated Principal
        Balance of the Mortgage Loans and REO Properties as of the last day of the
        related Remittance Period is less than 10% of the sum of the Stated Principal
        Balances of the Closing Date Mortgage Loans and REO Properties on the Cut-off
        Date, the Servicer or if the Servicer fails to exercise such option and any
        portion of the Class A Certificates remain outstanding, the Certificate Insurer,
        will have the right to repurchase, in whole, from the Trust all remaining
        Mortgage Loans and all property acquired in respect of the Mortgage Loans
        at a
        purchase price determined as provided in the Agreement. The obligations and
        responsibilities created by the Agreement will terminate as provided in Section
        10.01 of the Agreement.

      

      Capitalized
        terms used herein that are defined in the Agreement shall have the meanings
        ascribed to them in the Agreement, and nothing herein shall be deemed
        inconsistent with that meaning.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      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 Trustee 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

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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.

              	 	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      On
        the
        __th day of               ,
        20  
        before
        me, a notary public in and for said State, personally appeared                                 ,
        known
        to me who, being by me duly sworn, did depose and say that he executed the
        foregoing instrument.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

      [Notarial
        Seal]

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

       

      COPY
        OF
        CERTIFICATE GUARANTY INSURANCE POLICY WITH RESPECT TO THE INSURED
        CERTIFICATES

       

      

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

        EXECUTED
          VERSION

        

         

        CERTIFICATE
          GUARANTY INSURANCE POLICY ENDORSEMENT

         

        
          	
                  Attached
                    to and forming part of

                  Certificate
                    Guaranty Insurance Policy 

                  No.
                    AB1054BE issued to:

                	
                  Effective
                    Date of Endorsement:

                  December
                    21, 2006

                

        

        

         

        Deutsche
          Bank National Trust Company,

        as
          Trustee for the Holders of

        IndyMac
          Residential Mortgage-Backed Trust,

        Series
          2006-L4, Class A Certificates

         

         

        For
          all
          purposes of the Policy, the following terms shall have the following
          meanings:

         

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

         

        “Agreement”
          shall mean, for purposes of the Policy, the Pooling and Servicing Agreement,
          dated as of December 1, 2006, among Indymac ABS, Inc., as the Depositor,
          Indymac
          Bank, F.S.B., as the Seller and Servicer, and Deutsche Bank National Trust
          Company, as the Trustee. 

         

        “Business
          Day” shall mean any day other than (i) a Saturday or Sunday or (ii) a day on
          which banking institutions in the state of New York or the state of California
          or the city in which the Corporate Trust Office or the office of the Insurer
          is
          located are required or authorized by law or executive order to be
          closed.

         

        “Class
          A
          Certificates” shall mean the Class A IndyMac Residential Mortgage-Backed
          Certificates, Series 2006-L4, substantially in the form set forth as Exhibit
          A-1
          to the Agreement.

         

        “Deficiency
          Amount” shall mean for any Distribution Date, an amount equal to the sum of (1)
          the aggregate amount by which the Accrued Certificate Interest payable
          to the
          Class A Certificates for such Distribution Date exceeds the Interest Remittance
          Amount available on such Distribution Date to pay the Class A Certificates,
          and
          (2) (i) with respect to any Distribution Date other than the Final Distribution
          Date, the aggregate amount, if any, by which the aggregate Certificate
          Principal
          Balance of the Class A Certificates (after giving effect to all distributions
          of
          Available Funds on such Distribution Date) exceeds the aggregate Stated
          Principal Balance of the Mortgage Loans on the last day of the related
          Remittance Period and (ii) with respect to the Final Distribution Date,
          the
          aggregate Certificate Principal Balance of the Class A Certificates (after
          giving effect to all distributions of Available Funds on such Distribution
          Date). Notwithstanding anything to the contrary contained herein, the aggregate
          Deficiency Amount described above which may be paid under the Policy shall
          not
          exceed the Maximum Insured Amount.

         

        “Distribution
          Date” shall mean the 25th day of each month (or if such day is not a Business
          Day the next Business Day immediately following) beginning with the First
          Distribution Date.

         

        “Due
          for
          Payment” shall mean, (i) with respect to an Insured Amount, the Distribution
          Date on which Insured Amounts are due and payable pursuant to the terms
          of the
          Agreement and (ii) with respect to a Preference Amount, the Business Day
          on
          which the documentation required by the Insurer has been received by the
          Insurer.

         

        “Final
          Distribution Date” shall mean the Distribution Date occurring in August
          2012.

         

        “First
          Distribution Date” shall mean January 25, 2007.

         

        “Holder”
          shall mean the registered owner or beneficial owner of a Class A Certificate,
          other than the Depositor, the Seller, the Servicer or the Trustee or any
          of
          their Affiliates.

         

        “Insurance
          Account” shall mean the account created and maintained with the Trustee for the
          benefit of the Holders and the Insurer pursuant to Section 4.06 of the
          Agreement.

         

        “Insurance
          Agreement” shall mean the Insurance and Indemnity Agreement, dated as of
          December 21, 2006, among IndyMac ABS, Inc., as the Depositor, IndyMac Bank,
          F.S.B., as the Sponsor, the Seller and the Servicer, and Deutsche Bank
          National
          Trust Company, as Trustee, the Insurer, as such agreement may be amended,
          modified or supplemented from time to time.

         

        “Insured
          Amount” shall mean, with respect to any Distribution Date, the Deficiency Amount
          for such Distribution Date.

         

        “Insured
          Payments” shall mean, with respect to any Distribution Date, the aggregate
          amount actually paid by the Insurer to, or at the direction of, the Trustee
          in
          respect of (i) Insured Amounts for a Distribution Date and (ii) Preference
          Amounts for any given Business Day. 

         

        “Insurer”
          shall mean Ambac Assurance Corporation, or any successor thereto, as issuer
          of
          the Policy.

         

        “Late
          Payment Rate” shall mean for any Distribution Date, the lesser of (i) the
          greater of (a) the rate of interest, as it is publicly announced by Citibank,
          N.A. at its principal office in New York, New York as its prime rate (any
          change
          in such prime rate of interest to be effective on the date such change
          is
          announced by Citibank, N.A.) plus 2% and (b) the then applicable rate of
          interest on the Class A Certificates and (ii) the maximum rate permissible
          under
          applicable usury or similar laws limiting interest rates. The Late Payment
          Rate
          shall be computed on the basis of the actual number of days elapsed over
          a year
          of 360 days.

         

        “Maximum
          Insured Amount” shall mean $156,880,000 in respect of principal, plus interest
          thereon calculated at the Pass-Through Rate for the Class A
          Certificates.

         

        “Nonpayment”
          shall mean, with respect to any Distribution Date, an Insured Amount is
          Due for
          Payment but has not been paid pursuant to the Agreement.

         

        “Notice”
          shall mean the telephonic or telegraphic notice, promptly confirmed in
          writing
          by telecopy substantially in the form of Exhibit A to the Policy, the original
          of which is subsequently delivered by registered or certified mail, from
          the
          Trustee specifying the Insured Amount or Preference Amount which shall
          be due
          and owing on the applicable Distribution Date.

         

        “Person”
          shall mean any individual, corporation, estate, partnership, joint venture,
          association, joint stock company, trust (including any beneficiary thereof),
          unincorporated organization or government or any agency or political subdivision
          thereof.

         

        “Policy”
          shall mean the Certificate Guaranty Insurance Policy No. AB1054BE together
          with
          each and every endorsement hereto. 

         

        “Pooling
          and Servicing Agreement” shall mean the Pooling and Servicing Agreement, dated
          as of December 1, 2006 by and among IndyMac Bank, F.S.B., as the Seller
          and the
          Servicer, IndyMac ABS, Inc., as the Depositor, and Deutsche Bank National
          Trust
          Company, as Trustee.

         

        “Preference
          Amount” shall mean any payment of principal or interest previously distributed
          to a Holder on a Class A Certificate, which would have been covered under
          the
          Policy as an Insured Amount, which has been deemed a preferential transfer
          and
          was previously recovered from its owner pursuant to the United States Bankruptcy
          Code in accordance with a final, non-appealable order a court of competent
          jurisdiction.

         

        “Reimbursement
          Amount” shall mean, as to any Distribution Date, the sum of (x) (i) all Insured
          Payments paid by the Insurer, but for which the Insurer has not been reimbursed
          prior to such Distribution Date pursuant to the Agreement, plus (ii) interest
          accrued on such Insured Payments not previously repaid, calculated at the
          Late
          Payment Rate from the date the Trustee received the related Insured Payments,
          and (y) without duplication (i) any amounts then due and owing to the Insurer
          under the Insurance Agreement, as certified to the Trustee by the Insurer
          plus
          (ii) interest on such amounts at the Late Payment Rate. 

         

        “Relief
          Act Shortfalls” shall mean interest shortfalls resulting from the application of
          the Servicemembers Relief Act, as amended, or any similar state law.

         

        “Trustee”
          shall mean Deutsche Bank National Trust Company, or its successor-in-interest,
          in its capacity as Trustee under the Agreement, or if any successor trustee
          shall be appointed as provided therein, then “Trustee” shall also mean such
          successor trustee, subject to the provisions thereof.

         

        Capitalized
          terms used herein as defined terms and not otherwise defined herein shall
          have
          the meaning assigned to them in the Insurance Agreement and the Agreement,
          without regard to any amendment or modification thereof, unless such amendment
          or modification has been approved in writing by the Insurer.

         

        Notwithstanding
          any other provision of the Policy, the Insurer will pay any Insured Amount
          payable hereunder no later than 12:00 noon, New York City time, on the
          later of
          (i) the second Business Day following receipt in New York, New York on
          a
          Business Day by the Insurer of a Notice at the address and in the manner
          provided in Section 6.02 of the Insurance Agreement and (ii) the Distribution
          Date on which the related Insured Amount is Due for Payment; provided that,
          if
          such Notice is received after 12:00 noon, New York City time, on such Business
          Day, it shall be deemed to be received on the following Business Day. If
          any
          such Notice is not in proper form or is otherwise insufficient for the
          purpose
          of making a claim under the Policy, it shall be deemed not to have been
          received
          for purposes of this paragraph, and the Insurer shall promptly so advise
          the
          Trustee and the Trustee may submit an amended or corrected Notice.

         

        If
          such
          an amended or corrected Notice is in proper form and is otherwise sufficient
          for
          the purpose of making a claim under the Policy, it will be deemed to have
          been
          timely received on the business day of such resubmission, provided that,
          if such
          Notice is received after 12:00 noon, New York City time, on such Business
          Day,
          it will be deemed to be received before 12:00 noon on the following Business
          Day.

         

        The
          Insurer’s obligations under the Policy with respect to Insured Amounts will be
          discharged to the extent funds are transferred to the Trustee as provided
          in the
          Policy, whether or not the funds are properly applied by the
          Trustee.

         

        The
          Insurer will pay any Preference Amount when due to be paid pursuant to
          the Order
          (as defined below), but in any event no earlier than the third Business
          Day
          following receipt by the Insurer of (i) a certified copy of a final,
          non-appealable order of a court or other body exercising jurisdiction in
          such
          insolvency proceeding to the effect that the Trustee, or Holder, as applicable,
          is required to return such Preference Amount paid during the term of the
          Policy
          because such payments were avoided as a preferential transfer or otherwise
          rescinded or required to be restored by the Trustee and/or Holder, as applicable
          (the “Order”), (ii) an opinion of counsel satisfactory to the Insurer, stating
          that such Order has been entered and is final and not subject to any stay,
          (iii)
          an assignment, in form and substance satisfactory to the Insurer, duly
          executed
          and delivered by the Trustee or Holder, irrevocably assigning to the Insurer
          all
          rights and claims of the Trustee and/or such Holder relating to or arising
          under
          the Agreement or otherwise with respect to such Preference Amount, (iv)
          appropriate instruments in form satisfactory to the Insurer to effect the
          appointment of the Insurer as agent for the Trustee and such Holder in
          any legal
          proceeding relating to such Preference Amount and (v) a Notice (in the
          form
          attached hereto as Exhibit A) appropriately completed and executed by the
          Trustee; provided, that if such documents are received after 12:00 noon,
          New
          York City time, on such Business Day, they will be deemed to be received
          on the
          following Business Day; provided, further, that the Insurer shall not be
          obligated to make any payment in respect of any Preference Amount representing
          a
          payment of principal on the Class A Certificates prior to the time the
          Insurer
          would have been required to make a payment in respect of such principal
          pursuant
          to the first paragraph of the face of the Policy; provided, further, that
          any
          Preference Amount that constitutes interest will be limited to the amount
          of
          interest on the outstanding principal amount of the Class A Certificates
          (calculated at the related Pass-Through Rate) accrued as of the last day
          of the
          applicable interest accrual period and will not, in any event, include
          any
          interest on the Class A Certificates accrued after such date or any interest
          on
          such interest amount. Such payment shall be disbursed to the receiver,
          conservator, debtor-in-possession or trustee in bankruptcy named in the
          Order,
          and not to the Holder directly, unless the Holder has made a payment of
          the
          Preference Amount to the court or such receiver, conservator,
          debtor-in-possession or trustee in bankruptcy named in the Order, in which
          case
          the Insurer will pay the Holder, subject to the delivery of (a) the items
          referred to in clauses (i), (ii), (iii), (iv) and (v) above to the Insurer
          and
          (b) evidence satisfactory to the Insurer that payment has been made to
          such
          court or receiver, conservator, debtor-in-possession or trustee in bankruptcy
          named in the Order. 

         

        Upon
          any
          payment under the Policy, in furtherance and not in limitation of the Insurer’s
          equitable right of subrogation and the Insurer’s rights under the Insurance
          Agreement, the Insurer will, to the extent of such payment by the Insurer
          under
          the Policy, be subrogated to the rights of any Holder, to receive any and
          all
          amounts due in respect of such Class A Certificates as to which such payment
          under the Policy was made, to the extent of any payment by the Insurer
          under the
          Policy.

         

        The
          Insurer hereby agrees that if it shall be subrogated to the rights of Holders
          by
          virtue of any payment under the Policy, no recovery of such payment will
          occur
          unless the full amount of the Holders’ allocable distributions for such
          Distribution Date can be made. In so doing, the Insurer does not waive
          its
          rights to seek full payment of all Reimbursement Amounts owed to it under
          the
          Insurance Agreement and the Agreement. 

         

        The
          Policy does not cover Net WAC Cap Carry Forward Amounts, Net WAC Shortfalls,
          Net
          Interest Shortfalls, default interest, premiums, if any, allocated to or
          payable
          in respect of the Class A Certificates, nor does the Policy guarantee to
          the
          Holders any particular rate of principal payment. In addition, the Policy
          does
          not cover shortfalls, if any, attributable to the liability of the Issuer,
          any
          REMIC thereof, the Trustee or any Holder for withholding taxes, if any,
          (including interest and penalties in respect of any liability for withholding
          taxes) or any risk other than Nonpayment, including the failure of the
          Trustee
          or any Paying Agent to make any payment required under the Agreement to
          the
          Holders.

         

        The
          terms
          and provisions of the Agreement constitute the instrument of assignment
          referred
          to in the second paragraph of the face of the Policy.

         

        A
          premium
          will be payable on the Policy on each Distribution Date as provided in
          Section
          3.02 of the Insurance Agreement, beginning with the First Distribution
          Date, in
          an amount equal to the amount specified by the Insurance Agreement. The
          premium
          on the Policy is not refundable for any reason, including the payment of
          any
          Class A Certificates prior to their maturities.

         

        IN
          THE EVENT THAT AMBAC ASSURANCE CORPORATION WERE TO BECOME INSOLVENT, ANY
          CLAIMS
          ARISING UNDER THE POLICY WOULD BE EXCLUDED FROM COVERAGE BY THE CALIFORNIA
          INSURANCE GUARANTY ASSOCIATION.

         

        The
          Policy to which this endorsement is attached and of which it forms a part
          is
          hereby amended to provide that there shall be no acceleration payment due
          under
          the Policy unless such acceleration is at the sole option of the Insurer.
          In the
          event of a payment default or insolvency of the Trust, there shall be no
          acceleration of payments required to be made under the Policy with respect
          to
          the Class A Certificates except at the option of the Insurer.

         

        Nothing
          herein contained shall be held to vary, alter, waive or extend any of the
          terms,
          conditions, provisions, agreements or limitations of the above mentioned
          Policy
          other than as above stated.

         

        To
          the
          fullest extent permitted by applicable law, the Insurer hereby waives and
          agrees
          not to assert any and all rights and defenses (including but not limited
          to
          set-offs, counterclaims, fraud in the inducement or fact or any other
          circumstances that would have the effect of discharging a surety at law
          or in
          equity), to the extent such rights and defenses may be available to the
          Insurer
          to avoid payment of its obligations under the Policy in accordance with
          the
          express provisions hereof. None of the foregoing waivers shall prejudice
          any
          claim the Insurer may have, whether directly or as subrogee of the Class
          A
          Certificateholders, subsequent to making such payment to the Trustee in
          accordance with this Policy.

         

        To
          the
          extent the provisions of this endorsement conflict with the provisions
          in the
          above-mentioned Policy, the provisions of this endorsement shall
          govern.

         

        The
          Policy and the obligations of the Insurer thereunder will terminate without
          any
          action on the part of the Insurer or any other person on the date that
          is one
          year and one day following the earlier to occur of (i) the date on which
          all
          amounts required to be paid on the Class A Certificates have been paid
          in full
          and (ii) if any proceedings requisite to avoidance as a Preference Payment
          have
          been commenced on or prior to the date specified in clause (i) above, the
          30th
          day after the entry of a final and nonappealable order in resolution or
          settlement of each such proceeding. Upon termination of the Policy, the
          Trustee
          shall deliver the original of the Policy to the Insurer.

         

        No
          person
          other than the Trustee shall be entitled to present the Notice.

         

        No
          waiver
          of any rights or powers of the Insurer, the Holders or the Trustee or consent
          by
          any of them shall be valid unless signed by an authorized officer or agent
          thereof.

         

        The
          Policy is issued under and pursuant to, and shall be construed in accordance
          with, the laws of the State of New York, without giving effect to the conflict
          of laws principles thereof. 

         

        

         

        

         

        [REMAINDER
          OF PAGE INTENTIONALLY LEFT BLANK]

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, Ambac Assurance Corporation has caused this endorsement
          to the
          Policy to be signed by its duly authorized officers.

         

        
          	 	 	 
	
                  Assistant
                    Secretary

                	 	
                  First
                    Vice President

                

        

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          A

        TO
          THE
          CERTIFICATE GUARANTY INSURANCE POLICY

        Policy
          No. AB1054BE

         

        

         

        NOTICE
          OF NONPAYMENT AND DEMAND

        FOR
          PAYMENT OF INSURED AMOUNTS

         

        Date:
          [             ]

         

        Ambac
          Assurance Corporation

        One
          State
          Street Plaza

        New
          York,
          New York 10004

        Attention:
          General Counsel

         

        Reference
          is made to Certificate Guaranty Insurance Policy No. AB1054BE (the “Policy”)
          issued by Ambac Assurance Corporation (“Ambac”). Terms capitalized herein and
          not otherwise defined shall have the meanings specified in the Policy and
          the
          Pooling and Servicing Agreement, dated as of December 1, 2006 (the “Agreement”),
          between IndyMac Bank, F.S.B., as the Seller and the Servicer, IndyMac ABS,
          Inc.,
          as the Depositor, and Deutsche Bank National Trust Company, as Trustee,
          as the
          case may be, unless the context otherwise requires. 

         

        The
          Trustee hereby certifies as follows:

         

        
          	1.  	
                  The
                    Trustee is the Trustee under the Agreement for the
                    Holders.

                

        

         

        
          	2.  	
                  The
                    relevant Distribution Date is [date].

                

        

         

        
          	3.  	
                  Payment
                    on the Class A Certificates in respect of the Distribution Date
                    is due to
                    be received on _________________________ under the Agreement
                    in an amount
                    equal to $_________. 

                

        

         

        
          	4.  	
                  There
                    is an [Insured Amount] [Preference Amount] of $______________
                    in respect
                    of the Class A Certificates, which amount is Due for Payment
                    pursuant to
                    the terms of the Agreement.

                

        

         

        
          	5.  	
                  The
                    Trustee has not heretofore made a demand for the Insured Amount
                    in respect
                    of the Distribution Date. 

                

        

         

        
          	6.  	
                  The
                    Trustee hereby requests the payment of the [Insured Amount] [Preference
                    Amount] that is Due For Payment be made by Ambac under the Policy
                    and
                    directs that payment under the Policy be made to the following
                    account by
                    bank wire transfer of federal or other immediately available
                    funds in
                    accordance with the terms of the Policy to: ______________________________
                    (Trustee’s account number).

                

        

         

        
          	7.  	
                  The
                    Trustee hereby agrees that, following receipt of the [Insured
                    Amount]
                    [Preference Amount] from Ambac, it shall (a) hold such amounts
                    in trust
                    and apply the same directly to the distribution of payment on
                    the Class A
                    Certificates when due; (b) not apply such funds for any other
                    purpose; (c)
                    deposit such funds to the Insurance Account and not commingle
                    such funds
                    with other funds held by Trustee and (d) maintain an accurate
                    record of
                    such payments with respect to each certificate and the corresponding
                    claim
                    on the Policy and proceeds thereof.

                

        

         

        FOR
          YOUR PROTECTION CALIFORNIA LAW REQUIRES THE FOLLOWING TO APPEAR ON THIS
          FORM.
          ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR THE PAYMENT
          OF
          A LOSS IS GUILTY OF A CRIME AND MAY BE SUBJECT TO FINES AND CONFINEMENT
          IN STATE
          PRISON. 

         

        
          	 
	
                  By

                	 
	 	
                  Trustee

                
	 	 
	 	 
	
                  Title:

                	 
	 	
                  (Officer)

                

        

        

         

        

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      EXHIBIT
        C

       

      FORM
        OF
        MORTGAGE LOAN PURCHASE AGREEMENT

       

      

        INDYMAC
          BANK, F.S.B.,

        as
          Seller

         

        and

         

        INDYMAC
          ABS, INC.,

        as
          Purchaser

         

        MORTGAGE
          LOAN PURCHASE AGREEMENT

         

        Dated
          as
          of December 21, 2006

         

        INDYMAC
          RESIDENTIAL MORTGAGE-BACKED TRUST CERTIFICATES,

        SERIES
          2006-L4

         

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        Table
          of Contents

         

         

        
          	
                  ARTICLE
                    I

                  DEFINITIONS

                   

                
	
                  Section
                    1.01

                	
                  Definitions

                   

                
	
                  ARTICLE
                    II

                  SALE
                    OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

                   

                
	
                  Section
                    2.01

                	
                  Sale
                    of Mortgage Loans.

                
	
                  Section
                    2.02

                	
                  Obligations
                    of Seller Upon Sale

                
	
                  Section
                    2.03

                	
                  Payment
                    of Purchase Price for the Mortgage Loans.

                   

                
	
                  ARTICLE
                    III

                  REPRESENTATIONS
                    AND WARRANTIES; REMEDIES FOR BREACH

                   

                
	
                  Section
                    3.01

                	
                  Seller
                    Representations and Warranties Relating to the Mortgage
                    Loans

                
	
                  Section
                    3.02

                	
                  Seller
                    Representations and Warranties Relating to the Seller

                
	
                  Section
                    3.03

                	
                  Remedies
                    for Breach of Representations and Warranties

                   

                
	
                  ARTICLE
                    IV

                  SELLER’S
                    COVENANTS

                   

                
	
                  Section
                    4.01

                	
                  Covenants
                    of the Seller

                   

                
	
                  ARTICLE
                    V

                  INDEMNIFICATION
                    WITH RESPECT TO THE MORTGAGE LOANS

                   

                
	
                  Section
                    5.01

                	
                  Indemnification.

                   

                
	
                  ARTICLE
                    VI

                  TERMINATION

                   

                
	
                  Section
                    6.01

                	
                  Termination

                   

                
	
                  ARTICLE
                    VII

                  MISCELLANEOUS
                    PROVISIONS

                   

                
	
                  Section
                    7.01

                	
                  Amendment

                
	
                  Section
                    7.02

                	
                  Governing
                    Law

                
	
                  Section
                    7.03

                	
                  Notices

                
	
                  Section
                    7.04

                	
                  Severability
                    of Provisions

                
	
                  Section
                    7.05

                	
                  Counterparts

                
	
                  Section
                    7.06

                	
                  Further
                    Agreements

                
	
                  Section
                    7.07

                	
                  Intention
                    of the Parties

                
	
                  Section
                    7.08

                	
                  Successors
                    and Assigns: Assignment of Purchase Agreement

                
	
                  Section
                    7.09

                	
                  Survival

                
	
                  Section
                    7.10

                	
                  Third
                    Party Beneficiary

                

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        MORTGAGE
          LOAN PURCHASE AGREEMENT, dated as of December 21, 2006 (this “Agreement”),
          between IndyMac Bank, F.S.B. (the “Seller”) and IndyMac ABS, Inc. (the
“Purchaser”).

         

        W
          I T
          N E S S E T H

         

        WHEREAS,
          the Seller is the owner of (i) the notes or other evidence of indebtedness
          (the
“Mortgage Notes”) as indicated on Schedule I hereto referred to below, and the
          other documents or instruments constituting the Mortgage File (collectively,
          the
“Mortgage Loans”); and

         

        WHEREAS,
          the Seller, as of the date hereof, owns the mortgages (the “Mortgages”) on the
          properties (the “Mortgaged Properties”) securing such Mortgage Loans, including
          rights to (a) any property acquired by foreclosure or deed in lieu of
          foreclosure or otherwise and (b) the proceeds of any insurance policies
          covering
          the Mortgage Loans or the obligors on the Mortgage Loans; and

         

        WHEREAS,
          the parties hereto desire that the Seller sell the Mortgage Loans to the
          Purchaser pursuant to the terms of this Agreement; and

         

        WHEREAS,
          pursuant to the terms of a Pooling and Servicing Agreement, dated as of
          December
          1, 2006 (the “Pooling and Servicing Agreement”), among the Purchaser as
          depositor, the Seller as seller and servicer and Deutsche Bank National
          Trust
          Company as trustee (the “Trustee”), relating to IndyMac Residential
          Mortgage-Backed Trust Certificates, Series 2006-L4, the Purchaser will
          convey
          the Mortgage Loans to the trust created therein (the “Trust”); and

         

        WHEREAS,
          the Seller is obligated, in connection with the transactions contemplated
          by
          this Agreement, to make certain representations, warranties and covenants
          with
          respect to itself and the Mortgage Loans.

         

        NOW,
          THEREFORE, in consideration of the mutual covenants herein contained, the
          parties hereto agree as follows:

         

         

        ARTICLE
          I

         

        DEFINITIONS

         

        Section
          1.01  Definitions.
          All
          capitalized terms used but not defined herein shall have the meanings assigned
          thereto in the Pooling and Servicing Agreement.

         

         

         

        ARTICLE
          II

         

        SALE
          OF
          MORTGAGE LOANS;

        PAYMENT
          OF PURCHASE PRICE

         

        Section
          2.01  Sale
          of Mortgage Loans.

         

        The
          Seller, concurrently with the execution and delivery of this Agreement,
          does
          hereby sell, assign, set over, and otherwise convey to the Purchaser, without
          recourse, (i) all of its right, title and interest in and to each Mortgage
          Loan,
          including the related Principal Balance as of the Cut-off Date, (ii) all
          interest accruing thereon on or after the Cut-off Date and all collections
          in
          respect of interest and principal due after the Cut-off Date, (iii) its
          interest
          in any insurance policies in respect of the Mortgage Loans and (iv) all
          proceeds
          of any of the foregoing.

         

        Section
          2.02  Obligations
          of Seller Upon Sale.
          In
          connection with any transfer pursuant to Section 2.01 hereof, the Seller
          agrees,
          at its own expense, on or prior to the Closing Date, (i) to cause its books
          and
          records to indicate that the Mortgage Loans have been sold to the Purchaser
          pursuant to this Agreement and (ii) to deliver to the Purchaser and the
          Trustee
          an electronic data file containing a true and complete list of all such
          Mortgage
          Loans, specifying for each such Mortgage Loan, as of the Cut-off Date,
          those
          data fields as required in the Pooling and Servicing Agreement. Such file,
          which
          forms a part of Exhibit D to the Pooling and Servicing Agreement, shall
          also be
          marked as Schedule I to this Agreement and is hereby incorporated into
          and made
          a part of this Agreement.

         

        In
          connection with any conveyance by the Seller, the Seller shall on behalf
          of the
          Purchaser deliver to, and deposit with, the Trustee, as assignee of the
          Purchaser, or to the Custodian, on or before the Closing Date, the following
          documents or instruments, which documents and instruments will comply with
          the
          requirements of the Pooling and Servicing Agreement notwithstanding any
          provision to the contrary below:

         

        (i)  the
          original Mortgage Note, endorsed either (A) in blank or (B) in the following
          form: “Pay to the order of Deutsche Bank National Trust Company, as Trustee,
          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 Stated Principal Balance
          of
          which is less than or equal to 2.00% of the Pool Balance as of the Cut-off
          Date;

         

        (ii)  the
          original Mortgage 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
          copy of
          such Mortgage or power of attorney, as the case may be, certified to be
          a true
          and complete copy of the original submitted for recording;

         

        (iii)  an
          original Assignment, in form and substance acceptable for recording. The
          Mortgage shall be assigned either (A) in blank or (B) to “Deutsche Bank National
          Trust Company, as Trustee, without recourse”;

         

        (iv)  an
          original copy of any intervening Assignment, showing a complete chain of
          assignments;

         

        (v)  the
          original or a certified copy of the lender’s title insurance policy;
          and

         

        (vi)  the
          original or copies of each assumption, modification, written assurance
          or
          substitution agreement, if any.

         

        With
          respect to up to 30% of the Mortgage Loans, the Seller may deliver all
          or a
          portion of each related Mortgage File to the Trustee not later than five
          Business Days after the Closing Date (such Mortgage Loans, the “Delayed Delivery
          Mortgage Loans”).

         

        The
          Seller hereby confirms to the Purchaser and the Trustee that it has made
          the
          appropriate entries in its general accounting records, to indicate that
          such
          Mortgage Loans have been transferred to the Trustee and constitute part
          of the
          Trust in accordance with the terms of the Pooling and Servicing
          Agreement.

         

        If
          any of
          the documents referred to in Section 2.02(ii), (iii) or (iv) above has
          as of the
          Closing Date been submitted for recording but either (A) has not been returned
          from the applicable public recording office or (B) has been lost or such
          public
          recording office has retained the original of such document, the obligations
          of
          the Seller to deliver such documents shall be deemed to be satisfied upon
          (1)
          delivery to the Trustee or the Custodian no later than the Closing Date
          of a
          copy of each such document certified by the Seller in the case of (A) above
          or
          the applicable public recording office in the case of (B) above to be a
          true and
          complete copy of the original that was submitted for recording and (2)
          if such
          copy is certified by the Seller, delivery to the Trustee or the Custodian,
          promptly upon receipt thereof of either the original or a copy of such
          document
          certified by the applicable public recording office to be a true and complete
          copy of the original. If the original lender’s title insurance policy, or a
          certified copy thereof, was not delivered pursuant to Section 2.02(v) above,
          the
          Seller shall deliver or cause to be delivered to the Trustee or a Custodian,
          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 certified copy thereof to be delivered to the Trustee or
          the
          Custodian, promptly upon receipt thereof. The Seller shall deliver or cause
          to
          be delivered to the Trustee or the Custodian promptly upon receipt thereof
          any
          other documents constituting a part of a Mortgage File received with respect
          to
          any Mortgage Loan, including, but not limited to, any original documents
          evidencing an assumption or modification of any Mortgage Loan.

         

        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 or the
          Custodian. 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 of the
          Pooling
          and Servicing Agreement.

         

        The
          Purchaser hereby acknowledges its acceptance of all right, title and interest
          to
          the Mortgage Loans and other property, now existing and hereafter created,
          conveyed to it pursuant to Section 2.01.

         

        The
          Seller shall cause the Assignments which were delivered in blank to be
          completed
          and shall cause all Assignments referred to in Section 2.02(iii) hereof
          and, to
          the extent necessary, in Section 2.02(iv) hereof to be recorded. The Seller
          shall be required to deliver such Assignments for recording within 30 days
          of
          the Closing Date. The Seller shall furnish the Trustee, or its designated
          agent,
          with a copy of each Assignment submitted for recording. In the event that
          any
          such Assignment is lost or returned unrecorded because of a defect therein,
          the
          Seller shall promptly have a substitute Assignment prepared or have such
          defect
          cured, as the case may be, and thereafter cause each such Assignment to
          be duly
          recorded.

         

        Notwithstanding
          the foregoing, the Seller shall not cause to be recorded any Assignment
          which
          relates to a Mortgage Loan secured by a Mortgaged Property in California
          or in
          any other jurisdiction where the Rating Agencies do not require recordation
          in
          order to receive the ratings on the Certificates at the time of their initial
          issuance (which, in the case of the Insured Certificates, shall be without
          regard to the Policy); provided,
          however,
          that
          each Assignment shall be submitted for recording by the Seller in the manner
          described above, at no expense to the Trust Fund or Trustee, upon the earliest
          to occur of: (i) direction by the Holders of the Certificates entitled
          to at
          least 25% of the Voting Rights, (ii) the occurrence of a Servicer Event
          of
          Termination, (iii) the occurrence of a bankruptcy or insolvency relating
          to the
          Seller, (iv) the occurrence of a servicing transfer as described in Section
          7.02
          of the Pooling and Servicing Agreement and (v) if the Seller is not the
          Servicer
          and with respect to any one Assignment, the occurrence of a bankruptcy,
          insolvency or foreclosure relating to the Mortgagor under the related
          Mortgage.

         

        Notwithstanding
          anything to the contrary in this Agreement, within five Business Days after
          the
          Closing Date, the Seller shall either:

         

        (x) deliver
          to the Trustee the Mortgage File as required pursuant to this Article II
          for
          each Delayed Delivery Mortgage Loan; or

         

        (y)(A) repurchase
          the Delayed Delivery Mortgage Loan or (B) substitute a Qualified Substitute
          Mortgage Loan for a Delayed Delivery Mortgage Loan, which repurchase or
          substitution shall be accomplished in the manner and subject to the conditions
          herein (treating each such Delayed Delivery Mortgage Loan as a Deleted
          Mortgage
          Loan for purposes of Section 3.03);

         

        provided,
          however, that if the Seller fails to deliver a Mortgage File for any Delayed
          Delivery Mortgage Loan within the period specified herein, the Seller shall
          use
          its best reasonable efforts to effect a substitution, rather than a repurchase
          of, such Delayed Delivery Mortgage Loan; provided, further, that the cure
          period
          provided for herein and in the Pooling and Servicing Agreement shall not
          apply
          to the initial delivery of the Mortgage File for such Delayed Delivery
          Mortgage
          Loan, but rather the Seller shall have five (5) Business Days to cure such
          failure to deliver.

         

        Section
          2.03  Payment
          of Purchase Price for the Mortgage Loans.

         

        In
          consideration of the sale of the Mortgage Loans to be purchased hereunder,
          the
          Purchaser shall pay to or upon the order of the Seller on the Closing Date
          the
          purchase price thereof (the “Mortgage Loan Purchase Price”) by transfer to the
          Seller of (i) immediately available funds in an amount equal to the net
          sale
          proceeds of the Class A Certificates and (ii) the Class M Certificates,
          the
          Class B Certificates, the Class C Certificates and the Class R Certificates
          (the
“IndyMac Certificates”). The Seller shall pay, and be billed directly for, all
          expenses incurred by the Purchaser in connection with the issuance of the
          Certificates, including, without limitation, printing fees incurred in
          connection with the Prospectus Supplement relating to the Class A Certificates
          and the Class M Certificates and the Private Placement Memorandum relating
          to
          the Class B Certificates, fees and expenses of Purchaser’s counsel, accountant’s
          fees and expenses and the fees and expenses of the Trustee and the Certificate
          Insurer and other out-of-pocket costs, if any.

         

        Section
          2.04  Conveyance
          of Subsequent Mortgage Loans.

         

        (i)  Subject
          to the conditions set forth in paragraph (b) below in consideration of
          the
          Trustee’s delivery on the Subsequent Transfer Dates to or upon the order of the
          Depositor of all or a portion of the balance of funds in the Pre-Funding
          Account, the Depositor shall on any Subsequent Transfer Date sell, transfer,
          assign, set over and convey without recourse to the Trust Fund but subject
          to
          the other terms and provisions of this Agreement all of the right, title
          and
          interest of the Depositor in the (i) the Subsequent Mortgage Loans identified
          on
          the Mortgage Loan Schedule attached to the related Subsequent Transfer
          Instrument delivered by the Depositor on such Subsequent Transfer Date,
          (ii) all
          interest accruing thereon on and after the Subsequent Cut-off Date and
          all
          collections in respect of interest and principal due after the Subsequent
          Cut-off Date and (iii) all items with respect to such Subsequent Mortgage
          Loans
          to be delivered pursuant to Section 2.01 and the other items in the related
          Mortgage Files; provided, however, that the Depositor reserves and retains
          all
          right, title and interest in and to principal received and interest accruing
          on
          the Subsequent Mortgage Loans prior to the related Subsequent Cut-off Date.
          The
          transfer to the Trustee by the Depositor of the Subsequent Mortgage Loans
          identified on the Mortgage Loan Schedule shall be absolute and is intended
          by
          the Depositor, the Servicer, the Trustee and the Certificateholders to
          constitute and to be treated as a sale of the Subsequent Mortgage Loans
          by the
          Depositor to the Trust Fund. The
          related Mortgage File for each Subsequent Mortgage Loan shall be delivered
          to
          the Trustee at least three (3) Business Days prior to the related Subsequent
          Transfer Date (except that, in the case of Subsequent Mortgage Loans that
          are
          Delayed Delivery Subsequent Mortgage Loans, such delivery may take place
          within
          five (5) Business Days of the Subsequent Transfer Date).

         

        (ii)  The
          purchase price paid by the Trustee from amounts released from the Pre-Funding
          Account shall be 100% of the aggregate Stated Principal Balance of the
          related
          Subsequent Mortgage Loans so transferred (as identified on the Mortgage
          Loan
          Schedule attached to the related Subsequent Transfer Instrument provided
          by the
          Depositor). This Agreement shall constitute a fixed-price contract in accordance
          with Section 860G(a)(3)(A)(ii) of the Code.

         

        (iii)  The
          Depositor shall transfer to the Trustee for deposit in the pool of Mortgage
          Loans the Subsequent Mortgage Loans and the other property and rights related
          thereto as described in paragraph (a) above, and the Trustee shall release
          funds
          from the Pre-Funding Account only upon the satisfaction of each of the
          following
          conditions on or prior to the related Subsequent Transfer Date (except
          that, in
          the case of Subsequent Mortgage Loans that are Delayed Delivery Subsequent
          Mortgage Loans, such delivery may take place within five (5) Business Days
          of
          the Subsequent Transfer Date):

         

        (i)  the
          Depositor shall have provided the Trustee, the Certificate Insurer and
          the
          Rating Agencies with a timely Addition Notice and shall have provided any
          information reasonably requested by the Trustee with respect to the Subsequent
          Mortgage Loans;

         

        (ii)  the
          Depositor shall have delivered to the Trustee a duly executed Subsequent
          Transfer Instrument, which shall include a Mortgage Loan Schedule listing
          the
          Subsequent Mortgage Loans, and the Seller shall have delivered a computer
          file
          acceptable to the Trustee containing such Mortgage Loan Schedule to the
          Trustee
          at least three (3) Business Days prior to the related Subsequent Transfer
          Date;

         

        (iii)  as
          of
          each Subsequent Transfer Date, as evidenced by delivery of the Subsequent
          Transfer Instrument, the Depositor shall not be insolvent nor shall it
          have been
          rendered insolvent by such transfer nor shall it be aware of any pending
          insolvency;

         

        (iv)  such
          sale
          and transfer shall not result in a material adverse tax consequence to
          the Trust
          Fund or the Certificateholders;

         

        (v)  the
          Funding Period shall not have terminated;

         

        (vi)  the
          Depositor shall not have selected the Subsequent Mortgage Loans in a manner
          that
          it believed to be adverse to the interests of the Certificateholders or
          the
          Certificate Insurer;

         

        (vii)  the
          NIMS
          Insurer, if any, must consent to such conveyance;

         

        (viii)  the
          Depositor shall have delivered to the Trustee a Subsequent Transfer Instrument
          confirming the satisfaction of the conditions precedent specified in this
          Section 2.04 and, pursuant to the Subsequent Transfer Instrument, assigned
          to
          the Trustee without recourse for the benefit of the Certificateholders
          and the
          Certificate Insurer all the right, title and interest of the Depositor,
          in, to
          and under this Agreement, to the extent of the Subsequent Mortgage Loans;
          and

         

        (ix)  the
          Depositor shall have delivered to the Trustee and the Certificate Insurer
          an
          Opinion of Counsel addressed to the Trustee, the Certificate Insurer and
          the
          Rating Agencies with respect to the transfer of the Subsequent Mortgage
          Loans
          substantially in the form of the Opinion of Counsel delivered to the Trustee
          on
          the Closing Date regarding the true sale of the Subsequent Mortgage
          Loans.

         

        (iv)  The
          obligation of the Trust Fund to purchase a Subsequent Mortgage Loan on
          any
          Subsequent Transfer Date is subject to the satisfaction of the conditions
          set
          forth in the immediately preceding paragraph and the accuracy of the following
          representations and warranties with respect to each such Subsequent Mortgage
          Loan determined as of the applicable Subsequent Cut-off Date: (a)
          each
          such Subsequent
          Mortgage Loan must
          satisfy the representations and warranties specified herein and in the
          related
Subsequent
          Transfer Instrument;
          (b) the
          Depositor will not select such Subsequent
          Mortgage Loan in
          a
          manner that it believes to be adverse to the interests of the Certificateholders
          or the Certificate Insurer; (c) the depositor will deliver certain opinions
          of
          counsel with respect to the validity of the conveyance of such Subsequent
          Mortgage Loan; and (d) following the purchase of any Subsequent Mortgage
          Loan by
          the trust, the Mortgage Loans (including the related Subsequent Mortgage
          Loans)
          will, as of the related Cut-off Date not vary by more than the permitted
          variance specified in the below table. For purposes of the calculations
          described in the below table, percentages of the Mortgage Loans will be
          based on
          the Stated
          Principal Balance of
          the
          Closing Date Mortgage Loans and Subsequent Mortgage Loans as of their respective
          Cut-off dates.

         

        

         

        Notwithstanding
          the foregoing, any Subsequent Mortgage Loan may be rejected by any Rating
          Agency
          if the inclusion of any such Subsequent Mortgage Loan would adversely affect
          the
          ratings of any Class of Certificates (without regard to the Policy). At
          least
          one (1) Business Day prior to the Subsequent Transfer Date, each Rating
          Agency
          shall notify the Trustee as to which Subsequent Mortgage Loans, if any,
          shall
          not be included in the transfer on the Subsequent Transfer Date; provided,
          however, that the Seller shall have delivered to each Rating Agency at
          least
          three (3) Business Days prior to such Subsequent Transfer Date a computer
          file
          acceptable to each Rating Agency describing the characteristics specified
          in
          paragraphs (c) and (d) above.

         

         

         

        ARTICLE
          III

         

        REPRESENTATIONS
          ANDWARRANTIES; REMEDIES FOR BREACH

         

        Section
          3.01  Seller
          Representations and Warranties Relating to the Mortgage Loans.
          The
          Seller hereby makes representations and warranties, as set forth in Exhibit
          A
          hereof, to the Purchaser with respect to the Mortgage Loans as of the Closing
          Date or as of such other date specifically provided herein.
          Upon
          discovery by any of the parties hereto of a breach of a representation
          or
          warranty made pursuant to this Section 3.01 that materially and adversely
          affects the interests of the Certificateholders in any Mortgage Loan, the
          party
          discovering such breach shall give prompt notice thereof to the other
          parties.  Any breach of representations and warranties under clauses (ix)
          and (xxiv) of Exhibit A shall be deemed to affect materially and adversely
          the
          interests of the Certificateholders in the affected Mortgage Loans. 

         

        Section
          3.02  Seller
          Representations and Warranties Relating to the Seller.
          The
          Seller represents, warrants and covenants to the Purchaser as of the Closing
          Date:

         

        (i)  The
          Seller is duly organized, validly existing and in good standing as a federal
          savings bank under the laws of the United States and is licensed, qualified
          and
          in good standing in each state in which any Mortgaged Property is located
          if the
          laws of such state require licensing or qualification in order to conduct
          business of the type conducted by the Seller or to ensure the enforceability
          or
          validity of each Mortgage Loan in accordance with the terms of this
          Agreement;

         

        (ii)  The
          Seller has the full power and authority to hold each Mortgage Loan, to
          sell each
          Mortgage Loan, 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 and
          has
          duly executed and delivered this Agreement. This Agreement, assuming due
          authorization, execution and delivery by the Purchaser, constitutes a legal,
          valid and binding obligation of the Seller, enforceable against it in accordance
          with its terms except as the enforceability thereof may be limited by
          bankruptcy, insolvency or reorganization. At the time of the sale of each
          Mortgage Loan by the Seller, the Seller had the full power and authority
          to hold
          each Mortgage Loan and to sell each Mortgage Loan;

         

        (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
          charter or by-laws or constitute a default under or result in a breach
          or
          acceleration of, any material contract, agreement or other instrument to
          which
          the Seller is a party or which may be applicable to the Seller or its
          assets;

         

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

         

        (v)  The
          Seller 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)  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;

         

        (vii)  No
          consent, approval, authorization or order of any court or governmental
          agency or
          body is required for the execution, delivery and performance by the 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;

         

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

         

        (ix)  The
          information delivered by the Seller to the Purchaser with respect to the
          Seller’s loan loss, foreclosure and delinquency experience on mortgage loans
          underwritten to similar standards as the Mortgage Loans and covering mortgaged
          properties similar to the Mortgaged Properties, is true and correct in
          all
          material respects as of the date of such report;

         

        (x)  Except
          with respect to any statement regarding the intentions of the Purchaser,
          or any
          other statement contained herein, the truth or falsity of which is dependent
          solely upon the actions of the Purchaser, this Agreement does not contain
          any
          untrue statement of material fact or omit to state a material fact necessary
          to
          make the statements contained herein not misleading. The written statements,
          reports and other documents prepared and furnished or to be prepared and
          furnished by the Seller pursuant to this Agreement or in connection with
          the
          transactions contemplated hereby and by the Pooling and Servicing Agreement,
          taken in the aggregate, do not contain any untrue statement of material
          fact or
          omit to state a material fact necessary to make the statements contained
          therein
          not misleading;

         

        (xi)  The
          Seller has not transferred the Mortgage Loans to the Purchaser with any
          intent
          to hinder, delay or defraud any of its creditors;

         

        (xii)  The
          Seller has not dealt with any broker, investment banker, agent or other
          person,
          except for the Purchaser or any of its affiliates, that may be entitled
          to any
          commission or compensation in connection with the sale of the Mortgage
          Loans
          (except that an entity that previously financed the Seller’s ownership of the
          Mortgage Loans may be entitled to a fee to release its security interest
          in the
          Mortgage Loans, which fee shall have been paid and which security interest
          shall
          have been released on or prior to the Closing Date); and

         

        (xiii)  There
          is
          no litigation currently pending or, to the best of the Seller’s knowledge,
          threatened against the Seller that would reasonably be expected to adversely
          affect the transfer of the Mortgage Loans, the issuance of the Certificates
          or
          the execution, delivery, performance or enforceability of this Agreement
          or the
          Pooling and Servicing Agreement, or that would result in a material adverse
          change in the financial condition of the Seller.

         

        Section
          3.03  Remedies
          for Breach of Representations and Warranties.
          It is
          understood and agreed that the representations and warranties set forth
          in
          Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans to
          the
          Purchaser and shall inure to the benefit of the Purchaser, notwithstanding
          any
          restrictive or qualified endorsement on any Mortgage Note or Assignment
          or the
          examination or lack of examination of any Mortgage File. Upon discovery
          by
          either the Seller or the Purchaser of a breach of any of the foregoing
          representations and warranties that materially and adversely affects the
          value
          of the Mortgage Loans or the interest of the Purchaser (or which materially
          and
          adversely affects the interests of the Purchaser in the related Mortgage
          Loan in
          the case of a representation and warranty relating to a particular Mortgage
          Loan), the party discovering such breach shall give prompt written notice
          to the
          others. The Seller shall promptly reimburse the Servicer and the Trustee
          for any
          expenses reasonably incurred by the Servicer or the Trustee in respect
          of
          enforcing the remedies for the breach.

         

        Within
          90
          days of the earlier of either discovery by or notice to the Seller of any
          breach
          of a representation or warranty made by the Seller that materially and
          adversely
          affects the value of a Mortgage Loan or the Mortgage Loans or the interest
          therein of the Purchaser, the Seller shall use its best efforts promptly
          to cure
          such breach in all material respects and, if such breach cannot be cured,
          the
          Seller shall, at the Purchaser’s option, repurchase such Mortgage Loan at the
          Purchase Price. In the event that such a breach shall involve any representation
          or warranty set forth in Section 3.02 and such breach cannot be cured within
          90
          days of the earlier of either discovery by or notice to the Seller of such
          breach, all of the Mortgage Loans shall, at the Purchaser’s option, be
          repurchased by the Seller at the Purchase Price. The Seller may, assuming
          the
          Seller has a Qualified Substitute Mortgage Loan, rather than repurchase
          a
          deficient Mortgage Loan as provided above, remove such Mortgage Loan (in
          which
          case it shall become a Deleted Mortgage Loan) and substitute in its place
          a
          Qualified Substitute Mortgage Loan or Loans. Upon substitution, such Qualified
          Substitute Mortgage Loan or Loans shall be subject in all respects to the
          terms
          of this Agreement, including all applicable representations and warranties
          thereof included in this Agreement, as of the date of such substitution.
          If the
          Seller does not provide a Qualified Substitute Mortgage Loan or Loans,
          it shall
          repurchase the deficient Mortgage Loan. Any repurchase of a Mortgage Loan(s)
          pursuant to the foregoing provisions of this Section 3.03 shall occur on
          a date
          specified in the Pooling and Servicing Agreement and shall be accomplished
          by
          deposit in accordance with Section 2.03 of the Pooling and Servicing Agreement.
          Any repurchase or substitution required by this Section shall be made in
          a
          manner consistent with Section 2.03 of the Pooling and Servicing
          Agreement.

         

        At
          the
          time of substitution or repurchase of any deficient Mortgage Loan, the
          Purchaser
          and the Seller shall arrange for the reassignment of the repurchased or
          substituted Mortgage Loan to the Seller and the delivery to the Seller
          of any
          documents held by the Purchaser relating to the deficient or repurchased
          Mortgage Loan. In the event the Purchase Price is deposited in the Collection
          Account, the Seller shall, simultaneously with such deposit, give written
          notice
          to the Purchaser that such deposit has taken place. Upon such repurchase,
          the
          Mortgage Loan Schedule shall be amended to reflect the withdrawal of the
          repurchased Mortgage Loan from this Agreement.

         

        As
          to any
          Deleted Mortgage Loan for which the Seller substitutes a Qualified Substitute
          Mortgage Loan or Loans, the Seller shall effect such substitution by delivering
          to the Purchaser or its designee for such Qualified Substitute Mortgage
          Loan or
          Loans the Mortgage Note, the Mortgage, the Assignment and such other documents
          and agreements as are required by the Pooling and Servicing Agreement,
          with the
          Mortgage Note endorsed as required therein. The Seller shall deposit in
          the
          Collection Account the Monthly Payment less the Servicing Fee due on such
          Qualified Substitute Mortgage Loan or Loans in the month following the
          date of
          such substitution. Monthly Payments due with respect to Qualified Substitute
          Mortgage Loans in the month of substitution will be retained by the Seller.
          For
          the month of substitution, distributions to the Purchaser will include
          the
          Monthly Payment due on such Deleted Mortgage Loan in the month of substitution,
          and the Seller shall thereafter be entitled to retain all amounts subsequently
          received by the Seller in respect of such Deleted Mortgage Loan. Upon such
          substitution, the Qualified Substitute Mortgage Loans shall be subject
          to the
          terms of this Agreement in all respects, and the Seller shall be deemed
          to have
          made with respect to such Qualified Substitute Mortgage Loan or Loans as
          of the
          date of substitution, the covenants, representations and warranties set
          forth in
          Sections 3.01 and 3.02.

         

        It
          is
          understood and agreed that the representations and warranties set forth
          in
          Section 3.01 shall survive delivery of the respective Mortgage Files to
          the
          Trustee on behalf of the Purchaser.

         

        It
          is
          understood and agreed that the obligations of the Seller set forth in Section
          3.03 to cure, repurchase and substitute for a defective Mortgage Loan and
          to
          indemnify the Parties as provided in Section 5.01 constitute the sole remedies
          of the Purchaser respecting a missing or defective document or a breach
          of the
          representations and warranties contained in Section 3.01 or 3.02.

         

         

         

        ARTICLE
          IV

         

        SELLER’S
          COVENANTS

         

        Section
          4.01  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 Purchaser,
          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 Purchaser, 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 4.01 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.

         

         

         

        ARTICLE
          V

         

        INDEMNIFICATION
          WITHRESPECT TO THE MORTGAGE LOANS

         

        Section
          5.01  Indemnification.

         

        The
          Seller agrees to indemnify and to hold each of the Purchaser, the Trustee,
          each
          of the officers and directors of each such entity and each person or entity
          who
          controls each such entity or person harmless against any and all claims,
          losses,
          penalties, fines, forfeitures, legal fees and related costs, judgments,
          and any
          other costs, fees and expenses that the Purchaser, the Trustee, or any
          such
          person or entity may sustain in any way (i) related to the failure of the
          Seller
          to perform its duties in compliance with the terms of this Agreement, (ii)
          arising from a breach by the Seller of its representations and warranties
          in
          Section 3.01 or 3.02 of this Agreement or (iii) related to the origination
          or
          prior servicing of the Mortgage Loans by reason of any acts, omissions,
          or
          alleged acts or omissions of the Seller or any servicer. The Seller shall
          immediately notify the Purchaser and the Trustee if a claim is made by
          a third
          party with respect to this Agreement. The Seller shall assume the defense
          of any
          such claim and pay all expenses in connection therewith, including reasonable
          counsel fees, and promptly pay, discharge and satisfy any judgment or decree
          which may be entered against the Purchaser, the Trustee or any such person
          or
          entity in respect of such claim.

         

        Promptly
          after receipt by any indemnified party under this Article V of notice of
          any
          claim or the commencement of any action, such indemnified party shall,
          if a
          claim in respect thereof is to be made against any indemnifying party under
          this
          Article V, notify the indemnifying party in writing of the claim or the
          commencement of that action; provided,
          however,
          that
          the failure to notify an indemnifying party shall not relieve it from any
          liability which it may have under this Article V except to the extent it
          has
          been materially prejudiced by such failure; provided,
          further,
          that
          the failure to notify any indemnifying party shall not relieve it from
          any
          liability which it may have to any indemnified party otherwise than under
          this
          Article V.

         

        If
          any
          such claim or action shall be brought against an indemnified party, and
          it shall
          notify the indemnifying party thereof, the indemnifying party shall be
          entitled
          to participate therein and, to the extent that it wishes, jointly with
          any other
          similarly notified indemnifying party, to assume the defense thereof with
          counsel reasonably satisfactory to the indemnified party. After notice
          from the
          indemnifying party to the indemnified party of its election to assume the
          defense of such claim or action, the indemnifying party shall not be liable
          to
          the indemnified party under this Article V for any legal or other expenses
          subsequently incurred by the indemnified party in connection with the defense
          thereof other than reasonable costs of investigation.

         

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

         

        Each
          indemnified party, as a condition of the indemnity agreements, shall use
          its
          reasonable efforts to cooperate with the indemnifying party in the defense
          of
          any such action or claim. No indemnifying party shall be liable for any
          settlement of any such action effected without its written consent (which
          consent shall not be unreasonably withheld), but if settled with its written
          consent or if there be a final judgment for the plaintiff in any such action,
          the indemnifying party agrees to indemnify and hold harmless any indemnified
          party from and against any loss or liability by reason of such settlement
          or
          judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
          party shall have requested an indemnifying party to consent to a settlement
          of
          any action, the indemnifying party agrees that it shall be liable for any
          settlement of any proceeding effected without its written consent if such
          settlement is entered into more than 30 days after receipt by such indemnifying
          party of the aforesaid request and the indemnifying party has not previously
          provided the indemnified party with written notice of its objection to
          such
          settlement. No indemnifying party shall effect any settlement of any pending
          or
          threatened proceeding in respect of which an indemnified party is or could
          have
          been a party and indemnity is or could have been sought hereunder, without
          the
          written consent of such indemnified party, unless settlement includes an
          unconditional release of such indemnified party from all liability and
          claims
          that are the subject matter of such proceeding.

         

         

         

        ARTICLE
          VI

         

        TERMINATION

         

        Section
          6.01  Termination.
          The
          respective obligations and responsibilities of the Seller and the Purchaser
          created hereby shall terminate, except for the Seller’s indemnity obligations as
          provided herein, upon the termination of the Trust as provided in Article
          X of
          the Pooling and Servicing Agreement.

         

         

         

        ARTICLE
          VII

         

        MISCELLANEOUS
          PROVISIONS

         

        Section
          7.01  Amendment.
          This
          Agreement may be amended from time to time by the Seller and the Purchaser,
          by
          written agreement signed by the Seller and the Purchaser.

         

        Section
          7.02  Governing
          Law.
          THIS
          AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
          PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
          INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK WITHOUT REGARDS TO
          ANY
          CONFLICT OF LAW PROVISIONS. THE PARTIES HERETO INTEND THAT THE PROVISIONS
          OF
          SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS
          AGREEMENT.

         

        Section
          7.03  Notices.
          All
          demands, notices and communications hereunder shall be in writing and shall
          be
          deemed to have been duly given when delivered as follows: (i) if to the
          Seller:
          IndyMac Bank, F.S.B., 3465 East Foothill Blvd., 2nd Floor, Pasadena, California
          91107, Attention: Secondary Marketing, or such other address as may hereafter
          be
          furnished to the Purchaser in writing by the Seller; (ii) if to the Purchaser:
          IndyMac ABS, Inc., 3465 East Foothill Blvd., 2nd Floor, Pasadena, California
          91107, Attention: Secondary Marketing, or such other address as may hereafter
          be
          furnished to the Seller in writing by the Purchaser.

         

        Section
          7.04  Severability
          of Provisions.
          If any
          one or more of the covenants, agreements, provisions or terms of this Agreement
          shall be held invalid for any reason whatsoever, 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 of enforceability of the other provisions of this
          Agreement.

         

        Section
          7.05  Counterparts.
          This
          Agreement may be executed in one or more counterparts and by the different
          parties hereto on separate counterparts, each of which, when so executed,
          shall
          be deemed to be an original, and such counterparts, together, shall constitute
          one and the same agreement.

         

        Section
          7.06  Further
          Agreements.
          The
          Purchaser and the Seller each agree to execute and deliver to the other
          such
          additional documents, instruments or agreements as may be necessary or
          reasonable and appropriate to effectuate the purposes of this Agreement
          or in
          connection with the issuance of the Certificates representing interests
          in the
          Mortgage Loans.

         

        Without
          limiting the generality of the foregoing, as a further inducement for the
          Purchaser to purchase the Mortgage Loans from the Seller, the Seller will
          cooperate with the Purchaser in connection with the sale of any of the
          securities representing interests in the Mortgage Loans. In that connection,
          the
          Seller will provide to the Purchaser any and all information and appropriate
          verification of information, whether through letters of its auditors and
          counsel
          or otherwise, as the Purchaser shall reasonably request and will provide
          to the
          Purchaser such additional representations and warranties, covenants, opinions
          of
          counsel, letters from auditors, and certificates of public officials or
          officers
          of the Seller as are reasonably required in connection with such transactions
          and the offering of investment grade securities rated by the Rating
          Agencies.

         

        Section
          7.07  Intention
          of the Parties.
          It is
          the intention of the parties that the Purchaser is purchasing, and the
          Seller is
          selling, the Mortgage Loans rather than pledging the Mortgage Loans to
          secure a
          loan by the Purchaser to the Seller. Accordingly, the parties hereto each
          intend
          to treat the transaction for federal income tax purposes and all other
          purposes
          as a sale by the Seller, and a purchase by the Purchaser, of the Mortgage
          Loans.
          In the event the transaction set forth herein is deemed not to be a sale,
          the
          Seller hereby grants to the Purchaser a security interest in all of the
          Seller’s
          right, title and interest in, to and under the Mortgage Loans and other
          property
          described above, whether now existing or hereafter created, to secure all
          of the
          Seller’s obligations hereunder; and this Agreement shall constitute a security
          agreement under applicable law. The Purchaser will have the right to review
          the
          Mortgage Loans and the related Mortgage Files to determine the characteristics
          of the Mortgage Loans which will affect the federal income tax consequences
          of
          owning the Mortgage Loans and the Seller will cooperate with all reasonable
          requests made by the Purchaser in the course of such review.

         

        Section
          7.08  Successors
          and Assigns: Assignment of Purchase Agreement.
          This
          Agreement shall bind and inure to the benefit of and be enforceable by
          the
          Seller, the Purchaser and the Trustee. The obligations of the Seller under
          this
          Agreement cannot be assigned or delegated by the Seller to a third party
          without
          the consent of the Purchaser, which consent shall be at the Purchaser’s sole
          discretion, except that the Purchaser acknowledges and agrees that the
          Seller
          may assign its obligations hereunder to any Person into which the Seller
          is
          merged or any corporation resulting from any merger, conversion or consolidation
          to which the Seller is a party or any Person succeeding to the business
          of the
          Seller. The parties hereto acknowledge that the Purchaser is acquiring
          the
          Mortgage Loans for the purpose of contributing them to a trust that will
          issue
          the Certificates representing undivided interests in such Mortgage Loans.
          As an
          inducement to the Purchaser to purchase the Mortgage Loans, the Seller
          acknowledges and consents to the assignment by the Purchaser to the Trustee
          for
          the benefit of the Certificateholders of all of the Purchaser’s rights against
          the Seller pursuant to this Agreement insofar as such rights relate to
          Mortgage
          Loans transferred to the Trustee and to the enforcement or exercise of
          any right
          or remedy against the Seller pursuant to this Agreement by the Trustee.
          Such
          enforcement of a right or remedy by the Trustee shall have the same force
          and
          effect as if the right or remedy had been enforced or exercised by the
          Purchaser
          directly.

         

        Section
          7.09  Survival.
          The
          representations and warranties set forth in Sections 3.01 and 3.02, the
          remedies
          set forth in Section 3.03 and the provisions of Article V hereof shall
          survive
          the purchase of the Mortgage Loans hereunder.

         

        Section
          7.10  Third
          Party Beneficiary. 
          The Certificate Insurer, if any, shall be a third party beneficiary hereof,
          until such time as the Certificate Principal Balance of the Class A Certificates
          has been reduced to zero and all amounts owed to the Certificate Insurer
          have
          been paid in full, and may enforce the terms hereof as if a party hereto.
          The
          Trustee shall be a third party beneficiary hereof.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Seller and the Purchaser have caused their names to
          be
          signed to this Mortgage Loan Purchase Agreement by their respective officers
          thereunto duly authorized as of the day and year first above
          written.

         

        
          	 	 	 	 	 	 	
                  INDYMAC
                    ABS, INC., as Purchaser

                
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	
                  Name: 

                
	 	 	 	 	 	 	 	
                  Title: 

                

        

        

        
          	 	 	 	 	 	 	
                  INDYMAC
                    BANK, F.S.B., as Seller

                
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
                  By:

                	 
	 	 	 	 	 	 	 	
                  Name: 

                
	 	 	 	 	 	 	 	
                  Title: 

                

        

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	
                  SCHEDULE
                    I

                

        

        

         

        MORTGAGE
          LOAN SCHEDULE

         

        (Available
          Upon Request)

         

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	
                  EXHIBIT
                    A

                

        

        

        

        Representations
          and Warranties of the Seller Regarding the Mortgage
          Loans.

         

        The
          Seller hereby represents and warrants to the Purchaser, as of the Closing
          Date,
          or if so specified herein, as of the related Cut-off Date as
          follows.

         

        (i) The
          information set forth on the Mortgage Loan Schedule as to each Mortgage
          Loan is
          true and correct as of the Cut-off Date.

         

        (ii) As
          of the
          Closing Date, all regularly scheduled Monthly Payments due with respect
          to each
          Mortgage Loan up to and including the first day of the month before the
          Cut-off
          Date have been made; and as of the Cut-off Date, no Mortgage Loan had more
          than
          one regularly scheduled Monthly Payment that was 30 or more days Delinquent
          during the twelve months before the Cut-off Date.

         

        (iii) With
          respect to each Mortgage Loan, the related Mortgage is a valid and enforceable
          first lien on the Mortgaged Property, subject only to (a) the lien of
          nondelinquent current real property taxes and assessments, (b) covenants,
          conditions and restrictions, rights of way, easements and other matters
          of
          public record as of the date of recording of such Mortgage, such exceptions
          appearing of record being generally acceptable to mortgage lending institutions
          in the area wherein the related Mortgaged Property is located or specifically
          reflected in the appraisal made in connection with the origination of the
          related Mortgage Loan, and (c) other matters to which like properties are
          commonly subject which do not materially interfere with the benefits of
          the
          security intended to be provided by such Mortgage.

         

        (iv) Immediately
          before the assignment of the Mortgage Loans to the Purchaser, the Seller
          had
          good title to, and was the sole owner of, each Mortgage Loan free and clear
          of
          any pledge, lien, encumbrance or security interest and had full right and
          authority, subject to no interest or participation of, or agreement with,
          any
          other party, to sell and assign the same pursuant to this
          Agreement.

         

        (v) As
          of the
          date of origination of each Mortgage Loan, there was no delinquent tax
          or
          assessment lien against the related Mortgaged Property. Except for payment
          defaults permitted in clause (ii) above, there are no defaults in complying
          with
          the terms of the Mortgage, or an escrow of funds has been established in
          an
          amount sufficient to pay for every such item which remains unpaid and which
          has
          been assessed but is not yet due and payable. The Seller has not advanced
          funds,
          or induced, solicited or knowingly received any advance of funds by a party
          other than the Mortgagor, directly or indirectly, for the payment of any
          amount
          required under the Mortgage Loan, except for interest accruing from the
          date of
          the Mortgage Note or date of disbursement of the Mortgage Loan proceeds,
          whichever is earlier, to the date which precedes by one month the Due Date
          of
          the first installment of principal and interest.

         

        (vi) There
          is
          no valid offset, defense or counterclaim to any Mortgage Note or Mortgage,
          including the obligation of the Mortgagor to pay the unpaid principal of
          or
          interest on such Mortgage Note. No Mortgagor has been released, in whole
          or in
          part, except in connection with an assumption agreement, approved by the
          issuer
          of the title insurer, to the extent required by the policy, and which assumption
          agreement is part of the Mortgage Loan File delivered to the Custodian
          or to
          such other Person as the Purchaser shall designate in writing and the terms
          of
          which are reflected in the Mortgage Loan Schedule.

         

        (vii) There
          are
          no mechanics’ liens or claims for work, labor or material affecting any
          Mortgaged Property which are or may be a lien prior to or equal with, the
          lien
          of such Mortgage, except those which are insured against by the title insurance
          policy referred to in item (xi) below.

         

        (viii) No
          Mortgaged Property has been materially damaged by water, fire, earthquake,
          windstorm, flood, tornado, hurricane or similar casualty (excluding casualty
          from the presence of hazardous wastes or hazardous substances, as to which
          the
          Seller makes no representation) so as to affect adversely the value of
          the
          related Mortgaged Property as security for the Mortgage Loan.

         

        (ix) Each
          Mortgage Loan at origination complied in all material respects with applicable
          local, state and federal laws and regulations, including usury, equal credit
          opportunity, anti-money laundering laws, real estate settlement procedures
          and
          truth-in-lending and disclosure laws, or any noncompliance does not have
          a
          material adverse effect on the value of the related Mortgage Loan.

         

        (x) As
          of the
          Closing Date the Seller has not: modified the Mortgage in any material
          respect
          (except that a Mortgage Loan may have been modified by a written instrument
          which has been recorded or submitted for recordation, if necessary, to
          protect
          the interests of the Purchaser and which has been delivered to the Purchaser);
          satisfied, cancelled or subordinated such Mortgage in whole or in part;
          released
          the related Mortgaged Property in whole or in part from the lien of such
          Mortgage; or executed any instrument of release, cancellation, modification
          or
          satisfaction with respect thereto.

         

        (xi) A
          lender’s policy of title insurance, together with extended coverage endorsement,
          if applicable, in an amount at least equal to the Stated Principal Balance
          of
          each such Mortgage Loan as of the Cut-off Date or a commitment (binder)
          to issue
          the same was effective on the date of the origination of each Mortgage
          Loan and
          each such policy is valid and remains in full force and effect.

         

        (xii) To
          the
          best of the Seller’s knowledge, all inspections, licenses and certificates
          required to be made or issued with respect to the Mortgaged Property and,
          with
          respect to the use of the same, have been made or obtained from the appropriate
          authorities, unless the lack thereof would not have a material adverse
          effect on
          the value of the Mortgaged Property. All parties to the Mortgage Note,
          the
          Mortgage and any other such related agreement had legal capacity to enter
          into
          the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage
          and
          any such agreement, and the Mortgage Note, the Mortgage and any other such
          related agreement have been duly and properly executed by other such related
          parties. The Seller has reviewed all of the documents constituting the
          Mortgage
          File.

         

        (xiii) The
          Mortgage Note and the related Mortgage are genuine, and each is the legal,
          valid
          and binding obligation of the maker thereof, enforceable in accordance
          with its
          terms and under applicable law.

         

        (xiv) The
          proceeds of the Mortgage Loan have been fully disbursed and there is no
          requirement for future advances thereunder.

         

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

         

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

         

        (xvii) To
          the
          best of the Seller’s knowledge, there is no proceeding pending or threatened for
          the total or partial condemnation of any Mortgaged Property, nor is such
          a
          proceeding currently occurring.

         

        (xvii) To
          the
          best of the Seller’s knowledge, there is no material event which, with the
          passage of time or with notice and the expiration of any grace or cure
          period,
          would constitute a material non-monetary default, breach, violation or
          event of
          acceleration under the Mortgage or the related Mortgage Note; and the Seller
          has
          not waived any material non-monetary default, breach, violation or event
          of
          acceleration.

         

        (xviii) Each
          Mortgage File contains an appraisal of the related Mortgaged Property in
          a form
          acceptable to Fannie Mae or Freddie Mac.

         

        (xix) Any
          leasehold estate securing a Mortgage Loan has a stated term at least as
          long as
          the term of the related Mortgage Loan.

         

        (xx) Each
          Mortgage Loan was selected from among the outstanding residential lot mortgage
          loans in the Seller’s portfolio at the Closing Date as to which the
          representations and warranties made with respect to the Mortgage Loans
          set forth
          herein can be made. No such selection was made in a manner intended to
          adversely
          affect the interests of the Purchaser.

         

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

         

        (xxii) As
          of the
          Closing Date, no two Mortgaged Properties are mortgaged by any one
          borrower.

         

        (xxiii) None
          of
          the Mortgage Loans are classified as (a) “high cost” loans under the Home
          Ownership and Equity Protection Act of 1994 or (b) “high cost,” “threshold,”
“covered,” “predatory” or “abusive” loans under any other applicable state,
          federal or local law.

         

        (xxiv) No
          Mortgage Loans are subject to the Georgia Fair Lending Act (“GFLA”), effective
          from October 1, 2002 to March 6, 2003.

         

        (xxv) No
          Mortgage Loan is subject to the requirements of the Home Ownership and
          Equity
          Protection Act of 1994 (“HOEPA”) and no Mortgage Loan is in violation of any
          state law or ordinance similar to HOEPA.

         

        (xxvi) Each
          Prepayment Charge is enforceable against and was originated in compliance
          with
          all federal, state and local laws, (except to the extent that (i) the
          enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
          receivership and other similar laws relating to creditors’ rights generally and
          (ii) the collectability thereof may be limited due to acceleration in connection
          with a foreclosure or other involuntary payoff).

         

        (xxvii) No
          loan
          is a high cost loan or a covered loan, as applicable (as such terms are
          defined
          in the then-current version of Standard & Poor’s LEVELS which is now Version
          5.7 Glossary Revised, Appendix E).

         

        (xxviii) The
          Mortgage has not been satisfied, canceled, subordinated or rescinded, in
          whole
          or in part, and the Mortgaged Property has not been released from the lien
          of
          the Mortgage, in whole or in part, nor has any instrument been executed
          that
          would effect any such release, cancellation, subordination or rescission.
          The
          Seller has not waived the performance by the Mortgagor of any action, if
          the
          Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
          in default, nor has the Seller waived any default resulting from any action
          or
          inaction by the Mortgagor.

         

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

         

        (xxx) Each
          Mortgage Loan has been underwritten and serviced substantially in accordance
          with the Seller’s guidelines, subject to such variances as are reflected on the
          Mortgage Loan Schedule or that the Seller has approved.

         

        (xxxi) To
          the
          best of the Seller’s knowledge, there is no pending action or proceeding
          directly involving the Mortgaged Property in which compliance with any
          environmental law, rule or regulation is an issue.

         

        (xxxii) The
          Mortgagor has not notified the Seller, and the Seller has no knowledge
          of any
          relief requested or allowed to the Mortgagor under the Relief Act.

         

        (xxxiii) Each
          original Mortgage was recorded and all subsequent assignments of the original
          Mortgage (other than the assignment to the Purchaser) have been recorded
          in the
          appropriate jurisdictions wherein such recordation is necessary to perfect
          the
          lien thereof as against creditors of the Seller, or is in the process of
          being
          recorded.

         

        (xxxiv) No
          Mortgage Loan is (a) subject to, covered by or in violation of the provisions
          of
          HOEPA, (b) a “high cost”, “covered” (except with respect to purchase money
“covered loans” under the New Jersey Home Ownership Security Act of 2002),
“abusive”, “predatory”, “home loan”, “Oklahoma Section 10” or “high risk”
mortgage loan (or a similarly designated loan using different terminology)
          under
          any federal, state or local law, including without limitation, the provisions
          of
          the Georgia Fair Lending Act, New York Banking Law, Section 6-1, the City
          of
          Oakland, California Anti-Predatory Lending Ordinance No. 12361, the Arkansas
          Home Loan Protection Act, effective as of September 22, 2003, Kentucky
          State
          Statute KRS 360.100, effective as of June 25, 2003, the New Jersey Home
          Ownership Security Act of 2002, the New Mexico Home Loan Protection Act
          (N.M.
          Stat. Ann. §§ 58-21A-1 et seq.), the Illinois High-Risk Home Loan Act (815 Ill.
          Comp. Stat. 137/1 et seq.), the Oklahoma Home Ownership and Equity Protection
          Act, Nevada Assembly Bill No. 284, effective as of Oct. 1, 2003, the Minnesota
          Residential Mortgage Originator and Servicer Licensing Act (MN Stat. §58.137),
          the South Carolina High-Cost and Consumer Home Loans Act, effective January
          1,
          2004, or any other statute or regulation providing assignee liability to
          holders
          of such mortgage loans, or (c) subject to or in violation of any such or
          comparable federal, state or local statutes or regulations.

         

        (xxxv) The
          Mortgage Loan is not subject to any outstanding litigation for fraud,
          origination, predatory lending, servicing or closing practices.

         

        (xxxvi) Each
          Mortgage Loan has been serviced in all material respects in compliance
          with all
          applicable federal, state and local laws.

         

        (xxxvii) The
          Mortgage contains an enforceable provision (except as such enforcement
          may be
          effected by bankruptcy and insolvency laws or by general principals of
          equity)
          for the acceleration of the payment of the unpaid principal balance of
          the
          Mortgage Loan in the event that the Mortgaged Property is sold or transferred
          without the prior written consent of the mortgagee thereunder, and to the
          best
          of the Seller’s knowledge, such provision is enforceable.

         

        (xxxviii) None
          of
          the Fixed-Rate Mortgage Loans are, by their terms, assumable.

         

        (xxxix) To
          the
          best of Seller’s knowledge there was no fraud involved in the origination of any
          Mortgage Loan by the Mortgagee or by the Mortgagor, any Appraiser or any
          Other
          Party involved in the origination of the Mortgage Loan. 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        D

       

      MORTGAGE
        LOAN SCHEDULE

       

      
        As
          previously filed with the Securities and Exchange Commission on December
          21,
          2006.

      

      

       

      Available
        upon request

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      

       

      EXHIBIT
        E

       

      FORM
        OF REQUEST FOR RELEASE OF DOCUMENTS

       

      
        	
                To:

              	
                Deutsche
                  Bank National Trust Company

              

      

      1761
        East
        St. Andrew Place

      Santa
        Ana, California 92705-4934

      Attention:
        Trust Administration - IN06L4

       

      
        	 	
                Re:

              	
                Pooling
                  and Servicing Agreement dated as of December 1, 2006 among IndyMac
                  ABS,
                  Inc., as Depositor, IndyMac Bank, F.S.B., as Seller and Servicer,
                  and
                  Deutsche Bank National Trust Company, as Trustee with respect to
                  IndyMac
                  ABS, Inc., Residential Mortgage-Backed Trust, Series
                  2006-L4

              

      

      

       

      In
        connection with the administration of the Mortgage Loans held by you as Trustee
        pursuant to the above-captioned Pooling and Servicing Agreement, we request
        the
        release, and hereby acknowledge receipt of the Trustee’s Mortgage File Or the
        Mortgage Loan described below, for the reason indicated.

       

      Mortgage
        Loan Number:

       

      Mortgagor
        Name. Address & Zip Code:

       

      Reason
        for Requesting Documents (check one):

       

      
        	
                ______1.

              	
                Mortgage
                  Paid in Full

              
	 	 
	
                ______2.
                  

              	
                Foreclosure

              
	 	 
	
                ______3.
                  

              	
                Substitution

              
	 	 
	
                ______4.

              	
                Other
                  Liquidation (Repurchases, etc.)

              
	 	 
	
                ______5.

              	
                Nonliquidation
                     Reason:

              
	 	 

      

       

      Address
        to which Trustee should deliver

      the
        Trustee’s Mortgage File:

      
        	 
	 
	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                By:

              	 
	 	 	
                (authorized
                  agent)

              
	 	 	 
	 	
                Issuer:

              	 
	 	 	 
	 	 	 
	 	 	 
	 	
                Address:

              	 
	 	 	 
	 	 	 
	 	
                Date:

              	 
	 	 	 

      

      

      Trustee

       

      Deutsche
        Bank National Trust Company

       

      
        	
                Please
                  acknowledge the execution of the above request by your signature
                  and date
                  below:

              
	 	 	 	 
	
                Signature

              	 	
                Date

              	 
	 	 	 
	
                Documents
                  returned to Trustee:

              	 	 
	 	 	 	 
	 	 	 	 
	
                Trustee

              	 	
                Date

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F-1

       

      FORM
        OF
        TRUSTEE’S INITIAL CERTIFICATION

       

      _______________,
        200__

      

      
        	
                IndyMac
                  ABS, Inc.

                155
                  North Lake Avenue

                Pasadena,
                  California 91101

              	 

      

      

      
        	 	
                Re:

              	
                Pooling
                  and Servicing Agreement dated as of December 1, 2006 among IndyMac
                  ABS,
                  Inc., as Depositor, IndyMac Bank, F.S.B., as Seller and Servicer,
                  and
                  Deutsche Bank National Trust Company, as Trustee with respect to
                  IndyMac
                  ABS, Inc., Residential Mortgage-Backed Trust, Series
                  2006-L4

              

      

      

      Ladies
        and Gentlemen:

       

      Attached
        is the Trustee’s preliminary exception report delivered in accordance with
        Section 2.02 of the referenced Pooling and Servicing Agreement (the “Pooling and
        Servicing Agreement”). Capitalized terms used but not otherwise defined herein
        shall have the meanings set forth in the Pooling and Servicing
        Agreement.

       

      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 the Mortgage File pertaining to the Mortgage Loans
        identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
        effectiveness or suitability of any such Mortgage Loan or (iii) whether any
        Mortgage File included any of the documents specified in clause (vi) of Section
        2.01 of the Pooling and Servicing Agreement.

       

      
        	 	 	 	 	 	 	 	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

       

      

       

      EXHIBIT
        F-2

       

      FORM
        OF
        TRUSTEE’S FINAL CERTIFICATION

       

      
        	 
	
                [Date]

              

      

      

      

      

      
        	
                IndyMac
                  ABS, Inc.

                155
                  North Lake Avenue

                Pasadena,
                  California 91101

              

      

      

      
        	 	
                Re:

              	
                Pooling
                  and Servicing Agreement dated as of December 1, 2006 among IndyMac
                  ABS,
                  Inc., as Depositor, IndyMac Bank, F.S.B., as Seller and Servicer,
                  and
                  Deutsche Bank National Trust Company, as Trustee with respect to
                  IndyMac
                  ABS, Inc., Residential Mortgage-Backed Trust, Series
                  2006-L4

              

      

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of 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 Schedule I hereto) it (or its custodian) has received the applicable
        documents listed in Section 2.01 of the Pooling and Servicing
        Agreement.

       

      The
        undersigned hereby certifies that as to each Mortgage Loan identified on
        the
        Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
        hereto, it has reviewed the documents listed above and has determined that
        each
        such document appears to be complete and, based on an examination of such
        documents, the information set forth in items (1), (3), (10), (11), (15)
        and
        (18) in the definition of Mortgage Loan Schedule is correct.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement. This Certificate is qualified
        in
        all respects by the terms of said Pooling and Servicing Agreement.

       

      
        	 	 	 	 	 	 	 	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

       

      

       

      EXHIBIT
        F-3

       

      FORM
        OF
        RECEIPT OF MORTGAGE NOTE

       

      

      
        	
                IndyMac
                  ABS, Inc.

                155
                  North Lake Avenue

                Pasadena,
                  California 91101

              	 

      

      

      
        	 	
                Re:

              	
                IndyMac
                  ABS, Inc., IndyMac Residential Mortgage-Backed Trust, Series 2006-L4,
                  Mortgage-Backed Certificates 

              

      

      

      Ladies
        and Gentlemen:

       

      Pursuant
        to Section 2.01 of the Pooling and Servicing Agreement, dated as of December
        1,
        2006, among IndyMac ABS, Inc. as Depositor, IndyMac Bank, F.S.B. as Seller
        and
        Servicer and Deutsche Bank National Trust Company as Trustee (the “Trustee”), we
        hereby acknowledge the receipt of the original Mortgage Notes with any
        exceptions thereto listed on Exhibit 1.

       

      
        	 	 	 	 	 	 	 	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        G

       

      [RESERVED]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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 _____________, successor by merger to ________________ (“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 presently lost
        and
        unavailable after diligent search has been made. Seller’s records show that an
        amount of principal and interest on said note is still presently outstanding,
        due, and unpaid, and Seller is still owner and holder in due course of said
        lost
        note.

       

      Seller
        executes this Affidavit for the purpose of inducing Deutsche Bank National Trust
        Company, as trustee on behalf of IndyMac ABS, Inc., IndyMac Residential
        Mortgage-Backed Trust 2006-L4, Mortgage Backed Certificates, Series 2006-L4,
        to
        accept the transfer of the above described loan from Seller.

       

      Seller
        agrees to indemnify Deutsche Bank National Trust Company, IndyMac ABS, Inc.
        and
        IndyMac Bank, F.S.B. harmless for any losses incurred by such parties resulting
        from the above described promissory 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 _____________.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

       

      FORM
        OF
        CERTIFICATION WITH RESPECT TO ERISA AND THE CODE

       

      [DATE]

      

      
        	
                IndyMac
                  ABS, Inc.

                155
                  North Lake Avenue

                Pasadena,
                  California 91101

              	
                Deutsche
                  Bank National Trust Company

                1761
                  East St. Andrew Place

                Santa
                  Ana, California 92705-4934

                Attention:
                  Trust Administration - IN06L4

              

      

      

      
        	 	
                Re:

              	
                IndyMac
                  ABS, Inc., IndyMac Residential Mortgage-Backed Trust 2006-L4,

                Mortgage-Backed
                  Certificates, Series 2006-L4

              

      

      

      Ladies
        and Gentlemen:

       

      _______________________________
        (the “Transferee”) intends to acquire from __________________________ (the
“Transferor”) $____________ Initial Certificate Principal Balance of IndyMac
        Residential Mortgage-Backed Trust 2006-L4, Mortgage Backed Certificates,
        Series
        2006-L4, Class ___ (the “Certificates”), issued pursuant to a Pooling and
        Servicing Agreement (the “Pooling and Servicing Agreement”) dated as of December
        1, 2006 among IndyMac ABS, Inc. as depositor (the “Depositor”), IndyMac Bank,
        F.S.B. as seller (the “Seller”) and servicer (the “Servicer”) and Deutsche Bank
        National Trust Company as trustee (the “Trustee”). Capitalized terms used herein
        and not otherwise defined shall have the meanings assigned thereto in the
        Pooling and Servicing Agreement. The Transferee hereby certifies, represents
        and
        warrants to, and covenants with the Depositor, the Trustee and the Servicer
        the
        following:

       

      The
        Certificates (i) are not being acquired by, and will not be transferred to,
        any
        employee benefit plan within the meaning of section 3(3) of the Employee
        Retirement Income Security Act of 1974, as amended (“ERISA”), or other
        retirement arrangement, including individual retirement accounts and annuities,
        Keogh plans and bank collective investment funds and insurance company general
        or separate accounts in which such plans, accounts or arrangements are invested,
        that is subject to Section 406 of ERISA or Section 4975 of the Internal Revenue
        Code of 1986 (the “Code”) (any of the foregoing, a “Plan”), (ii) are not being
        acquired with “plan assets” of a Plan within the meaning of the Department of
        Labor (“DOL”) regulation, 29 C.F.R. § 2510.3-101 and (iii) will not be
        transferred to any entity that is deemed to be investing in plan assets within
        the meaning of the DOL regulation at 29 C.F.R. § 2510.3-101.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

                 

                [Transferee]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        J

       

      FORM
        OF
        RULE 144A INVESTMENT LETTER

       

      [Date]

       

      

      
        	
                IndyMac
                  ABS, Inc.

                155
                  North Lake Avenue

                Pasadena,
                  California 91101

              	
                Deutsche
                  Bank National Trust Company

                1761
                  East St. Andrew Place

                Santa
                  Ana, California 92705-4934

                Attention:
                  Trust Administration - IN06L4

              

      

      

      
        	 	
                Re:

              	
                IndyMac
                  ABS, Inc., IndyMac Residential Mortgage-Backed Trust 2006-L4,

                Mortgage-Backed
                  Certificates Series 2006-L4

              

      

      

       

      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)  [Reserved];

       

      (d)  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 Securities Act or that would render the disposition of the Certificates
        a
        violation of Section 5 of the Securities 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;

       

      (e)  we
        are a
“qualified institutional buyer” as that term is defined in Rule 144A under the
        Securities 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
        Securities Act; and

       

      (f)  either
        (i) we are not an employee benefit or other plan subject to the prohibited
        transaction provisions of the Employee Retirement Income Security Act of
        1974,
        as amended (“ERISA), or Section 4975 of the Internal Revenue Code of 1986, as
        amended (“Plan”), or any other person (including an investment manager, a named
        fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf
        of
        or purchasing any Certificate with “plan assets” of any Plan within the meaning
        of the Department of Labor (“DOL”) regulation at 29 C.F.R. § 2510.3-101 or (ii)
        we have provided the Trustee with an Opinion of Counsel acceptable to and
        in
        form and substance satisfactory to the Trustee to the effect that the purchase
        of Certificates is permissible under applicable law, will not constitute
        or
        result in any non-exempt prohibited transaction under ERISA or Section 4975
        of
        the Code and will not subject the Trustee, the Depositor, the Servicer, the
        Certificate Insurer or the Trust Fund to any obligation or liability (including
        obligations or liabilities under ERISA or Section 4975 of the Code) in addition
        to those undertaken in the Pooling and Servicing Agreement.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

                 

                [NAME
                  OF TRANSFEREE]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        1 TO EXHIBIT J

       

      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:

       

      1.  As
        indicated below, the undersigned is the President, Chief Financial Officer,
        Senior Vice President or other executive officer of the Buyer.

       

      2.  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.

       

      _______
        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.

       

      3.  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.

       

      4.  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.

       

      5.  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.

       

      6.  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.

       

      

       

      

       

      
        	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Print
                  Name of Buyer

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Date:

              	 

      

      

       

      

        

        
          1Buyer
            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.

        

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        2 TO EXHIBIT J

       

      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 Buyers 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.

       

      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 of Adviser

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                IF
                  AN ADVISER:

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Print
                  Name of Buyer

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Date:

              	 

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      
        
        

      

      EXHIBIT
        K

       

      [RESERVED]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        L

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      [DATE]

       

      

      
        	
                IndyMac
                  ABS, Inc.

                155
                  North Lake Avenue

                Pasadena,
                  California 91101

              	 

      

      

      
        	 	
                Re:

              	
                IndyMac
                  ABS, Inc., IndyMac Residential Mortgage-Backed Trust 2006-L4,

                Mortgage-Backed
                  Certificates, Series 2006-L4

              

      

      

      Ladies
        and Gentlemen:

       

      In
        connection with our disposition of the above Certificates we certify that
        (a) we
        understand that the Certificates have not been registered under the Securities
        Act of 1933, as amended (the “Act”), and are being disposed by us in a
        transaction that is exempt from the registration requirements of the Act,
        (b) 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, in a manner that would be deemed, or taken any
        other action which would result in, a violation of Section 5 of the Act,
        (c) to
        the extent we are disposing of a Class R Certificate, we have no knowledge
        the
        Transferee is not a Permitted Transferee and (d) no purpose of the proposed
        disposition of a Class R Certificate is to impede the assessment or collection
        of tax.

       

      
        	
                Very
                  truly yours,

                 

                [TRANSFEROR]

              
	 	 	 	 	 	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      

       

      EXHIBIT
        M

       

      AFFIDAVIT
        OF TRANSFER OF CLASS R CERTIFICATES

      PURSUANT
        TO SECTION 5.02(D)

       

      INDYMAC
        ABS, INC. INDYMAC RESIDENTIAL MORTGAGE-BACKED TRUST 2006-L4,

      MORTGAGE-BACKED
        CERTIFICATES, SERIES 2006-L4

       

      
        	
                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 an Ownership Interest
        in Class R Certificates (the “Certificate”) issued pursuant to the Pooling and
        Servicing Agreement, dated as of December 1, 2006, (the “Agreement”), relating
        to the above-referenced Certificates, among the IndyMac ABS, Inc. (the
“Depositor”), IndyMac Bank, F.S.B., as seller (the “Seller”) and servicer (the
“Servicer”) and Deutsche Bank National Trust Company, as trustee (the
“Trustee”). 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 in the Certificate either (i) for its own account or (ii) as nominee,
        trustee or agent for another Person and has attached hereto an affidavit
        from
        such Person in substantially the same form as this affidavit. The Transferee
        has
        no knowledge that any such affidavit is false.

       

      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) to 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.

       

      4.  The
        Transferee has been advised of, and understands that a tax will be imposed
        on a
“pass-through entity” holding the Certificate if at any time during the taxable
        year of the pass-through entity a Person that is not a Permitted Transferee
        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 a Permitted Transferee 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.)

       

      5.  The
        Transferee has reviewed the provisions of Section 5.02(d) 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 5.02(d) 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
        in connection with any Transfer by a Person for whom the Transferee is acting
        as
        nominee, trustee or agent, 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 Trustee
        a
        certificate substantially in the form set forth as Exhibit L to the Agreement
        (a
“Transferor Certificate”) to the effect that such Transferee has no actual
        knowledge that the Person to which the Transfer is to be made is not a Permitted
        Transferee.

       

      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 a United States Person as defined in the Agreement.

       

      10.  The
        Transferee is aware that the Certificate may be a “non-economic residual
        interest” within the meaning of proposed Treasury regulations promulgated
        pursuant to the Code and that the transferor of a non-economic 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.

       

      11.  The
        Transferee is not an employee benefit plan that is subject to ERISA or a
        plan
        that is subject to Section 4975 of the Code, nor is it acting on behalf of
        such
        a plan.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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 _______, ____.

       

      
        	 	 	 	 	 	 	 	
                [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 __________, ____.

       

      

      
        	 
	
                NOTARY
                  PUBLIC

                 

              
	
                My
                  Commission expires the ____ day of ________, ____.
                  

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        N

       

      [RESERVED]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        O-1

       

      DEPOSITOR
        CERTIFICATION 

       

      FORM
        OF CERTIFICATION TO BE PROVIDED BY THE DEPOSITOR WITH 

      FORM
        10-K

       

      
        	
                Re:

              	
                INDYMAC
                  ABS, Inc.

              
	 	
                IndyMac
                  Residential Mortgage-Backed Trust, Series
                  2006-L4

              

      

      

      I,
        [identify the certifying individual], certify that:

       

      1. I
        have
        reviewed this annual report on Form 10-K and all reports on Form 10-D required
        to be filed in respect of the period covered by this report on Form 10-K
        of
        IndyMac Residential Mortgage-Backed Trust, Series 2006-L4 (the “Exchange Act
        Periodic Reports”);

       

      2. Based
        on
        my knowledge, the Exchange Act Periodic Reports, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in light of the circumstances under
        which
        such statements were made, not misleading with respect to the period covered
        by
        this report;

       

      3. Based
        on
        my knowledge, the distribution, servicing and other information required
        to be
        provided under Form 10-D for the period covered by this report is included
        in
        the Exchange Act Periodic Reports;

       

      4. Based
        on
        my knowledge and the servicer compliance statement(s) required in this report
        under Item 1123 of Regulation AB and except as disclosed in the Exchange
        Act
        Periodic Reports, the servicer(s) [has/have] fulfilled [its/their] obligations
        under the servicing agreement(s) in all material respects; and; 

       

      5. All
        of
        the reports on assessment of compliance with servicing criteria for asset-backed
        securities and their related attestation reports on assessment of compliance
        with servicing criteria for asset-backed securities required to be included
        in
        this report in accordance with Item 1122 of Regulation AB and Exchange Act
        Rules
        12A-18 and 15d-18 have been included as an exhibit to this report, except
        as
        otherwise disclosed in this report. Any material instances of noncompliance
        described in such reports have been disclosed in this report on Form
        10-K.

       

      In
        giving
        the certifications above, I have reasonably relied on information provided
        to me
        by the following unaffiliated parties: Deutsche Bank National Trust
        Company.

       

      Date:
        __________________

       

      
        	 	 
	 	
                [Signature]

                [Title]

              

      

      

       

      EXHIBIT
        O-2

       

      TRUSTEE
        CERTIFICATION

       

      TRUSTEE’S
        OFFICER’S CERTIFICATE 

       

      I,
        ____________________, a duly elected and acting officer of Deutsche Bank
        National Trust Company (the “Trustee”) hereby certify as follows:

       

      Reference
        is hereby made to the Pooling and Servicing Agreement dated as of December
        1,
        2006 (the “Pooling Agreement”) by and among IndyMac Bank, F.S.B., as seller and
        servicer, IndyMac ABS, Inc., as depositor and Deutsche Bank National Trust
        Company, as trustee, pursuant to which was created the IndyMac Residential
        Mortgage-Backed Trust, Series 2006-L4 (the “Trust”). Capitalized terms used
        herein but not defined shall have the meanings assigned to them in the Pooling
        and Servicing Agreement.

       

      1. I
        am an
        authorized officer of the Trustee and I have reviewed this annual report
        on Form
        10-K and all reports on Form 10-D required to be filed in respect of the
        period
        covered by this report on Form 10-K of IndyMac Residential Mortgage-Backed
        Trust, Series 2006-L4 (the “Exchange Act Periodic Reports”);

       

      2. For
        purposes of this certificate, “Relevant Information” means the information in
        the report on assessment of the Trustee’s compliance with the servicing criteria
        set forth in Item 1122(d) of Reg AB (the “Servicing Assessment”), the registered
        public accounting firm’s attestation provided in accordance with Rules 12A-18
        and 15d-18 under the Exchange Act and Section 1122(b) of Reg AB ( the
“Attestation Report”) applicable to the Trustee and the Monthly Statements
        (excluding information provided, or based on information provided, by the
        Servicer or any servicer) and those items in Exhibit S attached to the Pooling
        and Servicing Agreement which indicate the 4.03 statement or the Trustee
        as the
        responsible party during the Relevant Year. Based on my knowledge, the Relevant
        Information, taken as a whole, does not contain any untrue statement of a
        material fact or omit to state a material fact necessary to make the statements
        made, in light of the circumstances under which such statements were made,
        not
        misleading with respect to the period covered by this annual report;
        and

       

      3. Based
        on
        my knowledge, the distribution information required to be provided by the
        Trustee under the Pooling and Servicing Agreement is included in the Monthly
        Statements.

       

      4. I
        am
        responsible for reviewing the activities performed by the Trustee, as servicer
        under the Pooling and Servicing Agreement during the Relevant Year. Based
        upon
        the review required by the Pooling and Servicing Agreement and except as
        disclosed in the Servicing Assessment or Attestation Report, to the best
        of my
        knowledge, the Trustee has fulfilled its obligations under the Pooling and
        Servicing Agreement throughout the Relevant Year. Relevant Year shall mean
        200__. 

       

      

      

      DATED
        as
        of _____________, 200____. 

      

      

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        P

       

      FORM
        OF
        ADDITION NOTICE

      

      __________,
        200__

      

      Deutsche
        Bank National Trust Company

      1761
        East
        St. Andrew Place 

      Santa
        Ana, California 92705-4934

      

      [S&P]

      [Moody’s]

      [Fitch]

      

      
        	
                Re:

              	
                Pooling
                  and Servicing Agreement, dated as of December 1, 2006, among IndyMac
                  ABS,
                  Inc., IndyMac Bank, F.S.B. and Deutsche Bank National Trust Company,
                  relating to IndyMac ABS, Inc., IndyMac
                  Residential Mortgage-Backed
                  Trust, Series 2006-L4

              

      

      

      Ladies
        and Gentlemen:

      

      Pursuant
        to Section 2.04 of the referenced Pooling and Servicing Agreement, IndyMac
        ABS,
        Inc. has designated Subsequent Mortgage Loans to be sold to the Trust Fund
        on
        __________, 200__ with an aggregate principal balance of $__________ as of
        __________, 200__. Capitalized terms not otherwise defined herein have the
        meaning set forth in the Pooling and Servicing Agreement.

       

      Please
        acknowledge your receipt of this notice by countersigning the enclosed copy
        in
        the space indicated below and returning it to the attention of the
        undersigned.

       

      

      

      
        	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                INDYMAC
                  ABS, INC.

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      Acknowledged
        and Agreed:

      

      DEUTSCHE
        BANK NATIONAL TRUST 

      COMPANY,
        as Trustee

      

      
        	
                By:

              	 	 
	
                Name:

              	 	 
	
                Title:

              	 	 
	 	 	 
	 	 	 
	
                By:

              	 	 
	
                Name:

              	 	 
	
                Title:

              	 	 

      

      

       

      

       

      EXHIBIT
        Q

       

      FORM
        OF
        SUBSEQUENT TRANSFER INSTRUMENT

      

      Pursuant
        to this Subsequent Transfer Instrument, dated _________, 200__ (the
“Instrument”),
        among
        IndyMac ABS, Inc. (the “Depositor”),
        IndyMac Bank, F.S.B. (the “Seller”)
        and
        Deutsche Bank National Trust Company (the “Trustee”),
        and
        pursuant to the Pooling and Servicing Agreement, dated as of December 1,
        2006
        (the “Pooling
        and Servicing Agreement”),
        among
        the Depositor as depositor, the Seller as Servicer (in such capacity, the
        “Servicer”)
        and
        the Trustee as trustee of the IndyMac ABS, Inc., IndyMac Residential
        Mortgage-Backed Trust, Series 2006-L4, the Seller and Depositor agree to
        the
        sale by the Seller and the purchase by the Depositor, and the Depositor and
        Trustee agree to the sale by the Depositor and the purchase by the Trustee,
        on
        behalf of the Trust Fund, of the Mortgage Loans listed on the attached Schedule
        of Subsequent Mortgage Loans (the “Subsequent
        Mortgage Loans”).

       

      Capitalized
        terms used but not otherwise defined herein shall have the meanings set forth
        in
        the Pooling and Servicing Agreement.

       

      Section
        1. Conveyance
        of Subsequent Mortgage Loans.

       

      The
        Seller does hereby sell, transfer, assign, set over and convey to the Depositor,
        without recourse, and the Depositor does hereby sell, transfer, assign, set
        over
        and convey to the Trustee on behalf of the Trust Fund, without recourse,
        all of
        its right, title and interest in and to the Subsequent Mortgage Loans, including
        all amounts due on the Subsequent Mortgage Loans after the related Subsequent
        Cut-off Date, and all items with respect to the Subsequent Mortgage Loans
        to be
        delivered pursuant to Section 2.01 of the Pooling and Servicing Agreement;
        provided, however, that the Seller reserves and retains all right, title
        and
        interest in and to amounts due on the Subsequent Mortgage Loans on or prior
        to
        the related Subsequent Cut-off Date. The Seller and the Depositor,
        contemporaneously with the delivery of this Instrument, have delivered or
        caused
        to be delivered to the Depositor and the Trustee, respectively, each applicable
        item set forth in Section 2.01 of the Pooling and Servicing Agreement. The
        transfer to the Depositor by the Seller of the Subsequent Mortgage Loans
        identified on the attached Schedule of Subsequent Mortgage Loans shall be
        absolute and is intended by the Seller to constitute and to be treated as
        a sale
        by the Seller to the Depositor. The transfer to the Trustee by the Depositor
        of
        the Subsequent Mortgage Loans identified on the attached Schedule of Subsequent
        Mortgage Loans shall be absolute and is intended by the Depositor, the Servicer,
        the Trustee and the Certificateholders to constitute and to be treated as
        a sale
        by the Depositor to the Trust Fund.

       

      Additional
        terms of the sale are set forth on Attachment A hereto.

       

      Section
        2. Representations
        and Warranties; Conditions Precedent.

       

      Each
        of
        the Seller and the Depositor hereby confirms that each of the applicable
        conditions precedent and applicable representations and warranties set forth
        in
        Section 2.07 of the Pooling and Servicing Agreement are satisfied as of the
        date
        hereof.

       

      All
        terms
        and conditions of the Pooling and Servicing Agreement are hereby ratified
        and
        confirmed; provided, however, that in the event of any conflict, the provisions
        of this Instrument shall control over the conflicting provisions of the Pooling
        and Servicing Agreement.

       

      Section
        3. Recordation
        of Instrument.

       

      To
        the
        extent permitted by applicable law, this Instrument, or a memorandum thereof
        if
        permitted under applicable law, is subject to recordation in all appropriate
        public offices for real property records in all of the counties or other
        comparable jurisdictions in which any or all of the properties subject to
        the
        Mortgages are situated, and in any other appropriate public recording office
        or
        elsewhere, such recordation to be effected by the Servicer at the
        Certificateholders' expense on direction of the related Certificateholders,
        but
        only when accompanied by an Opinion of Counsel to the effect that such
        recordation materially and beneficially affects the interests of the
        Certificateholders or is necessary for the administration or servicing of
        the
        Mortgage Loans.

       

      Section
        4. Governing
        Law.

       

      This
        Instrument shall be construed in accordance with the laws of the State of
        New
        York and the obligations, rights and remedies of the parties hereunder shall
        be
        determined in accordance with such laws, without giving effect to principles
        of
        conflicts of law.

       

      Section
        5. Counterparts.

       

      This
        Instrument may be executed in one or more counterparts and by the different
        parties hereto on separate counterparts, each of which, when so executed,
        shall
        be deemed to be an original; such counterparts, together, shall constitute
        one
        and the same instrument.

       

      Section
        6. Successors
        and Assigns.

       

      This
        Instrument shall inure to the benefit of and be binding upon the Seller,
        the
        Depositor, the Trustee and their respective successors and assigns.

       

      

       

      
        	
                INDYMAC
                  ABS, INC.,

                as
                  Depositor

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 	 
	 	 
	
                INDYMAC
                  BANK, F.S.B.,

                as
                  Seller

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 	 
	 	 
	
                DEUTSCHE
                  BANK NATIONAL TRUST

                COMPANY,

                as
                  Trustee

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ATTACHMENTS

       

      

       

      A. Additional
        terms of sale.

       

      B. Schedule
        of Subsequent Mortgage Loans.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ATTACHMENT
        A

       

      ADDITIONAL
        TERMS OF SALE

       

      General

       

      Subsequent
        Cut-off Date: __________, 200__

       

      Subsequent
        Transfer Date: __________, 200__

       

      Aggregate
        Principal Balance of the Subsequent Mortgage Loans as of the Subsequent Cut-off
        Date: $__________

       

      Purchase
        Price: 100.00%

       

        The
        obligation of the Trust Fund to purchase a Subsequent Mortgage Loan on any
        Subsequent Transfer Date is subject to the satisfaction of the conditions
        set
        forth in the immediately preceding paragraph and the accuracy of the following
        representations and warranties with respect to each such Subsequent Mortgage
        Loan determined as of the applicable Subsequent Cut-off Date: (a)
        each such Subsequent
        Mortgage Loan must
        satisfy the representations and warranties specified herein and in the related
        Subsequent
        Transfer Instrument;
        (b) the Depositor will not select such Subsequent
        Mortgage Loan in
        a manner that it believes to be adverse to the interests of the
        Certificateholders or the Certificate Insurer; (c) the depositor will deliver
        certain opinions of counsel with respect to the validity of the conveyance
        of
        such Subsequent Mortgage Loan; and (d) following the purchase of any Subsequent
        Mortgage Loan by the trust, the Mortgage Loans (including the related Subsequent
        Mortgage Loans) will, as of the related Cut-off Date not vary by more than
        the
        permitted variance specified in the below table. For purposes of the
        calculations described in the below table, percentages of the Mortgage Loans
        will be based on the Stated
        Principal Balance of
        the Closing Date Mortgage Loans and Subsequent Mortgage Loans as of their
        respective Cut-off dates.

       

      

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ATTACHMENT
        B

       

      SCHEDULE
        OF SUBSEQUENT MORTGAGE LOANS

       

      AVAILABLE
        UPON REQUEST

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

       

      EXHIBIT
        R

      

      SERVICING
        CRITERIA TO BE ADDRESSED

      IN
        ASSESSMENT OF COMPLIANCE

      

      Key:

      X
        -
        obligation

      

      

      Where
        there are multiple checks for criteria the attesting party will identify
        in
        their management assertion that they are attesting only to the portion of
        the
        distribution chain they are responsible for in the related transaction
        agreements.

       

      

      
        	
                Reg
                  AB Reference

              	
                Servicing
                  Criteria

              	
                Primary
                  Servicer

              	
                Servicer

              	
                Trustee

              	
                Notes

              
	
                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

              	
                X

              	
                X-1

                 

              	
                1
                  - attest to knowledge but not to process

              
	
                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

              	
                X

              	 	 
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the Pool Assets are maintained. 

              	 	 	 	
                NA

              
	
                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

              	
                X

              	 	 
	 	
                Cash
                  Collection and Administration

              	 	 	 	 
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets 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

              	
                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

              	
                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

              	
                X

              	 	 
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of over collateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

              	
                X

              	
                X

              	 	 
	
                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

              	
                X

              	
                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

              	
                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 Pool Assets serviced by the Servicer.
                  

              	
                X

              	
                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

              	
                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

              	
                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

              	
                X

              	 	 
	 	
                Pool
                  Asset Administration

              	 	 	 	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related pool asset documents. 

              	
                X

              	 	 	 
	
                1122(d)(4)(ii)

              	
                Pool
                  assets 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

              	
                X

              	 	 
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset 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 pool asset documents. 

              	
                X

              	 	 	 
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the pool assets agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

              	
                X

              	 	 	 
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's pool assets
                  (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. 

              	
                X

              	 	 	 
	
                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. 

              	
                X

              	 	 	 
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset 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 pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

              	
                X

              	 	 	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents. 

              	
                X

              	 	 	 
	
                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 pool asset 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 pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 30
                  calendar
                  days of full repayment of the related pool assets, or such other
                  number of
                  days specified in the transaction agreements. 

              	
                X

              	 	 	 
	
                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. 

              	
                X

              	 	 	 
	
                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. 

              	
                X

              	 	 	 
	
                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. 

              	
                X

              	 	 	 
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

              	
                X

              	
                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

              	 

      

      

      

       

      EXHIBIT
        S

       

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the Trustee pursuant
        to Section 3.24(a)(iv). If the Trustee is indicated below as to any item,
        then
        the Trustee is primarily responsible for obtaining that information.

      

      Under
        Item 1 of Form 10-D: a) items marked “4.03 statement” are required to be
        included in the periodic Distribution Date statement under Section 6.07,
        provided by the Trustee based on information received from the Servicer;
        and b)
        items marked “Form 10-D report” are required to be in the Form 10-D report but
        not the 4.03 statement, provided by the party indicated. Information under
        all
        other Items of Form 10-D is to be included in the Form 10-D report.

      

      
        	
                Form

              	
                Item

              	
                Description

              	
                Responsible
                  Party

              
	
                10-D

              	
                Must
                  be filed within 15 days of the distribution date for the asset-backed
                  securities.

              
	
                1

              	
                Distribution
                  and Pool Performance Information

              	 
	
                Item
                  1121(a) - Distribution and Pool Performance
                  Information

              	 
	
                (1)
                  Any applicable record dates, accrual dates, determination dates
                  for
                  calculating distributions and actual distribution dates for the
                  distribution period.

              	
                4.03
                  statement

              
	
                (2)
                  Cash flows received and the sources thereof for distributions,
                  fees and
                  expenses.

              	
                4.03
                  statement

              
	
                (3)
                  Calculated amounts and distribution of the flow of funds for the
                  period
                  itemized by type and priority of payment, including:

              	
                4.03
                  statement

              
	
                (i)
                  Fees or expenses accrued and paid, with an identification of the
                  general
                  purpose of such fees and the party receiving such fees or
                  expenses.

              	
                4.03
                  statement

              
	
                (ii)
                  Payments accrued or paid with respect to enhancement or other support
                  identified in Item 1114 of Regulation AB (such as insurance premiums
                  or
                  other enhancement maintenance fees), with an identification of
                  the general
                  purpose of such payments and the party receiving such
                  payments.

              	
                4.03
                  statement

              
	
                (iii)
                  Principal, interest and other distributions accrued and paid on
                  the
                  asset-backed securities by type and by class or series and any
                  principal
                  or interest shortfalls or carryovers.

              	
                4.03
                  statement

              
	
                (iv)
                  The amount of excess cash flow or excess spread and the disposition
                  of
                  excess cash flow.

              	
                4.03
                  statement

              
	
                (4)
                  Beginning and ending principal balances of the asset-backed
                  securities.

              	
                4.03
                  statement

              
	
                (5)
                  Interest rates applicable to the pool assets and the asset-backed
                  securities, as applicable. Consider providing interest rate information
                  for pool assets in appropriate distributional groups or incremental
                  ranges.

              	
                4.03
                  statement

              
	
                (6)
                  Beginning and ending balances of transaction accounts, such as
                  reserve
                  accounts, and material account activity during the period.

              	
                4.03
                  statement

              
	
                (7)
                  Any amounts drawn on any credit enhancement or other support identified
                  in
                  Item 1114 of Regulation AB, as applicable, and the amount of coverage
                  remaining under any such enhancement, if known and
                  applicable.

              	
                4.03
                  statement

              
	
                (8)
                  Number and amount of pool assets at the beginning and ending of
                  each
                  period, and updated pool composition information, such as weighted
                  average
                  coupon, weighted average life, weighted average remaining term,
                  pool
                  factors and prepayment amounts.

              	
                4.03
                  statement

                 

                Updated
                  pool composition information fields to be as specified by Depositor
                  from
                  time to time

              
	
                (9)
                  Delinquency and loss information for the period. 

                 

                In
                  addition, describe any material changes to the information specified
                  in
                  Item 1100(b)(5) of Regulation AB regarding the pool
                  assets.

              	
                4.03
                  statement.

                 

                 

                Form
                  10-D report: Servicer

              
	
                (10)
                  Information on the amount, terms and general purpose of any advances
                  made
                  or reimbursed during the period, including the general use of funds
                  advanced and the general source of funds for
                  reimbursements.

              	
                4.03
                  statement

              
	
                (11)
                  Any material modifications, extensions or waivers to pool asset
                  terms,
                  fees, penalties or payments during the distribution period or that
                  have
                  cumulatively become material over time.

              	
                4.03
                  statement

              
	
                (12)
                  Material breaches of pool asset representations or warranties or
                  transaction covenants.

              	
                Form
                  10-D report: Securities Adminstrator (subject to Depositor
                  approval)

              
	
                (13)
                  Information on ratio, coverage or other tests used for determining
                  any
                  early amortization, liquidation or other performance trigger and
                  whether
                  the trigger was met.

              	
                4.03
                  statement

              
	
                (14)
                  Information regarding any new issuance of asset-backed securities
                  backed
                  by the same asset pool, 

                 

                [information
                  regarding] any pool asset changes (other than in connection with
                  a pool
                  asset converting into cash in accordance with its terms), such
                  as
                  additions or removals in connection with a prefunding or revolving
                  period
                  and pool asset substitutions and repurchases (and purchase rates,
                  if
                  applicable), and cash flows available for future purchases, such
                  as the
                  balances of any prefunding or revolving accounts, if
                  applicable.

                 

                Disclose
                  any material changes in the solicitation, credit-granting, underwriting,
                  origination, acquisition or pool selection criteria or procedures,
                  as
                  applicable, used to originate, acquire or select the new pool
                  assets.

              	
                Form
                  10-D report: Depositor

                 

                 

                Form
                  10-D report: Servicer

                 

                 

                 

                 

                 

                 

                 

                 

                 

                Form
                  10-D report: Servicer

              
	
                Item
                  1121(b) - Pre-Funding or Revolving Period Information

                 

                Updated
                  pool information as required under Item 1121(b).

              	
                Depositor

              
	
                2

              	
                Legal
                  Proceedings

              	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

                 

                Sponsor
                  (Seller)

                 

                Depositor

                 

                Trustee

                 

                Issuing
                  entity

                 

                Servicer,
                  affiliated Servicer, other Servicer servicing 20% or more of pool
                  assets
                  at time of report, other material servicers

                 

                Originator
                  of 20% or more of pool assets as of the Cut-off Date

                 

              	
                 

                 

                 

                Sponsor

                 

                Depositor

                 

                Trustee

                 

                Depositor

                 

                Servicer

                 

                 

                 

                Servicer

                 

                 

              
	
                3

              	
                Sales
                  of Securities and Use of Proceeds

              	 
	
                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	
                 

                 

                 

                Depositor

              
	
                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)

              	
                 

                 

                 

                Trustee

              
	
                5

              	
                Submission
                  of Matters to a Vote of Security Holders

              	 
	
                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Party
                  submitting the matter to Holders for vote

              
	
                6

              	
                Significant
                  Obligors of Pool Assets

              	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	
                Servicer

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                7

              	
                Significant
                  Enhancement Provider Information

              	 
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

                 

                Determining
                  applicable disclosure threshold

                 

                 

                Obtaining
                  required financial information or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial Information*

                 

                Determining
                  current maximum probable exposure

                 

                Determining
                  current significance percentage

                 

                 

                Obtaining
                  required financial information or effecting incorporation by
                  reference

              	
                 

                 

                Depositor

                 

                 

                Trustee

                 

                Trustee

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                8

              	
                Other
                  Information

              	 
	
                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                The
                  Responsible Party for the applicable Form 8-K item as indicated
                  below

              
	
                9

              	
                Exhibits

              	 
	
                Distribution
                  report

              	
                Trustee

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              
	
                8-K

              	
                Must
                  be filed within four business days of an event reportable on Form
                  8-K.

              
	
                1.01

              	
                Entry
                  into a Material Definitive Agreement

              	 
	
                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                Servicer;
                  or any of the following that is a party to the agreement if Servicer
                  is
                  not: Trustee, Sponsor, Depositor

              
	
                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.

              	
                Servicer;
                  or any of the following that is a party to the agreement if Servicer
                  is
                  not: Trustee, Sponsor, Depositor

              
	
                1.03

              	
                Bankruptcy
                  or Receivership

              	 
	
                Disclosure
                  is required regarding the bankruptcy or receivership, if known
                  to the
                  Servicer, with respect to any of the following: 

                 

                Sponsor
                  (Seller), Depositor, Servicer, affiliated Servicer, other Servicer
                  servicing 20% or more of pool assets at time of report, other material
                  servicers, Trustee, significant obligor, credit enhancer (10% or
                  more),
                  derivatives counterparty

              	
                Servicer

              
	
                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 4.03 statement

              	
                Servicer

              
	
                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

              	
                Trustee

              
	
                5.03

              	
                Amendments
                  to Articles of Incorporation or Bylaws; Change in Fiscal
                  Year

              	 
	
                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”

              	
                Depositor

              
	
                5.06

              	
                Change
                  in Shell Company Status

              	 
	
                [Not
                  applicable to ABS issuers]

              	
                Depositor

              
	
                6.01

              	
                ABS
                  Informational and Computational Material

              	 
	
                [Not
                  included in reports to be filed under Section 3.18]

              	
                Depositor

              
	
                6.02

              	
                Change
                  of Servicer or Trustee

              	 
	
                Requires
                  disclosure of any removal, replacement, substitution or addition
                  of any
                  servicer, affiliated servicer, other servicer servicing 10% or
                  more of
                  pool assets at time of report, other material servicers, certificate
                  administrator or trustee. Reg AB disclosure about any new servicer
                  or
                  trustee is also required.

              	
                Trustee
                  or Servicer

              
	
                6.03

              	
                Change
                  in Credit Enhancement or Other External Support

              	 
	
                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  Reg AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor
                  or Trustee

              
	
                6.04

              	
                Failure
                  to Make a Required Distribution

              	
                Trustee

              
	
                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

              
	
                7.01

              	
                Regulation
                  FD Disclosure

              	
                Depositor

              
	
                8.01

              	
                Other
                  Events

              	 
	
                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to security
                  holders.

              	
                Depositor

              
	
                9.01

              	
                Financial
                  Statements and Exhibits

              	
                The
                  Responsible Party applicable to reportable event

              
	
                10-K

              	
                Must
                  be filed within 90 days of the fiscal year end for the
                  registrant.

              
	
                9B

              	
                Other
                  Information

              	 
	
                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                The
                  Responsible Party for the applicable Form 8-K item as indicated
                  above

              
	
                15

              	
                Exhibits
                  and Financial Statement Schedules

              	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information

              	
                Servicer

              
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information

                 

                Determining
                  applicable disclosure threshold

                 

                Obtaining
                  required financial information or effecting incorporation by
                  reference

              	 
	
                Item
                  1115(b) - Derivative Counterparty Financial Information

                 

                Determining
                  current maximum probable exposure

                 

                Determining
                  current significance percentage

                 

                Obtaining
                  required financial information or effecting incorporation by
                  reference

              	
                 

                 

                Depositor

                 

                 

              
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

                 

                Sponsor
                  (Seller)

                 

                Depositor

                 

                Trustee

                 

                Issuing
                  entity

                 

                Servicer,
                  affiliated Servicer, other Servicer servicing 20% or more of pool
                  assets
                  at time of report, other material servicers

                 

                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	
                 

                 

                 

                Sponsor

                 

                Depositor

                 

                Trustee

                 

                Depositor

                 

                Servicer

                 

                 

                 

                Servicer

              
	
                Item
                  1119 - Affiliations and relationships between the following entities,
                  or
                  their respective affiliates, that are material to
                  Certificateholders:

                 

                Sponsor
                  (Seller)

                 

                Depositor

                 

                Trustee

                 

                Servicer,
                  affiliated Servicer, other Servicer servicing 20% or more of pool
                  assets
                  at time of report, other material servicers

                 

                 

                 

                 

                Originator

                 

                Credit
                  Enhancer/Support Provider

                 

                 

                Significant
                  Obligor

              	
                 

                 

                 

                Sponsor

                 

                Depositor

                 

                Trustee
                  (only as to affiliations between the Trustee and such other parties
                  listed)

                 

                 

                Servicer

                 

                 

                 

                 

                Servicer

                 

                Trustee

                 

                Servicer

              
	
                Item
                  1122 - Assessment of Compliance with Servicing
                  Criteria

              	
                Each
                  Party participating in the servicing function

              
	
                Item
                  1123 - Servicer Compliance Statement

              	
                Servicer,
                  ServicerEXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 27th day of November, 2006 (the “Effective Date”) by and between Affirmative Insurance Holdings, Inc. (the “Company”) and Robert Bondi (“Executive”).

PRELIMINARY STATEMENTS

A.            The Company desires to employ Executive as Executive Vice President: Chief Operating Officer, and Executive desires to be employed by the Company in this capacity. 

 

B.             Each party desires to set forth in writing the terms and conditions of their understandings and agreements.

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the Company hereby agrees to employ Executive and Executive hereby accepts such employment upon the terms and conditions set forth in this Agreement:

STATEMENT OF AGREEMENT

	
            1.       Position.
 	
             
 

(a)      The Company agrees to employ Executive in the position of Executive Vice President: Chief Operating Officer.  Executive shall serve and perform the duties which may from time to time be assigned to him by the Company’s Chief Executive Officer (“CEO”) and the Board of Directors (the “Board”).  

(b)        Executive agrees to serve as Executive Vice President: Chief Operating Officer and agrees that he will devote his best efforts and substantially all of his business time and attention to all facets of the business of the Company and will faithfully and diligently carry out the duties of these positions; provided, however that Executive may devote reasonable time to activities involving professional, charitable, and similar types of organizations, speaking engagements and memberships on the boards of directors of other organizations, so long a such activities do not interfere with the performance of Executive’s duties hereunder, and do not represent a conflict of interest.  Executive agrees to comply with all Company policies in effect from time to time, and to comply with all laws, rules and regulations applicable to the Company,
including, but not limited to, those established by the Department of Insurance, the Securities and Exchange Commission, or any self-regulatory organization having jurisdiction or authority over the Executive or the Company.    

(c)         Executive agrees to travel as reasonably necessary to perform his duties under this Agreement.  

(d)        The Company, in its sole discretion, may require that Executive be designated an employee of one or more of the Company’s subsidiaries or affiliates for such purposes as payroll and benefits administration. The employment of Executive by any such subsidiary or affiliate to facilitate the Company’s internal administrative purposes shall be 

 

1 of 17

 

 

considered employment by the Company within the meaning of this Agreement and shall not otherwise affect any of the rights or responsibilities of the Company or Executive hereunder, including, but not limited to, Executive’s level of compensation.

(e)        The position of Executive Vice President: Chief Operating Officer shall be located at the Company’s corporate office in Chicago, Illinois. 

2.       Term.  The initial term of this Agreement shall be three (3) years from the Effective Date (“Initial Term”), unless otherwise terminated pursuant to Section 5 of this Agreement.  Executive will not be entitled to any severance payments under this Agreement upon the expiration of the Initial Term or expiration of any subsequent extension of such term.  If the Company does not renew this Agreement prior to the expiration of the Agreement, Executive’s unvested stock options will immediately vest, as provided in the Stock Option Agreement, and Executive’s unvested restricted stock will immediately vest, as provided in the Restricted Stock Agreement.

	
            3.       Compensation and Benefits.
 	
             
 

(a)        Base Salary.  The Company shall pay Executive the gross amount of $11,538.46 on a bi-weekly basis (“Base Salary”) for the first year of employment, $12,500.00 on a bi-weekly basis (“Base Salary”) for the second year, and $13,461.54 a bi-weekly basis (“Base Salary”) for the third year.

(b)        Bonus Opportunities.  In addition to the Base Salary, Executive will be eligible to participate in the Company’s bonus plan(s) (“Bonus”) with eligibility for a target annual bonus of 50% of base salary.  Annual bonus amount to be determined based on achieving objectives as determined by the Board of Directors and the Compensation Committee.  A guaranteed minimum bonus will be paid in March, 2007 in the amount of $220,000, of which $100,000 will be payable in cash and the remainder will be paid in Restricted Stock

(c)         Stock.  Executive will also be eligible to participate in the Company’s 2004 Amended and Restated Stock Incentive Plan (“Stock Plan”), as may be amended from time to time.  Notwithstanding the foregoing, the Company’s Compensation Committee has authorized, and pursuant to the authority of the Compensation Committee, the Company hereby grants to Executive the following: 

(i)         Restricted Stock.  As of the Effective Date, the Company hereby grants to Executive Twenty-five Thousand (25,000) restricted shares of common stock of the Company under the terms of the Stock Plan subject to such restrictions and limitations as are set forth in the Restricted Stock Agreement attached hereto as Exhibit A.

(ii)        Stock Options.  As of the Effective Date, the Company hereby grants to Executive the following options to purchase shares of common stock of the Company under the terms of the Stock Plan subject to the restrictions and limitations as are set forth in the Stock Option Agreement attached hereto as Exhibit B.  

 

 

2 of 17

 

 

 

a)         Option 1 – Covering 60,000 shares with an exercise price equal to the fair market value of the shares on the day the Executive begins employment with the Company.

b)        Option 2 – Covering 50,000 shares with an exercise price of Twenty dollars ($20.00) per share.

c)         Option 3 – Covering 50,000 shares with an exercise price of Twenty-five dollars ($25.00) per share. 

Each vest over five (5) years, and have a ten (10) year term. Additional information is included in our Stock Option Agreement.  The Board of Directors and the Compensation Committee may consider additional annual stock option awards based on performance.

(a)      Payment.  Payment of all compensation to Executive hereunder shall be made in accordance with the terms of this Agreement and applicable Company policies in effect from time to time, including normal payroll practices, and shall be subject to all applicable withholdings and taxes.

(b)      Benefits Generally.  The Company shall make available to Executive, throughout the term of this Agreement, benefits as are generally provided by the Company to its executive officers, including but not limited to any group life, health, dental, vision, disability or accident insurance, 401(k) plan, or other such benefit plan or policy which may presently be in effect or which may hereafter be adopted by the Company for its executive officers and key management personnel; provided, however, that nothing herein contained shall be deemed to require the Company to adopt or maintain any particular plan or policy.

(c)      Vacation/Sick Time.  Executive shall be entitled to paid time off (“PTO”) accruing at 8.31 hours per period, or twenty seven (27) days when annualized, consistent with the policies then applicable to executive officers.

4.       Reimbursement of Expenses.  The Company shall reimburse Executive for all business expenses, which are reasonable and necessary and are incurred by Executive while performing his duties under this Agreement, upon presentation of expense statements, receipts and/or vouchers, or such other information and documentation as the Company may reasonably require.  The CEO reserves the right to deny any unreasonable business expense.

	
            5.       Termination.
 	
             
 	
             

	
                             (a)       Termination by the Company.  
	
              
 	
             
 
					

(i)         Without Cause.  The Company may terminate this Agreement for any reason or no reason upon thirty (30) days written notice to Executive.  If the Company terminates this Agreement pursuant to this provision, the Company will pay Executive:  (1) all earned but unpaid Base Salary (“Accrued Compensation”), (2) an additional severance payment equal to one (1) year of the sum of the Executive’s then-current (a) Base Salary and (b) an amount equal to the previous year’s Bonus paid to Executive (“Additional Severance Payment”); and (3) Executive’s unvested stock options and restricted stock awards will immediately vest, as 

 

3 of 17

 

 

provided in the Stock Option and Restricted Stock Agreements.  Upon termination of this Agreement by the Company pursuant to Section 5(a)(i), the Company shall pay the cost to Executive as such costs become due for continuation coverage under COBRA (hereinafter referred to as the “Termination COBRA Payments”) during the Continuation Period (as hereafter defined).  If and when the COBRA coverage ceases during the Continuation Period, the Company will reimburse Executive for comparable coverage as received under COBRA during the reminder of the Continuation Period.  The Continuation Period shall be the period commencing on the date of termination of this Agreement and end twelve (12) months after the date of termination of this Agreement.

(ii)        For Cause.  The Company may terminate this Agreement at any time for Cause.  Upon termination by the Company for Cause, Executive shall only be entitled to all earned but unpaid Base Salary.  “Cause” means any of the following: 

a)       Executive’s commission of theft, embezzlement, any other act of dishonesty relating to his employment with the Company, or any material violation of Company policies (including the Company’s ethics policies), or any law, rules, or regulations applicable to the Company, including, but not limited to, those established by the Department of Insurance, the  Securities and Exchange Commission, or any self-regulatory organization having jurisdiction or authority over Executive or the Company or any failure by the Executive to inform the Company of any violation of any law, rule or regulation by the Company or one of its direct or indirect subsidiaries of which the Executive has actual knowledge;

b)      Executive’s conviction of, or pleading guilty or nolo contendere to, a felony or any lesser crime having as its predicate element fraud, dishonesty, misappropriation, or moral turpitude;

c)       Executive’s neglect of duties or failure to perform obligations under this Agreement (other than due to disability) that materially causes harm to the Company or that has materially damaged or interfered with the Company’s relationships with its customers, suppliers, employees or other agents; provided, however, that the Company shall give the Executive written notice of any actions or omissions alleged to constitute Cause under this subsection (c) and the Executive shall have thirty (30) days to cure any such alleged Cause; 

d)      Executive’s substance abuse or illegal use of drugs that impairs Executive’s performance, that materially causes harm to the Company or that, in the reasonable judgment of the Board, has damaged or interfered with the Company’s relationships with its customers, suppliers, employees or other agents;  

e)       Executive’s commission of an act or acts in the performance of his duties under this Agreement amounting to gross negligence or willful misconduct; or

	
            f)
 	
            Executive’s breach of Sections 7 or 8 of this Agreement;  
 

The Company may place Executive on paid administrative leave from work during any investigation by the Company of a “cause” reason for Executive’s termination, and may prohibit Executive from coming into work, accessing the Company’s computer system, and contacting its employees or customers during this time; provided, however, upon a failure of the Board of 

 

4 of 17

 

 

Directors to find that Cause exists, such placing of Executive on leave two times during the Term shall constitute Good Reason under Section 5 below.

. 

(iii)       Change in Control.  If the Company terminates the Agreement following a Change in Control, which results in a substantial diminution of Executive’s duties and responsibilities or a material reduction of compensation or benefits, the Company shall pay Executive:  (1) Accrued Compensation, and (2) the Additional Severance Payment, and (3) Executive’s unvested stock options and restricted stock awards will immediately vest, as provided in the Stock Option and Restricted Stock Agreements.  “Change in Control” shall mean a transaction or event (or series of transactions or events) as a result of which any “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act (other than any Excluded Person, the Company or any Company employee benefit plan,
including its trustees) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of all of the securities of the Company held by New Affirmative LLC held immediately prior to such transaction or event (or series of transactions or events) and all director designees of New Affirmative LLC are no longer on the Company’s Board; provided, however, that in no event shall the distribution, sale, transfer, or acquisition of securities of the Company held by New Affirmative LLC or any Excluded Persons (or any successor thereof) to any Excluded Person trigger a “Change in Control.”  “Excluded Person” shall mean any of New Affirmative LLC, Affirmative Investment LLC, The Enstar Group, Inc. and any of their respective stockholders, members, affiliates, subsidiaries, or any such persons under common control.

	
            (b)
 	
            Termination by Executive.
 

(i)         No Good Reason.       Executive may terminate this Agreement for any reason upon providing thirty (30) days written notice to the Company.  If Executive terminates this Agreement pursuant to this provision, the Company will pay Executive all earned but unpaid Base Salary.

(ii)      For Good Reason.  For purposes of this Agreement, the term “Good Reason” shall mean termination of Executive’s employment with the Company by the Executive by giving at least thirty (30) days advance written notice within thirty (30) days of the occurrence of one of the following events:

a)       Executive’s removal from his position as Executive Vice President and Chief Operating Officer, other than for Cause or by death or Disability, during the term of this Agreement;

b)      without Executive’s written consent, a reduction in Executive’s Base Salary or Target Bonus or any failure to pay Executive any compensation or benefits to which heis entitled within five (5) days of the date due; provided, however, that Executive shall give the Company written notice of any actions or omissions alleged to constitute Good Reason under this subsection (b) and the Company shall have ten (10) business days to cure any such alleged Good Reason; 

 

 

5 of 17

 

 

 

c)       in the event of a requirement that Executive relocate Executive’s principal office to a location that is more than forty (40) miles from the location of the Company’s administrative offices in Chicago, Illinois; provided, however, that travel as reasonably necessary to perform duties under this Agreement shall not be deemed a violation of this subsection (c);

d)      a materially adverse change in Executive’s duties and responsibilities or a material reduction of compensation or benefits;  

e)       the Company’s material breach of any provision of this Agreement or any of the covenants contained herein that, if capable of being cured, remains uncured after Executive has delivered a written notice of breach to the Company and after the Company has had thirty (30) days after receipt of such written notice to cure such breach; or

f)       the failure of the Company to comply with and satisfy its obligations under Section 25 hereof.

Upon termination for “Good Reason” pursuant to this provision, Executive shall be entitled to all benefits and payments as provided in Section 5(a)(i) hereof for a termination by the Company without Cause.  Executive shall only be required to give notice one time under this Section 5(b)(ii) and shall not be required to provide notice and a cure period for any breach or other action that is not capable of cure.    

(c)        Disability.  The Company may terminate this Agreement at any time Executive shall be deemed by the Board to have sustained a “disability.”  Executive shall be deemed to have sustained a “disability” if he shall have been unable to perform his duties for a period of more than ninety (90) days in any twelve (12) month period.  Upon termination of this Agreement for disability, the Company shall pay Executive his Accrued Compensation. 

(d)        Death.  This Agreement will terminate automatically upon Executive’s death.  Upon termination of this Agreement because of Executive’s death, the Company shall pay Executive’s estate his Accrued Compensation.

(e)        Employment.  Upon termination of this Agreement for any reason, including expiration of the Term, or a termination for a reason specified in this Section 5, Executive’s employment shall also terminate and cease, and Executive will voluntarily resign any Director or Board positions he holds, unless otherwise requested by the Company.

(f)         Transition Period.  Upon termination of this Agreement, and for a period of thirty (30) days thereafter (the “Transition Period”), Executive agrees to make himself available to assist the Company with transition projects assigned to him by the Board.  Executive will be paid at a daily rate of one-thousand five hundred and no/100 ($1,500.00) dollars for any work performed for the Company during the Transition Period. 

(g)        Severance Payment.  Any payment to Executive under this Section 5 will be payable in monthly installments due on the first day of each month during the course of the Non-Interference Period.  Executive shall not be entitled to, and the Company shall not pay, any severance under any other plan, program or policy of the Company.

 

 

6 of 17

 

 

 

Notwithstanding the foregoing severance provisions, if the Board (or its delegate) determines in its or his discretion that Executive is a “Specified Employee” (as defined in Section 409A of the United States Internal Revenue Code of 1986, as amended (“Section 409A”)), as of the date of termination, and that Section 409A applies with respect to any payment(s) to Executive pursuant to any of the paragraphs of this Section 5, such payment(s) shall not begin until the six-month anniversary of the date of termination, and will continue in monthly installments thereafter through completion of the Non-Interference Period (with each monthly installment being paid in the gross sum of the full payment divided by 18); provided, however, that if the Board (or its delegate) determines in its or his discretion that Executive is not a Specified Employee as of the date of
termination (or that Section 409A does not apply with respect to a payment to Executive pursuant to Section 5), such payment shall be made in accordance with the provisions of this Section 5, provided that the requirements set forth in Section 6 have been met by Executive.

6.       Release.  Notwithstanding any other provision in this Agreement to the contrary, as a condition precedent to receiving any payment set forth in Section 5 of this Agreement, Executive agrees to execute (and not revoke) a severance and release agreement acceptable to the Company (the “Release”).  If Executive fails to execute and deliver the Release, or revokes the Release, Executive agrees that he shall not be entitled to receive the above-stated severance payments.  For purposes of this Agreement, the Release shall be considered to have been executed by Executive if it is signed by his legal representative in the case of legal incompetence or on behalf of Executive’s estate in the case of his death.  No payments shall be made under Section 5 until the period to revoke the release has terminated. 

	
            7.
 	
            Nondisclosure.
 

(a)        The Company shall, immediately after executing this Agreement, provide Executive with some or all of the Company’s various trade secrets and confidential or proprietary information, including information he has not received before, consisting of, but not limited to, all information: that is non-public or proprietary to the Company, or its affiliates including, but not limited to, information concerning its business activities including, but not limited to, the present marketing and administration of certain insurance business and processes, including but not limited to any and all information concerning non-standard automobile insurance business, financial information, administrative procedures, pricing methods and policies, client lists and information, business and marketing strategies, claims and underwriting procedures and
guidelines, claims and underwriting files, utilization review and manuals, data format, data gathering retrieval systems and methods, ideas about current and future services.  Confidential Information shall not include: (i) information that Executive may furnish to third parties regarding his obligations under Sections 7 and 8; or (ii) information that becomes generally available to the public by means other than Executive’s breach of Section 7 (for example, not as a result of Executive’s unauthorized release of marketing materials).  

(b)        Executive agrees that all Confidential Information, whether prepared by Executive or otherwise coming into his possession, shall remain the exclusive property of the Company during Executive’s employment with the Company and thereafter.  Executive further agrees that he shall not, without the prior written consent of the Company, use or disclose to any third party any of the Confidential Information described herein, directly or indirectly, either 

 

7 of 17

 

 

during Executive’s employment with the Company or at any time following the termination of Executive’s employment with the Company, except as Executive may be required by Court Order.  If such Court Order is issued, Executive shall inform the Company a reasonable time prior to compliance.

(c)        Upon termination of this Agreement, Executive agrees that all Confidential Information and other files, documents, materials, records, notebooks, customer lists, business proposals, contracts, agreements and other repositories containing information concerning the Company or the business of the Company (including all copies thereof) in Executive’s possession, custody or control, whether prepared by Executive or others, shall remain with or be returned to the Company promptly (within seventy-two (72) hours) after the termination or expiration of this Agreement for any reason.

	
            8.
 	
            Noncompete, Nonsolicitation, and Non-Disparagement.
 

(a)        Business Relationships and Goodwill.  Executive acknowledges and agrees that, as an employee and representative of the Company, Executive will be given Confidential Information.  Executive acknowledges and agrees that this creates a special relationship of trust and confidence between the Company, Executive and the Company’s current and prospective customers, limited partners, and investors.  Executive further acknowledges and agrees that there is a high risk and opportunity for any person given such responsibility and Confidential Information to misappropriate the relationship and goodwill existing between the Company and the Company’s current and prospective customers, limited partners, and investors.  Executive therefore acknowledges and agrees that it is fair and reasonable
for the Company to take steps to protect itself from the risk of such misappropriation.  Consequently, Executive agrees to the following noncompetition and nonsolicitation covenants. 

	
            (b)
 	
            Scope of Noncompetition Obligation.
 

(i)         Executive acknowledges and agrees that the period of one (1) year following the termination or expiration of this Agreement for any reason will constitute the non-compete, non-solicit and non-divert period (the “Non-Interference Period”).  During his employment and during the Non-Interference Period, Executive will not engage in duties or provide services to a Competitor which are substantially similar to those Executive provided to the Company under this Agreement, in any capacity, upon the termination or expiration of this Agreement in states where the Company is doing business or has expended resources in pursuit of, or in preparation to do, business (the “Prohibited Market”).  The term “Competitor” means (i) insurance companies providing non-standard automobile insurance coverage of any type or
class as a primary line of business (in excess of fifteen percent (15%) of aggregate revenues), (ii) underwriting agencies (or managing general agencies) that produce and administer non-standard automobile insurance as a primary line of business, and (iii) retail agencies that sell non-standard automobile insurance policies as a primary line of business.  

(ii)         Executive agrees that he shall not at any time during his employment divert away or attempt to divert away any business from the Company to another company, business, or individual.  Additionally, Executive shall not, during the Non-Interference Period, solicit, divert away or attempt to divert away business from any Company Customer, 

 

8 of 17

 

 

either directly or indirectly.  “Company Customer” is defined as any person, company, or business that Executive contacted, solicited, serviced, or had access to Confidential Information about.  “Solicit” is defined as soliciting, inducing, attempting to induce, or assisting any other person, firm, entity, business or organization, whether direct or indirect, in any such solicitation, inducement or attempted inducement, in all cases regardless of whether the initial contact was by Executive, the Company Customer, or any other person, firm, entity, business, or organization.

(iii)        Executive further agrees that during the Non-Interference Period, he will not directly or indirectly:  (a) solicit, entice, persuade or induce any employee, agent or representative of the Company,  who was an employee, agent or representative of the Company upon the termination or expiration of this Agreement, to terminate such person’s relationship with the Company or to become employed by any business or person other than the Company; (b) approach any such person for any of the foregoing purposes; (c) authorize, solicit or assist in the taking of such actions by any third party; or (d) hire or retain any such person

(iv)        Executive further agrees that, during the Non-Interference Period, he shall not own, manage, operate, control, invest or acquire an interest in, or otherwise similarly engage or participate in (whether as a proprietor, owner, member, partner, stockholder, director, officer, employee, consultant, joint venturer, investor, sales representative or other participant) any Competitor or business or entity that owns or operates, or controls another business or entity that owns or operates a Competitor located in the Prohibited Market; provided, however, that the foregoing provisions shall not prohibit the Employee from: (a) being a passive investor in any publicly traded entity, as long as any such investment does not exceed ten percent (10%) of the outstanding equity securities of such entity; (b) continuing as a non controlling investor in
any entity which subsequent to the date of the Executive’s investment therein becomes the owner or operator of, or acquires control of another business or entity that owns or operates, a Competitor in a Prohibited Market (provided that if any entity in which the Executive is a non controlling investor acquires a non-standard automobile insurance provider in a Prohibited Market, the Executive shall limit his participation in such entity to a passive role); or (c) investing in or becoming employed by any entity whose ownership, operation or control of a Competitor is not material relative to its principal business activities provided Executive’s participation in such a Competitor is not a material part of Executive’s duties.

(v)        If Executive requests, the Company will notify Executive in writing within fourteen (14) business days of the request whether any action proposed to be taken by Executive would be viewed by the Company in good faith to be inconsistent with Executive’s obligations in this Section 8(b).  If the Company informs Executive that it would not consider such action to be a violation of any of Executive’s obligations in this Section 8(b), then the Company shall have forever waived any claim that such action taken by Executive violates any of Executive’s obligations in this Section 8(b). 

(c)        Non-Disparagement.  During the term of Executive’s employment with the Company and following the termination or expiration of this Agreement for any reason, Executive shall not disparage, discredit or otherwise criticize, directly or indirectly, verbally or in writing, the Company or any of its subsidiaries, or any of their respective businesses, products, practices, trademarks, employees, officers, or directors.  Further, during the term of Executive’s employment with the Company and following the termination or expiration of this Agreement, 

 

9 of 17

 

 

the Company shall not disparage, discredit or otherwise criticize, directly or indirectly, verbally or in writing, Executive.

(d)        Acknowledgement.  Executive acknowledges that the compensation and Confidential Information provided to Executive pursuant to this Agreement, give rise to the Company’s interest in restraining Executive from competing with the Company, that the noncompetition and nonsolicitation covenants are designed to enforce such consideration and that any limitations as to time, geographic scope and scope of activity to be restrained as defined herein are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the Company.  

(e)        Survival of Covenants.  Sections 7 and 8 shall survive the expiration or termination of this Agreement for any reason.  Executive agrees not to challenge the enforceability or scope of Sections 7 and 8.  Executive further agrees to notify all future persons, businesses, or other entities, with which he becomes affiliated or employed by, of the restrictions set forth in Sections 7 and 8, prior to the commencement of any such affiliation or employment.

9.       Severability and Reformation.  If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions shall remain in full force and effect, and the invalid, void or unenforceable provisions shall be deemed severable.  Moreover, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be reformed by limiting and reducing it to the minimum extent necessary, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

10.     Entire Agreement.  This Agreement sets forth the entire agreement between the parties hereto and fully supersedes any and all prior agreements or understandings, written or oral, between the parties hereto pertaining to the subject matter hereof.

11.     Notices.  All notices and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by certified mail (return receipt requested) or sent by overnight delivery service, or electronic mail, or facsimile transmission (with electronic confirmation of successful transmission) to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice, in order of preference of the recipient:

	
            If to the Company:
 	
            Senior Vice President, General Counsel
 
	
             
	
            150 Harvester Drive, Suite 300
 	
             

	
             
	
            Burr Ridge, Illinois 60527
 	
             

				

 

	
            If to Executive:
 	
            Robert Bondi
 

26519 Southgate Trail

Port Barrington, IL 60010

 

 

10 of 17

 

 

 

Notice so given shall, in the case of mail, be deemed to be given and received on the fifth calendar day after posting, in the case of overnight delivery service, on the date of actual delivery and, in the case of facsimile transmission or personal delivery, on the date of actual transmission or, as the case may be, personal delivery.

12.     Governing Law and Venue.  This Agreement will be governed by and construed in accordance with the laws of the State of Illinois, without regard to any conflict of laws rule or principle which might refer the governance or construction of this Agreement to the laws of another jurisdiction.  Any action or arbitration in regard to this Agreement or arising out of its terms and conditions, pursuant to Sections 26 and 27, shall be instituted and litigated only in Chicago, Illinois.

13.     Assignment.  This Agreement is personal to Executive and may not be assigned in any way by Executive without the prior written consent of the Company.  The Company may assign its rights and obligations under this Agreement.

14.     Counterparts.  This Agreement may be executed in counterparts, each of which will take effect as an original, and all of which shall evidence one and the same Agreement.

15.     Amendment.  This Agreement may be amended only in writing signed by Executive and by a duly authorized representative of the Company (other than Executive).

16.     Construction.  The headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement.  The language in all parts of this Agreement shall be in all cases construed in accordance to its fair meaning and not strictly for or against the Company or Executive.

17.     Non-Waiver.  The failure by either party to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or condition, and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in writing signed by the Company (other than Executive) and Executive.

18.     Announcement.  Company shall have the right to make public announcements concerning the execution of this Agreement and the terms contained herein, at the Company’s discretion. 

19.     Use of Name, Likeness and Biography.  Company shall have the right (but not the obligation) to use, publish and broadcast, and to authorize others to do so, the name, approved likeness and approved biographical material of Executive to advertise, publicize and promote the business of Company and its affiliates, but not for the purposes of direct endorsement without Executive’s consent.  This right shall terminate upon the termination of this Agreement.  An “approved likeness” and “approved biographical material” shall be, respectively, any photograph or other depiction of Executive, or any biographical information or life story concerning the professional career of Executive.

 

 

11 of 17

 

 

 

20.     Corporate Opportunities.  Executive acknowledges that during the course of Executive’s employment by Company, Executive may be offered or become aware of business or investment opportunities in which Company may or might have an interest (a “Corporate Opportunity”) and that Executive has a duty to advise Company of any such Corporate Opportunities before acting upon them.  Accordingly, Executive agrees: (a) that Executive will disclose to the Board any Corporate Opportunity offered to Executive or of which Executive becomes aware, and (b) that Executive will not act upon any Corporate Opportunity for Executive’s own benefit or for the benefit of any Person other than Company without first obtaining consent or approval of the Board (whose consent or approval may be granted or denied solely
at the discretion of the Board; provided, that Executive, at Executive’s election, may act upon any such Corporate Opportunity for Executive’s benefit or the benefit of any other Person if the Board has not caused Company to act upon any such Corporate Opportunity within sixty (60) days after disclosure of such Corporate Opportunity to Company by Executive.

21.     Right to Insure.  Company shall have the right to secure, in its own name or otherwise, and at its own expense, life, health, accident or other insurance covering Executive, and Executive shall have no right, title or interest in and to such insurance.  Executive shall assist Company in procuring such insurance by submitting to examinations and by signing such applications and other instruments as may be required by the insurance carriers to which application is made for any such insurance.

22.     Assistance in Litigation.  Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by the Company.  Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  Executive also shall cooperate fully with the Company in connection with any investigation or review by any federal, state, or local regulatory authority as any such investigation or review relates to events or occurrences that
transpired while Executive was employed by the Company.  The Company will pay Executive one thousand five hundred dollars ($1,500) per eight-hour day for the Executive’s cooperation pursuant to this Section 22. 

23.     No Inconsistent Obligations.  Executive represents and warrants that to his knowledge he has no obligations, legal, in contract, or otherwise, inconsistent with the terms of this Agreement or with his undertaking employment with the Company to perform the duties described herein.  Executive will not disclose to the Company, or use, or induce the Company to use, any confidential, proprietary, or trade secret information of others.  Executive represents and warrants that to his knowledge he has returned all property and confidential information belonging to all prior employers, if he is obligated to do so.

24.     Notification of New Employer.  Upon termination of this Agreement for any reason, or expiration of this Agreement, Executive hereby consents to the notification by the Company to Executive’s new employer of Executive’s rights and obligations under this Agreement.  In addition, in the event that Executive plans to render services to a company that works in a similar field as the Company, Executive agrees to provide the Company with as much notice as possible of Executive’s intention to join that company or business but in no event will 

 

12 of 17

 

 

Executive provide less than two weeks notice of that intention; provided, however, the provision of such notice and the Company’s receipt thereof shall not constitute a waiver of any breach of any provision of this Agreement.

25.     Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon Executive, his heirs and personal representatives, and the Company, its successors and assigns.

26.     Remedies.  The parties recognize and affirm that in the event of a breach of Sections 7 and 8 of this Agreement, money damages would be inadequate and the Company would not have an adequate remedy at law.  Accordingly, the parties agree that in the event of a breach or a threatened breach of Sections 7 and 8, the Company may, in addition and supplementary to other rights and remedies existing in its favor, apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).  In addition, Executive agrees that in the event a court of competent jurisdiction or an arbitrator finds that Executive violated Sections 7 or 8, the time periods set forth
in those Sections shall be tolled until such breach or violation has been cured.  Executive further agrees that the Company shall have the right to offset the amount of any damages resulting from a breach by Executive of Sections 7 or 8 against any payments due Executive under this Agreement.  The parties agree that if one of the parties is found to have breached this Agreement by a court of competent jurisdiction, the breaching party will be required to pay the non-breaching party’s attorneys’ fees.

27.     Arbitration.  Other than as stated in Section 26, the parties agree that any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules.  The arbitration will take place in Chicago, Illinois.  All disputes shall be resolved by a one (1) arbitrator.  The method for selecting the arbitrator is set forth in the AAA’s Commercial Arbitration Rules.  The arbitrator will have the authority to award the same remedies, damages, and costs that a court could award, and will have the additional authority to award those remedies set forth in Section 26.  The arbitrator shall issue a reasoned award explaining the decision, the reasons for the
decision, and any damages awarded, including those set forth in Section 26 where the arbitrator finds Executive violated Sections 7 or 8.  The arbitrator’s decision will be final and binding.  The judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The arbitration proceedings, any record of the same, and the award shall be considered Confidential Information under this Agreement.  This provision and any decision and award hereunder can be enforced under the Federal Arbitration Act.

28.      Indemnification.  The Company agrees that if Executive is made a party to or involved in, or is threatened to be made a party to or otherwise to be involved in, any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that heis or was an officer or employee of the Company or is or was serving at the request of the Company as an officer, member, employee or agent of another corporation, limited liability corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether or not the basis of such Proceeding is 

 

13 of 17

 

 

Executive’s alleged action in an official capacity while serving as an officer, member, employee or agent, Executive shall be indemnified and held harmless by the Company against any and all liabilities, losses, expenses, judgments, penalties, fines and amounts reasonably paid in settlement in connection therewith, to the fullest extent legally permitted or authorized by the Company’s By-laws or, if greater, by the laws of the State of Delaware, as may be in effect from time to time, except that this Section 28 shall not apply to the following Proceedings:  (a) any Proceeding initiated or brought voluntarily by Executive against the Company or its directors, officers employees or other indemnitees, unless the Board of Directors has authorized or consented to the initiation of the Proceeding (or any part of the Proceeding), and (b) for an accounting of profits made from the purchase and sale (or
sale and purchase) by Executive of securities of the Company within the meaning of Section 16(b) of the Exchange Act or any similar successor statute.  The rights conferred on Executive by this Section 28 shall not be exclusive of any other rights which Executive may have or hereafter acquire under any statute, the By-laws, agreement, vote of stockholders or disinterested directors, or otherwise.  The indemnification provided for by this Section 28 shall continue until and terminate upon the latest of:  (a) the statute of limitations applicable to any claim that could be asserted against Executive with respect to which he may be entitled to indemnification under this Section 28, (b) ten years after the date that Executive has ceased to serve as a director or officer of the Company or as a director, officer, employee, member, or agent of any other corporation, limited liability corporation, partnership, joint venture, trust or other enterprise at the request of the Company, or (c) if,
at the later of the dates referred to in (a) and (b) above, there is a pending Proceeding in respect of which Executive is granted rights of indemnification under this Section 28, one year after the final termination of such Proceeding, including any and all appeals.  The indemnification provided for by this Section 28 shall inure to the benefit of his heirs, executors and administrator

	
            29.
 	
            Tax Gross Up.
 

(a)        If, as a result of payments provided for under or pursuant to this Agreement together with all other payments in the nature of compensation provided to or for the benefit of Executive under any other agreement in connection with a Change in Control, Executive becomes subject to taxes of any state, local or federal taxing authority that would not have been imposed on such payments but for the occurrence of a Change in Control, including any excise tax under Section 4999 of the Code an any successor or comparable provision, then, in addition to any other benefits provided under or pursuant to this Agreement or otherwise, Company (including any successor to Company) shall pay to Executive at the time any such payments are made under or pursuant to this or the other agreements, an amount equal to the amount of any such taxes imposed or to
be imposed on Executive (the amount of any such payment, the “Parachute Tax Reimbursement”).

(b)        In addition, Company (including any successor to Company) shall “gross up” such Parachute Tax Reimbursement by paying to Executive at the same time an additional amount equal to the aggregate amount of any additional taxes (whether income taxes, excise taxes, special taxes, employment taxes or otherwise) that are or will be payable by Executive as a result of the Parachute Tax Reimbursement being paid or payable to Executive and/or as a result of the additional amounts paid or payable to Executive pursuant to this sentence, such that after 

 

14 of 17

 

 

payment of such additional taxes Executive shall have been paid on a net after-tax basis an amount equal to the Parachute Tax Reimbursement.

(c)        The amount of any Parachute Tax Reimbursement and of any such gross-up amounts shall be determined by a nationally recognized accounting firm selected by the Company (with all such cost borne by the Company), whose determination, absent manifest error, shall be treated as conclusive and binding absent a binding determination by a governmental taxing authority that a greater amount of taxes is payable by Executive.

(d)        The term “Change in Control” shall mean a transaction or event (or series of transactions or events) as a result of which any “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act (other than any Excluded Person, the Company or any Company employee benefit plan, including its trustees) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of all of the securities of the Company held by New Affirmative LLC held immediately prior to such transaction or event (or series of transactions or events) and all director designees of New Affirmative LLC are no longer on the Company’s Board; provided, however, that in no event shall the distribution, sale, transfer, or acquisition of securities of the Company held by New Affirmative
LLC or any Excluded Persons (or any successor thereof) to any Excluded Person trigger a “Change in Control.”  “Excluded Person” shall mean any of New Affirmative LLC, Affirmative Investment LLC, The Enstar Group, Inc. and any of their respective stockholders, members, affiliates, subsidiaries, or any such persons under common control.

30.     Fees and Expenses.  To induce the Executive to execute this Agreement and to provide the Executive with reasonable assurance that the purposes of this Agreement will not be frustrated by the cost of its enforcement should the Company fail to perform its obligations under this Agreement:

(a)        In the event that the Executive’s employment is terminated by the Company prior to a Change in Control either for Cause or without Cause, the Company shall reimburse the Executive for any reasonable attorneys’ fees, expenses and court costs incurred by the Executive as a result of any litigation by the Executive regarding the validity, enforceability or interpretation of any provision of this Agreement (except as stated in Section 8(e), and including as a result of any litigation by the Executive regarding the benefits payable to the Executive pursuant to this Agreement); provided, however, that such reimbursement shall only be payable by the Company (i) if the Executive prevails on any material issues involved in such litigation and (ii) upon receipt of proof of such expenses.

(b)        In the event that the Executive’s employment is terminated after a Change in Control either by the Company either for Cause or without Cause or by the Executive for Good Reason, the Company shall reimburse the Executive for any reasonable attorneys’ fees, expenses and court costs incurred by the Executive as a result of any litigation by the Executive regarding the validity, enforceability or interpretation of any provision of this Agreement (except as stated in Section 8(e)), and including as a result of any litigation by the Executive regarding the benefits payable to the Executive pursuant to this Agreement) upon receipt of proof of such expenses regardless of which party, if any, prevails in the contest.

 

 

15 of 17

 

 

 

 

31.     Voluntary Agreement.  Each party to this Agreement has read and fully understands the terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, has executed this Agreement based upon such party’s own judgment and advice of counsel (if any), and knowingly, voluntarily, and without duress, agrees to all of the terms set forth in this Agreement.  The parties have participated jointly in the negotiation and drafting of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of authorship of any provision of this Agreement.  Except as expressly set forth in this Agreement, neither the
parties nor their affiliates, advisors and/or their attorneys have made any representation or warranty, express or implied, at law or in equity with respect of the subject matter contained herein.  Without limiting the generality of the previous sentence, the Companies, their affiliates, advisors, and/or attorneys have made no representation or warranty to Executive concerning the state or federal tax consequences to Executive regarding the transactions contemplated by this Agreement.

<remainder of page intentionally left blank>

 

 

16 of 17

 

 

 

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement, effective as of the day and year first above written.

COMPANY 

	
            Dated:
 	
            January 26, 2007
 	
            By: /s/ Kevin Callahan
 

Name: Kevin Callahan

Title:  Chief Executive Officer

EXECUTIVE

	
            Dated:
 	
            January 26, 2007
 	
            By: /s/ Robert Bondi
 

Name:  Robert Bondi

 

 

 

17 of 17

 

 

 

EXHIBIT A

RESTRICTED STOCK AGREEMENT 

AFFIRMATIVE INSURANCE HOLDINGS, INC.

AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN 

as amended

RESTRICTED STOCK AWARD AGREEMENT

This Restricted Stock Award Agreement (this “Agreement”), made as of the 27th day of November, 2006 (the “Grant Date”) by and between Affirmative Insurance Holdings, Inc. (the “Company”), and Robert Bondi (the “Grantee”), evidences the grant by the Company of a Stock Award (the “Award”) of restricted Common Stock, par value $0.01 per share (the “Common
Stock”) to the Grantee on such date and the Grantee’s acceptance of the Award in accordance with the provisions of the Company’s Amended and Restated 2004 Stock Incentive Plan, as amended (the “Plan”), a copy of which is attached hereto as Exhibit A. 

NOW, THEREFORE, in consideration of the premises and the benefits to be derived from the mutual observance of the covenants and promises contained herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.          Basis for Award.  This Award is made pursuant to the Plan for services rendered to the Company by the Grantee.

2.          Restricted Stock Award.  The Company hereby awards and grants to Grantee, in consideration for past services rendered to the Company or an Affiliate of the Company which services have a value in excess of the aggregate par value of the Common Stock awarded to Grantee, 25,000 shares of Common Stock of the Company (the “Restricted Stock Award”) which shall be subject to the restrictions and conditions set forth in the Plan and in this Agreement.  

3.          Vesting.  The Restricted Stock Award (the “Restricted Stock”) shall vest and be held subject to the following:

(a)        provided Grantee continues to provide Continuous Service to the Company or any Affiliate, the Restricted Stock Award will become vested and exercisable with respect to twenty percent (20%) of the Restricted Stock on the first anniversary of November 27, 2006 (the “Vesting Commencement Date”) and thereafter, at the end of each full succeeding year, for four years, on the anniversary date of the Vesting Commencement Date, will become vested and exercisable as to twenty percent (20%) of the Restricted Stock until the Restricted Stock is vested and exercisable with respect to one hundred percent (100%) of the Restricted Stock.  If application of the vesting percentage causes a fractional share, such share shall be rounded down to the nearest whole share for each vesting period
except for the last period in such vesting period, at the end of which last period this Restricted Stock Award shall become exercisable for the full remainder of the Restricted Stock; and

(b)        notwithstanding the foregoing, the Restricted Stock shall become immediately vested and free of all restrictions hereunder upon the earliest of the following to occur:

 

 

	
             
 	
            Page 1
 

 

 

 

	
            (i)
 	
            Termination by the Company other than for Cause;
 
	
            (ii)
 	
            Termination by the Grantee for Good Reason; or
 	
             

(iii)        Non-renewal of Participant’s employment agreement, to the extent and only to the extent provided in Section 2(b) of Participant’s employment agreement.

For purposes of clarity, a termination due to death or disability of Participant shall not cause the Award to become immediately vested and fully exercisable.  For purposes of this Agreement, the terms Cause, Good Reason, death or disability shall have the meaning ascribed to them under the Participant’s employment agreement.

4.          Compliance with Laws and Regulations.  The issuance and transfer of Common Stock shall be subject to compliance by the Company and Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer. Grantee understands that the Company is under no obligation to register or qualify the Common Stock with the SEC, any state securities commission or any stock exchange to effect such compliance.

	
            5.
 	
            Tax Withholding.
 

(a)        Grantee agrees that, subject to Section 5(b) below, no later than the first to occur of (i) the date as of which the restrictions on the Restricted Stock shall lapse with respect to all or any of the Restricted Stock covered by this Agreement or (ii) the date required by Section 5(b) below, Grantee shall pay to the Company (in cash or to the extent permitted by the Board, Company Stock held by the Grantee whose Fair Market Value on the date the Restricted Stock vests is equal to the amount of Grantee’s tax withholding liability) any federal, state or local taxes of any kind required by law to be withheld, if any, with respect to the Restricted Stock for which the restrictions shall lapse. The Company shall, to the extent permitted by law,
have the right to deduct from any payment of any kind otherwise due to Grantee any federal, state or local taxes of any kind required by law to be withheld with respect to the shares of such Company Stock.

(b)        Grantee has the right to elect, within thirty (30) days of the Grant Date, to include in gross income for federal income tax purposes an amount equal to the Fair Market Value of the Restricted Stock less the amount, if any, paid by the Grantee for the Restricted Stock, which was granted hereunder pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended.  Grantee shall pay to the Company, or make other arrangements satisfactory to the Board to pay to the Company on the date of such grant, any federal, state or local taxes required to be withheld with respect to such Company Stock.  If Grantee fails to make such payments, the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to Grantee any federal, state or local taxes of any kind required by law to be
withheld with respect to such Restricted Stock.

6.          No Right to Continued Service.  Nothing in this Agreement shall be deemed by implication or otherwise to impose any limitation on any right of the Company to terminate the Grantee’s service at any time.  In the event Grantee’s employment with the Company is 

 

Page 2

 

 

terminated by the Company, by Grantee or as a result of Grantee’s death or disability, no unvested shares of Common Stock shall become vested after such termination of employment.

7.          Representations and Warranties of Grantee.  Grantee represents and warrants to the Company that:

(a)        Agrees to Terms of the Plan.  Grantee has received a copy of the Plan and has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions.  Grantee acknowledges that there may be adverse tax consequences upon the vesting of Restricted Stock or disposition of the shares of Common Stock once vested, and that Grantee should consult a tax advisor prior to such time.

(b)        Stock Ownership.  Grantee is the record and beneficial owner of the shares of Restricted Stock with full right and power to transfer the Unvested Shares defined below, to the Company free and clear of any liens, claims or encumbrances and Grantee understands that the stock certificates evidencing the Restricted Stock will bear a legend referencing this Agreement.

(c)        SEC Rule 144.  Grantee understands that Rule 144 promulgated under the Securities Act may indefinitely restrict transfer of the Common Stock so long as Grantee remains an “affiliate” of the Company or if “current public information” about the Company (as defined in Rule 144) is not publicly available.

8.          Dividends.  Grantee shall be entitled to receive dividends and distributions paid on all unvested Restricted Stock; provided, however, that no dividends or distributions shall be payable to or for the benefit of Grantee with respect to record dates for such dividends or distributions occurring before or prior to the Vesting Commencement Date, or with respect to record dates for such dividends or distributions occurring on or after the date, if any, on which Grantee has forfeited the Restricted Stock.

9.          Voting Rights.  Grantee shall be entitled to vote all unvested Restricted Stock; provided, however, that Grantee shall not be entitled to vote Restricted Stock with respect to record dates for any Restricted Stock occurring on or after the date, if any, on which the Grantee has forfeited the Restricted Stock.

10.        Compliance with U.S. Federal Securities Laws.  Grantee understands and acknowledges that notwithstanding any other provision of the Agreement to the contrary, the vesting and holding of the Common Stock is expressly conditioned upon compliance with the Securities Act and all applicable state securities laws.  Grantee agrees to cooperate with the Company to ensure compliance with such laws.

11.        Forfeiture of Unvested Stock.  In the event that the Restricted Stock was issued to Grantee solely in consideration for services rendered and shares of unvested Common Stock (“Unvested Shares”) standing the in name of Grantee on the books of the Company do not become vested on or before the expiration of the period during which the applicable vesting conditions must occur, such Unvested Shares shall be automatically forfeited and cancelled as outstanding shares of Common Stock immediately upon the occurrence of the event or time period after which such Unvested Shares may no longer become vested.

 

Page 3

 

 

 

	
            12.
 	
            Restrictions on Unvested Shares.
 

(a)        Deposit of the Unvested Shares.  Grantee shall deposit all of the Unvested Shares with the Company to hold until the Unvested Shares become vested, at which time such vested shares shall no longer constitute Unvested Shares.  The Company will deliver to Grantee the shares of Common Stock that become vested upon vesting of such shares.  Grantee shall execute and deliver to the Company, concurrently with the execution of this Agreement blank stock powers for use in connection with the transfer to the Company or its designee of Unvested Shares that do not become vested.

(b)        Restriction on Transfer of Unvested Shares.  Grantee shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Unvested Shares, or any economic interest or voting rights with respect to the foregoing except as permitted by this Agreement.

13.        Adjustments.  The number of Unvested Shares shall be automatically adjusted to reflect any stock split, stock dividend, recapitalization, merger, consolidation, reorganization, combination or exchanges of shares or other similar event affecting the Company’s outstanding Common Stock subsequent to the date of this Agreement.  If Grantee becomes entitled to receive any additional shares of Common Stock or other securities (“Additional Securities”) in respect of the Unvested Shares, the total number of Unvested Shares shall be equal to the sum of (i) the initial Unvested Shares; and, (ii) the
number of Additional Securities issued or issuable in respect of the initial Unvested Shares and any Additional Securities previously issued to Grantee.

	
            14.
 	
            Restrictive Legends and Stop-Transfer Orders.
 

(a)        Legends.  Grantee understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Common Stock, together with any other legends that may be required by state or U.S. Federal securities laws, the Company’s Certificate of Incorporation or Bylaws, any other agreement between Grantee and the Company or any agreement between Grantee and any third party:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER AS SET FORTH IN A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES.  SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF THESE SHARES.

(b)        Stop-Transfer Instructions.  Grantee agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

(c)        Refusal to Transfer.  The Company will not be required (i) to transfer on its books any shares of Common Stock that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such shares, or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such shares have been so transferred.

 

Page 4

 

 

 

15.        Modification. The Agreement may not be modified except in writing signed by both parties.

16.        Plan.  Except as otherwise provided herein, or unless the context clearly indicates otherwise, capitalized terms herein which are defined in the Plan have the same definitions as provided in the Plan.  The terms and provisions of the Plan are incorporated herein by references, and the Grantee hereby acknowledges receiving a copy of the Plan.  In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control.

17.        Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by Grantee or the Company to the Plan Administrator for review.  The resolution of such a dispute by the Plan Administrator shall be final and binding on the Company and Grantee.

18.        Entire Agreement.  The Plan and Grantee’s employment agreement are incorporated herein by reference. This Agreement and the Plan constitute the entire agreement of the parties and supercede all prior undertakings and agreements with respect to the subject matter hereof.  If any inconsistency should exist between the nondiscretionary terms and conditions of this Agreement and the Plan, the Plan shall govern and control.

19.        Notices.  Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered to Grantee shall be in writing and addressed to Grantee at the address indicated on the signature page hereof or to such other address as such party may designate in writing from time to time to the Company.  All notices shall be deemed to have been given or delivered upon:  (a) personal delivery; (b) three (3) days after deposit in the United States mail by certified or registered mail (return receipt requested); (c) one (1) business day after deposit with any return receipt express courier (prepaid); or (d) one (1) business day
after transmission by facsimile or telecopier.

20.        Successors and Assigns.  The Company may assign any of its rights under this Agreement.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Grantee and Grantee’s heirs, executors, administrators, legal representatives, successors and assigns.

21.        Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to its conflict of law principles.  If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

 

Page 5

 

 

 

22.        Acceptance.  Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement.  Grantee has read and understands the terms and provisions thereof, and accepts the Award subject to all the terms and conditions of the Plan and this Agreement.  Grantee acknowledges that there may be adverse tax consequences upon vesting of the Award or disposition of the underlying shares and that Grantee should consult a tax advisor prior to such exercise or disposition.

[SIGNATURE PAGE FOLLOWS]

 

Page 6

 

 

 

IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date first above written.

	
             
 	
             
 
	
            AFFIRMATIVE INSURANCE HOLDINGS, INC.
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Chad M. Emmerich
 
	
             
 	
            

 
	
             
 	
            Chad M. Emmerich
 
	
            Title:
 	
            Senior VP, Human Resources
 
			

 

 

 

 

 

 

 

 

	
             
 
	
            GRANTEE
 
	
             
 
	
             
 
	
             
 
	
            /s/ Robert Bondi
 
	
            

 
	
            Robert Bondi
 
	
             
 
	
            Address:             26519 Southgate Trail
 
	
            Barrington, Illinois 60010
 
	
             
 

 

 

 

Page 7

 

EXHIBIT B

STOCK OPTION AGREEMENTS

AFFIRMATIVE INSURANCE HOLDINGS, INC.

AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

as amended

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”) is made and entered into as of the date of grant set forth below (the “Date of Grant”) by and between Affirmative Insurance Holdings, Inc., a Delaware corporation (the “Company”), and the participant named below (the “Participant”).  Capitalized terms not defined herein shall have the meaning ascribed to them in the Company’s Amended and Restated 2004 Stock Incentive Plan, as amended (the “Plan”).

	
             
 	
            Participant:
 	
             
 	
            Robert Bondi
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Address:
 	
             
 	
            26519 Southgate Trail
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
             
 	
             
 	
            Barrington, Illinois 60010
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Total Option Shares:
 	
             
 	
            50,000
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Exercise Price Per Share:
 	
             
 	
            $20.00
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Date of Grant:
 	
             
 	
            November 27, 2006
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Expiration Date:
 	
             
 	
            November 27, 2016
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Vesting Commencement Date:
 	
             
 	
            November 27, 2006
 	
             
 
	
             
 	
            Vesting Schedule:
 	
             
 	
            The Option will become vested and exercisable with respect to twenty percent (20%) of the Shares (defined below) on the first anniversary of the Vesting Commencement Date set forth above and thereafter, at the end of each full succeeding year, for four years, on the anniversary date of the Vesting Commencement Date the Option will become vested and exercisable as to twenty percent (20%) of the Shares until the Option is vested and exercisable with respect to one hundred percent (100%) of the Shares.
 
	
             
 	
            Type of Stock Option:
 	
             
 	
            [     ]  Incentive Stock Option
 	
             
 
	
             
 	
             
 	
             
 	
            [ X ]  Nonstatutory Stock Option
 	
             
 

 

 

 

	
            Page 1
 

 

 

 

1.          Grant of Option.  The Company hereby grants to Participant an option (this “Option”) to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share set forth above (the “Exercise Price”), subject to all of the terms and conditions of this Agreement and the Plan.  If designated as an Incentive Stock Option above, the Option is intended to qualify as an “incentive stock option” (an “ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), although the Company makes no representation or guarantee that such Option will qualify as an ISO.

	
            2.
 	
            Exercise Period; Vesting.  
 

2.1.       Exercise Period.  Unless expired as provided in Section 3 of this Agreement, this Option may be exercised from time to time after the Date of Grant set forth above (the “Date of Grant”) to the extent the Option has vested in accordance with the vesting schedule in Subsection 2.2.  

2.2.       Vesting.  Provided Participant’s employment pursuant to his employment agreement has not terminated prior to such vesting dates, the Option will become vested and exercisable according to the Vesting Schedule.  If application of the vesting percentage causes a fractional share, such share shall be rounded down to the nearest whole share for each vesting period except for the last period in such vesting period, at the end of which last period this Option shall become exercisable for the full remainder of the Shares.  The Shares issued upon exercise of the Option will be subject to the restrictions on transfer set forth in Sections 8 and 9 below.

2.3.       Acceleration of Vesting.  Notwithstanding the foregoing, any unvested portion of the Option shall become immediately vested and fully exercisable upon the earliest of the following to occur:  

	
            (a)
 	
            Termination by the Company other than for Cause;
 	
             

	
            (b)
 	
            Termination by the Participant for Good Reason; or
 

(c)        Non-renewal of Participant’s employment agreement, to the extent and only to the extent provided in Section 2(b) of Participant’s employment agreement.

For purposes of clarity, a termination due to death or disability of Participant shall not cause the Option to become immediately vested and fully exercisable.  For purposes of this Option, the terms Cause, Good Reason, death or disability shall have the meaning ascribed to them under the Participant’s employment agreement.

3.          Expiration.  The Option shall expire on the Expiration Date set forth above or earlier as provided in Section 4 below or, if applicable, pursuant to Section 11 of the Plan.

	
            4.
 	
            Termination of Continuous Service.
 

4.1.       Termination for Any Reason Except Death, Disability or Cause.  Unless otherwise provided in an employment agreement the terms of which have been approved by the 

 

	
            Page 2
 

 

 

Administrator, if Participant’s Continuous Service is terminated for any reason, except death, disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the date of termination, may be exercised by Participant no later than the one (1) month anniversary of the date of termination, but in any event no later than the Expiration Date.  

4.2.       Termination Because of Death or Disability.  If Participant’s Continuous Service is terminated because of death or disability of Participant, the Option, to the extent that it would have been exercisable by Participant on the date of termination, may be exercised by Participant (or Participant’s legal representative) no later than twelve (12) months after the date of termination, but in any event no later than the Expiration Date.  If permitted by this Agreement, any exercise beyond twelve (12) months after the date of termination when the termination is for Participant’s disability is deemed to be a Nonstatutory Stock Option (an “NSO”) and not an ISO.

4.3.       Termination for Cause.  If Participant’s Continuous Service is terminated for Cause, then the Option will expire on the Participant’s date of termination.

4.4.       No Obligation to Employ.  Nothing in the Plan or this Agreement shall confer on Participant any right to continue in the employ of, or other relationship with, the Company or any Affiliate, or limit in any way the right of the Company or any Affiliate to terminate Participant’s employment or other relationship at any time, with or without Cause.

	
            5.
 	
            Manner of Exercise.
 

5.1.       Stock Option Exercise Agreement.  To exercise this Option, Participant (or in the case of exercise after Participant’s death or incapacity, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form attached hereto as Exhibit A, or in such other form as may be approved by the Administrator from time to time (the “Exercise Agreement”), which shall set forth, inter alia, (a) Participant’s election to exercise the Option, (b) the number of Shares being purchased, (c) any restrictions
imposed on the Shares and (d) any representations, warranties, and agreements regarding Participant’s investment intent and access to information as may be required by the Company to comply with applicable securities laws.  If someone other than Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option.

5.2.       Limitations on Exercise.  The Option may not be exercised unless such exercise is in compliance with all applicable federal and state securities laws, as they are in effect on the date of exercise.  The Option may not be exercised for fewer than one (1) Share unless it is exercised as to all Shares as to which the Option is then exercisable.

5.3.       Payment.  The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares being purchased in cash (by certified check or wire transfer), or where permitted by law and upon written approval by the Administrator:

(a)        by surrender of shares of the Company’s Common Stock that (i) either (1) have been owned by Participant for more than six (6) months and have been paid for 

 

	
            Page 3
 

 

 

within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of promissory note, such note has been fully paid with respect to such shares); or (2) were obtained by Participant in the open public market; and (ii) are clear of all liens, claims, encumbrances or security interests;

(b)        provided that a Listing Date has occurred: (i) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company, or (ii) through a “margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from NASD Dealer in the
amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; provided, however, a cashless exercise by a Director or executive officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit by the Company or an Affiliate in violation of Section 402(a) of the Sarbanes-Oxley Act (codified as Section 13(k) of the Securities Exchange Act of 1934, 15 U.S.C. § 78m(k)) shall be prohibited;

(c)        by any other form of legal consideration that may be acceptable to the Administrator; or

	
            (d)
 	
            by any combination of the foregoing.
 

5.4.       Tax Withholding.  Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or provide for any applicable federal, state and local withholding obligations of the Company.

5.5.       Issuance of Shares.  Provided that the Exercise Agreement and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto.

6.          Notice of Disqualifying Disposition of ISO Shares.  If the Option is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1) year after transfer of such Shares to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant.

7.          Compliance with Laws and Regulations.  The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Participant 

 

	
            Page 4
 

 

 

with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer.  Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance.

8.          Nontransferability of Option.  If the Option is an ISO, the Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant or in the event of Participant’s incapacity, by Participant’s legal representative.  The terms of the Option shall be binding upon the executors, administrators, successors and assigns of Participant.  If the Option is not an ISO, upon written approval by the Administrator, it may be transferred by gift or domestic relations order to a member of the Participant’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons have more than 75% of the beneficial interest, a foundation in which these persons (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than 75% of the voting interests.

9.          Privileges of Stock Ownership.  Participant shall not have any of the rights of a stockholder with respect to any Shares until the Shares are issued to Participant.

	
            10.
 	
            General.
 

10.1.     Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by Participant or the Company to the Administrator for review.  The resolution of such a dispute by the Administrator shall be final and binding on the Company and Participant.

10.2.     Entire Agreement.  The Plan and Participant’s employment agreement are incorporated herein by reference.  This Agreement and the Plan constitute the entire agreement of the parties and supercede all prior undertakings and agreements with respect to the subject matter hereof.  If any inconsistency should exit between the nondiscretionary terms and conditions of this Agreement and the Plan, the Plan shall govern and control.

10.3.     Notices.  Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to time to the Company.  All notices shall be deemed to have been given or delivered upon:  (a) personal delivery; (b) five (5) days after deposit in the United States mail by certified or registered mail (return receipt requested); (c) two (2) business day after deposit with any return receipt express courier (prepaid); or (d) one (1) business day after transmission by facsimile.

 

 

	
            Page 5
 

 

 

 

10.4.     Successors and Assigns.  The Company may assign any of its rights under this Agreement.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns.

10.5.     Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to its conflict of law principles.  If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

11.        Acceptance.  Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and this Agreement.  Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax advisor prior to such exercise or disposition.

[SIGNATURE PAGE FOLLOWS]

 

	
            Page 6
 

 

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and Participant has executed this Agreement, effective as of the Date of Grant.

	
            AFFIRMATIVE INSURANCE HOLDINGS, INC.
 
	
             
 	
             
 
	
            By:
 	
            /s/ Chad M. Emmerich
 
	
             
 	
            

 
	
            Name:
 	
            Chad M. Emmerich
 
	
            Title:
 	
            Senior VP, Human Resources           
 

 

 

	
            PARTICIPANT
 
	
             
 
	
             
 
	
             
 
	
            /s/ Robert Bondi
 
	
            

 
	
            (Signature)
 
	
             
 
	
            Printed Name:  Robert Bondi
 

 

 

 

	
            Page 7
 

 

AFFIRMATIVE INSURANCE HOLDINGS, INC.

AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

as amended

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”) is made and entered into as of the date of grant set forth below (the “Date of Grant”) by and between Affirmative Insurance Holdings, Inc., a Delaware corporation (the “Company”), and the participant named below (the “Participant”).  Capitalized terms not defined herein shall have the meaning ascribed to them in the Company’s Amended and Restated 2004 Stock Incentive Plan, as amended (the “Plan”).

	
             
 	
            Participant:
 	
             
 	
            Robert Bondi
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Address:
 	
             
 	
            26519 Southgate Trail
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
             
 	
             
 	
            Barrington, Illinois 60010
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Total Option Shares:
 	
             
 	
            50,000
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Exercise Price Per Share:
 	
             
 	
            $25.00
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Date of Grant:
 	
             
 	
            November 27, 2006
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Expiration Date:
 	
             
 	
            November 27, 2016
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Vesting Commencement Date:
 	
             
 	
            November 27, 2006
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Vesting Schedule:
 	
             
 	
            The Option will become vested and exercisable with respect to twenty percent (20%) of the Shares (defined below) on the first anniversary of the Vesting Commencement Date set forth above and thereafter, at the end of each full succeeding year, for four years, on the anniversary date of the Vesting Commencement Date the Option will become vested and exercisable as to twenty percent (20%) of the Shares until the Option is vested and exercisable with respect to one hundred percent (100%) of the Shares.
 
	
             
 	
            Type of Stock Option:
 	
             
 	
            [     ]  Incentive Stock Option
 	
             
 
	
             
 	
             
 	
             
 	
            [ X ]  Nonstatutory Stock Option
 	
             
 

 

 

Page 1

 

 

 

1.          Grant of Option.  The Company hereby grants to Participant an option (this “Option”) to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share set forth above (the “Exercise Price”), subject to all of the terms and conditions of this Agreement and the Plan.  If designated as an Incentive Stock Option above, the Option is intended to qualify as an “incentive stock option” (an “ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), although the Company makes no representation or guarantee that such Option will qualify as an ISO.

	
            2.
 	
            Exercise Period; Vesting.  
 

2.1.       Exercise Period.  Unless expired as provided in Section 3 of this Agreement, this Option may be exercised from time to time after the Date of Grant set forth above (the “Date of Grant”) to the extent the Option has vested in accordance with the vesting schedule in Subsection 2.2.  

2.2.       Vesting.  Provided Participant’s employment pursuant to his employment agreement has not terminated prior to such vesting dates, the Option will become vested and exercisable according to the Vesting Schedule.  If application of the vesting percentage causes a fractional share, such share shall be rounded down to the nearest whole share for each vesting period except for the last period in such vesting period, at the end of which last period this Option shall become exercisable for the full remainder of the Shares.  The Shares issued upon exercise of the Option will be subject to the restrictions on transfer set forth in Sections 8 and 9 below.

2.3.       Acceleration of Vesting.  Notwithstanding the foregoing, any unvested portion of the Option shall become immediately vested and fully exercisable upon the earliest of the following to occur:  

	
            (a)
 	
            Termination by the Company other than for Cause;
 	
             

	
            (b)
 	
            Termination by the Participant for Good Reason; or
 

(c)        Non-renewal of Participant’s employment agreement, to the extent and only to the extent provided in Section 2(b) of Participant’s employment agreement.

For purposes of clarity, a termination due to death or disability of Participant shall not cause the Option to become immediately vested and fully exercisable.  For purposes of this Option, the terms Cause, Good Reason, death or disability shall have the meaning ascribed to them under the Participant’s employment agreement.

3.          Expiration.  The Option shall expire on the Expiration Date set forth above or earlier as provided in Section 4 below or, if applicable, pursuant to Section 11 of the Plan.

	
            4.
 	
            Termination of Continuous Service.
 

4.1.       Termination for Any Reason Except Death, Disability or Cause.  Unless otherwise provided in an employment agreement the terms of which have been approved by the 

 

Page 2

 

 

Administrator, if Participant’s Continuous Service is terminated for any reason, except death, disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the date of termination, may be exercised by Participant no later than the one (1) month anniversary of the date of termination, but in any event no later than the Expiration Date.  

4.2.       Termination Because of Death or Disability.  If Participant’s Continuous Service is terminated because of death or disability of Participant, the Option, to the extent that it would have been exercisable by Participant on the date of termination, may be exercised by Participant (or Participant’s legal representative) no later than twelve (12) months after the date of termination, but in any event no later than the Expiration Date.  If permitted by this Agreement, any exercise beyond twelve (12) months after the date of termination when the termination is for Participant’s disability is deemed to be a Nonstatutory Stock Option (an “NSO”) and not an ISO.

4.3.       Termination for Cause.  If Participant’s Continuous Service is terminated for Cause, then the Option will expire on the Participant’s date of termination.

4.4.       No Obligation to Employ.  Nothing in the Plan or this Agreement shall confer on Participant any right to continue in the employ of, or other relationship with, the Company or any Affiliate, or limit in any way the right of the Company or any Affiliate to terminate Participant’s employment or other relationship at any time, with or without Cause.

	
            5.
 	
            Manner of Exercise.
 

5.1.       Stock Option Exercise Agreement.  To exercise this Option, Participant (or in the case of exercise after Participant’s death or incapacity, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form attached hereto as Exhibit A, or in such other form as may be approved by the Administrator from time to time (the “Exercise Agreement”), which shall set forth, inter alia, (a) Participant’s election to exercise the Option, (b) the number of Shares being purchased, (c) any restrictions
imposed on the Shares and (d) any representations, warranties, and agreements regarding Participant’s investment intent and access to information as may be required by the Company to comply with applicable securities laws.  If someone other than Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option.

5.2.       Limitations on Exercise.  The Option may not be exercised unless such exercise is in compliance with all applicable federal and state securities laws, as they are in effect on the date of exercise.  The Option may not be exercised for fewer than one (1) Share unless it is exercised as to all Shares as to which the Option is then exercisable.

5.3.       Payment.  The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares being purchased in cash (by certified check or wire transfer), or where permitted by law and upon written approval by the Administrator:

(a)        by surrender of shares of the Company’s Common Stock that (i) either (1) have been owned by Participant for more than six (6) months and have been paid for 

 

Page 3

 

 

within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of promissory note, such note has been fully paid with respect to such shares); or (2) were obtained by Participant in the open public market; and (ii) are clear of all liens, claims, encumbrances or security interests;

(b)        provided that a Listing Date has occurred: (i) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company, or (ii) through a “margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from NASD Dealer in the
amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; provided, however, a cashless exercise by a Director or executive officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit by the Company or an Affiliate in violation of Section 402(a) of the Sarbanes-Oxley Act (codified as Section 13(k) of the Securities Exchange Act of 1934, 15 U.S.C. § 78m(k)) shall be prohibited;

(c)        by any other form of legal consideration that may be acceptable to the Administrator; or

	
            (d)
 	
            by any combination of the foregoing.
 

5.4.       Tax Withholding.  Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or provide for any applicable federal, state and local withholding obligations of the Company.

5.5.       Issuance of Shares.  Provided that the Exercise Agreement and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto.

6.          Notice of Disqualifying Disposition of ISO Shares.  If the Option is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1) year after transfer of such Shares to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant.

7.          Compliance with Laws and Regulations.  The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Participant 

 

Page 4

 

 

with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer.  Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance.

8.          Nontransferability of Option.  If the Option is an ISO, the Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant or in the event of Participant’s incapacity, by Participant’s legal representative.  The terms of the Option shall be binding upon the executors, administrators, successors and assigns of Participant.  If the Option is not an ISO, upon written approval by the Administrator, it may be transferred by gift or domestic relations order to a member of the Participant’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons have more than 75% of the beneficial interest, a foundation in which these persons (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than 75% of the voting interests.

9.          Privileges of Stock Ownership.  Participant shall not have any of the rights of a stockholder with respect to any Shares until the Shares are issued to Participant.

	
            10.
 	
            General.
 

10.1.     Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by Participant or the Company to the Administrator for review.  The resolution of such a dispute by the Administrator shall be final and binding on the Company and Participant.

10.2.     Entire Agreement.  The Plan and Participant’s employment agreement are incorporated herein by reference.  This Agreement and the Plan constitute the entire agreement of the parties and supercede all prior undertakings and agreements with respect to the subject matter hereof.  If any inconsistency should exit between the nondiscretionary terms and conditions of this Agreement and the Plan, the Plan shall govern and control.

10.3.     Notices.  Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to time to the Company.  All notices shall be deemed to have been given or delivered upon:  (a) personal delivery; (b) five (5) days after deposit in the United States mail by certified or registered mail (return receipt requested); (c) two (2) business day after deposit with any return receipt express courier (prepaid); or (d) one (1) business day after transmission by facsimile.

 

Page 5

 

 

 

10.4.     Successors and Assigns.  The Company may assign any of its rights under this Agreement.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns.

10.5.     Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to its conflict of law principles.  If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

11.        Acceptance.  Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and this Agreement.  Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax advisor prior to such exercise or disposition.

[SIGNATURE PAGE FOLLOWS]

 

Page 6

 

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and Participant has executed this Agreement, effective as of the Date of Grant.

	
            AFFIRMATIVE INSURANCE HOLDINGS, INC.
 
	
             
 	
             
 
	
            By:
 	
            /s/ Chad M. Emmerich
 
	
             
 	
            

 
	
            Name:
 	
            Chad M. Emmerich
 
	
            Title:
 	
            Senior VP, Human Resources
 

 

 

 

	
            PARTICIPANT
 
	
             
 
	
             
 
	
             
 
	
            /s/ Robert Bondi
 
	
            

 
	
            (Signature)
 
	
             
 
	
            Printed Name:  Robert Bondi
 

 

 

 

Page 7

 

AFFIRMATIVE INSURANCE HOLDINGS, INC.

AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

as amended

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”) is made and entered into as of the date of grant set forth below (the “Date of Grant”) by and between Affirmative Insurance Holdings, Inc., a Delaware corporation (the “Company”), and the participant named below (the “Participant”).  Capitalized terms not defined herein shall have the meaning ascribed to them in the Company’s Amended and Restated 2004 Stock Incentive Plan, as amended (the “Plan”).

 

	
             
 	
            Participant:
 	
             
 	
            Robert Bondi
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Address:
 	
             
 	
            26519 Southgate Trail
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
             
 	
             
 	
            Barrington, Illinois 60010
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Total Option Shares:
 	
             
 	
            60,000
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Exercise Price Per Share:
 	
             
 	
            $16.08
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Date of Grant:
 	
             
 	
            November 27, 2006
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Expiration Date:
 	
             
 	
            November 27, 2016
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Vesting Commencement Date:
 	
             
 	
            November 27, 2006
 	
             
 
	
             
 	
             
 	
             
 	
            

 	
             
 
	
             
 	
            Vesting Schedule:
 	
             
 	
            The Option will become vested and exercisable with respect to twenty percent (20%) of the Shares (defined below) on the first anniversary of the Vesting Commencement Date set forth above and thereafter, at the end of each full succeeding year, for four years, on the anniversary date of the Vesting Commencement Date the Option will become vested and exercisable as to twenty percent (20%) of the Shares until the Option is vested and exercisable with respect to one hundred percent (100%) of the Shares.
 
	
             
 	
            Type of Stock Option:
 	
             
 	
            [     ]  Incentive Stock Option
 	
             
 

 

 

Page 1

 

 

 

 

	
             
 	
             
 	
             
 	
            [ X ]  Nonstatutory Stock Option
 	
             
 

1.          Grant of Option.  The Company hereby grants to Participant an option (this “Option”) to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share set forth above (the “Exercise Price”), subject to all of the terms and conditions of this Agreement and the Plan.  If designated as an Incentive Stock Option above, the Option is intended to qualify as an “incentive stock option” (an “ISO”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), although the Company makes no representation or guarantee that such Option will qualify as an ISO.

	
            2.
 	
            Exercise Period; Vesting.  
 

2.1.       Exercise Period.  Unless expired as provided in Section 3 of this Agreement, this Option may be exercised from time to time after the Date of Grant set forth above (the “Date of Grant”) to the extent the Option has vested in accordance with the vesting schedule in Subsection 2.2.  

2.2.       Vesting.  Provided Participant’s employment pursuant to his employment agreement has not terminated prior to such vesting dates, the Option will become vested and exercisable according to the Vesting Schedule.  If application of the vesting percentage causes a fractional share, such share shall be rounded down to the nearest whole share for each vesting period except for the last period in such vesting period, at the end of which last period this Option shall become exercisable for the full remainder of the Shares.  The Shares issued upon exercise of the Option will be subject to the restrictions on transfer set forth in Sections 8 and 9 below.

2.3.       Acceleration of Vesting.  Notwithstanding the foregoing, any unvested portion of the Option shall become immediately vested and fully exercisable upon the earliest of the following to occur:  

	
            (a)
 	
            Termination by the Company other than for Cause;
 	
             

	
            (b)
 	
            Termination by the Participant for Good Reason; or
 

(c)        Non-renewal of Participant’s employment agreement, to the extent and only to the extent provided in Section 2(b) of Participant’s employment agreement.

For purposes of clarity, a termination due to death or disability of Participant shall not cause the Option to become immediately vested and fully exercisable.  For purposes of this Option, the terms Cause, Good Reason, death or disability shall have the meaning ascribed to them under the Participant’s employment agreement.

3.          Expiration.  The Option shall expire on the Expiration Date set forth above or earlier as provided in Section 4 below or, if applicable, pursuant to Section 11 of the Plan.

	
            4.
 	
            Termination of Continuous Service.
 

 

 

Page 2

 

 

 

4.1.       Termination for Any Reason Except Death, Disability or Cause.  Unless otherwise provided in an employment agreement the terms of which have been approved by the Administrator, if Participant’s Continuous Service is terminated for any reason, except death, disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the date of termination, may be exercised by Participant no later than the one (1) month anniversary of the date of termination, but in any event no later than the Expiration Date.  

4.2.       Termination Because of Death or Disability.  If Participant’s Continuous Service is terminated because of death or disability of Participant, the Option, to the extent that it would have been exercisable by Participant on the date of termination, may be exercised by Participant (or Participant’s legal representative) no later than twelve (12) months after the date of termination, but in any event no later than the Expiration Date.  If permitted by this Agreement, any exercise beyond twelve (12) months after the date of termination when the termination is for Participant’s disability is deemed to be a Nonstatutory Stock Option (an “NSO”) and not an ISO.

4.3.       Termination for Cause.  If Participant’s Continuous Service is terminated for Cause, then the Option will expire on the Participant’s date of termination.

4.4.       No Obligation to Employ.  Nothing in the Plan or this Agreement shall confer on Participant any right to continue in the employ of, or other relationship with, the Company or any Affiliate, or limit in any way the right of the Company or any Affiliate to terminate Participant’s employment or other relationship at any time, with or without Cause.

	
            5.
 	
            Manner of Exercise.
 

5.1.       Stock Option Exercise Agreement.  To exercise this Option, Participant (or in the case of exercise after Participant’s death or incapacity, Participant’s executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form attached hereto as Exhibit A, or in such other form as may be approved by the Administrator from time to time (the “Exercise Agreement”), which shall set forth, inter alia, (a) Participant’s election to exercise the Option, (b) the number of Shares being purchased, (c) any restrictions
imposed on the Shares and (d) any representations, warranties, and agreements regarding Participant’s investment intent and access to information as may be required by the Company to comply with applicable securities laws.  If someone other than Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option.

5.2.       Limitations on Exercise.  The Option may not be exercised unless such exercise is in compliance with all applicable federal and state securities laws, as they are in effect on the date of exercise.  The Option may not be exercised for fewer than one (1) Share unless it is exercised as to all Shares as to which the Option is then exercisable.

5.3.       Payment.  The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares being purchased in cash (by certified check or wire transfer), or where permitted by law and upon written approval by the Administrator:

 

Page 3

 

 

 

(a)        by surrender of shares of the Company’s Common Stock that (i) either (1) have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of promissory note, such note has been fully paid with respect to such shares); or (2) were obtained by Participant in the open public market; and (ii) are clear of all liens, claims, encumbrances or security interests;

(b)        provided that a Listing Date has occurred: (i) through a “same day sale” commitment from Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company, or (ii) through a “margin” commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from NASD Dealer in the
amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; provided, however, a cashless exercise by a Director or executive officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit by the Company or an Affiliate in violation of Section 402(a) of the Sarbanes-Oxley Act (codified as Section 13(k) of the Securities Exchange Act of 1934, 15 U.S.C. § 78m(k)) shall be prohibited;

(c)        by any other form of legal consideration that may be acceptable to the Administrator; or

	
            (d)
 	
            by any combination of the foregoing.
 

5.4.       Tax Withholding.  Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or provide for any applicable federal, state and local withholding obligations of the Company.

5.5.       Issuance of Shares.  Provided that the Exercise Agreement and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant’s authorized assignee, or Participant’s legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto.

6.          Notice of Disqualifying Disposition of ISO Shares.  If the Option is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Date of Grant, and (b) the date one (1) year after transfer of such Shares to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant.

 

Page 4

 

 

 

7.          Compliance with Laws and Regulations.  The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Participant with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer.  Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance.

8.          Nontransferability of Option.  If the Option is an ISO, the Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant or in the event of Participant’s incapacity, by Participant’s legal representative.  The terms of the Option shall be binding upon the executors, administrators, successors and assigns of Participant.  If the Option is not an ISO, upon written approval by the Administrator, it may be transferred by gift or domestic relations order to a member of the Participant’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons have more than 75% of the beneficial interest, a foundation in which these persons (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than 75% of the voting interests.

9.          Privileges of Stock Ownership.  Participant shall not have any of the rights of a stockholder with respect to any Shares until the Shares are issued to Participant.

	
            10.
 	
            General.
 

10.1.     Interpretation.  Any dispute regarding the interpretation of this Agreement shall be submitted by Participant or the Company to the Administrator for review.  The resolution of such a dispute by the Administrator shall be final and binding on the Company and Participant.

10.2.     Entire Agreement.  The Plan and Participant’s employment agreement are incorporated herein by reference.  This Agreement and the Plan constitute the entire agreement of the parties and supercede all prior undertakings and agreements with respect to the subject matter hereof.  If any inconsistency should exit between the nondiscretionary terms and conditions of this Agreement and the Plan, the Plan shall govern and control.

10.3.     Notices.  Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered to Participant shall be in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to time to the Company.  All notices shall be deemed to have been given or delivered upon:  (a) personal delivery; (b) five (5) days after deposit in the United States mail by certified or registered mail (return receipt requested); (c) two (2) business day after deposit with any return receipt express courier (prepaid); or (d) one (1) business day after transmission by facsimile.

 

Page 5

 

 

 

10.4.     Successors and Assigns.  The Company may assign any of its rights under this Agreement.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, legal representatives, successors and assigns.

10.5.     Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to its conflict of law principles.  If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

11.        Acceptance.  Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and this Agreement.  Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax advisor prior to such exercise or disposition.

[SIGNATURE PAGE FOLLOWS]

 

Page 6

 

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and Participant has executed this Agreement, effective as of the Date of Grant.

	
            AFFIRMATIVE INSURANCE HOLDINGS, INC.
 
	
             
 	
             
 
	
            By:
 	
            /s/ Chad M. Emmerich
 
	
             
 	
            

 
	
            Name:
 	
            Chad M. Emmerich
 
	
            Title:
 	
            Senior VP, Human Resources           
 

 

 

	
            PARTICIPANT
 
	
             
 
	
             
 
	
             
 
	
            /s/ Robert Bondi
 
	
            

 
	
            (Signature)
 
	
             
 
	
            Printed Name:  Robert Bondi
 

 

 

 

Page 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]