Document:

EX 10.1

    

     

    

     

    EXHIBIT
      10.1

     

     

    
      

      

    

     

     

    LOAN
      AND
      SECURITY AGREEMENT

     

    among

     

    HOOPER
      HOLMES, INC.,

     

    as
      Borrower,

     

    the
      Lenders from time to time party thereto,

     

    and

     

    CITICAPITAL
      COMMERCIAL CORPORATION,

     

    as
      Agent

     

    Dated
      as
      of October 10, 2006

     

     

    

    
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

       

      

        TABLE
          OF CONTENTS

         

        
          	
                   

                	
                   

                	
                  Page

                
	
                  ARTICLE
                    I. DEFINITIONS

                	
                  2

                
	
                  SECTION
                    1.1

                	
                  General
                    Definitions

                	
                  2

                
	
                  SECTION
                    1.2

                	
                  Accounting
                    Terms and Determinations

                	
                  19

                
	
                  SECTION
                    1.3

                	
                  Other
                    Terms; Headings

                	
                  19

                
	
                  ARTICLE
                    II. THE CREDIT FACILITIES

                	
                  20

                
	
                  SECTION
                    2.1

                	
                  The
                    Revolving Credit Loans

                	
                  20

                
	
                  SECTION
                    2.2

                	
                  Procedure
                    for Borrowing; Notices of Borrowing; Notices of Continuation;
                    Notices of
                    Conversion

                	
                  20

                
	
                  SECTION
                    2.3

                	
                  Application
                    of Proceeds

                	
                  23

                
	
                  SECTION
                    2.4

                	
                  Maximum
                    Amount of the Revolving Facility; Mandatory Prepayments; Optional
                    Prepayments

                	
                  23

                
	
                  SECTION
                    2.5

                	
                  Maintenance
                    of Loan Account; Statements of Account

                	
                  24

                
	
                  SECTION
                    2.6

                	
                  Collection
                    of Receivables

                	
                  25

                
	
                  SECTION
                    2.7

                	
                  Term

                	
                  26

                
	
                  SECTION
                    2.8

                	
                  Payment
                    Procedures

                	
                  26

                
	
                  SECTION
                    2.9

                	
                  Defaulting
                    Lenders

                	
                  27

                
	
                  SECTION
                    2.10

                	
                  Letters
                    of Credit

                	
                  28

                
	
                  SECTION
                    2.11

                	
                  Sharing
                    of Payments, Etc

                	
                  30

                
	
                  ARTICLE
                    III. SECURITY

                	
                  30

                
	
                  SECTION
                    3.1

                	
                  General

                	
                  30

                
	
                  SECTION
                    3.2

                	
                  Further
                    Security

                	
                  31

                
	
                  SECTION
                    3.3

                	
                  Recourse
                    to Security

                	
                  31

                
	
                  SECTION
                    3.4

                	
                  Special
                    Provisions Relating to Inventory

                	
                  31

                
	
                  SECTION
                    3.5

                	
                  Special
                    Provisions Relating to Receivables

                	
                  31

                
	
                  SECTION
                    3.6

                	
                  Special
                    Provisions Relating to Equipment

                	
                  32

                
	
                  SECTION
                    3.7

                	
                  Continuation
                    of Liens, Etc

                	
                  33

                
	
                  SECTION
                    3.8

                	
                  Power
                    of Attorney

                	
                  33

                
	
                  ARTICLE
                    IV. INTEREST, FEES AND EXPENSES

                	
                  33

                
	
                  SECTION
                    4.1

                	
                  Interest

                	
                  33

                
	
                  SECTION
                    4.2

                	
                  Interest
                    and Letter of Credit Fees After Event of Default

                	
                  34

                
	
                  SECTION
                    4.3

                	
                  Closing
                    Fee

                	
                  34

                
	
                  SECTION
                    4.4

                	
                  Unused
                    Line Fee; Letter of Credit Fees

                	
                  34

                
	
                  SECTION
                    4.5

                	
                  Early
                    Termination Fee

                	
                  34

                
	
                  SECTION
                    4.6

                	
                  Calculations

                	
                  35

                
	
                  SECTION
                    4.7

                	
                  Indemnification
                    in Certain Events

                	
                  35

                
	
                  SECTION
                    4.8

                	
                  Taxes

                	
                  35

                
	
                  ARTICLE
                    V. CONDITIONS OF LENDING

                	
                  37

                
	
                  SECTION
                    5.1

                	
                  Conditions
                    to Initial Loan or Letter of Credit

                	
                  37

                
	
                  SECTION
                    5.2

                	
                  Conditions
                    Precedent to Each Loan and Each Letter of Credit

                	
                  41

                

        

         

        
          
            
            

          

          
            -i-

            
              

            

          

          
            
            

          

        

        

        
          	
                  ARTICLE
                    VI. REPRESENTATIONS AND WARRANTIES

                	
                  41

                
	
                  SECTION
                    6.1

                	
                  Representations
                    and Warranties of the Borrower; Reliance by the Lenders

                	
                  41

                
	
                  ARTICLE
                    VII. COVENANTS OF THE BORROWER

                	
                  48

                
	
                  SECTION
                    7.1

                	
                  Affirmative
                    Covenants

                	
                  48

                
	
                  SECTION
                    7.2

                	
                  Negative
                    Covenants

                	
                  57

                
	
                  ARTICLE
                    VIII. FINANCIAL COVENANT

                	
                  61

                
	
                  SECTION
                    8.1

                	
                  Fixed
                    Charge Coverage Ratio

                	
                  61

                
	
                  ARTICLE
                    IX. EVENTS OF DEFAULT

                	
                  61

                
	
                  SECTION
                    9.1

                	
                  Events
                    of Default

                	
                  61

                
	
                  SECTION
                    9.2

                	
                  Acceleration,
                    Termination and Cash Collateralization

                	
                  63

                
	
                  SECTION
                    9.3

                	
                  Other
                    Remedies

                	
                  64

                
	
                  SECTION
                    9.4

                	
                  License
                    for Use of Software and Other Intellectual Property

                	
                  65

                
	
                  SECTION
                    9.5

                	
                  No
                    Marshalling; Deficiencies; Remedies Cumulative

                	
                  65

                
	
                  SECTION
                    9.6

                	
                  Waivers

                	
                  65

                
	
                  SECTION
                    9.7

                	
                  Further
                    Rights of the Agent

                	
                  66

                
	
                  SECTION
                    9.8

                	
                  Interest
                    and Letter of Credit Fees After Event of Default

                	
                  66

                
	
                  ARTICLE
                    X. THE AGENT

                	
                  66

                
	
                  SECTION
                    10.1

                	
                  Appointment
                    of Agent

                	
                  66

                
	
                  SECTION
                    10.2

                	
                  Nature
                    of Duties of Agent

                	
                  67

                
	
                  SECTION
                    10.3

                	
                  Lack
                    of Reliance on Agent

                	
                  67

                
	
                  SECTION
                    10.4

                	
                  Certain
                    Rights of the Agent

                	
                  67

                
	
                  SECTION
                    10.5

                	
                  Reliance
                    by Agent

                	
                  67

                
	
                  SECTION
                    10.6

                	
                  Indemnification
                    of Agent

                	
                  67

                
	
                  SECTION
                    10.7

                	
                  The
                    Agent in Its Individual Capacity

                	
                  68

                
	
                  SECTION
                    10.8

                	
                  Holders
                    of Revolving Credit Notes

                	
                  68

                
	
                  SECTION
                    10.9

                	
                  Successor
                    Agent

                	
                  68

                
	
                  SECTION
                    10.10

                	
                  Collateral
                    Matters

                	
                  69

                
	
                  SECTION
                    10.11

                	
                  Actions
                    with Respect to Defaults

                	
                  69

                
	
                  SECTION
                    10.12

                	
                  Delivery
                    of Information

                	
                  70

                
	
                  ARTICLE
                    XI. GENERAL PROVISIONS

                	
                  70

                
	
                  SECTION
                    11.1

                	
                  Notices

                	
                  70

                
	
                  SECTION
                    11.2

                	
                  Delays;
                    Partial Exercise of Remedies

                	
                  70

                
	
                  SECTION
                    11.3

                	
                  Right
                    of Setoff

                	
                  70

                
	
                  SECTION
                    11.4

                	
                  Indemnification;
                    Reimbursement of Expenses of Collection

                	
                  71

                
	
                  SECTION
                    11.5

                	
                  Amendments,
                    Waivers and Consents

                	
                  72

                
	
                  SECTION
                    11.6

                	
                  Nonliability
                    of Agent and Lenders

                	
                  72

                
	
                  SECTION
                    11.7

                	
                  Assignments
                    and Participations

                	
                  72

                
	
                  SECTION
                    11.8

                	
                  Counterparts;
                    Telecopied Signatures

                	
                  75

                
	
                  SECTION
                    11.9

                	
                  Severability

                	
                  75

                
	
                  SECTION
                    11.10

                	
                  Maximum
                    Rate

                	
                  75

                

        

         

        
          
            
            

          

          
            -ii-

            
              

            

          

          
            
            

          

        

        

        
          	
                  SECTION
                    11.11

                	
                  Entire
                    Agreement; Successors and Assigns; Interpretation

                	
                  76

                
	
                  SECTION
                    11.12

                	
                  LIMITATION
                    OF LIABILITY

                	
                  76

                
	
                  SECTION
                    11.13

                	
                  GOVERNING
                    LAW

                	
                  76

                
	
                  SECTION
                    11.14

                	
                  SUBMISSION
                    TO JURISDICTION

                	
                  76

                
	
                  SECTION
                    11.15

                	
                  SERVICE
                    OF PROCESS

                	
                  77

                
	
                  SECTION
                    11.16

                	
                  JURY
                    TRIAL

                	
                  77

                
	
                  SECTION
                    11.17

                	
                  Publicity

                	
                  77

                

        

      

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

     

    Schedules

    

    
      	 	
              Schedule 1

            	 	
              Commitments
                of Lenders

            

    

    
      	 	
              Schedule
                6.1(a)

            	 	
              Foreign
                Jurisdictions

            

    

    
      	 	
              Schedule
                6.1(b)

            	 	
              Locations
                of Collateral and Real Property

            

    

    
      	 	
              Schedule
                6.1(f)

            	 	
              Consents
                and Authorizations

            

    

    
      	 	
              Schedule
                6.1(g)

            	 	
              Ownership;
                Subsidiaries

            

    

    
      	 	
              Schedule
                6.1(i)

            	 	
              Contingent
                Obligations

            

    

    
      	 	
              Schedule
                6.1(k)

            	 	
              Joint
                Ventures and Partnerships

            

    

    
      	 	
              Schedule
                6.1(r)

            	 	
              Judgments;
                Litigation

            

    

    
      	 	
              Schedule
                6.1(x)

            	 	
              ERISA
                Plans

            

    

    
      	 	
              Schedule
                6.1(y)

            	 	
              Intellectual
                Property

            

    

    
      	 	
              Schedule
                6.1(z)

            	 	
              Labor
                Contracts

            

    

    
      	 	
              Schedule
                6.1(dd)

            	 	
              Material
                Contracts

            

    

    
      	 	
              Schedule
                6.1(ff)

            	 	
              Affiliate
                Transactions

            

    

    
      	 	
              Schedule
                7.1(q)

            	 	
              Billing
                Practices

            

    

    
      	 	
              Schedule
                7.2(s)

            	 	
              Bank
                Accounts

            

    

    

    Exhibits

    

    
      	 	
              Exhibit A

            	
              -

            	
              Revolving
                Credit Note

            

    

    
      	 	
              Exhibit B

            	
              -

            	
              Assignment
                and Acceptance

            

    

    
      	 	
              Exhibit C

            	
              -

            	
              Pledge
                Agreement

            

    

    
      	 	
              Exhibit D

            	
              -

            	
              Subsidiary
                Guaranty

            

    

    
      	 	
              Exhibit E

            	
              -

            	
              Subsidiary
                Security Agreement

            

    

    
      	 	
              Exhibit F

            	
              -

            	
              Contribution
                Agreement

            

    

    
      	 	
              Exhibit G

            	
              -

            	
              Compliance
                Certificate

            

    

    
      	 	
              Exhibit H

            	
              -

            	
              Notice
                of Borrowing

            

    

    
      	 	
              Exhibit I

            	
              -

            	
              Notice
                of Continuation

            

    

    
      	 	
              Exhibit J

            	
              -

            	
              Notice
                of Conversion

            

    

    
      	 	
              Exhibit K

            	
              -

            	
              Borrowing
                Base Certificate

            

    

    
      	 	
              Exhibit L

            	
              -

            	
              Solvency
                Certificate

            

    

    
      	 	
              Exhibit M

            	
              -

            	
              Perfection
                Certificate

            

    

    
      	 	
              Exhibit N

            	
              -

            	
              Letter
                of Credit Request

            

    

    
      	 	
              Exhibit O

            	
              -

            	
              No
                Material Adverse Effect
                Certificate

            

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    LOAN
      AND SECURITY AGREEMENT

     

    LOAN
      AND SECURITY AGREEMENT,
      dated
      as of October 10, 2006, among Hooper Holmes, Inc., a New York corporation
      (the “Borrower”),
      each
      of the financial institutions identified as a Lender on Schedule 1
      (together with each of their respective direct and indirect successors and
      assigns, each, a “Lender,”
and
      collectively, the “Lenders”),
      and
      CITICAPITAL COMMERCIAL CORPORATION, a Delaware corporation (“CitiCapital”),
      as
      agent for the Lenders (the “Agent”).

     

     

    W
      I T N E S S E T H
      :

     

    WHEREAS,
      the
      Borrower wishes to obtain a revolving credit facility; and

     

    WHEREAS,
      upon
      the terms and subject to the conditions set forth herein, the Lenders are
      willing to make loans and other extensions of credit to the Borrower in an
      aggregate amount not to exceed $25,000,000;

     

    NOW,
      THEREFORE,
      the
      Borrower, the Lenders and the Agent hereby agree as follows:

     

     

    ARTICLE
      I. 

    DEFINITIONS

     

    
      	SECTION
              1.1   	
              General
                Definitions

            

    

     

    .
      As used
      herein, the following terms shall have the meanings herein specified (to be
      equally applicable to both the singular and plural forms of the terms
      defined):

     

    “Acceptance
      Date”
has
      the
      meaning specified in Section 11.7(b).

     

    “Advance”
means
      a
      Base Rate Advance or a LIBOR Rate Advance.

     

    “Affiliate”
means,
      as to any Person, any other Person who directly or indirectly controls, is
      under
      common control with, is controlled by or is a director, officer, manager or
      general partner of such Person. As used in this definition, “control” (including
      its correlative meanings, “controlled by” and “under common control with”) means
      possession, directly or indirectly, of the power to direct or cause the
      direction of management or policies (whether through ownership of voting
      securities or partnership or other ownership interests, by contract or
      otherwise), provided
      that, in
      any event, any Person who owns directly or indirectly ten percent (10%) or
      more
      of the securities having ordinary voting power for the election of the members
      of the board of directors or other governing body of a corporation or ten
      percent (10%) or more of the partnership or other ownership interests of any
      other Person (other than as a limited partner of such other Person) will be
      deemed to control such corporation, partnership or other Person.

     

    “Agent”
has
      the
      meaning specified in the introductory paragraph.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    “Agent’s
      Payment Account”
means
      the account of the Agent at Citibank, N.A. in New York, New York, account number
      30573686, or such other account of the Agent or any of its Affiliates in the
      United States as the Agent may from time to time designate in writing to the
      Borrower and the Lenders.

     

    “Agreement”
means
      this Loan and Security Agreement, as amended, supplemented or otherwise modified
      from time to time.

     

    “Assignment
      and Acceptance”
means
      an assignment and acceptance agreement entered into by a Lender and its
      assignee, and accepted by the Agent, and substantially in the form of
      Exhibit B.

     

    “Auditors”
means
      a
      nationally recognized firm of independent public accountants selected by the
      Borrower and reasonably satisfactory to the Agent.

     

    “Bankruptcy
      Code”
means
      Title 11 of the United States Code entitled “Bankruptcy,” as that title may be
      amended from time to time, or any successor statute.

     

    “Base
      Rate”
means
      the rate of interest publicly announced from time to time by Citibank, N.A.
      as
      its base rate.

     

    “Base
      Rate Advance”
means
      an Advance that bears interest as provided in Section 4.1(a).

     

    “Borrower”
has
      the
      meaning specified in the introductory paragraph.

     

    “Borrower’s
      Account”
means
      the deposit account designated by the Borrower in writing to the Agent from
      time
      to time as its “Borrower’s Account.”

     

    “Borrowing”
has
      the
      meaning specified in Section 2.2(a).

     

    “Borrowing
      Base”
has
      the
      meaning specified in Section 2.1(a).

     

    “Borrowing
      Base Certificate”
has
      the
      meaning specified in Section 7.1(k)(v).

     

    “Borrowing
      Date”
means
      the date on which a Borrowing is obtained.

     

    “BSA”
has
      the
      meaning specified in Section 6.1(gg).

     

    “Business
      Day”
means
      any day other than a Saturday, a Sunday or any other day on which commercial
      banks in New York, New York are required or permitted by law to close. When
      used
      in connection with any LIBOR Rate Advance, a Business Day shall also exclude
      any
      day on which commercial banks are not open for dealings in Dollar deposits
      in
      the London interbank market.

     

    “Business
      Plan”
means
      a
      business plan of the Borrower and its Subsidiaries, consisting of consolidated
      and consolidating projected balance sheets, related cash flow statements and
      related profit and loss statements, and availability forecasts, together with
      appropriate supporting details and a statement of the underlying assumptions,
      which covers a one-year period divided into separate months, except that a
      Business Plan shall not include consolidating cash flow
      statements.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    “Capital
      Expenditures”
means
      expenditures for any fixed assets or improvements, replacements, substitutions
      or additions thereto or therefor which have a useful life of more than one
      year,
      and shall include all commitments, payments in respect of Capitalized Lease
      Obligations and leasehold improvements.

     

    “Capitalized
      Lease Obligations”
means
      any rental obligation which, under GAAP, is or will be required to be
      capitalized on the books of the lessee, taken at the amount thereof accounted
      for as Indebtedness in accordance with GAAP.

     

    “Cash
      Equivalents”
means
      (i) securities issued, guaranteed or insured by the United States or any of
      its agencies with maturities of not more than one year from the date acquired;
      (ii) certificates of deposit with maturities of not more than one year from
      the date acquired, issued by (A) the Agent or its Affiliates; (B) any
      U.S. federal or state chartered commercial bank of recognized standing which
      has
      capital and unimpaired surplus in excess of $500,000,000; or (C) any bank
      or its holding company that has a short-term commercial paper rating of at
      least
      A-1 or the equivalent by Standard & Poor’s Ratings Services or at least P-1
      or the equivalent by Moody’s Investors Service, Inc.; (iii) repurchase
      agreements and reverse repurchase agreements with terms of not more than seven
      days from the date acquired, for securities of the type described in
      clause (i) above and entered into only with commercial banks having the
      qualifications described in clause (ii) above or such other financial
      institutions with a short-term commercial paper rating of at least A-1 or the
      equivalent by Standard & Poor’s Ratings Services or at least P-1 or the
      equivalent by Moody’s Investors Service, Inc.; (iv) commercial paper, other
      than commercial paper issued by the Borrower or any of its Affiliates, issued
      by
      any Person incorporated under the laws of the United States or any state thereof
      and rated at least A-1 or the equivalent thereof by Standard & Poor’s
      Ratings Services or at least P-1 or the equivalent thereof by Moody’s Investors
      Service, Inc., in each case with maturities of not more than one year from
      the
      date acquired; and (v) investments in money market funds registered under
      the Investment Company Act of 1940, which have net assets of at least
      $500,000,000 and at least eighty-five percent (85%) of whose assets consist
      of
      securities and other obligations of the type described in clauses (i) through
      (iv) above.

     

    “Casualty
      Loss”
has
      the
      meaning specified in Section 7.1(i).

     

    “CitiCapital”
has
      the
      meaning specified in the introductory paragraph.

     

    “Claim”
has
      the
      meaning specified in Section 11.4(a).

     

    “Closing
      Date”
means
      the date of execution and delivery of this Agreement.

     

    “Code”
has
      the
      meaning specified in Section 1.3.

     

    “Collateral”
means
      all Receivables, Equipment, General Intangibles, Inventory, Investment Property
      and all other personal property of the Borrower and the other Loan Parties,
      the
      Property and all other collateral specified in this Agreement and in the
      Security Documents.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    “Collateralization”
and
      “Collateralize”
each
      means, with respect to any Letter of Credit, the deposit by the Borrower in
      a
      cash collateral account established and controlled by or on behalf of the Agent
      of an amount equal to 105% of the undrawn amount of such Letter of
      Credit.

     

    “Collections”
means
      all cash, funds, checks, notes, instruments, any other form of remittance
      tendered by account debtors in respect of the payment of Receivables of the
      Borrower.

     

    “Commitment”
means,
      with respect to any Lender, its commitment to make Loans and to participate
      in
      Letters of Credit up to the amount set forth opposite its name on
      Schedule 1.

     

    “Compliance
      Certificate”
has
      the
      meaning specified in Section 7.1(k)(iv).

     

    “Contingent
      Obligation”
means
      any direct, indirect, contingent or non-contingent guaranty or obligation for
      the Indebtedness of another Person, except endorsements in the ordinary course
      of business.

     

    “Continuation”
has
      the
      meaning specified in Section 2.2(b).

     

    “Contribution
      Agreement”
means
      the contribution, subrogation and indemnity agreement among the Loan Parties,
      substantially in the form of Exhibit F, as amended, supplemented or
      otherwise modified from time to time.

     

    “Control
      Agreement”
means
      a
      control agreement, in form and substance satisfactory to the Agent, among one
      or
      more of the Borrower or its Subsidiaries, the Agent and the applicable
      securities intermediary or depository bank, including, without limitation,
      the
      Lockbox Account Agreement, with respect to the applicable Securities Account
      and
      related Investment Property or deposit account, as the case may be.

     

    “Convert,”
      “Conversion”
and
      “Converted”
each
      refers to conversion of Advances of one Type into Advances of another Type
      pursuant to Section 2.2(c).

     

    “Corporate
      Headquarters”
means
      the real property, buildings and improvements owned in fee by the Borrower
      and
      located at 170 Mt. Airy Road, Basking Ridge, New Jersey 07920.

     

    “Default”
means
      any of the events specified in Section 9.1, whether or not any of the
      requirements for the giving of notice, the lapse of time, or both, or any other
      condition, has been satisfied.

     

    “Defaulting
      Lender”
has
      the
      meaning specified in Section 2.9(a).

     

    “Dollars”
and
      the
      sign “$”
means
      freely transferable lawful currency of the United States of
      America.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    “EBITDA”
means,
      for any period, with respect to the Borrower and its Subsidiaries on a
      consolidated basis (i) net income (as that term is determined in accordance
      with GAAP) for such period, plus
      (ii) the amount of depreciation and amortization of fixed and intangible
      assets deducted in determining such net income for such period, plus
      (iii) all Interest Expense and all fees for the use of money or the
      availability of money, including commitment, facility and like fees and charges
      upon Indebtedness (including Indebtedness to the Lenders) paid or payable during
      such period, plus
      (iv) all tax liabilities paid or accrued during such period, less
      (v) the amount of all gains (or plus
      the
      amount of all losses) realized during such period upon the sale or other
      disposition of property or assets that are sold or otherwise disposed of outside
      the ordinary course of business that is included in the calculation of net
      income for such period.

     

    “Eligible
      Assignee”
means
      (i) a Lender or any Affiliate thereof; (ii) a commercial bank
      organized or licensed under the laws of the United States or a state thereof
      having total assets in excess of $1,000,000,000; (iii) a finance company,
      insurance company or other financial institution or fund, which is regularly
      engaged in making, purchasing or investing in loans and having total assets
      in
      excess of $1,000,000,000; or (iv) a savings and loan association or savings
      bank organized under the laws of the United States or a state thereof which
      has
      a net worth, determined in accordance with GAAP, in excess of $500,000,000;
      provided,
      however,
      that
      (A) neither a Loan Party nor an Affiliate of a Loan Party shall qualify as
      an Eligible Assignee, (B) each Eligible Assignee under clauses (ii) through
      (iv) hereof shall be reasonably acceptable to and subject to the consent of
      the
      Agent, and (C) nothing herein shall restrict or require the consent of any
      Person to the pledge by any Lender of all or any portion of its rights and
      interests under this Agreement, its Revolving Credit Note or any other Loan
      Document to any Federal Reserve Bank in accordance with Regulation A of the
      Board of Governors of the Federal Reserve System or U.S. Treasury Regulation
      31
      CFR 203.14, and such Federal Reserve Bank may enforce such pledge in any manner
      permitted by applicable law.

     

    “Eligible
      Receivables”
means
      and includes only those unpaid Receivables of a Loan Party, without duplication,
      which (i) arise out of a bona fide sale of goods or rendition of services
      of the kind ordinarily sold or rendered by such Loan Party in the ordinary
      course of its business, (ii) are in respect of a Person competent to
      contract therefor who is not an Affiliate or an employee of such Loan Party
      and
      is not controlled by an Affiliate of such Loan Party, (iii) are not subject
      to renegotiation or redating, (iv) are free and clear of any Lien in favor
      of any Person other than Liens in favor of the Agent and Liens permitted under
      Section 7.2(i), and (v) mature as stated in the invoice or other supporting
      data covering such sale or services. No Receivable of a Loan Party shall be
      an
      Eligible Receivable (i) unless the Agent has a perfected first priority
      Lien thereon, (ii) if it is more than ninety days past the date of the
      original invoice therefor or more than sixty days past its due date,
      (iii) unless the delivery of the goods or the rendition of the services
      giving rise to such Receivable has been completed, and (iv) unless and
      until the Agent has conducted a field examination of such Loan Party (including,
      without limitation, of such Receivable), and such Loan Party shall have put
      into
      place cash management arrangements and procedures covering such Loan Party’s
      collections in respect of its Receivables, satisfactory to the Agent in its
      sole
      discretion, or the Agent has otherwise consented in writing to such Receivable
      being included in the Borrowing Base determination. Further, the Agent may
      treat
      any Receivable as ineligible if:

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (a) any
      warranty contained in this Agreement or in any other Loan Document with respect
      to such Receivable or in any assignment or statement of warranties or
      representations relating to such Receivable delivered by the applicable Loan
      Party to the Agent has been breached or is untrue in any material respect or
      such Loan Party is not in compliance with all applicable laws with respect
      to
      such Receivable; or

     

    (b) the
      account debtor or any Affiliate of the account debtor has disputed liability,
      has or has asserted a right of setoff or has made any claim with respect to
      any
      other Receivable due from such account debtor or Affiliate to the applicable
      Loan Party, to the extent of the amount of such dispute or claim, or the amount
      of such actual or asserted right of setoff, as the case may be; or

     

    (c) the
      account debtor or any of its assets or any Affiliate of the account debtor
      or
      any of its assets is the subject of an Insolvency Event or, in the sole
      discretion of the Agent, is likely to become the subject of an Insolvency Event,
      unless such account debtor or Affiliate has been provided with a debtor in
      possession credit facility pursuant to Section 364 of the Bankruptcy Code or
      a
      similar arrangement reasonably acceptable to the Agent; or

     

    (d) the
      account debtor or any Affiliate of the account debtor has called a meeting
      of
      its creditors to obtain any general financial accommodation; or

     

    (e) the
      account debtor is also a supplier to or creditor of the applicable Loan Party,
      to the extent of the aggregate amount owed by such Loan Party to the account
      debtor; or

     

    (f) the
      sale
      of goods or rendition of services is to an account debtor outside the United
      States of America, unless it is on letter of credit, acceptance or other terms
      acceptable to the Agent; or

     

    (g) fifty
      percent (50%) or more of the aggregate balance of the accounts of any single
      account debtor and its Affiliates to the applicable Loan Party is unpaid more
      than ninety days past the date of the original invoice(s) therefor or more
      than
      sixty days past the applicable due date(s); or

     

    (h) the
      account debtor is the United States of America or any department, agency or
      instrumentality thereof, unless the applicable Loan Party assigns its right
      to
      payment under such Receivable to the Agent as collateral hereunder in full
      compliance with (including, without limitation, the filing of a written notice
      of the assignment and a copy of the assignment with, and receipt of
      acknowledgment thereof by, the appropriate contracting and disbursing offices
      pursuant to) the Assignment of Claims Act of 1940, as amended (U.S.C.
§ 3727; 41 U.S.C. § 15); or

     

    (i) the
      Agent
      believes, in its sole discretion, that collection of such Receivable is insecure
      or that such Receivable may not be paid by reason of the account debtor’s
      inability or unwillingness to pay.

     

    Any
      determination by the Agent hereunder that a Receivable is ineligible based
      upon
      one or more of the grounds set out in this definition shall be conclusive and
      final as to the Loan Parties and shall not be subject to
      challenge.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    “Environmental
      Laws”
means
      all federal, state and local statutes, laws (including common or case law),
      rulings, regulations or governmental, administrative or judicial policies,
      directives, orders or interpretations applicable to the business or property
      of
      a Person relating to pollution or protection of human health or the environment
      (including, without limitation, ambient air, surface water, ground water, land
      surface or subsurface strata) including, without limitation, laws and
      regulations relating to emissions, discharges, releases or threatened releases
      of Hazardous Materials, or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of any
      Hazardous Materials.

     

    “Equipment”
means
      all machinery, equipment, furniture, fixtures, leasehold improvements,
      conveyors, tools, materials, storage and handling equipment, hydraulic presses,
      cutting equipment, computer equipment and hardware, including central processing
      units, terminals, drives, memory units, embedded computer programs and
      supporting information, printers, keyboards, screens, peripherals and input
      or
      output devices, molds, dies, stamps, and other equipment of every kind and
      nature and wherever situated now or hereafter owned by a Person or in which
      a
      Person may have any interest as lessee or otherwise (to the extent of such
      interest), together with all additions and accessions thereto, all replacements
      and all accessories and parts therefor, all manuals, blueprints, know-how,
      warranties and records in connection therewith and all rights against suppliers,
      warrantors, manufacturers, and sellers or others in connection therewith,
      together with all substitutes for any of the foregoing.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1000 et seq.,
      amendments thereto, successor statutes, and regulations or guidelines
      promulgated thereunder.

     

    “ERISA
      Affiliate”
means
      any entity required to be aggregated with the Borrower under Section 414(b),
      (c), (m) or (o) of the Internal Revenue Code.

     

    “Event
      of Default”
means
      the occurrence of any of the events specified in Section 9.1.

     

    “Expiration
      Date”
means
      the earlier of (i) October 10, 2009, and (ii) the date of
      termination of the Commitments.

     

    “Fair
      Market Value”
in
      respect of the Corporate Headquarters means the fair market value assigned
      to
      the Corporate Headquarters by the Agent as of the Mortgage Effective Date.
      For
      the avoidance of doubt, until the Mortgage Effective Date, the Fair Market
      Value
      of the Corporate Headquarters shall be $0.00. 

     

    “Federal
      Funds Rate”
means,
      for any period, a fluctuating interest rate per annum
      equal,
      for each day during such period, to the weighted average of the rates on
      overnight Federal Funds transactions with members of the Federal Reserve System
      arranged by Federal Funds brokers, as published for such day (or, if such day
      is
      not a Business Day, for the next preceding Business Day) by the Federal Reserve
      Bank of New York, or, if such rate is not so published for any day that is
      a
      Business Day, the average of the quotations for such day on such transactions
      received by the Agent from three Federal Funds brokers of recognized standing
      selected by it.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    “Federal
      Reserve Board”
means
      the Board of Governors of the Federal Reserve System or any Person succeeding
      to
      the functions thereof.

     

    “Financial
      Covenant”
means
      the covenant set forth in Section 8.1.

     

    “Financial
      Statements”
means,
      with respect to a Loan Party, the balance sheets, profit and loss statements
      and
      statements of cash flow of such Loan Party for the period specified, prepared
      in
      accordance with GAAP and consistent with prior practices and, except in the
      case
      of annual audited Financial Statements, a comparison in reasonable detail to
      (i) the projected balance sheets, profit and loss statements and statements
      of cash flow set forth in the Business Plan for the same year-to-date and
      month-to-date periods, and (ii) the balance sheets, profit and loss
      statements and statements of cash flow for the same year-to-date and
      month-to-date periods of the immediately preceding year.

     

    “Fixed
      Charge Coverage Ratio”
means
      (without duplication), for any trailing twelve-month period, with respect to
      the
      Borrower and its Subsidiaries on a consolidated basis (except in the case of
      clause (Y)(iv) hereof), as of the date of determination thereof, the ratio
      of (X) EBITDA for such period, to (Y) (i) all principal amounts
      of Indebtedness (including Indebtedness to the Lenders to the extent such
      amounts may not be reborrowed) paid or payable during such period, plus
      (ii) all Interest Expense and all fees for the use of money or the
      availability of money, including commitment, facility and like fees and charges
      upon Indebtedness (including Indebtedness to the Lenders) paid or payable during
      such period, plus
      (iii) all loans and Investments required to be made with respect to any
      Person made during such period, plus
      (iv) without limitation of the restrictions specified in
      Section 7.2(j), all dividends, stock repurchases or other distributions
      paid or payable in cash on account of the Borrower’s capital stock or other
      equity interests during such period, plus
      (v) all Capital Expenditures paid or payable during such period other than
      Capital Expenditures financed with the proceeds of Indebtedness (other than
      proceeds of Loans), plus
      (vi) all tax liabilities paid or accrued during such period.

     

    “Foreign
      Plan”
has
      the
      meaning specified in Section 7.1(m).

     

    “GAAP”
means
      generally accepted accounting principles set forth in the opinions and
      pronouncements of the Accounting Principles Board of the American Institute
      of
      Certified Public Accountants and statements and pronouncements of the Financial
      Accounting Standards Board that are applicable to the circumstances as of the
      date of determination.

     

    “General
      Intangibles”
means
      all present and future general intangibles as defined in the Code including,
      without limitation, documents, certificates, patents, patent applications,
      copyrights (registered and unregistered), licenses, permits, franchise rights,
      authorizations, customer and supplier lists, rights of indemnification,
      contribution and subrogation, leases, computer tapes, programs, discs and
      software, trade secrets, computer service contracts, trademarks, trade names,
      service marks, service names, domain names, logos, goodwill, deposits, causes
      of
      action (including, without limitation, commercial tort claims), choses in
      action, judgments, designs, blueprints, plans, know-how, drafts, acceptances,
      letters of credit, book accounts, deposit and other accounts and all money,
      balances, credits, deposits or other financial assets therein or represented
      thereby, credits and reserves and all forms of obligations whatsoever owing,
      instruments, documents of title, leasehold rights in any goods, and books,
      ledgers, files and records with respect to any collateral or
      security.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    “Governing
      Documents”
means,
      with respect to any Person, the certificate of incorporation and bylaws or
      similar organizational documents of such Person.

     

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof
      or
      any entity exercising executive, legislative, judicial, regulatory or
      administrative functions thereof or pertaining thereto.

     

    “Guarantors”
means
      each Subsidiary party to the Subsidiary Guaranty.

     

    “Hazardous
      Materials”
means
      any and all pollutants, contaminants and toxic, caustic, radioactive and
      hazardous materials, substances and wastes including, without limitation,
      petroleum or petroleum distillates, asbestos or urea formaldehyde foam
      insulation or asbestos-containing materials, whether or not friable,
      polychlorinated biphenyls, radon gas, infectious or medical wastes and all
      other
      substances or wastes of any nature, that are regulated under any Environmental
      Laws.

     

    “Hedging
      Agreement”
means
      any interest rate protection agreement, foreign currency exchange agreement,
      commodity price protection agreement or other interest or currency exchange
      rate
      or commodity price hedging agreement.

     

    “Highest
      Lawful Rate”
has
      the
      meaning specified in Section 11.10.

     

    “Indebtedness”
means,
      with respect to any Person, as of the date of determination thereof (without
      duplication of the same obligation under any other clause hereof), (i) all
      obligations of such Person for borrowed money of any kind or nature, including
      funded and unfunded debt, (ii) all obligations of such Person under Hedging
      Agreements (including, without limitation, all payments such Person would have
      to make in the event of an early termination of a Hedging Agreement calculated
      as of the date Indebtedness of such Person is being determined hereunder) or
      arrangements therefor, regardless of whether the same is evidenced by any note,
      debenture, bond or other instrument, (iii) all obligations of such Person
      to pay the deferred purchase price of property or services (other than current
      trade accounts payable under normal trade terms and accrued expenses and which
      are incurred in the ordinary course of business that are not overdue for a
      period greater than six months or that are contested in good faith by
      appropriate proceedings), (iv) all obligations of such Person to acquire or
      for the acquisition or use of any fixed asset, including Capitalized Lease
      Obligations (other than, in any such case, any portion thereof representing
      interest or deemed interest or payments in respect of taxes, insurance,
      maintenance or service), or improvements which are payable over a period longer
      than one year, regardless of the term thereof or the Person or Persons to whom
      the same are payable, (v) the then outstanding amount of withdrawal or
      termination liability incurred under ERISA, (vi) all Indebtedness of others
      secured by (or for which the holder of such Indebtedness has an existing right
      to be secured) a Lien on any asset of such Person whether or not the
      Indebtedness is assumed by such Person, (vii) all Indebtedness of others to
      the extent guaranteed by such Person, (viii) all obligations of such Person
      created or arising under any conditional sale or other title retention agreement
      with respect to property acquired by such Person (even though the rights and
      remedies of the seller or lender under such agreements in the event of default
      are limited to repossession or sale of such property), (ix) all obligations
      or such Person to purchase, redeem, retire, defease or otherwise acquire for
      value any Interests of such Person, valued, in the case of redeemable preferred
      stock, at the greater of its voluntary or involuntary liquidation preference
      plus accrued and unpaid dividends, and (x) all reimbursement or other
      obligations of such Person in respect of letters of credit, bankers acceptances,
      surety bonds, performance bonds or similar instruments issued or accepted by
      banks or other financial institutions for the account of such Person, whether
      or
      not matured.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    “Indemnified
      Party”
has
      the
      meaning specified in Section 11.4(a).

     

    “Insolvency
      Event”
means,
      with respect to any Person, the occurrence of any of the following: (i) such
      Person shall be adjudicated insolvent or bankrupt or institutes proceedings
      to
      be adjudicated insolvent or bankrupt, or shall generally fail to pay or admit
      in
      writing its inability to pay its debts as they become due, (ii) such Person
      shall seek dissolution or reorganization or the appointment of a receiver,
      trustee, custodian or liquidator for it or a substantial portion of its
      property, assets or business or to effect a plan or other arrangement with
      its
      creditors, (iii) such Person shall make a general assignment for the benefit
      of
      its creditors, or consent to or acquiesce in the appointment of a receiver,
      trustee, custodian or liquidator for a substantial portion of its property,
      assets or business, (iv) such Person shall file a voluntary petition under
      any
      bankruptcy, insolvency or similar law, (v) such Person shall take any corporate
      or similar act in furtherance of any of the foregoing, or (vi) such Person,
      or a
      substantial portion of its property, assets or business, shall become the
      subject of an involuntary proceeding or petition for (A) its dissolution or
      reorganization, or (B) the appointment of a receiver, trustee, custodian or
      liquidator, and (I) such proceeding shall not be dismissed or stayed within
      sixty days, or (II) such receiver, trustee, custodian or liquidator shall be
      appointed; provided,
      however,
      that
      the Lenders shall have no obligation to make any Advance or cause to be issued
      any Letter of Credit during the pendency of any sixty-day period described
      in
      clause (I).

     

    “Interest
      Expense”
means,
      for any period, all interest with respect to Indebtedness (including, without
      limitation, the interest component of Capitalized Lease Obligations) accrued
      or
      capitalized during such period (whether or not actually paid during such period)
      determined in accordance with GAAP.

     

    “Interest
      Period”
means
      the period commencing on the date of a LIBOR Rate Advance and ending one, two
      or
      three months thereafter; provided,
      however,
      that
      (i) the Borrower may not select any Interest Period that ends after the
      Expiration Date; (ii) whenever the last day of an Interest Period would
      otherwise occur on a day other than a Business Day, the last day of such
      Interest Period shall be extended to occur on the next succeeding Business
      Day,
      except that, if such extension would cause the last day of such Interest Period
      to occur in the next following calendar month, then the last day of such
      Interest Period shall occur on the next preceding Business Day; and
      (iii) if there is no corresponding date of the month that is one, two or
      three months, as the case may be, after the first day of an Interest Period,
      such Interest Period shall end on the last Business Day of such first, second
      or
      third month, as the case may be.

     

    “Interests”
has
      the
      meaning specified in Section 7.2(j).

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    “Internal
      Revenue Code”
means
      the Internal Revenue Code of 1986, any amendments thereto, any successor statute
      and any regulations and guidelines promulgated thereunder.

     

    “Internal
      Revenue Service”
or
      “IRS”
means
      the United States Internal Revenue Service and any successor
      agency.

     

    “Inventory”
means
      all present and future goods intended for sale, lease or other disposition
      including, without limitation, all raw materials, work in process, finished
      goods and other retail inventory, goods in the possession of outside processors
      or other third parties, consigned goods (to the extent of the consignee’s
      interest therein), materials and supplies of any kind, nature or description
      which are or might be used in connection with the manufacture, packing,
      shipping, advertising, selling or finishing of any such goods, all documents
      of
      title or documents representing the same and all records, files and writings
      with respect thereto.

     

    “Investment”
in
      any
      Person means, as of the date of determination thereof, (i) any payment or
      contribution, or commitment to make a payment or contribution, by a Person
      including, without limitation, property contributed or committed to be
      contributed by such Person for or in connection with its acquisition of any
      stock, bonds, notes, debentures, partnership or other ownership interest or
      any
      other security of the Person in whom such Investment is made, or (ii) any
      loan, advance or other extension of credit or guaranty of or other surety
      obligation for any Indebtedness of such Person in whom the Investment is made.
      In determining the aggregate amount of Investments outstanding at any particular
      time, (i) a guaranty (or other surety obligation) shall be valued at not
      less than the principal outstanding amount of the primary obligation;
      (ii) returns of capital (but only by repurchase, redemption, retirement,
      repayment, liquidating dividend or liquidating distribution) shall be deducted;
      (iii) earnings, whether as dividends, interest or otherwise, shall not be
      deducted; and (iv) decreases in the market value shall not be deducted
      unless such decreases are computed in accordance with GAAP.

     

    “Investment
      Property”
means
      all present and future investment property, including without limitation, all
      (i) securities, whether certificated or uncertificated, and including
      stocks, bonds, debentures, notes, bills, certificates, warrants, options, rights
      and shares, (ii) security entitlements, (iii) securities accounts,
      (iv) commodity contracts, (v) commodity accounts and
      (vi) dividends and other distributions in respect of any of the
      foregoing.

     

    “Items
      of Payment”
has
      the
      meaning specified in Section 2.6.

     

    “Lender”
or
      “Lenders”
has
      the
      meaning specified in the introductory paragraph.

     

    “Letter
      of Credit Agreement”
means
      the collective reference to any and all agreements from time to time entered
      into by the Agent and Citibank, N.A. or another bank acceptable to the Agent
      (each an “issuing
      bank”)
      pursuant to which an issuing bank issues Letters of Credit for the account
      of
      the Borrower in accordance with the terms of this Agreement.

     

    “Letter
      of Credit Related Documents”
has
      the
      meaning specified in Section 2.10(f).

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    “Letter
      of Credit Request”
has
      the
      meaning specified in Section 2.10(c).

     

    “Letters
      of Credit”
means
      all letters of credit issued for the account of the Borrower under Section
      2.10,
      and all amendments, renewals, extensions or replacements thereof.

     

    “LIBOR
      Rate”
means,
      with respect to each Interest Period, the reserve adjusted rate per annum
      equal to
      the one, two or three-month London Interbank Offered Rate, as applicable, that
      appears in the “Money Rates” section of The
      Wall Street Journal
      on the
      first day of such Interest Period; provided,
      however,
      that if
The
      Wall Street Journal
      no
      longer publishes such one, two or three-month London Interbank Offered Rate,
      reference shall be made to the Dow Jones Market Service (formerly Telerate)
      page
      3750 for such London Interbank Offered Rate.

     

    “LIBOR
      Rate Advance”
means
      an Advance that bears interest as provided in Section 4.1(b).

     

    “Lien”
means
      any lien, claim, charge, pledge, security interest, assignment, hypothecation,
      deed of trust, mortgage, lease, conditional sale, retention of title or other
      preferential arrangement having substantially the same economic effect as any
      of
      the foregoing, whether voluntary or imposed by law.

     

    “Loan
      Account”
has
      the
      meaning specified in Section 2.5.

     

    “Loan
      Documents”
means
      this Agreement and all documents and instruments to be delivered by the Borrower
      or any of its Affiliates or any other Loan Party under or in connection with
      this Agreement, as each of the same may be amended, supplemented or otherwise
      modified from time to time, including, without limitation, the Revolving Credit
      Notes, the Subsidiary Guaranty, the Subsidiary Security Agreement, the
      Contribution Agreement, the Pledge Agreement, the Mortgage, the Lockbox Account
      Agreement, the Letter of Credit Agreement and any other Control
      Agreement.

     

    “Loan
      Party”
means
      the Borrower and each Guarantor.

     

    “Loans”
means
      the loans and financial accommodations made by the Agent or the Lenders
      hereunder or under the Letter of Credit Agreement, including, without
      limitation, the Revolving Credit Loans.

     

    “Lockbox”
has
      the
      meaning specified in Section 2.6(a).

     

    “Lockbox
      Account Agreement”
means
      a
      control agreement, in form and substance satisfactory to the Agent, among the
      Borrower, on behalf of all the Loan Parties, the Agent and the Lockbox Bank,
      as
      amended, supplemented or otherwise modified from time to time. 

     

    “Lockbox
      Bank”
means
      Citibank, N.A. or any successor or any other bank acceptable to the Agent to
      provide lockbox services under the Lockbox Account Agreement or to act as the
      depository of the Lockbox Deposit Account.

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    “Lockbox
      Deposit Account”
has
      the
      meaning specified in Section 2.6(a).

     

    “Lockbox
      Effective Date”
has
      the
      meaning specified in Section 2.6(a).

     

    “Material
      Adverse Effect”
means
      (i) a material adverse effect on the business, prospects, operations,
      results of operations, assets, liabilities or condition (financial or otherwise)
      of a Loan Party, (ii) the impairment of (A) a Loan Party’s ability to
      perform its obligations under the Loan Documents to which it is a party, or
      (B) the ability of the Agent or the Lenders to enforce the Obligations or
      realize upon the Collateral, or (iii) a material adverse effect on the
      value of the Collateral or the amount that the Agent or the Lenders would be
      likely to receive (after giving consideration to delays in payment and costs
      of
      enforcement) in the liquidation of the Collateral, in each case, as to the
      Borrower and its Subsidiaries on a consolidated basis.

     

    “Material
      Contract”
means
      any contract or other arrangement to which a Loan Party is a party (other than
      the Loan Documents) for which breach, nonperformance, cancellation or failure
      to
      renew could reasonably be expected to have a Material Adverse
      Effect.

     

    “Material
      Indebtedness”
means
      Indebtedness (other than the Loans and the MDG Indebtedness), or obligations
      in
      respect of one or more Hedging Agreements, of any Loan Party in an aggregate
      principal amount exceeding $500,000. For purposes of this definition, the
“principal amount” of the obligations of any Loan Party in respect of any
      Hedging Agreement at any time shall be the maximum aggregate amount (giving
      effect to any netting agreements) that such Loan Party would be required to
      pay
      if such Hedging Agreement were terminated at such time.

     

    “Maximum
      Amount of the Revolving Facility”
means
      Twenty-Five Million Dollars ($25,000,000).

     

    “MDG”
means
      the Borrower’s Subsidiary Medicals Direct Group Ltd.

     

    “MDG
      Indebtedness”
means
      the Indebtedness owing to the Borrower from MDG evidenced by that certain
      promissory note dated January 8, 2004 in the original principal amount of
      $6,585,630.10.

     

    “Mortgage”
means
      the mortgage between the Borrower and the Agent, in form and substance
      satisfactory to the Agent, relating to the Corporate Headquarters, as amended,
      supplemented or otherwise modified from time to time.

     

    “Mortgage
      Effective Date”
has
      the
      meaning specified in Section 7.1(t).

     

    “Multiemployer
      Plan”
means
      a
      multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the
      Borrower or any ERISA Affiliate has contributed within the past six years or
      with respect to which the Borrower or any ERISA Affiliate may incur any
      liability.

     

    “Notice
      of Borrowing”
has
      the
      meaning specified in Section 2.2(a).

     

    “Notice
      of Continuation”
has
      the
      meaning specified in Section 2.2(b).

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    “Notice
      of Conversion”
has
      the
      meaning specified in Section 2.2(c).

     

    “Obligations”
means
      and includes all loans (including the Loans), advances (including the Advances),
      debts, liabilities, obligations, covenants and duties owing by the Loan Parties
      to (i) the Agent or the Lenders of any kind or nature, present or future,
      whether or not evidenced by any note, guaranty or other instrument, which may
      arise under, out of, or in connection with, this Agreement, the Revolving Credit
      Notes, the other Loan Documents or any other agreement executed in connection
      herewith or therewith, or (ii) Citibank, N.A. or any of its Affiliates in
      connection with a transaction under any Hedging Agreement related to or in
      connection with any of the Obligations referred to in clause (i) above, now
      existing or hereafter arising. The term includes, without limitation, all
      interest (including interest accruing on or after an Insolvency Event, whether
      or not such interest constitutes an allowed claim), charges, expenses,
      commitment, facility, closing and collateral management fees, letter of credit
      fees, cash management and other fees, interest, charges, expenses, fees,
      attorneys’ fees and disbursements, and any other sum chargeable to any of the
      Loan Parties under this Agreement, the Revolving Credit Notes, the other Loan
      Documents, any Hedging Agreement or any other agreement executed in connection
      herewith or therewith.

     

    “OFAC”
has
      the
      meaning specified in Section 6.1(gg).

     

    “Other
      Taxes”
has
      the
      meaning specified in Section 4.8(b).

     

    “Participant”
has
      the
      meaning specified in Section 11.7(e).

     

    “Patriot
      Act”
has
      the
      meaning specified in Section 6.1(gg).

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation and any Person succeeding to the
      functions thereof.

     

    “Pension
      Plan”
means
      a
      pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA
      (other than a Multiemployer Plan) which the Borrower or any ERISA Affiliate
      sponsors or maintains, or to which it makes, is making, or is obligated to
      make
      contributions, or, in the case of a multiple employer plan (as described in
      Section 4064(a) of ERISA), has made contributions at any time during the
      immediately preceding five plan years.

     

    “Permitted
      Liens”
means
      such of the following as to which no enforcement, collection, execution, levy
      or
      foreclosure proceeding shall have been commenced and be continuing (unless
      such
      enforcement, collection, levy or foreclosure is being contested by the
      applicable Loan Party in good faith by appropriate proceedings diligently
      conducted and for which adequate reserves are being maintained in accordance
      with GAAP): (i) Liens for taxes, assessments and other governmental charges
      or levies or the claims or demands of landlords, carriers, warehousemen,
      mechanics, laborers, materialmen and other like Persons arising by operation
      of
      law in the ordinary course of business for sums which are not yet due and
      payable, (ii) deposits or pledges (other than Liens on Receivables of a
      Loan Party) to secure the payment of worker’s compensation, unemployment
      insurance or other social security benefits or obligations, public or statutory
      obligations, surety or appeal bonds, bid or performance bonds, or other
      obligations of a like nature incurred in the ordinary course of business,
      (iii) zoning restrictions, easements, encroachments, licenses, restrictions
      or covenants on the use of any Property which do not materially impair either
      the use of such Property in the operation of the business of the applicable
      Loan
      Party or the value of such Property, (iv) inchoate Liens arising under
      ERISA to secure current service pension liabilities as they are incurred under
      the provisions of employee benefit plans from time to time in effect,
      (v) rights of general application reserved to or vested in any Governmental
      Authority to control or regulate any Property, or to use any Property in a
      manner which does not materially impair the use of such Property for the
      purposes for which it is held by the applicable Loan Party, and (vi) Liens
      on
      Equipment leased for terms not exceeding three years to the Borrower and its
      Subsidiaries from equipment lessors so long as the aggregate obligations for
      principal and interest under such leases do not exceed $9,000,000, provided
      that the
      foregoing Liens under clauses (i) through (v) hereof do not secure liabilities
      in excess of $250,000 in the aggregate at any time, and provided,
      further
      that
      Permitted Liens shall not include any Lien securing
      Indebtedness.

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    “Person”
means
      any individual, sole proprietorship, partnership, limited liability company,
      joint venture, trust, unincorporated organization, joint stock company,
      association, corporation, institution, entity, party or government (including
      any division, agency or department thereof) or any other legal entity, whether
      acting in an individual, fiduciary or other capacity, and, as applicable, the
      successors, heirs and assigns of each.

     

    “Plan”
means
      any employee benefit plan, as defined in Section 3(3) of ERISA, maintained
      or
      contributed to by the Borrower or any ERISA Affiliate or with respect to which
      any of them may incur liability even if such plan is not covered by ERISA
      pursuant to Section 4(b)(4) thereof.

     

    “Pledge
      Agreement”
means
      the pledge agreement by the Borrower in favor of the Agent, substantially in
      the
      form of Exhibit C, as amended, supplemented or otherwise modified from time
      to time.

     

    The
      sign
“£”
means
      freely transferable lawful currency of the United Kingdom.

     

    “Prohibited
      Transaction”
has
      the
      meaning specified in Section 6.1(x)(v).

     

    “Property”
means
      any real property owned, leased or controlled by the Borrower or any Subsidiary
      of the Borrower, including, without limitation, the Corporate
      Headquarters.

     

    “Pro
      Rata Share”
of
      any
      amount means, with respect to any Lender, a fraction (expressed as a percentage)
      (i) at any time before the Expiration Date, the numerator of which is the
      Commitment of such Lender and the denominator of which is the aggregate amount
      of the Commitments of all the Lenders, and (ii) at any time on and after
      the Expiration Date, the numerator of which is the aggregate unpaid principal
      amount of the Loans made by such Lender and the denominator of which is the
      aggregate unpaid principal amount of all Loans at such time.

     

    “Qualification”
or
      “Qualified”
means,
      with respect to any report of independent public accountants covering Financial
      Statements, a material qualification to such report (i) resulting from a
      limitation on the scope of examination of such Financial Statements or the
      underlying data, (ii) as to the capability of the Borrower or any other
      Loan Party to continue operations as a going concern, or (iii) which could
      be eliminated by changes in Financial Statements or notes thereto covered by
      such report (such as by the creation of or increase in a reserve or a decrease
      in the carrying value of assets) and which, if so eliminated by the making
      of
      any such change and after giving effect thereto, would result in a Default
      or an
      Event of Default.

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    “Receivables”
means
      all present and future accounts, contracts, contract rights, promissory notes,
      chattel paper, tax refunds, rights to receive tax refunds, rights to receive
      payments under bonds and insurance policies (including, without limitation,
      claims under health care insurance policies), insurance proceeds, royalties,
      claims against third parties of every kind or nature, and rights to receive
      payments under letters of credit, together with all supporting obligations
      and
      all right, title, security and guaranties with respect to any of the foregoing,
      including any right of stoppage in transit.

     

    “Register”
has
      the
      meaning specified in Section 11.7(d).

     

    “Replacement
      Lender”
means
      a
      financial institution proposed by the Borrower in accordance with Section 2.9(d)
      that is satisfactory to the Agent in its sole discretion and which has agreed
      to
      acquire and assume all or a part of a Defaulting Lender’s Loans and Commitments
      under Section 2.9(d).

     

    “Replacement
      Notice”
has
      the
      meaning specified in Section 2.9(d).

     

    “Reportable
      Event”
means
      any of the events described in Section 4043 of ERISA and the regulations
      thereunder, other than a reportable event for which the thirty-day notice
      requirement to the PBGC has been waived.

     

    “Required
      Lenders”
means
      (i) before the Expiration Date, the Lenders holding more than fifty percent
      (50%) of the aggregate Commitments at such time, and (ii) on and after the
      Expiration Date, the Lenders holding more than fifty percent (50%) of the
      aggregate unpaid principal amount of the Loans at such time. 

     

    “Requirement
      of Law”
means
      (i) the Governing Documents, (ii) any law, treaty, rule, regulation,
      order or determination of an arbitrator, court or other Governmental Authority,
      or (iii) any franchise, license, lease, permit, certificate, authorization,
      qualification, easement, right of way, or other right or approval binding on
      a
      Loan Party or any of its property.

     

    “Responsible
      Officer”
means
      the President, the Chief Executive Officer, the Chief Financial Officer or
      the
      Chief Operating Officer of a Loan Party.

     

    “Revolving
      Credit Loans”
has
      the
      meaning specified in Section 2.1(a).

     

    “Revolving
      Credit Note”
has
      the
      meaning specified in Section 2.1(c).

     

    “Securities
      Account”
has
      the
      meaning specified in Section 8-501 of the Code.

     

    “Security
      Documents”
means
      Article III of this Agreement, the Lockbox Account Agreement, the Pledge
      Agreement, the Subsidiary Security Agreement, the Mortgage, any other Control
      Agreement and any other agreement delivered in connection herewith which
      purports to grant a Lien in favor of the Agent to secure all or any of the
      Obligations.

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    “Solvent”
means,
      when used with respect to any Person, that as of the date as to which such
      Person’s solvency is to be measured:

     

    (i)
        the
      fair
      saleable value of its assets is in excess of (A) the total amount of its
      liabilities (including contingent, subordinated, absolute, fixed, matured,
      unmatured, liquidated and unliquidated liabilities) and (B) the amount that
      will be required to pay the probable liability of such Person on its debts
      as
      such debts become absolute and matured;

     

    (ii)
        it
      has
      sufficient capital to conduct its business; and

     

    (iii)
        it
      is
      able to meet its debts as they mature.

     

    “Subsidiary”
means,
      as to any Person, a corporation or other entity in which that Person directly
      or
      indirectly owns or controls the shares of stock or other ownership interests
      having ordinary voting power to elect a majority of the board of directors
      or
      other governing body, or to appoint the majority of the managers of, such
      corporation or other entity.

     

    “Subsidiary
      Guaranty”
means
      the guaranty made by each Subsidiary of the Borrower in favor of the Agent,
      substantially in the form of Exhibit D, as amended, supplemented or
      otherwise modified from time to time.

     

    “Subsidiary
      Security Agreement”
means
      the security agreement made by each Subsidiary of the Borrower in favor of
      the
      Agent substantially in the form of Exhibit E, as amended, supplemented or
      otherwise modified from time to time.

     

    “Taxes”
has
      the
      meaning specified in Section 4.8(a).

     

    “Tax
      Transferee”
has
      the
      meaning specified in Section 4.8(f).

     

    “Termination
      Event”
means
      (i) a Reportable Event with respect to any Pension Plan or Multiemployer
      Plan; (ii) the withdrawal of the Borrower or any ERISA Affiliate from a
      Pension Plan during a plan year in which it was a “substantial employer” (as
      defined in Section 4001(a)(2) of ERISA); (iii) the providing of notice of
      intent to terminate a Pension Plan in a distress termination (as described
      in
      Section 4041(c) of ERISA); (iv) the institution by the PBGC of proceedings
      to terminate a Pension Plan or Multiemployer Plan; (v) any event or
      condition that is reasonably likely (A) to constitute grounds under Section
      4042 of ERISA for the termination of, or the appointment of a trustee to
      administer, any Pension Plan or Multiemployer Plan, or (B)  to result in
      termination of a Multiemployer Plan pursuant to Section 4041A of ERISA; or
      (vi) the partial or complete withdrawal, within the meaning of Sections
      4203 and 4205 of ERISA, of the Borrower or any ERISA Affiliate from a
      Multiemployer Plan.

     

    “Trigger
      Date”
has
      the
      meaning specified in Section 8.1.

     

    “Type”
means
      a
      Base Rate Advance or a LIBOR Rate Advance.

     

    “Wachovia
      Loan”
means
      collectively the extensions of credit to the Borrower pursuant to the Amended
      and Restated Revolving Credit and Term Loan Agreement dated October 29, 1999,
      as
      amended and restated, by and among Wachovia Bank, National Association, Bank
      of
      America, N.A., and Brown Brothers Harriman & Co. and the
      Borrower.

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              1.2   	
              Accounting
                Terms and Determinations

            

    

     

    Unless
      otherwise defined or specified herein, all accounting terms used in this
      Agreement shall be construed in accordance with GAAP, applied on a basis
      consistent in all material respects with the Financial Statements delivered
      to
      the Agent on or before the Closing Date. All accounting determinations for
      purposes of determining compliance with Article VIII shall be made in accordance
      with GAAP as in effect on the Closing Date and applied on a basis consistent
      in
      all material respects with the audited Financial Statements delivered to the
      Agent on or before the Closing Date. The Financial Statements required to be
      delivered hereunder from and after the Closing Date, and all financial records,
      shall be maintained in accordance with GAAP. If GAAP shall change from the
      basis
      used in preparing the audited Financial Statements delivered to the Agent on
      or
      before the Closing Date, the Compliance Certificate required to be delivered
      pursuant to Section 7.1(k)(iv) shall include calculations setting forth the
      adjustments necessary to demonstrate how the Borrower is in compliance with
      the
      Financial Covenant based upon GAAP as in effect on the Closing
      Date.

     

    
      	SECTION
              1.3   	
              Other
                Terms; Headings

            

    

     

    Unless
      otherwise defined herein, terms used herein that are defined in the Uniform
      Commercial Code, from time to time in effect in the State of New York (the
      “Code”),
      shall
      have the meanings given in the Code. An Event of Default shall “continue” or be
“continuing” unless and until such Event of Default has been waived or cured
      within any grace period specified therefor under Section 9.1. The headings
      and
      the Table of Contents are for convenience only and shall not affect the meaning
      or construction of any provision of this Agreement. Whenever the context may
      require, any pronoun shall include the corresponding masculine, feminine and
      neuter forms. The words “include”, “includes” and “including” shall be deemed to
      be followed by the phrase “without limitation”. The word “will” shall be
      construed to have the same meaning and effect as the word “shall”. Unless the
      context requires otherwise (i) any definition of or reference to any
      agreement, instrument or other document herein or in any other Loan Document
      shall be construed as referring to such agreement, instrument or other document
      as from time to time amended, supplemented or otherwise modified (subject to
      any
      restrictions on such amendments, supplements or modifications set forth herein
      or in any other Loan Document), (ii) any reference herein to any Person
      shall be construed to include such Person’s successors and assigns,
      (iii) the words “herein”, “hereof” and “hereunder”, and words of similar
      import, shall be construed to refer to this Agreement in its entirety and not
      to
      any particular provision hereof, (iv) all references herein to Articles,
      Sections, Exhibits and Schedules shall be construed to refer to Articles and
      Sections of, and Exhibits and Schedules to, this Agreement, and (v) the
      words “asset” and “property” shall be construed to have the same meaning and
      effect and to refer to any and all tangible and intangible assets and
      properties, including cash, securities, accounts and contract
      rights.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II.

    THE
      CREDIT FACILITIES

     

    
      	SECTION
              2.1   	
              The
                Revolving Credit Loans

            

    

     

    (a)
        Each
      Lender agrees, subject to Section 2.4(a) and the other terms and conditions
      of this Agreement, to make revolving credit loans (the “Revolving
      Credit Loans”)
      to the
      Borrower, from time to time from the Closing Date to but excluding the
      Expiration Date, at the Borrower’s request to the Agent, in an aggregate
      principal amount for all Lenders at any one time outstanding which, when
      combined with the aggregate undrawn amount of all unexpired Letters of Credit,
      does not exceed (i) ninety percent (90%) of Eligible Receivables of the
      Loan Parties (but in the case of the Eligible Receivables of each Loan Party
      other than the Borrower, only to the extent that such Eligible Receivables
      do
      not exceed the aggregate Investment by the Borrower in such Loan Party, as
      determined by the Agent in its sole discretion) plus
      (ii) sixty-five percent (65%) of the Fair Market Value of the Corporate
      Headquarters, as such product shall reduce on a quarterly basis, effective
      the
      last day of each calendar quarter commencing March 31, 2007, over ten years
      on a
      straight line basis, commencing March 31, 2007 (such sum, the “Borrowing
      Base”);
      provided,
      however,
      that in
      no event shall the aggregate amount of the Revolving Credit Loans and the
      Letters of Credit outstanding at any time exceed the Maximum Amount of the
      Revolving Facility.

     

    (b)
        The
      Agent, at any time in the exercise of its sole discretion based upon its
      reasonable credit judgment, may (i) establish and increase or decrease
      reserves against Eligible Receivables, (ii) reduce the advance rates
      against Eligible Receivables and/or the Fair Market Value of the Corporate
      Headquarters, or thereafter increase such advance rates to any level equal
      to or
      below the advance rates in effect on the Closing Date, and (iii) impose
      additional restrictions (or eliminate the same) to the standards of eligibility
      set forth in the definition of “Eligible Receivables” or accelerate the
      reduction set out in Section 2.1(a)(ii).

     

    (c)
        The
      Revolving Credit Loans made by each Lender shall be evidenced by a promissory
      note payable to the order of such Lender, substantially in the form of
      Exhibit A (as amended, supplemented or otherwise modified from time to
      time, a “Revolving
      Credit Note”),
      executed by the Borrower and delivered to the Agent on the Closing Date. The
      Revolving Credit Note payable to the order of a Lender shall be in a stated
      maximum principal amount equal to such Lender’s Pro Rata Share of the Maximum
      Amount of the Revolving Facility.

     

    (d)
        The
      Revolving Credit Loans shall be payable in full, with all interest accrued
      thereon, on the Expiration Date. The Borrower may borrow, repay and reborrow
      Revolving Credit Loans, in whole or in part, in accordance with the terms
      hereof.

     

    
      	SECTION
              2.2   	
              Procedure
                for Borrowing; Notices of Borrowing; Notices of Continuation; Notices
                of
                Conversion

            

    

     

    (a)
        Each
      borrowing of Revolving Credit Loans (each, a “Borrowing”)
      shall
      be made on notice, given not later than 12:00 Noon (New York time) on the third
      Business Day prior to the date of the proposed Borrowing in the case of a LIBOR
      Rate Advance, and not later than 12:00 Noon (New York time) on the date of
      the
      proposed Borrowing in the case of a Base Rate Advance, by the Borrower to the
      Agent. Each such notice of a Borrowing shall be by telephone, confirmed
      immediately in writing (by telecopier or otherwise as permitted hereunder),
      substantially in the form of Exhibit H (a “Notice
      of Borrowing”),
      specifying therein the requested (i) date of such Borrowing, (ii) Type
      of Advance comprising such Borrowing, (iii) aggregate principal amount of
      such Borrowing, (iv) Interest Period, in the case of a LIBOR Rate Advance,
      and (v) Borrower’s Account.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (b)
        With
      respect to any Borrowing consisting of a LIBOR Rate Advance, the Borrower may,
      subject to the provisions of Section 2.2(d) and so long as all the conditions
      set forth in Article V have been fulfilled, elect to maintain such Borrowing
      or
      any portion thereof as a LIBOR Rate Advance by selecting a new Interest Period
      for such Borrowing, which new Interest Period shall commence on the last day
      of
      the Interest Period then ending. Each selection of a new Interest Period (a
      “Continuation”)
      shall
      be made by notice given not later than 12:00 Noon (New York time) on the third
      Business Day prior to the date of any such Continuation by the Borrower to
      the
      Agent. Such notice by the Borrower of a Continuation shall be by telephone,
      confirmed immediately in writing (by telecopier or otherwise as permitted
      hereunder), substantially in the form of Exhibit I (a “Notice
      of Continuation”),
      specifying whether the Advance subject to the requested Continuation comprises
      part (or all) of the Revolving Credit Loans and the requested (i) date of
      such Continuation, (ii) Interest Period and (iii) aggregate amount of
      the Advance subject to such Continuation, which shall comply with all
      limitations on Loans hereunder. Upon the Agent’s receipt of a Notice of
      Continuation, the Agent shall promptly notify each Lender thereof. Unless,
      on or
      before 12:00 Noon (New York time) of the third Business Day prior to the
      expiration of an Interest Period, the Agent shall have received a Notice of
      Continuation from the Borrower for the entire Borrowing consisting of the LIBOR
      Rate Advance outstanding during such Interest Period, any amount of such Advance
      comprising such Borrowing remaining outstanding at the end of such Interest
      Period (or any unpaid portion of such Advance not covered by a timely Notice
      of
      Continuation) shall, upon the expiration of such Interest Period, be Converted
      to a Base Rate Advance.

     

    (c)
        The
      Borrower may on any Business Day upon notice (each such notice, a “Notice
      of Conversion”)
      given
      by the Borrower to the Agent, and subject to the provisions of Section 2.2(d),
      Convert the entire amount of or a portion of an Advance of one Type into an
      Advance of another Type; provided,

however,
      that
      any Conversion of a LIBOR Rate Advance into a Base Rate Advance shall be made
      on, and only on, the last day of an Interest Period for such LIBOR Rate Advance.
      Each such Notice of Conversion shall be given not later than 12:00 Noon (New
      York time) on the Business Day prior to the date of any proposed Conversion
      into
      a Base Rate Advance and on the third Business Day prior to the date of any
      proposed Conversion into a LIBOR Rate Advance. Subject to the restrictions
      specified above, each Notice of Conversion shall be by telephone, confirmed
      immediately in writing (by telecopier or otherwise as permitted hereunder),
      substantially in the form of Exhibit J, specifying (i) the requested
      date of such Conversion, (ii) the Type of Advance to be Converted,
      (iii) the requested Interest Period, in the case of a Conversion into a
      LIBOR Rate Advance, and (iv) the amount of such Advance to be Converted and
      whether such amount comprises part (or all) of the Revolving Credit Loans.
      Upon
      the Agent’s receipt of a Notice of Conversion, the Agent shall promptly notify
      each Lender thereof. Each Conversion shall be in an aggregate amount not less
      than $1,000,000 or an integral multiple of $100,000 in excess
      thereof.

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    (d)
        Anything
      in subsection (b) or (c) above to the contrary notwithstanding,

     

    (i)
        if,
      at
      least one Business Day before the date of any requested LIBOR Rate Advance,
      the
      introduction of or any change in or in the interpretation of any law or
      regulation makes it unlawful, or any central bank or other Governmental
      Authority asserts that it is unlawful, for any Lender or any of its Affiliates
      to perform its obligations hereunder to make a LIBOR Rate Advance or to fund
      or
      maintain a LIBOR Rate Advance hereunder (including in the case of a Continuation
      or a Conversion), such Lender shall promptly give written notice of such
      circumstance to the Agent, and the Agent shall promptly deliver such notice
      to
      the Borrower, and the right of the Borrower to select a LIBOR Rate Advance
      for
      such Borrowing or any subsequent Borrowing (including a Continuation or a
      Conversion) shall be suspended until the circumstances causing such suspension
      no longer exist, and any Advance comprising such requested Borrowing shall
      be a
      Base Rate Advance;

     

    (ii)
        if,
      at
      least one Business Day before the first day of any Interest Period, the Agent
      is
      unable to determine the LIBOR Rate for LIBOR Rate Advances comprising any
      requested Borrowing, Continuation or Conversion, the Agent shall promptly give
      written notice of such circumstance to the Borrower, and the right of the
      Borrower to select or maintain LIBOR Rate Advances for such Borrowing or any
      subsequent Borrowing shall be suspended until the Agent shall notify the
      Borrower that the circumstances causing such suspension no longer exist, and
      any
      Advance comprising such Borrowing shall be a Base Rate Advance;

     

    (iii)
        if
      any
      Lender shall, at least one Business Day before the date of any requested
      Borrowing or Continuation of, or Conversion into, a LIBOR Rate Advance, notify
      the Agent, which notice the Agent shall promptly deliver to the Borrower, that
      the LIBOR Rate for Advances comprising such Borrowing, Continuation or
      Conversion will not adequately reflect the cost to such Lender of making or
      funding Advances for such Borrowing, the right of the Borrower to select LIBOR
      Rate Advances shall be suspended until such Lender shall notify the Borrower
      that the circumstances causing such suspension no longer exist, and any Advance
      comprising such Borrowing shall be a Base Rate Advance;

     

    (iv)
        there
      shall not be outstanding at any time more than five Borrowings which consist
      of
      LIBOR Rate Advances;

     

    (v)
        each
      Borrowing which consists of LIBOR Rate Advances shall be in an amount equal
      to
      $1,000,000 or a whole multiple of $100,000 in excess thereof; and

     

    (vi)
        if
      a
      Default has occurred and is continuing, no LIBOR Rate Advances may be borrowed
      or continued as such and no Base Rate Advance may be Converted into a LIBOR
      Rate
      Advance.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    (e)
        Each
      Notice of Borrowing, Notice of Continuation and Notice of Conversion shall
      be
      irrevocable and binding on the Borrower. The Borrower agrees to indemnify each
      Lender against any loss, cost or expense incurred by such Lender as a result
      of
      (i) default by the Borrower in making a Borrowing of, Conversion into or
      Continuation of a LIBOR Rate Advance after the Borrower has given notice
      requesting the same, (ii) default by the Borrower in payment when due of
      the principal amount of or interest on any LIBOR Rate Advance or (iii) the
      making of a payment or prepayment of a LIBOR Rate Advance on a day which is
      not
      the last day of an Interest Period with respect thereto, including, without
      limitation, any loss (including loss of anticipated profits), cost or expense
      incurred by reason of the liquidation or reemployment of deposits or other
      funds
      acquired by such Lender to fund such Advance.

     

    (f)
        (i)Promptly
      after its receipt of a Notice of Borrowing under Section 2.2(a), the Agent
      shall notify the Lenders in writing (by telecopier or otherwise as permitted
      hereunder) of the requested Borrowing. Each Lender shall make the amount of
      such
      Lender’s Pro Rata Share of the requested Borrowing available to the Agent in
      same day funds, for the account of the Borrower, at the Agent’s Payment Account
      prior to 2:00 P.M. (New York time), on the Borrowing Date requested by the
      Borrower. The proceeds of such Borrowing will then be made available to the
      Borrower by the Agent wire transferring to the Borrower’s Account the aggregate
      of the amounts made available to the Agent by the Lenders, and in like funds
      as
      received by the Agent by 2:00 P.M. (New York time), on the requested Borrowing
      Date.

     

    (ii) Unless
      the Agent receives contrary written notice prior to the date of any proposed
      Borrowing, the Agent is entitled to assume that each Lender will make available
      its Pro Rata Share of such Borrowing and, in reliance upon that assumption,
      but
      without any obligation to do so, may advance such Pro Rata Share on behalf
      of
      such Lender. If and to the extent that such Lender shall not have made such
      amount available to the Agent, but the Agent has made such amount available
      to
      the Borrower, such Lender and the Borrower jointly and severally agree to pay
      and repay the Agent forthwith on demand such corresponding amount and to pay
      interest thereon, for each day from the date such amount is transferred by
      the
      Agent to the Borrower’s Account until the date such amount is paid or repaid to
      the Agent, at (A) in the case of the Borrower, the interest rate applicable
      at such time to such Loan and (B) in the case of each Lender, for the
      period from the date such amount was wire transferred to the Borrower’s Account
      to (and including) three days after demand therefor by the Agent to such Lender,
      at the Federal Funds Rate and, following such third day, at the interest rate
      applicable at such time to such Loan together with all costs and expenses
      incurred by the Agent in connection therewith. If a Lender shall pay to the
      Agent any or all of such amount, such amount so paid shall constitute a
      Revolving Credit Loan by such Lender to the Borrower for purposes of this
      Agreement.

     

    
      	SECTION
              2.3   	
              Application
                of Proceeds

            

    

     

    .The
      proceeds of the Revolving Credit Loans shall be used by the Borrower for its
      general working capital purposes and for expenses incurred by the Borrower
      in
      connection herewith. 

     

    
      	SECTION
              2.4   	
              Maximum
                Amount of the Revolving Facility; Mandatory Prepayments; Optional
                Prepayments

            

    

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    (a)
        In
      no
      event shall the sum of the aggregate outstanding principal balances of the
      Revolving Credit Loans and the aggregate undrawn amount of all unexpired Letters
      of Credit exceed the lesser of (i) the Borrowing Base and (ii) the
      Maximum Amount of the Revolving Facility.

     

    (b)
        In
      addition to any prepayment required as a result of an Event of Default
      hereunder, the Loans shall be subject to mandatory prepayment as
      follows:

     

    (i)
        immediately
      upon discovery by or notice to the Borrower that any of the lending limits
      set
      forth in Section 2.1(a) or Section 2.4(a) has been exceeded, the Borrower shall
      pay the Agent an amount sufficient to reduce the outstanding balances of the
      Loans, Collateralize outstanding Letters of Credit, or any combination thereof,
      to the applicable maximum allowed amount, and such amount shall become due
      and
      payable by the Borrower without the necessity of a demand by the Agent or any
      Lender; and

     

    (ii)
        the
      entire outstanding principal amount of the Loans, together with all accrued
      and
      unpaid interest thereon and all fees, costs and expenses payable by the Borrower
      hereunder, shall become due and payable on the Expiration Date.

     

    (c)
        The
      Borrower may, at any time and from time to time, prepay the Revolving Credit
      Loan, in whole or in part (subject, in the case of the prepayment in full of
      all
      the Loans and the termination of the Commitments, to the additional requirements
      of Section 4.5), upon at least two Business Days’ irrevocable notice by the
      Borrower to the Agent in the case of Base Rate Advances, and four Business
      Days’
irrevocable notice by the Borrower to the Agent in the case of LIBOR Rate
      Advances, specifying the date and amount of prepayment, provided
      that
      LIBOR Rate Advances may not be optionally prepaid other than on the last day
      of
      the Interest Period with respect thereto without the Borrower indemnifying
      the
      Lenders against losses, costs and expenses resulting from such prepayment as
      provided in Section 2.2(e)(iii). If such notice is given, the Borrower
      shall make such prepayment, and the payment amount specified in such notice
      shall be due and payable, on the date specified therein accompanied by the
      amount of accrued and unpaid interest thereon. 

     

    
      	SECTION
              2.5   	
              Maintenance
                of Loan Account; Statements of
                Account

            

    

     

    .
      The
      Agent shall maintain an account on its books in the name of the Borrower (the
      “Loan
      Account”)
      in
      which the Borrower will be charged with all Loans and Advances made by each
      Lender to the Borrower or for the Borrower’s account, including the Revolving
      Credit Loans, interest, fees, expenses and any other Obligations. The Loan
      Account will be credited with all amounts received by the Agent from the
      Borrower or for the Borrower’s account, including, as set forth below, all
      amounts received from the Lockbox Bank. The Agent shall send the Borrower a
      monthly statement reflecting the activity in the Loan Account. Each such
      statement shall be an account stated and shall be final, conclusive and binding
      on the Borrower, absent manifest error.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              2.6   	
              Collection
                of Receivables

            

    

     

    (a)
        Within
      ninety days after the date of this Agreement (the “Lockbox
      Effective Date”),
      the
      Borrower shall open and maintain, pursuant to the Lockbox Account Agreement,
      (i)
      a lockbox (the “Lockbox”),
      and
      (ii) a blocked account in the name of the Borrower, subject to the security
      interest of the Agent (the “Lockbox
      Deposit Account”),
      into
      which all checks, drafts and other documents and instruments received in the
      Lockbox evidencing remittances in payment by accounts debtors to the Borrower
      (collectively, “Items
      of Payment”)
      shall
      be deposited. Items of Payment remitted to the Lockbox Deposit Account will
      be
      processed in accordance with the Lockbox Account Agreement. Commencing on the
      Lockbox Effective Date, the Borrower shall instruct its account debtors to
      remit
      all Items of Payment to the Lockbox.

     

    (b)
        Notwithstanding
      the obligations of the Borrower under subsection (a) to instruct its account
      debtors to remit all Items of Payment to the Lockbox on and after the Lockbox
      Effective Date, if the Borrower receives any Items of Payment or any other
      Collections of any kind after such date, the Borrower shall deposit, within
      one
      Business Day of its receipt thereof, such Items of Payment and all other
      Collections and other cash, checks or other funds from time to time received
      by
      the Borrower from any source, into the Lockbox Deposit Account. The Borrower
      will, at all times on and after the Lockbox Effective Date, (i) not commingle
      any Items of Payment received by it with any of its other funds or property,
      but
      instead segregate such Items of Payment from its other assets and hold them
      in
      trust and for the account and as the property of the Agent until depositing
      them
      in the Lockbox Deposit Account, and (ii) endorse any Item of Payment received
      by
      it for deposit into the Lockbox Deposit Account. 

     

    (c)
        The
      Agent
      will credit all Items of Payment and all other Collections deposited into the
      Lockbox Deposit Account to the Loan Account, conditional upon final collection;
      credit will be given only for cleared funds received prior to 2:00 p.m. (New
      York time) by the Agent at the Agent’s Payment Account, or such other deposit
      account as the Agent may designate. In all cases, the Loan Account will be
      credited only with the net amounts actually received in payment of
      Receivables.

     

    (d)
        The
      Borrower agrees that the Agent will direct the Lockbox Bank to wire transfer
      on
      a daily basis to the Agent’s Payment Account all amounts from time to time on
      deposit in the Lockbox Deposit Account (up to the aggregate then outstanding
      amount of the Obligations), and the Agent shall apply any and all such amounts
      received by it from the Lockbox Bank to such of the Obligations then due and
      owing and in such order as it may elect in its sole and absolute discretion,
      except as otherwise provided in Section 2.6(e) and (f).

     

    (e)
        So
      long
      as no Default or Event of Default shall have occurred and be continuing, the
      Agent shall (i) apply any and all amounts received by it from the Lockbox
      Account as contemplated by Section 2.6(d), after the Obligations then due and
      owing have been paid in full, on a daily basis to prepay outstanding Borrowings
      to the extent that such Borrowings consist of Base Rate Advances, until such
      Base Rate Advances are repaid in full, and (ii) wire transfer all additional
      amounts, after the Obligations then due and owing have been paid in full and
      there are no longer any Base Rate Advances outstanding, to the Borrower’s
      Account; provided,
      however,
      that if
      the Borrower so advises the Agent prior to 10:00 a.m. (New York time) on any
      Business Day, the Borrower may direct the Agent to apply any such additional
      amounts to the prepayment of one or more Borrowings consisting of LIBOR Rate
      Advances. On such date, the LIBOR Rate Advances selected by the Borrower shall
      automatically convert to Base Rate Advances, whether or not the Borrower has
      complied with and notwithstanding the provisions of Section 2.2(c), and the
      Borrower shall indemnify the Lenders against any loss (including loss of
      anticipated profits), cost or expense incurred by reason of the liquidation
      or
      reemployment of deposits or other funds acquired by the Lenders to fund such
      converted LIBOR Rate Advances.

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    (f)
        If
      a
      Default or Event of Default shall have occurred and be continuing, the Agent
      shall apply any and all amounts received by it from the Lockbox Account as
      contemplated by Section 2.6(d) to such of the Obligations, whether or not then
      due and owing, and in such order as the Agent may elect in its sole and absolute
      discretion. 

     

    
      	SECTION
              2.7   	
              Term

            

    

     

    The
      term
      of this Agreement shall be for a period from the Closing Date to but not
      including the Expiration Date. Notwithstanding the foregoing, the Borrower
      shall
      have no right to terminate this Agreement at any time that any principal of
      or
      interest on any of the Loans is outstanding, except upon prepayment of all
      Obligations and the satisfaction of all other conditions set forth in the Loan
      Documents with respect thereto.

     

    
      	SECTION
              2.8   	
              Payment
                Procedures

            

    

     

    (a)
        The
      Borrower hereby authorizes the Agent to charge the Loan Account, and any other
      account that the Borrower maintains with CitiCapital or an Affiliate thereof,
      with the amount of all principal, interest, fees, expenses and other payments
      to
      be made hereunder and under the other Loan Documents. The Agent may, but shall
      not be obligated to, discharge the Borrower’s payment obligations hereunder by
      so charging the Loan Account.

     

    (b)
        Each
      payment by the Borrower on account of principal, interest, fees or expenses
      hereunder shall be made to the Agent for the benefit of the Agent and the
      Lenders according to their respective rights thereto. All payments to be made
      by
      the Borrower hereunder and under the Revolving Credit Notes, whether on account
      of principal, interest, fees or otherwise, shall be made without setoff,
      deduction or counterclaim and shall be made prior to 2:00 p.m. (New York time)
      on the due date thereof to the Agent, for the account of the Lenders according
      to their Pro Rata Shares (except as expressly otherwise provided), at the
      Agent’s Payment Account in immediately available funds. Except for payments
      which are expressly provided to be made for the account of the Agent only,
      the
      Agent shall distribute all payments to the Lenders on the Business Day following
      receipt in like funds as received. Notwithstanding anything to the contrary
      contained in this Agreement, if a Lender exercises its right of setoff under
      Section 11.3 or otherwise, any amounts so recovered shall promptly be shared
      by
      such Lender with the other Lenders according to their respective Pro Rata
      Shares.

     

    (c)
        Whenever
      any payment to be made hereunder shall be stated to be due on a day that is
      not
      a Business Day, the payment may be made on the next succeeding Business Day
      (except as specified in clause (ii) of the definition of Interest Period) and
      such extension of time shall be included in the computation of the amount of
      interest due hereunder.

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              2.9   	
              Defaulting
                Lenders

            

    

     

    (a)
        A
      Lender
      that (i) fails to pay the Agent its Pro Rata Share of any Loans made available
      by the Agent on such Lender’s behalf, or (ii) fails to pay any other amount
      owing by it to the Agent hereunder, is a defaulting lender (a “Defaulting
      Lender”).
      The
      Agent may recover all such amounts owing by a Defaulting Lender on
      demand.

     

    (b)
        The
      failure of any Lender to fund its Pro Rata Share of any Borrowing shall not
      relieve any other Lender of its obligation to fund its Pro Rata Share of such
      Borrowing. Conversely, no Lender shall be responsible for the failure of another
      Lender to fund such other Lender’s Pro Rata Share of a Borrowing.

     

    (c)
        The
      Agent
      shall not be obligated to transfer to a Defaulting Lender any payments made
      by
      the Borrower to the Agent for the Defaulting Lender’s benefit; nor shall a
      Defaulting Lender be entitled to the sharing of any payments hereunder. Amounts
      payable to a Defaulting Lender shall instead be paid to or retained by the
      Agent. The Agent may hold and, in its discretion, re-lend to the Borrower the
      amount of all such payments received or retained by it for the account of such
      Defaulting Lender. For purposes of voting or consenting to matters with respect
      to the Loan Documents and determining Pro Rata Shares, such Defaulting Lender
      shall be deemed not to be a Lender and such Lender’s Commitment or Loans made by
      it, as applicable, for such purposes shall be deemed to be zero. This Section
      shall remain effective with respect to such Lender until (i) the Defaulting
      Lender has paid all amounts required to be paid to the Agent hereunder, or
      (ii) the Required Lenders, the Agent and the Borrower shall have waived
      such Lender’s default in writing. The operation of this Section shall not be
      construed to increase or otherwise affect the Commitment of any Lender or to
      relieve or excuse the performance by the Borrower of its duties and obligations
      hereunder.

     

    (d)
        The
      Borrower may, by notice (a “Replacement
      Notice”)
      in
      writing to the Agent and a Defaulting Lender, (i) request such Defaulting
      Lender to cooperate with the Borrower in obtaining a Replacement Lender for
      such
      Defaulting Lender; (ii) request the non-Defaulting Lenders to acquire and
      assume all or a portion of such Defaulting Lender’s Loans and Commitment, but
      none of such Lenders shall be obligated to do so; or (iii) propose a
      Replacement Lender. If a Replacement Lender shall be accepted by the Agent
      or
      one or more of the non-Defaulting Lenders shall agree to acquire and assume
      all
      or part of a Defaulting Lender’s Loans and Commitment, then such Defaulting
      Lender shall assign, in accordance with Section 11.7, all or part, as the
      case may be, of its Loans, Commitment, Revolving Credit Note and other rights
      and obligations under this Agreement and all other Loan Documents to such
      Replacement Lender or non-Defaulting Lenders, as the case may be, in exchange
      for payment of the principal amount of the Loans so assigned and all interest
      and fees accrued on such amount so assigned; provided,
      however,
      that
      (i) such assignment shall be on the terms and conditions set forth in
      Section 11.7, and (ii) prior to any such assignment, the Borrower
      shall have (A) paid to such Defaulting Lender all amounts properly demanded
      and theretofore unpaid by the Borrower under the second sentence of
      Section 2.2(e) (less costs and expenses incurred by the Borrower directly
      as a result of the actions of the Defaulting Lender in violation of this
      Agreement), and (B) paid to the Agent all amounts properly demanded and
      theretofore unpaid by the Borrower under Article IV. If the Replacement
      Lender and the non-Defaulting Lenders shall only be willing to acquire less
      than
      all of a Defaulting Lender’s outstanding Loans and Commitment, the Commitment of
      such Defaulting Lender shall not terminate, but shall be reduced
      proportionately, and such Defaulting Lender shall continue to be a “Lender”
hereunder with a reduced Commitment and Pro Rata Share. Upon the effective
      date
      of such assignment, the Borrower shall issue replacement Revolving Credit Notes
      to such Replacement Lender, non-Defaulting Lenders and Defaulting Lender, as
      the
      case may be, in exchange for the Revolving Credit Note of such Defaulting Lender
      theretofore outstanding, and such Replacement Lender shall, if not already
      a
      Lender, become a “Lender” for all purposes under this Agreement and the other
      Loan Documents.

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              2.10   	
              Letters
                of Credit

            

    

     

    (a)
        The
      Agent, upon the request of the Borrower, shall cause Citibank, N.A. or another
      bank acceptable to the Agent to issue for the account of the Borrower Letters
      of
      Credit of a tenor and containing terms acceptable to the Lenders and the issuer
      of such Letter of Credit, in a maximum aggregate face amount outstanding at
      any
      time not to exceed One Million Dollars ($1,000,000), provided
      that
      (i) the Agent shall have no obligation to cause to be issued any Letter of
      Credit with an expiration date after the Expiration Date, and (ii) if a
      Letter of Credit is issued with an expiration date after the Expiration Date,
      the Borrower shall Collateralize such Letter of Credit in full immediately.
      The
      term of any Letter of Credit shall not exceed 360 days from the date of
      issuance, subject to renewal in accordance with the terms thereof, but in no
      event to a date beyond the Expiration Date. All Letters of Credit shall be
      subject to the limitations set forth in Section 2.4, and a sum equal to the
      aggregate amount of all outstanding Letters of Credit shall be included in
      calculating outstanding amounts for purposes of determining compliance with
      Section 2.4. 

     

    (b)
        Immediately
      upon issuance or amendment of any Letter of Credit in accordance with the
      procedures set forth in this Section 2.10, each Lender shall be deemed to have
      irrevocably and unconditionally purchased and received from the Agent, without
      recourse or warranty, an undivided interest and participation, to the extent
      of
      such Lender’s Pro Rata Share, of the liability and obligations under and with
      respect to such Letter of Credit and the Letter of Credit Agreement (including,
      without limitation, all obligations of the Borrower with respect thereto, other
      than amounts owing to the Agent pursuant to the first sentence of
      Section 4.4(b)) and any security therefor or guaranty pertaining
      thereto.

     

    (c)
        Whenever
      the Borrower desires the issuance of a Letter of Credit, the Borrower shall
      deliver to the Agent a written notice no later than 12:00 Noon (New York time)
      at least ten Business Days (or such shorter period as may be agreed to by the
      Agent) in advance of the proposed date of issuance of a letter of credit request
      substantially in the form attached as Exhibit N (a “Letter
      of Credit Request”).
      The
      transmittal by the Borrower of each Letter of Credit Request shall be deemed
      to
      be a representation and warranty by the Borrower that the Letter of Credit
      may
      be issued in accordance with and will not violate any of the requirements of
      this Section 2.10. Prior to the date of issuance of each Letter of Credit,
      the
      Borrower shall provide to the Agent a precise description of the documents
      and
      the text of any certificate to be presented by the beneficiary of such Letter
      of
      Credit which, if presented by such beneficiary on or prior to the expiration
      date of such Letter of Credit, would require the issuing bank to make payment
      under such Letter of Credit. The Agent, in its reasonable judgment, may require
      changes in any such documents and certificates. No Letter of Credit shall
      require payment against a conforming draft to be made thereunder prior to the
      second Business Day after the date on which such draft is
      presented.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (d)
        Upon
      any
      request for a drawing under any Letter of Credit by the beneficiary thereof,
      (i) the Borrower shall be deemed to have timely given a Notice of Borrowing
      to the Agent for a Revolving Credit Loan on the date on which such drawing
      is
      honored in an amount equal to the amount of such drawing, and (ii) without
      regard to satisfaction of the applicable conditions specified in Section 5.2
      and
      the other terms and conditions of borrowings contained herein, the Lenders
      shall, on the date of such drawing, make Revolving Credit Loans comprised of
      Base Rate Advances in the amount of such drawing, the proceeds of which shall
      be
      applied directly by the Agent to reimburse the issuing bank for the amount
      of
      such drawing or payment. If for any reason, proceeds of Advances are not
      received by the Agent on such date in an amount equal to the amount of such
      drawing, the Borrower shall reimburse the Agent, on the Business Day immediately
      following the date of such drawing, in an amount in same day funds equal to
      the
      excess of the amount of such drawing over the amount of such Loans, if any,
      which are so received, plus
      accrued
      interest on such amount at the rate set forth in Section 4.1(a) or 4.2, as
      applicable.

     

    (e)
        As
      among
      the Borrower, the Agent and each Lender, the Borrower assumes all risks of
      the
      acts and omissions of the Agent and the issuing bank (other than for the gross
      negligence or willful misconduct of the Agent or such issuing bank) or misuse
      of
      the Letters of Credit by the respective beneficiaries of such Letters of Credit.
      In furtherance and not in limitation of the foregoing, neither the Agent nor
      any
      of the Lenders shall be responsible (i) for the accuracy, genuineness or
      legal effects of any document submitted by any party in connection with the
      application for and issuance of or any drawing honored under such Letters of
      Credit even if it should in fact prove to be in any or all respects invalid,
      inaccurate, fraudulent or forged, (ii) for the validity or sufficiency of
      any instrument transferring or assigning or purporting to transfer or assign
      any
      such Letter of Credit, or the rights or benefits thereunder or proceeds thereof,
      in whole or in part, which may prove to be invalid or ineffective for any
      reason, (iii) for errors, omissions, interruptions or delays in
      transmission or delivery of any messages, by mail, cable, telegraph, telex,
      telecopy or otherwise, whether or not they be in cipher, (iv) for errors in
      interpretation of technical terms, (v) for any loss or delay in the
      transmission or otherwise of any document required to make a drawing under
      any
      such Letter of Credit, or of the proceeds thereof, (vi) for the
      misapplication by the beneficiary of any such Letter of Credit of the proceeds
      of any drawing honored under such Letter of Credit, and (vii) for any
      consequences arising from causes beyond the control of the issuing bank, the
      Agent or the Lenders, provided
      that the
      foregoing shall not release the Agent or the issuing bank for any liability
      for
      its gross negligence or willful misconduct. None of the above shall affect,
      impair, or prevent the vesting of any of the Agent’s rights or powers hereunder.
      No action taken or omitted to be taken by the Agent under or in connection
      with
      any Letter of Credit, if taken or omitted in the absence of gross negligence
      or
      willful misconduct of the Agent, shall create any liability of the Agent to
      the
      Borrower or any Lender.

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    (f)
        The
      obligations of the Borrower to reimburse the Agent for drawings honored under
      the Letters of Credit and the obligations of the Lenders under this Section
      2.10
      shall be unconditional and irrevocable and shall be paid strictly in accordance
      with the terms of this Agreement under all circumstances including, without
      limitation, the following circumstances: (i) any lack of validity or
      enforceability of this Agreement, any Letter of Credit, any Letter of Credit
      Agreement or any other agreement or instrument relating thereto (the
“Letter
      of Credit Related Documents”);
      (ii) the existence of any claim, setoff, defense or other right which the
      Borrower or any Affiliate of the Borrower may have at any time against a
      beneficiary or any transferee of any Letter of Credit (or any Persons or
      entities for whom any such beneficiary or transferee may be acting), the Agent,
      any Lender or any other Person, whether in connection with this Agreement,
      the
      other Loan Documents, the transactions contemplated herein or therein or any
      unrelated transaction; (iii) any draft, demand, certificate or other
      documents presented under any Letter of Credit proving to be forged, fraudulent
      or invalid in any respect or any statement therein being untrue or inaccurate
      in
      any respect; (iv) the surrender or impairment of any security for the
      performance or observance of any of the terms of any of the Loan Documents;
      (v) failure of any drawing under a Letter of Credit or any non-application
      or misapplication by the beneficiary of the proceeds of any drawing; or
      (vi) that a Default or Event of Default shall have occurred and be
      continuing.

     

    
      	SECTION
              2.11   	
              Sharing
                of Payments, Etc

            

    

     

    If
      any
      Lender shall obtain at any time any payment (whether voluntary, involuntary,
      through the exercise of any right of setoff, or otherwise) on account of
      Obligations payable to such Lender hereunder at such time in excess of its
      ratable share (according to the proportion of (i) the amount of such
      Obligations, to (ii) the aggregate amount of the Obligations payable to all
      Lenders hereunder at such time), such Lender shall forthwith purchase from
      the
      other Lenders such participations in the Obligations payable to them as shall
      be
      necessary to cause such purchasing Lender to share the excess payment ratably
      with each of them; provided,
      however,
      that,
      if all or any portion of such excess payment is thereafter recovered from such
      purchasing Lender, such purchase from each other Lender shall be rescinded
      and
      such other Lender shall repay to the purchasing Lender the purchase price to
      the
      extent of such other Lender’s ratable share (according to the proportion of (i)
      the purchase price paid to such Lender, to (ii) the aggregate purchase price
      paid to all Lenders) of such recovery together with an amount equal to such
      Lender’s ratable share (according to the proportion of (i) the amount of such
      other Lender’s required repayment, to (ii) the total amount so recovered from
      the purchasing Lender) of any interest or other amount paid or payable by the
      purchasing Lender in respect of the total amount so recovered. The Borrower
      agrees that any Lender so purchasing a participation from another Lender
      pursuant to this Section 2.11 may, to the fullest extent permitted by law,
      exercise all its rights of payment (including the right of setoff) with respect
      to such participation as fully as if such Lender were the direct creditor of
      the
      Borrower in the amount of such participation.

     

    ARTICLE
      III.

    SECURITY

     

    
      	SECTION
              3.1   	
              General

            

    

     

    To
      secure
      the prompt and complete payment and performance when due (whether at stated
      maturity, by acceleration or otherwise) of all of the Obligations, the Borrower
      hereby grants to the Agent for the ratable benefit of the Lenders a lien on
      and
      security interest in all of its right, title and interest in and to all the
      Collateral including, without limitation, its Receivables, Equipment, General
      Intangibles, Inventory, Investment Property, and all other personal property,
      and all the Property, in each case wherever located, whether now owned or
      hereafter acquired, and all additions and accessions thereto and substitutions
      and replacements therefor and improvements thereon, and all proceeds (whether
      in
      the form of cash or other property) and products thereof including, without
      limitation, all proceeds of insurance covering the same and all tort claims
      in
      connection therewith. As further security for the Obligations, and to provide
      other assurances to the Agent and the Lenders, the Agent and the Lenders shall
      receive, among other things:

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    (a)
        the
      Lockbox Account Agreement and any other Control Agreement;

     

    (b)
        the
      Mortgage;

     

    (c)
        the
      Pledge Agreement; and

     

    (d)
        the
      Subsidiary Security Agreement.

     

    This
      Agreement shall constitute a security agreement for purposes of the
      Code.

     

    
      	SECTION
              3.2   	
              Further
                Security

            

    

     

    .
      The
      Borrower also grants to the Agent for the ratable benefit of the Lenders, as
      further security for all of the Obligations, a security interest in all of
      its
      right, title and interest in and to all property of the Borrower in the
      possession of or deposited with or in the custody of the Agent or any Affiliate
      of the Agent or any representative, agent or correspondent of the Agent and
      in
      all present and future “deposit accounts” as that term is defined in the Code.
      For purposes of this Agreement, any property in which the Agent or any such
      Affiliate has any security or title retention interest shall be deemed to be
      in
      the custody of the Agent or of such Affiliate.

     

    
      	SECTION
              3.3   	
              Recourse
                to Security

            

    

     

    .
      Recourse to security shall not be required for any Obligation hereunder, and
      the
      Borrower hereby waives any requirement that the Agent or the Lenders exhaust
      any
      right or take any action against any of the Collateral before proceeding to
      enforce the Obligations against the Borrower.

     

    
      	SECTION
              3.4   	
              Special
                Provisions Relating to
                Inventory

            

    

     

    (a)
        .
      The
      security interest in the Inventory granted to the Agent hereunder shall continue
      through all steps of manufacture and sale and attach without further act to
      raw
      materials, work in process, finished goods, returned goods, documents of title
      and warehouse receipts, and to proceeds resulting from the sale or other
      disposition of such Inventory. If sales of Inventory are made for cash, the
      Borrower shall immediately deliver to the Agent the checks or other forms of
      payment which it receives, together with any necessary endorsements. The
      Borrower will perform any and all steps that the Agent may request to perfect
      the Agent’s security interests in the Borrower’s Inventory.

     

    
      	SECTION
              3.5   	
              Special
                Provisions Relating to Receivables

            

    

     

    (a)
        Invoices,
      Etc.
      On the
      Agent’s request therefor, the Borrower shall furnish to the Agent copies of
      invoices to customers. The Borrower shall deliver to the Agent (i) the
      originals of all letters of credit, notes, and instruments in its favor,
      (ii) such endorsements or assignments related thereto as the Agent may
      reasonably request, and (iii) the written consent of the issuer of any
      letter of credit to the assignment of the proceeds of such letter of credit
      by
      the Borrower to the Agent.

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

     

    (b)
        Records,
      Collections, Etc.
      The
      Borrower shall promptly report all customer credits to the Agent, except
      customer credits granted in the ordinary course of the Borrower’s business. The
      Borrower shall not, without the Agent’s prior written consent, settle or adjust
      any dispute or claim, or grant any discount (except ordinary trade discounts),
      credit or allowance, except in the ordinary course of its business. Upon the
      occurrence and during the continuance of an Event of Default or at any time
      that
      the Agent believes that fraud has occurred, the Agent may (i) settle or
      adjust disputes or claims directly with account debtors for amounts and upon
      terms which it considers advisable, and (ii) notify account debtors on the
      Borrower’s Receivables that such Receivables have been assigned to the Agent,
      and that payments in respect thereof shall be made directly to the Agent and
      no
      longer to the Lockbox. Where the Borrower receives collateral of any kind or
      nature by reason of transactions between itself and its customers or account
      debtors, the Borrower will hold the same on the Agent’s behalf, subject to the
      Agent’s instructions, and as property forming part of the Borrower’s
      Receivables. Where the Borrower sells services to a customer which also sells
      goods or services to it or which may have other claims against it, the Borrower
      will so advise the Agent immediately to permit the Agent to establish a reserve
      therefor. The Borrower hereby irrevocably authorizes and appoints the Agent,
      or
      any Person the Agent may designate, as its attorney-in-fact, at the Borrower’s
      sole cost and expense, to exercise, if an Event of Default has occurred and
      is
      continuing or the Agent believes that fraud has occurred, all of the following
      powers, which being coupled with an interest, shall be irrevocable until all
      of
      the Obligations have been indefeasibly paid and satisfied in full in cash:
      (A) to receive, take, endorse, sign, assign and deliver, all in the name of
      the Agent or the Borrower, any and all checks, notes, drafts, and other
      documents or instruments relating to the Collateral; (B) to receive, open
      and dispose of all mail addressed to the Borrower and to notify postal
      authorities to change the address for delivery thereof to such address as the
      Agent may designate; and (C) to take or bring, in the name of the Agent or
      the Borrower, all steps, actions, suits or proceedings deemed by the Agent
      necessary or desirable to enforce or effect collection of the Borrower’s
      Receivables or file and sign the Borrower’s name on a proof of claim in
      bankruptcy or similar document against any obligor of the Borrower. The Borrower
      shall maintain a record of its electronic chattel paper that identifies the
      Agent as the assignee thereof and otherwise in a manner such that the Agent
      has
      control over such chattel paper for purposes of the Code.

     

    
      	SECTION
              3.6   	
              Special
                Provisions Relating to Equipment

            

    

     

    (a)
        Repair.
      The
      Borrower shall keep all of its Equipment in a satisfactory state of repair
      and
      satisfactory operating condition in accordance with industry standards, ordinary
      wear and tear excepted, and will, consistent with the exercise of its reasonable
      business judgment, make all repairs and replacements when and where necessary
      and practical, will not waste or destroy it or any part thereof, and will not
      be
      negligent in the care or use thereof. The Borrower shall repair and maintain
      all
      of its Equipment in accordance with industry practices in a manner sufficient
      to
      continue the operation of its business as heretofore conducted. The Borrower
      will use or cause its Equipment to be used in accordance with law and the
      manufacturer’s instructions. The Borrower shall keep its Equipment separate
      from, and will not annex or affix any of its Equipment to, any part of any
      Property or any other realty.

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    (b)
        Disposal.
      Where
      the Borrower is permitted to dispose of any of its Equipment under this
      Agreement or by any consent thereto hereafter given by the Agent, the Borrower
      shall do so at arm’s length, in good faith and by obtaining the maximum amount
      of recovery practicable therefor and without impairing the operating integrity
      or value of its remaining Equipment.

     

    
      	SECTION
              3.7   	
              Continuation
                of Liens, Etc

            

    

     

    .
      The
      Borrower shall defend the Collateral against all claims and demands of all
      Persons at any time claiming any interest therein, other than claims relating
      to
      Liens permitted by the Loan Documents. The Borrower agrees to comply with the
      requirements of all state and federal laws to grant to the Agent valid and
      perfected first priority security interests in the Collateral and shall obtain
      a
      Control Agreement from any securities intermediary or depository bank in
      possession of any of the Borrower’s Investment Property or deposit accounts. The
      Agent is hereby authorized by the Borrower to sign the Borrower’s name on any
      document or instrument as may be necessary or desirable to establish and
      maintain the Liens covering the Collateral and the priority and continued
      perfection thereof or file any financing or continuation statements or similar
      documents or instruments covering the Collateral whether or not the Borrower’s
      signature appears thereon and to describe the Collateral on any financing
      statement as “all assets” or “all personal property” or otherwise use a
      supergeneric collateral description therefor. The Borrower agrees, from time
      to
      time, at the Agent’s request, to file notices of Liens, financing statements,
      similar documents or instruments, and amendments, renewals and continuations
      thereof, and cooperate with the Agent’s representatives, in connection with the
      continued perfection (and the priority status thereof) and protection of the
      Collateral and the Agent’s Liens thereon. The Borrower agrees that the Agent may
      file a carbon, photographic or other reproduction of this Agreement (or any
      financing statement related hereto) as a financing statement.

     

    
      	SECTION
              3.8   	
              Power
                of Attorney

            

    

     

    .
      In
      addition to all of the powers granted to the Agent in this Article III, the
      Borrower hereby appoints and constitutes the Agent as the Borrower’s
      attorney-in-fact to sign the Borrower’s name on any of the documents,
      instruments and other items described in Section 3.7, to make any filings under
      the Uniform Commercial Code covering any of the Collateral, to request at any
      time from customers indebted on its Receivables verification of information
      concerning such Receivables and the amount owing thereon (provided that any
      verification prior to an Event of Default shall not contain the Agent’s name),
      and, upon the occurrence and during the continuance of an Event of Default,
      (i) to convey any item of Collateral to any purchaser thereof, and
      (ii) to make any payment or take any act necessary or desirable to protect
      or preserve any Collateral. The Agent’s authority hereunder shall include,
      without limitation, the authority to execute and give receipt for any
      certificate of ownership or any document, to transfer title to any item of
      Collateral and to take any other actions arising from or incident to the powers
      granted to the Agent under this Agreement. This power of attorney is coupled
      with an interest and is irrevocable.

     

    ARTICLE
      IV.

    INTEREST,
      FEES AND EXPENSES

     

    
      	SECTION
              4.1   	
              Interest

            

    

     

    The
      Borrower shall pay to the Agent for the ratable benefit of the Lenders, interest
      on the Advances, payable monthly in arrears on the first Business Day of each
      month, commencing with the month immediately following the Closing Date, and
      on
      the Expiration Date, at the following rates per annum:

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    (a)
        Base
      Rate Advances.
      If such
      Advance is a Base Rate Advance, at a fluctuating rate which is equal to the
      Base
      Rate then in effect, each change in such fluctuating rate to take effect
      simultaneously with the corresponding change in the Base Rate. 

     

    (b)
        LIBOR
      Rate Advances.
      If such
      Advance is a LIBOR Rate Advance, at a rate which is equal at all times during
      the Interest Period for such LIBOR Rate Advance to (i) the LIBOR Rate,
plus
      (ii) one and three-quarters percent (1.75%).

     

    
      	SECTION
              4.2   	
              Interest
                and Letter of Credit Fees After Event of
                Default

            

    

     

    From
      the
      date of occurrence of any Event of Default until the earlier of the date upon
      which (i) all Obligations shall have been paid and satisfied in full and
      all Letters of Credit have expired or been terminated, or (ii) such Event
      of Default shall have been waived, interest on the Loans shall be payable on
      demand at a rate per annum
      equal to
      the rate that would be otherwise applicable thereto under Section 4.1
plus
      up to an
      additional two percent (2%) and the letter of credit fee pursuant to Section
      4.4(b) shall be payable at the rate that would otherwise apply under Section
      4.4(b) plus
      up to an
      additional two percent (2%). 

     

    
      	SECTION
              4.3   	
              Closing
                Fee

            

    

     

    .
      On the
      Closing Date, the Borrower shall pay to the Agent a fully earned, non-refundable
      closing fee in the amount of $175,000.

     

    
      	SECTION
              4.4   	
              Unused
                Line Fee; Letter of Credit Fees

            

    

     

    (a)
        The
      Borrower shall pay to the Agent for the ratable benefit of the Lenders on the
      first Business Day of each month, commencing with the month immediately
      following the Closing Date, and on the Expiration Date, in arrears, an unused
      line fee equal to three-eighths of one percent (.375%) per annum
      of the
      difference, if positive, between (i) the Maximum Amount of the Revolving
      Facility, and (ii) the average daily aggregate outstanding amount of the
      Revolving Credit Loans plus
      the
      average daily aggregate undrawn amount of all unexpired Letters of Credit during
      the immediately preceding month or portion thereof.

     

    (b)
        The
      Borrower shall promptly pay to the Agent for its own account all fees charged
      to
      the Agent by any issuer of a Letter of Credit which relate directly to the
      opening or amending of or drawing under Letters of Credit. In addition, the
      Borrower shall pay to the Agent for the ratable benefit of the Lenders on the
      first Business Day of each month, commencing with the month immediately
      following the Closing Date, and on the Expiration Date, in arrears, a fee equal
      to one and three-quarters percent (1.75%) per annum
      on the
      daily average of the amount of the Letters of Credit outstanding during the
      preceding month or during the interim period ending on the Expiration Date,
      as
      the case may be.

     

    
      	SECTION
              4.5   	
              Early
                Termination Fee

            

    

     

    The
      Borrower shall have the right to terminate this Agreement at any time on 120
      days’ prior written notice by the Borrower to the Agent, provided
      that, on
      the date of such termination, all Obligations, including all amounts required
      for the Collateralization of Letters of Credit and interest, fees and expenses
      payable to the date of such termination, shall be paid in full. If (a) the
      Borrower gives such notice to terminate, or (b)(i) the Loans are paid in
      full or substantially in full, and (ii) the Commitments are terminated,
      including as a result of the Agent terminating the Commitments in accordance
      with Section 9.2(b), the Borrower shall pay a fee to the Agent for the ratable
      benefit of the Lenders in an amount equal to (A) $125,000 if such
      termination or payment occurs prior to the second anniversary of the Closing
      Date, or (B) $0.00 if such termination or payment occurs on or after the
      second anniversary of the Closing Date; provided
      that no
      fee otherwise payable pursuant to this Section 4.5 shall be payable if the
      Borrower replaces the credit facility evidenced by this Agreement with a credit
      facility from CitiCapital or an Affiliate thereof.

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              4.6   	
              Calculations

            

    

     

    .
      All
      calculations of interest and fees hereunder shall be made by the Agent on the
      basis of a year of 360 days for the actual number of days elapsed in the period
      for which such interest or fees are payable. Each determination by the Agent
      of
      an interest rate, fee or other payment hereunder shall be conclusive and binding
      for all purposes, absent manifest error.

     

    
      	SECTION
              4.7   	
              Indemnification
                in Certain Events

            

    

     

    .
      If,
      after the Closing Date, (i) any change in or in the interpretation of any
      law or regulation is introduced including, without limitation, with respect
      to
      reserve requirements, applicable to any Lender or any other banking or financial
      institution from which any Lender borrows funds or obtains credit, (ii) any
      Lender complies with any future guideline or request from any central bank
      or
      other Governmental Authority, or (iii) any Lender determines that the
      adoption of any applicable law, rule or regulation regarding capital adequacy,
      or any change therein, or any change in the interpretation or administration
      thereof by any Governmental Authority, central bank or comparable agency charged
      with the interpretation or administration thereof has or would have the effect
      described below, or any Lender complies with any request or directive regarding
      capital adequacy (whether or not having the force of law) of any such authority,
      central bank or comparable agency, and in the case of any event set forth in
      this clause (iii), such adoption, change or compliance has or would have
      the direct or indirect effect of reducing the rate of return on such Lender’s
      capital as a consequence of its obligations hereunder to a level below that
      which such Lender could have achieved but for such adoption, change or
      compliance (taking into consideration such Lender’s policies as the case may be
      with respect to capital adequacy) by an amount deemed by such Lender to be
      material, and any of the foregoing events described in clauses (i), (ii) and
      (iii) increases the cost to such Lender of funding or maintaining the Loans,
      or
      reduces the amount receivable in respect thereof by such Lender, then the
      Borrower shall, upon demand by the Agent, pay to the Agent for the benefit
      of
      such Lender additional amounts sufficient to indemnify such Lender against
      such
      increase in cost or reduction in amount receivable.

     

    
      	SECTION
              4.8   	
              Taxes.
                

            

    

     

    (a)
        Any
      and
      all payments by the Borrower hereunder or under the Revolving Credit Notes
      shall
      be made free and clear of and without deduction for any and all present or
      future taxes, levies, imposts, deductions, charges or withholdings and
      penalties, interest and all other liabilities with respect thereto
      (“Taxes”),
      including any Taxes imposed under Section 7701(l) of the Internal Revenue Code,
      excluding in the case of the Agent or any Lender, taxes imposed on its net
      income (including, without limitation, any taxes imposed on branch profits)
      and
      franchise taxes imposed on the Agent or any Lender by any applicable
      jurisdiction. If the Borrower shall be required by law to deduct any Taxes
      from
      or in respect of any sum payable hereunder or under any Loan to or for the
      benefit of the Agent or any Lender, (A) the sum payable shall be increased
      as may be necessary so that after making all required deductions of Taxes
      (including deductions of Taxes applicable to additional sums payable under
      this
      Section 4.8) the Agent or such Lender receives an amount equal to the sum
      it would have received had no such deductions been made, (B) the Borrower
      shall make such deductions, and (C) the Borrower shall pay the full amount
      so deducted to the relevant taxation authority or other authority in accordance
      with applicable law.

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    (b)
        In
      addition, the Borrower agrees to pay any present or future stamp, documentary,
      excise, privilege, intangible or similar taxes or levies that arise at any
      time
      or from time to time (i) from any payment made under any and all Loan
      Documents, or (ii) from the execution or delivery by the Borrower of, or
      from the filing or recording or maintenance of, or otherwise with respect to
      the
      exercise by the Agent of its rights under, any and all Loan Documents
      (hereinafter referred to as “Other
      Taxes”).

     

    (c)
        The
      Borrower indemnifies the Agent and each Lender for the full amount of
      (i) Taxes imposed on or with respect to amounts payable hereunder,
      (ii) Other Taxes, and (iii) any Taxes (other than Taxes imposed by any
      jurisdiction on amounts payable under this Section 4.8) paid by the Agent and
      any liability (including penalties, interest and expenses) arising solely
      therefrom or with respect thereto.

     

    (d)
        Within
      thirty days after the date of any payment of Taxes or Other Taxes, the Borrower
      will, upon request, furnish to the Agent the original or a certified copy of
      a
      receipt evidencing payment thereof. 

     

    (e)
        Without
      prejudice to the survival of any other agreement of the Borrower hereunder,
      the
      agreements and obligations of the Borrower contained in this Section 4.8
      shall survive the indefeasible payment in full of the Obligations.

     

    (f)
        If
      a
      Person organized under the laws of a jurisdiction outside of the United States
      acquires an interest in this Agreement or any Loan (each, a “Tax
      Transferee”),
      on or
      prior to the effective date of such acquisition, it will deliver to the Borrower
      and the Agent (i) two valid, duly completed copies of IRS Form W-8BEN or
      W-8EC1 or any applicable successor form, as the case may be, and any other
      required form, certifying in each case that such Tax Transferee is entitled
      to
      receive payments under this Agreement and the Revolving Credit Notes payable
      to
      it without deduction or withholding of United States federal income tax or
      with
      such withholding imposed at a reduced rate; and (ii) a valid, duly
      completed IRS Form W-8 or W-9 or any applicable successor form, as the case
      may
      be, to establish an exemption from United States backup withholding tax. Each
      Tax Transferee that delivers to the Borrower and the Agent a Form W-8BEN or
      W-8EC1, and Form W-8 or W-9 and any other required form, pursuant to the
      preceding sentence, further undertakes to deliver two further copies of such
      Form W-8BEN or W-8EC1 and Form W-8 or W-9, or applicable successor forms, or
      other manner of required certification, as the case may be, on or before the
      date that any such form expires or becomes obsolete or otherwise is required
      to
      be resubmitted as a condition to obtaining an exemption from a required
      withholding of United States federal income tax or entitlement to having such
      withholding imposed at a reduced rate or after the occurrence of any event
      requiring a change in the most recent form previously delivered by it to the
      Borrower and the Agent, and such extensions or renewals thereof as may
      reasonably be requested by the Borrower and the Agent, certifying (A) in
      the case of a Form W-8BEN or W-8EC1, that such Tax Transferee is entitled to
      receive payments under this Agreement without deduction or withholding of any
      United States federal income taxes or with such withholding imposed at a reduced
      rate, unless any change in treaty, law or regulation or official interpretation
      thereof has occurred after the effective date of such acquisition or change
      and
      prior to the date on which any such delivery would otherwise be required that
      renders all such forms inapplicable or that would prevent such Tax Transferee
      from duly completing and delivering any such form with respect to it, and such
      Tax Transferee advises the Borrower and the Agent that it is not capable of
      receiving payments (I) without any deduction or withholding of United
      States federal income tax or (II) with such withholding at a reduced rate,
      as the case may be, or (B) in the case of a Form W-8 or W-9, establishing
      an exemption from United States backup withholding tax.

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V.

    CONDITIONS
      OF LENDING

     

    
      	SECTION
              5.1   	
              Conditions
                to Initial Loan or Letter of
                Credit

            

    

     

    The
      obligation of the Lenders to make the initial Loans or of the Agent to cause
      to
      be issued the initial Letter of Credit is subject to the satisfaction of the
      following conditions prior to or concurrent with such initial Loan or Letter
      of
      Credit:

     

    (a)
        the
      Agent
      shall have received the following, each dated the date of the initial Loan
      or
      Letter of Credit or as of an earlier date acceptable to the Agent, in form
      and
      substance satisfactory to the Agent and its counsel:

     

    (i)
        the
      Revolving Credit Notes, each duly executed by the Borrower;

     

    (ii)
        the
      Pledge Agreement, duly executed by the Borrower and acknowledged by each of
      the
      Borrower’s Subsidiaries, together with (A) the original certificates, if
      any, representing the shares of stock or other equity interests pledged
      thereunder and undated transfer powers therefor, executed in blank, (B) a
      securities account control agreement for any securities credited to a securities
      account, duly executed by the Borrower and the securities intermediary in whose
      account such securities are maintained, (C) evidence satisfactory to the
      Agent that the issuer of any uncertificated securities has agreed it will comply
      with instructions originated by the Agent without further consent of the
      registered owner thereof, and (D) the original promissory notes pledged
      thereunder and undated note powers therefor, executed in blank;

     

    (iii)
        the
      Subsidiary Guaranty, duly executed by each Subsidiary of the Borrower party
      thereto;

     

    (iv)
        the
      Subsidiary Security Agreement, duly executed by each Subsidiary of the Borrower
      party thereto;

     

    (v)
        acknowledgment
      copies of Uniform Commercial Code financing statements (naming the Agent as
      secured party and the Loan Parties as debtors and containing a description
      of
      the applicable Collateral) and duly authorized release or termination
      statements, duly filed (or an authorization from all required Persons to file
      release or termination statements) in all jurisdictions that the Agent deems
      necessary or desirable to perfect and protect the Liens created hereunder and
      under the Security Documents; 

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    (vi)
        completed
      requests for information, dated on or before the date of the initial Loan or
      Letter of Credit, listing all effective financing statements filed in the
      jurisdictions referred to in clause (v) above and in all other
      jurisdictions that the Agent deems necessary or desirable to confirm the
      priority of the Liens created hereunder and under the Security Documents, that
      name each of the Loan Parties as debtor, together with copies of such financing
      statements;

     

    (vii)
        a
      completed perfection certificate, substantially in the form of Exhibit M,
      signed by a Responsible Officer of each Loan Party;

     

    (viii)
        the
      Contribution Agreement, duly executed by each Loan Party;

     

    (ix)
        a
      solvency certificate of the Chief Financial Officer of each of the Loan Parties
      other than Hooper Distribution Services, LLC, for which the Manager thereof
      shall execute such certificate, in the form of Exhibit L;

     

    (x)
        a
      Borrowing Base Certificate, duly executed by the Borrower’s Chief Financial
      Officer;

     

    (xi)
        (A) the
      audited Financial Statements for the fiscal year ended December 31, 2005,
      certified by the Auditors, and unaudited Financial Statements for the
      eight-month period ended August 31, 2006, certified by the Borrower’s Chief
      Financial Officer, and (B) a certificate executed by the Borrower’s Chief
      Financial Officer in the form of Exhibit O, certifying that since
      December 31, 2005, no change, event, occurrence or development or event
      involving a prospective change in the business, prospects, operations, results
      of operations, assets, liabilities or condition (financial or otherwise) of
      a
      Loan Party has occurred which has had or could reasonably be expected to have
      a
      Material Adverse Effect, and that all information provided by or on behalf
      of
      the Loan Parties to the Agent hereunder or in connection herewith is true and
      correct in all respects;

     

    (xii)
        an
      opinion of counsel for each Loan Party covering such matters incident to the
      transactions contemplated by this Agreement as the Agent may reasonably require,
      which such counsel is hereby requested by the Borrower on behalf of all the
      Loan
      Parties to provide;

     

    (xiii)
        certified
      copies of all policies of insurance required by this Agreement and the other
      Loan Documents, together with loss payee endorsements for all such policies
      naming the Agent as lender loss payee and an additional
      insured;

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    (xiv)
        copies
      of
      the Governing Documents of each Loan Party and a copy of the resolutions of
      the
      Board of Directors (or similar evidence of authorization) of each Loan Party
      authorizing the execution, delivery and performance of this Agreement, the
      other
      Loan Documents to which such Loan Party is or is to be a party, and the
      transactions contemplated hereby and thereby, attached to which is a certificate
      of the Secretary or an Assistant Secretary of such Loan Party certifying
      (A) that such copies of the Governing Documents and resolutions (or similar
      evidence of authorization) relating to such Loan Party are true, complete and
      accurate copies thereof, have not been amended or modified since the date of
      such certificate and are in full force and effect, (B) the incumbency,
      names and true signatures of the officers of such Loan Party authorized to
      sign
      the Loan Documents to which it is a party, and (C) that attached thereto is
      a list of all persons authorized to execute and deliver Notices of Borrowing,
      Notices of Continuation and Notices of Conversion on behalf of the
      Borrower;

     

    (xv)
        a
      certified copy of a certificate of the Secretary of State of the state of
      incorporation of each Loan Party, dated within two days of the Closing Date,
      listing the certificate of incorporation of such Loan Party and each amendment
      thereto on file in such official’s office and certifying that (A) such
      amendments are the only amendments to such certificate of incorporation on
      file
      in that office, (B) such Loan Party has paid all franchise taxes to the
      date of such certificate, and (C) such Loan Party is in good standing in
      that jurisdiction;

     

    (xvi)
        a
      good
      standing certificate from the Secretary of State of each state in which each
      Loan Party is qualified as a foreign corporation, each dated within ten days
      of
      the Closing Date;

     

    (xvii)
        a
      letter
      or electronic advice, including e-mail, from the Borrower to the Auditors and
      acknowledged by the Auditors authorizing the Agent to discuss the financial
      condition of the Loan Parties with the Auditors and their personnel and
      directing the Auditors to cooperate with the Agent with respect
      thereto;

     

    (xviii)
        a
      consent
      to the assignment to the Agent of the proceeds of each letter of credit, if
      any,
      issued in favor of the Borrower, duly executed by the issuer
      thereof;

     

    (xix)
        evidence
      that the Borrower maintains a record of its electronic chattel paper, if any,
      that identifies the Agent as the assignee thereof and otherwise in a manner
      such
      that the Agent has control over such chattel paper, if any, for purposes of
      the
      Code; and

     

    (xx)
        such
      other agreements, instruments, documents and evidence as the Agent deems
      necessary in its sole and absolute discretion in connection with the
      transactions contemplated hereby.

     

    (b)
        There
      shall be no pending or, to the knowledge of the Borrower after due inquiry,
      threatened litigation, proceeding, inquiry or other action (i) seeking an
      injunction or other restraining order, damages or other relief with respect
      to
      the transactions contemplated by this Agreement or the other Loan Documents,
      or
      (ii) which affects or could affect the business, prospects, operations,
      assets, liabilities or condition (financial or otherwise) of any Loan Party,
      except, in the case of clause (ii), where such litigation, proceeding,
      inquiry or other action could not reasonably be expected to have a Material
      Adverse Effect.

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

     

    (c)
        The
      Borrower shall have paid (i) all reasonable fees and expenses of the Agent
      in connection with the negotiation, preparation, execution and delivery of
      the
      Loan Documents (including, without limitation, all of the Agent’s examination,
      audit, appraisal and travel expenses and the fees and expenses of counsel to
      the
      Agent), and (ii) the closing fee payable under Section 4.3 and all other
      fees referred to in this Agreement that are required to be paid on the Closing
      Date.

     

    (d)
        All
      financing and termination statements under the Code specified in Section
      5.1(a)(v) shall have been filed or authorized to be filed, and (ii) all
      consents or authorizations specified in Schedule 6.1(f) shall have been
      obtained.

     

    (e)
        No
      change, occurrence, event or development or event involving a prospective change
      that could reasonably be expected to have a Material Adverse Effect shall have
      occurred and be continuing.

     

    (f)
        The
      Agent
      and its counsel shall have performed (i) a review satisfactory to the Agent
      of all of the Material Contracts and other assets (including, without
      limitation, leases of operating facilities) of each Loan Party, the financial
      condition of each Loan Party, including all of its tax, litigation,
      environmental and other potential contingent liabilities, the corporate or
      limited liability company, as the case may be, and capital structure of each
      Loan Party and the cash management and management information systems of the
      Borrower and each other Loan Party, (ii) a pre-closing audit and collateral
      review, and (iii) reviews and investigations of such other matters as the
      Agent and its counsel deem appropriate, in each case with results satisfactory
      to the Agent.

     

    (g)
        The
      Loan
      Parties shall be in compliance with all Requirements of Law (including, without
      limitation, those relating to income, unemployment and Social Security taxes,
      those set out in ERISA and those relating to Hazardous Materials, whether set
      out in Environmental Laws or otherwise) and Material Contracts, other than
      such
      noncompliance that could not reasonably be expected to have a Material Adverse
      Effect.

     

    (h)
        The
      Liens
      in favor of the Agent shall have been duly perfected and shall constitute first
      priority Liens, and the Collateral shall be free and clear of all Liens other
      than Liens in favor of the Agent and Permitted Liens.

     

    (i)
        After
      giving effect to all Revolving Credit Loans to be made and all Letters of Credit
      to be issued on the Closing Date, the difference
      between
      (i) the lesser
      of
      (A) the Borrowing Base, and (B) the Maximum Amount of the Revolving
      Facility, and (ii) the sum
      of
      (A) the aggregate outstanding amount of such Revolving Credit Loans and
      (B) the aggregate face amount of such Letters of Credit, shall exceed
      $17,500,000. 

     

    (j)
        The
      Agent
      shall have completed all due diligence, including, without limitation, a field
      examination of the Loan Parties’ assets, liabilities, financial statements, and
      books and records, and the Agent shall be satisfied with the results of such
      due
      diligence. 

    
      
        
        

      

      
        -40-

        
          

        

      

      
        
        

      

    

     

    (k)
        The
      Borrower shall have prepared and delivered to the Agent and the Lenders a
      schedule showing the Borrower’s ownership of Subsidiaries and a list of the
      Borrower’s Affiliates, which schedule may be in substantially the form of
      Schedule 6.1(g).

     

    (l)
        The
      Agent
      and its counsel shall be satisfied with all of the Loan Documents and the terms
      of the credit facility evidenced by this Agreement. 

     

    
      	SECTION
              5.2   	
              Conditions
                Precedent to Each Loan and Each Letter of
                Credit

            

    

     

    .
      The
      obligation of the Lenders to make any Loan or the Agent to cause to be issued
      any Letter of Credit is subject to the satisfaction of the following conditions
      precedent:

     

    (a)
        all
      representations and warranties contained in this Agreement and the other Loan
      Documents shall be true and correct on and as of the date of such Loan or Letter
      of Credit as if then made, other than representations and warranties that
      expressly relate solely to an earlier date, in which case they shall have been
      true and correct as of such earlier date;

     

    (b)
        no
      Default or Event of Default shall have occurred and be continuing or would
      result from the making of the requested Loan or the issuance of the requested
      Letter of Credit as of the date of such request; and

     

    (c)
        no
      Material Adverse Effect shall have occurred.

     

    ARTICLE
      VI.

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      6.1   Representations
      and Warranties of the Borrower; Reliance by the Lenders

     

    The
      Borrower represents and warrants as follows:

     

    (a)
        Organization,
      Good Standing and Qualification.
      The
      Borrower (i) is a corporation duly organized, validly existing and in good
      standing under the laws of the state of its organization, (ii) has the
      corporate power and authority to own its properties and assets and to transact
      the businesses in which it presently is, or proposes to be, engaged, and
      (iii) is duly qualified, authorized to do business and in good standing in
      each jurisdiction where it presently is, or proposes to be, engaged in business,
      except to the extent that the failure so to qualify or to be in good standing
      could not reasonably be expected to have a Material Adverse Effect. Schedule
      6.1(a) specifies the jurisdiction in which the Borrower is organized and all
      jurisdictions in which the Borrower is qualified to do business as a foreign
      corporation as of the Closing Date.

     

    (b)
        Locations
      of Offices, Records and Collateral.
      The
      address of the principal place of business and chief executive office of the
      Borrower is, and the books and records of the Borrower and all of its chattel
      paper and records of its Receivables are maintained exclusively in the
      possession of the Borrower at, the address of the Borrower specified in Schedule
      6.1(b). There is no location at which the Borrower maintains any Collateral
      other than the locations specified for it in Schedule 6.1(b). Schedule 6.1(b)
      specifies all Property of the Borrower and its Subsidiaries, and indicates
      whether each location specified therein is leased or owned by the
      Borrower.

     

    
      
        
        

      

      
        -41-

        
          

        

      

      
        
        

      

    

     

    (c)
        Authority.
      It has
      the requisite corporate power and authority to execute, deliver and perform
      its
      obligations under each of the Loan Documents to which it is a party. All
      corporate action necessary for the execution, delivery and performance by it
      of
      the Loan Documents to which it is a party (including the consent of shareholders
      where required) has been taken.

     

    (d)
        Enforceability.
      This
      Agreement is and, when executed and delivered, each other Loan Document to
      which
      it is a party, will be, the legal, valid and binding obligation of the Borrower
      enforceable in accordance with its terms, except as enforceability may be
      limited by (i) bankruptcy, insolvency or similar laws affecting creditors’
rights generally, and (ii) general principles of equity.

     

    (e)
        No
      Conflict.
      The
      execution, delivery and performance by it of each Loan Document to which it
      is a
      party do not and will not contravene (i) any of the Governing Documents of
      the Borrower, (ii) any Requirement of Law, or (iii) any Material
      Contract and will not result in the imposition of any Liens upon any of its
      properties except in favor of the Agent.

     

    (f)
        Consents
      and Filings.
      Except
      in connection with terminating the Wachovia Loan and the liens and security
      interests arising therefrom, no consent, authorization or approval of, or filing
      with or other act by, any shareholders of the Borrower, any Governmental
      Authority or any other Person is required in connection with the execution,
      delivery, performance, validity or enforceability of this Agreement or any
      other
      Loan Document, the consummation of the transactions contemplated hereby or
      thereby or the continuing operations of the Borrower following such
      consummation, except (i) those that have been obtained or made and are
      specified in Schedule 6.1(f), and (ii) the filing of financing and
      termination statements under the Code and the recording of the Mortgage and
      related releases.

     

    (g)
        Ownership;
      Subsidiaries.
      The
      capital stock or limited liability company interests, as the case may
      be, of
      each
      of the Subsidiaries are owned by the Persons and in the amounts specified in
      Schedule 6.1(g). Schedule 6.1(g) sets forth the exact correct legal name of
      each
      of the Subsidiaries of the Borrower, in each case as specified in the public
      record of the jurisdiction of its organization, and of the Persons that own
      the
      capital stock or limited liability company interests therein.

     

    (h)
        Solvency.
      It is
      Solvent and will be Solvent upon the completion of all transactions contemplated
      to occur on or before the Closing Date (including, without limitation, the
      Loans, if any, to be made on the Closing Date).

     

    (i)
        Financial
      Data.
      It has
      provided to the Agent complete and accurate copies of its annual audited
      Financial Statements for the fiscal year ended December 31, 2005, and
      unaudited Financial Statements for the eight-month period ended August 31,
      2006. Such Financial Statements have been prepared in accordance with GAAP
      consistently applied throughout the periods involved and fairly present the
      financial position, results of operations and cash flows of the Borrower and
      its
      Subsidiaries for each of the periods covered. Except as specified in Schedule
      6.1(i), neither it nor any of its Subsidiaries has any Contingent Obligation
      or
      liability for taxes, unrealized losses, unusual forward or long-term commitments
      or long-term leases, which is not reflected in such Financial Statements or
      the
      footnotes thereto. During the period from December 31, 2005 to and
      including the date hereof, there has been no sale, transfer or other disposition
      by the Borrower or any of its Subsidiaries of any material part of its business
      or property and no purchase or other acquisition of any business or property
      (including any capital stock of any other Person) material in relation to the
      financial condition of the Borrower and its Subsidiaries at December 31,
      2005. Since December 31, 2005, (i) there has been no change,
      occurrence, development or event, which has had or could reasonably be expected
      to have a Material Adverse Effect, and (ii) none of the capital stock of
      the Borrower has been redeemed, retired, purchased or otherwise acquired for
      value by the Borrower.

     

    
      
        
        

      

      
        -42-

        
          

        

      

      
        
        

      

    

     

    (j)
        Accuracy
      and Completeness of Information.
      All
      data, reports and information heretofore, contemporaneously or hereafter
      furnished by or on behalf of the Borrower in writing to the Agent or the
      Auditors for purposes of or in connection with this Agreement or any other
      Loan
      Document, or any transaction contemplated hereby or thereby, are or will be
      true
      and accurate in all material respects on the date as of which such data, reports
      and information are dated or certified and not incomplete by omitting to state
      any material fact necessary to make such data, reports and information not
      misleading at such time. There are no facts now known to any Responsible Officer
      of the Borrower which individually or in the aggregate could reasonably be
      expected to have a Material Adverse Effect and which have not been specified
      herein, in the Financial Statements, or in any certificate, opinion or other
      written statement previously furnished by the Borrower to the
      Agent.

     

    (k)
        No
      Joint Ventures or Partnerships.
      Except
      as specified in Schedule 6.1(k), it is not engaged in any joint venture or
      partnership with any other Person. 

     

    (l)
        Corporate
      and Trade Name.
      During
      the past five years, the Borrower has not been known by or used any other
      corporate, trade or fictitious name except for its name as set forth in the
      introductory paragraph and on the signature page of this Agreement, which is
      the
      exact correct legal name of the Borrower.

     

    (m)
        No
      Actual or Pending Material Modification of Business.
      There
      exists no actual or, to the best of the Borrower’s knowledge after due inquiry,
      threatened termination, cancellation or limitation of, or any modification
      or
      change in, the business relationship of the Borrower with any customer or group
      of customers which individually or in the aggregate could reasonably be expected
      to have a Material Adverse Effect.

     

    (n)
        No
      Broker’s or Finder’s Fees.
      No
      broker or finder brought about the obtaining, making or closing of the Loans
      or
      financial accommodations afforded hereunder or in connection herewith by the
      Agent, any Lender or any of their respective Affiliates. No broker’s or finder’s
      fees or commissions will be payable by the Borrower to any Person in connection
      with the transactions contemplated by this Agreement.

     

    (o)
        Investment
      Company.
      It is
      not an “investment company,” or an “affiliated person” of, or “promoter” or
“principal underwriter” for, an “investment company,” as such terms are defined
      in the Investment Company Act of 1940, as amended. Neither the making of any
      Loans, the issuance of any Letters of Credit or the application of the proceeds
      or repayment thereof by the Borrower or the beneficiary of any Letter of Credit,
      nor the consummation of the other transactions contemplated by this Agreement
      or
      the other Loan Documents, will violate any provision of such Act or any rule,
      regulation or order of the Securities and Exchange Commission
      thereunder.

     

    
      
        
        

      

      
        -43-

        
          

        

      

      
        
        

      

    

     

    (p)
        Margin
      Stock.
      It does
      not own any “margin stock” as that term is defined in Regulation U of the
      Federal Reserve Board.

     

    (q)
        Taxes
      and Tax Returns.

     

    (i)
        It
      has
      properly completed and timely filed all income tax returns it is required to
      file. The information filed is complete and accurate in all material respects.
      All deductions taken in such income tax returns are appropriate and in
      accordance with applicable laws and regulations, except deductions that may
      have
      been disallowed but are being challenged in good faith and for which adequate
      reserves have been established in accordance with GAAP.

     

    (ii)
        All
      taxes, assessments, fees and other governmental charges for periods beginning
      prior to the date hereof have been timely paid (or, if not yet due, adequate
      reserves therefor have been established) by it and the Borrower has no liability
      for taxes in excess of the amounts so paid or reserves so
      established.

     

    (iii)
        No
      deficiencies for taxes have been claimed, proposed or assessed by any taxing
      or
      other Governmental Authority against the Borrower and no tax Liens have been
      filed with respect thereto. There are no pending or threatened audits,
      investigations or claims for or relating to any liability of the Borrower for
      taxes, and there are no matters under discussion with any Governmental Authority
      which could result in an additional liability for taxes. The federal income
      tax
      returns of the Borrower have not been audited by the Internal Revenue Service
      since 2001. No extension of a statute of limitations relating to taxes,
      assessments, fees or other governmental charges is in effect with respect to
      the
      Borrower.

     

    (iv)
        It
      is not
      a party to, and has no obligations under, any written tax sharing agreement
      or
      agreement regarding payments in lieu of taxes.

     

    (r)
        No
      Judgments or Litigation.
      Except
      as specified in Schedule 6.1(r), no judgments, orders, writs or decrees are
      outstanding against it, nor is there now pending or, to its knowledge after
      due
      inquiry, threatened litigation, contested claim, investigation, arbitration,
      or
      governmental proceeding by or against the Borrower that (i) individually or
      in the aggregate could reasonably be expected to have a Material Adverse Effect,
      or (ii) purports to affect the legality, validity or enforceability of this
      Agreement, the Revolving Credit Notes, any other Loan Document or the
      consummation of the transactions contemplated hereby or thereby.

     

    (s)
        Title
      to Property.
      It has
      (i) good and marketable fee simple title to or valid leasehold interests in
      all of its Property, and (ii) good and marketable title to all of its other
      property, in each case free and clear of Liens other than Liens permitted by
      Section 7.2(i).

     

    (t)
        No
      Other Indebtedness.
      On the
      Closing Date and after giving effect to the transactions contemplated hereby,
      it
      has no Indebtedness other than Indebtedness permitted under Section
      7.2(a).

     

    
      
        
        

      

      
        -44-

        
          

        

      

      
        
        

      

    

     

    (u)
        Investments;
      Contracts.
      The
      Borrower (i) has not committed to make any Investment; (ii) is not a
      party to any indenture, agreement, contract, instrument or lease, or subject
      to
      any charter, bylaw or other corporate or similar restriction or any injunction,
      order, restriction or decree, which could materially and adversely affect its
      business, operations, assets or financial condition; (iii) is not a party
      to any “take or pay” contract as to which it is the purchaser; and (iv) has
      no material contingent or long-term liability, including any management
      contracts, which could reasonably be expected to have a Material Adverse
      Effect.

     

    (v)
        Compliance
      with Laws.
      On the
      Closing Date, after giving effect to the transactions contemplated hereby,
      it is
      not in default under any term of any Requirement of Law other than any default
      which, when taken together with all other similar defaults, could not reasonably
      be expected to have a Material Adverse Effect.

     

    (w)
        Rights
      in Collateral; Priority of Liens.
      All of
      the Collateral of the Borrower is owned or leased by it free and clear, upon
      the
      termination of the liens and security interests in favor of Wachovia Bank,
      National Association, Bank of America, N.A., and Brown Brothers Harriman &
Co. provided in connection with and as security for the Wachovia Loan, of any
      and all Liens in favor of third parties, other than Liens in favor of the Agent
      and Permitted Liens. Upon the proper filing of the financing and termination
      statements specified in Section 5.1(a)(v) and the recording of the Mortgage
      and
      releases specified in Section 7.1(t), the Liens granted by the Borrower and
      the other Loan Parties pursuant to the Loan Documents constitute valid,
      enforceable and perfected first priority Liens on the Collateral.

     

    (x)
        ERISA.

     

    (i)
        Neither
      it nor any ERISA Affiliate maintains or contributes to any Plan, other than
      those specified in Schedule 6.1(x).

     

    (ii)
        It
      and
      each ERISA Affiliate have fulfilled all contribution obligations for each Plan
      (including obligations related to the minimum funding standards of ERISA and
      the
      Internal Revenue Code), and no application for a funding waiver or an extension
      of any amortization period pursuant to Sections 303 and 304 of ERISA or Section
      412 of the Internal Revenue Code has been made with respect to any
      Plan.

     

    (iii)
        No
      Termination Event has occurred nor has any other event occurred that is likely
      to result in a Termination Event. Neither it or any ERISA Affiliate, nor any
      fiduciary of any Plan, is subject to any direct or indirect liability with
      respect to any Plan under any Requirement of Law or agreement, except for
      ordinary funding obligations which are not past due.

     

    (iv)
        Neither
      it nor any ERISA Affiliate is required to or reasonably expects to be required
      to provide security to any Plan under Section 307 of ERISA or Section 401(a)(29)
      of the Internal Revenue Code.

     

    (v)
        It
      and
      each ERISA Affiliate are in compliance in all material respects with all
      applicable provisions of ERISA and the Internal Revenue Code with respect to
      all
      Plans. There has been no prohibited transaction as defined in Section 406 of
      ERISA or Section 4975 of the Internal Revenue Code (a “Prohibited
      Transaction”)
      with
      respect to any Plan or any Multiemployer Plan. It and each ERISA Affiliate
      have
      made when due any and all payments required to be made under any agreement
      relating to a Multiemployer Plan or any Requirement of Law pertaining thereto.
      With respect to each Plan and Multiemployer Plan, neither it nor any ERISA
      Affiliate has incurred any liability to the PBGC or had asserted against it
      any
      penalty for failure to fulfill the minimum funding requirements of ERISA other
      than for payments of premiums in the ordinary course of business.

     

    
      
        
        

      

      
        -45-

        
          

        

      

      
        
        

      

    

     

    (vi)
        Each
      Plan
      which is intended to qualify under Section 401(a) of the Internal Revenue Code
      has received a favorable determination letter from the IRS and no event has
      occurred which would cause the loss of such qualification.

     

    (vii)
        The
      aggregate actuarial present value of all benefit liabilities (whether or not
      vested) under each Pension Plan, determined on a plan termination basis, as
      disclosed in, and as of the date of, the most recent actuarial report for such
      Pension Plan, does not exceed the aggregate fair market value of the assets
      of
      such Pension Plan as of such date.

     

    (viii)
        Neither
      it nor any ERISA Affiliate has incurred or reasonably expects to incur any
      liability (and no event has occurred which, with the giving of notice under
      Section 4219 of ERISA, would result in any such liability) under Section 4201
      or
      4243 of ERISA with respect to any Multiemployer Plan.

     

    (ix)
        To
      the
      extent that any Plan is funded with insurance, it and each ERISA Affiliate
      have
      paid when due all premiums required to be paid. To the extent that any Plan
      is
      funded other than with insurance, it and each ERISA Affiliate have made when
      due
      all contributions required to be paid.

     

    (y)
        Intellectual
      Property.
      Set
      forth on Schedule 6.1(y) is a complete and accurate list of all patents,
      trademarks, trade names, service marks and copyrights, and all applications
      therefor and licenses thereof, of the Borrower, showing as of the date hereof
      the jurisdiction in which registered, the registration number, the date of
      registration and the expiration date. The Borrower owns or licenses all patents,
      trademarks, service marks, logos, trade names, trade secrets, know-how,
      copyrights, or licenses and other rights with respect to any of the foregoing,
      which are necessary or advisable for the operation of its business as conducted
      at present or proposed to be conducted. The Borrower has not infringed any
      patent, trademark, service mark, trade name, copyright, license or other right
      owned by any other Person by the sale or use of any product, process, method,
      substance, part or other material currently contemplated to be sold or used,
      where such sale or use could reasonably be expected to have a Material Adverse
      Effect, and no claim or litigation is pending, or, to the best of the Borrower’s
      knowledge, threatened against the Borrower that contests its right to sell
      or
      use any such product, process, method, substance, part or other
      material.

     

    (z)
        Labor
      Matters.
      Schedule 6.1(z) accurately sets forth all labor contracts to which the Borrower
      is a party as of the Closing Date, and their dates of expiration. There are
      no
      existing or threatened strikes, lockouts or other disputes relating to any
      collective bargaining or similar agreement to which the Borrower is a party
      which, individually or in the aggregate, could reasonably be expected to have
      a
      Material Adverse Effect.

     

    
      
        
        

      

      
        -46-

        
          

        

      

      
        
        

      

    

     

    (aa)
        Compliance
      with Environmental Laws.
      (i) It is not the subject of any judicial or administrative proceeding or
      investigation relating to the violation of any Environmental Law or asserting
      potential liability arising from the release or disposal by any Person of any
      Hazardous Materials, (ii) it has not filed with or received from any
      Governmental Authority or other Person any notice, order, stipulation or
      directive under any Environmental Law, nor is it aware of any pending
      discussions within any Governmental Authority, concerning the treatment,
      storage, disposal, spill or release or threatened release of any Hazardous
      Materials at, on, beneath or adjacent to Property owned or leased by it, or
      the
      release or threatened release at any other location of any Hazardous Material
      generated, used, stored, treated, transported or released by or on behalf of
      the
      Borrower, (iii) it has disposed of all its waste in accordance with all
      applicable laws and it has not improperly stored or disposed of any waste at,
      on, beneath or adjacent to any of its Property and none of its Property contains
      any waste fill, (iv) it has no knowledge of any contingent liability for
      any release of any Hazardous Materials, and there has been no spill or release
      of any Hazardous Materials at any of its Property in violation of Environmental
      Laws, (v) to the knowledge of the Borrower, all of its Property (including,
      without limitation, its Equipment) is free, and has at all times been free,
      of
      Hazardous Materials and underground storage tanks, and (vi) to the
      knowledge of the Borrower, none of its Property has ever been used as a waste
      disposal site, whether registered or unregistered.

     

    (bb)
        Licenses
      and Permits.
      It has
      obtained and holds in full force and effect all franchises, licenses, leases,
      permits, certificates, authorizations, qualifications, easements, rights of
      way
      and other rights and approvals which are necessary or advisable for the
      operation of its business as presently conducted and as proposed to be
      conducted, except where the failure to possess any of the foregoing
      (individually or in the aggregate) could not reasonably be expected to have
      a
      Material Adverse Effect.

     

    (cc)
        Government
      Regulation.
      It is
      not subject to regulation under the Federal Power Act, the Interstate Commerce
      Act or any other Requirement of Law that limits its ability to incur
      Indebtedness or to consummate the transactions contemplated by this Agreement
      and the other Loan Documents.

     

    (dd)
        Material
      Contracts.
      Set
      forth on Schedule 6.1(dd) is a complete and accurate list of all Material
      Contracts of the Borrower, showing as of the date hereof the parties, subject
      matter and term thereof. Each such contract has been duly authorized, executed
      and delivered by the Borrower and each other party thereto. Except as specified
      in Schedule 6.1(dd), each Material Contract of the Borrower is in full
      force and effect and is binding upon and enforceable against all parties thereto
      in accordance with its terms, and there exists no default under such contract
      of
      the Borrower by any party thereto.

     

    (ee)
        Business
      and Properties.
      No
      business of the Borrower is affected by any fire, explosion, accident, drought,
      storm, hail, earthquake, embargo, act of God or of the public enemy or other
      casualty (whether or not covered by insurance) that could reasonably be expected
      to have a Material Adverse Effect.

     

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

     

    (ff)
        Affiliate
      Transactions.
      Except
      as specified in Schedule 6.1(ff), the Borrower is not a party to or bound
      by any agreement or arrangement (whether oral or written) to which any Affiliate
      of the Borrower is a party except (i) in the ordinary course of and
      pursuant to the reasonable requirements of the business of the Borrower, and
      (ii) upon fair and reasonable terms no less favorable to the Borrower than
      it could obtain in a comparable arm’s-length transaction with an unaffiliated
      Person.

     

    (gg)
        Compliance
      with Anti-Terrorism Laws.
      The
      Borrower is and will remain in full compliance with all laws and regulations
      applicable to it including, without limitation, (i) ensuring that no Person
      who owns a controlling interest in or otherwise controls the Borrower is or
      shall be (A) listed on the Specially Designated Nationals and Blocked Person
      List maintained by the Office of Foreign Assets Control (“OFAC”),
      Department of the Treasury, or any other similar list maintained by the OFAC
      under any authorizing statute, Executive Order, or regulation or (B) a Person
      designated under Section 1(b), (c) or (d) of Executive Order No. 13224
      (September 23, 2001), any related enabling legislation or any similar Executive
      Order, and (ii) compliance with all applicable Bank Secrecy Act
      (“BSA”)
      laws,
      regulations and government guidance on BSA compliance and on the prevention
      and
      detection of money laundering violations. The Borrower acknowledges that each
      of
      the Agent and the Lenders have notified the Borrower and the other Loan Parties
      that the Agent and the Lenders are required, under the USA Patriot Act, 31
      U.S.C. §5318 (the “Patriot
      Act”),
      to
      obtain, verify and record information that identifies the Borrower and the
      other
      Loan Parties including, without limitation, the name and address of the Borrower
      and the other Loan Parties and such other information that will allow the Agent
      and the Lenders to identify the Borrower and the other Loan Parties in
      accordance with the Patriot Act.

     

    All
      representations and warranties made by the Borrower in this Agreement and in
      each other Loan Document to which it is a party shall survive the execution
      and
      delivery hereof and thereof and the closing of the transactions contemplated
      hereby and thereby. The Borrower acknowledges and confirms that the Lenders
      are
      relying on such representations and warranties without independent inquiry
      in
      entering into this Agreement.

     

    ARTICLE
      VII.

    COVENANTS
      OF THE BORROWER

     

    SECTION
      7.1   Affirmative
      Covenants

     

    Until
      termination of the Commitments, payment and satisfaction of all Obligations
      in
      full, and termination, Collateralization or expiration of all Letters of
      Credit:

     

    (a)
        Corporate
      Existence.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, (i) maintain
      their corporate or limited liability company, as the case may be, existence,
      (ii) maintain in full force and effect all material licenses, bonds,
      franchises, leases, trademarks, qualifications and authorizations to do
      business, and all material patents, contracts and other rights necessary or
      advisable to the profitable conduct of its businesses, and (iii) continue
      in the same lines of business as currently conducted by it.

     

    
      
        
        

      

      
        -48-

        
          

        

      

      
        
        

      

    

     

    (b)
        Maintenance
      of Property.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, keep all property
      useful and necessary to its business in good working order and condition
      (ordinary wear and tear excepted) in accordance with its past operating
      practices.

     

    (c)
        Affiliate
      Transactions.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, conduct
      transactions with any of its Affiliates on an arm’s-length basis or other basis
      no less favorable to the Borrower or Subsidiary than would apply in a
      transaction with a non-Affiliate and which are approved by the board of
      directors (or similar governing body) of the Borrower or
      Subsidiary.

     

    (d)
        Taxes.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, pay, when due,
      (i) all tax assessments, and other governmental charges and levies imposed
      against it or any of its property and (ii) all lawful claims that, if
      unpaid, might by law become a Lien upon its property; provided,
      however,
      that,
      unless such tax assessment, charge, levy or claim has become a Lien on any
      of
      the property of the Borrower or Subsidiary, it need not be paid if it is being
      contested in good faith, by appropriate proceedings diligently conducted and
      an
      adequate reserve or other appropriate provision shall have been established
      therefor as required in accordance with GAAP. 

     

    (e)
        Requirements
      of Law.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, comply with all
      Requirements of Law applicable to it, including, without limitation, all
      applicable federal, state, local or foreign laws and regulations, including,
      without limitation, those relating to environmental and employee matters
      (including the collection, payment and deposit of employees’ income,
      unemployment, Social Security and Medicare hospital insurance taxes) and with
      respect to pension liabilities, provided
      that the
      Borrower shall not be deemed in violation hereof if the Borrower’s or any such
      Subsidiary’s failure to comply with any of the foregoing could not reasonably be
      expected to have a Material Adverse Effect.

     

    (f)
        Insurance.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, maintain public
      liability insurance, business interruption insurance, third party property
      damage insurance and replacement value insurance on its assets (including the
      Collateral) under such policies of insurance, with such insurance companies,
      in
      such amounts and covering such risks as are at all times satisfactory to the
      Agent, all of which policies covering the Collateral shall name the Agent as
      an
      additional insured and the lender loss payee in case of loss, and contain other
      provisions as the Agent may require to protect fully the Agent’s interest in the
      Collateral and any payments to be made under such policies.

     

    (g)
        Books
      and Records; Inspections.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, (i) maintain
      books and records (including computer records and programs) of account
      pertaining to the assets, liabilities and financial transactions of the Borrower
      and its Subsidiaries in such detail, form and scope as is consistent with good
      business practice, which shall exclude the assets, liabilities and financial
      transactions of all direct and indirect members, shareholders, Subsidiaries
      and
      Affiliates of the Borrower and its Subsidiaries, and (ii) provide the Agent
      and its agents and one representative of each of the Lenders access to the
      premises of the Borrower and its Subsidiaries at any time and from time to
      time,
      during normal business hours and upon reasonable notice under the circumstances,
      and at any time after the occurrence and during the continuance of a Default
      or
      Event of Default, for the purposes of (A) inspecting and verifying the
      Collateral, (B) inspecting and copying (at the Borrower’s expense) any and
      all records pertaining thereto, and (C) discussing the affairs, finances
      and business of the Borrower and its Subsidiaries with any officer, employee
      or
      director thereof or with the Auditors, all of whom are hereby authorized to
      disclose to the Agent and the Lenders all financial statements, work papers,
      and
      other information relating to such affairs, finances or business. The Borrower
      shall reimburse the Agent for the reasonable travel and related expenses of
      the
      Agent’s employees or, at the Agent’s option, of such outside accountants or
      examiners as may be retained by the Agent to verify or inspect Collateral,
      records or documents of the Borrower and its Subsidiaries on a regular basis
      or
      for a special inspection if the Agent deems the same appropriate. If the Agent’s
      own employees are used, the Borrower shall also pay such reasonable per diem
      allowance as the Agent may from time to time establish, or, if outside examiners
      or accountants are used, the Borrower shall also pay the Agent such sum as
      the
      Agent may be obligated to pay as fees therefor. All such Obligations may be
      charged to the Loan Account or any other account of the Borrower with the Agent
      or any of its Affiliates. The Borrower hereby authorizes the Agent to
      communicate directly with the Auditors to disclose to the Agent any and all
      financial information regarding the Borrower including, without limitation,
      matters relating to any audit and copies of any letters, memoranda or other
      correspondence related to the business, financial condition or other affairs
      of
      the Borrower.

     

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

     

    (h)
        Notification
      Requirements.
      The
      Borrower shall timely give the Agent the following notices and other
      documents:

     

    (i)
        Notice
      of Defaults.
      Promptly, and in any event within two Business Days after becoming aware of
      the
      occurrence of a Default or Event of Default, a certificate of a Responsible
      Officer specifying the nature thereof and the Borrower’s proposed response
      thereto, each in reasonable detail.

     

    (ii)
        Proceedings
      or Changes.
      Promptly, and in any event within five Business Days after the Borrower becomes
      aware of (A) any proceeding including, without limitation, any proceeding
      the subject of which is based in whole or in part on a commercial tort claim
      being instituted or threatened to be instituted by or against a Loan Party
      or
      any of its Subsidiaries in any federal, state, local or foreign court or before
      any commission or other regulatory body (federal, state, local or foreign)
      involving a sum, together with the sum involved in all other similar
      proceedings, in excess of $1,000,000 in the aggregate, (B) any order,
      judgment or decree involving a sum, together with the sum of all other orders,
      judgments or decrees, in excess of $1,000,000 in the aggregate being entered
      against the Borrower or any of its Subsidiaries or any of their respective
      property or assets, (C) any notice or correspondence issued to any Loan
      Party or Subsidiary thereof by a Governmental Authority warning, threatening
      or
      advising of the commencement of any investigation involving such Loan Party
      or
      Subsidiary or any of its property or assets, (D) any actual or prospective
      change, development or event which has had or could reasonably be expected
      to
      have a Material Adverse Effect, (E) the cessation of the business
      relationships of the Borrower with any customers of the Borrower whose billings
      for services rendered have accounted for more than fifteen percent (15%) in
      the
      aggregate of the gross receipts of the Borrower in any year since the fiscal
      year ended December 31, 2005, or the receipt by the Borrower of any notice
      of an intention to terminate any such relationship, (F) the cessation of
      the business relationships of the Borrower with any vendors or suppliers of
      the
      Borrower that have accounted for more than fifteen percent (15%) in the
      aggregate (either in number or volume of business) for the goods and services
      to
      the Borrower in any year since the fiscal year ended December 31, 2005, or
      the receipt by the Borrower of any notice of an intention to terminate any
      such
      relationship, (G) a change in the location of any Collateral from the
      locations specified in Schedule 6.1(b), or (H) a proposed or actual change
      of the name, identity, corporate or limited liability company, as the case
      may
      be, structure or jurisdiction of organization of any Loan Party thereof, a
      written statement describing such proceeding, order, judgment, decree, change,
      development or event and any action being taken by such Loan Party or any of
      its
      Subsidiaries with respect thereto.

     

    
      
        
        

      

      
        -50-

        
          

        

      

      
        
        

      

    

     

    (iii)
        ERISA
      Notices.

     

    (A)
        Promptly,
      and in any event within ten Business Days after a Termination Event has
      occurred, a written statement of a Responsible Officer describing such
      Termination Event and any action that is being taken with respect thereto by
      the
      Borrower or any ERISA Affiliate, and any action taken or threatened by the
      Internal Revenue Service, the Department of Labor or the PBGC;

     

    (B)
        promptly,
      and in any event within three Business Days after the filing thereof with the
      Internal Revenue Service, a copy of each funding waiver request filed with
      respect to any Plan subject to the funding requirements of Section 412 of the
      Internal Revenue Code and all communications received by the Borrower or any
      ERISA Affiliate with respect to such request;

     

    (C)
        promptly,
      and in any event within three Business Days after receipt by the Borrower or
      any
      ERISA Affiliate of the PBGC’s intention to terminate a Pension Plan or to have a
      trustee appointed to administer a Pension Plan, a copy of each such
      notice;

     

    (D)
        promptly,
      and in any event within three Business Days after the occurrence thereof, notice
      (including the nature of the event and, when known, any action taken or
      threatened by the Internal Revenue Service or the PBGC with respect thereto)
      of:

     

    (1)
        any
      Prohibited Transaction which could subject the Borrower or any ERISA Affiliate
      to a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed
      by Section 4975 of the Internal Revenue Code in connection with any Plan, or
      any
      trust created thereunder,

     

    (2)
        any
      cessation of operations (by the Borrower or any ERISA Affiliate) at a facility
      in the circumstances described in Section 4062(e) of ERISA,

     

    
      
        
        

      

      
        -51-

        
          

        

      

      
        
        

      

    

     

    (3)
        a
      failure
      by the Borrower or any ERISA Affiliate to make a payment to a Plan required
      to
      avoid imposition of a Lien under Section 302(f) of ERISA or Section 412(n)
      of
      the Internal Revenue Code,

     

    (4)
        the
      adoption of an amendment to a Plan requiring the provision of security to such
      Plan pursuant to Section 307 of ERISA or Section 401(a)(29) of the Internal
      Revenue Code, or

     

    (5)
        any
      change in the actuarial assumptions or funding methods used for any Plan where
      the effect of such change is to increase materially or reduce materially the
      unfunded benefit liability or obligation to make periodic
      contributions;

     

    (E)
        promptly
      upon the request of the Agent, each annual report (IRS Form 5500 series) and
      all
      accompanying schedules, the most recent actuarial reports, the most recent
      financial information concerning the financial status of each Plan administered
      or maintained by the Borrower or any ERISA Affiliate, and schedules showing
      the
      amounts contributed to each Pension Plan by or on behalf of the Borrower or
      any
      ERISA Affiliate in which any of its personnel participate or from which such
      personnel may derive a benefit, and each Schedule B (Actuarial Information)
      to
      the annual report filed by the Borrower or any ERISA Affiliate with the Internal
      Revenue Service with respect to each such Plan;

     

    (F)
        promptly
      upon the filing thereof, copies of any Form 5310, or any successor or equivalent
      form to Form 5310, filed with the Internal Revenue Service in connection with
      the termination of any Plan, and copies of any standard termination notice
      or
      distress termination notice filed with the PBGC in connection with the
      termination of any Pension Plan;

     

    (G)
        promptly,
      and in any event within three Business Days after receipt thereof by the
      Borrower or any ERISA Affiliate, notice and demand for payment of withdrawal
      liability under Section 4201 of ERISA with respect to a Multiemployer
      Plan;

     

    (H)
        promptly,
      and in any event within three Business Days after receipt thereof by the
      Borrower or any ERISA Affiliate, notice by the Department of Labor of any
      penalty, audit, investigation or purported violation of ERISA with respect
      to a
      Plan;

     

    (I)
        promptly,
      and in any event within three Business Days after receipt thereof by the
      Borrower or any ERISA Affiliate, notice by the Internal Revenue Service or
      the
      Treasury Department of any income tax deficiency or delinquency, excise tax
      penalty, audit or investigation with respect to a Plan; and 

     

    (J)
        promptly,
      and in any event within three Business Days after receipt thereof by the
      Borrower or any ERISA Affiliate, notice of any administrative or judicial
      complaint, or the entry of a judgment, award or settlement agreement, in either
      case with respect to a Plan that could reasonably be expected to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
        -52-

        
          

        

      

      
        
        

      

    

     

    (iv)
        Material
      Contracts.
      Promptly, and in any event within ten Business Days after any Material Contract
      is terminated or amended in any material respect, or any new Material Contract
      is entered into, a written statement describing such event, with copies of
      amendments or new contracts, and an explanation of any actions being taken
      with
      respect thereto.

     

    (v)
        Environmental
      Matters.
      Promptly, and in any event within ten days after receipt by a Loan Party
      thereof, copies of each (A) written notice that any violation of any
      Environmental Law may have been committed or is about to be committed by a
      Loan
      Party which violation could reasonably be expected to result in liability or
      involve remediation costs in excess of $250,000, (B) written notice that
      any administrative or judicial complaint or order has been filed or is about
      to
      be filed against a Loan Party alleging violations of any Environmental Law
      or
      requiring a Loan Party to take any action in connection with the release of
      toxic or Hazardous Materials into the environment which violation or action
      could reasonably be expected to result in liability or involve remediation
      costs
      in excess of $250,000, (C) written notice from a Governmental Authority or
      other Person alleging that a Loan Party may be liable or responsible for costs
      associated with a response to or cleanup of a release of a Hazardous Material
      into the environment or any damages caused thereby which costs could reasonably
      be expected to exceed $250,000, or (D) Environmental Law adopted, enacted
      or issued after the date hereof of which the Borrower becomes aware which could
      reasonably be expected to have a Material Adverse Effect.

     

    (i)
        Casualty
      Loss.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, (i) provide
      written notice to the Agent, within ten Business Days, of any material damage
      to, the destruction of or any other material loss to any asset or property
      owned
      or used by the Borrower or any of its Subsidiaries other than any such asset
      or
      property with a net book value (individually or in the aggregate) less than
      $150,000 or any condemnation, confiscation or other taking, in whole or in
      part,
      or any event that otherwise diminishes so as to render impracticable or
      unreasonable the use of such asset or property owned or used by the Borrower
      or
      any of its Subsidiaries together with a statement of the amount of the damage,
      destruction, loss or diminution in value (a “Casualty
      Loss”),
      and
      (ii) diligently file and prosecute its claim for any award or payment in
      connection with a Casualty Loss.

     

    (j)
        Qualify
      to Transact Business.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, qualify to transact
      business as a foreign corporation, limited partnership or limited liability
      company, as the case may be, in each jurisdiction where the nature or extent
      of
      its business or the ownership of its property requires it to be so qualified
      or
      authorized and where failure to qualify or be authorized could reasonably be
      expected to have a Material Adverse Effect.

     

    (k)
        Financial
      Reporting.
      The
      Borrower shall deliver to the Agent the following:

     

    
      
        
        

      

      
        -53-

        
          

        

      

      
        
        

      

    

     

    (i)
        Annual
      Financial Statements.
      As soon
      as available, but not later than ninety days after the end of each fiscal year,
      beginning with the fiscal year ended December 31, 2006, (A) the
      Borrower’s and its Subsidiaries’ annual audited and certified consolidated and
      unaudited consolidating Financial Statements for or as of the end of the prior
      fiscal year, except that the Borrower shall not be required to deliver
      consolidating statements of cash flow; (B) a comparison in reasonable
      detail to the prior year’s audited Financial Statements; (C) the Auditors’
opinion without Qualification, a “management letter” and a statement indicating
      that the Auditors have not obtained knowledge of the existence of any Default
      or
      Event of Default during their audit; and (D) a narrative discussion of each
      Loan Party’s financial condition and results of operations and the liquidity and
      capital resources for such fiscal year, all on a consolidated and consolidating
      basis, prepared by the Chief Financial Officer of the Borrower.

     

    (ii)
        Projections.
      (A) Prior to the end of each fiscal year of the Borrower, that portion of
      the Business Plan consisting of a profit and loss statement of the Borrower
      for
      the immediately following fiscal year, and (B) within sixty days after the
      end of such fiscal year of the Borrower then concluded, the remaining portions
      of the Business Plan for such following fiscal year, certified by the Chief
      Financial Officer of the Borrower, which Business Plan will have been prepared
      in good faith on the basis of assumptions which were fair in the context of
      the
      conditions existing at the time of delivery thereof and which represented at
      the
      time of delivery thereof the Borrower’s best estimate of its future financial
      performance.

     

    (iii)
        Monthly
      Financial Statements.
      As soon
      as available, but not later than thirty-five days after the end of each month
      (other than March, June, September and December, and as to such months, not
      later than forty-five days after the end thereof), commencing with the month
      of
      September, 2006, (A) the Borrower’s interim consolidated and consolidating
      Financial Statements as at the end of such month and for the fiscal year to
      date, except that the Borrower shall not be required to deliver consolidating
      statements of cash flow, together with a comparison thereof to the corresponding
      month and fiscal year to date in the immediately prior fiscal year and to the
      corresponding portions of the most recent Business Plan, except that such
      comparison to such Business Plan shall be limited to the Borrower’s consolidated
      (and not consolidating) Financial Statements, and (B) a certification by
      the Borrower’s Chief Financial Officer that such Financial Statements have been
      prepared in accordance with GAAP and are fairly stated in all material respects
      (subject to normal year-end audit adjustments). 

     

    (iv)
        Compliance
      Certificate.
      As soon
      as available, but not later than forty-five days after the end of the fiscal
      quarter, if any, in which the Trigger Date occurs and each fiscal quarter
      thereafter, a compliance certificate, substantially in the form of
      Exhibit G (a “Compliance
      Certificate”),
      signed by the Borrower’s Chief Financial Officer, with an attached schedule of
      calculations demonstrating compliance with the Financial Covenant as of the
      end
      of such quarter.

     

    
      
        
        

      

      
        -54-

        
          

        

      

      
        
        

      

    

     

    (v)
        Borrowing
      Base Certificate.
      Monthly
      not later than fifteen days following the end of each month, a borrowing base
      certificate, substantially in the form of Exhibit K, detailing the Eligible
      Receivables, containing a calculation of availability and reflecting all sales,
      billings for services rendered, collections, and debit and credit adjustments,
      as of the last day of (or for) the preceding month, which shall be prepared
      by
      or under the supervision of the Chief Financial Officer of the Borrower and
      certified by such officer (a “Borrowing
      Base Certificate”).

     

    (vi)
        Agings.
      Monthly, not later than the fifteenth day of each month, agings and
      reconciliations of the Borrower’s Receivables and accounts payable and, if a
      Loan Party’s Receivables are included in Eligible Receivables for purposes of
      determining the Borrowing Base, such Loan Party’s Receivables and accounts
      payable, in scope and detail satisfactory to the Agent, as of the last day
      of
      the preceding month.

     

    (vii)
        Shareholder,
      Member and SEC Reports.
      As soon
      as available, but not later than five days after the same are sent or filed,
      as
      the case may be, copies of all financial statements and reports that any Loan
      Party sends to any of its shareholders or members, as the case may be, or files
      with the Securities and Exchange Commission or any other Governmental
      Authority.

     

    (viii)
        Quarterly
      Litigation Report.
      At the
      same time that the Borrower sends its Auditors its quarterly litigation report,
      a copy of such report.

     

    (ix)
        Other
      Financial Information.
      Promptly after the request by the Agent therefor, such additional financial
      statements and other related data and information as to the business, prospects,
      operations, results of operations, assets, liabilities or condition (financial
      or otherwise) of the Borrower or any other Loan Party as the Agent may from
      time
      to time reasonably request.

     

    (l)
        Payment
      of Liabilities.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, pay and discharge,
      in the ordinary course of business, all obligations and liabilities (including,
      without limitation, tax liabilities and other governmental charges), except
      where the same may be contested in good faith by appropriate proceedings and
      for
      which adequate reserves with respect thereto have been established in accordance
      with GAAP.

     

    (m)
        ERISA.
      The
      Borrower shall, and shall cause each of its ERISA Affiliates to,
      (i) maintain each Plan intended to qualify under Section 401(a) of the
      Internal Revenue Code so as to satisfy the qualification requirements thereof,
      (ii) contribute, or require that contributions be made, in a timely manner
      (A) to each Plan in amounts sufficient (I) to satisfy the minimum
      funding requirements of Section 302 of ERISA or Section 412 of the Internal
      Revenue Code, if applicable, (II) to satisfy any other Requirements of Law,
      and (III) to satisfy the terms and conditions of each such Plan, and
      (B) to each Foreign Plan in amounts sufficient to satisfy the minimum
      funding requirements of any applicable law or regulation, without any
      application for a waiver from any such funding requirements, (iii) cause
      each Plan or Foreign Plan to comply in all material respects with applicable
      law
      (including all applicable statutes, orders, rules and regulations), and
      (iv) pay in a timely manner, in all material respects, all required
      premiums to the PBGC.

     

    
      
        
        

      

      
        -55-

        
          

        

      

      
        
        

      

    

     

    As
      used
      in this Section 7.1(m), “Foreign
      Plan”
means
      a
      plan that provides retirement or health benefits and that is maintained, or
      otherwise contributed to, by the Borrower for the benefit of employees outside
      the United States.

     

    (n)
        Environmental
      Matters.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, conduct its
      business so as to comply in all material respects with all applicable
      Environmental Laws including, without limitation, compliance in all material
      respects with the terms and conditions of all permits and governmental
      authorizations.

     

    (o)
        Trademarks.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, do and cause to
      be
      done all things necessary to preserve and keep in full force and effect all
      of
      its material registrations of trademarks, service marks and other marks, trade
      names and other trade rights.

     

    (p)
        Solvency.
      The
      Borrower shall, and shall cause each of its Subsidiaries to, be and remain
      Solvent at all times.

     

    (q)
        Billing
      Practices.
      The
      Borrower shall notify the Agent of any Receivable of the Borrower or any other
      Loan Party generated pursuant to the sale of goods or the rendition of services
      on any basis other than on the terms specified in Schedule 7.1(q).

     

    (r)
        Subsidiary
      Dividends.
      The
      Borrower shall cause each of its Subsidiaries to declare and pay dividends
      on
      account of its capital stock or other equity interests as frequently as, and
      to
      the fullest extent, permitted by applicable law and otherwise consistent with
      past practices.

     

    (s)
        Lockbox
      Account.
      The
      Borrower shall deliver to the Agent by the Lockbox Effective Date, the Lockbox
      Account Agreement, duly executed by the Borrower, on behalf of all the Loan
      Parties, and the Lockbox Bank.

     

    (t)
        Mortgage.
      Within
      sixty days after the date of this Agreement (the “Mortgage
      Effective Date”),
      the
      Borrower will:

     

    (i)
        Recording
      of Mortgage.
      (A)
      Execute and deliver the Mortgage, (B) record the Mortgage with each office
      that
      the Agent deems necessary or desirable to perfect and protect the Lien created
      thereunder, and (C) release all mortgages, security agreements and assignments
      previously encumbering the Property covered by the Mortgage in all offices
      as
      the Agent may deem necessary or desirable to establish the first priority of
      the
      Lien created thereunder.

     

    (ii)
        Title
      Policy.
      Deliver
      to the Agent a mortgagee’s title policy (A) dated the Mortgage Effective Date in
      an amount satisfactory to the Agent, (B) insuring that the Mortgage creates
      a
      valid first Lien on the Property covered thereby free and clear of all Liens
      except the Lien in favor of the Agent and other Liens that are satisfactory
      to
      the Agent, (C) naming the Agent as the insured thereunder, (D) in the form
      of
      ALTA Loan Policy-1992, and (E) covering revolving endorsements and such other
      endorsements and effective coverage as the Agent may reasonably request,
      together with evidence that all premiums in respect of such policy shall have
      been paid by or on behalf of the Borrower;

     

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

     

    (iii)
        Survey
      of Property.
      Deliver
      to the Agent a survey of the Property covered by the Mortgage, satisfactory
      in
      form and substance to the Agent and certified within thirty days before the
      Mortgage Effective Date by an independent public surveyor satisfactory to the
      Agent, meeting the minimum standard detail requirements for ALTA/ACSM surveys,
      and showing (A) the exact location and dimensions of such Property and the
      improvements thereon, (B) the exact location of all lot and street lines,
      required height and setback lines, all means of access to and all easements
      relating to such Property, (C) the names of all streets and alleys abutting
      such
      Property, and (D) the absence of any encroachments, rights-of-way or easements
      on such Property or any encroachments by the improvements thereon on adjoining
      property, or any other defects except Liens permitted hereunder, together with
      a
      surveyor’s certificate satisfactory to the Agent; and

     

    (iv)
        Appraisal.
      Cause
      the delivery to the Agent of an appraisal of the Property covered by the
      Mortgage, conducted in accordance with sound appraisal standards by appraisers
      satisfactory to the Agent and otherwise in form and substance satisfactory
      to
      the Agent; and

     

    (v)
        Environmental
      Assessment.
      Cause
      the delivery to the Agent of an environmental assessment of the Property covered
      by the Mortgage, prepared by an environmental engineer satisfactory to the
      Agent
      on which the Agent will have been expressly authorized to rely by such
      engineer.

     

    (u)
        Control
      Agreements.
      Within
      five Business Days after the Agent’s request therefor, the Borrower will
      deliver, for each deposit account and for each Securities Account of the
      Borrower and each other Loan Party identified by the Agent in such Request,
      and
      maintain in full force and effect a Control Agreement (in addition to the
      Lockbox Account Agreement delivered pursuant to Section 7.1(s)), duly executed
      by the Agent, the applicable Loan Party and the depository bank or securities
      intermediary party thereto.

     

    SECTION
      7.2   Negative
      Covenants

     

    Until
      termination of the Commitments, payment and satisfaction of all Obligations
      in
      full, and termination, Collateralization or expiration of all Letters of
      Credit:

     

    (a)
        Indebtedness.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, at any time create, incur, assume or suffer to exist any
      Indebtedness other than:

     

    (i)
        Indebtedness
      under the Loan Documents;

     

    (ii)
        endorsement
      of negotiable instruments for deposit or collection in the ordinary course
      of
      business;

     

    
      
        
        

      

      
        -57-

        
          

        

      

      
        
        

      

    

     

    (iii)
        Indebtedness
      (including Capitalized Lease Obligations) incurred solely to finance the
      acquisition of fixed or capital assets in an aggregate principal amount not
      to
      exceed, as to the Borrower and its Subsidiaries taken collectively, $1,000,000
      at any time outstanding;

     

    (iv)
        the
      MDG
      Indebtedness; or 

     

    (v)
        an
      overdraft facility provided to MDG in an aggregate principal amount not to
      exceed £250,000.

     

    (b)
        Contingent
      Obligations.
      Except
      as specified in Schedule 6.1(i), the Borrower will not, directly or indirectly,
      incur, assume, or suffer to exist any Contingent Obligation, excluding
      indemnities given in connection with this Agreement or the other Loan Documents
      in favor of the Agent and the Lenders.

     

    (c)
        Certain
      Changes, Etc.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, merge or consolidate with any Person or amend, alter or modify
      its
      Governing Documents or its legal name, mailing address, chief executive office
      or principal places of business, structure, status or existence, or liquidate
      or
      dissolve itself (or suffer any liquidation or dissolution) or issue any capital
      stock or other equity interests.

     

    (d)
        Change
      in Nature of Business.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, at any time
      make any material change in the nature of its business as carried on at the
      date
      hereof or enter into any new line of business.

     

    (e)
        Sales,
      Etc. of Assets.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, in any fiscal year, sell, transfer or otherwise dispose of any
      of
      its assets (other than sales of Inventory in the ordinary course of business),
      or grant any option or other right to purchase or otherwise acquire any of
      its
      assets, with an aggregate value, as to the Borrower and its Subsidiaries taken
      together, in excess of $250,000.

     

    (f)
        Use
      of
      Proceeds.
      The
      Borrower will not (i) use any portion of the proceeds of any Loan in
      violation of Section 2.3 or for the purpose of purchasing or carrying any
“margin stock” (as defined in Regulation U of the Federal Reserve Board) in any
      manner which violates the provisions of Regulation T, U or X of the Federal
      Reserve Board or for any other purpose in violation of any applicable statute
      or
      regulation, or of the terms and conditions of this Agreement, or (ii) take,
      or permit any Person acting on its behalf to take, any action which could
      reasonably be expected to cause this Agreement or any other Loan Document to
      violate any regulation of the Federal Reserve Board.

     

    (g)
        Cancellation
      of Debt.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, cancel any
      liability or debt owed to it, except for consideration in the ordinary course
      of
      business.

     

    (h)
        Loans
      to Other Persons.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, at any time
      make loans or advance any credit to any Affiliate thereof or other Person,
      other
      than (i) the MDG Indebtedness, (ii) the overdraft facility to MDG described
      in
      Section 7.2(a)(v), and (iii) additional regular intercompany loans and advances
      among the Loan Parties.

     

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

     

    (i)
        Liens,
      Etc.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, at any time create, incur, assume or suffer to exist any Lien on
      or
      with respect to any assets, other than: 

     

    (i)
        Liens
      created hereunder and by the Security Documents;

     

    (ii)
        Liens
      securing Indebtedness permitted by Section 7.2(a)(iii) incurred to finance
      the
      acquisition of fixed or capital assets, provided
      that
      (A) such Liens shall be created substantially simultaneously with the
      acquisition of such assets, (B) such Liens do not at any time encumber any
      assets other than the assets financed by such Indebtedness, (C) such Liens
      are not modified to secure other Indebtedness and the amount of Indebtedness
      secured thereby is not increased, and (D) the principal amount of
      Indebtedness secured by any such Lien shall at no time exceed the original
      purchase price of such assets; and

     

    (iii)
        Permitted
      Liens.

     

    (j)
        Dividends,
      Stock Redemptions, Distributions, Etc.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, pay any dividends or distributions on, purchase, redeem or retire
      any shares of any class of its capital stock or other equity interests or any
      warrants, options or rights to purchase any such capital stock or other equity
      interests, whether now or hereafter outstanding (“Interests”),
      or
      make any payment on account of or set apart assets for a sinking or other
      analogous fund for, the purchase, redemption, defeasance, retirement or other
      acquisition of its Interests, or make any other distribution in respect thereof,
      either directly or indirectly, whether in cash or property or in obligations
      of
      the Borrower or any of its Subsidiaries, except that a Subsidiary of the
      Borrower may pay dividends to the Borrower or to another Subsidiary of the
      Borrower.

     

    (k)
        Investments.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, directly
      or
      indirectly, at any time make or hold any Investment in any Person (whether
      in
      cash, securities or other property of any kind) other than (i) Investments
      in
      Cash Equivalents so long as the Agent has a perfected, first priority Lien
      on
      such Cash Equivalents, and (ii) an additional Investment by the Borrower in
      MDG
      after the date hereof in an aggregate amount not to exceed
      $1,500,000.

     

    (l)
        Partnerships;
      Subsidiaries; Joint Ventures; Management Contracts.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, at any time
      create any direct or indirect Subsidiary, enter into any joint venture or
      similar arrangement or become a partner in any general or limited partnership
      or
      enter into any management contract permitting third party management rights
      with
      respect to the business of the Borrower or any of its Subsidiaries.

     

    (m)
        Fiscal
      Year.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, change its
      fiscal year from a year ending with the month of December.

     

    
      
        
        

      

      
        -59-

        
          

        

      

      
        
        

      

    

     

    (n)
        Accounting
      Changes.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, at any time
      make or permit any change in accounting policies or reporting practices, except
      as required by GAAP.

     

    (o)
        No
      Prohibited Transactions Under ERISA.
      The
      Borrower will not, and will not permit any of its ERISA Affiliates to, directly
      or indirectly:

     

    (i)
        Engage
      in
      any Prohibited Transaction which could reasonably be expected to result in
      a
      civil penalty or excise tax described in Section 406 of ERISA or Section 4975
      of
      the Internal Revenue Code for which a statutory or class exemption is not
      available or a private exemption has not been previously obtained from the
      Department of Labor;

     

    (ii)
        permit
      to
      exist with respect to any Pension Plan any accumulated funding deficiency (as
      defined in Section 302 of ERISA and Section 412 of the Internal Revenue Code),
      whether or not waived;

     

    (iii)
        terminate
      any Pension Plan where such event would result in any liability of the Borrower
      or any ERISA Affiliate under Title IV of ERISA;

     

    (iv)
        fail
      to
      make any required contribution or payment to any Multiemployer
      Plan;

     

    (v)
        fail
      to
      pay any required installment or any other payment required under Section 412
      of
      the Internal Revenue Code on or before the due date for such installment or
      other payment;

     

    (vi)
        amend
      a
      Pension Plan resulting in an increase in current liability for the plan year
      such that the Borrower or any ERISA Affiliate is required to provide security
      to
      such Plan under Section 307 of ERISA or Section 401(a)(29) of the Internal
      Revenue Code;

     

    (vii)
        withdraw
      from any Multiemployer Plan where such withdrawal is reasonably likely to result
      in any liability of any such entity under Title IV of ERISA; or 

     

    (viii)
        take
      any
      action that would cause the imposition of an excise tax under Section 4978
      or
      Section 4979A of the Internal Revenue Code.

     

    (p)
        Unusual
      Terms of Sale or Services Rendered.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, sell goods
      or
      products or render services on extended or consignment terms or on a progress
      billing or bill and hold basis, or on any other unusual terms.

     

    (q)
        Prepayments
      and Amendments of Material Contracts.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, at any time
      (i) make any prepayment of any Indebtedness, other than the prepayment of
      the Loans in accordance with the terms of this Agreement and the prepayment
      by
      its Subsidiaries of loans made by the Borrower to its Subsidiaries, or
      (ii) amend, modify, cancel or terminate, or permit the amendment,
      modification, cancellation or termination of, any Material Contract, except
      where such amendment or modification could not reasonably be expected to have
      a
      Material Adverse Effect.

     

    
      
        
        

      

      
        -60-

        
          

        

      

      
        
        

      

    

     

    (r)
        Lease
      Obligations.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, at any time
      create, incur or assume any obligations as lessee for the rental or hire of
      real
      or personal property in connection with any sale and leaseback
      transaction.

     

    (s)
        Bank
      Accounts.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, open,
      maintain or otherwise have any checking, savings or other accounts at any bank
      or other financial institution, or any other account where money is or may
      be
      deposited or maintained with any other Person, other than (i) payroll
      accounts, and (ii) accounts specified in Schedule 7.2(s).

     

    (t)
        Acquisition
      of Stock or Assets.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, acquire
      or
      commit or agree to acquire any stock, securities or assets of any other Person
      other than Equipment and Inventory acquired in the ordinary course of
      business.

     

    (u)
        Negative
      Pledge.
      The
      Borrower will not, and will not permit any of its Subsidiaries to, enter into
      or
      suffer to exist any agreement (other than in favor of the Agent) prohibiting
      or
      conditioning the creation or assumption of any Lien upon any of its
      assets.

     

     

    ARTICLE
      VIII.

    FINANCIAL
      COVENANT

     

    Until
      termination of the Commitments, payment and satisfaction of all Obligations
      in
      full, and termination, Collateralization or expiration of all Letters of
      Credit:

     

    
      	SECTION
              8.1   	
              Fixed
                Charge Coverage Ratio

            

    

     

    At
      all
      times after the first day (the “Trigger
      Date”)
      on
      which the difference
      between
      (i) the lesser
      of (A)
      the Borrowing Base, and (B) the Maximum Amount of the Revolving Facility, and
      (ii) the sum
      of (A)
      the aggregate outstanding amount of the Revolving Credit Loans, and (B) the
      aggregate face amount of the Letters of Credit, is less than $10,000,000 (with
      the payment of accounts payable by the Borrower to be at all times consistent
      with the Borrower’s normal past historical practices), the Fixed Charge Coverage
      Ratio for each trailing twelve-month period beginning with the twelve-month
      period which ends in the fiscal quarter in which the Trigger Date occurs shall
      not be less than one to one.

     

    ARTICLE
      IX.

    EVENTS
      OF DEFAULT

     

    
      	SECTION
              9.1   	
              Events
                of Default

            

    

     

    The
      occurrence of any of the following events shall constitute an “Event
      of Default”:

     

    (a)
        the
      Borrower shall fail to pay any principal, interest, fees, expenses or other
      Obligations when payable, whether at stated maturity, by acceleration, or
      otherwise; or

     

    
      
        
        

      

      
        -61-

        
          

        

      

      
        
        

      

    

     

    (b)
        any
      Loan
      Party shall (i) default in the performance or observance of any agreement,
      covenant, condition, provision or term contained in Section 2.3, 2.4, 2.6,
      7.1(a)(i), 7.1(c), 7.1(f), 7.1(g)(ii), 7.1(h), 7.1(i), 7.1(k), 7.1(m), 7.1(p),
      7.1(q), 7.1(s), 7.1(t), 7.2, 8.1, 11.4 or 11.7(a) or Article III hereof; or
      (ii) default in the performance or observance of any agreement, covenant,
      condition, provision or term contained in this Agreement or any other Loan
      Document (other than those referred to in Sections 9.1(a) and (b)(i)) and such
      default continues for a period of ten days; or

     

    (c)
        any
      Loan
      Party shall dissolve, wind up or otherwise cease to conduct its business;
      or

     

    (d)
        any
      Loan
      Party shall become the subject of an Insolvency Event; or

     

    (e)
        (i) any
      Loan Party shall fail to make any payment (whether of principal, interest or
      otherwise and regardless of amount) in respect of any Material Indebtedness
      when
      due (whether at scheduled maturity or by required prepayment, acceleration,
      demand or otherwise), or (ii) any event or condition occurs that results in
      any Material Indebtedness becoming due prior to its scheduled maturity or that
      enables or permits the holder or holders (or a trustee or agent on behalf of
      such holder or holders) to declare any Material Indebtedness to be due, or
      to
      require the prepayment, repurchase, redemption or defeasance thereof, prior
      to
      its scheduled maturity; or

     

    (f)
        any
      representation or warranty made by any Loan Party under or in connection with
      any Loan Document or amendment or waiver thereof, or in any Financial Statement,
      report, document or certificate delivered in connection therewith, shall prove
      to have been incorrect in any material respect when made or deemed made;
      or

     

    (g)
        any
      judgment or order for the payment of money which, when taken together with
      all
      other judgments and orders rendered against the Loan Parties taken together,
      exceeds $500,000 in the aggregate shall be rendered against the Loan Parties
      and
      shall not be stayed, vacated, bonded or discharged within thirty days;
      or

     

    (h)
        (i) less
      than 100% in the aggregate of the shares of the voting stock or other voting
      equity interests of the Subsidiaries of the Borrower shall be directly or
      indirectly owned or controlled by the Borrower, or more than thirty-seven and
      a
      half percent (37.5%) in the aggregate of such shares or equity interests shall
      become subject to any contractual, judicial or statutory Lien other than a
      contractual Lien in favor of the Agent, or (ii) James D. Calver, or a
      successor satisfactory to the Agent, shall cease to be the Chief Executive
      Officer of the Borrower, or Michael Shea, or a successor satisfactory to the
      Agent, shall cease to be the Chief Financial Officer of the Borrower;
      or

     

    (i)
        (i) a
      majority of the members of the board of directors (or similar governing body)
      of
      the Borrower shall not consist of Persons who were members of such board (or
      similar governing body) on the Closing Date or who were either nominated by
      such
      members or appointed by directors (or the equivalent) so nominated, or
      (ii) the occurrence of any change in control or similar event with respect
      to the Borrower as defined or described under any indenture or agreement in
      respect of Indebtedness to which the Borrower is a party; or

     

    
      
        
        

      

      
        -62-

        
          

        

      

      
        
        

      

    

     

    (j)
        any
      covenant, agreement or obligation of a Loan Party contained in or evidenced
      by
      any of the Loan Documents shall cease to be enforceable, or shall be determined
      to be unenforceable, in accordance with its terms; the Borrower or any other
      Loan Party shall deny or disaffirm its obligations under any of the Loan
      Documents or any Liens granted in connection therewith or shall otherwise
      challenge any of its obligations under any of the Loan Documents; or any Liens
      granted on any of the Collateral shall be determined to be void, voidable or
      invalid, are subordinated or are not given the priority contemplated by this
      Agreement or any other Loan Document; or

     

    (k)
        a
      Security Document shall for any reason cease to create a valid and perfected
      first priority Lien on the Collateral purported to be covered thereby;
      or

     

    (l)
        the
      independent public accountants for the Borrower shall deliver a Qualified
      opinion on any Financial Statement; or

     

    (m)
        more
      than
      fifteen percent (15%) in the aggregate of the Borrower’s vendors or suppliers
      (either in number or volume of business) shall have ceased, or shall have given
      notice that they intend to cease, supplying goods or rendering services to
      the
      Borrower and the Borrower shall not have obtained replacement goods or services
      in substantially the same amount from other sources on terms at least as
      favorable to the Borrower; or

     

    (n)
        the
      occurrence of any event or condition that, in the Required Lenders’ judgment,
      could reasonably be expected to have a Material Adverse Effect, or the
      occurrence of a Termination Event as to any Loan Party.

     

    
      	SECTION
              9.2   	
              Acceleration,
                Termination and Cash
                Collateralization

            

    

     

    Upon
      the
      occurrence and during the continuance of an Event of Default, the Agent may,
      or
      upon the request of the Required Lenders, the Agent shall take any or all of
      the
      following actions, without prejudice to the rights of the Agent to enforce
      its
      claims against the Borrower:

     

    (a)
        Acceleration.
      To
      declare all Obligations immediately due and payable (except with respect to
      any
      Event of Default with respect to a Loan Party specified in Section 9.1(d),
      in
      which case all Obligations shall automatically become immediately due and
      payable) without presentment, demand, protest or any other action or obligation
      of the Agent.

     

    (b)
        Termination
      of Commitments.
      To
      declare the Commitments immediately terminated (except with respect to any
      Event
      of Default with respect to a Loan Party set forth in Section 9.1(d), in which
      case the Commitments shall automatically terminate) and, at all times
      thereafter, any Loan made by a Lender or the Agent and any Letter of Credit
      caused to be issued by the Agent shall be in such Lender’s or the Agent’s sole
      and absolute discretion. Notwithstanding any such termination, until all
      Obligations shall have been fully and indefeasibly paid and satisfied, the
      Agent
      shall retain all rights under guaranties and all security in existing and future
      Receivables, Inventory, General Intangibles, Investment Property and Equipment
      of the Borrower and all other Collateral held by it hereunder and under the
      Security Documents, and the Borrower shall continue to turn over all Collections
      to the Agent.

    
      
        
        

      

      
        -63-

        
          

        

      

      
        
        

      

    

     

    (c)
        Cash
      Collateralization.
      With
      respect to all Letters of Credit outstanding at the time of the acceleration
      of
      the Obligations under Section 9.2(a) or otherwise at any time after the
      Expiration Date, the Borrower shall at such time deposit in a cash collateral
      account established by or on behalf of the Agent an amount equal to 105% of
      the
      aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts
      held in such cash collateral account shall be under the sole dominion and
      control of the Agent and applied by the Agent to the payment of drafts drawn
      under such Letters of Credit, and the balance, if any, in such cash collateral
      account, after all such Letters of Credit shall have expired or been fully
      drawn
      upon shall be applied to repay the other Obligations. After all such Letters
      of
      Credit shall have expired or been fully drawn upon and all Obligations shall
      have been satisfied, the balance, if any, in such cash collateral account shall
      be returned to the Borrower or to such other Person as may be lawfully entitled
      thereto.

     

    
      	SECTION
              9.3   	
              Other
                Remedies

            

    

     

    (a)
        Upon
      the
      occurrence and during the continuance of an Event of Default, the Agent shall
      have all rights and remedies with respect to the Obligations and the Collateral
      under applicable law and the Loan Documents, and the Agent may do any or all
      of
      the following:

     

    (i)
        remove
      for copying all documents, instruments, files and records (including the copying
      of any computer records) relating to the Borrower’s Receivables or use (at the
      expense of the Borrower) such supplies or space of the Borrower at the
      Borrower’s places of business necessary to administer, enforce and collect such
      Receivables including, without limitation, any supporting
      obligations;

     

    (ii)
        accelerate
      or extend the time of payment, compromise, issue credits, or bring suit on
      the
      Borrower’s Receivables (in the name of the Borrower or the Agent) and otherwise
      administer and collect such Receivables;

     

    (iii)
        sell,
      assign and deliver the Borrower’s Receivables with or without advertisement, at
      public or private sale, for cash, on credit or otherwise, subject to applicable
      law; and

     

    (iv)
        foreclose
      the security interests created pursuant to the Loan Documents by any available
      procedure, or take possession of any or all of the Collateral, without judicial
      process and enter any premises where any Collateral may be located for the
      purpose of taking possession of or removing the same.

     

    (b)
        The
      Agent
      may bid or become a purchaser at any sale, free from any right of redemption,
      which right is expressly waived by the Borrower. If notice of intended
      disposition of any Collateral is required by law, it is agreed that ten days’
notice shall constitute reasonable notification. The Borrower will assemble
      the
      Collateral in its possession and make it available at such locations as the
      Agent may specify, whether at the premises of the Borrower or elsewhere, and
      will make available to the Agent the premises and facilities of the Borrower
      for
      the purpose of the Agent’s taking possession of or removing the Collateral or
      putting the Collateral in saleable form. The Agent may sell the Collateral
      or
      any part thereof in one or more parcels at public or private sale, at any
      exchange, broker’s board or at any of the Agent’s offices or elsewhere, for
      cash, on credit or for future delivery, and upon such other terms as the Agent
      may deem commercially reasonable. The Agent shall not be obligated to make
      any
      sale of Collateral regardless of notice of sale having been given. The Agent
      may
      adjourn any public or private sale from time to time by announcement at the
      time
      and place fixed therefor, and such sale may, without further notice, be made
      at
      the time and place to which it was so adjourned. The Borrower hereby grants
      the
      Agent a license to enter and occupy any of the Borrower’s leased or owned
      premises and facilities, without charge, to exercise any of the Agent’s rights
      or remedies.

    
      
        
        

      

      
        -64-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              9.4   	
              License
                for Use of Software and Other Intellectual
                Property

            

    

     

    The
      Borrower hereby grants to the Agent a license or other right to use, without
      charge, all computer software programs, data bases, processes, trademarks,
      tradenames, copyrights, labels, trade secrets, service marks, advertising
      materials and other rights, assets and materials used by the Borrower in
      connection with its businesses or in connection with the
      Collateral.

     

    
      	SECTION
              9.5   	
              No
                Marshalling; Deficiencies; Remedies
                Cumulative

            

    

     

    The
      Agent
      shall have no obligation to marshal any Collateral or to seek recourse against
      or satisfaction of any of the Obligations from one source before seeking
      recourse against or satisfaction from another source. The net cash proceeds
      resulting from the Agent’s exercise of any of the foregoing rights to liquidate
      all or substantially all of the Collateral, including any and all collections
      (including, without limitation, Collections) (after deducting all of the Agent’s
      expenses related thereto), or otherwise, shall be applied by the Agent to such
      of the Obligations and in such order as the Agent shall elect in its sole and
      absolute discretion, whether due or to become due. The Borrower shall remain
      liable to the Agent and the Lenders for any deficiencies, and the Agent and
      the
      Lenders in turn agree to remit to the applicable Loan Party or its successor
      or
      assign any surplus resulting therefrom. All of the Agent’s and the Lenders’
remedies under the Loan Documents shall be cumulative, may be exercised
      simultaneously against any Collateral and any Loan Party or in such order and
      with respect to such Collateral or such Loan Party as the Agent may deem
      desirable, and are not intended to be exhaustive.

     

    
      	SECTION
              9.6   	
              Waivers

            

    

     

    .
      Except
      as may be otherwise specifically provided herein or in any other Loan Document,
      the Borrower hereby waives any right to a judicial or other hearing with respect
      to any action or prejudgment remedy or proceeding by the Agent to take
      possession, exercise control over, or dispose of any item of Collateral in
      any
      instance (regardless of where the same may be located) where such action is
      permitted under the terms of this Agreement or any other Loan Document or by
      applicable law or of the time, place or terms of sale in connection with the
      exercise of the Agent’s rights hereunder and also waives any bonds, security or
      sureties required by any statute, rule or other law as an incident to any taking
      of possession by the Agent of any Collateral. The Borrower also waives any
      damages (direct, consequential or otherwise) occasioned by the enforcement
      of
      the Agent’s rights under this Agreement or any other Loan Document including the
      taking of possession of any Collateral or the giving of notice to any account
      debtor or the collection of any Receivable of the Borrower. The Borrower also
      consents that the Agent may enter upon any premises owned by or leased to it
      without obligations to pay rent or for use and occupancy, through self-help,
      without judicial process and without having first obtained an order of any
      court. These waivers and all other waivers provided for in this Agreement and
      the other Loan Documents have been negotiated by the parties, and the Borrower
      acknowledges that it has been represented by counsel of its own choice, has
      consulted such counsel with respect to its rights hereunder and has freely
      and
      voluntarily entered into this Agreement and the other Loan Documents as the
      result of arm’s-length negotiations.

     

    
      
        
        

      

      
        -65-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              9.7   	
              Further
                Rights of the Agent

            

    

     

    (a)
        Further
      Assurances.
      The
      Borrower shall do all things and shall execute and deliver all documents and
      instruments reasonably requested by the Agent to protect or perfect any Lien
      (and the priority thereof) of the Agent on the Collateral. The Agent is
      authorized to describe the Collateral covered by any financing statement filed
      by it under the Code as “all assets” or “all personal property” of the
      applicable Borrower or by using a similar supergeneric description.

     

    (b)
        Insurance;
      Etc.
      If the
      Borrower shall fail to purchase or maintain insurance (where applicable), or
      to
      pay any tax, assessment, governmental charge or levy, except as the same may
      be
      otherwise permitted hereunder or which is being contested in good faith by
      appropriate proceedings and for which adequate reserves have been established
      in
      accordance with GAAP, or if any Lien prohibited hereby shall not be paid in
      full
      and discharged or if the Borrower shall fail to perform or comply with any
      other
      covenant, promise or obligation to the Agent or the Lenders hereunder or under
      any other Loan Document, the Agent may (but shall not be required to) perform,
      pay, satisfy, discharge or bond the same for the account of the Borrower, and
      all amounts so paid by the Agent or the Lenders shall be treated as a Revolving
      Credit Loan comprised of Base Rate Advances hereunder and shall constitute
      part
      of the Obligations.

     

    
      	SECTION
              9.8   	
              Interest
                and Letter of Credit Fees After Event of
                Default

            

    

     

    The
      Borrower agrees and acknowledges that the additional interest and fees that
      may
      be charged under Section 4.2 (a) are an inducement to the Agent and the
      Lenders to make Advances and to the Agent to cause Letters of Credit to be
      issued hereunder and that the Agent and the Lenders would not consummate the
      transactions contemplated by this Agreement without the inclusion of such
      provisions, (b) are fair and reasonable estimates of the Agent’s and the
      Lenders’ costs of administering the credit facility upon an Event of Default,
      and (c) are intended to estimate the Agent’s and the Lenders’ increased
      risks upon an Event of Default.

     

    ARTICLE
      X.

    THE
      AGENT

     

    
      	SECTION
              10.1   	
              Appointment
                of Agent

            

    

     

    (a)
        Each
      Lender hereby designates CitiCapital as its agent and irrevocably authorizes
      it
      to take action on such Lender’s behalf under the Loan Documents and to exercise
      the powers and to perform the duties described therein and to exercise such
      other powers as are reasonably incidental thereto. The Agent may perform any
      of
      its duties by or through its agents or employees.

     

    (b)
        The
      provisions of this Article are solely for the benefit of the Agent and the
      Lenders, and the Borrower shall not have any rights as third party beneficiaries
      of any of the provisions hereof. The Agent shall act solely as agent of the
      Lenders and assume no obligation toward or relationship of agency or trust
      with
      or for the Borrower.

     

    
      
        
        

      

      
        -66-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              10.2   	
              Nature
                of Duties of Agent

            

    

     

    .
      The
      Agent shall have no duties or responsibilities except those expressly set forth
      in the Loan Documents. Neither the Agent nor any of its officers, directors,
      employees or agents shall be liable for any action taken or omitted by it or
      them as such hereunder or in connection herewith, unless caused by its or their
      gross negligence or willful misconduct. The duties of the Agent shall be
      mechanical and administrative in nature. The Agent does not have a fiduciary
      relationship with or any implied duties to any Lender or any participant of
      any
      Lender.

     

    
      	SECTION
              10.3   	
              Lack
                of Reliance on Agent

            

    

     

    (a)
        Independently
      and without reliance upon the Agent, each Lender, to the extent it deems
      appropriate, has made and shall continue to make (i) its own independent
      investigation of the financial or other condition and affairs of the Borrower
      and the other Loan Parties in connection with taking or not taking any action
      related hereto and (ii) its own appraisal of the creditworthiness of the
      Borrower and the other Loan Parties, and, except as expressly provided in this
      Agreement, the Agent shall have no duty or responsibility, either initially
      or
      on a continuing basis, to provide any Lender with any credit or other
      information with respect thereto, whether coming into its possession before
      the
      making of the initial Loans or the issuance of the Initial Letter of Credit
      or
      at any time or times thereafter.

     

    (b)
        The
      Agent
      shall not be responsible to any Lender for any recitals, statements,
      information, representations or warranties herein or in any document,
      certificate or other writing delivered in connection herewith or for the
      execution, effectiveness, genuineness, validity, enforceability, collectibility,
      priority or sufficiency of this Agreement or the Revolving Credit Notes or
      the
      financial or other condition of the Borrower and the other Loan Parties. The
      Agent shall not be required to make any inquiry concerning either the
      performance or observance of any of the terms, provisions or conditions of
      this
      Agreement or any other Loan Document, the financial condition of the Borrower
      and the other Loan Parties, or the existence or possible existence of any
      Default or Event of Default.

     

    
      	SECTION
              10.4   	
              Certain
                Rights of the Agent

            

    

     

    The
      Agent
      may request instructions from the Required Lenders at any time. If the Agent
      requests instructions from the Required Lenders with respect to any action
      or
      inaction, it shall be entitled to await instructions from the Required Lenders.
      No Lender shall have any right of action based upon the Agent’s action or
      inaction in response to instructions from the Required Lenders.

     

    
      	SECTION
              10.5   	
              Reliance
                by Agent

            

    

     

    The
      Agent
      may rely upon any written or telephonic communication it believes to be genuine
      and to have been signed, sent or made by the proper Person. The Agent may obtain
      the advice of legal counsel (including counsel for the Borrower with respect
      to
      matters concerning the Borrower), independent public accountants and other
      experts selected by it and shall have no liability for any action or inaction
      taken or omitted to be taken by it in good faith based upon such
      advice.

     

    
      	SECTION
              10.6   	
              Indemnification
                of Agent

            

    

     

    To
      the
      extent the Agent is not reimbursed and indemnified by the Borrower, each Lender
      will reimburse and indemnify the Agent to the extent of such Lender’s Pro Rata
      Share (determined as of the time that such indemnity payment is sought) for
      any
      and all liabilities, obligations, losses, damages, penalties, actions,
      judgments, suits, costs, expenses (including counsel fees and disbursements)
      or
      disbursements of any kind or nature whatsoever which may be imposed on, incurred
      by or asserted against the Agent in performing its duties hereunder or otherwise
      relating to the Loan Documents unless resulting from the Agent’s gross
      negligence or willful misconduct. The agreements contained in this Section
      shall
      survive any termination of this Agreement and the other Loan Documents and
      the
      payment in full of the Obligations. 

    
      
        
        

      

      
        -67-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              10.7   	
              The
                Agent in Its Individual
                Capacity

            

    

     

    In
      its
      individual capacity, the Agent shall have the same rights and powers hereunder
      as any other Lender or holder of a Revolving Credit Note or participation
      interest and may exercise the same as though it was not performing the duties
      specified herein. The terms “Lenders,” “Required Lenders,” “holders of Revolving
      Credit Notes,” or any similar terms shall, unless the context clearly otherwise
      indicates, include CitiCapital in its individual capacity. The Agent and its
      Affiliates may accept deposits from, lend money to, acquire equity interests
      in,
      and generally engage in any kind of banking, trust, financial advisory or other
      business with the Borrower or any Affiliate of the Borrower as if it were not
      performing the duties specified herein, and may accept fees and other
      consideration from the Borrower for services in connection with this Agreement
      and otherwise without having to account for the same to the
      Lenders.

     

    
      	SECTION
              10.8   	
              Holders
                of Revolving Credit Notes

            

    

     

    .
      The
      Agent may deem and treat the payee of any Revolving Credit Note as the owner
      thereof for all purposes hereof unless and until a written notice of the
      assignment or transfer thereof shall have been filed with the Agent. Any
      request, authority or consent of any Person who, at the time of making such
      request or giving such authority or consent, is the holder of any Revolving
      Credit Note, shall be conclusive and binding on any subsequent holder,
      transferee or assignee of such Revolving Credit Note or of any Revolving Credit
      Note or Revolving Credit Notes issued in exchange therefor.

     

    
      	SECTION
              10.9   	
              Successor
                Agent

            

    

     

    (a)
        The
      Agent
      may, upon twenty Business Days’ notice to the Lenders and the Borrower, resign
      by giving written notice thereof to the Lenders and the Borrower. Any such
      resignation shall be effective upon the appointment of a successor
      Agent.

     

    (b)
        Upon
      receipt of notice of resignation by the Agent, the Required Lenders may appoint
      a successor agent which shall also be a Lender. If a successor agent has not
      accepted its appointment within fifteen Business Days, then the retiring agent
      may, on behalf of the Lenders, appoint a successor agent which shall be subject
      to the written approval of the Borrower, which approval shall not be
      unreasonably withheld and shall be delivered to the Required Lenders within
      ten
      Business Days after the Borrower’s receipt of notice of a proposed successor
      agent; provided,
      however,
      that
      the Borrower’s approval shall not be required if a Default or Event of Default
      has occurred and is continuing.

     

    (c)
        Upon
      its
      acceptance of the agency hereunder, such successor agent shall succeed to and
      become vested with all the rights, powers, privileges and duties of the retiring
      agent, and the retiring agent shall be discharged from its duties and
      obligations under this Agreement. The retiring agent shall continue to have
      the
      benefit of the provisions of this Article for any action or inaction while
      it
      was agent.

     

    
      
        
        

      

      
        -68-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              10.10   	
              Collateral
                Matters

            

    

     

    (a)
        Except
      as
      otherwise set forth herein, any action or exercise of powers by the Agent
      provided under the Loan Documents, together with such other powers as are
      reasonably incidental thereto, shall be deemed authorized by and binding upon
      all of the Lenders. At any time and without notice to or consent from any
      Lender, the Agent may take any action necessary or advisable to perfect and
      maintain the perfection of the Liens upon the Collateral.

     

    (b)
        The
      Agent
      is authorized to release any Lien granted to or held by it upon any Collateral
      (i) upon termination of the Commitments, termination or Collateralization
      of all outstanding Letters of Credit and payment and satisfaction of all of
      the
      Obligations, (ii) required to be delivered from permitted sales of
      Collateral hereunder, if any, upon receipt of the proceeds by the Agent (or,
      if
      permitted hereunder, the Borrower) or (iii) if the release can be and is
      approved by the Required Lenders. The Agent may request and the Lenders will
      provide confirmation of the Agent’s authority to release particular types or
      items of Collateral.

     

    (c)
        Upon
      any
      sale or transfer of Collateral which is expressly permitted pursuant to the
      terms of this Agreement, or consented to in writing by the Required Lenders
      or
      all of the Lenders, as applicable, and upon at least five Business Days’ prior
      written request by the Borrower, the Agent shall (and is hereby irrevocably
      authorized by the Lenders to) execute such documents as may be necessary to
      evidence the release of the Liens granted to the Agent for the benefit of the
      Lenders herein or pursuant hereto upon the Collateral that was sold or
      transferred, provided
      that
      (i) the Agent shall not be required to execute any such document on terms
      which, in the Agent’s opinion, would expose the Agent to liability or create any
      obligation or entail any consequence other than the release of such Liens
      without recourse or warranty, and (ii) such release shall not in any manner
      discharge, affect or impair the Obligations or any Liens upon (or obligations
      of
      the Borrower in respect of) all interests retained by the Borrower, including
      (without limitation) the proceeds of the sale, all of which shall continue
      to
      constitute part of the Collateral. In the event of any sale or transfer of
      Collateral, or any foreclosure with respect to any of the Collateral, the Agent
      shall be authorized to deduct all of the expenses reasonably incurred by the
      Agent from the proceeds of any such sale, transfer or foreclosure.

     

    (d)
        The
      Agent
      shall not have any obligation to assure that the Collateral exists or is owned
      by the Borrower, that the Collateral is cared for, protected or insured, or
      that
      the Liens on the Collateral have been created or perfected or have any
      particular priority. With respect to the Collateral, the Agent may act in any
      manner it may deem appropriate, in its sole discretion, given CitiCapital’s own
      interest in the Collateral as one of the Lenders, and it shall have no duty
      or
      liability whatsoever to the Lenders with respect thereto, except for its gross
      negligence or willful misconduct.

     

    
      	SECTION
              10.11   	
              Actions
                with Respect to Defaults

            

    

     

    In
      addition to the Agent’s right to take actions on its own accord as permitted
      under this Agreement, the Agent shall take such action with respect to an Event
      of Default as shall be directed by the Required Lenders. Until the Agent shall
      have received such directions, the Agent may act or not act as it deems
      advisable and in the best interests of the Lenders.

     

    
      
        
        

      

      
        -69-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              10.12   	
              Delivery
                of Information

            

    

     

    The
      Agent
      shall not be required to deliver to any Lender originals or copies of any
      documents, instruments, notices, communications or other information received
      by
      the Agent from the Borrower, the Required Lenders, any Lender or any other
      Person under or in connection with this Agreement or any other Loan Document
      except (i) as specifically provided in this Agreement or any other Loan
      Document and (ii) as specifically requested from time to time in writing by
      any Lender with respect to a specific document, instrument, notice or other
      written communication received by and in the possession of the Agent at the
      time
      of receipt of such request and then only in accordance with such specific
      request.

     

    ARTICLE
      XI.

    GENERAL
      PROVISIONS

     

    
      	SECTION
              11.1   	
              Notices

            

    

     

    Except
      as
      otherwise provided herein, all notices and other communications hereunder shall
      be in writing and sent by certified or registered mail, return receipt
      requested, by overnight delivery service, with all charges prepaid, by hand
      delivery, or by telecopier followed by a hard copy sent by regular mail, if
      to
      the Agent, then to CitiCapital Commercial Corporation, 450 Mamaroneck Avenue,
      Harrison, New York 10528, Attn.: Doreen M. Amado, Vice President, Telecopy:
      (914) 899-7861, with a copy to Robert Goldberg, Esq., General Counsel, Telecopy:
      (914) 899-7238; if to the Borrower, then to Hooper Holmes, Inc., 170 Mt.
      Airy Road, Basking Ridge, New Jersey 07920, Attn.: Michael Shea, Chief Financial
      Officer, Telecopy: (908) 953-6304, with a copy to Robert W. Jewett, Esq.,
      General Counsel, Telecopy: (908) 953-6304; and if to any Lender, then to its
      address specified in Schedule 1 or in the Assignment and Acceptance under
      which it became a party hereto; or, in each case, to such other address as
      the
      Agent, the Borrower or a Lender may specify to the other parties in the manner
      required hereunder. All such notices and correspondence shall be deemed given
      (i) if sent by certified or registered mail, three Business Days after being
      postmarked, (ii) if sent by overnight delivery service or by hand delivery,
      when
      received at the above stated addresses or when delivery is refused and (iii)
      if
      sent by telecopier transmission, when such transmission is
      confirmed.

     

    
      	SECTION
              11.2   	
              Delays;
                Partial Exercise of Remedies

            

    

     

    No
      delay
      or omission of the Agent or any Lender to exercise any right or remedy hereunder
      shall impair any such right or operate as a waiver thereof. No single or partial
      exercise by the Agent or any Lender of any right or remedy shall preclude any
      other or further exercise thereof, or preclude any other right or
      remedy.

     

    
      	SECTION
              11.3   	
              Right
                of Setoff

            

    

     

    .
      In
      addition to and not in limitation of all rights of offset that the Agent, any
      Lender or any of their respective Affiliates may have under applicable law,
      and
      whether or not the Agent has made any demand or the Obligations of the Borrower
      have matured, the Agent, the Lenders and their respective Affiliates shall
      have
      the right to set off and apply any and all deposits (general or special, time
      or
      demand, provisional or final, or any other type) at any time held and any other
      Indebtedness at any time owing by the Agent, the Lenders or any of their
      respective Affiliates to or for the credit or the account of the Borrower or
      any
      of its Affiliates against any and all of the Obligations. In the event that
      the
      Agent or any Lender exercises any of its rights under this Section 11.3, the
      Agent or such Lender shall provide notice to the Borrower of such exercise,
      provided
      that the
      failure to give such notice shall not affect the validity of the exercise of
      such rights.

    
      
        
        

      

      
        -70-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              11.4   	
              Indemnification;
                Reimbursement of Expenses of
                Collection

            

    

     

    (a)
        The
      Borrower hereby agrees that, whether or not any of the transactions contemplated
      by this Agreement or the other Loan Documents are consummated, the Borrower
      will
      indemnify, defend and hold harmless (on an after-tax basis) the Agent, the
      Lenders, each issuer of a Letter of Credit and their respective successors,
      assigns, directors, officers, agents, employees, advisors, shareholders,
      attorneys and Affiliates (each, an “Indemnified
      Party”)
      from
      and against any and all losses, claims, damages, liabilities, deficiencies,
      obligations, fines, penalties, actions (whether threatened or existing),
      judgments, suits (whether threatened or existing) or expenses (including,
      without limitation, reasonable fees and disbursements of counsel, experts,
      consultants and other professionals) incurred by any of them (collectively,
      “Claims”)
      (except, in the case of each Indemnified Party, to the extent that any Claim
      is
      determined in a final and non-appealable judgment by a court of competent
      jurisdiction to have directly resulted from such Indemnified Party’s gross
      negligence or willful misconduct) arising out of or by reason of (i) any
      litigation, investigation, claim or proceeding related to (A) this
      Agreement, any other Loan Document or the transactions contemplated hereby
      or
      thereby, (B) any actual or proposed use by the Borrower of the proceeds of
      the Loans, (C) the issuance of any Letter of Credit or the acceptance or
      payment of any document or draft presented to any issuer thereof, or
      (D) the Agent’s or any Lender’s entering into this Agreement, the other
      Loan Documents or any other agreements and documents relating hereto (other
      than
      consequential damages and loss of anticipated profits or earnings), including,
      without limitation, amounts paid in settlement, court costs and the fees and
      disbursements of counsel incurred in connection with any such litigation,
      investigation, claim or proceeding, (ii) any remedial or other action taken
      or required to be taken by the Borrower in connection with compliance by the
      Borrower, or any of its properties, with any federal, state or local
      Environmental Laws and (iii) any pending, threatened or actual action,
      claim, proceeding or suit by any shareholder of
      the
      Borrower or any actual or purported violation of the Borrower’s Governing
      Documents or any other agreement or instrument to which the Borrower is a party
      or by which any of its properties is bound. In addition, the Borrower shall,
      whether or not any of the transactions contemplated by this Agreement or the
      other Loan Documents are consummated, upon demand, pay to the Agent all costs
      and expenses incurred by the Agent (including reasonable travel, per diem
      and
      other expenses related to the Agent’s auditing and collateral evaluation and the
      fees and disbursements of counsel and other professionals, including, without
      limitation, appraisers) in connection with the preparation, execution, delivery,
      administration (including, without limitation, all costs and expenses incurred
      by the Agent, including the fees and disbursements of counsel and other
      professionals, in connection with the Borrower’s compliance with Sections
      7.1(s), (t) and (u)), modification and amendment of the Loan Documents, and
      pay
      to the Agent and each Lender all costs and expenses (including the fees and
      disbursements of counsel and other professionals, including, without limitation,
      appraisers) paid or incurred by the Agent or such Lender in (A) enforcing
      or defending its rights under or in respect of this Agreement, the other Loan
      Documents or any other document or instrument now or hereafter executed and
      delivered in connection herewith, (B) collecting the Obligations or
      otherwise administering this Agreement, and (C) foreclosing or otherwise
      realizing upon the Collateral or any part thereof. If and to the extent that
      the
      obligations of the Borrower hereunder are unenforceable for any reason, the
      Borrower hereby agrees to make the maximum contribution to the payment and
      satisfaction of such obligations that is permissible under applicable
      law.

     

    
      
        
        

      

      
        -71-

        
          

        

      

      
        
        

      

    

     

    (b)
        The
      Borrower’s obligations under Sections 4.7 and 4.8 and this
      Section 11.4 shall survive any termination of this Agreement and the other
      Loan Documents, the termination, expiration or Collateralization of all Letters
      of Credit and the payment in full of the Obligations, and are in addition to,
      and not in substitution of, any of the other Obligations.

     

    
      	SECTION
              11.5   	
              Amendments,
                Waivers and Consents

            

    

     

    No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document, or consent to any departure by the Borrower therefrom, shall in any
      event be effective unless the same shall be in writing and signed by the
      Borrower and the Required Lenders (or by the Agent on their behalf) without
      taking into account the Commitments or Loans held by Defaulting Lenders, and
      then such amendment, waiver or consent shall be effective only in the specific
      instance and for the specific purpose for which given; provided,
      however,
      that no
      amendment, waiver or consent shall, unless in writing and signed by the Borrower
      and all the Lenders (other than any Defaulting Lender), do any of the following
      at any time: (a) change the number of Lenders that shall be required for
      the Lenders or any of them to take any action hereunder; (b) amend the
      definition of “Required Lenders”; (c) amend this Section 11.5;
      (d) reduce the amount of principal of, or interest on, or the interest rate
      applicable to, the Loans or any fees or other amounts payable hereunder; or
      (e) postpone any date on which any payment of principal of, or interest on,
      the Loans or any fees or other amounts payable hereunder is required to be
      made;
provided,
      further
      that no
      amendment, waiver or consent shall, unless in writing and signed by (i) a
      Lender, change the Pro Rata Share or increase the Commitment of such Lender,
      and
      (ii) the Agent, in addition to the Lenders required above, to take any such
      action that affects the rights or duties of the Agent under this Agreement
      or
      any other Loan Document. 

     

    
      	SECTION
              11.6   	
              Nonliability
                of Agent and Lenders

            

    

     

    The
      relationship among the Borrower and each Lender shall be solely that of borrower
      and lender. Neither the Agent nor any Lender shall have any fiduciary
      responsibilities to the Borrower. Neither the Agent nor any Lender undertakes
      any responsibility to the Borrower to review or inform the Borrower of any
      matter in connection with any phase of the Borrower’s business or
      operations.

     

    
      	SECTION
              11.7   	
              Assignments
                and Participations

            

    

     

    (a)
        Borrower
      Assignment.
      The
      Borrower shall not assign this Agreement or any of its rights or obligations
      hereunder without the prior written consent of the Agent and the Required
      Lenders, which they may withhold in their sole discretion.

    
      
        
        

      

      
        -72-

        
          

        

      

      
        
        

      

    

     

    (b)
        Lender
      Assignments.
      Each
      Lender may, with the consent of the Agent (not to be unreasonably withheld),
      assign to one or more Eligible Assignees (or, if an Event of Default has
      occurred and is continuing, to one or more other Persons) all or a portion
      of
      its rights and obligations under this Agreement, the Revolving Credit Notes
      and
      the other Loan Documents upon execution and delivery to the Agent, for its
      acceptance and recording in the Register, of an Assignment and Acceptance,
      together with surrender of any Revolving Credit Note or Revolving Credit Notes
      subject to such assignment and a processing and recordation fee payable to
      the
      Agent for its account of $3,500. No such assignment shall be for less than
      $5,000,000 of the Commitments or Loans unless it is to another Lender, and
      each
      such assignment shall be of a uniform, and not a varying, percentage of all
      rights and obligations in respect of the Commitments and the Revolving Credit
      Loans. Upon the execution and delivery to the Agent of an Assignment and
      Acceptance and the payment of the recordation fee to the Agent, from and after
      the date specified as the effective date in the Assignment and Acceptance (the
      “Acceptance
      Date”),
      (i) the assignee thereunder shall be a party hereto, and, to the extent
      that rights and obligations hereunder have been assigned to it under such
      Assignment and Acceptance, such assignee shall have the rights and obligations
      of a Lender hereunder and under the other Loan Documents, and (ii) the
      assignor thereunder shall, to the extent that rights and obligations hereunder
      have been assigned by it under such Assignment and Acceptance, relinquish its
      rights (other than any rights it may have under Sections 4.7, 4.8 and 11.4,
      which shall survive such assignment) and be released from its obligations under
      this Agreement and the other Loan Documents (and, in the case of an Assignment
      and Acceptance covering all or the remaining portion of an assigning Lender’s
      rights and obligations under this Agreement, such Lender shall cease to be
      a
      party hereto). 

     

    (c)
        Agreements
      of Assignee.
      By
      executing and delivering an Assignment and Acceptance, the assignee thereunder
      confirms and agrees as follows: (i) other than as provided in such
      Assignment and Acceptance, the assigning Lender makes no representation or
      warranty and assumes no responsibility with respect to any statements,
      warranties or representations made in or in connection with this Agreement
      or
      the execution, legality, validity, enforceability, genuineness, sufficiency
      or
      value of this Agreement, the Revolving Credit Notes, any other Loan Documents
      or
      any other instrument or document furnished pursuant hereto, (ii) such
      assigning Lender makes no representation or warranty and assumes no
      responsibility with respect to the financial condition of any Loan Party or
      the
      performance or observance by any Loan Party of any of its obligations under
      this
      Agreement, any other Loan Document or any other instrument or document furnished
      pursuant hereto, (iii) such assignee confirms that it is an Eligible
      Assignee and has received a copy of this Agreement, together with copies of
      the
      Financial Statements referred to in Section 6.1(i), the Financial Statements
      delivered pursuant to Section 7.1(k), if any, and such other documents and
      information as it has deemed appropriate to make its own credit analysis and
      decision to enter into such Assignment and Acceptance, (iv) such assignee
      will, independently and without reliance upon the Agent, such assigning Lender
      or any other Lender and based on such documents and information as it shall
      deem
      appropriate at the time, continue to make its own credit decisions in taking
      or
      not taking action under this Agreement or any other Loan Document, (v) such
      assignee appoints and authorizes the Agent to take such action as agent on
      its
      behalf and to exercise such powers under this Agreement and the other Loan
      Documents as are delegated to the Agent by the terms hereof, together with
      such
      powers as are reasonably incidental thereto, and (vi) such assignee agrees
      that it will perform in accordance with their terms all of the obligations
      which
      by the terms of this Agreement are required to be performed by it as a
      Lender.

     

    
      
        
        

      

      
        -73-

        
          

        

      

      
        
        

      

    

     

    (d)
        Agent’s
      Register.
      The
      Agent shall maintain a register of the names and addresses of the Lenders,
      their
      Commitments and the principal amount of their Loans (the “Register”).
      The
      Agent shall also maintain a copy of each Assignment and Acceptance delivered
      to
      and accepted by it and modify the Register to give effect to each Assignment
      and
      Acceptance. The entries in the Register shall be conclusive and binding for
      all
      purposes, absent manifest error, and the Borrower, the Agent and the Lenders
      may
      treat each Person whose name is recorded in the Register as a Lender hereunder
      for all purposes of this Agreement. The Register and copies of each Assignment
      and Acceptance shall be available for inspection by the Borrower or any Lender
      at any reasonable time and from time to time upon reasonable prior notice.
      Upon
      its receipt of each Assignment and Acceptance and surrender of the affected
      Revolving Credit Note or Revolving Credit Notes subject to such assignment,
      the
      Agent will give prompt notice thereof to the Borrower. Within five Business
      Days
      after its receipt of such notice, the Borrower shall execute and deliver to
      the
      Agent a new Revolving Credit Note to the order of the assignee in the amount
      of
      the applicable Commitment or Loans assumed by it and to the assignor in the
      amount of the applicable Commitment or Loans retained by it, if any. Such new
      Revolving Credit Note or Revolving Credit Notes shall re-evidence the
      indebtedness outstanding under the surrendered Revolving Credit Note or
      Revolving Credit Notes, shall be in an aggregate principal amount equal to
      the
      aggregate principal amount of such surrendered Revolving Credit Note or
      Revolving Credit Notes and shall be dated as of the Acceptance Date. The Agent
      shall be entitled to rely upon the Register exclusively for purposes of
      identifying the Lenders hereunder.

     

    (e)
        Lender
      Participations.
      Each
      Lender may sell participations to one or more parties (each, a “Participant”)
      in or
      to all or a portion of its rights and obligations under this Agreement, the
      Revolving Credit Notes and the other Loan Documents. Notwithstanding a Lender’s
      sale of a participation interest, such Lender’s obligations hereunder shall
      remain unchanged. The Borrower, the Agent, and the other Lenders shall continue
      to deal solely and directly with such Lender. No Lender shall grant any
      Participant the right to approve any amendment or waiver of this Agreement
      except to the extent such amendment or waiver would (i) increase the
      Commitment of the Lender from which the Participant purchased its participation
      interest; (ii) reduce the principal of, or rate or amount of interest on,
      the Loans subject to such participation interest; or (iii) postpone any
      date fixed for any payment of principal of, or interest on, the Loans subject
      to
      such participation interest. To the extent permitted by applicable law, each
      Participant shall also be entitled to the benefits of Section 11.3 as if it
      were
      a Lender, provided
      that
      such Participant agrees to be subject to the last sentence of Section 2.8(b)
      as
      if it were a Lender.

     

    (f)
        Securities
      Laws.
      Each
      Lender agrees that it will not make any assignment hereunder in any manner
      or
      under any circumstances that would require registration or qualification of,
      or
      filings in respect of, any Loan, Revolving Credit Note or other Obligation
      under
      the securities laws of the United States or of any other
      jurisdiction.

     

    (g)
        Information.
      In
      connection with their efforts to assign their rights or obligations or sell
      participations pursuant to Sections 11.7(b) and (e), the Agent and the Lenders
      may disclose any information they have, now or in the future, with respect
      to
      the business of the Loan Parties to prospective assignees or purchasers,
provided
      that
      such disclosure is subject to written confidentiality arrangements customary
      for
      assignment or participation transactions of such type.

    
      
        
        

      

      
        -74-

        
          

        

      

      
        
        

      

    

     

    (h)
        Pledge
      to Federal Reserve Bank.
      Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement to secure obligations of such Lender,
      including any pledge or assignment to secure obligations to a Federal Reserve
      Bank, and this Section shall not apply to any such pledge or assignment of
      a
      security interest, provided
      that no
      such pledge or assignment of a security interest shall release a Lender from
      any
      of its obligations hereunder or substitute any such pledgee or assignee for
      such
      Lender as a party hereto.

     

    
      	SECTION
              11.8   	
              Counterparts;
                Telecopied Signatures

            

    

     

    This
      Agreement and any waiver or amendment hereto may be executed in counterparts
      and
      by the parties hereto in separate counterparts, each of which when so executed
      and delivered shall be an original, but all of which shall together constitute
      one and the same instrument. This Agreement and each of the other Loan Documents
      may be executed and delivered by telecopier or other facsimile transmission
      all
      with the same force and effect as if the same was a fully executed and delivered
      original manual counterpart.

     

    
      	SECTION
              11.9   	
              Severability

            

    

     

    In
      case
      any provision in or obligation under this Agreement, any Revolving Credit Note
      or any other Loan Document shall be invalid, illegal or unenforceable in any
      jurisdiction, the validity, legality and enforceability of the remaining
      provisions or obligations, or of such provision or obligation in any other
      jurisdiction, shall not in any way be affected or impaired thereby.

     

    
      	SECTION
              11.10   	
              Maximum
                Rate

            

    

     

    Notwithstanding
      anything to the contrary contained elsewhere in this Agreement or in any other
      Loan Document, the parties hereto hereby agree that all agreements between
      them
      under this Agreement and the other Loan Documents, whether now existing or
      hereafter arising and whether written or oral, are expressly limited so that
      in
      no contingency or event whatsoever shall the amount paid, or agreed to be paid,
      to the Agent or any Lender for the use, forbearance, or detention of the money
      loaned to the Borrower and evidenced hereby or thereby or for the performance
      or
      payment of any covenant or obligation contained herein or therein, exceed the
      maximum non-usurious interest rate, if any, that at any time or from time to
      time may be contracted for, taken, reserved, charged or received on the
      Obligations, under the laws of the State of New York (or the laws of any other
      jurisdiction whose laws may be mandatorily applicable notwithstanding other
      provisions of this Agreement and the other Loan Documents), or under applicable
      federal laws which may presently or hereafter be in effect and which allow
      a
      higher maximum non-usurious interest rate than under the laws of the State
      of
      New York (or such other jurisdiction), in any case after taking into account,
      to
      the extent permitted by applicable law, any and all relevant payments or charges
      under this Agreement and the other Loan Documents executed in connection
      herewith, and any available exemptions, exceptions and exclusions (the
“Highest
      Lawful Rate”).
      If
      due to any circumstance whatsoever, fulfillment of any provision of this
      Agreement or any of the other Loan Documents at the time performance of such
      provision shall be due shall exceed the Highest Lawful Rate, then,
      automatically, the obligation to be fulfilled shall be modified or reduced
      to
      the extent necessary to limit such interest to the Highest Lawful Rate, and
      if
      from any such circumstance any Lender should ever receive anything of value
      deemed interest by applicable law which would exceed the Highest Lawful Rate,
      such excessive interest shall be applied to the reduction of the principal
      amount then outstanding hereunder or on account of any other then outstanding
      Obligations and not to the payment of interest, or if such excessive interest
      exceeds the principal unpaid balance then outstanding hereunder and such other
      then outstanding Obligations, such excess shall be refunded to the Borrower.
      All
      sums paid or agreed to be paid to the Lenders for the use, forbearance, or
      detention of the Obligations and other Indebtedness of the Borrower to the
      Lenders shall, to the extent permitted by applicable law, be amortized,
      prorated, allocated and spread throughout the full term of such Indebtedness,
      until payment in full thereof, so that the actual rate of interest on account
      of
      all such Indebtedness does not exceed the Highest Lawful Rate throughout the
      entire term of such Indebtedness. The terms and provisions of this Section
      shall
      control every other provision of this Agreement, the other Loan Documents and
      all other agreements among the parties hereto.

    
      
        
        

      

      
        -75-

        
          

        

      

      
        
        

      

    

     

    SECTION
      11.11  Entire
      Agreement; Successors and Assigns;
      Interpretation

     

    This
      Agreement and the other Loan Documents constitute the entire agreement among
      the
      parties, supersede any prior written and verbal agreements among them with
      respect to the subject matter hereof and thereof, and shall bind and benefit
      the
      parties and their respective successors and permitted assigns. This Agreement
      shall be deemed to have been jointly drafted, and no provision of it shall
      be
      interpreted or construed for or against a party because such party purportedly
      prepared or requested such provision, any other provision, or this Agreement
      as
      a whole.

     

    
      	SECTION
              11.12   	
              LIMITATION
                OF LIABILITY

            

    

     

    NEITHER
      THE AGENT NOR ANY LENDER SHALL HAVE ANY LIABILITY TO THE BORROWER (WHETHER
      SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE) FOR LOSSES SUFFERED BY THE
      BORROWER IN CONNECTION WITH, ARISING OUT OF, OR IN ANY WAY RELATED TO THE
      TRANSACTIONS OR RELATIONSHIPS CONTEMPLATED BY THIS AGREEMENT, OR ANY ACT,
      OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH, UNLESS IT IS DETERMINED
      BY
      A FINAL AND NONAPPEALABLE JUDGMENT OR COURT ORDER BINDING ON THE AGENT OR SUCH
      LENDER THAT THE LOSSES WERE THE RESULT OF ACTS OR OMISSIONS CONSTITUTING GROSS
      NEGLIGENCE OR WILLFUL MISCONDUCT OF THE AGENT OR SUCH LENDER. THE BORROWER
      HEREBY WAIVES ALL FUTURE CLAIMS AGAINST THE AGENT AND EACH LENDER FOR SPECIAL,
      INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES.

     

    
      	SECTION
              11.13   	
              GOVERNING
                LAW

            

    

     

    THE
      VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT AND THE OTHER LOAN
      DOCUMENTS AND ANY DISPUTE ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT
      OR
      ANY OF THE OTHER LOAN DOCUMENTS, WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY
      OR
      OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS
      OF LAW PROVISIONS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
      LAW) AND DECISIONS OF THE STATE OF NEW YORK.

     

    
      	SECTION
              11.14   	
              SUBMISSION
                TO JURISDICTION

            

    

     

    ALL
      DISPUTES BETWEEN OR AMONG THE BORROWER AND THE AGENT BASED UPON, ARISING OUT
      OF,
      OR IN ANY WAY RELATING TO (A) THIS AGREEMENT; (B) ANY OTHER LOAN
      DOCUMENT OR OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN OR AMONG
      THE
      BORROWER, THE AGENT AND A LENDER; OR (C) ANY CONDUCT, ACT OR OMISSION OF
      THE BORROWER, THE AGENT, A LENDER OR ANY OF THEIR RESPECTIVE DIRECTORS,
      OFFICERS, SHAREHOLDERS, EMPLOYEES, AGENTS, ATTORNEYS OR OTHER AFFILIATES, IN
      EACH CASE WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL
      BE
      RESOLVED ONLY BY STATE AND FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK AND
      THE
      COURTS TO WHICH AN APPEAL THEREFROM MAY BE TAKEN; PROVIDED,
      HOWEVER,
      THAT
      THE AGENT SHALL HAVE THE RIGHT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
      LAW, TO PROCEED AGAINST THE BORROWER OR ITS PROPERTY IN (A) ANY COURTS OF
      COMPETENT JURISDICTION AND VENUE AND (B) ANY LOCATION SELECTED BY THE AGENT
      TO ENABLE THE AGENT TO REALIZE ON SUCH PROPERTY, OR TO ENFORCE A JUDGMENT OR
      OTHER COURT ORDER IN FAVOR OF THE AGENT. THE BORROWER AGREES THAT IT WILL NOT
      ASSERT ANY PERMISSIVE COUNTERCLAIMS, SETOFFS OR CROSS-CLAIMS IN ANY PROCEEDING
      BROUGHT BY THE AGENT. THE BORROWER WAIVES ANY OBJECTION THAT IT MAY HAVE TO
      THE
      LOCATION OF THE COURT IN WHICH THE AGENT HAS COMMENCED A PROCEEDING, INCLUDING,
      WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON FORUM
      NON
      CONVENIENS.

    
      
        
        

      

      
        -76-

        
          

        

      

      
        
        

      

    

     

    
      	SECTION
              11.15   	
              SERVICE
                OF PROCESS

            

    

     

    THE
      BORROWER HEREBY IRREVOCABLY DESIGNATES CORPORATION SERVICES COMPANY,
      1133 AVENUE OF THE AMERICAS, SUITE 3100, NEW YORK, NEW YORK 10036-6710
      OR ITS SUCCESSOR AS THE DESIGNEE AND AGENT OF THE BORROWER TO RECEIVE, FOR
      AND
      ON BEHALF OF THE BORROWER, SERVICE OF PROCESS IN ANY LEGAL ACTION OR PROCEEDING
      WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT. IT IS UNDERSTOOD
      THAT
      A COPY OF SUCH PROCESS SERVED ON SUCH AGENT AT ITS ADDRESS WILL BE PROMPTLY
      FORWARDED BY MAIL TO THE BORROWER, BUT THE FAILURE OF THE BORROWER TO RECEIVE
      SUCH COPY SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS. NOTHING
      HEREIN SHALL AFFECT THE RIGHT OF THE AGENT TO SERVE LEGAL PROCESS IN ANY OTHER
      MANNER PERMITTED BY LAW.

     

    
      	SECTION
              11.16   	
              JURY
                TRIAL

            

    

     

    EACH
      OF
      THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
      LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON,
      ARISING OUT OF, OR IN ANY WAY RELATING TO (A) THIS AGREEMENT; (B) ANY
      OTHER LOAN DOCUMENT OR OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN
      OR AMONG THE BORROWER, THE AGENT AND A LENDER; OR (C) ANY CONDUCT, ACT OR
      OMISSION OF THE BORROWER, THE AGENT, A LENDER OR ANY OF THEIR RESPECTIVE
      DIRECTORS, OFFICERS, SHAREHOLDERS, EMPLOYEES, AGENTS, ATTORNEYS OR OTHER
      AFFILIATES, IN EACH CASE WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR
      OTHERWISE.

     

    
      	SECTION
              11.17   	
              Publicity

            

    

     

    The
      Agent
      may (a) publish in any trade or other publication or otherwise publicize to
      any
      third party (including its Affiliates) a tombstone, article, press release
      or
      similar material relating to the financing transactions contemplated by this
      Agreement, and (b) provide to industry trade organizations related information
      necessary and customary for inclusion in league table measurements.

     

    
      
        
        

      

      
        -77-

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has caused this Agreement to be executed by its proper and
      duly authorized officer as of the date first set forth above.

     

    BORROWER

     

    

     

    HOOPER
      HOLMES, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:
      Michael J. Shea

     

    Title:
      CFO

     

    LENDERS

     

    

     

    CITICAPITAL
      COMMERCIAL CORPORATION

     

    By:
      /s/
      Richard Gere

     

    Name:
      Richard Gere

     

    Title:
      SVP

     

    AGENT

     

    

     

    CITICAPITAL
      COMMERCIAL CORPORATION

     

    By:
      /s/
      Richard Gere

     

    Name:
      Richard Gere

     

    Title:
      SVP

     

     

    
      
        
        

      

      
        -0-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
        A

       

      REVOLVING
        CREDIT NOTE

       

      
        	
                $25,000,000.00

                 

              	
                Harrison,
                  New York

                October
                  10, 2006

              

      

      

       

      FOR
        VALUE
        RECEIVED, HOOPER HOLMES, INC., a New York corporation (the “Borrower”),
        hereby unconditionally promises to pay to the order of CITICAPITAL COMMERICAL
        CORPORATION, a Delaware corporation (the “Lender”),
        on
        the Expiration Date, at c/o CitiCapital Commercial Corporation, as agent
        for the
        Lender and the other lenders referred to below (the “Agent”)
        at the
        Agent’s office at 450 Mamaroneck Avenue, Harrison, New York 10528 or at such
        other location as the Agent may from time to time designate in writing, in
        lawful money of the United States of America, and in immediately available
        funds, the principal amount equal to the lesser of (a) TWENTY FIVE MILLION
        DOLLARS ($25,000,000.00)1 
        and
        (b) the aggregate unpaid principal amount of the Lender’s Pro Rata Share of
        the Revolving Credit Loans made to the Borrower under Section 2.1(a) of the
        Loan Agreement (as defined below). The Borrower further promises to pay interest
        in like money and funds to the Lender at the aforementioned address (or at
        such
        other location as the Agent may from time to time designate in writing) on
        the
        unpaid principal amount hereof from time to time outstanding from and including
        the date hereof until paid in full (both before and after judgment and both
        before and after the occurrence of an Event of Default) at the rates and
        on the
        dates determined in accordance with, and calculated in the manner set forth
        in,
        Sections 4.1 and 4.2 of the Loan Agreement. Capitalized terms used but not
        defined herein shall have the meanings given them in the Loan and Security
        Agreement dated as of October 10, 2006 (as amended, supplemented or
        otherwise modified from time to time, the “Loan
        Agreement”)
        among
        the Borrower, the Lender and the other lenders from time to time party thereto,
        and the Agent. 

       

      Whenever
        any payment to be made hereunder shall be stated to be due on a day that
        is not
        a Business Day, the payment shall be made on the next succeeding Business
        Day
        (except as otherwise provided in the Loan Agreement), and such extension
        of time
        shall be included in the computation of the amount of interest due
        hereunder.

       

      This
        Note
        is one of the Revolving Credit Notes referred to in the Loan Agreement, shall
        be
        entitled to the benefit of all terms and conditions of, and the security
        of all
        security interests, liens and rights granted under or in connection with,
        the
        Loan Agreement and the other Loan Documents, and is subject to optional and
        mandatory prepayment as provided therein. Upon the occurrence of any one
        or more
        of the Events of Default specified in the Loan Agreement, all amounts then
        remaining unpaid on this Note may be declared to be or may automatically
        become
        immediately due and payable as provided in the Loan Agreement.

       

      The
        Borrower acknowledges that the holder of this Note may assign, transfer or
        sell
        all or a portion of its rights and interests in, to and under this Note to
        one
        or more Persons as provided in the Loan Agreement and that such Persons shall
        thereupon become vested with all of the rights and benefits of the Lender
        in
        respect hereof as to all or that portion of this Note which is so assigned,
        transferred or sold.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      In
        the
        event of any conflict between the terms hereof and the terms and provisions
        of
        the Loan Agreement, the terms and provisions of the Loan Agreement shall
        control.

       

      The
        Borrower waives presentment, demand for payment, protest and notice of dishonor
        of this Note and authorizes the holder hereof, without notice, to increase
        or
        decrease the rate of interest on any amount owing under this Note in accordance
        with the Loan Agreement. The Borrower shall make all payments hereunder and
        under the Loan Agreement without setoff, deduction or counterclaim. No failure
        to exercise and no delay in exercising any rights hereunder on the part of
        the
        holder hereof shall operate as a waiver of such rights. This Note may not
        be
        changed or modified orally, but only by an agreement in writing, which is
        signed
        by the party or parties against whom enforcement of any waiver, change or
        modification is sought.

       

      THE
        VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS NOTE AND ANY DISPUTE ARISING
        OUT OF OR IN CONNECTION WITH THIS NOTE, WHETHER SOUNDING IN CONTRACT, TORT,
        EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO
        CONFLICTS OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
        YORK.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      EACH
        OF
        THE BORROWER AND, BY ITS ACCEPTANCE HEREOF, THE LENDER HEREBY WAIVES TO THE
        FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
        OR
        PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS NOTE
        OR
        ANY CONDUCT, ACTS OR OMISSIONS OF ANY OF THE BORROWER, THE LENDER OR ANY
        OF
        THEIR RESPECTIVE DIRECTORS, OFFICERS, SHAREHOLDERS, EMPLOYEES, AGENTS, ATTORNEYS
        OR OTHER AFFILIATES, IN EACH CASE WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY
        OR OTHERWISE.

       

       

      HOOPER
        HOLMES, INC.

       

      By:
        /s/
        Michael J. Shea

      Name:
        Michael J. Shea

      Title:
        CFO

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      C

     

    PLEDGE
      AGREEMENT

     

    PLEDGE
      AGREEMENT,
      dated
      as of October 10, 2006 (this “Agreement”),
      made
      by HOOPER HOLMES, INC. a New
      York
      corporation (the “Pledgor”),
      in
      favor of CITICAPITAL
      COMMERCIAL
      CORPORATION, a Delaware corporation, as
      agent
(the
      “Agent”)
      for
      the Lenders referred to below.

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the
      Pledgor is a party to the Loan and Security Agreement dated as of
      October 10, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Loan
      Agreement”;
      capitalized terms used herein and not otherwise defined herein shall have the
      meanings assigned to such terms in the Loan Agreement), among the Pledgor as
      borrower,
      the
      lenders from time to time party thereto (the “Lenders”)
      and the
Agent,
      pursuant to which the Lenders
      have
      agreed,
      among other things, to make Loans and other extensions of credit to the Pledgor,
      subject to the terms and conditions set forth in the Loan
      Agreement;

     

    WHEREAS,
      the
      Pledgor is the legal and beneficial owner of all of the Pledged Interests (as
      defined below); and

     

    WHEREAS,
      it is a
      condition precedent to the effectiveness of the Loan Agreement that the Pledgor
      shall have executed and delivered this Agreement in favor and for the benefit
      of
      the Agent.

     

    NOW,
      THEREFORE,
      in
      consideration of the promises contained herein and to induce the Lenders
      to enter
      into the Loan Agreement, the Pledgor hereby agrees as follows:

     

    SECTION
      1.  Pledge

     

    .
      The
      Pledgor hereby pledges to the Agent
      and
      grants to the Agent
      a lien
      on and security interest in all of the Pledgor’s right, title and interest in
      and to the following, whether now owned or at any time hereafter acquired by
      the
      Pledgor and wherever located (collectively, the “Collateral”):

     

    (a)
        all
      of
      the issued and outstanding shares of capital stock
      and
      membership interests specified in Schedule 1 and any other issued and
      outstanding shares of capital stock and membership interests, whether or not
      specified in Schedule 1 (collectively, the “Pledged
      Interests”),
      of
      the Subsidiaries of the Pledgor specified in Schedule 1 (the “Issuers”)
      and
      the certificates, if any, representing the Pledged Interests, and all dividends,
      distributions, cash, instruments and other property from time to time received,
      receivable or otherwise distributed in respect of or in exchange for any or
      all
      of the Pledged Interests, and all additional shares of capital stock and
      membership interests of or in the Issuers from time to time acquired in any
      manner by the Pledgor, and the certificates, if any, representing such
      additional shares of capital stock or membership interests, as the case may
      be,
      and all dividends, distributions, cash, instruments and other property from
      time
      to time received, receivable or otherwise distributed in respect of or in
      exchange for any or all of such additional shares of capital stock or membership
      interests, as the case may be; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

         

      

    

     

    (b)
        that
      certain promissory note, dated January 8, 2004, made by Medicals Direct Group
      Ltd., a company registered in England (“Medicals
      Direct”),
      in
      favor of the Pledgor in the original principal amount of $6,585,630.10 (as
      amended, supplemented or otherwise modified from time to time, the “Pledged
      Note”);

     

    (c)
        all
      loans, liabilities and other indebtedness, whether now or hereafter incurred,
      evidenced by the Pledged Note (collectively, the “Pledged
      Debt”),
      all
      other instruments evidencing the Pledged Debt, and all interest, cash,
      instruments, rights and other property from time to time received, receivable
      or
      otherwise distributed in respect of or in exchange for any or all of the Pledged
      Debt;

     

    (d)
        all
      additional loans, liabilities and other indebtedness from time to time owed
      to
      the Pledgor by any of its Subsidiaries, including, without limitation, Medicals
      Direct, whether now or hereafter incurred, and the instruments evidencing such
      indebtedness, and all interest, cash, instruments, rights and other property
      from time to time received, receivable or otherwise distributed in respect
      of or
      in exchange for any or all of such indebtedness; and 

     

    (e)
        all
      proceeds of any of the foregoing (including, without limitation, proceeds
      constituting any property of the types described above).

     

    The
      Pledgor has delivered to the Agent
      each of
      the certificates representing the Pledged Interests, accompanied by an undated
      stock power or comparable power with respect to each such certificate, executed
      in blank by the Pledgor. The Pledgor has also delivered to the Agent the Pledged
      Note, together with a duly executed indorsement thereof. The Pledgor shall
      deliver to the Agent, immediately upon receipt thereof by the Pledgor, all
      certificates, promissory notes and other instruments evidencing or representing
      the Collateral, which certificates, promissory notes and other instruments
      shall
      be in suitable form for transfer by delivery, or shall be accompanied by duly
      executed instruments of transfer or assignment in blank, all in form and
      substance satisfactory to the Agent. 

     

    SECTION
      2.   Security
      for Obligations

     

    The
      pledge of, and the grant of a lien on and security interest in, the Collateral
      hereunder secures the prompt and complete payment and performance when due
      (whether at the stated maturity, by acceleration or otherwise) of all of the
      Obligations.

     

    SECTION
      3.   Representations
      and Warranties

     

    The
      Pledgor represents and warrants as follows:

     

    (a)
        It
      is a
corporation
      duly organized, validly existing and in good standing under the laws of the
      State of New
      York,
      is duly qualified to do business and is in good standing as a foreign
      corporation in all other states where such qualification is required, except
      to
      the extent that failure so to qualify or to be in good standing could not
      reasonably be expected to have a Material Adverse Effect, and has all necessary
      corporate power and authority to enter into this Agreement.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

        
           

        

      

    

     

    (b)
        It
      has
      taken all requisite corporate action through its board of directors to authorize
      the execution and delivery of, and the performance of its obligations under,
      this Agreement, and this Agreement constitutes the legal, valid and binding
      obligation of the Pledgor enforceable against it in accordance with its terms,
      except as enforceability may be limited by bankruptcy, insolvency or similar
      laws affecting creditors’ rights generally.

     

    (c)
        It
      is the
      legal and beneficial owner of record of the Collateral free and clear, upon
      termination of the liens and security interests in favor of Wachovia Bank,
      National Association, Bank of America, N.A., and Brown Brothers Harriman &
Co. provided in connection with and as security for the Wachovia Loan, of any
      Lien, except for the Lien created by this Agreement. On the date hereof, no
      effective financing statement or other instrument similar in effect covering
      all
      or any part of the Collateral is on file in any recording office, except for
      financing statements arising out of the Wachovia Loan and certain filings
      related to equipment liens described in the Loan Agreement as Permitted
      Liens.

     

    (d)
        The
      pledge of the Collateral pursuant to this Agreement, together with the delivery
      to the Agent
      of the
      stock and membership interest certificates, if any, evidencing the Pledged
      Interests and the related stock powers and comparable powers, creates a valid
      and perfected first priority lien on and security interest in the Collateral,
      securing the payment and performance of the Obligations, and all filing and
      other actions necessary or desirable to perfect and protect such lien and
      security interest have been duly made or taken. 

     

    (e)
        Except
      in
      connection with terminating the Wachovia Loan and the liens and security
      interests arising therefrom, no authorization, approval, or other action by,
      and
      no notice to or filing with, any Person is required for (i) the pledge by
      the Pledgor of the Collateral pursuant to this Agreement, the grant by the
      Pledgor of the lien and security interest granted hereby or the execution,
      delivery or performance of this Agreement by the Pledgor, (ii) the
      perfection of the lien and security interest granted in this Agreement, or
      (iii) the exercise by the Agent
      of the
      rights or remedies provided for in this Agreement.

     

    (f)
        The
      execution, delivery and performance by the Pledgor of this Agreement, the
      granting of the lien and security interest hereunder and the exercise by the
      Agent
      of any
      or all of the remedies hereunder do not and will not violate, contravene or
      constitute a default under any contractual obligation to which the Pledgor
      or
      any Issuer is a party, except to the extent that the lien and security interest
      hereunder may violate the terms of the agreements creating the equipment liens
      referred to in Section 3(c), but the Pledgor does not believe any such
      violations would have a Material Adverse Effect.

     

    (g)
        The
      Pledged Interests constitute all of the issued and outstanding shares of capital
      stock or membership interests, as the case may be, of each Issuer.

     

    (h)
        All
      of
      the Pledged Interests are duly authorized, fully paid and nonassessable. All
      of
      the Pledged Interests are represented by certificates, except as to the Pledged
      Interests relating to Heritage Labs International, LLC (“HLI”).

     

    (i)
        The
      Pledged Debt constitutes all of the outstanding indebtedness of Medicals Direct
      owing to the Pledgor that is evidenced by a promissory note or other
      instrument.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

         

      

    

     

    (j)
        The
      exact
      correct name of the Pledgor and the jurisdiction of organization of the Pledgor
      are set forth in the introductory paragraph of this Agreement.

     

    SECTION
      4.   Further
      Assurances; Covenants

     

    (a)
        The
      Pledgor covenants and agrees that at any time and from time to time, at the
      expense of the Pledgor, the Pledgor will promptly execute and deliver all
      further instruments and documents, and take all further action, that may be
      necessary or desirable, or that the Agent
      may
      request, in order to perfect and protect any Liens granted or purported to
      be
      granted hereby or to enable the Agent
      to
      exercise and enforce its rights and remedies hereunder with respect to any
      Collateral. Without limiting the generality of the foregoing, the Pledgor will
      execute and file such financing or continuation statements, or amendments
      thereto, and such other instruments or notices, as may be necessary or
      desirable, or as the Agent
      may
      request, in order to perfect and preserve the Liens granted or purported to
      be
      granted hereby.

     

    (b)
        The
      Pledgor hereby authorizes the Agent
      to file
      one or more financing or continuation statements, and amendments thereto,
      relative to all or any part of the Collateral and to describe the Collateral
      as
“all assets” or “all personal property” or otherwise to use such a supergeneric
      collateral description in such financing statements and amendments. A carbon,
      photographic or other reproduction of this Agreement or any financing statement
      covering the Collateral or any part thereof shall be sufficient as a financing
      statement where permitted by law.

     

    (c)
        The
      Pledgor covenants and agrees that the Pledgor will not (i) sell, assign (by
      operation of law or otherwise) or otherwise dispose of, or grant any option
      with
      respect to, any of the Collateral, (ii) create or suffer to exist any Lien
      upon or with respect to any of the Collateral, except for the lien and security
      interest created by this Agreement, (iii) vote to enable, or take any other
      action to permit, any Issuer to issue any shares of capital stock, membership
      interests or other equity securities or interests of any nature or to issue
      any
      other securities or interests convertible into or granting the right to purchase
      or exchange for any shares of capital stock, membership interests or other
      equity securities or interests of any nature of any Issuer, or (iv) enter
      into any agreement or undertaking restricting the right or ability of the
Agent
      to sell,
      assign or transfer any of the Collateral.

     

    SECTION
      5.   Distributions;
      Voting; Compensation; Etc.

     

    (a)
        So
      long
      as no Default or Event of Default shall have occurred and be continuing, the
      Pledgor shall be entitled to exercise any and all voting and other consensual
      rights pertaining to the Collateral or any part thereof for any purpose not
      inconsistent with the terms of this Agreement and in a manner which does not
      impair any of the Collateral and to receive and retain any and all distributions
      and other amounts paid in respect of the Collateral; provided,
      however,
      that
      any and all:

     

    
      	(i)
                	
              dividends
                and distributions paid or payable other than in cash in respect of,
                and
                instruments and other property received, receivable or otherwise
                distributed in respect of, or in exchange for, any
                Collateral,

            

    

     

    
      	(ii)
                	
              dividends
                and distributions paid or payable in cash in respect of any Collateral
                in
                connection with a partial or total liquidation or dissolution of
                any
                Issuer, or in connection with a reduction of capital, capital surplus
                or
                paid-in-surplus of any Issuer, and

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

        
           

        

      

    

     

    
      	(iii)
                	
              cash
                paid, payable or otherwise distributed in exchange for, or in redemption
                of, any Collateral

            

    

     

    shall,
      if
      received by the Pledgor, be received in trust for the benefit of the
Agent,
      segregated from the other property or funds of the Pledgor, and forthwith
      delivered to the Agent
      as
      Collateral in the same form as so received (with any necessary
      endorsement).

     

    (b)
        Upon
      the
      occurrence and during the continuance of a Default or an Event of
      Default:

     

    
      	(i)
                	
              All
                rights of the Pledgor to receive any distributions that it would
                otherwise
                be authorized to receive and retain pursuant to Section 5(a) shall
                cease, and all such rights shall thereupon become vested in the
                Agent
                who shall thereupon have the sole right to receive and hold as Collateral
                such distributions. 

            

    

     

    
      	(ii)
                	
              Any
                and all distributions payable to the Pledgor in respect of the Collateral
                shall be received by the Pledgor in trust for the benefit of the
                Agent,
                segregated from other funds of the Pledgor and forthwith paid over
                to the
                Agent
                as
                Collateral in the same form as so received (with any necessary
                endorsement).

            

    

     

    (c)
        The
      Pledgor hereby irrevocably constitutes and appoints the Agent,
      with
      full power of substitution, as its true and lawful attorney-in-fact with full
      power and authority in the place and stead of the Pledgor and in the name of
      the
      Pledgor or otherwise, upon the occurrence and during the continuance of a
      Default or an Event of Default, to exercise the voting and other consensual
      rights which the Pledgor would otherwise be entitled to exercise pursuant to
      Section 5(a) (whereupon all rights of the Pledgor to exercise such rights
      shall cease). The Pledgor hereby ratifies all that such attorney shall lawfully
      do or cause to be done by virtue hereof. This power of attorney is coupled
      with
      an interest and is irrevocable.

     

    SECTION
      6.   Records,
      Etc

     

    The
      Pledgor shall keep its office and principal place of business and the place
      where it keeps its records concerning the Collateral at its address specified
      in
      Section 11.1
      of the
      Loan Agreement. The Pledgor will hold and preserve such records and, upon 48
      hours’ notice from the Agent,
      will
      permit representatives of the Agent
      at any
      time during normal business hours to inspect and make abstracts from such
      records. 

     

    SECTION
      7.   Agent
      Appointed Attorney-in-Fact; Irrevocable Authorization and Instruction to
      Issuers

     

    The
      Pledgor hereby appoints the Agent
      the
      Pledgor’s attorney-in-fact, with full authority in the place and stead of the
      Pledgor and in the name of the Pledgor or otherwise, from time to time in the
      Agent’s
      discretion, to take any action and to execute any instrument which the
Agent
      may deem
      necessary or advisable to accomplish the purposes of this Agreement, including,
      without limitation, to receive, endorse and collect all instruments made payable
      to the Pledgor representing any distribution in respect of the Collateral or
      any
      part thereof and to give full discharge for the same. The Pledgor hereby
      authorizes and instructs each Issuer to comply with any instruction received
      by
      it from the Agent
      in
      writing that (a) states that an Event of Default has occurred, and (b) is or
      appears to be otherwise in accordance with the terms of this Agreement, without
      any other or further instructions from the Pledgor, and the Pledgor agrees
      that
      each Issuer shall be fully protected in so complying. The Pledgor hereby
      ratifies all that such attorney shall lawfully do or cause to be done by virtue
      hereof. This power of attorney is coupled with an interest and is
      irrevocable.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

        
           

        

      

    

     

    SECTION
      8.   Agent
      May
      Perform

     

    If
      the
      Pledgor fails to perform any agreement contained herein, the Agent
      may
      perform, or cause performance of, such agreement, and the expenses of the
Agent
      incurred
      in connection therewith shall be payable by the Pledgor.

     

    SECTION
      9.   Reasonable
      Care; Return of Collateral

     

    (a)
        The
      Agent
      shall be
      deemed to have exercised reasonable care in the custody and preservation of
      the
      Collateral (including, without limitation, the certificates representing the
      Pledged Interests) in its possession if the Collateral is accorded treatment
      substantially equal to that which the Agent accords its own property, it being
      understood that the Agent
      shall
      not have the responsibility under this Agreement for taking any necessary steps
      to preserve rights against any parties with respect to any Collateral except
      as
      set forth in subsection (b) below.

     

    (b)
        Upon
      the
      indefeasible payment in full of all the Obligations, the expiration, termination
      or Collateralization of all Letters of Credit and the termination of the
      obligation of the Lenders and the Agent to make Loans and to cause
      Letters of Credit to be issued, respectively, the Agent
      shall
      return to the Pledgor all certificates representing the Pledged Interests and
      the stock powers and comparable powers therefor and all cash held by the
Agent
      as
      collateral hereunder which have not been disposed of, used or applied in
      connection with or toward the payment of the Obligations.

     

    SECTION
      10.   Remedies
      upon Default; Private Placement

     

    (a)
      If
      any
      Event of Default shall have occurred and be continuing, the Agent may exercise
      in respect of the Collateral, in addition to the other rights and remedies
      provided for herein or otherwise available to it, all the rights and remedies
      of
      a secured party under the Uniform Commercial Code of the State of New
      York
      (the
“Code”)
      and
      other applicable law, and the Agent
      may
      also, without notice except as specified below, sell the Collateral or any
      part
      thereof in one or more parcels at public or private sale, at any exchange or
      broker’s board or at any of the Agent’s
      offices or elsewhere, for cash, on credit or for future delivery, and upon
      such
      other terms as the Agent
      may deem
      commercially reasonable. The Pledgor agrees that, to the extent notice of sale
      shall be required by law, at least ten days’ notice to it of the time and place
      of any public or private sale shall constitute reasonable notification. The
      Agent
      shall
      not be obligated to make any sale of Collateral regardless of notice of sale
      having been given. The Agent
      may
      adjourn any public or private sale from time to time by announcement at the
      time
      and place fixed therefor, and such sale may, without further notice, be made
      at
      the time and place to which it was so adjourned. If an Event of Default shall
      have occurred and be continuing, the Agent
      may,
      pursuant to the power of attorney granted herein, transfer the Collateral on
      the
      books of the Pledgor and each Issuer, in whole or in part, to the name of the
      Agent
      or such
      other Person or Persons as the Agent
      may
      designate and take all such other and further actions as the Pledgor could
      have
      taken with respect to the Collateral which the Agent in its absolute discretion
      determines to be necessary or appropriate to accomplish the purposes of this
      Agreement.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

        
           

        

      

    

     

    (b)
        In
      view
      of the fact that federal and state securities laws may impose certain
      restrictions on the method by which a sale of all or any part of the Collateral
      may be effected after an Event of Default, the Pledgor agrees that, after the
      occurrence and during the continuation of an Event of Default, the Agent may,
      from time to time, attempt to sell all or any part of the Collateral by means
      of
      a private placement restricting the bidders and prospective purchasers to those
      who are qualified and will represent and agree that they are purchasing for
      investment only and not for distribution. In so doing, the Agent
      may
      solicit offers to buy all or any part of the Collateral from a limited number
      of
      Persons deemed by the Agent,
      in its
      sole discretion, to be financially responsible parties who might be interested
      in purchasing such Collateral. The Pledgor acknowledges and agrees that any
      such
      private placement may result in prices and other terms less favorable to the
      Agent than if such sale were a public sale. If the Agent
      solicits
      such offers from not less than three such Persons (none of which is an Affiliate
      of the Agent
      or any
      Lender), then the acceptance by the Agent
      of the
      highest offer obtained therefrom shall be deemed to be a commercially reasonable
      method of disposing of such Collateral; provided,
      however,
      that
      this subsection shall not be construed to impose a requirement that the
Agent
      solicit
      offers from three or more Persons for any such sale to be deemed commercially
      reasonable. The
      Agent
      shall be under no obligation to delay a sale of any of the Pledged Interests
      for
      the period of time necessary to permit an Issuer to register such securities
      for
      public sale under the Securities Act or under applicable state securities
      laws.

     

    SECTION
      11.  Registration
      Rights

     

    If
      the
      Agent shall determine to exercise its right to sell all or any of the Pledged
      Interests under Section 10, the Pledgor agrees that, upon request of the
      Agent, the Pledgor will:

     

    (a)
        execute
      and deliver all such instruments and documents, and do or cause to be done
      all
      such other acts and things, as may be necessary or, in the opinion of the Agent,
      advisable to register such Pledged Interests under the provisions of the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      and
      to cause the registration statement relating thereto to become effective and
      to
      remain effective for such period as prospectuses are required by law to be
      furnished, and to make all amendments and supplements thereto and to the related
      prospectus which, in the opinion of the Agent, are necessary or advisable,
      all
      in conformity with the requirements of the Securities Act and the rules and
      regulations of the Securities and Exchange Commission applicable
      thereto;

     

    (b)
        use
      its
      best efforts to qualify such Pledged Interests under the state securities or
      "Blue Sky" laws and to obtain all necessary governmental approvals for the
      sale
      of such Pledged Interests, as requested by the Agent;

     

    (c)
        use
      its
      best efforts to cause each Issuer to make available to its security holders,
      as
      soon as practicable, an earnings statement which will satisfy the provisions
      of
      Section 11(a) of the Securities Act; and

     

    (d)
        use
      its
      best efforts to do or cause to be done all such other acts and things as may
      be
      necessary to make such sale of such Pledged Interests or any part thereof valid
      and binding and in compliance with applicable law.

     

    The
      Pledgor further agrees to do or cause to be done all such other acts as may
      be
      reasonably requested to make any sale or sales of all or any portion of the
      Pledged Interests under this Section 11 valid and binding and in compliance
      with any and all other applicable requirements of law. Pledgor further agrees
      that a breach of any of the covenants contained in this Section 11 will
      cause irreparable injury to the Agent, that the Agent has no adequate remedy
      at
      law in respect of such breach and, as a consequence, that each and every
      covenant contained in this Section 11 shall be specifically enforceable
      against the Pledgor, and, to the maximum extent permitted by applicable law,
      the
      Pledgor hereby waives and agrees not to assert any defenses against an action
      for specific performance of such covenants except for a defense that no Event
      of
      Default has occurred. 

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

        
           

        

      

    

     

    SECTION
      12.  Securities
      Collateral

     

    The
      Pledgor acknowledges that the Pledged Interests are represented by certificates,
      except in the case of interests in HLI, and the Pledged Interests constitute
      “securities” as governed and defined by Article 8 of the Uniform Commercial
      Code in effect in any jurisdiction and are freely transferable and assignable.
      The Pledgor further agrees that it and each Issuer will at no time “opt out” of
      Article 8 through any amendment to an Issuer’s certificate of
      incorporation
      or
      operating agreement, as the case may be, or by any other means cause the Pledged
      Interests and the certificates representing any Pledged Interests to cease
      to be
“securities” under Article 8 of the Uniform Commercial Code. Any action taken to
      so “opt out” will be null and void and of no effect.

     

    SECTION
      13.  Registration
      of Pledge; Control of Collateral

     

    To
      assure
      the perfection of the security interest of the Agent in the Pledged Interests
      consisting of membership interests, concurrently with the execution and delivery
      of this Agreement, the Pledgor shall send written instructions in the form
      of
      Exhibit A hereto to each Issuer of membership interests and shall cause
      each such Issuer to deliver to the Agent the Confirmation Statement and
      Instruction Agreement in the form of Exhibit B hereto, pursuant to which each
      such Issuer will confirm that it has registered the pledge and security interest
      effected by this Agreement on its books and agrees to comply with instructions
      originated by the Agent in respect of the applicable Pledged Interests without
      further consent by the Pledgor or any other Person. From time to time, the
      Pledgor shall promptly provide replacement written instructions in the form
      of
      Exhibit A hereto to each Issuer of membership interests and shall cause
      each such Issuer to, and each such Issuer shall, deliver to the Agent the
      Confirmation Statement and Instruction Agreement in the form of Exhibit B to
      each assignee of the Agent, as requested by the Agent. The Pledgor agrees that
      the foregoing provisions of this Section 13 shall inure to the benefit of
      the Agent’s successors and assigns.

     

    SECTION
      14.  Application
      of Proceeds

     

    All
      money
      held by the Agent as Collateral and all cash proceeds received by the
Agent
      in
      respect of any sale of, collection from, or other realization upon, all or
      any
      part of the Collateral, shall be applied to the Obligations in such order as
      determined by the Agent
      in its
      sole discretion,
      subject
      to the terms of the Loan Agreement.

     

    SECTION
      15.  Indemnity
      and Expenses.

     

    (a)
        The
      Pledgor agrees to indemnify and hereby indemnifies the Agent
      from and
      against any and all claims, damages, losses, liabilities and expenses arising
      out of, in connection with, or resulting from, this Agreement (including,
      without limitation, enforcement of this Agreement), other than such as arise
      from the Agent’s
      gross
      negligence or willful misconduct.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

        
           

        

      

    

     

    (b)
        The
      Pledgor will upon demand pay to the Agent
      the
      amount of any and all reasonable expenses, including, without limitation, the
      reasonable fees and expenses of its counsel and of any experts and agents,
      that
      the Agent
      may
      incur in connection with (i) the administration of this Agreement, (ii) the
      custody or preservation of, or the sale of, collection from, or other
      realization upon, any of the Collateral, (iii) the exercise or enforcement
      of
      any of the rights of the Agent
      hereunder, (iv) the failure of the Pledgor to perform or observe any of the
      provisions hereof, or (v) any action taken by the Agent
      pursuant
      to this Agreement.

     

    SECTION
      16.  Amendments,
      Etc

     

    No
      amendment of any provision of this Agreement shall in any event be effective
      unless the same shall be in writing and signed by the Pledgor and the
Agent;
      no
      waiver of any provision of this Agreement, and no consent to any departure
      by
      the Pledgor herefrom, shall in any event be effective unless the same shall
      be
      in writing and signed by the Agent,
      and
      then such waiver or consent shall be effective only in the specific instance
      and
      for the specific purpose for which given. No failure to exercise and no delay
      in
      exercising on the part of the Agent
      any
      right, power or privilege under this Agreement shall operate as a waiver
      thereof. No single or partial exercise of any right, power or privilege under
      this Agreement shall preclude any other or further exercise thereof or the
      exercise of any other right, power or privilege.

     

    SECTION
      17.  Security
      Interest Absolute

     

    All
      rights of the Agent
      and the
      lien and security interest granted to it hereunder, and all obligations of
      the
      Pledgor hereunder, shall be absolute and unconditional irrespective
      of:

     

    (a)
        any
      lack
      of enforceability of the Loan Agreement or any of the other Loan Documents
      or
      any other agreement or instrument relating thereto;

     

    (b)
        any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Obligations, or any other amendment or waiver of or any consent
      to
      departure from the Loan Agreement or any of the other Loan Documents;

     

    (c)
        any
      taking and holding of collateral or guarantees for all or any of the
      Obligations, or any amendment, alteration, exchange, substitution, transfer,
      enforcement, waiver, subordination, termination or release of any collateral
      or
      such guarantees, or any non-perfection of any collateral, or any consent to
      departure from any such guaranty;

     

    (d)
        any
      manner of application of collateral, or proceeds thereof, to all or any of
      the
      Obligations, or the manner of sale or other disposition of any collateral or
      the
      collection of proceeds thereof;

     

    (e)
        any
      consent by the Agent
      to the
      restructure or refinancing of the Obligations or any portion
      thereof;

     

    (f)
        any
      other
      modification, compromise, settlement or release by the Agent,
      by
      operation of law or otherwise, of the Obligations or the liability of any
      obligor or guarantor, or of any collateral, in whole or in part, and any refusal
      by the Agent
      to
      accept any payment, in whole or in part, from any obligor or guarantor in
      connection with any of the Obligations, in each case whether or not with notice
      to, further assent by, or any reservation of rights against, the Pledgor;
      or

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

        
           

        

      

    

     

    (g)
        any
      other
      circumstance (including, without limitation, any statute of limitations) which
      might otherwise constitute a defense available to, or a discharge of, any third
      party pledgor or guarantor.

     

    SECTION
      18.  Addresses
      for Notices

     

    All
      notices
      and other communications
      hereunder shall be in writing and sent by certified or registered mail, return
      receipt requested, by overnight delivery service, with all charges prepaid,
      by
      hand delivery,
      or by
      telecopier,
      if to
      the Agent,
      then to
CitiCapital
      Commercial
      Corporation,
      450 Mamaroneck
      Avenue,
Harrison,
      New
      York 10528,
      Attn.:
Doreen M.
      Amado, Vice President,
      Telecopy:
      (914)
      899-7861,
      with a
      copy to Robert
      Goldberg, Esq., General Counsel,
      Telecopy: (914)
      899-7238;
      and if
      to the Pledgor, then to Hooper Holmes, Inc., 170 Mt. Airy Road, Basking Ridge,
      New Jersey 07920, Attn.:
      Michael
      Shea, Chief Financial Officer,
      Telecopy:
      (908)
      953-6304, with a copy to Robert
      W.
      Jewett, Esq., General Counsel, Telecopy: (908)
      953-6304; or, in each case, to such other address as the Agent
      or the
      Pledgor may
      specify to the other party in the manner required
      hereunder. All such notices and correspondence shall be deemed given (i) if
      sent
      by certified or registered mail, three Business Days after being postmarked,
      (ii) if sent by overnight delivery service or by hand delivery, when received
      at
      the above stated addresses or when delivery is refused, and (iii) if sent by
      telecopier transmission, when such
      transmission is confirmed.

     

    SECTION
      19.  Continuing
      Security Interest; Assignment

     

    This
      Agreement shall create a continuing lien on and security interest in the
      Collateral and shall (a) remain in full force and effect until released in
      accordance herewith, (b) be binding upon the Pledgor and its successors and
      assigns, and (c) inure, together with the rights and remedies of the
Agent
      hereunder, to the benefit of the Agent
      and its
      successors and assigns. Without limiting the generality of the foregoing clause
      (c), the Agent
      may
      assign or otherwise transfer all or any portion of its rights and obligations
      under this Agreement to any other Person which is an assignee of the
Agent
      under
      the Loan Agreement, and such other Person shall thereupon become vested with
      all
      the benefits in respect hereof granted to the Agent
      herein.

     

    SECTION
      20.  Telecopied
      Signature

     

    This
      Agreement may be executed and delivered by telecopier or other facsimile
      transmission all with the same force and effect as if the same were a fully
      executed and delivered original manual counterpart.

     

    SECTION
      21.  Governing
      Law

     

    THE
      VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT AND ANY DISPUTE
      ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER SOUNDING IN
      CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS
      (AS
      OPPOSED TO THE CONFLICTS OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF
NEW
      YORK.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

        
           

        

      

    

    IN
      WITNESS WHEREOF,
      the
      Pledgor has caused this Agreement to be executed by its proper and duly
      authorized CFO as of the date first set forth above.

     

    HOOPER
      HOLMES, INC.

     

    By: /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    Schedule
      1

     

    Description
      of Pledged Interests

     

    

     

    
      	
              Issuer

               

            	
              Type
                and Class of 

              Stock/Interest

               

            	
               

               

              Certificate
                No.

               

            	
              No.
                of 

              Shares/Units

               

            	
              Percentage
                

              of
                Total Outstanding 

              Interests

               

            
	
              Hooper
                Information Services, Inc.

               

            	
              common
                stock

               

            	 	 	
              100%

               

            
	
              Hooper
                Evaluations, Inc.

               

            	
              common
                stock

               

            	 	 	
              100%

               

            
	
              Mid
                America Agency Services, Incorporated

               

            	
              common
                stock

               

            	 	 	
              100%

               

            
	
              TEG
                Enterprises, Inc.

               

            	
              common
                stock

               

            	 	 	
              100%

               

            
	
              Heritage
                Labs International, LLC

               

            	
              limited
                liability company membership interest

               

            	 	 	
              100%

               

            
	
              Hooper
                Distribution Services, LLC

               

            	
              limited
                liability company membership interest

               

            	 	 	
              100%

               

            
	
              Medicals
                Direct Group Ltd.

               

            	
              ordinary
                shares

               

            	 	 	
              65%

               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGMENT
      AND CONSENT

     

    Each
      of
      the undersigned Issuers hereby acknowledges receipt of a copy of the Pledge
      Agreement, dated as of October 10, 2006 (as amended, supplemented or
      otherwise modified from time to time, the “Pledge
      Agreement”),
      made
      by Hooper Holmes, Inc., a New York corporation, in favor of CitiCapital
      Commercial
      Corporation, as agent. Each of the undersigned Issuers shall be bound by and
      comply with the terms of the Pledge Agreement insofar as such terms are
      applicable to the undersigned.

     

    HOOPER
      INFORMATION SERVICES, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    HOOPER
      EVALUATIONS, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    MID
      AMERICA AGENCY SERVICES, INCORPORATED

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    TEG
      ENTERPRISES, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    HERITAGE
      LABS INTERNATIONAL, LLC

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO 

     

    HOOPER
      DISTRIBUTION SERVICES, LLC

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    MEDICALS
      DIRECT GROUP LTD.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      A

     

    Instruction
      to Register Pledge

     

    October
      10, 2006

     

    
      	
              To:

            	
              Heritage
                Labs International LLC

            

    

    
      	 	
              c/o
                Hooper Holmes, Inc.

            

    

    
      	 	
              170
                Mt. Airy Road

            

    

    
      	 	
              Basking
                Ridge, New Jersey 07920

            

    

    

     

    In
      accordance with the requirements of the Pledge Agreement, dated as of
      October 10, 2006 (as amended, supplemented or otherwise modified from time
      to time, the “Pledge
      Agreement”;
      capitalized terms used herein and not otherwise defined herein shall have the
      meanings assigned to such terms in the Pledge Agreement), by Hooper Holmes,
      Inc., a New York corporation (the “Pledgor”),
      in
      favor of CitiCapital Commercial Corporation, a Delaware corporation, as agent
      (the “Agent”),
      you
      are hereby instructed, given that the Pledged Interests are “securities” or
“investment property” under the Uniform Commercial Code, to register the pledge
      of the Pledged Interests and the proceeds related thereto.

     

    You
      are
      hereby further authorized and instructed to execute and deliver to the Agent
      a
      Confirmation Statement and Instruction Agreement, substantially in the form
      of
      Exhibit B to the Pledge Agreement, and, to the extent provided more fully
      therein, to comply with instructions originated by the Agent in respect of
      the
      Pledged Interests without further consent by the undersigned or any other
      Person. 

     

    Very
      truly yours,

     

    HOOPER
      HOLMES, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:
      Michael J. Shea

     

    Title:
      CFO

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    Confirmation
      Statement and Instruction Agreement

     

    OCTOBER
      10, 2006

     

    CitiCapital
      Commercial Corporation, as Agent 

    450
      Mamaroneck Avenue

    Harrison,
      New York 10528

     

    Ladies
      and Gentlemen:

     

    This
      statement is to advise you that a pledge of the following limited liability
      company interests has been registered in the name of CitiCapital Commercial
      Corporation, as agent, as follows:

     

    The
      100%
      limited liability company interests of
      Hooper
      Holmes, Inc. in Heritage Labs International, LLC (the “Pledged
      Interests”).
      

     

    This
      also
      confirms that there are no liens or restrictions on the Pledged Interests and
      no
      adverse claims to which any of the limited liability company
      interests is
      or may
      be subject known to the undersigned, except for the security interest in your
      favor pursuant to the Pledge Agreement dated as October 10, 2006 by Hooper
      Holmes, Inc.

     

    The
      foregoing pledge was registered on October 10, 2006.

     

     

    Very
      truly yours,

     

    Heritage
      Labs International, LLC

     

     

    By:
      /s/
      Michael J. Shea

    Name:
      Michael J. Shea

    Title:
      CFO 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      EXHIBIT
        D

       

       

      SUBSIDIARY
        GUARANTY

       

      GUARANTY
        dated as
        of October 10, 2006 (this “Guaranty”)
        made
        by Hooper Information Services, Inc., a New Jersey corporation, Hooper
        Evaluations, Inc., a New York corporation, Mid America Agency Services, Inc.,
        a
        Nebraska corporation, TEG Enterprises, Inc., a Nebraska corporation, Heritage
        Labs International, LLC, a Kansas limited liability company (“Heritage
        Labs”),
        and
        Hooper Distribution Services, LLC, a New Jersey limited liability company
        (“Hooper
        Distribution”;
        each
        individually a “Guarantor”
and
        collectively the “Guarantors”),
        in
        favor of CitiCapital Commercial Corporation, a Delaware corporation, as Agent
        (the “Agent”)
        for
        the Lenders referred to below.

       

       

      W
        I T N E S S E T H
        :

       

       

      WHEREAS,
        Hooper
        Holmes, Inc., a New York corporation (the “Borrower”),
        is
        entering into a Loan and Security Agreement dated as of October 10, 2006
        (as amended, supplemented or otherwise modified from time to time, the
“Loan
        Agreement”;
        capitalized terms used herein and not otherwise defined herein shall have
        the
        meanings assigned to such terms in the Loan Agreement) among the Borrower,
        the
        lenders from time to time party thereto (the “Lenders”)
        and
        the Agent pursuant to which the Lenders have agreed, among other things,
        to make
        Loans to, and to provide for the issuance of Letters of Credit for the account
        of, the Borrower, subject to the terms and conditions set forth in the Loan
        Agreement;

       

      WHEREAS,
        the
        Borrower is the legal and beneficial owner of all of the outstanding shares
        or
        membership interests, as the case may be, of each of the
        Guarantors;

       

      WHEREAS,
        the
        Guarantors, as wholly-owned Subsidiaries of the Borrower, have an interest
        in
        the financial affairs and well-being of the Borrower and will benefit directly
        and indirectly from the transactions contemplated by the Loan
        Agreement;

       

      WHEREAS,
        it is a
        condition precedent to the effectiveness of the Loan Agreement that each
        of the
        Guarantors shall have executed and delivered this Guaranty in favor of and
        for
        the benefit of the Agent and the Lenders.

       

      NOW,
        THEREFORE,
        in
        consideration of the promises contained herein and to induce the Agent and
        the
        Lenders to enter into the Loan Agreement and to make Loans to, and to provide
        for the issuance of Letters of Credit for the account of, the Borrower
        thereunder, each of the Guarantors hereby agrees as follows:

       

      SECTION
        1.  Guaranty.
        

       

      (a)
          Each
        of
        the Guarantors hereby unconditionally and irrevocably (i) guarantees,
        jointly and severally, to the Agent and the Lenders the prompt and complete
        payment and performance when due (whether at stated maturity, by acceleration
        or
        otherwise) of all of the Obligations, and (ii) agrees, jointly and
        severally, to pay all costs and expenses incurred by the Agent and the Lenders
        (including the fees and disbursements of counsel and other professionals)
        in
        connection with (A) enforcing or defending the Agent’s and the Lenders’
rights under or in respect of this Guaranty or any other document or instrument
        now or hereafter executed and delivered in connection herewith, or
        (B) collecting the Obligations or otherwise administering this
        Guaranty.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

           

        

      

      

       

      (b)
          Each
        of
        the Guarantors hereby agrees that all payments hereunder will be paid to
        the
        Agent for the ratable benefit of the Lenders without setoff, deduction or
        counterclaim at the office of the Agent located at the address specified
        in
        Section 9 in U.S. dollars and in immediately available funds.

       

      (c)
          Anything
        contained in this Guaranty to the contrary notwithstanding, the amount of
        the
        obligations payable by any of the Guarantors under this Guaranty shall be
        the
        aggregate amount of the Obligations unless a court of competent jurisdiction
        adjudicates such Guarantor’s obligations to be invalid or unenforceable for any
        reason (including, without limitation, because of any applicable state or
        federal law relating to fraudulent conveyances or transfers), in which case
        the
        amount of the obligations payable by such Guarantor hereunder shall be limited
        to the maximum amount that could be guaranteed by such Guarantor without
        rendering such Guarantor’s obligations under this Guaranty invalid or
        unenforceable under such applicable law.

       

      SECTION
        2.  Guaranty
        Absolute.
        Each of
        the Guarantors guarantees that the Obligations will be paid strictly in
        accordance with the terms of the Loan Agreement, the Revolving Credit Notes
        and
        the other Loan Documents regardless of any law, regulation or order now or
        hereafter in effect in any jurisdiction affecting any of such terms or the
        rights of the Agent or the Lenders with respect thereto. The liability of
        each
        of the Guarantors under this Guaranty shall be absolute and unconditional
        irrespective of:

       

      (a)
          any
        lack
        of validity, regularity or enforceability of the Loan Agreement or any other
        Loan Document;

       

      (b)
          any
        lack
        of validity, regularity or enforceability of this Guaranty;

       

      (c)
          any
        change in the time, manner or place of payment of, or in any other term of,
        all
        or any of the Obligations, or any other amendment or waiver of or any consent
        to
        departure from the Loan Agreement or any other Loan Document;

       

      (d)
          any
        exchange, release or non-perfection of any security interest in any collateral,
        or any release or amendment or waiver of or consent to departure from any
        other
        guaranty, for all or any of the Obligations;

       

      (e)
          any
        failure on the part of the Agent or any of the Lenders or any other Person
        to
        exercise, or any delay in exercising, any right under the Loan Agreement
        or any
        other Loan Document; or 

       

      (f)
          any
        other
        circumstance which might otherwise constitute a defense available to, or
        a
        discharge of, the Borrower, any of the Guarantors or any other guarantor
        with
        respect to the Obligations (including, without limitation, all defenses based
        on
        suretyship or impairment of collateral, and all defenses that the Borrower
        may
        assert to the repayment of the Obligations, including, without limitation,
        failure of consideration, breach of warranty, payment, statute of frauds,
        bankruptcy, lack of legal capacity, statute of limitations, lender liability,
        accord and satisfaction, and usury), this Guaranty and the obligations of
        the
        Guarantors under this Guaranty.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

           

        

      

       

      Each
        of
        the Guarantors hereby agrees that if the Borrower, any of the Guarantors
        or any
        other guarantor of all or a portion of the Obligations is the subject of
        a
        bankruptcy case under the Bankruptcy Code, such Guarantor will not assert
        the
        pendency of such case or any order entered therein as a defense to the timely
        payment of the Obligations. Each of the Guarantors hereby waives notice of
        or
        proof of reliance by the Agent and the Lenders upon this Guaranty, and the
        Obligations shall conclusively be deemed to have been created, contracted,
        incurred, renewed, extended, amended or reduced (as to the Borrower only)
        in
        reliance upon this Guaranty. Each of the Guarantors hereby agrees that this
        Guaranty is a guaranty of payment and not collection.

       

      SECTION
        3.  Waiver.
        Each of
        the Guarantors hereby waives (a) promptness, diligence, notice of
        acceptance and any other notice or demand of any kind with respect to any
        of the
        Obligations and any of the amounts payable under Section 1(a)(ii) or that
        may be
        required to be given under any Requirement of Law, and (b) any requirement
        that the Agent or any of the Lenders protect, secure, perfect or insure any
        Lien
        or any property subject thereto or exhaust any right to take any action against
        the Borrower or any other Person or any collateral.

       

      SECTION
        4.  Subrogation.
        Each of
        the Guarantors hereby agrees that it will not exercise or assert any rights,
        claims, defenses or rights of setoff which it may acquire against the Borrower
        or any other guarantor of all or part of the Obligations that arise from
        the
        existence, payment, performance or enforcement of its obligations hereunder
        (including, without limitation, any rights or claims of subrogation,
        reimbursement or contribution), until the termination of the Commitments,
        the
        indefeasible payment in full in cash of the Obligations and the termination,
        Collateralization or expiration of all Letters of Credit. If any amount shall
        be
        paid to any Guarantor in violation of the immediately preceding sentence,
        such
        amount shall be held in trust for the benefit of the Agent for the ratable
        benefit of the Lenders and shall forthwith be paid to the Agent to be credited
        and applied against the Obligations and all other amounts payable under Section
        1(a)(ii), whether matured or unmatured, in such order as the Agent may
        determine.

       

      SECTION
        5.  Representations
        and Warranties.
        

       

      (a)
          Each
        of
        the Guarantors hereby makes each of the representations and warranties made
        by
        the Borrower under Section 6.1(a), (c), (d), (e), (f) and (h) of the Loan
        Agreement as if such representations and warranties stated that they applied
        to
        such Guarantor and the Loan Documents to which such Guarantor is a party,
        including, without limitation, this Guaranty and the Subsidiary Security
        Agreement, and such representations and warranties as applied to such Guarantor
        are true and correct as if they were repeated separately herein by such
        Guarantor, except that references in Section 6.1(a) and (c) of the Loan
        Agreement to “corporation” or “corporate” shall mean, in the case of Heritage
        Labs and Hooper Distribution, “limited liability company” and references in
        Section 6.1(c) and (f) of the Loan Agreement to “shareholders” shall mean, in
        the case of Heritage Labs and Hooper Distribution, “members.”

       

      (b)
          Each
        of
        the Guarantors has, independently and without reliance upon the Agent or
        the
        Lenders and based on such documents and information as it has deemed
        appropriate, made its own credit analysis and decision to enter into this
        Guaranty.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

           

        

      

       

      SECTION
        6.  Covenants.
        Each of
        the Guarantors covenants and agrees that, until the termination of the
        Commitments, the payment in full of the Obligations and the termination,
        Collateralization or expiration of all Letters of Credit, such Guarantor
        will
        perform, observe and otherwise comply with all of the covenants of the Borrower
        under Section 7.1(a), (b), (c), (d), (e), (f), (g), (j), (l) and (p) and
        Section 7.2 ( ), ( ), ( ), ( ), and ( ) of the Loan
        Agreement as if such covenants stated that they applied to such Guarantor
        and
        were repeated separately herein by such Guarantor.

       

      SECTION
        7.  Right
        of Setoff.
        In
        addition to and not in limitation of all rights of offset that the Agent,
        the
        Lenders or any of their respective Affiliates may have under applicable law,
        and
        whether or not the Agent or any of the Lenders or any of their respective
        Affiliates has made any demand or the obligations of the Guarantors have
        matured, the Agent, the Lenders and their respective Affiliates shall have
        the
        right to set off and apply any and all deposits (general or special, time
        or
        demand, provisional or final, or any other type) at any time held and any
        other
        Indebtedness at any time owing by the Agent, the Lenders or their respective
        Affiliates to or for the credit or the account of any of the Guarantors or
        any
        of the Guarantors’ Affiliates against any and all of the Obligations. If the
        Agent or any of the Lenders or any of their respective Affiliates exercises
        any
        of its rights under this Section 7, the exercising entity shall provide notice
        to the Guarantors of such exercise, provided
        that the
        failure to give such notice shall not affect the validity of the exercise
        of
        such rights.

       

      SECTION
        8.  Survival
        of Provisions.
        All
        representations, warranties and covenants made by the Guarantors under this
        Guaranty shall survive the execution and delivery hereof and the closing
        of the
        transactions contemplated hereby.

       

      SECTION
        9.  Notices.
        All
        notices and other communications hereunder shall be in writing and sent by
        certified or registered mail, return receipt requested, by overnight delivery
        service, with all charges prepaid, by hand delivery, or by telecopier followed
        by a hard copy sent by regular mail, if to the Agent or the Lenders, then
        to
        CitiCapital Commercial Corporation, 450 Mamaroneck Avenue, Harrison, New
        York
        10528, Attn.: Doreen M. Amado, Vice President, Telecopy:
        (914) 899-7861, with a copy to Robert Goldberg, Esq., General Counsel, Telecopy:
        (914) 899-7238; and if to the Guarantors, then to them c/o Hooper Holmes,
        Inc.,
        170 Mt. Airy Road, Basking Ridge, New Jersey 07920, Attn.: Michael Shea,
        Chief Financial Officer, Telecopy: (908) 953-6304, with a copy to Robert
        W.
        Jewett, Esq., General Counsel, Telecopy: (908) 953-6304; or , in each case,
        to
        such other address as the Borrower on behalf of the Guarantors or the Agent
        may
        specify to the other party in the manner required hereunder. All such notices
        and correspondence shall be deemed given (i) if sent by certified or registered
        mail, three Business Days after being postmarked, (ii) if sent by overnight
        delivery service or by hand delivery, when received at the above stated
        addresses or when delivery is refused, and (iii) if sent by telecopier
        transmission, when such transmission is confirmed.

       

      SECTION
        10.  Amendments,
        Waivers and Consents.
        No
        amendment or waiver of any provision of this Guaranty, or consent to any
        departure by any Guarantor therefrom, shall in any event be effective unless
        the
        same shall be in writing and signed by the Agent on behalf of the Lenders,
        and
        then such amendment, waiver or consent shall be effective only in the specific
        instance and for the specific purpose for which given.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

           

        

      

       

      SECTION
        11.  Delays;
        Partial Exercise of Remedies.
        No
        delay or omission of the Agent or any Lender to exercise any right or remedy
        hereunder shall impair any such right or operate as a waiver thereof. No
        single
        or partial exercise by the Agent or any Lender of any right or remedy shall
        preclude any other or further exercise thereof, or preclude any other right
        or
        remedy. 

       

      SECTION
        12.  Counterparts;
        Telecopied Signature.
        This
        Guaranty may be executed and delivered by telecopier or other facsimile
        transmission all with the same force and effect as if the same were a fully
        executed and delivered original manual counterpart. This Guaranty and any
        waiver
        or amendment hereto may be executed in counterparts and by the parties hereto
        in
        separate counterparts, each of which when so executed and delivered shall
        be an
        original, but all of which shall together constitute one and the same
        instrument.

       

      SECTION
        13.  Severability.
        In case
        any provision in or obligation under this Guaranty shall be invalid, illegal
        or
        unenforceable in any jurisdiction, the validity, legality and enforceability
        of
        the remaining provisions or obligations, or of such provision or obligation
        in
        any other jurisdiction, shall not in any way be affected or impaired
        thereby.

       

      SECTION
        14.  Interpretation.
        All
        terms not defined herein or in the Loan Agreement shall have the meaning
        set
        forth in the Code, except where the context otherwise requires. To the extent
        a
        term or provision of this Guaranty conflicts with the Loan Agreement and
        is not
        addressed herein with more specificity, the Loan Agreement shall control
        with
        respect to the subject matter of such term or provision.

       

      SECTION
        15.  Continuing
        Guaranty; Assignments of Guaranteed Debt.
        This
        Guaranty is a continuing guaranty and shall (a) remain in full force and
        effect until released in accordance herewith, (b) be binding upon each of
        the Guarantors and their respective successors and assigns, and (c) inure,
        together with the rights and remedies of the Agent and the Lenders hereunder,
        to
        their own benefit and to their respective successors and assigns. Without
        limiting the generality of the foregoing clause (c), the Agent and the Lenders
        may, in accordance with the terms of the Loan Agreement, assign or otherwise
        transfer all or any portion of their respective rights and obligations under
        the
        Loan Agreement to any successor, and such successor shall thereupon become
        vested with all the benefits in respect hereof granted to the Agent or such
        Lender, as the case may be, herein or otherwise, in each case as provided
        in the
        Loan Agreement.

       

      SECTION
        16.  Reinstatement.
        To the
        extent permitted by law, this Guaranty shall continue to be effective or
        be
        reinstated if at any time any amount received by the Agent or any Lender
        in
        respect of the Obligations is rescinded or must otherwise be restored or
        returned by the Agent or such Lender for any reason whatsoever, including,
        without limitation, upon the occurrence or during the pendency of any
        bankruptcy, reorganization or other similar proceeding, or any fraudulent
        transfer or similar proceeding, applicable to the Borrower, any of the
        Guarantors or any other Person or the assets thereof, or upon or during the
        occurrence of any dissolution, liquidation or winding up of the Borrower,
        any of
        the Guarantors or any other Person, all as though such amount had not been
        received.

       

      SECTION
        17.  Entire
        Agreement; Successors and Assigns.
        This
        Guaranty constitutes the entire agreement between the parties, supersedes
        any
        prior written and verbal agreements between them, and shall bind and benefit
        the
        parties and their respective successors and permitted assigns.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

           

        

      

       

      SECTION
        18.  GOVERNING
        LAW.
        THE
        VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS GUARANTY AND ANY DISPUTE
        ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTY, WHETHER SOUNDING IN
        CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL
        LAWS
        AND DECISIONS OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF
        CONFLICTS OF LAW).

       

      SECTION
        19.  SUBMISSION
        TO JURISDICTION.
        ALL
        DISPUTES BETWEEN ANY OF THE GUARANTORS AND THE AGENT OR THE LENDERS, WHETHER
        SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE RESOLVED ONLY
        BY
        STATE AND FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK, AND THE COURTS TO
        WHICH
        AN APPEAL THEREFROM MAY BE TAKEN; PROVIDED,
        HOWEVER,
        THAT
        THE AGENT OF BEHALF OF THE LENDERS SHALL HAVE THE RIGHT, TO THE EXTENT PERMITTED
        BY APPLICABLE LAW, TO PROCEED AGAINST ANY OF THE GUARANTORS IN ANY LOCATION
        REASONABLY SELECTED BY THE AGENT TO ENFORCE A JUDGMENT OR OTHER COURT ORDER
        IN
        FAVOR OF THE AGENT ON BEHALF OF THE LENDERS. EACH OF THE GUARANTORS AGREES
        THAT
        IT WILL NOT ASSERT ANY PERMISSIVE COUNTERCLAIMS, SETOFFS OR CROSS-CLAIMS
        IN ANY
        PROCEEDING BROUGHT BY THE AGENT OR THE LENDERS. EACH OF THE GUARANTORS WAIVES
        ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH THE
        AGENT
        OR THE LENDERS HAVE COMMENCED A PROCEEDING, INCLUDING, WITHOUT LIMITATION,
        ANY
        OBJECTION TO THE LAYING OF VENUE OR BASED ON FORUM NON CONVENIENS.

       

      SECTION
        20.  SERVICE
        OF PROCESS.
        EACH OF
        THE GUARANTORS HEREBY IRREVOCABLY DESIGNATES CORPORATION SERVICE COMPANY,
        1133
        AVENUE OF THE AMERICAS, SUITE 3100, NEW YORK, NEW YORK 10036-6710 AS THE
        DESIGNEE AND AGENT OF SUCH GUARANTOR TO RECEIVE, FOR AND ON BEHALF OF SUCH
        GUARANTOR, SERVICE OF PROCESS IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT
        TO
        THIS GUARANTY. IT IS UNDERSTOOD THAT A COPY OF SUCH PROCESS SERVED ON SUCH
        AGENT
        AT ITS ADDRESS WILL BE PROMPTLY FORWARDED BY MAIL TO SUCH GUARANTOR, BUT
        THE
        FAILURE OF SUCH GUARANTOR TO RECEIVE SUCH COPY SHALL NOT AFFECT IN ANY WAY
        THE
        SERVICE OF SUCH PROCESS. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENT
        OR
        THE LENDERS TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY
        LAW.

       

      SECTION
        21.  JURY
        TRIAL.
        EACH OF
        THE GUARANTORS (AND BY ITS RECEIPT HEREOF, THE AGENT ON BEHALF OF THE LENDERS)
        HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO A TRIAL
        BY
        JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY
        RELATING TO (I) THIS GUARANTY, OR (II) ANY CONDUCT, ACTS OR OMISSIONS
        OF ANY OF THE GUARANTORS, THE AGENT OR ANY OF THEIR RESPECTIVE DIRECTORS,
        OFFICERS, MEMBERS, MANAGERS, EMPLOYEES, AGENTS, ATTORNEYS OR OTHER AFFILIATES,
        IN EACH CASE WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE. EACH
        OF
        THE GUARANTORS HEREBY AGREES THAT THIS GUARANTY CONSTITUTES THE WRITTEN CONSENT
        ON THE GUARANTORS TO SUCH WAIVER AND MAY BE FILED WITH THE CLERK OF THE COURT
        IN
        THE JURISDICTION IN WHICH ANY ACTION OR PROCEEDING IS COMMENCED REGARDING
        THIS
        GUARANTY, AS EVIDENCE OF THE GUARANTORS’ WRITTEN CONSENT TO SUCH
        WAIVER.

       

      SECTION
        22.  LIMITATION
        OF LIABILITY.
        NEITHER
        THE AGENT NOR ANY OF THE LENDERS SHALL HAVE ANY LIABILITY TO ANY OF THE
        GUARANTORS (WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE) FOR
        LOSSES SUFFERED BY SUCH GUARANTOR IN CONNECTION WITH, ARISING OUT OF, OR
        IN ANY
        WAY RELATED TO THE TRANSACTIONS OR RELATIONSHIPS CONTEMPLATED BY THIS GUARANTY,
        OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH, UNLESS IT
        IS
        DETERMINED BY A FINAL AND NONAPPEALABLE JUDGMENT OR COURT ORDER BINDING ON
        THE
        AGENT OR SUCH LENDER THAT THE LOSSES WERE THE RESULT OF ACTS OR OMISSIONS
        CONSTITUTING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE AGENT OR ONE OF
        THE
        LENDERS. EACH OF THE GUARANTORS HEREBY WAIVES ALL FUTURE CLAIMS AGAINST THE
        AGENT AND THE LENDERS FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES
        UNLESS RESULTING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE AGENT
        OR
        THE LENDERS.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

           

        

      

      IN
        WITNESS WHEREOF,
        each of
        the Guarantors has caused this Guaranty to be executed by its proper and
        duly
        authorized officer or manager, as the case may be, as of the date first set
        forth above.

       

      HOOPER
        INFORMATION SERVICES, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HOOPER
        EVALUATIONS, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      MID
        AMERICA AGENCY SERVICES, INCORPORATED

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      TEG
        ENTERPRISES, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HERITAGE
        LABS INTERNATIONAL, LLC

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HOOPER
        DISTRIBUTION SERVICES, LLC

       

      

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

    

     

    

     

    EXHIBIT
      E

     

    SUBSIDIARY
      SECURITY AGREEMENT

     

    SUBSIDIARY
      SECURITY AGREEMENT,
      dated
      as of October 10, 2006 (this “Agreement”),
      made
      by each of the companies listed on Schedule 1 hereto (individually a
“Grantor”
and
      collectively the “Grantors”),
      in
      favor of CITICAPITAL
      COMMERCIAL
      CORPORATION, a Delaware corporation, as
      agent
(the
      “Agent”)
      for
      the Lenders referred to below.

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      Hooper
      Holmes, Inc., a New York corporation (the “Borrower”),
      is a
      party to the Loan and Security Agreement dated as of October 10, 2006 (as
      amended, supplemented or otherwise modified from time to time, the “Loan
      Agreement”;
      capitalized terms used herein and not otherwise defined herein shall have the
      meanings assigned to such terms in the Loan Agreement), among the
      Borrower,
      the
      lenders from time to time party thereto (the “Lenders”)
      and the
Agent,
      pursuant to which the Lenders
      have
      agreed,
      among other things, to make Loans and other extensions of credit to the
      Borrower, subject to the terms and conditions set forth in the Loan
      Agreement;

     

    WHEREAS,
      each of
      the Grantors is a wholly-owned Subsidiary of the Borrower, has an interest
      in
      the financial affairs and well-being of the Borrower, and will benefit directly
      and indirectly from the transactions contemplated by the Loan
      Agreement;

     

    WHEREAS,
      each of
      the Grantors is simultaneously executing and delivering in favor of the Agent
      a
      Subsidiary Guaranty of even date herewith (as amended, supplemented or otherwise
      modified from time to time, the “Subsidiary
      Guaranty”),
      under
      which the Grantors shall unconditionally guaranty the payment and performance
      of
      the Borrower’s obligations under the Loan Agreement and the other Loan
      Documents;

     

    WHEREAS,
      it is a
      condition precedent to the effectiveness of the Loan Agreement that the Grantors
      shall have executed and delivered this Agreement in favor and for the benefit
      of
      the Agent.

     

    NOW,
      THEREFORE,
      in
      consideration of the promises contained herein and to induce the Agent
      and
      the Lenders
      to enter
      into the Loan Agreement, the Grantors hereby agree as follows:

     

    SECTION
      1.  Creation
      of Security Interest.
      Each
      of
      the Grantors hereby grants to the Agent for the ratable benefit of the Lenders
      a
      lien on and security interest in all of such Grantor’s right, title and interest
      in and to its Receivables, Equipment, General Intangibles, Inventory, Investment
      Property, and all other personal property, and all its Property, in each case
      wherever located, whether now owned or existing or hereafter acquired or
      created, and all additions and accessions thereto and substitutions and
      replacements therefor and improvements thereon, and all proceeds (whether in
      the
      form of cash or other property) and products thereof including, without
      limitation, all proceeds of insurance covering the same and all tort claims
      in
      connection therewith. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      purposes of this
      Agreement, the following terms shall have the indicated meanings:

     

    “Equipment”
means
      all machinery, equipment, furniture, fixtures, leasehold improvements,
      conveyors, tools, materials, storage and handling equipment, hydraulic presses,
      cutting equipment, computer equipment and hardware, including central processing
      units, terminals, drives, memory units, embedded computer programs and
      supporting information, printers, keyboards, screens, peripherals and input
      or
      output devices, molds, dies, stamps, and other equipment of every kind and
      nature and wherever situated now or hereafter owned by a Person or in which
      a
      Person may have any interest as lessee or otherwise (to the extent of such
      interest), together with all additions and accessions thereto, all replacements
      and all accessories and parts therefor, all manuals, blueprints, know-how,
      warranties and records in connection therewith and all rights against suppliers,
      warrantors, manufacturers, and sellers or others in connection therewith,
      together with all substitutes for any of the foregoing.

     

    “General
      Intangibles”
means
      all present and future general intangibles as defined in the Code including,
      without limitation, documents, certificates, patents, patent applications,
      copyrights (registered and unregistered), licenses, permits, franchise rights,
      authorizations, customer and supplier lists, rights of indemnification,
      contribution and subrogation, leases, computer tapes, programs, discs and
      software, trade secrets, computer service contracts, trademarks, trade names,
      service marks, service names, domain names, logos, goodwill, deposits, causes
      of
      action (including, without limitation, commercial tort claims), choses in
      action, judgments, designs, blueprints, plans, know-how, drafts, acceptances,
      letters of credit, book accounts, deposit and other accounts and all money,
      balances, credits, deposits or other financial assets therein or represented
      thereby, credits and reserves and all forms of obligations whatsoever owing,
      instruments, documents of title, leasehold rights in any goods, and books,
      ledgers, files and records with respect to any collateral or
      security.

     

    “Inventory”
means
      all present and future goods intended for sale, lease or other disposition
      including, without limitation, all raw materials, work in process, finished
      goods and other retail inventory, goods in the possession of outside processors
      or other third parties, consigned goods (to the extent of the consignee’s
      interest therein), materials and supplies of any kind, nature or description
      which are or might be used in connection with the manufacture, packing,
      shipping, advertising, selling or finishing of any such goods, all documents
      of
      title or documents representing the same and all records, files and writings
      with respect thereto.

     

    “Investment
      Property”
means
      all present and future investment property, including without limitation, all
      (i) securities, whether certificated or uncertificated, and including stocks,
      bonds, debentures, notes, bills, certificates, warrants, options, rights and
      shares, (ii) security entitlements, (iii) securities accounts, (iv) commodity
      contracts, (v) commodity accounts and (vi) dividends and other distributions
      in
      respect of any of the foregoing.

     

    “Property”
means
      any real property, whether owned, leased or otherwise controlled.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    “Receivables”
means
      all present and future accounts, contracts, contract rights, promissory notes,
      chattel paper, tax refunds, rights to receive tax refunds, rights to receive
      payments under bonds and insurance policies (including, without limitation,
      claims under health care insurance policies), insurance proceeds, royalties,
      claims against third parties of every kind or nature, and rights to receive
      payments under letters of credit, together with all supporting obligations
      and
      all right, title, security and guaranties with respect to any of the foregoing,
      including any right of stoppage in transit.

     

    Each
      of
      the Grantors also hereby grants to the Agent for the ratable benefit of the
      Lenders a security interest in all of such Grantor’s right, title and interest
      in and to all property of such Grantor in the possession of or deposited with
      or
      in the custody of the Agent or any Affiliate of the Agent or any representative,
      agent or correspondent of the Agent and in all present and future “deposit
      accounts,” as that term is defined in the Code. For purposes of this Agreement,
      any property in which the Agent or any such Affiliate has any security or title
      retention interest shall be deemed to be in the custody of the Agent or of
      such
      Affiliate.

     

    SECTION
      2.  Security
      for Obligations. The
      grant
      of a lien on and security interest in the Collateral hereunder secures the
      prompt and complete payment and performance when due (whether at the stated
      maturity, by acceleration or otherwise) of all of the Obligations.

     

    SECTION
      3.  Representations
      and Warranties. Each
      Grantor represents and warrants as follows:

     

    (a)
        Such
      Grantor is duly
      organized, validly existing and in good standing under the laws of the state
      of
      its organization, is duly qualified to do business and is in good standing
      in
      all other states where such qualification is required, except to the extent
      that
      failure so to qualify or to be in good standing could not reasonably be expected
      to have a Material Adverse Effect, and has all necessary power and authority
      to
      enter into this Agreement.

     

    (b)
        Such
      Grantor has taken all requisite action under its constituent documents to
      authorize the execution and delivery of, and the performance of its obligations
      under, this Agreement, and this Agreement constitutes the legal, valid and
      binding obligation of such Grantor enforceable against it in accordance with
      its
      terms, except as enforceability may be limited by bankruptcy, insolvency or
      similar laws affecting creditors’ rights generally.

     

    (c)
        Such
      Grantor is the legal and beneficial owner of record of its Collateral free
      and
      clear, upon the termination of the liens and security interests in favor of
      Wachovia Bank, National Association, Bank of America, N.A., and Brown Brothers
      Harriman & Co. provided in connection with and as security for the Wachovia
      Loan, of any Lien, except for the Lien created by this Agreement. On the date
      hereof, no effective financing statement or other instrument similar in effect
      covering all or any part of the Collateral is on file in any recording office,
      except for financing statements arising out of the Wachovia Loan and certain
      filings related to equipment liens described in the Loan Agreement as Permitted
      Liens.

     

    (d)
        This
      Agreement creates a valid and, upon the proper filing of financing statements
      in
      the appropriate offices, perfected first priority lien on and security interest
      in the Collateral described above in Section 1, securing the payment and
      performance of the Obligations, and all filing and other actions necessary
      or
      desirable to perfect and protect such lien and security interest have been
      duly
      made or taken.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (e)
        Except
      in
      connection with terminating the Wachovia Loan and the liens and security
      interests arising therefrom, no authorization, approval, or other action by,
      and
      no notice to or filing with, any Person is required for (i) the grant by
      such Grantor of the lien and security interest granted hereby or the execution,
      delivery or performance of this Agreement by such Grantor, (ii) the
      perfection of the lien and security interest granted in this Agreement, or
      (iii) the exercise by the Agent
      of the
      rights or remedies provided for in this Agreement.

     

    (f)
        The
      execution, delivery and performance by such Grantor of this Agreement, the
      granting of the lien and security interest hereunder and the exercise by the
      Agent
      of any
      or all of the remedies hereunder do not and will not violate, contravene or
      constitute a default under any contractual obligation to which such Grantor
      is a
      party, except to the extent that the lien and security interest hereunder may
      violate the terms of the agreements creating the equipment liens referred to
      in
      Section 3(c), but such Grantor does not believe any such violations would have
      a
      Material Adverse Effect.

     

    (g)
        The
      exact
      correct name of such Grantor and the jurisdiction of organization of such
      Grantor are set forth on Schedule 1 hereto, and such Grantor is a
“registered organization,” as such term is defined in the Code, organized under
      the laws of the state indicated therefor on Schedule 1 hereto.

     

    SECTION
      4.  Special
      Provisions Relating to Inventory.
      

     

    (a)
        All
      Inventory.
      The
      security interest in the Inventory granted to the Agent hereunder shall continue
      through all steps of manufacture and sale and attach without further act to
      raw
      materials, work in process, finished goods, returned goods, documents of title
      and warehouse receipts, and to proceeds resulting from the sale or other
      disposition of such Inventory. Until all of the Obligations have been satisfied,
      all Letters of Credit have been terminated or Collateralized and the Commitments
      have been terminated, the Agent’s security interest in such Inventory and in all
      proceeds thereof shall continue in full force and effect and the Agent shall
      have, in its sole and absolute discretion at any time if an Event of Default
      has
      occurred and is continuing or the Agent believes that fraud has occurred, the
      right to take physical possession of such Inventory and to maintain it on the
      premises of a Grantor, in a public warehouse, or at such other place as the
      Agent may deem appropriate. If the Agent exercises such right to take possession
      of such Inventory, the Grantors will, upon demand, and at the Grantors’ cost and
      expense, assemble such Inventory and make it available to the Agent at a place
      or places convenient to the Agent.

     

    (b)
        No
      Liens.
      All
      Inventory of each Grantor shall be maintained at the locations therefor shown
      on
      Schedule 1 hereto.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (c)
        Further
      Assurances.
      Each
      Grantor will perform any and all steps that the Agent may request to perfect
      the
      Agent’s security interests in such Grantor’s Inventory including, without
      limitation, placing and maintaining signs, executing and filing financing or
      continuation statements in form and substance satisfactory to the Agent,
      maintaining stock records and conducting lien searches. In each case, each
      Grantor shall take such action as promptly as possible after requested by the
      Agent but in any event within five Business Days after any such request is
      made
      except that such Grantor shall take such action immediately upon the Agent’s
      request following the occurrence of an Event of Default. If any of a Grantor’s
      Inventory is in the possession or control of any Person other than a purchaser
      in the ordinary course of business or a public warehouseman where the warehouse
      receipt is in the name of or held by the Agent, such Grantor shall notify such
      Person of the Agent’s security interest therein and, upon request, instruct such
      Person to acknowledge in writing its agreement to hold all such Inventory for
      the benefit of the Agent and subject to the Agent’s instructions. If so
      requested by the Agent, each Grantor (as promptly as possible after requested
      by
      the Agent but in any event within five Business Days after any such request
      is
      made) will deliver (i) to the Agent warehouse receipts covering any of such
      Grantor’s Inventory located in warehouses showing the Agent as the beneficiary
      thereof, and (ii) to the warehouseman such agreements relating to the release
      of
      warehouse Inventory as the Agent may request. A physical verification of all
      of
      each Grantor’s Inventory wherever located will be taken by such Grantor at least
      every twelve months and, in any case, as often as reasonably requested by the
      Agent and a copy of such physical verification shall be promptly thereafter
      submitted to the Agent. Each Grantor shall also submit to the Agent a report
      of
      the annual physical Inventory of such Grantor as observed and tested by its
      public accountants in accordance with generally accepted auditing standards
      and
      GAAP. If so requested by the Agent, each Grantor shall execute and deliver
      to
      the Agent a confirmatory written instrument, in form and substance satisfactory
      to the Agent, listing all its Inventory, but any failure to execute or deliver
      the same shall not limit or otherwise affect the Agent’s security interest in
      and to such Inventory. Each Grantor shall deliver a monthly report of its
      Inventory, based upon its perpetual inventory, which shall describe such
      Inventory by category, item (in reasonable detail) and location and report
      the
      then appraised value (at the lower of cost or market) of such Inventory and
      its
      location.

     

    (d)
        Inventory
      Records.
      Each
      Grantor shall maintain full, accurate and complete records of its Inventory
      describing the kind, type and quantity of such Inventory and such Grantor’s cost
      therefor, withdrawals therefrom and additions thereto, including a perpetual
      inventory for raw materials, work in process and finished goods.

     

    SECTION
      5.  Special
      Provisions Relating to Receivables.
      

     

    (a)
        Invoices,
      Etc.
      On the
      Agent’s request therefor, each Grantor shall furnish to the Agent copies of
      invoices to customers and shipping and delivery receipts or warehouse receipts
      thereof. Each Grantor shall deliver to the Agent (i) the originals of all
      letters of credit, notes, and instruments in its favor, (ii) such endorsements
      or assignments related thereto as the Agent may reasonably request, and (iii)
      the written consent of the issuer of any letter of credit to the assignment
      of
      the proceeds of such letter of credit by such Grantor to the Agent.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (b)
        Records,
      Collections, Etc.
      Each
      Grantor shall promptly report all customer credits to the Agent, except customer
      credits granted in the ordinary course of such Grantor’s business. Each Grantor
      shall notify the Agent of all returns and recoveries of merchandise and of
      all
      claims asserted with respect to merchandise, in quantities or in amounts
      exceeding those which have been typical historically in such Grantor’s ordinary
      course of business. Each Grantor shall promptly report to the Agent each such
      return, repossession or recovery of merchandise, providing the Agent with a
      description of such merchandise. No Grantor shall, without the Agent’s prior
      written consent, settle or adjust any dispute or claim, or grant any discount
      (except ordinary trade discounts), credit or allowance or accept any return
      of
      merchandise, except in the ordinary course of its business. Upon the occurrence
      and during the continuance of an Event of Default or at any time that the Agent
      believes that fraud has occurred, the Agent may (i) settle or adjust disputes
      or
      claims directly with account debtors for amounts and upon terms which it
      considers advisable, and (ii) notify account debtors on a Grantor’s Receivables
      that such Receivables have been assigned to the Agent, and that payments in
      respect thereof shall be made directly to the Agent. Where a Grantor receives
      collateral of any kind or nature by reason of transactions between itself and
      its customers or account debtors, such Grantor will hold the same on the Agent’s
      behalf, subject to the Agent’s instructions, and as property forming part of
      such Grantor’s Receivables. Where a Grantor sells goods or services to a
      customer which also sells goods or services to it or which may have other claims
      against it, such Grantor will so advise the Agent immediately to permit the
      Agent to establish a reserve therefor. Each Grantor hereby irrevocably
      authorizes and appoints the Agent, or any Person the Agent may designate, as
      its
      attorney-in-fact, at such Grantor’s sole cost and expense, to exercise, if an
      Event of Default has occurred and is continuing or the Agent believes that
      fraud
      has occurred, all of the following powers, which being coupled with an interest,
      shall be irrevocable until all of the Obligations have been indefeasibly paid
      and satisfied in full in cash: (A) to receive, take, endorse, sign, assign
      and
      deliver, all in the name of the Agent or such Grantor, any and all checks,
      notes, drafts, and other documents or instruments relating to the Collateral;
      (B) to receive, open and dispose of all mail addressed to such Grantor and
      to
      notify postal authorities to change the address for delivery thereof to such
      address as the Agent may designate; and (C) to take or bring, in the name of
      the
      Agent or such Grantor, all steps, actions, suits or proceedings deemed by the
      Agent necessary or desirable to enforce or effect collection of such Grantor’s
      Receivables or file and sign such Grantor’s name on a proof of claim in
      bankruptcy or similar document against any obligor of such Grantor. Each Grantor
      shall maintain a record of its electronic chattel paper that identifies the
      Agent as the assignee thereof and otherwise in a manner such that the Agent
      has
      control over such chattel paper for purposes of the Code.

     

    SECTION
      6.  Special
      Provisions Relating to Equipment.
      

     

    (a)
        Repair.
      Each
      Grantor shall keep all of its Equipment in a satisfactory state of repair and
      satisfactory operating condition in accordance with industry standards, ordinary
      wear and tear excepted, and will, consistent with the exercise of its reasonable
      business judgment, make all repairs and replacements when and where necessary
      and practical, will not waste or destroy it or any part thereof, and will not
      be
      negligent in the care or use thereof. Each Grantor shall repair and maintain
      all
      of its Equipment in accordance with industry practices in a manner sufficient
      to
      continue the operation of its business as heretofore conducted. Each Grantor
      will use or cause its Equipment to be used in accordance with law and the
      manufacturer’s instructions. Each Grantor shall keep its Equipment separate
      from, and will not annex or affix any of its Equipment to, any part of any
      Property or any other realty.

     

    (b)
        Disposal.
      Where a
      Grantor is permitted to dispose of any of its Equipment under this Agreement
      or
      by any consent thereto hereafter given by the Agent, the Borrower shall do
      so at
      arm’s length, in good faith and by obtaining the maximum amount of recovery
      practicable therefor and without impairing the operating integrity or value
      of
      its remaining Equipment.

     

    SECTION
      7.  Continuation
      of Liens, Etc. Except
      for excess or outdated office equipment, each Grantor shall defend the
      Collateral against all claims and demands of all Persons at any time claiming
      any interest therein, other than claims relating to Liens permitted by the
      Loan
      Documents. Each Grantor agrees to comply with the requirements of all state
      and
      federal laws to grant to the Agent valid and perfected first priority security
      interests in the Collateral and shall obtain a Control Agreement from any
      securities intermediary or depository bank in possession of any of such
      Grantor’s Investment Property or deposit accounts. The Agent is hereby
      authorized by each Grantor to sign such Grantor’s name on any document or
      instrument as may be necessary or desirable to establish and maintain the Liens
      covering the Collateral and the priority and continued perfection thereof or
      file any financing or continuation statements or similar documents or
      instruments covering the Collateral whether or not such Grantor’s signature
      appears thereon and to describe the Collateral on any financing statement as
      “all assets” or “all personal property” or otherwise use a supergeneric
      collateral description therefor. Each Grantor agrees, from time to time, at
      the
      Agent’s request, to file notices of Liens, financing statements, similar
      documents or instruments, and amendments, renewals and continuations thereof,
      cooperate with the Agent’s representatives, and take any other actions necessary
      or, in the Agent’s opinion, desirable, in connection with the continued
      perfection (and the priority status thereof) and protection of the Collateral
      and the Agent’s Liens thereon. Each Grantor agrees that the Agent may file a
      carbon, photographic or other reproduction of this Agreement (or any financing
      statement related hereto) as a financing statement.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    SECTION
      8.  Covenants. Except
      for excess or outdated office equipment, each Grantor covenants
      and agrees that it will not (i) sell, assign (by operation of law or
      otherwise) or otherwise dispose of, or grant any option with respect to, any
      of
      the Collateral, (ii) create or suffer to exist any Lien upon or with
      respect to any of the Collateral, except for the lien and security interest
      created by this Agreement, or (iii) enter into any agreement or undertaking
      restricting the right or ability of the Agent
      to sell,
      assign or transfer any of the Collateral. If the Collateral, or any part
      thereof, is sold, transferred, assigned, exchanged, or otherwise disposed of
      in
      violation of these provisions, the security interest of the Agent shall continue
      in such Collateral or part thereof notwithstanding such sale, transfer,
      assignment, exchange or other disposition, and the applicable Grantor will
      segregate and hold the proceeds thereof in a trust account for the benefit
      of
      the Agent and as soon as possible transfer such proceeds to the Agent in kind.
      Each Grantor shall promptly (but in no event later than five days) after its
      receipt thereof, deliver to the Agent any documents or certificates of title
      issued with respect to any property included in the Collateral. Each Grantor
      agrees to notify the Agent promptly of any matters materially affecting the
      value, enforceability or collectability of any Collateral. Each Grantor further
      agrees that it will not change its jurisdiction of organization, legal structure
      or legal name or cease to be a “registered organization.”

     

    SECTION
      9.  Power
      of Attorney. In
      addition to all of the powers granted to the Agent in this Agreement, each
      Grantor hereby appoints and constitutes the Agent as such Grantor’s
      attorney-in-fact to sign such Grantor’s name on any of the documents,
      instruments and other items described in Section 7, to make any filings
      under the Code covering any of the Collateral, to request at any time from
      customers indebted on its Receivables verification of information concerning
      such Receivables and the amount owing thereon (provided that any verification
      prior to an Event of Default shall not contain the Agent’s name), and, upon the
      occurrence and during the continuance of an Event of Default, (i) to convey
      any
      item of Collateral to any purchaser thereof, and (ii) to make any payment or
      take any act necessary or desirable to protect or preserve any Collateral.
      The
      Agent’s authority hereunder shall include, without limitation, the authority to
      execute and give receipt for any certificate of ownership or any document,
      to
      transfer title to any item of Collateral and to take any other actions arising
      from or incident to the powers granted to the Agent under this Agreement. This
      power of attorney is coupled with an interest and is irrevocable.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    SECTION
      10.  Records,
      Etc.
      Each
      Grantor shall keep its office and principal place of business and the place
      where it keeps its records concerning the Collateral at its address specified
      in
      Schedule 1 hereto. Each Grantor will hold and preserve such records and,
      upon 48 hours’ notice from the Agent,
      will
      permit representatives of the Agent
      at any
      time during normal business hours to inspect and make abstracts from such
      records. 

     

    SECTION
      11.  Agent
      May Perform. If
      any
      Grantor fails to perform any agreement contained herein, the Agent
      may
      perform, or cause performance of, such agreement, and the expenses of the
Agent
      incurred
      in connection therewith shall be payable by the Grantors.

     

    SECTION
      12.  Remedies
      upon Default. If
      any
      Event of Default shall have occurred and be continuing, the Agent may exercise
      in respect of the Collateral, in addition to the other rights and remedies
      provided for herein or otherwise available to it, all the rights and remedies
      of
      a secured party under the Code and other applicable law, and the Agent
      may
      also, without notice except as specified below, require each Grantor to, and
      each Grantor hereby agrees that it will at its expense, assemble all or part
      of
      its Collateral as directed by the Agent and make it available at a place
      designated by the Agent, and the Agent may sell the Collateral or any part
      thereof in one or more parcels at public or private sale, at any exchange or
      broker’s board or at any of the Agent’s
      offices or elsewhere, for cash, on credit or for future delivery, and upon
      such
      other terms as the Agent
      may deem
      commercially reasonable. Each Grantor agrees that, to the extent notice of
      sale
      shall be required by law, at least ten days’ notice to it of the time and place
      of any public or private sale shall constitute reasonable notification. The
      Agent
      shall
      not be obligated to make any sale of Collateral regardless of notice of sale
      having been given. The Agent
      may
      adjourn any public or private sale from time to time by announcement at the
      time
      and place fixed therefor, and such sale may, without further notice, be made
      at
      the time and place to which it was so adjourned. 

     

    SECTION
      13.  Application
      of Proceeds.
      All
      money
      held by the Agent as Collateral and all cash proceeds received by the
Agent
      in
      respect of any sale of, collection from, or other realization upon, all or
      any
      part of the Collateral, shall be applied to the Obligations in such order as
      determined by the Agent
      in its
      sole discretion,
      subject
      to the terms of the Loan Agreement.

     

    SECTION
      14.  Indemnity
      and Expenses.

     

    (a)
        Each
      Grantor agrees to indemnify and hereby indemnifies the Agent
      from and
      against any and all claims, damages, losses, liabilities and expenses arising
      out of, in connection with, or resulting from, this Agreement (including,
      without limitation, enforcement of this Agreement), other than such as arise
      from the Agent’s
      gross
      negligence or willful misconduct.

     

    (b)
        The
      Grantors will upon demand pay to the Agent
      the
      amount of any and all reasonable expenses, including, without limitation, the
      reasonable fees and expenses of its counsel and of any experts and agents,
      that
      the Agent
      may
      incur in connection with (i) the administration of this Agreement, (ii) the
      custody or preservation of, or the sale of, collection from, or other
      realization upon, any of the Collateral, (iii) the exercise or enforcement
      of
      any of the rights of the Agent
      hereunder, (iv) the failure of any Grantor to perform or observe any of the
      provisions hereof, or (v) any action taken by the Agent
      pursuant
      to this Agreement.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    SECTION
      15.  Amendments,
      Etc. No
      amendment of any provision of this Agreement shall in any event be effective
      unless the same shall be in writing and signed by the Grantors and the
Agent;
      no
      waiver of any provision of this Agreement, and no consent to any departure
      by
      the Grantors herefrom, shall in any event be effective unless the same shall
      be
      in writing and signed by the Agent,
      and
      then such waiver or consent shall be effective only in the specific instance
      and
      for the specific purpose for which given. No failure to exercise and no delay
      in
      exercising on the part of the Agent
      any
      right, power or privilege under this Agreement shall operate as a waiver
      thereof. No single or partial exercise of any right, power or privilege under
      this Agreement shall preclude any other or further exercise thereof or the
      exercise of any other right, power or privilege.

     

    SECTION
      16.  Security
      Interest Absolute.
      All
      rights of the Agent
      and the
      lien and security interest granted to it hereunder, and all obligations of
      the
      Grantors hereunder, shall be absolute and unconditional irrespective
      of:

     

    (a)
        any
      lack
      of enforceability of the Loan Agreement or any of the other Loan Documents
      or
      any other agreement or instrument relating thereto;

     

    (b)
        any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Obligations, or any other amendment or waiver of or any consent
      to
      departure from the Loan Agreement or any of the other Loan Documents;

     

    (c)
        any
      taking and holding of collateral or guarantees for all or any of the
      Obligations, or any amendment, alteration, exchange, substitution, transfer,
      enforcement, waiver, subordination, termination or release of any collateral
      or
      such guarantees, or any non-perfection of any collateral, or any consent to
      departure from any such guaranty;

     

    (d)
        any
      manner of application of collateral, or proceeds thereof, to all or any of
      the
      Obligations, or the manner of sale or other disposition of any collateral or
      the
      collection of proceeds thereof;

     

    (e)
        any
      consent by the Agent
      to the
      restructure or refinancing of the Obligations or any portion
      thereof;

     

    (f)
        any
      other
      modification, compromise, settlement or release by the Agent,
      by
      operation of law or otherwise, of the Obligations or the liability of any
      obligor or guarantor, or of any collateral, in whole or in part, and any refusal
      by the Agent
      to
      accept any payment, in whole or in part, from any obligor or guarantor in
      connection with any of the Obligations, in each case whether or not with notice
      to, further assent by, or any reservation of rights against, the Grantors;
      or

     

    (g)
        any
      other
      circumstance (including, without limitation, any statute of limitations) which
      might otherwise constitute a defense available to, or a discharge of, any third
      party grantor or guarantor.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    SECTION
      17.  Addresses
      for Notices.
      All
      notices
      and other communications
      hereunder shall be in writing and sent by certified or registered mail, return
      receipt requested, by overnight delivery service, with all charges prepaid,
      by
      hand delivery,
      or by
      telecopier,
      if to
      the Agent,
      then to
CitiCapital
      Commercial
      Corporation,
      450 Mamaroneck
      Avenue,
Harrison,
      New
      York 10528,
      Attn.:
Doreen
      M.
      Amado, Vice President,
      Telecopy:
      (914)
      899-7861,
      with a
      copy to Robert
      Goldberg, Esq., General Counsel,
      Telecopy: (914)
      899-7238; and
      if to
      the Grantors, then to them c/o Hooper Holmes, Inc., 170 Mt. Airy Road, Basking
      Ridge, New Jersey 07920, Attn.:
      Michael
      Shea, Chief Financial Officer, Telecopy:
      (908)
      953-6304, with a copy to Robert
      W.
      Jewett, Esq., General Counsel, Telecopy: (908)
      953-6304; or, in each case, to such other address as the Agent
      or the
      Grantors may
      specify to the other parties in the manner required
      hereunder. All such notices and correspondence shall be deemed given (i) if
      sent
      by certified or registered mail, three Business Days after being postmarked,
      (ii) if sent by overnight delivery service or by hand delivery, when received
      at
      the above stated addresses or when delivery is refused, and (iii) if sent by
      telecopier transmission, when such
      transmission is confirmed.

     

    SECTION
      18.  Continuing
      Security Interest; Assignment.
      This
      Agreement shall create a continuing lien on and security interest in the
      Collateral and shall (a) remain in full force and effect until released in
      accordance herewith, (b) be binding upon each Grantor and its successors and
      assigns, and (c) inure, together with the rights and remedies of the
Agent
      hereunder, to the benefit of the Agent
      and its
      successors and assigns. Without limiting the generality of the foregoing clause
      (c), the Agent
      may
      assign or otherwise transfer all or any portion of its rights and obligations
      under this Agreement to any other Person which is an assignee of the
Agent
      under
      the Loan Agreement, and such other Person shall thereupon become vested with
      all
      the benefits in respect hereof granted to the Agent
      herein.

     

    SECTION
      19.  Counterparts;
      Telecopied Signature.
      This
      Agreement and any waiver or amendment hereto may be executed in counterparts
      and
      by the parties hereto in separate counterparts, each of which when so executed
      and delivered shall be an original, but all of which shall together constitute
      one and the same instrument. This Agreement may be executed and delivered by
      telecopier or other facsimile transmission all with the same force and effect
      as
      if the same was a fully executed and delivered original manual
      counterpart.

     

    SECTION
      20.  Nature
      of
      Grantors’ Liabilities.
      Anything
      contained in this Agreement to the contrary notwithstanding, the obligations
      of
      the Grantors herein are joint and several, except to the extent that a court
      of
      competent jurisdiction adjudicates any Grantor’s obligations hereunder (or the
      amount thereof) to be invalid or unenforceable for any reason (including,
      without limitation, because of any applicable state or federal law relating
      to
      fraudulent conveyances or transfers), in which case such Grantor’s obligations
      hereunder (or the amount thereof) shall be limited to the maximum amount that
      could be incurred, undertaken or performed by such Grantor without rendering
      such Grantor’s obligations under this Agreement invalid or unenforceable under
      such applicable law. 

     

    SECTION
      21.  Governing
      Law.
      THE
      VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT AND ANY DISPUTE
      ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER SOUNDING IN
      CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS
      (AS
      OPPOSED TO THE CONFLICTS OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF
NEW
      YORK.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Grantors have caused this Agreement to be executed by their proper and duly
      authorized officers as of the date first set forth above.

     

    HOOPER
      INFORMATION SERVICES, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    HOOPER
      EVALUATIONS, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    MID
      AMERICA AGENCY SERVICES, INCORPORATED

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    TEG
      ENTERPRISES, INC.

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    HERITAGE
      LABS INTERNATIONAL, LLC

     

    By:
      /s/
      Michael J. Shea

     

    Name:Michael
      J. Shea

     

    Title:
      CFO

     

    HOOPER
      DISTRIBUTION SERVICES, LLC

     

    By:
      /s/
      Michael J. Shea

    Name:Michael
      J. Shea

    Title:
      CFO

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    Schedule
      1

     

    

     

    
      	
              Name
                of Grantor

               

            	
              Address

               

            	
              Jurisdiction
                of Organization

               

            	
              Form
                of Organization

               

            	
              Locations

               

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      EXHIBIT
        F

       

      CONTRIBUTION
        AGREEMENT

       

      CONTRIBUTION
        AGREEMENT (this
        “Agreement”),
        dated
        as of October 10, 2006, by Hooper Holmes, Inc. (the “Borrower”)
        and
        the undersigned Guarantors (as defined in the Loan Agreement referred to
        below;
        each of the Borrower and the Guarantors individually, a “Contribution
        Party,”
and
        collectively, the “Contribution
        Parties”)
        in
        favor of CitiCapital Commercial Corporation, as Agent (the “Agent”)
        for
        the lenders (the “Lenders”)
        from
        time to time party to the Loan Agreement.

       

      W
        I T N E S S E T H
        :

       

      WHEREAS,
        the
        Borrower, the Lenders and the Agent are entering into a Loan and Security
        Agreement dated as of October 10, 2006 (as amended, supplemented or otherwise
        modified from time to time, the “Loan
        Agreement”;
        capitalized terms used but not defined herein shall have the meanings given
        to
        them in the Loan Agreement) under which the Lenders have agreed to make Loans
        to
        the Borrower subject to the terms and conditions set forth in the Loan
        Agreement;

       

      WHEREAS,
        the
        Guarantors are simultaneously herewith guaranteeing repayment of the
        Obligations; and

       

      WHEREAS,
        it is a
        condition precedent to the effectiveness of the Loan Agreement that the
        Contribution Parties shall have executed and delivered this Agreement in
        favor
        of and for the benefit of the Agent and the Lenders.

       

      NOW,
        THEREFORE,
        in
        consideration of the promises contained herein and to induce the Agent and
        the
        Lenders to enter into the Loan Agreement, the Contribution Parties hereby
        agree
        as follows:

       

      To
        the
        extent that any Contribution Party shall make a payment (a “Payment”)
        under
        or on account of the Obligations in respect of an amount which, taking into
        account all other Payments then previously or concurrently made by the
        Contribution Parties, exceeds the amount which such Contribution Party would
        otherwise have paid if each Contribution Party had paid the aggregate
        Obligations satisfied by such Payment in the same proportion as the Allocable
        Amount (as defined below) of such Contribution Party in effect immediately
        prior
        to such Payment bore to the aggregate Allocable Amounts of all of the
        Contribution Parties in effect immediately prior to the making of such Payment,
        then such Contribution Party shall be entitled to contribution and
        indemnification from, and be reimbursed by, the other Contribution Parties
        for
        the amount of such excess pro rata
        based
        upon their respective Allocable Amounts in effect immediately prior to such
        Payment.

       

      As
        of any
        date of determination, the “Allocable
        Amount”
of
        any
        Contribution Party with respect to any Payment shall be equal to the
lesser
        of
        (a) the product
        of
        (i) the percentage obtained by dividing the net book value of the assets
        less the aggregate amount of liabilities of such Contribution Party as of
        the
        date of the most recent financial statements of the Contribution Parties
        that
        have been delivered to the Lenders under the Loan Agreement, by the aggregate
        net book values of the assets less the aggregate amount of liabilities of
        all
        Contribution Parties as of such date (the “Allocable
        Amount Percentage”)
        and
        (ii) the amount of aggregate Obligations satisfied by such Payment,
and
        (b) the maximum amount which could then be claimed by the Agent and the
        Lenders without rendering such claim voidable or avoidable for any reason
        (including, without limitation, because of any applicable state or federal
        law
        relating to fraudulent conveyances or transfers). To the extent that the
        Allocable Amount of any Contribution Party is reduced as a result of
        clause (b) above, the Allocable Amount for all other Contribution Parties
        shall be increased on a pro rata basis to the extent the liability in respect
        of
        such Allocable Amount may be incurred under other laws.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      This
        Agreement is intended only to define the relative rights of the Contribution
        Parties, and nothing set forth in this Agreement is intended to or shall
        impair
        the obligations of the Contribution Parties to pay any amounts to the Agent
        and
        the Lenders, as and when the same shall become due and payable in accordance
        with the terms of the Revolving Credit Note, the Loan Agreement and the other
        Loan Documents. The parties hereto acknowledge that the rights of contribution
        and indemnification hereunder shall constitute an asset in favor of any
        Contribution Party to which such rights of contribution and indemnification
        are
        owing.

       

      This
        Agreement shall become effective upon its execution by each of the Contribution
        Parties and shall continue in full force and effect and may not be terminated
        or
        otherwise revoked by any Contribution Party until the Obligations shall have
        been indefeasibly paid in full in cash. Each Contribution Party agrees that
        if,
        notwithstanding the foregoing, such Contribution Party shall have any right
        under applicable law to terminate or revoke this Agreement and such Contribution
        Party shall attempt to exercise such right, then such termination or revocation
        shall not be effective until a written notice of such revocation or termination,
        specifically referring hereto and signed by such Contribution Party, is actually
        received by each of the other Contribution Parties and by the Agent, in each
        case at its address for notices set forth or referred to in the Loan Agreement.
        Such notice shall not affect the right or power of any Contribution Party
        or the
        Agent and the Lenders to enforce rights arising prior to receipt of such
        written
        notice by each of the other Contribution Parties and the Agent. If the Agent
        and
        the Lenders make any loan or take any other action giving rise to Obligations
        after any Contribution Party has exercised any right to terminate or revoke
        this
        Agreement but before the Agent receives such written notice, the rights of
        each
        other Contribution Party to contribution and indemnification hereunder in
        connection with any Payments made with respect to such Obligations shall
        be the
        same as if such termination or revocation had not occurred.

       

      The
        provisions of this Agreement may not be modified or waived, except in a writing
        signed by the Contribution Parties and the Agent. This Agreement and any
        amendments, waivers, consents, or supplements with respect hereto may be
        executed in counterparts, each of which when so executed and delivered shall
        be
        deemed an original, but all such counterparts together shall constitute one
        and
        the same instrument. Any signature executed by a party and delivered by
        facsimile transmission shall be deemed to be an original signature hereto.
        This
        Agreement shall be governed by the internal laws and decisions of the State
        of
        New York (without regard to conflicts of laws principles other than Section
        5-1401 of the New York General Obligations Law).

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, each
        of
        the parties hereto has duly executed this Agreement or caused this Agreement
        to
        be duly executed by its duly authorized officer as of the day and year first
        above written.

       

      HOOPER
        HOLMES, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HOOPER
        INFORMATION SERVICES, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HOOPER
        EVALUATIONS, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      MID
        AMERICA AGENCY SERVICES, INCORPORATED

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      TEG
        ENTERPRISES, INC.

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HERITAGE
        LABS INTERNATIONAL, LLC

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      HOOPER
        DISTRIBUTION SERVICES, LLC

       

      

       

      By:
        /s/
        Michael J. Shea

       

      Name:Michael
        J. Shea

       

      Title:
        CFO

       

      
 

      
        
          
          

        

        
          -3-Unassociated Document

    

     

    
      

      

    

    

     

     

    RENAISSANCE
      HOME EQUITY LOAN TRUST 2006-3

     

    Issuer

     

    

     

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

     

    Indenture
      Trustee

     

    and

     

    

     

    WELLS
      FARGO BANK, N.A.

     

    Securities
      Administrator

     

    

     

    _____________________________

     

    INDENTURE

     

    Dated
      as
      of September 28, 2006

     

    _____________________________

     

    HOME
      EQUITY LOAN ASSET-BACKED NOTES, SERIES 2006-3

     

    ________________

     

    

     

    
      

      

    

     

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	
              Section
                1.01.

            	
              Definitions

            
	
              Section
                1.02.

            	
              Incorporation
                by Reference of Trust Indenture Act

            
	
              Section
                1.03.

            	
              Rules
                of Construction

            
	 	 
	
              ARTICLE
                II

            
	
              ORIGINAL
                ISSUANCE OF THE NOTES

            
	
              Section
                2.01.

            	
              Form

            
	
              Section
                2.02.

            	
              Execution,
                Authentication and Delivery

            
	
              Section
                2.03.

            	
              Acceptance
                of Mortgage Loans by Indenture Trustee.

            
	
              Section
                2.04.

            	
              Acceptance
                of the Interest Rate Swap Agreement by Owner Trustee

            
	 	 
	
              ARTICLE
                III

            
	
              COVENANTS

            
	
              Section
                3.01.

            	
              Collection
                of Payments with respect to the Mortgage Loans; Investment of
                Accounts.

            
	
              Section
                3.02.

            	
              Maintenance
                of Office or Agency

            
	
              Section
                3.03.

            	
              Money
                for Payments To Be Held in Trust; Paying Agent

            
	
              Section
                3.04.

            	
              Existence

            
	
              Section
                3.05.

            	
              Payment
                of Principal and Interest.

            
	
              Section
                3.06.

            	
              Protection
                of Collateral.

            
	
              Section
                3.07.

            	
              Opinions
                as to Collateral.

            
	
              Section
                3.08.

            	
              Performance
                of Obligations.

            
	
              Section
                3.09.

            	
              Negative
                Covenants

            
	
              Section
                3.10.

            	
              [Reserved.]

            
	
              Section
                3.11.

            	
              [Reserved.]

            
	
              Section
                3.12.

            	
              Representations
                and Warranties Concerning the Mortgage Loans

            
	
              Section
                3.13.

            	
              Amendments
                to Servicing Agreement

            
	
              Section
                3.14.

            	
              Servicer
                as Agent and Bailee of the Indenture Trustee

            
	
              Section
                3.15.

            	
              Investment
                Company Act

            
	
              Section
                3.16.

            	
              Issuer
                May Consolidate, etc.

            
	
              Section
                3.17.

            	
              Successor
                or Transferee.

            
	
              Section
                3.18.

            	
              No
                Other Business

            
	
              Section
                3.19.

            	
              No
                Borrowing

            
	
              Section
                3.20.

            	
              Guarantees,
                Loans, Advances and Other Liabilities

            
	
              Section
                3.21.

            	
              Capital
                Expenditures

            
	
              Section
                3.22.

            	
              [Reserved].

            
	
              Section
                3.23.

            	
              Restricted
                Payments

            
	
              Section
                3.24.

            	
              Notice
                of Events of Default

            
	
              Section
                3.25.

            	
              Further
                Instruments and Acts

            
	
              Section
                3.26.

            	
              Statements
                to Noteholders

            
	
              Section
                3.27.

            	
              [Reserved].

            
	
              Section
                3.28.

            	
              Certain
                Representations Regarding the Trust.

            
	
              Section
                3.29.

            	
              Allocation
                of Realized Losses.

            
	
              Section
                3.30.

            	
              [Reserved].

            
	
              Section
                3.31.

            	
              [Reserved]

            
	
              Section
                3.32.

            	
              [Reserved]

            
	 	 
	
              ARTICLE
                IV

            
	
              THE
                NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

            
	
              Section
                4.01.

            	
              The
                Notes

            
	
              Section
                4.02.

            	
              Registration
                of and Limitations on Transfer and Exchange of Notes; Appointment
                of Note
                Registrar and Certificate.

            
	
              Section
                4.03.

            	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            
	
              Section
                4.04.

            	
              Persons
                Deemed Owners

            
	
              Section
                4.05.

            	
              Cancellation

            
	
              Section
                4.06.

            	
              Book-Entry
                Notes.

            
	
              Section
                4.07.

            	
              Notices
                to Depository

            
	
              Section
                4.08.

            	
              Definitive
                Notes

            
	
              Section
                4.09.

            	
              Tax
                Treatment

            
	
              Section
                4.10.

            	
              Satisfaction
                and Discharge of Indenture

            
	
              Section
                4.11.

            	
              Application
                of Trust Money

            
	
              Section
                4.12.

            	
              Derivative
                Contracts for Benefit of the Certificates

            
	
              Section
                4.13.

            	
              Repayment
                of Monies Held by Paying Agent

            
	
              Section
                4.14.

            	
              Temporary
                Notes

            
	
              Section
                4.15.

            	
              Representation
                Regarding ERISA

            
	
              Section
                4.16.

            	
              Transfer
                Restrictions for Class N Notes.

            
	 	 
	
              ARTICLE
                V

            
	
              DEFAULT
                AND REMEDIES

            
	
              Section
                5.01.

            	
              Events
                of Default

            
	
              Section
                5.02.

            	
              Acceleration
                of Maturity; Rescission and Annulment

            
	
              Section
                5.03.

            	
              Collection
                of Indebtedness and Suits for Enforcement by Indenture
                Trustee.

            
	
              Section
                5.04.

            	
              Remedies;
                Priorities.

            
	
              Section
                5.05.

            	
              Optional
                Preservation of the Collateral

            
	
              Section
                5.06.

            	
              Limitation
                of Suits

            
	
              Section
                5.07.

            	
              Unconditional
                Rights of Noteholders To Receive Principal and
                Interest.

            
	
              Section
                5.08.

            	
              Restoration
                of Rights and Remedies

            
	
              Section
                5.09.

            	
              Rights
                and Remedies Cumulative

            
	
              Section
                5.10.

            	
              Delay
                or Omission Not a Waiver

            
	
              Section
                5.11.

            	
              Control
                By Noteholders

            
	
              Section
                5.12.

            	
              Waiver
                of Past Defaults

            
	
              Section
                5.13.

            	
              Undertaking
                for Costs

            
	
              Section
                5.14.

            	
              Waiver
                of Stay or Extension Laws

            
	
              Section
                5.15.

            	
              Sale
                of Trust.

            
	
              Section
                5.16.

            	
              Action
                on Notes

            
	
              Section
                5.17.

            	
              Performance
                and Enforcement of Certain Obligations.

            
	 	 
	
              ARTICLE
                VI

            
	
              THE
                INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            
	
              Section
                6.01.

            	
              Duties
                of Indenture Trustee and the Securities Administrator.

            
	
              Section
                6.02.

            	
              Rights
                of Indenture Trustee and Securities Administrator.

            
	
              Section
                6.03.

            	
              Individual
                Rights of Indenture Trustee and Securities
                Administrator

            
	
              Section
                6.04.

            	
              Indenture
                Trustee’s and Securities Administrator’s Disclaimer

            
	
              Section
                6.05.

            	
              Notice
                of Event of Default

            
	
              Section
                6.06.

            	
              Reports
                by Securities Administrator to Holders and Tax
                Administration.

            
	
              Section
                6.07.

            	
              Compensation
                and Indemnity

            
	
              Section
                6.08.

            	
              Replacement
                of Indenture Trustee or Securities Administrator

            
	
              Section
                6.09.

            	
              Successor
                Indenture Trustee or Securities Administrator by Merger

            
	
              Section
                6.10.

            	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee.

            
	
              Section
                6.11.

            	
              Eligibility;
                Disqualification

            
	
              Section
                6.12.

            	
              Preferential
                Collection of Claims Against Issuer

            
	
              Section
                6.13.

            	
              Representations
                and Warranties

            
	
              Section
                6.14.

            	
              Directions
                to Indenture Trustee and Securities Administrator

            
	
              Section
                6.15.

            	
              The
                Agents

            
	 	 
	
              ARTICLE
                VII

            
	
              NOTEHOLDERS’
                LISTS AND REPORTS

            
	
              Section
                7.01.

            	
              Issuer
                To Furnish Securities Administrator Names and Addresses of
                Noteholders.

            
	
              Section
                7.02.

            	
              Preservation
                of Information; Communications to Noteholders.

            
	
              Section
                7.03.

            	
              Reports
                of Issuer.

            
	
              Section
                7.04.

            	
              Reports
                by Securities Administrator

            
	
              Section
                7.05.

            	
              Statements
                to Noteholders.

            
	 	 
	
              ARTICLE
                VIII

            
	
              ACCOUNTS,
                DISBURSEMENTS AND RELEASES

            
	
              Section
                8.01.

            	
              Collection
                of Money

            
	
              Section
                8.02.

            	
              Trust
                Accounts.

            
	
              Section
                8.03.

            	
              Officer’s
                Certificate

            
	
              Section
                8.04.

            	
              Termination
                Upon Payment to Noteholders

            
	
              Section
                8.05.

            	
              Release
                of Collateral.

            
	
              Section
                8.06.

            	
              Surrender
                of Notes Upon Final Payment

            
	
              Section
                8.07.

            	
              Optional
                Redemption of the Notes.

            
	 	 
	
              ARTICLE
                IX

            
	
              SUPPLEMENTAL
                INDENTURES

            
	
              Section
                9.01.

            	
              Supplemental
                Indentures Without Consent of Noteholders.

            
	
              Section
                9.02.

            	
              Supplemental
                Indentures With Consent of Noteholders

            
	
              Section
                9.03.

            	
              Execution
                of Supplemental Indentures

            
	
              Section
                9.04.

            	
              Effect
                of Supplemental Indenture

            
	
              Section
                9.05.

            	
              Conformity
                with Trust Indenture Act

            
	
              Section
                9.06.

            	
              Reference
                in Notes to Supplemental Indentures

            
	 	 
	
              ARTICLE
                X

            
	
              MISCELLANEOUS

            
	
              Section
                10.01.

            	
              Compliance
                Certificates and Opinions, etc.

            
	
              Section
                10.02.

            	
              Form
                of Documents Delivered to Indenture Trustee

            
	
              Section
                10.03.

            	
              Acts
                of Noteholders.

            
	
              Section
                10.04.

            	
              Notices
                etc., to Indenture Trustee, Securities Administrator, Issuer and
                Rating
                Agencies.

            
	
              Section
                10.05.

            	
              Notices
                to Noteholders; Waiver

            
	
              Section
                10.06.

            	
              Conflict
                with Trust Indenture Act

            
	
              Section
                10.07.

            	
              Effect
                of Headings

            
	
              Section
                10.08.

            	
              Successors
                and Assigns

            
	
              Section
                10.09.

            	
              Separability

            
	
              Section
                10.10.

            	
              [Reserved.]

            
	
              Section
                10.11.

            	
              Legal
                Holidays

            
	
              Section
                10.12.

            	
              GOVERNING
                LAW

            
	
              Section
                10.13.

            	
              Counterparts

            
	
              Section
                10.14.

            	
              Recording
                of Indenture

            
	
              Section
                10.15.

            	
              Issuer
                Obligation

            
	
              Section
                10.16.

            	
              No
                Petition

            
	
              Section
                10.17.

            	
              Inspection

            
	
              Section
                10.18.

            	
              No
                Recourse to Owner Trustee

            
	
              Section
                10.19.

            	
              Proofs
                of Claim

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBITS

    

    
      	
              Exhibit
                A-1

            	
              Form
                of Offered Notes

            
	
              Exhibit
                A-2

            	
              Form
                of Class N Notes

            
	
              Exhibit
                B

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C-1

            	
              Form
                of Initial Certification

            
	
              Exhibit
                C-2

            	
              Form
                of Final Certification

            
	
              Exhibit
                D

            	
              Interest
                Rate Swap Agreement

            
	
              Exhibit
                E

            	
              Form
                of Custodial Agreement

            
	
              Exhibit
                F-1

            	
              Form
                of Transferor Certificate for Transfers of Class N
                Notes

            
	
              Exhibit
                F-2

            	
              Form
                of Transferee Certificate for Transfers of the Class N
                Notes

            
	 	
              (Including
                ERISA Certification)

            
	
              Exhibit
                G-1

            	
              Form
                of Transfer Certificate for Transfer from Restricted Global Security
                to
                Regulation S Global Security

            
	
              Exhibit
                G-2

            	
              Form
                of Transfer Certificate for Transfer from Regulation S Global Security
                to
                Restricted Global Security

            

    

    

     
      Appendix A      Definitions

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Indenture, dated as of September 28, 2006, is entered into among Renaissance
      Home Equity Loan Trust 2006-3, a Delaware statutory trust, as Issuer (the
“Issuer”), HSBC Bank USA, National Association, a national banking association,
      as Indenture Trustee (the “Indenture Trustee”) and Wells Fargo Bank, N.A., a
      national banking association, as Securities Administrator (the “Securities
      Administrator”).

     

    WITNESSETH
      THAT:

     

    Each
      party hereto agrees as follows for the benefit of the other party and for the
      equal and ratable benefit of the Holders of the Issuer’s Home Equity Loan
      Asset-Backed Notes, Series 2006-3 (the “Notes”).

     

    GRANTING
      CLAUSE

     

    The
      Issuer hereby Grants to the Indenture Trustee at the Closing Date, as trustee
      for the benefit of the Holders of the Notes, all of the Issuer’s right, title
      and interest in and to whether now existing or hereafter created by (a) the
      Mortgage Loans, Eligible Substitute Mortgage Loans and the proceeds thereof
      and
      all rights under the Related Documents; (b) all funds on deposit from time
      to
      time in the Collection Account allocable to the Mortgage Loans excluding any
      investment income from such funds; (c) all funds on deposit from time to time
      in
      the Payment Account and in all proceeds thereof; (d) all rights under (i) the
      Mortgage Loan Sale and Contribution Agreement as assigned to the Issuer, (ii)
      the Servicing Agreement, (iii) any title, hazard and primary insurance policies
      with respect to the Mortgaged Properties and (iv) the rights with respect to
      the
      Interest Rate Swap Agreement and (e) all present and future claims, demands,
      causes and choses in action in respect of any or all of the foregoing and all
      payments on or under, and all proceeds of every kind and nature whatsoever
      in
      respect of, any or all of the foregoing and all payments on or under, and all
      proceeds of every kind and nature whatsoever in the conversion thereof,
      voluntary or involuntary, into cash or other liquid property, all cash proceeds,
      accounts, accounts receivable, notes, drafts, acceptances, checks, deposit
      accounts, rights to payment of any and every kind, and other forms of
      obligations and receivables, instruments and other property which at any time
      constitute all or part of or are included in the proceeds of any of the
      foregoing (collectively, the “Collateral”).

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes, equally
      and
      ratably without prejudice, priority or distinction, and to secure compliance
      with the provisions of this Indenture, all as provided in this
      Indenture.

     

    The
      Indenture Trustee, as trustee on behalf of the Holders of the Notes,
      acknowledges such Grant, accepts the trust under this Indenture in accordance
      with the provisions hereof and agrees to perform its duties as Indenture Trustee
      as required herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01.  Definitions.
      For all
      purposes of this Indenture, except as otherwise expressly provided herein or
      unless the context otherwise requires, capitalized terms not otherwise defined
      herein shall have the meanings assigned to such terms in the Definitions
      attached hereto as Appendix A which is incorporated by reference herein. All
      other capitalized terms used herein shall have the meanings specified
      herein.

     

    Section
      1.02.  Incorporation
      by Reference of Trust Indenture Act.
      Whenever this Indenture refers to a provision of the Trust Indenture Act (the
      “TIA”), the provision is incorporated by reference in and made a part of this
      Indenture. The following TIA terms used in this Indenture have the following
      meanings:

     

    “Commission”
      means the Securities and Exchange Commission.

     

    “indenture
      securities” means the Notes.

     

    “indenture
      security holder” means a Noteholder.

     

    “indenture
      to be qualified” means this Indenture.

     

    “indenture
      trustee” or “institutional trustee” means the Indenture Trustee.

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    All
      other
      TIA terms used in this Indenture that are defined by the TIA, defined by TIA
      reference to another statute or defined by Commission rules and have the
      meanings assigned to them by such definitions.

     

    
      	Section
              1.03.  	
              Rules
                of Construction.
                Unless the context otherwise
                requires:

            

    

     

    (i) a
      term
      has the meaning assigned to it;

     

    (ii) an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii) “or”
is
      not exclusive;

     

    (iv) “including”
      means including without limitation;

     

    (v) words
      in
      the singular include the plural and words in the plural include the singular;
      and

     

    (vi) any
      agreement, instrument or statute defined or referred to herein or in any
      instrument or certificate delivered in connection herewith means such agreement,
      instrument or statute as from time to time amended, modified or supplemented
      and
      includes (in the case of agreements or instruments) references to all
      attachments thereto and instruments incorporated therein; references to a Person
      are also to its permitted successors and assigns.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      II

     

    ORIGINAL
      ISSUANCE OF THE NOTES

     

    Section
      2.01.  Form.
      The
      Notes, together with the Securities Administrator’s certificate of
      authentication, shall be in substantially the form set forth in Exhibit A-1
      and
      Exhibit A-2 to this Indenture, respectively, with such appropriate insertions,
      omissions, substitutions and other variations as are required or permitted
      by
      this Indenture.

     

    The
      Notes
      shall be typewritten, printed, lithographed or engraved or produced by any
      combination of these methods (with or without steel engraved
      borders).

     

    The
      terms
      of the Notes set forth in Exhibit A-1 and Exhibit A-2 to this Indenture are
      part
      of the terms of this Indenture. To the extent the Notes and the terms of the
      Indenture are inconsistent, the terms of the Indenture shall
      control.

     

    Section
      2.02.  Execution,
      Authentication and Delivery.  The
      Notes shall be executed on behalf of the Issuer by any of its Authorized
      Officers. The signature of any such Authorized Officer on the Notes may be
      manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that
      such individuals or any of them have ceased to hold such offices prior to the
      authentication and delivery of such Notes or did not hold such offices at the
      date of such Notes.

     

    The
      Securities Administrator shall upon Issuer Request authenticate and deliver
      the
      Notes for original issue in an aggregate initial principal amount of
      $800,253,000. The Notes shall have the following Initial Note
      Balances:

     

    
      	
              Class
                AV-1

            	 	
              $

            	
              56,800,000

            	 
	
              Class
                AV-2

            	 	
              $

            	
              23,500,000

            	 
	
              Class
                AV-3

            	 	
              $

            	
              29,700,000

            	 
	
              Class
                AF-1

            	 	
              $

            	
              194,300,000

            	 
	
              Class
                AF-2

            	 	
              $

            	
              116,400,000

            	 
	
              Class
                AF-3

            	 	
              $

            	
              82,200,000

            	 
	
              Class
                AF-4

            	 	
              $

            	
              68,400,000

            	 
	
              Class
                AF-5

            	 	
              $

            	
              46,694,000

            	 
	
              Class
                AF-6

            	 	
              $

            	
              56,444,000

            	 
	
              Class
                M-1

            	 	
              $

            	
              25,988,000

            	 
	
              Class
                M-2

            	 	
              $

            	
              24,338,000

            	 
	
              Class
                M-3

            	 	
              $

            	
              14,438,000

            	 
	
              Class
                M-4

            	 	
              $

            	
              14,025,000

            	 
	
              Class
                M-5

            	 	
              $

            	
              11,963,000

            	 
	
              Class
                M-6

            	 	
              $

            	
              10,313,000

            	 
	
              Class
                M-7

            	 	
              $

            	
              9,075,000

            	 
	
              Class
                M-8

            	 	
              $

            	
              8,250,000

            	 
	
              Class
                M-9

            	 	
              $

            	
              7,425,000

            	 
	
              Class
                N-1

            	 	
              $

            	
              29,700,000

            	 
	
              Class
                N-2

            	 	
              $

            	
              4,700,000

            	 

    

    

    Each
      of
      the Notes shall be dated the date of its authentication. The Notes shall be
      issuable as registered Notes and the Notes shall be issuable in the minimum
      initial Note Balances of $25,000 and in integral multiples of $1 in excess
      thereof; provided that Offered Notes must be purchased in minimum total
      investments of $100,000 per Class.

     

    No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless there appears on such Note a certificate of
      authentication substantially in the form provided for herein executed by the
      Securities Administrator by the manual signature of one of its authorized
      signatories, and such certificate upon any Note shall be conclusive evidence,
      and the only evidence, that such Note has been duly authenticated and delivered
      hereunder.

     

    
      	Section
              2.03.  	
              Acceptance
                of Mortgage Loans by Indenture Trustee.

            

    

     

    (a)  The
      Indenture Trustee acknowledges receipt of, subject to the exceptions it notes
      pursuant to the procedures described below, the documents (or certified copies
      thereof) referred to in Section 2.1(b) of the Mortgage Loan Sale and
      Contribution Agreement, and declares that it or the Custodian holds and will
      continue to hold those documents and any amendments, replacements or supplements
      thereto and all other assets of the Trust as Indenture Trustee in trust for
      the
      use and benefit of all present and future Holders of the Notes.

     

    On
      the
      Closing Date or no later than the 45th
      day
      following the Closing Date, the Indenture Trustee or the Custodian on behalf
      of
      the Indenture Trustee shall certify to the Seller, the Depositor and the
      Servicer (and the Indenture Trustee if the Custodian is so certifying) that
      it
      has reviewed each Mortgage File and that, as to each Mortgage Loan listed in
      the
      related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or
      any
      Mortgage Loan specifically identified in the certification in the form annexed
      hereto as Exhibit C-1 as not covered by such certification), (i) all documents
      constituting part of such Mortgage File required to be delivered to it pursuant
      to paragraphs (i) - (v) and (vii) of Section 2.1(b) of the Mortgage Loan Sale
      and Contribution Agreement are in its possession, (ii) such documents have
      been
      reviewed by it and appear regular on their face and relate to such Mortgage
      Loan, (iii) based on its examination and only as to the foregoing, the
      information set forth in the Mortgage Loan Schedule which corresponds to items
      (ii) and (iii) of the definition of “Mortgage Loan Schedule” accurately reflects
      information set forth in the Mortgage File. If within such 45-day period the
      Indenture Trustee or the Custodian on behalf of the Indenture Trustee finds
      any
      document constituting a part of a Mortgage File not to have been executed or
      received or to be unrelated to the Mortgage Loans identified in said Mortgage
      Loan Schedule or, if in the course of its review, the Indenture Trustee or
      the
      Custodian on behalf of the Indenture Trustee determines that such Mortgage
      File
      is otherwise defective in any material respect, the Indenture Trustee or the
      Custodian on behalf of the Indenture Trustee shall promptly upon the conclusion
      of its review notify the Seller in the form of an exception report and the
      Seller shall have a period of ninety (90) days after such notice within which
      to
      correct or cure any such defect.

     

    On
      the
      360th
      day
      following the Closing Date, the Indenture Trustee or the Custodian on behalf
      of
      the Indenture Trustee shall deliver to the Seller and the Servicer an exception
      report showing the documents outstanding pursuant to Section 2.1(b) of the
      Mortgage Loan Sale and Contribution Agreement along with a final certification
      annexed hereto as Exhibit C-2 updated from the previous certification issued
      in
      the form of Exhibit C-1. The Indenture Trustee or the Custodian on behalf of
      the
      Indenture Trustee shall also maintain records adequate to determine the date
      on
      which any document required to be delivered to it after such 360th
      day
      following the Closing Date must be delivered to it, and on each such date,
      the
      Indenture Trustee or the Custodian on behalf of the Indenture Trustee shall
      review the related Mortgage File to determine whether such document has, in
      fact, been delivered. After the delivery of the final certification, a form
      of
      which is attached hereto as Exhibit C-2, (i) the Indenture Trustee or the
      Custodian on behalf of the Indenture Trustee shall provide to the Servicer
      and
      the Seller (and to the Indenture Trustee if delivered by the Custodian), no
      less
      frequently than monthly, updated exception reports showing the documents
      outstanding pursuant to Section 2.1(b) of the Mortgage Loan Sale and
      Contribution Agreement until all such exceptions have been eliminated and (ii)
      the Seller shall provide to the Indenture Trustee or the Custodian on behalf
      of
      the Indenture Trustee and the Servicer, no less frequently than monthly, updated
      certifications indicating the then current status of exceptions until all such
      exceptions have been eliminated; provided
      that the
      delivery of the final certification shall not act as a waiver of any of the
      rights the Noteholders may have with respect to such exceptions, and all rights
      are reserved with respect thereto.

     

    Neither
      the Indenture Trustee nor the Custodian makes any representations as to, and
      shall not be responsible to verify, (i) the validity, sufficiency, legality,
      due
      authorization, recordation or genuineness of any document or (ii) the
      collectability, insurability or effectiveness of any of the Mortgage
      Loans.

     

    (b)  Neither
      the Indenture Trustee nor the Custodian on behalf of the Indenture Trustee
      shall
      have any responsibility for reviewing any Mortgage File except as expressly
      provided in Section 2.02. Without limiting the effect of the preceding sentence,
      in reviewing any Mortgage File pursuant to such subsection, neither the
      Indenture Trustee nor the Custodian shall have any responsibility for
      determining whether any document is valid and binding, whether the text of
      any
      assignment or endorsement is in proper or recordable form (except, if
      applicable, to determine if the Indenture Trustee is the assignee or endorsee),
      whether any document has been recorded in accordance with the requirements
      of
      any applicable jurisdiction, or whether a blanket assignment is permitted in
      any
      applicable jurisdiction, but shall only be required to determine whether a
      document has been executed, that it appears to be what it purports to be, and,
      where applicable, that it purports to be recorded, but shall not be required
      to
      determine whether any Person executing any document is authorized to do so
      or
      whether any signature thereon is genuine.

     

    The
      parties hereto understand and agree that it is not intended that any Mortgage
      Loan be included in the Trust that is a high-cost home loan as defined by the
      Homeownership and Equity Protection Act of 1994 or any other applicable
      predatory or abusive lending laws.

     

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

     

    Section
      2.04.  Acceptance
      of the Interest Rate Swap Agreements by Owner Trustee.
      The
      Issuer hereby directs the Owner Trustee to execute and the Securities
      Administrator (on behalf of the Owner Trustee) to deliver and perform the Owner
      Trustee’s obligations under the Interest Rate Swap Agreement on the Closing Date
      and thereafter on behalf of the Holders of the Class N Notes. The Issuer and
      the
      Holders of the Class N Notes by their acceptance of such Notes acknowledge
      and
      agree that the Owner Trustee shall execute and the Securities Administrator
      (on
      behalf of the Owner Trustee) shall deliver and perform the Owner Trustee’s
      obligations under the Interest Rate Swap Agreement and shall do so solely in
      its
      capacity as Owner Trustee or Securities Administrator, as applicable, and not
      in
      its respective individual capacity.

     

    The
      Owner
      Trustee acknowledges receipt of the Interest Rate Swap Agreement and declares
      that it holds and will continue to hold these documents and any amendments,
      replacements or supplements thereto for the use and benefit of all present
      and
      future Holders of the Class N Notes. Every provision of this Indenture affording
      protection to the Owner Trustee shall apply to the Owner Trustee’s execution of
      the Interest Rate Swap Agreement and the performance of its duties and
      satisfaction of its obligations thereunder.

     

    

     

    ARTICLE
      III

     

    COVENANTS

     

    
      	Section
              3.01.  	
              Collection
                of Payments with respect to the Mortgage Loans; Investment of
                Accounts. 

            

    

     

    (a)  The
      Securities Administrator shall establish with itself, a separate account (the
      “Payment Account”) titled “HSBC Bank USA, National Association, as Indenture
      Trustee, in trust for the registered holders of Renaissance Home Equity Loan
      Trust 2006-3 Home Equity Loan Asset-Backed Notes, Series 2006-3.” The Payment
      Account shall be an Eligible Account. The Securities Administrator shall deposit
      any amounts representing payments on and any collections in respect of the
      Mortgage Loans received by it immediately following receipt thereof, including,
      without limitation, all amounts withdrawn by the Servicer from the Collection
      Account pursuant to Section 3.03 of the Servicing Agreement for deposit to
      the
      Payment Account. Amounts on deposit in the Payment Account may be invested
      in
      Eligible Investments pursuant to Section 3.01(b). In addition, the Securities
      Administrator shall deposit the Initial Deposit in the Payment Account on the
      Closing Date. Immediately prior to each Payment Date, the Securities
      Administrator shall withdraw from the Payment Account and pay to the Master
      Servicer an amount equal to the Master Servicing Fee for such Payment Date
      and
      any unreimbursed Monthly Advances made by the Master Servicer. The Securities
      Administrator shall make all payments of principal of and interest on the Notes,
      subject to Section 3.03 as provided in Section 3.05 herein from monies on
      deposit in the Payment Account.

     

    (b)  Consistent
      with any requirements of the Code, all or a portion of any Account held by
      the
      Securities Administrator shall be invested and reinvested by the Securities
      Administrator (in the case of the Payment Account) or as directed in writing
      by
      the Servicer (in the case of the Collection Account) or the Seller (in the
      case
      of any other Account) (the applicable Person, the “Directing Party”), in one or
      more Eligible Investments bearing interest or sold at a discount. If the
      applicable Directing Party does not provide investment directions, or if the
      Directing Party is the Servicer and a Servicer Event of Default shall have
      occurred and be continuing, the Securities Administrator shall invest all
      Accounts in Eligible Investments described in paragraph (vi) of the definition
      of Eligible Investments. No such investment in any Account shall mature later
      than the Business Day immediately preceding the next Payment Date (except that
      for any such Account other than the Payment Account (i) if such Eligible
      Investment is an obligation of the Securities Administrator or a money market
      fund for which the Securities Administrator or any Affiliate is the manager
      or
      the advisor, then such Eligible Investment shall mature not later than such
      Payment Date and (ii) any other date may be approved by the Rating
      Agencies).

     

    (c)  If
      any
      amounts are needed for disbursement from any Account held by the Securities
      Administrator and sufficient uninvested funds are not available to make such
      disbursement, the Securities Administrator shall cause to be sold or otherwise
      converted to cash a sufficient amount of the investments in such Account. The
      Securities Administrator shall not be liable for any investment loss or other
      charge resulting therefrom unless the Securities Administrator’s failure to
      perform in accordance with this Section 3.01(c) is the cause of such loss or
      charge.

     

    (d)  The
      Securities Administrator shall not in any way be held liable by reason of any
      insufficiency in any Account held by the Securities Administrator resulting
      from
      any investment loss on any Eligible Investment included therein (except to
      the
      extent that the Securities Administrator is the obligor and has defaulted
      thereon or as provided in subsection (c) of this Section 3.01).

     

    (e)  The
      Securities Administrator shall invest and reinvest funds in the Accounts held
      by
      the Securities Administrator, to the fullest extent practicable, in such manner
      as the applicable Directing Party shall from time to time direct as set forth
      in
      Section 3.01(b), but only in one or more Eligible Investments.

     

    (f)  So
      long
      as no Servicer Event of Default shall have occurred and be continuing, all
      net
      income and gain realized from investment of, and all earnings on, funds
      deposited in the Collection Account shall be for the benefit of the Servicer
      as
      Servicing Compensation (in addition to the Servicing Fee), and shall be subject
      to withdrawal on or before the first Business Day of the month following the
      month in which such income or gain is received. The Servicer shall deposit
      in
      the Collection Account, the amount of any loss incurred in respect of any
      Eligible Investment held therein which is in excess of the income and gain
      thereon immediately upon realization of such loss, without any right to
      reimbursement therefore from its own funds.

     

    (g)  All
      net
      income and gain realized from investment of, and all earnings on, funds
      deposited in the Collection Account shall be for the benefit of the Servicer
      for
      the period from the date of deposit to the Deposit Date, as Servicing
      Compensation in addition to the Servicing Fee. All net income and gain realized
      from investment of, and all earnings on, funds deposited in the Payment Account
      shall be for the benefit of the Securities Administrator for the period from
      the
      Deposit Date to the Payment Date, as compensation. Any such income shall be
      subject to withdrawal on or before the first Business Day of the month following
      the month in which such income or gain is received. The Securities
      Administrator, as applicable, shall deposit in the Payment Account from its
      own
      funds the amount of any loss incurred in respect of any Eligible Investment
      held
      therein which is in excess of the income and gain thereon payable to Securities
      Administrator immediately upon the realization of such loss, without any right
      to reimbursement therefor.

     

    Section
      3.02.  Maintenance
      of Office or Agency.
      The
      Issuer will maintain an office or agency where, subject to satisfaction of
      conditions set forth herein, Notes may be surrendered for registration of
      transfer or exchange, and where notices and demands to or upon the Issuer in
      respect of the Notes and this Indenture may be served. The Issuer hereby
      initially appoints the Securities Administrator to serve as its agent for the
      foregoing purposes. If at any time the Issuer shall fail to maintain any such
      office or agency or shall fail to furnish the Indenture Trustee with the address
      thereof, such surrenders may be made at the office designated by the Securities
      Administrator for such purpose.

     

    Section
      3.03.  Money
      for Payments To Be Held in Trust; Paying Agent.
      As
      provided in Section 3.01, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Payment Account
      pursuant to Section 3.01 shall be made on behalf of the Issuer by the Securities
      Administrator or by the Paying Agent, and no amounts so withdrawn from the
      Payment Account for payments of Notes shall be paid over to the Issuer except
      as
      provided in this Section 3.03. The Issuer hereby appoints the Securities
      Administrator as its Paying Agent.

     

    The
      Securities Administrator will cause each Paying Agent other than the Securities
      Administrator to execute and deliver to the Securities Administrator an
      instrument in which such Paying Agent shall agree with the Securities
      Administrator (and if the Securities Administrator acts as Paying Agent it
      hereby so agrees), subject to the provisions of this Section 3.03, that such
      Paying Agent will:

     

    (i)  hold
      all
      sums held by it for the payment of amounts due with respect to the Notes in
      trust for the benefit of the Persons entitled thereto until such sums shall
      be
      paid to such Persons or otherwise disposed of as herein provided and pay such
      sums to such Persons as herein provided;

     

    (ii)  give
      the
      Securities Administrator notice of any default by the Issuer of which it has
      actual knowledge in the making of any payment required to be made with respect
      to the Notes;

     

    (iii)  at
      any
      time during the continuance of any default described in (ii) above, upon the
      written request of the Securities Administrator, forthwith pay to the Securities
      Administrator all sums so held in trust by such Paying Agent;

     

    (iv)  immediately
      resign as Paying Agent and forthwith pay to the Securities Administrator all
      sums held by it in trust for the payment of Notes if at any time it ceases
      to
      meet the standards required to be met by a Paying Agent at the time of its
      appointment;

     

    (v)  comply
      with all requirements of the Code with respect to the withholding from any
      payments made by it on any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; and

     

    (vi)  not
      commence a bankruptcy proceeding against the Issuer in connection with this
      Indenture.

     

    The
      Issuer may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, by Issuer Request direct
      any Paying Agent to pay to the Securities Administrator all sums held in trust
      by such Paying Agent, such sums to be held by the Securities Administrator
      upon
      the same trusts as those upon which the sums were held by such Paying Agent;
      and
      upon such payment by any Paying Agent to the Securities Administrator, such
      Paying Agent shall be released from all further liability with respect to such
      money.

     

    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Securities Administrator or any Paying Agent in trust for the payment of any
      amount due with respect to any Note and remaining unclaimed for one year after
      such amount has become due and payable shall be discharged from such trust
      and
      be paid to the Issuer on Issuer Request; and the Holder of such Note shall
      thereafter, as an unsecured general creditor, look only to the Issuer for
      payment thereof (but only to the extent of the amounts so paid to the Issuer),
      and all liability of the Securities Administrator or such Paying Agent with
      respect to such trust money shall thereupon cease; provided,
      however,
      that the
      Securities Administrator or such Paying Agent, before being required to make
      any
      such repayment, shall at the expense and direction of the Issuer cause to be
      published once, in an Authorized Newspaper published in the English language,
      notice that such money remains unclaimed and that, after a date specified
      therein which shall not be less than 30 days from the date of such publication,
      any unclaimed balance of such money then remaining will be repaid to the Issuer.
      The Securities Administrator may also adopt and employ, at the expense and
      direction of the Issuer, any other reasonable means of notification of such
      repayment (including, but not limited to, mailing notice of such repayment
      to
      Holders whose Notes have been called but have not been surrendered for
      redemption or whose right to or interest in monies due and payable but not
      claimed is determinable from the records of the Securities Administrator or
      of
      any Paying Agent, at the last address of record for each such
      Holder).

     

    Section
      3.04.  Existence.
      The
      Issuer will keep in full effect its existence, rights and franchises as a
      statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuer hereunder is or becomes, organized under the laws of any
      other state or of the United States of America, in which case the Issuer will
      keep in full effect its existence, rights and franchises under the laws of
      such
      other jurisdiction) and will obtain and preserve its qualification to do
      business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Mortgage Loans and each other instrument or agreement included in
      the
      Trust.

     

    
      	Section
              3.05.  	
              Payment
                of Principal and Interest.

            

    

     

    (a)  On
      each
      Payment Date from amounts on deposit in the Payment Account in accordance with
      Section 8.02 hereof, the Securities Administrator shall pay (i) to the Swap
      Provider, any Net Swap Payment or Swap Termination Payment (other than any
      Swap
      Termination Payment resulting from a Swap Provider Trigger Event) owed to the
      Swap Provider and (ii) to the Persons specified below, to the extent provided
      therein, the Available Funds for such Payment Date.

     

    (b)  On
      each
      Payment Date the Securities Administrator shall withdraw from the Payment
      Account the Available Funds and apply such amount in the following order of
      priority, in each case, to the extent of the funds remaining:

     

    (i)  With
      respect to funds in the Payment Account received with respect to the Group
      I
      Mortgage Loans

     

    
      	(1)  	
              Concurrently,
                to each Class of Group I Notes, pro
                rata
                based on amounts due, the related Class Interest Payment for the
                applicable Payment Date.

            

    

     

    
      	(2)  	
              For
                payment pursuant to Section 3.05(b)(iii) below, any remaining
                amounts.

            

    

     

    (ii)  With
      respect to funds in the Payment Account received with respect to the Group
      II
      Mortgage Loans

     

    
      	(1)  	
              Concurrently,
                to each Class of Group II Notes, pro
                rata
                based on amounts due, the related Class Interest Payment for the
                applicable Payment Date.

            

    

     

    
      	(2)  	
              For
                payment pursuant to Section 3.05(b)(iii) below, any remaining
                amounts.

            

    

     

    (iii)  With
      respect to any remaining funds in the Payment Account after payments made
      pursuant to Sections 3.05(b)(i) and 3.05(b)(ii) above

     

    
      	(1)  	
              Concurrently,
                to the Senior Notes, to the extent not paid pursuant to Sections
                3.05(b)(i) and 3.05(b)(ii) above on the applicable Payment Date,
                pro
                rata
                based on amounts due, the related Class Interest Payment for the
                applicable Payment Date; then

            

    

     

    
      	(2)  	
              Sequentially,
                first to the Class M-1 Notes, second to the Class M-2 Notes, third
                to the
                Class M-3 Notes, fourth to the Class M-4 Notes, fifth to the Class
                M-5
                Notes, sixth to the Class M-6 Notes, seventh to the Class M-7 Notes,
                eighth to the Class M-8 Notes and ninth to the Class M-9 Notes, the
                related Class Monthly Interest Amount for the applicable Payment
                Date;
                then

            

    

     

    
      	(3)  	
              To
                the Senior Notes, the Senior Principal Payment Amount for the applicable
                Payment Date, excluding any Subordination Increase Amount included
                in that
                amount, concurrently as follows:

            

    

     

    (a) To
      the
      Group I Notes, the Group I Principal Payment Amount, sequentially, to the Class
      AV-1, Class AV-2 and Class AV-3 Notes, in that order, until the respective
      Class
      Note Balances of such Classes have been reduced to zero; provided, however,
      on
      any Payment Date on which the aggregate Note Balance of the Mezzanine Notes
      has
      been reduced to zero, principal payments to the Group I Notes will be made
      on a
pro
      rata
      basis
      based on the Class Note Balance of each such Class; and

     

    (b) To
      the
      Group II Notes, the Group II Principal Payment Amount, sequentially, first
      to
      the Class AF-6 Notes, an amount equal to the Class AF-6 Lockout Payment Amount,
      and second, sequentially, to the Class AF-1, Class AF-2, Class AF-3, Class
      AF-4,
      Class AF-5 and Class AF-6 Notes, in that order, until the respective Class
      Note
      Balances of such Classes have been reduced to zero; provided, however, on any
      Payment Date on which the aggregate Note Balance of the Mezzanine Notes has
      been
      reduced to zero, principal payments to the Group II Notes will be made on a
      pro
      rata
      basis
      based on the Class Note Balance of each such Class; then

     

    
      	(4)  	
              To
                the Class M-1 Notes, the Class M-1 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(5)  	
              To
                the Class M-2 Notes, the Class M-2 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(6)  	
              To
                the Class M-3 Notes, the Class M-3 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(7)  	
              To
                the Class M-4 Notes, the Class M-4 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(8)  	
              To
                the Class M-5 Notes, the Class M-5 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(9)  	
              To
                the Class M-6 Notes, the Class M-6 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(10)  	
              To
                the Class M-7 Notes, the Class M-7 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(11)  	
              To
                the Class M-8 Notes, the Class M-8 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then 

            

    

     

    
      	(12)  	
              To
                the Class M-9 Notes, the Class M-9 Principal Payment Amount for the
                applicable Payment Date, excluding any Subordination Increase Amount
                included in that amount; then

            

    

     

    
      	(13)  	
              To
                the Offered Notes, the Subordination Increase Amount for the applicable
                Payment Date, allocated in the same order of priority set forth in
                clause
                (3) and clauses (4) through (12) of this Section 3.05(b)(iii);
                then

            

    

     

    
      	(14)  	
              Sequentially,
                first to the Class M-1 Notes, second to the Class M-2 Notes, third
                to the
                Class M-3 Notes, fourth to the Class M-4 Notes, fifth to the Class
                M-5
                Notes, sixth to the Class M-6 Notes, seventh to the Class M-7 Notes,
                eighth to the Class M-8 Notes and ninth to the Class M-9 Notes, (a)
                any
                related Class Interest Carryover Shortfall, then (b) any related
                Class
                Principal Carryover Shortfall and then (c) any interest accrued on
                any
                related Class Principal Carryover Shortfall.;
                then

            

    

     

    
      	(15)  	
              To
                the Group I Notes in the order and priority described in
                Section 3.05(c), any Group I Basis Risk Shortfall Amount,
                then

            

    

     

    
      	(16)  	
              to
                the Class N-1 Notes, the Class N-1 Interest Payment Amount for the
                related
                Interest Period; then

            

    

     

    
      	(17)  	
              to
                the Class N-2 Notes, the Class N-2 Interest Payment Amount for the
                related
                Interest Period; then

            

    

     

    
      	(18)  	
              to
                the Class N-1 Notes, the Class N-1 Principal Payment Amount, if any,
                until
                such Note Balance is reduced to zero;
                then

            

    

     

    
      	(19)  	
              to
                the Class N-2 Notes, the Class N-2 Principal Payment Amount, if any,
                until
                such Note Balance is reduced to zero;
                then

            

    

     

    
      	(20)  	
              to
                the Swap Provider, any Swap Termination Payments resulting from a
                Swap
                Provider Trigger Event; and then

            

    

     

    
      	(21)  	
              to
                the Owner Trustee, any fees, expenses and indemnities not otherwise
                paid
                and then, to the Holders of the Certificates, any remaining
                amounts.

            

    

     

    On
      each
      Payment Date, the Class Interest Payment for each Class of Senior Notes in
      a
      Note Group will be paid on an equal priority within such Note
      Group.

     

    On
      each
      Payment Date, all amounts representing Prepayment Charges in respect of the
      Mortgage Loans received during the related Prepayment Period will be withdrawn
      from the Payment Account and paid by the Securities Administrator to the Holders
      of the Class N Notes and shall not be available for payment to the Holders
      of
      any Class of Offered Notes.

     

    (c)  On
      each
      Payment Date, after making the payments of the Available Funds as set forth
      above, the Securities Administrator will determine the amount of any Basis
      Risk
      Shortfalls with respect to the Offered Notes for such Payment Date and pay
      to
      the Group I Notes, pro
      rata
      based on
      amounts due, the related Basis Risk Shortfall Amount from payments made pursuant
      to Section 3.05(b)(iii)(15) above.

     

    (d)  The
      Securities Administrator shall make payments in respect of a Payment Date to
      each Noteholder of record on the related Record Date (other than as provided
      in
      Section 8.07 respecting the final payment), by check or money order mailed
      to
      such Noteholder at the address appearing in the Note Register, or, upon written
      request by a Holder of a Note delivered to the Securities Administrator at
      least
      five Business Days prior to the related Payment Date, by wire transfer or
      otherwise, or, if not, by check or money order to such Noteholder at the address
      appearing in the Note Register. Payments among Noteholders of a Class shall
      be
      made in proportion to the Percentage Interests evidenced by the Notes of such
      Class held by such Noteholders.

     

    (e)  Each
      payment with respect to a Book-Entry Note shall be paid to the Depository,
      as
      Holder thereof, and the Depository shall be responsible for crediting the amount
      of such payment to the accounts of its Depository Participants in accordance
      with its normal procedures. Each Depository Participant shall be responsible
      for
      disbursing such payment to the Note Owners that it represents and to each
      indirect participating brokerage firm (a “brokerage firm” or “indirect
      participating firm”) for which it acts as agent. Each brokerage firm shall be
      responsible for disbursing funds to the Note Owners that it represents. None
      of
      the Securities Administrator, the Indenture Trustee, the Note Registrar, the
      Paying Agent, the Depositor, the Servicer or the Master Servicer shall have
      any
      responsibility therefor except as otherwise provided by this Indenture or
      applicable law.

     

    (f)  On
      each
      Payment Date, the Certificate Paying Agent shall deposit in the Certificate
      Distribution Account all amounts it received pursuant to this Section 3.05
      for
      the purpose of distributing such funds pursuant to the Trust
      Agreement.

     

    (g)  The
      principal of each Note shall be due and payable in full on the Final Stated
      Maturity Date for such Note as provided in the forms of Notes set forth in
      Exhibit A-1 and Exhibit A-2 to this Indenture. All principal payments on the
      Notes shall be made to the Noteholders entitled thereto in accordance with
      the
      Percentage Interests represented by such Notes. The Securities Administrator
      shall notify the Person in whose name a Note is registered at the close of
      business on the Record Date preceding the Final Stated Maturity Date or other
      final Payment Date (including any final Payment Date resulting from any
      redemption pursuant to Section 8.07 hereof). Such notice shall to the extent
      practicable be mailed no later than five Business Days prior to such Final
      Stated Maturity Date or other final Payment Date and shall specify that payment
      of the principal amount and any interest due with respect to such Note at the
      Final Stated Maturity Date or other final Payment Date will be payable only
      upon
      presentation and surrender of such Note and shall specify the place where such
      Note may be presented and surrendered for such final payment. No interest shall
      accrue on the Notes on or after the Final Stated Maturity Date or any such
      other
      final Payment Date.

     

    
      	Section
              3.06.  	
              Protection
                of Collateral.

            

    

     

    (a)  The
      Issuer will from time to time prepare, execute and deliver all such supplements
      and amendments hereto and all such financing statements, continuation
      statements, instruments of further assurance and other instruments, and will
      take such other action necessary or advisable to:

     

    (i)  maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof;

     

    (ii)  perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iii)  cause
      the
      Issuer, the Servicer or the Master Servicer to enforce any of the rights to
      the
      Mortgage Loans; or

     

    (iv)  preserve
      and defend title to the Trust and the rights of the Indenture Trustee and the
      Noteholders in the Trust against the claims of all persons and
      parties.

     

    (b)  Except
      as
      otherwise provided in this Indenture, the Indenture Trustee shall not remove
      any
      portion of the Trust that consists of money or is evidenced by an instrument,
      certificate or other writing from the jurisdiction in which it was held at
      the
      date of the most recent Opinion of Counsel delivered pursuant to Section 3.07
      hereof (or from the jurisdiction in which it was held as described in the
      Opinion of Counsel delivered on the Closing Date pursuant to Section 3.07(a)
      hereof), or if no Opinion of Counsel has yet been delivered pursuant to Section
      3.07(b) hereof, unless the Indenture Trustee shall have first received an
      Opinion of Counsel to the effect that the lien and security interest created
      by
      this Indenture with respect to such property will continue to be maintained
      after giving effect to such action or actions.

     

    The
      Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact
      to
      sign any financing statement, continuation statement or other instrument
      required to be signed pursuant to this Section 3.06 upon the Issuer’s
      preparation thereof and delivery to the Indenture Trustee.

     

    
      	Section
              3.07.  	
              Opinions
                as to Collateral.

            

    

     

    (a) On
      the
      Closing Date, the Issuer shall furnish to the Indenture Trustee, the Securities
      Administrator and the Owner Trustee an Opinion of Counsel either stating that,
      in the opinion of such counsel, such action has been taken with respect to
      the
      recording and filing of this Indenture, any indentures supplemental hereto,
      and
      any other requisite documents, and with respect to the execution and filing
      of
      any financing statements and continuation statements, as are necessary to
      perfect and make effective the lien and first priority security interest in
      the
      Collateral and reciting the details of such action, or stating that, in the
      opinion of such counsel, no such action is necessary to make such lien and
      first
      priority security interest effective.

     

    (b) On
      or
      before April 15th
      in each
      calendar year, beginning in 2007, the Issuer shall furnish to the Indenture
      Trustee and the Securities Administrator an Opinion of Counsel at the expense
      of
      the Issuer either stating that, in the opinion of such counsel, such action
      has
      been taken with respect to the recording, filing, re-recording and re-filing
      of
      this Indenture, any indentures supplemental hereto and any other requisite
      documents and with respect to the execution and filing of any financing
      statements and continuation statements as is necessary to maintain the lien
      and
      first priority security interest in the Collateral and reciting the details
      of
      such action or stating that in the opinion of such counsel no such action is
      necessary to maintain such lien and security interest. Such Opinion of Counsel
      shall also describe the recording, filing, re-recording and re-filing of this
      Indenture, any indentures supplemental hereto and any other requisite documents
      and the execution and filing of any financing statements and continuation
      statements that will, in the opinion of such counsel, be required to maintain
      the lien and security interest in the Collateral until December 31st
      in the
      following calendar year.

     

    
      	Section
              3.08.  	
              Performance
                of Obligations.

            

    

     

    The
      Issuer will punctually perform and observe all of its obligations and agreements
      contained in this Indenture, the Basic Documents and in the instruments and
      agreements included in the Collateral.

     

    The
      Issuer may contract with other Persons to assist it in performing its duties
      under this Indenture, and any performance of such duties by a Person identified
      to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be
      deemed to be action taken by the Issuer.

     

    The
      Issuer will not take any action or permit any action to be taken by others
      which
      would release any Person from any of such Person’s covenants or obligations
      under any of the documents relating to the Mortgage Loans or under any
      instrument included in the Collateral, or which would result in the amendment,
      hypothecation, subordination, termination or discharge of, or impair the
      validity or effectiveness of, any of the documents relating to the Mortgage
      Loans or any such instrument, except such actions as the Servicer or the Master
      Servicer is expressly permitted to take in the Servicing Agreement. The
      Indenture Trustee and the Securities Administrator may exercise the rights
      of
      the Issuer to direct the actions of the Servicer and/or the Master Servicer
      pursuant to the Servicing Agreement.

     

    The
      Issuer may retain an administrator and may enter into contracts with other
      Persons for the performance of the Issuer’s obligations hereunder, and
      performance of such obligations by such Persons shall be deemed to be
      performance of such obligations by the Issuer.

     

    
      	Section
              3.09.  	
              Negative
                Covenants.  So
                long as any Notes are Outstanding, the Issuer shall
                not:

            

    

     

    (i)  except
      as
      expressly permitted by this Indenture, sell, transfer, exchange or otherwise
      dispose of the Trust, unless directed to do so by the Indenture
      Trustee;

     

    (ii)  claim
      any
      credit on, or make any deduction from the principal or interest payable in
      respect of, the Notes (other than amounts properly withheld from such payments
      under the Code) or assert any claim against any present or former Noteholder
      by
      reason of the payment of the taxes levied or assessed upon any part of the
      Trust;

     

    (iii)  (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Trust or
      any
      part thereof or any interest therein or the proceeds thereof or (C) permit
      the
      lien of this Indenture not to constitute a valid first priority security
      interest in the Trust; or

     

    (iv)  waive
      or
      impair, or fail to assert rights under, the Mortgage Loans, or impair or cause
      to be impaired the Issuer’s interest in the Mortgage Loans, the Mortgage Loan
      Sale and Contribution Agreement or in any Basic Document, if any such action
      would materially and adversely affect the interests of the
      Noteholders.

     

    
      	Section
              3.10.  	
              [Reserved.]

            

    

     

    
      	Section
              3.11.  	
              [Reserved.]

            

    

     

    Section
      3.12.  Representations
      and Warranties Concerning the Mortgage Loans.
      The
      Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit of the
      representations and warranties made by the Seller and the Originator in the
      Mortgage Loan Sale and Contribution Agreement concerning the Seller and the
      Mortgage Loans to the same extent as though such representations and warranties
      were made directly to the Indenture Trustee. If a Responsible Officer of the
      Indenture Trustee or the Securities Administrator has actual knowledge of any
      breach of any representation or warranty made by the Seller or the Originator
      in
      the Mortgage Loan Sale and Contribution Agreement, the Indenture Trustee or
      the
      Securities Administrator shall promptly notify the Seller or the Originator,
      as
      applicable, of such finding and the Seller’s or the Originator’s obligation to
      cure such defect or repurchase or substitute for the related Mortgage
      Loan.

     

    Section
      3.13.  Amendments
      to Servicing Agreement.
      The
      Issuer covenants with the Indenture Trustee and the Securities Administrator
      that it will not enter into any amendment or supplement to the Servicing
      Agreement without the prior written consent of the Indenture Trustee and the
      Securities Administrator.

     

    Section
      3.14.  Servicer
      as Agent and Bailee of the Indenture Trustee.
      Solely
      for purposes of perfection under Section 9-305 of the UCC or other similar
      applicable law, rule or regulation of the state in which such property is held
      by the Servicer, the Issuer, the Indenture Trustee and the Securities
      Administrator hereby acknowledge that the Servicer is acting as bailee of the
      Indenture Trustee in holding amounts on deposit in the Collection Account,
      as
      well as its bailee in holding any Related Documents released to the Servicer,
      and any other items constituting a part of the Trust which from time to time
      come into the possession of the Servicer. It is intended that, by the Servicer’s
      acceptance of such bailee arrangement, the Indenture Trustee, as a secured
      party
      of the Mortgage Loans, will be deemed to have possession of such Related
      Documents, such monies and such other items for purposes of Section 9-305 of
      the
      UCC of the state in which such property is held by the Servicer. Neither the
      Indenture Trustee nor the Securities Administrator shall be liable with respect
      to such documents, monies or items while in possession of the
      Servicer.

     

    Section
      3.15.  Investment
      Company Act.
      The
      Issuer shall not become an “investment company” or be under the “control” of an
“investment company” as such terms are defined in the Investment Company Act of
      1940, as amended (or any successor or amendatory statute), and the rules and
      regulations thereunder (taking into account not only the general definition
      of
      the term “investment company” but also any available exceptions to such general
      definition); provided,
      however,
      that the
      Issuer shall be in compliance with this Section 3.15 if it shall have obtained
      an order exempting it from regulation as an “investment company” so long as it
      is in compliance with the conditions imposed in such order.

     

    
      	Section
              3.16.  	
              Issuer
                May Consolidate, etc.

            

    

     

    (a)  The
      Issuer shall not consolidate or merge with or into any other Person,
      unless:

     

    (i)  the
      Person (if other than the Issuer) formed by or surviving such consolidation
      or
      merger shall be a Person organized and existing under the laws of the United
      States of America or any state or the District of Columbia and shall expressly
      assume, by an indenture supplemental hereto, executed and delivered to the
      Indenture Trustee and the Securities Administrator, in form reasonably
      satisfactory to the Indenture Trustee and the Securities Administrator, the
      due
      and punctual payment of the principal of and interest on all Notes, and all
      other amounts payable to the Indenture Trustee and the Securities Administrator,
      the payment to the Certificate Paying Agent of all amounts due to the
      Certificateholders, and the performance or observance of every agreement and
      covenant of this Indenture on the part of the Issuer to be performed or
      observed, all as provided herein;

     

    (ii)  immediately
      after giving effect to such transaction, no Event of Default shall have occurred
      and be continuing;

     

    (iii)  the
      Rating Agencies shall have notified the Issuer that such transaction shall
      not
      cause the rating of the Notes to be reduced, suspended or withdrawn or to be
      considered by either Rating Agency to be below investment grade;

     

    (iv)  the
      Issuer shall have received an Opinion of Counsel (and shall have delivered
      a
      copy thereof to the Indenture Trustee and the Securities Administrator) to
      the
      effect that such transaction will not (A) result in a “substantial modification”
of the Notes under Treasury Regulation Section 1.1001-3, or adversely affect
      the
      status of the Notes as indebtedness for federal income tax purposes, or (B)
      if
      100% of the Certificates are not owned by the Seller, cause the Trust to be
      subject to an entity level tax for federal income tax purposes;

     

    (v)  any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi)  the
      Issuer shall have delivered to the Indenture Trustee and the Securities
      Administrator an Officer’s Certificate and an Opinion of Counsel each stating
      that such consolidation or merger and such supplemental indenture comply with
      this Article III and that all conditions precedent herein provided for or
      relating to such transaction have been complied with (including any filing
      required by the Exchange Act), and that such supplemental indenture is
      enforceable.

     

    (b)  The
      Issuer shall not convey or transfer any of its properties or assets, including
      those included in the Collateral, to any Person, unless:

     

    (i)  the
      Person that acquires by conveyance or transfer the properties and assets of
      the
      Issuer, the conveyance or transfer of which is hereby restricted, shall (A)
      be a
      United States citizen or a Person organized and existing under the laws of
      the
      United States of America or any state thereof, (B) expressly assume, by an
      indenture supplemental hereto, executed and delivered to the Indenture Trustee
      and the Securities Administrator, in form satisfactory to the Indenture Trustee
      and the Securities Administrator, the due and punctual payment of the principal
      of and interest on all Notes and the performance or observance of every
      agreement and covenant of this Indenture on the part of the Issuer to be
      performed or observed, all as provided herein, (C) expressly agree by means
      of
      such supplemental indenture that all right, title and interest so conveyed
      or
      transferred shall be subject and subordinate to the rights of the Holders of
      the
      Notes, (D) unless otherwise provided in such supplemental indenture, expressly
      agree to indemnify, defend and hold harmless the Issuer, the Indenture Trustee
      and the Securities Administrator against and from any loss, liability or expense
      arising under or related to this Indenture and the Notes and (E) expressly
      agree
      by means of such supplemental indenture that such Person (or if a group of
      Persons, then one specified Person) shall make all filings with the Commission
      (and any other appropriate Person) required by the Exchange Act in connection
      with the Notes;

     

    (ii)  immediately
      after giving effect to such transaction, no Default or Event of Default shall
      have occurred and be continuing;

     

    (iii)  the
      Rating Agencies shall have notified the Issuer that such transaction shall
      not
      cause the rating of the Notes to be reduced, suspended or
      withdrawn;

     

    (iv)  the
      Issuer shall have received an Opinion of Counsel (and shall have delivered
      a
      copy thereof to the Indenture Trustee and the Securities Administrator) to
      the
      effect that such transaction will not (A) result in a “substantial modification”
of the Notes under Treasury Regulation Section 1.1001-3, or adversely affect
      the
      status of the Notes as indebtedness for federal income tax purposes, or (B)
      if
      100% of the Certificates are not owned by the Seller, cause the Trust to be
      subject to an entity level tax for federal income tax purposes;

     

    (v)  any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi)  the
      Issuer shall have delivered to the Indenture Trustee and the Securities
      Administrator an Officer’s Certificate and an Opinion of Counsel each stating
      that such conveyance or transfer and such supplemental indenture comply with
      this Article III and that all conditions precedent herein provided for relating
      to such transaction have been complied with (including any filing required
      by
      the Exchange Act).

     

    
      	Section
              3.17.  	
              Successor
                or Transferee.

            

    

     

    (a)  Upon
      any
      consolidation or merger of the Issuer in accordance with Section 3.16(a), the
      Person formed by or surviving such consolidation or merger (if other than the
      Issuer) shall succeed to, and be substituted for, and may exercise every right
      and power of, the Issuer under this Indenture with the same effect as if such
      Person had been named as the Issuer herein.

     

    (b)  Upon
      a
      conveyance or transfer of all the assets and properties of the Issuer pursuant
      to Section 3.16(b), the Issuer will be released from every covenant and
      agreement of this Indenture to be observed or performed on the part of the
      Issuer with respect to the Notes immediately upon the delivery of written notice
      to the Indenture Trustee and the Securities Administrator of such conveyance
      or
      transfer.

     

    Section
      3.18.  No
      Other Business.
      The
      Issuer shall not engage in any business other than financing, purchasing, owning
      and selling and managing the Mortgage Loans and the issuance of the Notes and
      Certificates in the manner contemplated by this Indenture and the Basic
      Documents and all activities incidental thereto.

     

    Section
      3.19.  No
      Borrowing.
      The
      Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
      directly or indirectly, for any indebtedness except for the Notes under this
      Indenture.

     

    Section
      3.20.  Guarantees,
      Loans, Advances and Other Liabilities.  Except
      as contemplated by this Indenture or the Basic Documents, the Issuer shall
      not
      make any loan or advance or credit to, or guarantee (directly or indirectly
      or
      by an instrument having the effect of assuring another’s payment or performance
      on any obligation or capability of so doing or otherwise), endorse or otherwise
      become contingently liable, directly or indirectly, in connection with the
      obligations, stocks or dividends of, or own, purchase, repurchase or acquire
      (or
      agree contingently to do so) any stock, obligations, assets or securities of,
      or
      any other interest in, or make any capital contribution to, any other
      Person.

     

    Section
      3.21.  Capital
      Expenditures.
      The
      Issuer shall not make any expenditure (by long-term or operating lease or
      otherwise) for capital assets (either realty or personalty).

     

    Section
      3.22.     Reserved.

     

    Section
      3.23.  Restricted
      Payments.
      The
      Issuer shall not, directly or indirectly, (i) pay any dividend or make any
      distribution (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or security in or of the Issuer, (ii) redeem, purchase, retire
      or otherwise acquire for value any such ownership or equity interest or security
      or (iii) set aside or otherwise segregate any amounts for any such purpose;
      provided,
      however,
      that the
      Issuer may make, or cause to be made, (x) distributions and payments to the
      Owner Trustee, the Indenture Trustee, the Securities Administrator, Noteholders
      and the Certificateholders as contemplated by, and to the extent funds are
      available for such purpose under this Indenture and the Trust Agreement and
      (y)
      payments to the Servicer or the Master Servicer pursuant to the terms of the
      Servicing Agreement. The Issuer will not, directly or indirectly, make payments
      to or distributions from the Collection Account except in accordance with this
      Indenture and the Basic Documents.

     

    Section
      3.24.  Notice
      of Events of Default.
      The
      Issuer shall give the Indenture Trustee, the Securities Administrator and the
      Rating Agencies prompt written notice of each Event of Default hereunder and
      under the Trust Agreement.

     

    Section
      3.25.  Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee or the Securities Administrator, the Issuer
      will execute and deliver such further instruments and do such further acts
      as
      may be reasonably necessary or proper to carry out more effectively the purpose
      of this Indenture.

     

    Section
      3.26.  Statements
      to Noteholders.
      On each
      Payment Date, the Securities Administrator and the Certificate Registrar shall
      prepare and make available on the Securities Administrator’s website,
      https://www.ctslink.com (or deliver at the recipient’s option), to each
      Noteholder and Certificateholder the most recent statement prepared by the
      Securities Administrator pursuant to Section 7.05 hereof.

     

    
      	Section
              3.27.  	
              [Reserved].

            

    

     

    
      	Section
              3.28.  	
              Certain
                Representations Regarding the Trust.

            

    

     

    (a)  With
      respect to that portion of the Collateral described in clauses (a) through
      (d)
      of the definition of Collateral, the Issuer represents to the Indenture Trustee
      and the Securities Administrator that:

     

    (i)  This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuer.

     

    (ii)  The
      Collateral constitutes “deposit accounts” or “instruments,” as applicable,
      within the meaning of the applicable UCC.

     

    (iii)  The
      Issuer owns and has good and marketable title to the Collateral, free and clear
      of any lien, claim or encumbrance of any Person.

     

    (iv)  The
      Issuer has taken all steps necessary to cause the Indenture Trustee to become
      the account holder of the Collateral.

     

    (v)  Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Collateral.

     

    (vi)  The
      Collateral is not in the name of any Person other than the Issuer or the
      Indenture Trustee. The Issuer has not consented to the bank maintaining the
      Collateral to comply with instructions of any Person other than the Indenture
      Trustee.

     

    (b)  With
      respect to that portion of the Collateral described in clause (e), the Issuer
      represents to the Indenture Trustee and the Securities Administrator
      that:

     

    (i)  This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuer.

     

    (ii)  The
      Collateral constitutes “general intangibles” within the meaning of the
      applicable UCC.

     

    (iii)  The
      Issuer owns and has good and marketable title to the Collateral, free and clear
      of any lien, claim or encumbrance of any Person.

     

    (iv)  Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Collateral.

     

    (c)  With
      respect to any Collateral in which a security interest may be perfected by
      filing, the Issuer has not authorized the filing of, and is not aware of any
      financing statements against, the Issuer, that include a description of
      collateral covering such Collateral, other than any financing statement relating
      to the security interest granted to the Indenture Trustee hereunder or that
      has
      been terminated. The Issuer is not aware of any judgment or tax lien filings
      against the Issuer.

     

    (d)  The
      Issuer has caused or will have caused, within ten days, the filing of all
      appropriate financing statements in the proper filing office in the appropriate
      jurisdictions under applicable law in order to perfect the security interest
      in
      all Collateral granted to the Indenture Trustee hereunder in which a security
      interest may be perfected by filing and the Issuer will cause such security
      interest to be maintained. Any financing statement that is filed in connection
      with this Section 3.28 shall contain a statement that a purchase or security
      interest in any collateral described therein will violate the rights of the
      secured party named in such financing statement.

     

    (e)  The
      foregoing representations may not be waived and shall survive the issuance
      of
      the Notes.

     

    
      	Section
              3.29.  	
              Allocation
                of Realized Losses.

            

    

     

    (a)  On
      each
      Payment Date, the Securities Administrator shall determine the total of the
      Applied Realized Loss Amounts for such Payment Date. The Applied Realized Loss
      Amount for any Payment Date shall be applied by reducing the Class Note Balance
      of each Class of Mezzanine Notes beginning with the Class of Mezzanine Notes
      then outstanding with the lowest relative payment priority, in each case until
      the respective Class Note Balance thereof is reduced to zero. Any Applied
      Realized Loss Amount allocated to a related Class of Mezzanine Notes shall
      be
      allocated among the Mezzanine Notes of such Class in proportion to their
      respective Percentage Interests.

     

    (b)  With
      respect to any Class of Mezzanine Notes to which an Applied Realized Loss Amount
      has been allocated (including any such Class for which the related Class Note
      Balance has been reduced to zero), the Class Note Balance of such Class will
      be
      increased up to the amount of Recoveries for such Payment Date, beginning with
      the Class of Mezzanine Notes with the highest relative payment priority, up
      to
      the amount of Applied Realized Loss Amounts previously allocated to reduce
      such
      Class Note Balance. Any increase to the Class Note Balance of a Class of
      Mezzanine Notes shall increase the Note Balance of the related Class
pro
      rata
      in
      accordance with each Percentage Interest.

     

    
      	Section
              3.30.  	
              Reserved.

            

    

     

    
      	Section
              3.31.  	
              Reserved. 

            

    

     

    
      	Section
              3.32.  	
              Reserved.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IV

     

    THE
      NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

     

    Section
      4.01.  The
      Notes.
      Each
      Class of Notes shall be registered in the name of a nominee designated by the
      Depository. Beneficial Owners will hold interests in the Notes through the
      book-entry facilities of the Depository in minimum initial Note Balances of
      $25,000 and integral multiples of $1 in excess thereof; provided that Offered
      Notes must be purchased in minimum total investments of $100,000 per
      Class.

     

    The
      Securities Administrator may for all purposes (including the making of payments
      due on the Notes) deal with the Depository as the authorized representative
      of
      the Beneficial Owners with respect to the Notes for the purposes of exercising
      the rights of Holders of the Notes hereunder. Except as provided in the next
      succeeding paragraph of this Section 4.01, the rights of Beneficial Owners
      with
      respect to the Notes shall be limited to those established by law and agreements
      between such Beneficial Owners and the Depository and Depository Participants.
      Except as provided in Section 4.08 hereof, Beneficial Owners shall not be
      entitled to definitive notes for the Notes as to which they are the Beneficial
      Owners. Requests and directions from, and votes of, the Depository as Holder
      of
      the Notes shall not be deemed inconsistent if they are made with respect to
      different Beneficial Owners. The Securities Administrator may establish a
      reasonable record date in connection with solicitations of consents from or
      voting by Noteholders and give notice to the Depository of such record date.
      Without the consent of the Issuer and the Securities Administrator, no Note
      may
      be transferred by the Depository except to a successor Depository that agrees
      to
      hold such Note for the account of the Beneficial Owners.

     

    In
      the
      event the Depository Trust Company resigns or is removed as Depository, the
      Securities Administrator with the approval of the Issuer may appoint a successor
      Depository. If no successor Depository has been appointed within 30 days of
      the
      effective date of the Depository’s resignation or removal, each Beneficial Owner
      shall be entitled to certificates representing the Notes it beneficially owns
      in
      the manner prescribed in Section 4.08.

     

    The
      Notes
      shall, on original issue, be executed on behalf of the Issuer by the Owner
      Trustee, not in its individual capacity but solely as Owner Trustee,
      authenticated by the Securities Administrator and delivered by the Securities
      Administrator to or upon the order of the Issuer.

     

    
      	Section
              4.02.  	
              Registration
                of and Limitations on Transfer and Exchange of Notes; Appointment
                of Note
                Registrar and Certificate.

            

    

     

    The
      Securities Administrator shall cause to be kept at the Corporate Trust Office
      a
      Note Register in which, subject to such reasonable regulations as it may
      prescribe, the Note Registrar shall provide for the registration of Notes and
      of
      transfers and exchanges of Notes as herein provided.

     

    Subject
      to the restrictions and limitations set forth below, upon surrender for
      registration of transfer of any Note at the Corporate Trust Office, the Issuer
      shall execute and the Note Registrar shall authenticate and deliver, in the
      name
      of the designated transferee or transferees, one or more new Notes in authorized
      initial Note Balances evidencing the same Class and aggregate Percentage
      Interests.

     

    Subject
      to the foregoing, at the option of the Noteholders, Notes may be exchanged
      for
      other Notes of like tenor and in authorized initial Note Balances evidencing
      the
      same Class and aggregate Percentage Interests upon surrender of the Notes to
      be
      exchanged at the Corporate Trust Office of the Note Registrar. Whenever any
      Notes are so surrendered for exchange, the Issuer shall execute and the
      Securities Administrator shall authenticate and deliver the Notes which the
      Noteholder making the exchange is entitled to receive. Each Note presented
      or
      surrendered for registration of transfer or exchange shall (if so required
      by
      the Note Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer in form reasonably satisfactory to the Note Registrar
      duly executed by the Holder thereof or his attorney duly authorized in writing
      with such signature guaranteed by a commercial bank or trust company located
      or
      having a correspondent located in the city of New York. Notes delivered upon
      any
      such transfer or exchange will evidence the same obligations, and will be
      entitled to the same rights and privileges, as the Notes
      surrendered.

     

    No
      service charge shall be made for any registration of transfer or exchange of
      Notes, but the Note Registrar shall require payment of a sum sufficient to
      cover
      any tax or governmental charge that may be imposed in connection with any
      registration of transfer or exchange of Notes.

     

    The
      Issuer hereby appoints the Securities Administrator as (i) Certificate Registrar
      to keep at its Corporate Trust Office a Certificate Register pursuant to Section
      3.09 of the Trust Agreement 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 thereof pursuant to Section
      3.05
      of the Trust Agreement and (ii) Note Registrar under this Indenture. The
      Securities Administrator hereby accepts such appointments.

     

    Section
      4.03.  Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Securities Administrator, or the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Note, and (ii) there is delivered to the
      Securities Administrator such security or indemnity as may be required by it
      to
      hold the Issuer, the Indenture Trustee and the Securities Administrator
      harmless, then, in the absence of notice to the Issuer, the Note Registrar,
      the
      Indenture Trustee or the Securities Administrator that such Note has been
      acquired by a protected purchaser, and provided that the requirements of Section
      8-405 of the UCC are met, the Issuer shall execute, and upon its request the
      Securities Administrator shall authenticate and deliver, in exchange for or
      in
      lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note;
      provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, instead of issuing a
      replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
      so
      due or payable without surrender thereof. If, after the delivery of such
      replacement Note or payment of a destroyed, lost or stolen Note pursuant to
      the
      proviso to the preceding sentence, a protected purchaser of the original Note
      in
      lieu of which such replacement Note was issued presents for payment such
      original Note, the Issuer and the Securities Administrator shall be entitled
      to
      recover such replacement Note (or such payment) from the Person to whom it
      was
      delivered or any Person taking such replacement Note from such Person to whom
      such replacement Note was delivered or any assignee of such Person, except
      a
      bona fide purchaser, and shall be entitled to recover upon the security or
      indemnity provided therefor to the extent of any loss, damage, cost or expense
      incurred by the Issuer, the Indenture Trustee or the Securities Administrator
      in
      connection therewith.

     

    Upon
      the
      issuance of any replacement Note under this Section 4.03, the Issuer may require
      the payment by the Holder of such Note of a sum sufficient to cover any tax
      or
      other governmental charge that may be imposed in relation thereto and any other
      reasonable expenses (including the fees and expenses of the Indenture Trustee
      and the Securities Administrator) connected therewith.

     

    Every
      replacement Note issued pursuant to this Section 4.03 in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuer, whether or not the mutilated,
      destroyed, lost or stolen Note shall be at any time enforceable by anyone,
      and
      shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Notes duly issued hereunder.

     

    The
      provisions of this Section 4.03 are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Notes.

     

    Section
      4.04.  Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuer, the
      Indenture Trustee, the Securities Administrator, the Paying Agent and any agent
      of any of them may treat the Person in whose name any Note is registered (as
      of
      the day of determination) as the owner of such Note for the purpose of receiving
      payments of principal of and interest, if any, on such Note and for all other
      purposes whatsoever, whether or not such Note be overdue, and neither the
      Issuer, the Indenture Trustee, the Securities Administrator the Paying Agent
      nor
      any agent of any of them shall be affected by notice to the
      contrary.

     

    Section
      4.05.  Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall, if surrendered to any Person other than the Securities Administrator,
      be
      delivered to the Securities Administrator and shall be promptly cancelled by
      the
      Securities Administrator. The Issuer may at any time deliver to the Securities
      Administrator for cancellation any Notes previously authenticated and delivered
      hereunder which the Issuer may have acquired in any manner whatsoever, and
      all
      Notes so delivered shall be promptly cancelled by the Securities Administrator.
      No Notes shall be authenticated in lieu of or in exchange for any Notes
      cancelled as provided in this Section 4.05, except as expressly permitted by
      this Indenture. All cancelled Notes may be held or disposed of by the Securities
      Administrator in accordance with its standard retention or disposal policy
      as in
      effect at the time unless the Issuer shall direct by an Issuer Request that
      they
      be destroyed or returned to it; provided,
      however,
      that
      such Issuer Request is timely and the Notes have not been previously disposed
      of
      by the Securities Administrator.

     

    
      	Section
              4.06.  	
              Book-Entry
                Notes.  

            

    

     

    (a)  The
      Notes, upon original issuance, will be issued in the form of typewritten Notes
      representing the Book-Entry Notes, to be delivered to The Depository Trust
      Company, the initial Depository, by, or on behalf of, the Issuer. The Notes
      shall initially be registered on the Note Register in the name of Cede &
Co., the nominee of the initial Depository, and no Beneficial Owner will receive
      a Definitive Note representing such Beneficial Owner’s interest in such Note,
      except as provided in Section 4.08. With respect to such Notes, unless and
      until
      definitive, fully registered Notes (the “Definitive Notes”) have been issued to
      Beneficial Owners pursuant to Section 4.08:

     

    (i)  the
      provisions of this Section 4.06 shall be in full force and effect;

     

    (ii)  the
      Note
      Registrar, the Paying Agent, the Indenture Trustee and the Securities
      Administrator shall be entitled to deal with the Depository for all purposes
      of
      this Indenture (including the payment of principal of and interest on the Notes
      and the giving of instructions or directions hereunder) as the sole holder
      of
      the Notes, and shall have no obligation to the Beneficial Owners of the
      Notes;

     

    (iii)  to
      the
      extent that the provisions of this Section 4.06 conflict with any other
      provisions of this Indenture, the provisions of this Section 4.06 shall
      control;

     

    (iv)  the
      rights of Beneficial Owners shall be exercised only through the Depository
      and
      shall be limited to those established by law and agreements between such Owners
      of Notes and the Depository and/or the Depository Participants. Unless and
      until
      Definitive Notes are issued pursuant to Section 4.08, the initial Depository
      will make book-entry transfers among the Depository Participants and receive
      and
      transmit payments of principal of and interest on the Notes to such Depository
      Participants; and

     

    (v)  whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Notes evidencing a specified percentage of the
      Note
      Balances of the Notes, the Depository shall be deemed to represent such
      percentage with respect to the Notes only to the extent that it has received
      instructions to such effect from Beneficial Owners and/or Depository
      Participants owning or representing, respectively, such required percentage
      of
      the beneficial interest in the Notes and has delivered such instructions to
      the
      Securities Administrator.

     

    (b)  The
      Class
      N Notes offered and sold in reliance on the exemption from registration under
      Rule 144A shall be issued initially in the form of one or more permanent global
      Notes in definitive, fully registered form without interest coupons with the
      applicable legends set forth in Exhibit A-2 added to the forms of such Class
      N
      Notes (each, a “Restricted Global Security”), which shall be deposited on behalf
      of the subscribers for such Class N Notes represented thereby with the
      Securities Administrator as custodian for the Depository and registered in
      the
      name of a nominee of the Depository, duly executed by the Issuer and
      authenticated by the Securities Administrator as hereinafter provided. The
      aggregate Note Balance of the Restricted Global Securities may from time to
      time
      be increased or decreased by adjustments made on the records of the Securities
      Administrator or
      the
      Depository or its nominee, as the case may be, as hereinafter
      provided.

     

    (c)  The
      Class
      N Notes sold in offshore transactions in reliance on Regulation S shall be
      issued initially in the form of one or more permanent global Notes in
      definitive, fully registered form without interest coupons with the applicable
      legends set forth in Exhibit A-2 hereto added to the forms of such Class N
      Notes
      (each, a “Regulation S Global Security”), which shall be deposited on behalf of
      the subscribers for such Class N Notes represented thereby with the Securities
      Administrator as custodian for the Depository, duly executed by the Issuer
      and
      authenticated by the Securities Administrator as hereinafter provided. The
      aggregate Note Balance of the Regulation S Global Securities may from time
      to
      time be increased or decreased by adjustments made on the records of the
      Securities Administrator or the Depository or its nominee, as the case may
      be,
      as hereinafter provided.

     

    Section
      4.07.  Notices
      to Depository.
      Whenever a notice or other communication to the Note Holders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      Beneficial Owners pursuant to Section 4.08, the Securities Administrator shall
      give all such notices and communications specified herein to be given to Holders
      of the Notes to the Depository, and shall have no obligation to the Beneficial
      Owners.

     

    Section
      4.08.  Definitive
      Notes.
      If (i)
      the Securities Administrator determines that the Depository is no longer willing
      or able to properly discharge its responsibilities with respect to the Notes
      and
      the Securities Administrator is unable to locate a qualified successor or (ii)
      after the occurrence of an Event of Default, Beneficial Owners of Notes
      representing beneficial interests aggregating at least a majority of the Note
      Balance of the Notes advise the Depository in writing that the continuation
      of a
      book-entry system through the Depository is no longer in the best interests
      of
      the Beneficial Owners, then the Depository shall notify all Beneficial Owners
      and the Securities Administrator of the occurrence of any such event and of
      the
      availability of Definitive Notes to Beneficial Owners requesting the same.
      Upon
      surrender to the Securities Administrator of the typewritten Notes representing
      the Book-Entry Notes by the Depository, accompanied by registration
      instructions, the Issuer shall execute and the Securities Administrator shall
      authenticate the Definitive Notes in accordance with the instructions of the
      Depository. None of the Issuer, the Note Registrar, the Indenture Trustee or
      the
      Securities Administrator shall be liable for any delay in delivery of such
      instructions and may conclusively rely on, and shall be protected in relying
      on,
      such instructions. Upon the issuance of Definitive Notes, the Securities
      Administrator shall recognize the Holders of the Definitive Notes as
      Noteholders.

     

    Section
      4.09.  Tax
      Treatment.
      The
      Issuer has entered into this Indenture, and the Notes will be issued with the
      intention that, for federal, state and local income, single business and
      franchise tax purposes, the Notes will qualify as indebtedness. The Issuer,
      the
      Indenture Trustee and the Securities Administrator (in accordance with Section
      6.06 hereof), by entering into this Indenture, and each Noteholder, by its
      acceptance of its Note (and each Beneficial Owner by its acceptance of an
      interest in the applicable Book-Entry Note), agree to treat the Notes for
      federal, state and local income, single business and franchise tax purposes
      as
      indebtedness.

     

    Section
      4.10.  Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall cease to be of further effect with respect to the Notes except
      as to (i) rights of registration of transfer and exchange, (ii) substitution
      of
      mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
      receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
      3.04, 3.06, 3.09, 3.17, 3.19 and 3.20, (v) the rights, obligations and
      immunities of the Indenture Trustee and the Securities Administrator hereunder
      (including the rights of the Indenture Trustee and the Securities Administrator
      under Section 6.07 and the obligations of the Indenture Trustee and the
      Securities Administrator under Section 4.11) and (vi) the rights of Noteholders
      as beneficiaries hereof with respect to the property so deposited with the
      Indenture Trustee payable to all or any of them, and the Indenture Trustee,
      on
      demand of and at the expense of the Issuer, shall execute proper instruments
      acknowledging satisfaction and discharge of this Indenture with respect to
      the
      Notes and shall release and deliver the Collateral to or upon the order of
      the
      Issuer, when

     

    (A) either

     

    (1) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 4.03 hereof and (ii) Notes for whose payment money has theretofore
      been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in Section
      3.03)
      have been delivered to the Securities Administrator for cancellation;
      or

     

    (2) all
      Notes
      not theretofore delivered to the Securities Administrator for cancellation
      (a)
      have become due and payable, (b) will become due and payable at the Final Stated
      Maturity Date within one year, or (c) have been called for early redemption
      pursuant to Section 8.07 hereof, and the Issuer, in the case of (a) or (b)
      above, has irrevocably deposited or caused to be irrevocably deposited with
      the
      Securities Administrator cash or direct obligations of or obligations guaranteed
      by the United States of America (which will mature prior to the date such
      amounts are payable), in trust for such purpose, in an amount sufficient to
      pay
      and discharge the entire indebtedness on such Notes then outstanding not
      theretofore delivered to the Securities Administrator for cancellation when
      due
      on the Final Stated Maturity Date or other final Payment Date, or, in the case
      of (c) above, the Issuer shall have complied with all requirements of Section
      8.07 hereof,

     

    (B) the
      Issuer has paid or caused to be paid all other sums payable hereunder;
      and

     

    (C) the
      Issuer has delivered to the Indenture Trustee and the Securities Administrator
      an Officer’s Certificate and an Opinion of Counsel, each meeting the applicable
      requirements of Section 10.01 hereof, each stating that all conditions precedent
      herein provided for relating to the satisfaction and discharge of this Indenture
      have been complied with and, if the Opinion of Counsel relates to a deposit
      made
      in connection with Section 4.10(A)(2)(b) above, such opinion shall further
      be to
      the effect that such deposit will constitute an “in-substance defeasance” within
      the meaning of Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance
      therewith, the Issuer will be the owner of the assets deposited in trust for
      federal income tax purposes.

     

    Section
      4.11.  Application
      of Trust Money.
      All
      monies deposited with the Securities Administrator pursuant to Section 4.10
      hereof shall be held in trust and applied by it, in accordance with the
      provisions of the Notes and this Indenture, to the payment, either directly
      or
      through any Paying Agent or the Issuer, Certificate Paying Agent as designee
      of
      the Issuer, as the Securities Administrator may determine, to the Holders of
      Notes or Certificates, of all sums due and to become due thereon for principal
      and interest or otherwise; but such monies need not be segregated from other
      funds except to the extent required herein or required by law.

     

    Section
      4.12.  Derivative
      Contracts for Benefit of the Certificates.
      At any
      time on or after the Closing Date, the Issuer shall have the right to convey
      to
      the Trust, solely for the benefit of the Holder of the Certificates, a
      derivative contract or comparable instrument. Any such instrument shall
      constitute a fully prepaid agreement. All collections, proceeds and other
      amounts in respect of such an instrument shall be distributed to the
      Certificates on the Payment Date following receipt thereof by the Securities
      Administrator.

     

    Section
      4.13.  Repayment
      of Monies Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all monies then held by any Person other than the Securities
      Administrator under the provisions of this Indenture with respect to such Notes
      shall, upon demand of the Issuer, be paid to the Securities Administrator to
      be
      held and applied according to Section 3.05 and thereupon such Person shall
      be
      released from all further liability with respect to such monies.

     

    Section
      4.14.  Temporary
      Notes.
      Pending
      the preparation of any Definitive Notes, the Issuer may execute and upon its
      written direction, the Securities Administrator may authenticate and make
      available for delivery, temporary Notes that are printed, lithographed,
      typewritten, photocopied or otherwise produced, in any denomination,
      substantially of the tenor of the Definitive Notes in lieu of which they are
      issued and with such appropriate insertions, omissions, substitutions and other
      variations as the officers executing such Notes may determine, as evidenced
      by
      their execution of such Notes.

     

    If
      temporary Notes are issued, the Issuer will cause Definitive Notes to be
      prepared without unreasonable delay. After the preparation of the Definitive
      Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
      surrender of the temporary Notes at the office of the Securities Administrator
      located at the office designated for such purposes, without charge to the
      Holder. Upon surrender for cancellation of any one or more temporary Notes,
      the
      Issuer shall execute and the Securities Administrator shall authenticate and
      make available for delivery, in exchange therefor, Definitive Notes of
      authorized denominations and of like tenor, class and aggregate principal
      amount. Until so exchanged, such temporary Notes shall in all respects be
      entitled to the same benefits under this Indenture as Definitive
      Notes.

     

    Section
      4.15.  Representation
      Regarding ERISA.
      By
      acquiring an Offered Note or interest therein, each Holder of such Note or
      Beneficial Owner of any such interest will be deemed to represent that either
      (1) it is not acquiring the Note with Plan Assets or (2) (A) the acquisition,
      holding and transfer of such Note will not give rise to a non-exempt prohibited
      transaction under Section 406 of ERISA or Section 4975 of the Code and (B)
      the
      Notes are rated investment grade or better and such person believes that the
      Notes are properly treated as indebtedness without substantial equity features
      for purposes of the Department of Labor (“DOL”) regulation 29 C.F.R. §
2510.3-101, and agrees to so treat the Notes. Alternatively, regardless of
      the
      rating of the Notes, such person may provide the Securities Administrator with
      an Opinion of Counsel, which Opinion of Counsel will not be at the expense
      of
      the Trust, the Issuer, the Seller, the Depositor, the Indenture Trustee, the
      Securities Administrator, or the Master Servicer which opines that the
      acquisition, holding and transfer of such Note or interest therein is
      permissible under applicable law, will not constitute or result in a non-exempt
      prohibited transaction under ERISA or Section 4975 of the Code and will not
      subject the Trust, the Issuer, the Seller, the Depositor, the Indenture Trustee,
      the Securities Administrator or the Master Servicer to any obligation in
      addition to those undertaken in the Indenture.

     

    
      	Section
              4.16.  	
              Transfer
                Restrictions for Class N Notes.

            

    

     

    (a)  No
      transfer, sale, pledge or other disposition of any Class N Note or interest
      therein shall be made unless that transfer, sale, pledge or other disposition
      is
      exempt from the registration and/or qualification requirements of the 1933
      Act
      and any applicable state securities laws, or is otherwise made in accordance
      with the 1933 Act and such state securities laws. If a transfer of any Class
      N
      Note is to be made without registration under the 1933 Act (other than in
      connection with the initial issuance thereof or a transfer thereof by the
      Depositor or one of its Affiliates), then the Note Registrar shall refuse to
      register such transfer unless it receives (and upon receipt, may conclusively
      rely upon) a certificate from the Noteholder desiring to effect such transfer
      substantially in the form attached as Exhibit F-1 hereto and a certificate
      from
      such Noteholder’s prospective transferee substantially in the form attached as
      Exhibit F-2 hereto (which in the case of the Book-Entry Notes, the Noteholder
      and the Noteholder’s prospective transferee will be deemed to have represented
      such certification). None of the Issuer, the Depositor, the Indenture Trustee,
      the Securities Administrator or the Note Registrar is obligated to register
      or
      qualify any Class N Notes under the Securities Act or any other securities
      law
      or to take any action not otherwise required under this Indenture to permit
      the
      transfer of any Class N Note or interest therein without registration or
      qualification. Any Noteholder desiring to effect a transfer of Class N Notes
      or
      interests therein shall, and does hereby agree to, indemnify the Issuer, the
      Depositor, the Owner Trustee, the Indenture Trustee, the Securities
      Administrator and the Note Registrar 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.

     

    (b)  No
      Class
      N Note may be sold or transferred to a Person unless such Person certifies
      substantially in the form of Exhibit F-2 hereto (which in the case of the
      Book-Entry Notes, such Person will be deemed to have represented such
      certification), which certification the Securities Administrator may rely upon
      without further inquiry or investigation, to the following effect:

     

    (i)  Such
      Person is neither: (1) an employee benefit plan or other retirement arrangement,
      including individual retirement accounts and annuities, Keogh plans and
      collective investment funds and separate accounts in which such plans, accounts
      or arrangements are invested, including, without limitation, insurance company
      general accounts, that is subject to ERISA or Section 4975 of the Code (each,
      a
“Plan”), nor (2) any Person who is directly or indirectly purchasing such Note
      or interest therein on behalf of, as named fiduciary of, as trustee of, or
      with
“plan assets” (as defined under the DOL Regulation at 29 C.F.R. Section
      2510.3-101) of a Plan; or

     

    (ii)  (1)
      The
      acquisition, holding and transfer of the Class N Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (2) the Class N Note is rated investment grade or better and the
      Transferee believes that the Class N Note is properly treated as indebtedness
      without substantial equity features for purposes of the DOL Regulations, and
      agrees to so treat the Class N Note; or

     

    (iii)  Such
      Person has provided the Securities Administrator and the Owner Trustee with
      an
      Opinion of Counsel, which Opinion of Counsel will not be at the expense of
      the
      Issuer, the Depositor, the Seller, any Underwriter, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Servicer, the Master
      Servicer or any successor servicer which opines that the purchase, holding
      and
      transfer of such Class N Note or interest therein is permissible under
      applicable law, will not constitute or result in a non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Servicer, the Master
      Servicer or any successor servicer to any obligation in addition to those
      undertaken in the Indenture.

     

    Notwithstanding
      the foregoing, a certification will not be required in connection with the
      initial transfer of any such Note by the Depositor to an Affiliate of the
      Depositor (in which case, the Depositor or any Affiliate thereof shall be deemed
      to have represented that such Affiliate is not a Plan or any Person investing
      “plan assets” of any Plan) and the Note Registrar shall be entitled to
      conclusively rely upon a representation (which, upon the request of the Note
      Registrar, shall be a written representation) from the Depositor of the status
      of such transferee as an Affiliate of the Depositor.

     

    (c)  No
      Note
      sold in an offshore transaction in reliance on Regulation S, may be sold or
      transferred to a Person unless such Person certifies substantially in the form
      of Exhibit F-2, G-1 or G-2 hereto (which in the case of the Book-Entry Notes,
      such Person will be deemed to have represented such certification), which
      certification the Securities Administrator may rely upon without further inquiry
      or investigation, to the following effect:

     

    (i)  Such
      Person is not a U.S. person within the meaning of Regulation S and was, at
      the
      time the buy order was originated, outside the United States;

     

    (ii)  Such
      Person understands that such Class N Notes have not been registered under the
      Securities Act, and that (x) until the expiration of the 40-day distribution
      compliance period (within the meaning of Regulation S), no offer, sale, pledge
      or other transfer of such Notes or any interest therein shall be made in the
      United States or to or for the account or benefit of a U.S. person (each as
      defined in Regulation S), (y) if in the future it decides to offer, resell,
      pledge or otherwise transfer such Class N Notes, such Class N Notes may be
      offered, resold, pledged or otherwise transferred only (A) to a person which
      the
      seller reasonably believes is a qualified institutional buyer that is purchasing
      such Class N Notes for its own account or for the account of a qualified
      institutional buyer to which notice is given that the transfer is being made
      in
      reliance on Rule 144A or (B) in an offshore transaction (as defined in
      Regulation S) in compliance with the provisions of Regulation S, in each case
      in
      compliance with the requirements of this Indenture; and it will notify such
      transferee of the transfer restrictions specified in this Section 4.16;
      and

     

    (iii)  Either
      (A) such Person is neither (i) an employee benefit plan or other retirement
      arrangement, including individual retirement accounts and annuities, Keogh
      plans
      and collective investment funds and separate accounts in which such plans,
      accounts or arrangements are invested, including, without limitation, insurance
      company general accounts, that is subject to ERISA or Section 4975 of the Code
      (each, a “Plan”), nor (ii) any Person who is directly or indirectly purchasing
      such Note or interest therein on behalf of, as named fiduciary of, as trustee
      of, or with “plan assets” (as defined under the DOL Regulation at 29 C.F.R.
      Section 2510.3-101) of a Plan; (B) (1) the acquisition, holding and transfer
      of
      such Class N Note will not give rise to a nonexempt prohibited transaction
      under
      Section 406 of ERISA or Section 4975 of the Code and (2) such Class N Note
      is
      rated investment grade or better and such person believes that such Class N
      Note
      is properly treated as indebtedness without substantial equity features for
      purposes of the DOL Regulations, and agrees to so treat such Class N Note or
      (C)
      such person has provided the Securities Administrator and the Owner Trustee
      with
      an Opinion of Counsel, which Opinion of Counsel will not be at the expense
      of
      the Issuer, the Depositor, the Seller, any Underwriter, the Owner Trustee,
      the
      Indenture Trustee, the Securities Administrator, the Servicer, the Master
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of such Class N Note or interest therein is permissible under
      applicable law, will not constitute or result in a non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Issuer, the Depositor, the Seller, any Underwriter, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Servicer, the Master
      Servicer or any successor servicer to any obligation in addition to those
      undertaken in the Indenture.

     

    Notwithstanding
      the foregoing, a certification will not be required in connection with the
      initial transfer of any such Note by the Depositor to an Affiliate of the
      Depositor (in which case, the Depositor or any Affiliate thereof shall be deemed
      to have represented that such Affiliate is not a Plan or any Person investing
      “plan assets” of any Plan) and the Note Registrar shall be entitled to
      conclusively rely upon a representation (which, upon the request of the Note
      Registrar, shall be a written representation) from the Depositor of the status
      of such transferee as an Affiliate of the Depositor.

     

    (d)  If
      a
      Person is acquiring any Class N Note or interest therein as a fiduciary or
      agent
      for one or more accounts, such Person shall be required to deliver to the Note
      Registrar a certification (which in the case of the Book-Entry Notes, the
      prospective transferee will be deemed to have represented such certification)
      to
      the effect that it has (i) sole investment discretion with respect to each
      such
      account and (ii) full power to make the foregoing acknowledgments,
      representations, warranties, certifications and agreements with respect to
      each
      such account as set forth in subsections (b), (c) and (d) of this Section
      4.16.

     

    (e)  Notwithstanding
      any provision to the contrary herein, so long as a Global Security representing
      the Notes remains outstanding and is held by or on behalf of the Depository,
      transfers of a Global Security representing the Notes, in whole or in part,
      shall only be made in accordance with this Section 4.16.

     

    (i)  Subject
      to clauses (ii) and (iii) of this Section 4.16(e), transfers of a Global
      Security representing the Class N Notes shall be limited to transfers of such
      Global Security in whole, but not in part, to nominees of the Depository or
      to a
      successor of the Depository or such successor’s nominee.

     

    (ii)  Restricted
      Global Security to Regulation S Global Security.
      If a
      holder of a beneficial interest in a Restricted Global Security deposited with
      or on behalf of the Depository wishes at any time to exchange its interest
      in
      such Restricted Global Security for an interest in a Regulation S Global
      Security, or to transfer its interest in such Restricted Global Security to
      a
      Person who wishes to take delivery thereof in the form of an interest in a
      Regulation S Global Security, such holder, provided such holder is not a U.S.
      Person, may, subject to the rules and procedures of the Depository, exchange
      or
      cause the exchange of such interest for an equivalent beneficial interest in
      the
      Regulation S Global Security. Upon receipt by the Securities Administrator,
      as
      Note Registrar, of (A) instructions from the Depository directing the Securities
      Administrator, as Note Registrar, to cause to be credited a beneficial interest
      in a Regulation S Global Security in an amount equal to the beneficial interest
      in such Restricted Global Security to be exchanged but not less than the minimum
      denomination applicable to such holder’s Notes held through a Regulation S
      Global Security, (B) a written order given in accordance with the Depository’s
      procedures containing information regarding the participant account of the
      Depository and, in the case of a transfer pursuant to and in accordance with
      Regulation S, the Euroclear or Clearstream account to be credited with such
      increase and (C) a certificate in the form of Exhibit G-1 hereto given by the
      holder of such beneficial interest stating that the exchange or transfer of
      such
      interest has been made in compliance with the transfer restrictions applicable
      to the Global Securities, including that the holder is not a U.S. Person and
      pursuant to and in accordance with Regulation S, the Securities Administrator,
      as Note Registrar, shall reduce the principal amount of the Restricted Global
      Security and increase the principal amount of the Regulation S Global Security
      by the aggregate principal amount of the beneficial interest in the Restricted
      Global Security to be exchanged, and shall instruct Euroclear or Clearstream,
      as
      applicable, concurrently with such reduction, to credit or cause to be credited
      to the account of the Person specified in such instructions a beneficial
      interest in the Regulation S Global Security equal to the reduction in the
      principal amount of the Restricted Global Security.

     

    (iii)  Regulation
      S Global Security to Restricted Global Security.
      If a
      holder of a beneficial interest in a Regulation S Global Security deposited
      with
      or on behalf of the Depository wishes at any time to transfer its interest
      in
      such Regulation S Global Security to a Person who wishes to take delivery
      thereof in the form of an interest in a Restricted Global Security, such holder
      may, subject to the rules and procedures of the Depository, exchange or cause
      the exchange of such interest for an equivalent beneficial interest in a
      Restricted Global Security. Upon receipt by the Securities Administrator, as
      Note Registrar, of (A) instructions from the Depository directing the Securities
      Administrator, as Note Registrar, to cause to be credited a beneficial interest
      in a Restricted Global Security in an amount equal to the beneficial interest
      in
      such Regulation S Global Security to be exchanged but not less than the minimum
      denomination applicable to such Holder’s Class N Notes held through a Restricted
      Global Security, to be exchanged, such instructions to contain information
      regarding the participant account with the Depository to be credited with such
      increase, and (B) a certificate in the form of Exhibit G-2 hereto given by
      the
      holder of such beneficial interest and stating, among other things, that the
      Person transferring such interest in such Regulation S Global Security
      reasonably believes that the Person acquiring such interest in a Restricted
      Global Security is a qualified institutional buyer within the meaning of Rule
      144A, is obtaining such beneficial interest in a transaction meeting the
      requirements of Rule 144A and in accordance with any applicable securities
      laws
      of any State of the United States or any other jurisdiction, then the Securities
      Administrator, as Note Registrar, will reduce the principal amount of the
      Regulation S Global Security and increase the principal amount of the Restricted
      Global Security by the aggregate principal amount of the beneficial interest
      in
      the Regulation S Global Security to be transferred and the Securities
      Administrator, as Note Registrar, shall instruct the Depository, concurrently
      with such reduction, to credit or cause to be credited to the account of the
      Person specified in such instructions a beneficial interest in the Restricted
      Global Security equal to the reduction in the principal amount of the Regulation
      S Global Security.

     

    (iv)  Other
      Exchanges.
      In the
      event that a Global Security is exchanged for Class N Notes in definitive
      registered form without interest coupons, such Class N Notes may be exchanged
      for one another only in accordance with such procedures as are substantially
      consistent with the provisions above (including certification requirements
      intended to insure that such transfers comply with Rule 144A or are to non-U.S.
      Persons, or otherwise comply with Regulation S under the Securities Act, as
      the
      case may be, and as may be from time to time adopted by the Issuer and the
      Securities Administrator.

     

    (v)  Restrictions
      on U.S. Transfers.
      Transfers of interests in the Regulation S Global Security to U.S. persons
      (as
      defined in Regulation S) shall be limited to transfers made pursuant to the
      provisions of Section 4.16(e)(3). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      V

     

    DEFAULT
      AND REMEDIES

     

    Section
      5.01.  Events
      of Default.
      The
      Issuer shall deliver to the Indenture Trustee and the Securities Administrator,
      written notice in the form of an Officer’s Certificate, within five days after
      learning of the occurrence of any event which with the giving of notice and
      the
      lapse of time would become an Event of Default under clause (iii), (iv) or
      (v)
      of the definition of “Event of Default,” its status and what action the Issuer
      is taking or proposes to take with respect thereto. Neither the Indenture
      Trustee nor the Securities Administrator shall be deemed to have knowledge
      of
      any Event of Default unless a Responsible Officer has actual knowledge thereof
      or unless written notice of such Event of Default is received by a Responsible
      Officer and such notice references the Notes, the Trust or this
      Indenture.

     

    Section
      5.02.  Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default should occur and be continuing, then and in every such case
      the
      Indenture Trustee shall, at the written direction of the Holders of Notes
      representing not less than a majority of the aggregate Note Balance of the
      Notes, declare the Notes to be immediately due and payable, by a notice in
      writing to the Issuer (and to the Indenture Trustee and the Securities
      Administrator if such notice is given by the Noteholders), and upon any such
      declaration the unpaid aggregate Note Balance, together with accrued and unpaid
      interest thereon through the date of acceleration shall become immediately
      due
      and payable.

     

    At
      any
      time after such declaration of acceleration of maturity with respect to an
      Event
      of Default has been made and before a judgment or decree for payment of the
      money due has been obtained by the Securities Administrator as hereinafter
      in
      this Article V provided, Holders of the Notes representing not less than a
      majority of the aggregate Note Balance of the Notes, by written notice to the
      Issuer, the Indenture Trustee and the Securities Administrator, may waive the
      related Event of Default and rescind and annul such declaration and its
      consequences if

     

    (i)  the
      Issuer has paid or deposited with the Securities Administrator a sum sufficient
      to pay (a) all payments of principal of and interest on the Notes and all other
      amounts that would then be due hereunder or upon the Notes if the Event of
      Default giving rise to such acceleration had not occurred; and (b) all sums
      paid
      or advanced by the Securities Administrator hereunder and the reasonable
      compensation, expenses, disbursements and advances of the Indenture Trustee
      and
      the Securities Administrator and its respective agents and counsel;
      and

     

    (ii)  all
      Events of Default, other than the nonpayment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.12.

     

    No
      such
      rescission shall affect any subsequent default or impair any right consequent
      thereto.

     

    
      	Section
              5.03.  	
              Collection
                of Indebtedness and Suits for Enforcement by Indenture
                Trustee.

            

    

     

    (a)  The
      Issuer covenants that if (i) default is made in the payment of any interest
      on
      any Note when the same becomes due and payable, and such default continues
      for a
      period of five days, or (ii) default is made in the payment of the principal
      of
      or any installment of the principal of any Note when the same becomes due and
      payable, the Issuer shall, upon demand of the Securities Administrator, at
      the
      direction of the Holders of a majority of the aggregate Note Balance of the
      Notes, pay to the Securities Administrator, for the benefit of the Holders
      of
      Notes, the whole amount then due and payable on the Notes for principal and
      interest, with interest at the applicable Note Rate upon the overdue principal,
      and in addition thereto such further amount as shall be sufficient to cover
      the
      costs and expenses of collection, including the reasonable compensation,
      expenses, disbursements and advances of the Indenture Trustee and the Securities
      Administrator and its respective agents and counsel.

     

    (b)  In
      case
      the Issuer shall fail forthwith to pay such amounts upon such demand, the
      Indenture Trustee, in its own name and as trustee of an express trust, subject
      to the provisions of Section 10.16 hereof may institute a Proceeding for the
      collection of the sums so due and unpaid, and may prosecute such Proceeding
      to
      judgment or final decree, and may enforce the same against the Issuer or other
      obligor upon the Notes and collect in the manner provided by law out of the
      property of the Issuer or other obligor the Notes, wherever situated, the monies
      adjudged or decreed to be payable.

     

    (c)  If
      an
      Event of Default occurs and is continuing, the Indenture Trustee, subject to
      the
      provisions of Section 10.16 hereof may, as more particularly provided in Section
      5.04 hereof, in its discretion, proceed to protect and enforce its rights and
      the rights of the Noteholders, by such appropriate Proceedings, as directed
      in
      writing by Holders of a majority of the aggregate Note Balance of the Notes,
      to
      protect and enforce any such rights, whether for the specific enforcement of
      any
      covenant or agreement in this Indenture or in aid of the exercise of any power
      granted herein, or to enforce any other proper remedy or legal or equitable
      right vested in the Indenture Trustee by this Indenture or by law.

     

    (d)  In
      case
      there shall be pending, relative to the Issuer or any other obligor upon the
      Notes or any Person having or claiming an ownership interest in the Trust,
      Proceedings under Title 11 of the United States Code or any other applicable
      federal or state bankruptcy, insolvency or other similar law, or in case a
      receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
      sequestrator or similar official shall have been appointed for or taken
      possession of the Issuer or its property or such other obligor or Person, or
      in
      case of any other comparable judicial Proceedings relative to the Issuer or
      other obligor upon the Notes, or to the creditors or property of the Issuer
      or
      such other obligor, the Indenture Trustee, as directed in writing by Holders
      of
      a majority of the aggregate Note Balance of the Notes, irrespective of whether
      the principal of any Notes shall then be due and payable as therein expressed
      or
      by declaration or otherwise and irrespective of whether the Indenture Trustee
      shall have made any demand pursuant to the provisions of this Section, shall
      be
      entitled and empowered, by intervention in such Proceedings or
      otherwise:

     

    (i)  to
      file
      and prove a claim or claims for the whole amount of principal and interest
      owing
      and unpaid in respect of the Notes and to file such other papers or documents
      as
      may be necessary or advisable in order to have the claims of the Indenture
      Trustee (including any claim for reasonable compensation to the Indenture
      Trustee, the Securities Administrator and each predecessor Indenture Trustee
      and
      Securities Administrator, and their respective agents, attorneys and counsel,
      and for reimbursement of all expenses and liabilities incurred, and all advances
      made, by the Indenture Trustee and Securities Administrator and each predecessor
      Indenture Trustee and Securities Administrator, except as a result of negligence
      or bad faith) and of the Noteholders allowed in such Proceedings;

     

    (ii)  unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      of Notes in any election of a trustee, a standby trustee or Person performing
      similar functions in any such Proceedings;

     

    (iii)  to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute all amounts received with respect to the claims
      of
      the Noteholders and of the Indenture Trustee on their behalf, and

     

    (iv)  to
      file
      such proofs of claim and other papers or documents as may be necessary or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      of
      Notes allowed in any judicial proceedings relative to the Issuer, its creditors
      and its property; and any trustee, receiver, liquidator, custodian or other
      similar official in any such Proceeding is hereby authorized by each of such
      Noteholders to make payments to the Securities Administrator and, in the event
      that the Indenture Trustee shall consent to the making of payments directly
      to
      such Noteholders, to pay to the Indenture Trustee and the Securities
      Administrator such amounts as shall be sufficient to cover reasonable
      compensation to the Indenture Trustee and the Securities Administrator, each
      predecessor Indenture Trustee and Securities Administrator and their respective
      agents, attorneys and counsel, and all other expenses and liabilities incurred,
      and all advances made, by the Indenture Trustee and the Securities Administrator
      and each predecessor Indenture Trustee and Securities
      Administrator.

     

    (e)  Nothing
      herein contained shall be deemed to authorize the Indenture Trustee or the
      Securities Administrator to authorize or consent to or vote for or accept or
      adopt on behalf of any Noteholder any plan of reorganization, arrangement,
      adjustment or composition affecting the Notes or the rights of any Holder
      thereof or to authorize the Indenture Trustee or the Securities Administrator
      to
      vote in respect of the claim of any Noteholder in any such proceeding except,
      as
      aforesaid, to vote for the election of a trustee in bankruptcy or similar
      Person.

     

    (f)  All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Notes, may be enforced by the Indenture Trustee without the possession
      of
      any of the Notes or the production thereof in any trial or other Proceedings
      relative thereto, and any such action or proceedings instituted by the Indenture
      Trustee shall be brought in its own name as trustee of an express trust, and
      any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee and the Securities Administrator, each
      predecessor Indenture Trustee and Securities Administrator and their respective
      agents and attorneys, shall be for the ratable benefit of the Holders of the
      Notes, subject to Section 5.05 hereof.

     

    (g)  In
      any
      Proceedings brought by the Indenture Trustee (and also any Proceedings involving
      the interpretation of any provision of this Indenture to which the Indenture
      Trustee shall be a party), the Indenture Trustee shall be held to represent
      all
      the Holders of the Notes, and it shall not be necessary to make any Noteholder
      a
      party to any such Proceedings.

     

    
      	Section
              5.04.  	
              Remedies;
                Priorities.

            

    

     

    (a)  If
      an
      Event of Default shall have occurred and be continuing and if an acceleration
      has been declared and not rescinded pursuant to Section 5.02 hereof, the
      Indenture Trustee subject to the provisions of Section 10.16 hereof may, and
      shall, at the written direction of the Holders of a majority of the aggregate
      Note Balance of the Notes, do one or more of the following (subject to Section
      5.05 hereof):

     

    (i)  institute
      Proceedings in its own name and as trustee of an express trust for the
      collection of all amounts then payable on the Notes or under this Indenture
      with
      respect thereto, whether by declaration or otherwise enforce any judgment
      obtained, and collect from the Issuer and any other obligor upon such Notes
      monies adjudged due;

     

    (ii)  institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Trust;

     

    (iii)  exercise
      any remedies of a secured party under the UCC and take any other appropriate
      action to protect and enforce the rights and remedies of the Indenture Trustee
      and the Holders of the Notes; and

     

    (iv)  sell
      the
      Collateral or any portion thereof or rights or interest therein, at one or
      more
      public or private sales called and conducted in any manner permitted by law;
      provided,
      however,
      that
      the Indenture Trustee may not sell or otherwise liquidate the Trust following
      an
      Event of Default, unless (A) the Indenture Trustee obtains the consent of the
      Holders of 100% of the aggregate Note Balance of the Notes, (B) the proceeds
      of
      such sale or liquidation distributable to the Holders of the Notes are
      sufficient to discharge in full all amounts then due and unpaid upon such Notes
      for principal and interest or (C) the Indenture Trustee determines that the
      Mortgage Loans will not continue to provide sufficient funds for the payment
      of
      principal of and interest on the applicable Notes as they would have become
      due
      if the Notes had not been declared due and payable, and the Indenture Trustee
      obtains the consent of the Holders of a majority of the aggregate Note Balance
      of the Notes. In determining such sufficiency or insufficiency with respect
      to
      clause (B) and (C), the Indenture Trustee may, but need not, obtain and
      conclusively rely upon written advice or an opinion (obtained at the expense
      of
      the Trust) of an Independent investment banking or accounting firm of national
      reputation as to the feasibility of such proposed action and as to the
      sufficiency of the Trust for such purpose. Notwithstanding the foregoing, so
      long as a Servicer Event of Default has not occurred, any sale of the Trust
      shall be made subject to the continued servicing of the Mortgage Loans by the
      Servicer as provided in the Servicing Agreement.

     

    (b)  If
      the
      Indenture Trustee collects any money or property pursuant to this Article V,
      the
      Indenture Trustee shall forward such funds to the Securities Administrator
      and
      the Securities Administrator shall pay out the money or property in the
      following order:

     

    (i)  to
      the
      Indenture Trustee and the Securities Administrator for amounts due under Section
      6.07 hereof and to the Owner Trustee for amounts due pursuant to Article VII
      of
      the Trust Agreement;

     

    (ii)  to
      the
      Noteholders in the order of priority set forth in Section 3.05(b);
      and

     

    (iii)  to
      the
      payment of the remainder, if any to the Certificate Paying Agent on behalf
      of
      the Issuer or to any other person legally entitled thereto.

     

    The
      Securities Administrator may fix a record date and Payment Date for any payment
      to Noteholders pursuant to this Section 5.04. At least 15 days before such
      record date, the Securities Administrator shall mail to each Noteholder a notice
      that states the record date, the Payment Date and the amount to be
      paid.

     

    Section
      5.05.  Optional
      Preservation of the Collateral.
      If the
      Notes have been declared to be due and payable under Section 5.02 following
      an
      Event of Default and such declaration and its consequences have not been
      rescinded and annulled, the Indenture Trustee may elect to take and maintain
      possession of the Collateral. It is the desire of the parties hereto and the
      Noteholders that there be at all times sufficient funds for the payment of
      principal of and interest on the Notes and other obligations of the Issuer,
      the
      Indenture Trustee and the Securities Administrator shall take such desire into
      account when determining whether or not to take and maintain possession of
      the
      Trust. In determining whether and how to take and maintain possession of the
      Trust, the Indenture Trustee may, but need not, obtain and rely upon the written
      advice or an opinion (obtained at the expense of the Trust) of an Independent
      investment banking or accounting firm of national reputation as to the
      feasibility of such proposed action and as to the sufficiency of the Trust
      for
      such purpose.

     

    Section
      5.06.  Limitation
      of Suits.
      No
      Holder of any Note shall have any right to institute any Proceeding, judicial
      or
      otherwise, with respect to this Indenture, or for the appointment of a receiver
      or trustee, or for any other remedy hereunder, unless and subject to the
      provisions of Section 10.16 hereof

     

    (i)  such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Event of Default;

     

    (ii)  the
      Holders of not less than 25% of the aggregate Note Balance of the Notes have
      made a written request to the Indenture Trustee to institute such Proceeding
      in
      respect of such Event of Default in its own name as Indenture Trustee
      hereunder;

     

    (iii)  such
      Holder or Holders have offered to the Indenture Trustee indemnity reasonably
      satisfactory to it against the costs, expenses and liabilities to be incurred
      in
      complying with such request;

     

    (iv)  the
      Indenture Trustee for 60 days after its receipt of such notice of request and
      offer of indemnity has failed to institute such Proceedings; and

     

    (v)  no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the Note
      Balances of the Notes.

     

    It
      is
      understood and intended that no one or more Holders of Notes shall have any
      right in any manner whatever by virtue of, or by availing of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Notes or to obtain or to seek to obtain priority or preference over any
      other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided.

     

    
      	Section
              5.07.  	
              Unconditional
                Rights of Noteholders To Receive Principal and Interest.

            

    

     

    Notwithstanding
      any other provisions in this Indenture, the Holder of any Note shall have the
      right, which is absolute and unconditional, to receive payment of the principal
      of and interest, if any, on such Note on or after the respective due dates
      thereof expressed in such Note or in this Indenture and to institute suit for
      the enforcement of any such payment, and such right shall not be impaired
      without the consent of such Holder.

     

    Section
      5.08.  Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder has instituted any Proceeding to enforce
      any
      right or remedy under this Indenture and such Proceeding has been discontinued
      or abandoned for any reason or has been determined adversely to the Indenture
      Trustee or to such Noteholder, then and in every such case the Issuer, the
      Indenture Trustee and the Noteholders shall, subject to any determination in
      such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture
      Trustee and the Noteholders shall continue as though no such Proceeding had
      been
      instituted.

     

    Section
      5.09.  Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Indenture Trustee,
      the
      Securities Administrator or to the Noteholders is intended to be exclusive
      of
      any other right or remedy, and every right and remedy shall, to the extent
      permitted by law, be cumulative and in addition to every other right and remedy
      given hereunder or now or hereafter existing at law or in equity or otherwise.
      The assertion or employment of any right or remedy hereunder, or otherwise,
      shall not prevent the concurrent assertion or employment of any other
      appropriate right or remedy.

     

    Section
      5.10.  Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee or any Holder of any Note to exercise
      any right or remedy accruing upon any Event of Default shall impair any such
      right or remedy or constitute a waiver of any such Event of Default or an
      acquiescence therein. Every right and remedy given by this Article V or by
      law
      to the Indenture Trustee or to the Noteholders may be exercised from time to
      time, and as often as may be deemed expedient, by the Indenture Trustee or
      by
      the Noteholders, as the case may be.

     

    Section
      5.11.  Control
      By Noteholders.  The
      Holders of a majority of the aggregate Note Balance of Notes shall have the
      right to direct the time, method and place of conducting any Proceeding for
      any
      remedy available to the Indenture Trustee with respect to the Notes or
      exercising any trust or power conferred on the Indenture Trustee; provided
      that:

     

    (i)  such
      direction shall not be in conflict with any rule of law or with this
      Indenture;

     

    (ii)  any
      direction to the Indenture Trustee to sell or liquidate the Collateral shall
      be
      by Holders of Notes representing not less than 100% of the Note Balances of
      the
      Notes;

     

    (iii)  the
      Indenture Trustee has been provided with indemnity satisfactory to it;
      and

     

    (iv)  the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction of the Holders of Notes
      representing a majority of the Note Balances of the Notes.

     

    Notwithstanding
      the rights of Noteholders set forth in this Section 5.11 the Indenture Trustee
      need not take any action that it determines might involve it in
      liability.

     

    Section
      5.12.  Waiver
      of Past Defaults.  Prior
      to the declaration of the acceleration of the maturity of the Notes as provided
      in Section 5.02 hereof, the Holders of Notes representing not less than a
      majority of the aggregate Note Balance of the Notes may waive any past Event
      of
      Default and its consequences except an Event of Default (a) with respect to
      payment of principal of or interest on any of the Notes or (b) in respect of
      a
      covenant or provision hereof which cannot be modified or amended without the
      consent of the Holder of each Note. In the case of any such waiver, the Issuer,
      the Indenture Trustee, the Securities Administrator and the Holders of the
      Notes
      shall be restored to their former positions and rights hereunder, respectively,
      but no such waiver shall extend to any subsequent or other Event of Default
      or
      impair any right consequent thereto.

     

    Upon
      any
      such waiver, any Event of Default arising therefrom shall be deemed to have
      been
      cured and not to have occurred, for every purpose of this Indenture; but no
      such
      waiver shall extend to any subsequent or other Event of Default or impair any
      right consequent thereto.

     

    Section
      5.13.  Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of any Note and each Beneficial
      Owner of any interest therein by such Holder’s or Beneficial Owner’s acceptance
      thereof shall be deemed to have agreed, that any court may in its discretion
      require, in any suit for the enforcement of any right or remedy under this
      Indenture, or in any suit against the Indenture Trustee or the Securities
      Administrator for any action taken, suffered or omitted by it as Indenture
      Trustee or Securities Administrator, the filing by any party litigant in such
      suit of an undertaking to pay the costs of such suit, and that such court may
      in
      its discretion assess reasonable costs, including reasonable attorneys’ fees,
      against any party litigant in such suit, having due regard to the merits and
      good faith of the claims or defenses made by such party litigant; but the
      provisions of this Section 5.13 shall not apply to (a) any suit instituted
      by
      the Indenture Trustee or the Securities Administrator, (b) any suit instituted
      by any Noteholder, or group of Noteholders, in each case holding in the
      aggregate more than 10% of the Note Balances of the Notes or (c) any suit
      instituted by any Noteholder for the enforcement of the payment of principal
      of
      or interest on any Note on or after the respective due dates expressed in such
      Note and in this Indenture.

     

    Section
      5.14.  Waiver
      of Stay or Extension Laws.
      The
      Issuer covenants (to the extent that it may lawfully do so) that it will not
      at
      any time insist upon, or plead or in any manner whatsoever, claim or take the
      benefit or advantage of, any stay or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      shall not hinder, delay or impede the execution of any power herein granted
      to
      the Indenture Trustee or the Securities Administrator, but will suffer and
      permit the execution of every such power as though no such law had been
      enacted.

     

    
      	Section
              5.15.  	
              Sale
                of Trust.

            

    

     

    (a)  The
      power
      to effect any sale or other disposition (a “Sale”) of any portion of the Trust
      pursuant to Section 5.04 hereof is expressly subject to the provisions of
      Section 5.05 hereof and this Section 5.15. The power to effect any such Sale
      shall not be exhausted by any one or more Sales as to any portion of the Trust
      remaining unsold, but shall continue unimpaired until the entire Trust shall
      have been sold or all amounts payable on the Notes and under this Indenture
      shall have been paid. The Indenture Trustee may from time to time postpone
      any
      public Sale by public announcement made at the time and place of such Sale.
      The
      Indenture Trustee hereby expressly waives its right to any amount fixed by
      law
      as compensation for any Sale.

     

    (b)  The
      Indenture Trustee shall not in any private Sale sell the Trust, or any portion
      thereof, unless

     

    (i)  the
      Holders of all Notes consent to or direct the Indenture Trustee to make, such
      Sale, or

     

    (ii)  the
      proceeds of such Sale would be not less than the entire amount which would
      be
      payable to the Noteholders under the Notes, in full payment thereof in
      accordance with Section 5.02 hereof, on the Payment Date next succeeding the
      date of such Sale, or

     

    (iii)  the
      Indenture Trustee determines that the conditions for retention of the Collateral
      set forth in Section 5.05 hereof cannot be satisfied (in making any
      determination under this Section 5.15, the Indenture Trustee may conclusively
      rely upon written advice or an opinion of an Independent investment banking
      firm
      obtained and delivered as provided in Section 5.05 hereof), the Holders of
      Notes
      representing at least 100% of the Note Balances of the Notes consent to such
      Sale.

     

    The
      purchase by the Indenture Trustee of all or any portion of the Trust at a
      private Sale shall not be deemed a Sale or other disposition thereof for
      purposes of this Section 5.15(b).

     

    (c)  [Reserved].

     

    (d)  In
      connection with a Sale of all or any portion of the Trust,

     

    (i)  any
      Holder or Holders of Notes may bid for and purchase the property offered for
      sale, and upon compliance with the terms of sale may hold, retain and possess
      and dispose of such property, without further accountability, and may, in paying
      the purchase money therefor, deliver any Notes or claims for interest thereon
      in
      lieu of cash up to the amount which shall, upon distribution of the net proceeds
      of such sale, be payable thereon, and such Notes, in case the amounts so payable
      thereon shall be less than the amount due thereon, shall be returned to the
      Holders thereof after being appropriately stamped to show such partial
      payment;

     

    (ii)  the
      Indenture Trustee, may bid for and acquire the property offered for Sale in
      connection with any Sale thereof, and, subject to any requirements of, and
      to
      the extent permitted by, applicable law in connection therewith, may purchase
      all or any portion of the Trust in a private sale, and, in lieu of paying cash
      therefor, may make settlement for the purchase price by crediting the gross
      Sale
      price against the sum of (A) the amount which would be payable to the Holders
      of
      the Notes and Holders of Certificates on the Payment Date next succeeding the
      date of such Sale and (B) the expenses of the Sale and of any Proceedings in
      connection therewith which are reimbursable to it, without being required to
      produce the Notes in order to complete any such Sale or in order for the net
      Sale price to be credited against such Notes, and any property so acquired
      by
      the Indenture Trustee shall be held and dealt with by it in accordance with
      the
      provisions of this Indenture;

     

    (iii)  the
      Indenture Trustee shall execute and deliver an appropriate instrument of
      conveyance, prepared by the Issuer and satisfactory to the Indenture Trustee,
      transferring its interest in any portion of the Trust in connection with a
      Sale
      thereof;

     

    (iv)  the
      Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact
      of the Issuer to transfer and convey its interest in any portion of the Trust
      in
      connection with a Sale thereof, and to take all action necessary to effect
      such
      Sale; and

     

    (v)  no
      purchaser or transferee at such a Sale shall be bound to ascertain the Indenture
      Trustee’s authority, inquire into the satisfaction of any conditions precedent
      or see to the application of any monies.

     

    Section
      5.16.  Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee or the
      Noteholders shall be impaired by the recovery of any judgment by the Indenture
      Trustee against the Issuer or by the levy of any execution under such judgment
      upon any portion of the Trust or upon any of the assets of the Issuer. Any
      money
      or property collected by the Indenture Trustee shall be applied in accordance
      with Section 5.04(b) hereof.

     

    
      	Section
              5.17.  	
              Performance
                and Enforcement of Certain Obligations.

            

    

     

    (a)  Promptly
      following a request from the Indenture Trustee to do so, the Issuer in its
      capacity as holder of the Mortgage Loans, shall take all such lawful action
      as
      the Indenture Trustee may request to cause the Issuer to compel or secure the
      performance and observance by the Seller, the Servicer and the Master Servicer,
      as applicable, of each of their obligations to the Issuer under or in connection
      with the Mortgage Loan Sale and Contribution Agreement and the Servicing
      Agreement, and to exercise any and all rights, remedies, powers and privileges
      lawfully available to the Issuer under or in connection with the Mortgage Loan
      Sale and Contribution Agreement and the Servicing Agreement to the extent and
      in
      the manner directed by the Indenture Trustee, as pledgee of the Mortgage Loans,
      including the transmission of notices of default on the part of the Seller,
      the
      Servicer or the Master Servicer thereunder and the institution of legal or
      administrative actions or proceedings to compel or secure performance by the
      Seller, the Servicer or the Master Servicer of each of their obligations under
      the Mortgage Loan Sale and Contribution Agreement and the Servicing
      Agreement.

     

    (b)  The
      Indenture Trustee, as pledgee of the Mortgage Loans, may, and at the direction
      (which direction shall be in writing or by telephone (confirmed in writing
      promptly thereafter)) of the Holders of 66-2/3% of the Note Balances of the
      Notes, shall exercise all rights, remedies, powers, privileges and claims of
      the
      Issuer against the Originator, the Seller, the Servicer or the Master Servicer
      under or in connection with the Mortgage Loan Sale and Contribution Agreement
      and the Servicing Agreement, including the right or power to take any action
      to
      compel or secure performance or observance by the Originator, the Seller, the
      Servicer or the Master Servicer, as the case may be, of each of their
      obligations to the Issuer thereunder and to give any consent, request, notice,
      direction, approval, extension or waiver under the Mortgage Loan Sale and
      Contribution Agreement and the Servicing Agreement, as the case may be, and
      any
      right of the Issuer to take such action shall not be suspended.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    
      	Section
              6.01.  	
              Duties
                of Indenture Trustee and the Securities Administrator.

            

    

     

    (a)  If
      an
      Event of Default has occurred and is continuing, each of the Indenture Trustee
      and the Securities Administrator shall exercise the rights and powers vested
      in
      it by this Indenture 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 such person’s own affairs.

     

    (b)  Except
      during the continuance of an Event of Default:

     

    (i)  each
      of
      the Indenture Trustee and the Securities Administrator undertakes to perform
      such duties and only such duties as are specifically set forth in this Indenture
      and no implied covenants or obligations shall be read into this Indenture
      against the Indenture Trustee or the Securities Administrator; and

     

    (ii)  in
      the
      absence of bad faith on its part, each of the Indenture Trustee and the
      Securities Administrator may conclusively rely, as to the truth of the
      statements and the correctness of the opinions expressed therein, upon
      certificates or opinions furnished to the Indenture Trustee or the Securities
      Administrator and conforming to the requirements of this Indenture; however,
      each of the Indenture Trustee and the Securities Administrator shall examine
      the
      certificates and opinions to determine whether or not they conform to the
      requirements of this Indenture.

     

    (c)  Neither
      the Indenture Trustee nor the Securities Administrator may be relieved from
      liability for its own negligent action, its own negligent failure to act or
      its
      own willful misconduct, except that:

     

    (i)  this
      paragraph does not limit the effect of paragraph (b) of this Section
      6.01;

     

    (ii)  neither
      the Indenture Trustee nor the Securities Administrator shall be liable for
      any
      error of judgment made in good faith by a Responsible Officer unless it is
      proved that the Indenture Trustee or the Securities Administrator was negligent
      in ascertaining the pertinent facts; and

     

    (iii)  neither
      the Indenture Trustee nor the Securities Administrator shall be liable with
      respect to any action it takes or omits to take in good faith in accordance
      with
      a direction received by it from Noteholders or from the Issuer, which they
      are
      entitled to give under the Basic Documents.

     

    (d)  Neither
      the Indenture Trustee nor the Securities Administrator shall be liable for
      interest on any money received by it.

     

    (e)  Money
      held in trust by the Indenture Trustee or the Securities Administrator need
      not
      be segregated from other trust funds except to the extent required by law or
      the
      terms of this Indenture or the Trust Agreement.

     

    (f)  No
      provision of this Indenture shall require the Indenture Trustee or the
      Securities Administrator 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, if it shall have reasonable grounds
      to
      believe that repayment of such funds or indemnity satisfactory to it against
      such risk or liability is not reasonably assured to it.

     

    (g)  Every
      provision of this Indenture relating to the conduct or affecting the liability
      of or affording protection to the Indenture Trustee and the Securities
      Administrator shall be subject to the provisions of this Section and to the
      provisions of the TIA.

     

    (h)  The
      Indenture Trustee shall act in accordance with Section 6.03 of the Servicing
      Agreement and shall act as successor to the Master Servicer or appoint a
      successor Master Servicer in accordance with Section 6.04 of the Servicing
      Agreement.

     

    (i)  In
      order
      to comply with its duties under U.S.A. Patriot Act, the Securities Administrator
      shall obtain and verify certain information and documentation from the other
      parties hereto, including, but not limited to, such party’s name, address, and
      other identifying information.

     

    (j)  The
      Securities Administrator agrees to notify the Master Servicer in writing no
      later than 5:00 p.m. New York time on each Deposit Date of the aggregate dollar
      amount of the funds received by the Securities Administrator from the Servicer
      on such Deposit Date and any other information reasonably requested by the
      Master Servicer, so as to enable the Master Servicer to make the reconciliations
      and verifications required to be made by it pursuant to Section 4.01 of the
      Servicing Agreement.

     

    (k)  The
      Indenture Trustee shall, at the written direction of the Depositor, enforce
      all
      of its rights and exercise any remedies under the Interest Rate Swap Agreement.
      In the event the Interest Rate Swap Agreement is terminated as a result of
      the
      designation by either party thereto of an Early Termination Date (as defined
      therein), the Indenture Trustee shall, at the direction of the Depositor,
      appoint a replacement counterparty to enter into a replacement swap agreement.
      The Indenture Trustee shall have no responsibility with regard to the selection
      of a replacement swap provider or the negotiation of a replacement swap
      agreement. Any Swap Termination Payment received by the Securities Administrator
      on behalf of the Indenture Trustee shall be part of Available Funds and shall
      be
      used to make any upfront payment required under a replacement swap agreement
      and
      any upfront payment received from the counterparty to a replacement swap
      agreement shall be used to pay any Swap Termination Payment owed to the Swap
      Provider. If the Indenture Trustee is unable to appoint a successor swap
      provider within 30 days of the Early Termination Date, then the Securities
      Administrator (acting on behalf of the Issuer) will deposit any Swap Termination
      Payment received from the original Swap Provider into a separate, non-interest
      bearing reserve account and will, on each subsequent payment date, withdraw
      from
      the amount then remaining on deposit in such reserve account an amount equal
      to
      the Net Swap Payment, if any, that would have been paid to the Issuer by the
      original Swap Provider calculated in accordance with the terms of the original
      Interest Rate Swap Agreement, and distribute such amount in accordance with
      the
      terms of this Indenture.

     

    
      	Section
              6.02.  	
              Rights
                of Indenture Trustee and Securities Administrator.

            

    

     

    (a)  Each
      of
      the Indenture Trustee and the Securities Administrator may conclusively rely
      on,
      and shall be fully protected from acting or refraining from acting upon, any
      document believed by it to be genuine and to have been signed or presented
      by
      the proper person. Neither the Indenture Trustee nor the Securities
      Administrator need investigate any fact or matter stated in the
      document.

     

    (b)  Before
      the Indenture Trustee or the Securities Administrator acts or refrains from
      acting, it may require an Officer’s Certificate or an Opinion of Counsel.
      Neither the Indenture Trustee nor the Securities Administrator shall be liable
      for any action it takes or omits to take in good faith in reliance on an
      Officer’s Certificate or Opinion of Counsel.

     

    (c)  Neither
      the Indenture Trustee nor the Securities Administrator shall be liable for
      any
      action it takes or omits to take in good faith which it believes to be
      authorized or within its rights or powers; provided,
      however,
      that
      the Indenture Trustee’s or the Securities Administrator’s conduct does not
      constitute willful misconduct, negligence or bad faith.

     

    (d)  Each
      of
      the Indenture Trustee and the Securities Administrator may consult with counsel,
      and the advice or Opinion of Counsel with respect to legal matters relating
      to
      the Basic Documents and the Notes shall be full and complete authorization
      and
      protection from liability in respect to any action taken, omitted or suffered
      by
      it hereunder or in connection herewith in good faith and in accordance with
      the
      advice or opinion of such counsel.

     

    (e)  Each
      of
      the Indenture Trustee and the Securities Administrator may execute any of the
      trusts or powers hereunder or perform any duties hereunder, either directly
      or
      by or through agents, attorneys, custodians or nominees appointed with due
      care,
      and shall not be responsible for any willful misconduct or negligence on the
      part of any agent, attorney, custodian or nominee so appointed.

     

    (f)  Any
      permissive right of the Indenture Trustee enumerated in this Indenture shall
      not
      be construed as a duty.

     

    (g)  In
      no
      event shall the Indenture Trustee be liable, directly or indirectly, for any
      special, indirect or consequential damages, even if the Indenture Trustee has
      been advised of the possibility of such damages.

     

    Section
      6.03.  Individual
      Rights of Indenture Trustee and Securities Administrator.
      The
      Indenture Trustee or the Securities Administrator in its individual or any
      other
      capacity may become the owner or pledgee of Notes and may otherwise deal with
      the Issuer or its Affiliates with the same rights it would have if it were
      not
      Indenture Trustee or the Securities Administrator, as applicable, subject to
      the
      requirements of the Trust Indenture Act. Any Note Registrar, co-registrar or
      co-paying agent may do the same with like rights. However, each of the Indenture
      Trustee and the Securities Administrator must comply with Sections 6.11 and
      6.12
      hereof.

     

    Section
      6.04.  Indenture
      Trustee’s and Securities Administrator’s Disclaimer.
      Neither
      the Indenture Trustee nor the Securities Administrator shall be responsible
      for
      and makes no representation as to the validity or adequacy of this Indenture
      or
      the Notes, it shall not be accountable for the Issuer’s use of the proceeds from
      the Notes, and it shall not be responsible for any statement of the Issuer
      in
      the Indenture or in any document issued in connection with the sale of the
      Notes
      or in the Notes other than the Securities Administrator’s certificate of
      authentication. 

     

    Section
      6.05.  Notice
      of Event of Default.
      Subject
      to Section 5.01, the Indenture Trustee or the Securities Administrator shall
      promptly mail to each Noteholder notice of the Event of Default after it is
      actually known to a Responsible Officer
      of
      the Indenture Trustee or the Securities Administrator, unless such Event of
      Default shall have been waived or cured. Except in the case of an Event of
      Default in payment of principal of or interest on any Note, the Indenture
      Trustee or the Securities Administrator may withhold the notice if and so long
      as it in good faith determines that withholding the notice is in the interests
      of Noteholders.

     

    
      	Section
              6.06.  	
              Reports
                by Securities Administrator to Holders and Tax
                Administration.

            

    

     

    The
      Securities Administrator shall deliver to each Noteholder such information
      as
      may be required to enable such holder to prepare its federal and state income
      tax returns. Pursuant to the Mortgage Loan Sale and Contribution Agreement,
      the
      Administrator will prepare and file (or cause to be prepared and filed), on
      behalf of the Owner Trustee or the Issuer, all tax returns (if any) and
      information reports, tax elections and such annual or other reports of the
      Issuer as are necessary for preparation of tax returns and information reports
      as required by the Code. In addition, the Securities Administrator shall prepare
      a Form 1099 with respect to each calendar year.

     

    Section
      6.07.  Compensation
      and Indemnity.  Each
      of the Indenture Trustee and the Securities Administrator shall be paid by
      the
      Master Servicer from a portion of the Master Servicing Fee.

     

    The
      Issuer shall reimburse the Indenture Trustee, the Securities Administrator
      and
      the Owner Trustee for all reasonable out-of-pocket expenses incurred or made
      by
      it, including costs of collection, in addition to compensation for its services.
      Such expenses shall include reasonable compensation and expenses, disbursements
      and advances of the Indenture Trustee’s the Securities Administrator’s or the
      Owner Trustee’s agents, counsel, accountants and experts. The Issuer shall
      indemnify each of the Indenture Trustee, the Securities Administrator and the
      Master Servicer and hold each of them harmless against any and all claim, tax,
      penalty, loss, liability or expense (including attorneys’ fees and expenses) of
      any kind whatsoever incurred by it in connection with the administration of
      this
      Trust and the performance of its duties under any of the Basic Documents. The
      Indenture Trustee, the Securities Administrator or the Master Servicer, as
      applicable, shall notify the Issuer promptly of any claim for which it may
      seek
      indemnity. Failure by the Indenture Trustee, the Securities Administrator or
      the
      Master Servicer to so notify the Issuer shall not relieve the Issuer of its
      obligations hereunder, unless the Issuer is materially prejudiced thereby.
      The
      Issuer shall defend any such claim, and the Indenture Trustee, the Securities
      Administrator or the Master Servicer, as applicable (each an “Indemnified
      Party”) shall have the right to employ separate counsel with respect to any such
      claim 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 Issuer in writing;
      (ii) such Indemnified Party shall have been advised 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 Issuer and in the reasonable judgment
      of
      such counsel it is advisable for such Indemnified Party to employ separate
      counsel or (iii) the Issuer has failed to assume the defense of such claim
      within a reasonable period of time following written notice thereof, it being
      understood, however, with respect to any event described in clause (ii) or
      clause (iii) hereof, that the Issuer shall not, in connection with any one
      such
      claim or separate but substantially similar or related claims 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 Indemnified Parties.
      The Issuer is not obligated to reimburse any expense or indemnify against any
      loss, liability or expense incurred by the Indenture Trustee, the Securities
      Administrator or the Master Servicer through the Indenture Trustee’s, the
      Securities Administrator’s or the Master Servicer’s own willful misconduct,
      negligence or bad faith.

     

    Notwithstanding
      anything to the contrary contained herein, the Issuer shall not settle any
      claim
      involving the Indenture Trustee without the Indenture Trustee’s prior written
      consent unless such settlement involves a complete and absolute release of
      the
      Indenture Trustee from any and all liability in connection with such
      claim.

     

    The
      Issuer shall indemnify each of the Originator and the Seller to the extent
      set
      forth in Section 5.2 of the Mortgage Loan Sale and Contribution
      Agreement.

     

    The
      Issuer’s payment and indemnification obligations to the Indenture Trustee, the
      Securities Administrator, the Master Servicer and the Owner Trustee pursuant
      to
      this Section 6.07 shall survive the discharge of this Indenture and the
      termination or resignation of the Indenture Trustee, the Securities
      Administrator or the Master Servicer. When the Indenture Trustee, the Securities
      Administrator, the Master Servicer or the Owner Trustee incurs expenses after
      the occurrence of an Event of Default with respect to the Issuer, the expenses
      are intended to constitute expenses of administration under Title 11 of the
      United States Code or any other applicable federal or state bankruptcy,
      insolvency or similar law.

     

    Section
      6.08.  Replacement
      of Indenture Trustee or Securities Administrator.
      No
      resignation or removal of the Indenture Trustee or the Securities Administrator
      and no appointment of a successor Indenture Trustee or Securities Administrator
      shall become effective until the acceptance of appointment by the successor
      Indenture Trustee or Securities Administrator pursuant to this Section 6.08.
      The
      Indenture Trustee or the Securities Administrator may resign at any time by
      so
      notifying the Issuer. Holders of a majority of Note Balances of the Notes may
      remove the Indenture Trustee or the Securities Administrator by so notifying
      the
      Indenture Trustee or the Securities Administrator, as applicable, and may
      appoint a successor Indenture Trustee or Securities Administrator. The Issuer
      shall remove the Indenture Trustee or the Securities Administrator
      if:

     

    (i)  the
      Indenture Trustee or the Securities Administrator fails to comply with Section
      6.11 hereof;

     

    (ii)  the
      Indenture Trustee or the Securities Administrator is adjudged a bankrupt or
      insolvent;

     

    (iii)  a
      receiver or other public officer takes charge of the Indenture Trustee or the
      Securities Administrator or its respective property; or

     

    (iv)  the
      Indenture Trustee or the Securities Administrator otherwise becomes incapable
      of
      acting.

     

    If
      the
      Indenture Trustee or the Securities Administrator resigns or is removed or
      if a
      vacancy exists in the office of the Indenture Trustee or the Securities
      Administrator for any reason (the Indenture Trustee in such event being referred
      to herein as the retiring Indenture Trustee and the Securities Administrator
      in
      such event being referred to herein as the retiring Securities Administrator),
      the Issuer shall, promptly appoint a successor Indenture Trustee or Securities
      Administrator, as applicable.

     

    A
      successor Indenture Trustee or Securities Administrator shall deliver a written
      acceptance of its appointment to the retiring Indenture Trustee or Securities
      Administrator, as applicable, and to the Issuer. Thereupon, the resignation
      or
      removal of the retiring Indenture Trustee or Securities Administrator shall
      become effective, and the successor Indenture Trustee or Securities
      Administrator shall have all the rights, powers and duties of the Indenture
      Trustee or Securities Administrator, as applicable, under this Indenture. The
      successor Indenture Trustee or Securities Administrator shall mail a notice
      of
      its succession to Noteholders. The retiring Indenture Trustee or Securities
      Administrator shall promptly transfer all property held by it as Indenture
      Trustee or Securities Administrator to the successor Indenture Trustee or
      Securities Administrator, as applicable.

     

    If
      a
      successor Indenture Trustee or Securities Administrator does not take office
      within 30 days after the retiring Indenture Trustee or Securities Administrator
      resigns or is removed, the retiring Indenture Trustee or Securities
      Administrator, as applicable, the Issuer or the Holders of a majority of Note
      Balances of the Notes may petition any court of competent jurisdiction for
      the
      appointment of a successor Indenture Trustee or Securities
      Administrator.

     

    Notwithstanding
      the replacement of the Indenture Trustee or Securities Administrator pursuant
      to
      this Section, the Issuer’s obligations under Section 6.07 shall continue
      for the benefit of the retiring Indenture Trustee or Securities
      Administrator.

     

    Section
      6.09.  Successor
      Indenture Trustee or Securities Administrator by Merger.
      If
      either the Indenture Trustee or the Securities Administrator consolidates with,
      merges or converts into, or transfers all or substantially all of its corporate
      trust business or assets to, another corporation or banking association, the
      resulting, surviving or transferee corporation, without any further act, shall
      be the successor Indenture Trustee or Securities Administrator, as applicable;
      provided, that such corporation or banking association shall be otherwise
      qualified and eligible under Section 6.11 hereof. The Indenture Trustee or
      the
      Securities Administrator, as applicable, shall provide the Rating Agencies
      with
      prior written notice of any such transaction.

     

    If
      at the
      time such successor or successors by merger, conversion or consolidation to
      the
      Securities Administrator shall succeed to the trusts created by this Indenture
      and any of the Notes shall have been authenticated but not delivered, any such
      successor to the Securities Administrator may adopt the certificate of
      authentication of any predecessor trustee and deliver such Notes so
      authenticated; and if at that time any of the Notes shall not have been
      authenticated, any successor to the Securities Administrator may authenticate
      such Notes either in the name of any predecessor hereunder or in the name of
      the
      successor to the Securities Administrator; and in all such cases such
      certificates shall have the full force which it is in the Notes or in this
      Indenture provided that the certificate of the Securities Administrator shall
      have.

     

    
      	Section
              6.10.  	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee.

            

    

     

    (a)  Notwithstanding
      any other provisions of this Indenture, at any time, for the purpose of meeting
      any legal requirement of any jurisdiction in which any part of the Trust may
      at
      the time be located, the Indenture Trustee shall have the power and may execute
      and deliver all instruments to appoint one or more Persons to act as a
      co-trustee or co-trustees, 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 Noteholders, such title to the Trust, or any part hereof,
      and, subject to the other provisions of this Section, such powers, duties,
      obligations, rights and trusts as the Indenture Trustee may consider necessary
      or desirable. No co-trustee or separate trustee hereunder shall be required
      to
      meet the terms of eligibility as a successor trustee under Section 6.11
      hereof.

     

    (b)  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 Indenture
      Trustee shall be conferred or imposed upon and exercised or performed by the
      Indenture 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 Indenture 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 the Indenture 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 Collateral 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 Indenture Trustee;

     

    (ii)  no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii)  the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c)  Any
      notice, request or other writing given to the Indenture 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 Indenture and the conditions
      of this Article VI. 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 Indenture Trustee or
      separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating
      to
      the conduct of, affecting the liability of, or affording protection to, the
      Indenture Trustee. Every such instrument shall be filed with the Indenture
      Trustee.

     

    (d)  Any
      separate trustee or co-trustee may at any time constitute the Indenture 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 Indenture
      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
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    Section
      6.11.  Eligibility;
      Disqualification.  The
      Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a).
      The Indenture Trustee shall have a combined capital and surplus of at least
      $50,000,000 as set forth in its most recent published annual report of condition
      and it or its parent shall have a long-term debt rating of “Baa3” or better by
      Moody’s and “BBB” or better by S&P. The Indenture Trustee shall comply with
      TIA § 310(b), including the optional provision permitted by the second sentence
      of TIA § 310(b)(9); provided,
      however,
      that
      there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
      indentures under which other securities of the Issuer are outstanding if the
      requirements for such exclusion set forth in TIA § 310(b)(1) are
      met.

     

    Section
      6.12.  Preferential
      Collection of Claims Against Issuer.
      The
      Indenture Trustee shall comply with TIA § 311(a), excluding any creditor
      relationship listed in TIA § 311(b). An Indenture Trustee who has resigned or
      been removed shall be subject to TIA § 311(a) to the extent
      indicated.

     

    Section
      6.13.  Representations
      and Warranties.  Each
      of the Indenture Trustee and the Securities Administrator hereby represents
      that:

     

    (i)  It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States.

     

    (ii)  The
      execution and delivery of this Indenture by it, and the performance and
      compliance with the terms of this Indenture by it, will not violate its charter
      or bylaws.

     

    (iii)  It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Indenture has duly authorized the execution, delivery
      and
      performance of this Indenture, and has duly executed and delivered this
      Indenture.

     

    (iv)  This
      Indenture, assuming due authorization, execution and delivery by the Issuer,
      constitutes a valid, legal and binding obligation of it, enforceable against
      it
      in accordance with the terms hereof, subject to (A) applicable bankruptcy,
      insolvency, receivership, reorganization, moratorium and other laws affecting
      the enforcement of creditors’ rights generally, and (B) general principles of
      equity, regardless of whether such enforcement is considered in a proceeding
      in
      equity or at law.

     

    (v)  Each
      of
      the Indenture Trustee and the Securities Administrator is a “securities
      intermediary,” as such term is defined in Section 8-102(a)(14)(B) of the New
      York UCC, that in the ordinary course of its business maintains “securities
      accounts” for others, as such term is used in Section 8-501 of the New York UCC.
      The local law of jurisdiction of each of the Indenture Trustee and the
      Securities Administrator as securities intermediary shall be the State of New
      York.

     

    Section
      6.14.  Directions
      to Indenture Trustee and Securities Administrator. 
      The Indenture Trustee and the Securities Administrator are hereby
      directed:

     

    (i)  in
      the
      case of the Indenture Trustee, to accept the pledge of the Mortgage Loans and
      hold the assets of the Trust in trust for the Noteholders;

     

    (ii)  in
      the
      case of the Securities Administrator, to authenticate and deliver the Notes
      substantially in the form prescribed by Exhibit A-1 and Exhibit A-2 to this
      Indenture in accordance with the terms of this Indenture; and

     

    (iii)  to
      take
      all other actions as shall be required to be taken by the terms of this
      Indenture.

     

    Section
      6.15.  The
      Agents.  The
      provisions of this Indenture relating to the limitations of the Indenture
      Trustee’s and the Securities Administrator’s liability and to its indemnity,
      rights and protections shall inure also to the Paying Agent and Note
      Registrar.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    
      	Section
              7.01.  	
              Issuer
                To Furnish Securities Administrator Names and Addresses of
                Noteholders.

            

    

     

    The
      Issuer will furnish or cause to be furnished to the Securities Administrator
      (a)
      not more than five days after each Record Date, a list, in such form as the
      Securities Administrator may reasonably require, of the names and addresses
      of
      the Holders of Notes as of such Record Date, and (b) at such other times as
      the
      Securities Administrator may request in writing, within 30 days after receipt
      by
      the Issuer of any such request, a list of similar form and content as of a
      date
      not more than 10 days prior to the time such list is furnished; provided,
      however,
      that so
      long as the Securities Administrator is the Note Registrar, no such list shall
      be required to be furnished to the Securities Administrator.

     

    
      	Section
              7.02.  	
              Preservation
                of Information; Communications to Noteholders.

            

    

     

    (a)  The
      Securities Administrator shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders of Notes contained in the
      most recent list furnished to the Indenture Trustee as provided in Section
      7.01
      hereof and the names and addresses of Holders of Notes received by the
      Securities Administrator in its capacity as Note Registrar. The Securities
      Administrator may destroy any list furnished to it as provided in such Section
      7.01 upon receipt of a new list so furnished.

     

    (b)  Noteholders
      or Note Owners may communicate pursuant to TIA § 312(b) with other Noteholders
      or Note Owners with respect to their rights under this Indenture or under the
      Notes.

     

    (c)  The
      Issuer, the Indenture Trustee, the Securities Administrator and the Note
      Registrar shall have the protection of TIA § 312(c).

     

    
      	Section
              7.03.  	
              Reports
                of Issuer.

            

    

     

    (a)  Subject
      to Section 3.13 of the Servicing Agreement,

     

    (i)  The
      Securities Administrator shall file with the Commission on behalf of the Issuer,
      with a copy to the Issuer within 15 days before the Issuer is required to file
      the same with the Commission, the annual reports and the information, documents
      and other reports (or such portions of any of the foregoing as the Commission
      may from time to time by rules and regulations prescribe) that the Issuer may
      be
      required to file with the Commission pursuant to Section 13 or 15(d) of the
      Exchange Act;

     

    (ii)  The
      Securities Administrator shall file with the Commission, on behalf of the
      Issuer, in accordance with rules and regulations prescribed from time to time
      by
      the Commission such additional information, documents and reports with respect
      to compliance by the Issuer with the conditions and covenants of this Indenture
      as may be required from time to time by such rules and regulations;

     

    (iii)  The
      Securities Administrator shall supply (and the Securities Administrator shall
      transmit by mail to all Noteholders described in TIA § 313(c)) such summaries of
      any information, documents and reports required to be filed by the Issuer
      pursuant to clauses (i) and (ii) of this Section 7.03(a) and by rules and
      regulations prescribed from time to time by the Commission; and

     

    (iv)  For
      each
      Distribution Date, through and including the Distribution Date in December
      2006,
      the Securities Administrator shall calculate the Significance Percentage of
      the
      Interest Rate Swap Agreement. If on any such Distribution Date, the Significance
      Percentage is equal to or greater than 9%, the Securities Administrator shall
      promptly notify the Depositor and the Depositor, on behalf of the Securities
      Administrator, shall obtain the financial information required to be delivered
      by the Swap Provider pursuant to the terms of the Interest Rate Swap Agreement.
      If, on any succeeding Distribution Date through and including the Distribution
      Date in December 2006, the Significance Percentage is equal to or greater than
      10%, the Securities Administrator shall promptly notify the Depositor and the
      Depositor shall, within 5 Business Days of such Distribution Date, deliver
      to
      the Securities Administrator the financial information provided to it by the
      Swap Provider for inclusion in the Form 10-D relating to such Distribution
      Date.

     

    With
      respect to any Payment Date, for purposes of determining the numerator of the
      fraction that constitutes the Significance Percentage, the interest rate used
      to
      project future amounts payable under the Interest Rate Swap Agreement shall
      be
      equal to the highest rate reflected on the Implied Forwards Curve available
      at
      Bloomberg Financial Markets, L.P. for the remaining term of the Interest Rate
      Swap Agreement plus the percentage equivalent of a fraction, the numerator
      of
      which is 3.00% and the denominator of which is the remaining Payment Dates
      on
      which the Securities Administrator is entitled to receive payments under the
      Interest Rate Swap Agreement). The discount rate used to determine the net
      present value of the estimated future amounts payable shall be equal to the
      lowest rate reflected on the Implied Forwards Curve. The Securities
      Administrator shall obtain the Implied Forwards Curve from Bloomberg within
      15
      Business Days of the respective Payment Date. To determine the Implied Forwards
      Curve for such Payment Date, the Securities Administrator shall take the
      following steps on the Bloomberg terminal: (1) the following keystrokes shall
      be
      entered: fwcv <enter>, 32 (or any such other number as represents the
      United States) <enter>, 3 <enter>; (2) the Forwards shall be set to
“1-Mo”; (3) the Intervals shall be set to “1-Mo”; and (4) the Points shall be
      set to equal the remaining term of the Interest Rate Swap Agreement in months
      and the Securities Administrator shall click <enter>. For purposes of
      estimating future amounts payable under the Interest Rate Swap Agreement, the
      accrual period for both the Fixed Amounts and the Floating Amounts (as defined
      in the Confirmation) shall be assumed to be a 30-day period in a 360-day
      year.

     

    (b)  Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31st
      of each
      year.

     

    Section
      7.04.  Reports
      by Securities Administrator.
      If
      required by TIA § 313(a), within 60 days after each January 30th
      beginning with March 31, 2007, the Securities Administrator (on behalf of the
      Indenture Trustee) shall mail to each Noteholder as required by TIA § 313(c) a
      brief report dated as of such date that complies with TIA § 313(a). The
      Securities Administrator (on behalf of the Indenture Trustee) also shall comply
      with TIA § 313(b).

     

    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Securities Administrator with the Commission via EDGAR and each stock exchange,
      if any, on which the Notes are listed. The Issuer shall notify the Indenture
      Trustee and the Securities Administrator if and when the Notes are listed on
      any
      stock exchange.

     

    
      	Section
              7.05.  	
              Statements
                to Noteholders.

            

    

     

    (a)  Not
      later
      than each Payment Date the Securities Administrator shall prepare a statement
      (the “Remittance Report”) containing the information set forth below with
      respect to such Payment Date, which information shall be based solely upon
      the
      loan level information furnished by the Servicer and the Master Servicer, as
      applicable, upon which the Securities Administrator shall conclusively rely
      without independent verification thereof:

     

    (i)  the
      Available Funds and the Note Rate for each Class for the related Payment
      Date;

     

    (ii)  the
      aggregate amount of the payment to each Class of Notes on such Payment
      Date;

     

    (iii)  the
      amount of the payment set forth in paragraph (ii) above in respect of interest,
      the amount thereof in respect of any Class Interest Carryover Shortfall, and
      the
      amount of any Class Interest Carryover Shortfall remaining and the amount
      thereof in respect of any Class N Interest Shortfall, and the amount of any
      Class N Interest Shortfall remaining;

     

    (iv)  the
      amount of the payment set forth in paragraph (ii) above in respect of principal
      and the amount thereof in respect of the Class Principal Carryover Shortfall,
      and any remaining Class Principal Carryover Shortfall;

     

    (v)  the
      amount of Excess Interest paid as principal;

     

    (vi)  the
      aggregate amount of the Servicing Fee and the Master Servicing Fee for such
      Payment Date;

     

    (vii)  the
      Pool
      Balance and the aggregate Principal Balance of the Mortgage Loans in each Loan
      Group as of the close of business on the last day of the preceding Due
      Period;

     

    (viii)  the
      Class
      Note Balance of each Class of Notes after giving effect to payments allocated
      to
      principal;

     

    (ix)  the
      Overcollateralization Amount and the Required Overcollateralization Amount
      as of
      the close of business on the Payment Date, after giving effect to payments
      of
      principal on such Payment Date;

     

    (x)  whether
      a
      Cumulative Loss Event or a Delinquency Event has occurred and is continuing
      and
      the calculation thereof;

     

    (xi)  the
      aggregate amount of Principal Prepayments received during the related Prepayment
      Period;

     

    (xii)  the
      amount of all Curtailments that were received during the Due
      Period;

     

    (xiii)  the
      principal portion of all Monthly Payments received during the Due
      Period;

     

    (xiv)  the
      interest portion of all Monthly Payments received on the Mortgage Loans during
      the Due Period;

     

    (xv)  the
      amount of the Monthly Advances and the Compensating Interest payment to be
      made
      on the Determination Date;

     

    (xvi)  the
      amount to be distributed to the Certificates for the Payment Date;

     

    (xvii)  the
      weighted average remaining term to maturity of the Mortgage Loans and the
      weighted average Loan Rate as of the first day of the related Due
      Period;

     

    (xviii)  the
      amount of all payments or reimbursements to the Servicer pursuant to Sections
      3.03(ii) and (vi) of the Servicing Agreement (as reported by the
      Servicer);

     

    (xix)  the
      number of Mortgage Loans outstanding at the beginning and at the end of the
      related Due Period;

     

    (xx)  the
      amount of Liquidation Loan Losses experienced during the preceding Due Period
      and the Cumulative Net Losses as a percentage of the Cut-Off Date Pool
      Balance;

     

    (xxi)  as
      of the
      end of the preceding calendar month, the number and Principal Balance of
      Mortgage Loans which are 30-59 days delinquent; the number and Principal Balance
      of Mortgage Loans which are 60-89 days delinquent; the number and Principal
      Balance of Mortgage Loans which are 90 or more days delinquent (including the
      number and Principal Balance of Mortgage Loans which are in foreclosure; the
      number and Principal Balance of Mortgage Loans in bankruptcy; and the number
      and
      Principal Balance of Mortgage Loans which are REO Property, each separately
      set
      forth) (for the avoidance of doubt, delinquencies in this clause (xxi) are
      measured in accordance with the OTS method);

     

    (xxii)  the
      amounts of Applied Realized Loss Amounts for the applicable Due Period and
      the
      cumulative amount of Applied Realized Loss Amounts to date; 

     

    (xxiii)  the
      number and aggregate Principal Balance of Mortgage Loans, other than Mortgage
      Loans in default or imminent default, that were modified by the Servicer during
      the related Due Period (as reported by the Servicer)

     

    (xxiv)  the
      amount of Basis Risk Shortfall Amount paid to each Class of Group I
      Notes;

     

    (xxv)  the
      amount of any Net Swap Payments or Swap Termination Payments;

     

    (xxvi)  whether
      a
      Stepdown Date or Trigger Event is in effect on such Payment Date;
      and

     

    (xxvii)  the
      applicable Record Dates, Interest Accrual Periods and determination dates for
      calculating payments for such Payment Date.

     

    (b)  The
      Securities Administrator shall make available such report to the Servicer,
      the
      Master Servicer, the Indenture Trustee, the Seller, the Noteholders, the Rating
      Agencies, Bloomberg (at 499 Park Avenue, New York, New York 10022, Attention:
      Mike Geller) and Intex Solutions (at 35 Highland Circle, Needham, Massachusetts
      02144, Attention: Harold Brennman) on the Payment Date. The Securities
      Administrator may fully rely upon and shall have no liability with respect
      to
      information provided by the Servicer or the Master Servicer. In the case of
      information furnished pursuant to subclauses (ii), (iii), (iv) and (vi) above,
      the amounts shall be expressed in a separate section of the report as a dollar
      amount for each Class for each $1,000 original dollar amount as of the related
      Cut-Off Date.

     

    (c)  The
      Securities Administrator will make the Remittance Report (and, at its option,
      any additional files containing the same information in an alternative format)
      available each month to Noteholders and the parties to this Indenture via the
      Securities Administrator’s internet website. The Securities Administrator’s
      internet website shall initially be located at “www.ctslink.com”. Assistance in
      using the website can be obtained by calling the Securities Administrator’s
      customer service desk at (301) 815-6600. Parties that are unable to use the
      above distribution options are entitled to have a paper copy mailed to them
      via
      first class mail by calling the customer service desk and indicating such.
      The
      Securities Administrator shall have the right to change the way Remittance
      Reports are distributed in order to make such distribution more convenient
      and/or more accessible to the above parties and the Securities Administrator
      shall provide timely and adequate notification to all above parties regarding
      any such changes. As a condition to access the Securities Administrator’s
      internet website, the Securities Administrator may require registration and
      the
      acceptance of a disclaimer. The Securities Administrator will not be liable
      for
      the dissemination of information in accordance with this Agreement. The
      Securities Administrator shall also be entitled to rely on but shall not be
      responsible for the content or accuracy of any information provided by third
      parties for purposes of preparing the Remittance Report and may affix thereto
      any disclaimer it deems appropriate in its reasonable discretion (without
      suggesting liability on the part of any other party hereto).

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01.  Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Indenture Trustee may demand payment
      or delivery of, and shall receive and collect, directly and without intervention
      or assistance of any fiscal agent or other intermediary, all money and other
      property payable to or receivable by the Indenture Trustee or the Securities
      Administrator pursuant to this Indenture. The Securities Administrator shall
      apply all such money received by it as provided in this Indenture. Except as
      otherwise expressly provided in this Indenture, if any default occurs in the
      making of any payment or performance under any agreement or instrument that
      is
      part of the Trust, the Indenture Trustee may take such action as may be
      appropriate to enforce such payment or performance, including the institution
      and prosecution of appropriate Proceedings. Any such action shall be without
      prejudice to any right to claim a Default or Event of Default under this
      Indenture and any right to proceed thereafter as provided in Article
      V.

     

    
      	Section
              8.02.  	
              Trust
                Accounts.

            

    

     

    (a)  On
      or
      prior to the Closing Date, the Issuer shall cause the
      Securities Administrator
      to
      establish and maintain, in the name of the Indenture Trustee, for the benefit
      of
      the Noteholders, the Payment Account as provided in Section 3.01
      hereof.

     

    (b)  On
      each
      Payment Date, the Securities Administrator shall pay all remaining amounts
      on
      deposit in the Payment Account to the Noteholders in respect of the Notes and
      to
      such other persons in the order of priority set forth in Section 3.05 hereof
      (except as otherwise provided in Section 5.04(b) hereof).

     

    Section
      8.03.  Officer’s
      Certificate.
      The
      Indenture Trustee shall receive at least seven Business Days’ notice when
      requested by the Issuer to take any action pursuant to Section 8.05(a) hereof,
      accompanied by copies of any instruments to be executed, and the Indenture
      Trustee shall also require, as a condition to such action, an Officer’s
      Certificate, in form and substance satisfactory to the Indenture Trustee,
      stating the legal effect of any such action, outlining the steps required to
      complete the same, and concluding that all conditions precedent to the taking
      of
      such action have been complied with.

     

    Section
      8.04.  Termination
      Upon Payment to Noteholders.
      This
      Indenture and the respective obligations and responsibilities of the Issuer,
      the
      Indenture Trustee and the Securities Administrator created hereby shall
      terminate upon the payment to Noteholders, the Certificate Paying Agent on
      behalf of the Owner Trustee, the Certificateholders, the Indenture Trustee
      and
      the Securities Administrator of all amounts required to be paid pursuant to
      Article III; provided,
      however,
      that in
      no event shall the trust created hereby continue beyond the expiration of 21
      years from the death of the survivor of the descendants of Joseph P. Kennedy,
      the late ambassador of the United States to the Court of St. James, living
      on
      the date hereof.

     

    
      	Section
              8.05.  	
              Release
                of Collateral.

            

    

     

    (a)  Subject
      to the payment of its fees and expenses and the fees and expenses of the
      Securities Administrator, the Indenture Trustee may, and when required by the
      provisions of this Indenture shall, execute instruments to release property
      from
      the lien of this Indenture, or convey the Indenture Trustee’s interest in the
      same, in a manner and under circumstances that are not inconsistent with the
      provisions of this Indenture, including for the purposes of any repurchase
      of a
      Mortgage Loan pursuant to Section 3.16 of the Servicing Agreement. No party
      relying upon an instrument executed by the Indenture Trustee as provided in
      Article VIII hereunder shall be bound to ascertain the Indenture Trustee’s
      authority, inquire into the satisfaction of any conditions precedent, or see
      to
      the application of any monies.

     

    (b)  The
      Indenture Trustee shall, at such time as (i) there are no Notes Outstanding
      and
      (ii) all sums due to the Indenture Trustee and the Securities Administrator
      pursuant to this Indenture have been paid, release any remaining portion of
      the
      Trust that secured the Notes from the lien of this Indenture.

     

    (c)  The
      Indenture Trustee shall release property from the lien of this Indenture
      pursuant to this Section 8.05 only upon receipt of a request from the Issuer
      accompanied by an Officers’ Certificate and an Opinion of Counsel stating that
      all applicable requirements have been satisfied.

     

    Section
      8.06.  Surrender
      of Notes Upon Final Payment.
      By
      acceptance of any Note, the Holder thereof agrees to surrender such Note to
      the
      Securities Administrator promptly, prior to such Noteholder’s receipt of the
      final payment thereon.

     

    
      	Section
              8.07.  	
              Optional
                Redemption of the Notes.

            

    

     

    (a)  The
      Seller may, at its option, redeem the Notes on any Payment Date on or after
      the
      Optional Redemption Date, by purchasing (on a servicing-retained basis), on
      such
      Payment Date, all of the outstanding Mortgage Loans and REO Properties at a
      price equal to the greater of (I) the sum of (w) 100% of the aggregate Principal
      Balance of the Mortgage Loans plus (x) the lesser of (A) the appraised value
      of
      any REO Property as determined by the higher of two appraisals completed by
      two
      independent appraisers selected by the Seller and at the Seller’s expense and
      (B) the Principal Balance of the Mortgage Loan related to such REO Property
      plus
      (y) in each case, the greater of (i) the aggregate amount of accrued and unpaid
      interest on the Mortgage Loans through the related Due Period and (ii) thirty
      (30) days’ accrued interest thereon at a rate equal to the Loan Rate, in each
      case net of the Servicing Fee and the Master Servicing Fee and (II) the sum
      of
      (a) the fair market value of the assets of the Trust and (b) the greater of
      (i)
      the aggregate amount of accrued and unpaid interest on the Mortgage Loans
      through the related Due Period and (ii) thirty (30) days’ accrued interest
      thereon at a rate equal to the Loan Rate, in each case net of the Servicing
      Fee
      and the Master Servicing Fee and any Swap Termination Payment to the Swap
      Provider then remaining unpaid which is due to the exercise of such option(the
      “Redemption Price”); provided,
      however,
      that
      the Seller hereby covenants and agrees not to exercise its rights under this
      Section 8.07 on any Payment Date unless the Redemption Price is sufficient
      to
      redeem in full all of the Class N Notes (including all accrued and unpaid
      interest thereon). Following an Optional Redemption of the Notes and a purchase
      of the Mortgage Loans and any REO Properties pursuant to this Section 8.07,
      the
      Servicer shall be entitled to receive the Servicing Fee as compensation for
      its
      continued servicing of such Mortgage Loans and REO Properties. 

     

    (b)  In
      order
      to exercise the foregoing option, the Seller shall provide written notice of
      its
      exercise of such option to the Indenture Trustee, the Securities Administrator
      and the Owner Trustee at least 15 days prior to its exercise. Following receipt
      of the notice, the Securities Administrator shall provide notice to the
      Noteholders of the final payment on the Notes. In addition, the Seller shall,
      not less than one Business Day prior to the proposed Payment Date on which
      such
      redemption is to be made, deposit the aggregate redemption price specified
      in
      (a) above with the Securities Administrator, who shall deposit the aggregate
      redemption price into the Payment Account and shall, on the Payment Date after
      receipt of the funds, apply such funds to make final payments of principal
      and
      interest on the Notes in accordance with Section 3.05(b) and (c) hereof and
      payment in full to the Indenture Trustee and the Securities Administrator,
      and
      this Indenture shall be discharged subject to the provisions of Section 4.10
      hereof. If for any reason the amount deposited by the Seller is not sufficient
      to make such redemption or such redemption cannot be completed for any reason,
      the amount so deposited by the Seller with the Securities Administrator shall
      be
      immediately returned to the Seller in full and shall not be used for any other
      purpose or be deemed to be part of the Trust.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    
      	Section
              9.01.  	
              Supplemental
                Indentures Without Consent of Noteholders.

            

    

     

    (a)  Without
      the consent of the Holders of any Notes but with prior notice to the Rating
      Agencies, the Issuer, the Indenture Trustee and the Securities Administrator,
      when authorized by an Issuer Request, at any time and from time to time, may
      enter into one or more indentures supplemental hereto (which shall conform
      to
      the provisions of the TIA as in force at the date of the execution thereof),
      in
      form satisfactory to the Indenture Trustee and the Securities Administrator,
      for
      any of the following purposes:

     

    (i)  to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii)  to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Notes contained;

     

    (iii)  to
      add to
      the covenants of the Issuer, for the benefit of the Holders of the Notes, or
      to
      surrender any right or power herein conferred upon the Issuer;

     

    (iv)  to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v)  to
      cure
      any ambiguity, to correct or supplement any provision herein or in any
      supplemental indenture that may be inconsistent with any other provision herein
      or in any supplemental indenture;

     

    (vi)  to
      make
      any other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture; provided, that such action (as
      evidenced by either (i) an Opinion of Counsel delivered to the Depositor, the
      Issuer, the Seller, the Securities Administrator and the Indenture Trustee
      or
      (ii) confirmation from the Rating Agencies that such amendment will not result
      in the reduction or withdrawal of the rating of any Class of Notes) shall not
      materially and adversely affect the interests of the Holders of the
      Notes;

     

    (vii)  to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article VI hereof; or

     

    (viii)  to
      modify, eliminate or add to the provisions of this Indenture to such extent
      as
      shall be necessary to effect the qualification of this Indenture under the
      TIA
      or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the
      TIA;

     

    provided,
      however,
      that no
      such indenture supplements shall be entered into unless the Indenture Trustee
      and the Securities Administrator shall have received an Opinion of Counsel
      as to
      the enforceability of any such indenture supplement and to the effect that
      (i)
      such indenture supplement is permitted hereunder and (ii) entering into such
      indenture supplement will not result in a “substantial modification” of the
      Notes under Treasury Regulation Section 1.1001-3 or adversely affect the status
      of the Notes as indebtedness for federal income tax purposes.

     

    Each
      of
      the Indenture Trustee and the Securities Administrator is hereby authorized
      to
      join in the execution of any such supplemental indenture and to make any further
      appropriate agreements and stipulations that may be therein
      contained.

     

    (b)  The
      Issuer, the Indenture Trustee and the Securities Administrator, when authorized
      by an Issuer Request, may, also without the consent of any of the Holders of
      the
      Notes and prior notice to the Rating Agencies, enter into an indenture or
      indentures supplemental hereto for the purpose of adding any provisions to,
      or
      changing in any manner or eliminating any of the provisions of, this Indenture
      or of modifying in any manner the rights of the Holders of the Notes under
      this
      Indenture; provided,
      however,
      that
      such action as evidenced by an Opinion of Counsel, (i) is permitted by this
      Indenture, and shall not (ii) adversely affect in any material respect the
      interests of any Noteholder (which may be evidenced by confirmation from the
      Rating Agencies that such amendment will not result in the reduction or
      withdrawal of the rating of any Class of Notes) or (iii) if 100% of the
      Certificates are not owned by the Seller, cause the Issuer to be subject to
      an
      entity level tax for federal income tax purposes.

     

    (c)  Notwithstanding
      any of the other provisions of this Section 9.01, none of the Issuer, the
      Indenture Trustee or the Securities Administrator shall knowingly enter into
      any
      amendment to this Agreement that adversely affects in any respect the rights
      and
      interests hereunder of the Swap Provider without the prior written consent
      of
      the Swap Provider, such consent not to be unreasonably withheld.

     

    Section
      9.02.  Supplemental
      Indentures With Consent of Noteholders.
      The
      Issuer, the Indenture Trustee and the Securities Administrator, when authorized
      by an Issuer Request, also may, with prior notice to the Rating Agencies and,
      with the consent of the Holders of not less than a majority of the Note Balance
      of each Class of Notes affected thereby, by Act (as defined in Section 10.03
      hereof) of such Holders delivered to the Issuer, the Indenture Trustee and
      the
      Securities Administrator, enter into an indenture or indentures supplemental
      hereto for the purpose of adding any provisions to, or changing in any manner
      or
      eliminating any of the provisions of, this Indenture or of modifying in any
      manner the rights of the Holders of the Notes under this Indenture; provided,
      however,
      that no
      such supplemental indenture shall, without the consent of the Holder of each
      Note affected thereby:

     

    (i)  change
      the date of payment of any installment of principal of or interest on any Note,
      or reduce the principal amount thereof or the interest rate thereon, change
      the
      provisions of this Indenture relating to the application of collections on,
      or
      the proceeds of the sale of, the Trust to payment of principal of or interest
      on
      the Notes, or change any place of payment where, or the coin or currency in
      which, any Note or the interest thereon is payable, or impair the right to
      institute suit for the enforcement of the provisions of this Indenture requiring
      the application of funds available therefor, as provided in Article V, to the
      payment of any such amount due on the Notes on or after the respective due
      dates
      thereof;

     

    (ii)  reduce
      the percentage of the Note Balances of the Notes, the consent of the Holders
      of
      which is required for any such supplemental indenture, or the consent of the
      Holders of which is required for any waiver of compliance with certain
      provisions of this Indenture or certain defaults hereunder and their
      consequences provided for in this Indenture;

     

    (iii)  modify
      or
      alter the provisions of the proviso to the definition of the term “Outstanding”
or modify or alter the exception in the definition of the term
“Holder”;

     

    (iv)  reduce
      the percentage of the Note Balances of the Notes required to direct the
      Indenture Trustee to direct the Issuer to sell or liquidate the Trust pursuant
      to Section 5.04 hereof;

     

    (v)  modify
      any provision of this Section 9.02 except to increase any percentage specified
      herein or to provide that certain additional provisions of this Indenture or
      the
      Basic Documents cannot be modified or waived without the consent of the Holder
      of each Note affected thereby;

     

    (vi)  modify
      any of the provisions of this Indenture in such manner as to affect the
      calculation of the amount of any payment of interest or principal due on any
      Note on any Payment Date (including the calculation of any of the individual
      components of such calculation); or

     

    (vii)  permit
      the creation of any lien ranking prior to or on a parity with the lien of this
      Indenture with respect to any part of the Trust or, except as otherwise
      permitted or contemplated herein, terminate the lien of this Indenture on any
      property at any time subject hereto or deprive the Holder of any Note of the
      security provided by the lien of this Indenture;

     

    and
      provided,
      further,
      that
      such action shall not, as evidenced by an Opinion of Counsel, cause the Issuer
      (if 100% of the Certificates are not owned by the Seller) to be subject to
      an
      entity level tax.

     

    Any
      such
      action shall not (as evidenced by either (i) an Opinion of Counsel delivered
      to
      the Depositor, the Issuer, the Indenture Trustee and the Securities
      Administrator or (ii) confirmation from the Rating Agencies that such amendment
      will not result in the reduction or withdrawal of the rating of any Class of
      Notes) adversely affect in any material respect the interest of any Holder
      (other than a Holder who shall consent to such supplemental
      indenture).

     

    It
      shall
      not be necessary for any Act of Noteholders under this Section 9.02 to approve
      the particular form of any proposed supplemental indenture, but it shall be
      sufficient if such Act shall approve the substance thereof.

     

    Promptly
      after the execution by the Issuer, the Indenture Trustee and the Securities
      Administrator of any supplemental indenture pursuant to this Section 9.02,
      the
      Securities Administrator shall mail to the Holders of the Notes to which such
      amendment or supplemental indenture relates a notice setting forth in general
      terms the substance of such supplemental indenture. Any failure of the
      Securities Administrator to mail such notice, or any defect therein, shall
      not,
      however, in any way impair or affect the validity of any such supplemental
      indenture.

     

    Section
      9.03.  Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modification thereby of the trusts
      created by this Indenture, each of the Indenture Trustee and the Securities
      Administrator shall be entitled to receive (in addition to the documents
      required by Section 10.01), and subject to Sections 6.01 and 6.02 hereof, shall
      be fully protected in relying upon, an Opinion of Counsel stating that the
      execution of such supplemental indenture is authorized or permitted by this
      Indenture. Each of the Indenture Trustee and the Securities Administrator may,
      but shall not be obligated to, enter into any such supplemental indenture that
      affects the Indenture Trustee’s or the Securities Administrator’s own rights,
      duties, liabilities or immunities under this Indenture or
      otherwise.

     

    Section
      9.04.  Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Securities
      Administrator, the Issuer and the Holders of the Notes shall thereafter be
      determined, exercised and enforced hereunder subject in all respects to such
      modifications and amendments, and all the terms and conditions of any such
      supplemental indenture shall be and be deemed to be part of the terms and
      conditions of this Indenture for any and all purposes.

     

    Section
      9.05.  Conformity
      with Trust Indenture Act.
      Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article IX shall conform to the requirements of the Trust Indenture
      Act
      as then in effect so long as this Indenture shall then be qualified under the
      Trust Indenture Act.

     

    Section
      9.06.  Reference
      in Notes to Supplemental Indentures.  Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article IX may, and if required by the Indenture Trustee or
      the
      Securities Administrator shall, bear a notation in form approved by the
      Indenture Trustee and the Securities Administrator as to any matter provided
      for
      in such supplemental indenture. If the Issuer, the Indenture Trustee or the
      Securities Administrator shall so determine, new Notes so modified as to
      conform, in the opinion of the Indenture Trustee, the Securities Administrator
      and the Issuer, to any such supplemental indenture may be prepared and executed
      by the Issuer and authenticated and delivered by the Securities Administrator
      in
      exchange for Outstanding Notes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      X

     

    MISCELLANEOUS

     

    
      	Section
              10.01.  	
              Compliance
                Certificates and Opinions, etc.

            

    

     

    (a)  Upon
      any
      application or request by the Issuer to the Indenture Trustee or the Securities
      Administrator to take any action under any provision of this Indenture, the
      Issuer shall furnish to the Indenture Trustee or the Securities Administrator,
      as applicable, (i) an Officer’s Certificate stating that all conditions
      precedent, if any, provided for in this Indenture relating to the proposed
      action have been complied with and (ii) an Opinion of Counsel stating that
      in
      the opinion of such counsel all such conditions precedent, if any, have been
      complied with, except that, in the case of any such application or request
      as to
      which the furnishing of such documents is specifically required by any provision
      of this Indenture, no additional certificate or opinion need be
      furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (i)  a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    (ii)  a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

    (iii)  a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with;

     

    (iv)  a
      statement as to whether, in the opinion of each such signatory, such condition
      or covenant has been complied with; and

     

    (v)  if
      the
      signatory of such certificate or opinion is required to be Independent, the
      statement required by the definition of the term “Independent
      Certificate.”

     

    (b)  (i)
      Prior
      to the deposit of any Collateral or other property or securities with the
      Indenture Trustee that is to be made the basis for the release of any property
      or securities subject to the lien of this Indenture, the Issuer shall, in
      addition to any obligation imposed in Section 10.01(a) or elsewhere in this
      Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying
      or stating the opinion of each person signing such certificate as to the fair
      value (within 90 days prior to such deposit) to the Issuer of the Collateral
      or
      other property or securities to be so deposited and a report from a nationally
      recognized accounting firm verifying such value.

     

    (ii)  Whenever
      the Issuer is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (i) above, the Issuer shall also deliver to the
      Indenture Trustee an Independent Certificate from a nationally recognized
      accounting firm as to the same matters, if the fair value of the securities
      to
      be so deposited and of all other such securities made the basis of any such
      withdrawal or release since the commencement of the then current fiscal year
      of
      the Issuer, as set forth in the certificates delivered pursuant to clause (i)
      above and this clause (ii), is 10% or more of the Note Balances of the Notes,
      but such a certificate need not be furnished with respect to any securities
      so
      deposited, if the fair value thereof as set forth in the related Officer’s
      Certificate is less than $25,000 or less than one percent of the Note Balances
      of the Notes.

     

    (iii)  Whenever
      any property or securities are to be released from the lien of this Indenture,
      the Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate
      certifying or stating the opinion of each person signing such certificate as
      to
      the fair value (within 90 days prior to such release) of the property or
      securities proposed to be released and stating that in the opinion of such
      person the proposed release will not impair the security under this Indenture
      in
      contravention of the provisions hereof.

     

    (iv)  Whenever
      the Issuer is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (iii) above, the Issuer shall also furnish to the
      Indenture Trustee an Independent Certificate as to the same matters if the
      fair
      value of the property or securities and of all other property or securities
      released from the lien of this Indenture since the commencement of the
      then-current calendar year, as set forth in the certificates required by clause
      (iii) above and this clause (iv), equals 10% or more of the Note Principal
      Balances of the Notes, but such certificate need not be furnished in the case
      of
      any release of property or securities if the fair value thereof as set forth
      in
      the related Officer’s Certificate is less than $25,000 or less than one percent
      of the then Note Principal Balances of the Notes.

     

    Section
      10.02.  Form
      of Documents Delivered to Indenture Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Authorized Officer of the Issuer may be based,
      insofar as it relates to legal matters, upon a certificate or opinion of, or
      representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which his certificate or opinion is based
      are
      erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel
      may be based, insofar as it relates to factual matters, upon a certificate
      or
      opinion of, or representations by, an officer or officers of the Seller or
      the
      Issuer, stating that the information with respect to such factual matters is
      in
      the possession of the Seller or the Issuer, unless such counsel knows, or in
      the
      exercise of reasonable care should know, that the certificate or opinion or
      representations with respect to such matters are erroneous.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report. The foregoing shall not, however, be construed
      to
      affect the Indenture Trustee’s or the Securities Administrator’s right to rely
      upon the truth and accuracy of any statement or opinion contained in any such
      document as provided in Article VI.

     

    
      	Section
              10.03.  	
              Acts
                of Noteholders.

            

    

     

    (a)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents duly appointed in
      writing; and except as herein otherwise expressly provided, such action shall
      become effective when such instrument or instruments are delivered to the
      Securities Administrator, and, where it is hereby expressly required, to the
      Issuer. Such instrument or instruments (and the action embodied therein and
      evidenced thereby) are herein sometimes referred to as the “Act” of the
      Noteholders 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 Indenture and (subject to Section 6.01 hereof)
      conclusive in favor of the Securities Administrator and the Issuer, if made
      in
      the manner provided in this Section 10.03 hereof.

     

    (b)  The
      fact
      and date of the execution by any person of any such instrument or writing may
      be
      proved in any manner that the Securities Administrator deems
      sufficient.

     

    (c)  The
      ownership of Notes shall be proved by the Note Registrar.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Securities
      Administrator or the Issuer in reliance thereon, whether or not notation of
      such
      action is made upon such Note.

     

    
      	Section
              10.04.  	
              Notices
                etc., to Indenture Trustee, Securities Administrator, Issuer and
                Rating
                Agencies.

            

    

     

    Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    (i)  the
      Indenture Trustee or the Securities Administrator by any Noteholder or by the
      Issuer shall be sufficient for every purpose hereunder if made, given, furnished
      or filed in writing to or with the Indenture Trustee or the Securities
      Administrator at the Corporate Trust Office. The Indenture Trustee or the
      Securities Administrator, as applicable, shall promptly transmit any notice
      received by it from the Noteholders to the Issuer; or

     

    (ii)  the
      Issuer by the Indenture Trustee, the Securities Administrator or by any
      Noteholder shall be sufficient for every purpose hereunder if in writing and
      mailed first-class, postage prepaid to the Issuer addressed to: Renaissance
      Home
      Equity Loan Trust 2006-3, in care of Wilmington Trust Company, 1100 North Market
      Street, Wilmington, Delaware 19990-0001, Attention: Corporate Trust
      Administration, or at any other address previously furnished in writing to
      the
      Indenture Trustee and the Securities Administrator by the Issuer. The Issuer
      shall promptly transmit any notice received by it from the Noteholders to the
      Indenture Trustee and the Securities Administrator.

     

    Notices
      required to be given to the Rating Agencies by the Issuer, the Indenture
      Trustee, the Securities Administrator or the Owner Trustee shall be in writing,
      mailed first-class postage pre-paid, to (i) in the case of Moody’s, at the
      following address: Moody’s Investors Service, Inc., Residential Mortgage
      Monitoring Department, 99 Church Street, New York, New York 10007, (ii) in
      the
      case of S&P, at the following address: Standard & Poor’s, 55 Water
      Street, 41st Floor, New York, New York 10041, Attention of Asset Backed
      Surveillance Department and (iii) in the case of Fitch, at the following
      address: Fitch Ratings, 1 State Street Plaza, New York, New York 10004; or
      as to
      each of the foregoing, at such other address as shall be designated by written
      notice to the other parties.

     

    Section
      10.05.  Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders of any event, such notice
      shall be sufficiently given (unless otherwise herein expressly provided) if
      in
      writing and mailed, first-class, postage prepaid to each Noteholder affected
      by
      such event, at such Person’s address as it appears on the Note Register, not
      later than the latest date, and not earlier than the earliest date, prescribed
      for the giving of such notice. In any case where notice to Noteholders is given
      by mail, neither the failure to mail such notice nor any defect in any notice
      so
      mailed to any particular Noteholder shall affect the sufficiency of such notice
      with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly given
      regardless of whether such notice is in fact actually received.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Noteholders shall be filed with the Securities Administrator but
      such
      filing shall not be a condition precedent to the validity of any action taken
      in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Securities Administrator shall be deemed to be a sufficient
      giving of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute an Event of Default.

     

    Section
      10.06.  Conflict
      with Trust Indenture Act.
      If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the TIA, such required provision shall control.

     

    The
      provisions of TIA §§ 310 through 317 that impose duties on any Person (including
      the provisions automatically deemed included herein unless expressly excluded
      by
      this Indenture) are a part of and govern this Indenture, whether or not
      physically contained herein.

     

    Section
      10.07.  Effect
      of Headings.
      The
      Article and Section headings herein are for convenience only and shall not
      affect the construction hereof.

     

    Section
      10.08.  Successors
      and Assigns.  All
      covenants and agreements in this Indenture and the Notes by the Issuer shall
      bind its successors and assigns, whether so expressed or not. All agreements
      of
      the Indenture Trustee and the Securities Administrator in this Indenture shall
      bind its successors, co-trustees and agents.

     

    Section
      10.09.  Separability.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality, and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      10.10.  Third
      Party Beneficiary.
      The
      Master Servicer shall be a third party beneficiary for purposes of Section
      6.07
      of this Indenture.

     

    Section
      10.11.  Legal
      Holidays.
      In any
      case where the date on which any payment is due shall not be a Business Day,
      then (notwithstanding any other provision of the Notes or this Indenture)
      payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which
      nominally due, and no interest shall accrue for the period from and after any
      such nominal date.

     

    Section
      10.12.  GOVERNING
      LAW.  THIS
      INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
      RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
      WITH SUCH LAWS.

     

    Section
      10.13.  Counterparts.
      This
      Indenture may be executed in any number of counterparts, each of which so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument.

     

    Section
      10.14.  Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuer and at its expense accompanied
      by
      an Opinion of Counsel at its expense (which may be counsel to the Indenture
      Trustee or the Securities Administrator or any other counsel reasonably
      acceptable to the Indenture Trustee and the Securities Administrator) to the
      effect that such recording is necessary either for the protection of the
      Noteholders or any other Person secured hereunder or for the enforcement of
      any
      right or remedy granted to the Indenture Trustee under this
      Indenture.

     

    Section
      10.15.  Issuer
      Obligation.  No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer, the Owner Trustee, the Indenture Trustee or the Securities
      Administrator on the Notes or under this Indenture or any certificate or other
      writing delivered in connection herewith or therewith, against (i) the Indenture
      Trustee, the Securities Administrator or the Owner Trustee in its individual
      capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
      partner, owner, beneficiary, agent, officer, director, employee or agent of
      the
      Indenture Trustee, the Securities Administrator or the Owner Trustee in its
      individual capacity, any holder of a beneficial interest in the Issuer, the
      Owner Trustee, the Indenture Trustee or the Securities Administrator or of
      any
      successor or assign of any of them in its individual capacity, except as any
      such Person may have expressly agreed (it being understood that the Indenture
      Trustee, the Securities Administrator and the Owner Trustee have no such
      obligations in their individual capacity) and except that any such partner,
      owner or beneficiary shall be fully liable, to the extent provided by applicable
      law, for any unpaid consideration for stock, unpaid capital contribution or
      failure to pay any installment or call owing to such entity. For all purposes
      of
      this Indenture, in the performance of any duties or obligations of the Issuer
      hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
      of, the terms and provisions of Article VI, VII and VIII of the Trust
      Agreement.

     

    Section
      10.16.  No
      Petition.  The
      Indenture Trustee and the Securities Administrator, by entering into this
      Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
      that they will not at any time prior to one year from the date of termination
      hereof, institute against the Depositor or the Issuer, or join in any
      institution against the Depositor or the Issuer of, any bankruptcy,
      reorganization, arrangement, insolvency or liquidation proceedings, or other
      proceedings under any United States federal or state bankruptcy or similar
      law
      in connection with any obligations relating to the Notes, this Indenture or
      any
      of the Basic Documents, except for filing proofs of claim.

     

    Section
      10.17.  Inspection.
      The
      Issuer agrees that, at its expense, on reasonable prior notice, it shall permit
      any representative of the Indenture Trustee or the Securities Administrator,
      during the Issuer’s normal business hours, to examine all the books of account,
      records, reports and other papers of the Issuer, to make copies and extracts
      therefrom, to cause such books to be audited by Independent certified public
      accountants, and to discuss the Issuer’s affairs, finances and accounts with the
      Issuer’s officers, employees, and Independent certified public accountants, all
      at such reasonable times and as often as may be reasonably requested. The
      Indenture Trustee or the Securities Administrator, as applicable, shall cause
      its representatives to hold in confidence all such information except to the
      extent disclosure may be required by law (and all reasonable applications for
      confidential treatment are unavailing) and except to the extent that the
      Indenture Trustee may reasonably determine that such disclosure is consistent
      with its obligations hereunder.

     

    Section
      10.18.  No
      Recourse to Owner Trustee.
      It is
      expressly understood and agreed by the parties hereto that (a) this Indenture
      is
      executed and delivered by Wilmington Trust Company, not individually or
      personally, but solely as Owner Trustee of Renaissance Home Equity Loan Trust
      2006-3, in the exercise of the powers and authority conferred and vested in
      it,
      (b) each of the representations, undertakings and agreements herein made on
      the
      part of the Issuer is made and intended not as personal representations,
      undertakings and agreements by Wilmington Trust Company but is made and intended
      for the purpose for binding only the Issuer, (c) nothing herein contained shall
      be construed as creating any liability of Wilmington Trust Company, individually
      or personally, to perform any covenant either expressed or implied contained
      herein, all such liability, if any, being expressly waived by the parties hereto
      and by any Person claiming by, through or under the parties hereto and (d)
      under
      no circumstances shall Wilmington Trust Company be personally liable for the
      payment of any indebtedness or expenses of the Issuer or be liable for the
      breach or failure of any obligation, representation, warranty or covenant made
      or undertaken by the Issuer under this Indenture or any other related
      documents.

     

    Section
      10.19.  Proofs
      of Claim.
      The
      Indenture Trustee is authorized to file such proofs of claim and other papers
      or
      documents as may be necessary or advisable in order to have the claims of the
      Indenture Trustee (including any claim for the reasonable compensation,
      expenses, disbursements and advances of the Indenture Trustee, its agents and
      counsel) and the Noteholders allowed in any judicial proceedings relative to
      the
      Issuer (or any other obligor upon the Notes), its creditors or its property
      and
      shall be entitled and empowered to collect, receive and distribute any money
      or
      other property payable or deliverable on any such claims and any custodian
      in
      any such judicial proceeding is hereby authorized by each Noteholder to make
      such payments to the Indenture Trustee, as administrative expenses associated
      with any such proceeding, and, in the event that the Indenture Trustee shall
      consent to the making of such payments directly to the Noteholder to pay to
      the
      Indenture Trustee any amount due to it for the reasonable compensation,
      expenses, disbursements and advances of the Indenture Trustee, its agents and
      counsel, and any other amounts due to the Indenture Trustee under Section 6.07
      hereof. To the extent that the payment of any such compensation, expenses,
      disbursements and advances of the Indenture Trustee, its agents and counsel,
      and
      any other amounts due the Indenture Trustee under Section 6.07 hereof out of
      the
      estate in any such proceeding, shall be denied for any reason, payment of the
      same shall be secured by a Lien on, and shall be paid out of, any and all
      distributions, dividends, money, securities and other properties that the
      Noteholders may be entitled to receive in such proceeding whether in liquidation
      or under any plan of reorganization or arrangement or otherwise. Nothing herein
      contained shall be deemed to authorize the Indenture Trustee to authorize or
      consent to or accept or adopt on behalf of any Noteholder any plan of
      reorganization, arrangement, adjustment or composition affecting the Noteholder
      of the rights of any Noteholder thereof, or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such
      proceeding.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, the Indenture Trustee and the Securities
      Administrator 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.

     

    
      	
              RENAISSANCE
                HOME EQUITY LOAN TRUST 2006-3, as Issuer

               

              By:
                Wilmington Trust Company, not in its individual capacity but solely
                as
                Owner Trustee

            
	 	 
	
              By:

            	
              /s/
                Patricia A. Evans

            
	
              Name:

            	
              Patricia
                A. Evans

            
	
              Title:

            	
              Vice
                President

            
	 
	 
	
              HSBC
                BANK USA, NATIONAL ASSOCIATION, as Indenture Trustee

            
	 	 
	
              By:

            	
              /s/
                Fernando Acebedo

            
	
              Name:

            	
              Fernando
                Acebedo

            
	
              Title:

            	
              Vice
                President

            
	 
	 
	
              WELLS
                FARGO BANK, N.A., as Securities Administrator

            
	 	 
	
              By:

            	
              /s/
                Sandra Whalen

            
	
              Name:

            	
              Sandra
                Whalen

            
	
              Title:

            	
              Vice
                President

            

    

    

     

    
      	
              For
                purposes of Section 6.07:

              WELLS
                FARGO BANK, N.A., as Master Servicer

            
	 	 
	
              By:

            	
              /s/
                Sandra Whalen

            
	
              Name:

            	
              Sandra
                Whalen

            
	
              Title:

            	
              Vice
                President

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF DELAWARE

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW CASTLE

            	
              )

            	 

    

    

     

    On
      this
      ___ day of September, 2006, before me personally appeared __________________
      to
      me known, who being by me duly sworn, did depose and say, that he is a
      __________________ of the Owner Trustee, one of the corporations described
      in
      and which executed the above instrument; and that he signed his name thereto
      by
      like order.

     

    

     

    
      	 	 
	 	
              Notary
                Public

               

              NOTARY
                PUBLIC

            

    

    [NOTARIAL
      SEAL]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              STATE
                OF 

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      this
      ___ day of September, 2006, before me personally appeared __________________
      to
      me known, who being by me duly sworn, did depose and say, that he is a
      __________________ of the Indenture Trustee, one of the corporations described
      in and which executed the above instrument; and that he signed his name thereto
      by like order.

     

    
      	 	 
	 	
              Notary
                Public

               

              NOTARY
                PUBLIC

            

    

    [NOTARIAL
      SEAL]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              STATE
                OF 

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      this
      ___ day of September, 2006, before me personally appeared ________________
      to me
      known, who being by me duly sworn, did depose and say, that she is a
      ___________________ of the Securities Administrator, one of the corporations
      described in and which executed the above instrument; and that she signed her
      name thereto by like order.

     

    
      	 	 
	 	
              Notary
                Public

               

              NOTARY
                PUBLIC

            

    

    

     

    [NOTARIAL
      SEAL]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	
              STATE
                OF 

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      this
      ___ day of September, 2006, before me personally appeared ________________
      to me
      known, who being by me duly sworn, did depose and say, that she is a
      ___________________ of the Master Servicer, one of the corporations described
      in
      and which executed the above instrument; and that she signed her name thereto
      by
      like order.

     

    
      	 	 
	 	
              Notary
                Public

               

              NOTARY
                PUBLIC

            

    

    

     

    [NOTARIAL
      SEAL]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1 - FORM OF OFFERED NOTES

     

    FORM
      OF
      CLASS ___ NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE SECURITIES ADMINISTRATOR OR ITS
      AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE 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.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    

    [FOR
      CLASS M NOTES: THIS NOTE IS SUBORDINATE TO CERTAIN NOTES TO THE EXTENT DESCRIBED
      IN THE INDENTURE REFERRED TO HEREIN].

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    RENAISSANCE
      HOME EQUITY LOAN TRUST 2006-3

     

    HOME
      EQUITY LOAN ASSET-BACKED NOTES, SERIES 2006-3

     

    CLASS
      ____

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $_____________________

            	
              NOTE
                RATE: 

            
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $_____________________

            	
              BOND
                NO. 1

            
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [            
                ]

            

    

    

    Renaissance
      Home Equity Loan Trust 2006-3 (the “Issuer”), a Delaware statutory trust, for
      value received, hereby promises to pay to Cede & Co. or registered assigns,
      the principal sum of ($_________________) in monthly installments on the
      twenty-fifth day of each month or, if such day is not a Business Day, the next
      succeeding Business Day (each a “Payment Date”), commencing in October 2006 and
      ending on or before the Payment Date occurring on the Final Stated Maturity
      Date
      and to pay interest on the Note Balance of this Note (this “Note”) outstanding
      from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Home Equity Loan Asset-Backed
      Notes, Series 2006-3 (the “Notes”), issued under an Indenture dated as of
      September 28, 2006 (the “Indenture”), among the Issuer, HSBC Bank USA, National
      Association, as indenture trustee (the “Indenture Trustee”, which term includes
      any successor Indenture Trustee under the Indenture) and Wells Fargo Bank,
      N.A.,
      as securities administrator (the “Securities Administrator”, which term includes
      any successor Securities
      Administrator under
      the
      Indenture), to which Indenture and all indentures supplemental thereto reference
      is hereby made for a statement of the respective rights thereunder of the
      Issuer, the Indenture Trustee, the Securities Administrator and the Holders
      of
      the Notes and the terms upon which the Notes are to be authenticated and
      delivered. All terms used in this Note which are defined in the Indenture shall
      have the meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the Initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class ____ Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Seller on any
      Payment Date on or after the Optional Redemption Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust which constitutes security
      for
      the payment of the Notes. The assets included in the Trust will be the sole
      source of payments on the Class ____ Notes, and each Holder hereof, by its
      acceptance of this Note, agrees that (i) such Note will be limited in right
      of
      payment to amounts available from the Trust as provided in the Indenture and
      (ii) such Holder shall have no recourse to the Issuer, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Seller, the Servicer,
      the
      Master Servicer or any of their respective affiliates, or to the assets of
      any
      of the foregoing entities, except the assets of the Issuer pledged to secure
      the
      Class ____ Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Securities
      Administrator at least five Business Days prior to the Record Date, any payment
      of principal or interest, other than the final installment of principal or
      interest, shall be made by wire transfer to an account in the United States
      designated by such Holder. All scheduled reductions in the Note Balance of
      a
      Note (or one or more predecessor Notes) effected by payments of principal made
      on any Payment Date shall be binding upon all Holders of this Note and of any
      note issued upon the registration of transfer thereof or in exchange therefor
      or
      in lieu thereof, whether or not such payment is noted on such Note. The final
      payment of this Note shall be payable upon presentation and surrender thereof
      on
      or after the Payment Date thereof at the office or agency of the Issuer
      maintained by it for such purpose pursuant to Section 3.02 of the
      Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      securing the Notes or otherwise shall continue to be applied to payments of
      principal of and interest on the Notes as if they had not been declared due
      and
      payable.

     

    The
      failure to pay any Class Interest Carryover Shortfall at any time when funds
      are
      not available to make such payment as provided in the Indenture shall not
      constitute an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)(A) the acquisition, holding and transfer of this Note will not give rise
      to
      a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Securities Administrator with an Opinion of Counsel, which Opinion
      of Counsel will not be at the expense of the Trust, the Issuer, the Seller,
      the
      Depositor, the Indenture Trustee, the Securities Administrator, or the Master
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Trust, the Issuer,
      the Seller, the Depositor, the Indenture Trustee, the Securities Administrator
      or the Master Servicer to any obligation in addition to those undertaken in
      the
      Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the
      Securities Administrator,
      one or
      more new Notes of any authorized denominations and of a like aggregate initial
      Note Balance, will be issued to the designated transferee or
      transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee, the Securities Administrator and any agent of the Issuer,
      the
      Indenture Trustee or the Securities Administrator may treat the Person in whose
      name this Note is registered as the owner of such Note (i) on the applicable
      Record Date for the purpose of making payments and interest of such Note and
      (ii) on any other date for all other purposes whatsoever, as the owner hereof,
      whether or not this Note be overdue, and neither the Issuer, the Indenture
      Trustee, the Securities Administrator nor any such agent of any of them shall
      be
      affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer, the
      Indenture Trustee and the Securities Administrator to amend or waive certain
      terms and conditions set forth in the Indenture without the consent of the
      Holders of the Notes issued thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

    Unless
      the Certificate of Authentication hereon has been executed by the Securities
      Administrator by manual signature, this Note shall not be entitled to any
      benefit under the Indenture, or be valid or obligatory for any
      purpose.

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      September ___, 2006

     

    
      	
              RENAISSANCE
                HOME EQUITY LOAN TRUST 2006-3

               

              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

               

            
	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

     

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

    
      	
              WELLS
                FARGO BANK, N.A.,

              as
                Securities Administrator

            
	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of the Note,
      shall be construed as though they were written out in full according to
      applicable laws or regulations:

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

            
	 	 	 
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

            
	 	 	 
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

            
	 	 	 
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              ____________
                Custodian

            
	 	 	 
	 	 	
              (Cust)                                     (Minor)

            
	 	 	 
	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

            
	 	 	 
	 	 	
              (State)

            

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints   
      attorney
      to transfer said Note on the books kept for registration thereof, with full
      power of substitution in the premises.

     

    Dated:
      ____________________             _________________________________

     

    Signature
      Guaranteed by _________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2 - FORM OF CLASS N NOTES

     

    FORM
      OF
      CLASS ___ NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE 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.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE OFFERED NOTES TO THE EXTENT DESCRIBED IN THE INDENTURE
      REFERRED TO HEREIN.

    

    THIS
      NOTE
      HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE,
      PLEDGE, TRANSFER OR OTHER DISPOSITION OF THIS NOTE OR ANY INTEREST HEREIN
      WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION
      WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND WHICH IS IN
      ACCORDANCE WITH THE PROVISIONS OF SECTION 4.16 OF THE INDENTURE REFERRED TO
      HEREIN. [FOR REGULATION S ONLY: NEITHER THIS NOTE NOR ANY INTEREST OR
      PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
      ENCUMBERED OR OTHERWISE DISPOSED OF WITHIN THE UNITED STATES (AS DEFINED IN
      RULES 901 THROUGH 905 OF THE SECURITIES ACT (“REGULATION S”)) OR TO, OR FOR THE
      ACCOUNT OR BENEFIT OF, A U.S. PERSON (AS DEFINED IN REGULATION S), IN THE
      ABSENCE OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
      SUBJECT TO, REGISTRATION.]

     

    NO
      TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN MAY BE MADE (A) TO ANY EMPLOYEE
      BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (“PLAN”) THAT IS SUBJECT TO THE
      EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR
      (B) TO ANY PERSON WHO IS DIRECTLY OR INDIRECTLY PURCHASING THIS NOTE OR SUCH
      INTEREST HEREIN ON BEHALF OF, AS NAMED FIDUCIARY OF, AS TRUSTEE OF, OR WITH
      ASSETS OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT, UNLESS
      SUCH PLAN OR PERSON PROVIDES THE CERTIFICATION DESCRIBED IN SECTION 4.16 OF
      THE
      INDENTURE REFERRED TO HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    RENAISSANCE
      HOME EQUITY LOAN TRUST 2006-3

    HOME
      EQUITY LOAN ASSET-BACKED NOTES, SERIES 2006-3

    CLASS
      ____

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $_____________________

            	
              NOTE
                RATE: 

            
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $_____________________

            	
              BOND
                NO. 1

            
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [         ]

            

    

    

    Renaissance
      Home Equity Loan Trust 2006-3 (the “Issuer”), a Delaware statutory trust, for
      value received, hereby promises to pay to Cede & Co. or registered assigns,
      the principal sum of ($_________________) in monthly installments on the
      twenty-fifth day of each month or, if such day is not a Business Day, the next
      succeeding Business Day (each a “Payment Date”), commencing in October 2006 and
      ending on or before the Payment Date occurring on the Final Stated Maturity
      Date
      and to pay interest on the Note Balance of this Note (this “Note”) outstanding
      from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Home Equity Loan Asset-Backed
      Notes, Series 2006-3 (the “Notes”), issued under an Indenture dated as of
      September 28, 2006 (the “Indenture”), among the Issuer, HSBC Bank USA, National
      Association, as indenture trustee (the “Indenture Trustee”, which term includes
      any successor Indenture Trustee under the Indenture) and Wells Fargo Bank,
      N.A.,
      as securities administrator (the “Securities Administrator”, which term includes
      any successor Securities Administrator under the Indenture), to which Indenture
      and all indentures supplemental thereto reference is hereby made for a statement
      of the respective rights thereunder of the Issuer, the Indenture Trustee, the
      Securities Administrator and the Holders of the Notes and the terms upon which
      the Notes are to be authenticated and delivered. All terms used in this Note
      which are defined in the Indenture shall have the meanings assigned to them
      in
      the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the Initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class N Notes as described above, and shall be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Seller on any
      Payment Date on or after the Optional Redemption Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust which constitutes security
      for
      the payment of the Notes. The assets included in the Trust will be the sole
      source of payments on the Class ____ Notes, and each Holder hereof, by its
      acceptance of this Note, agrees that (i) such Note will be limited in right
      of
      payment to amounts available from the Trust as provided in the Indenture and
      (ii) such Holder shall have no recourse to the Issuer, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Seller, the Servicer,
      the
      Master Servicer or any of their respective affiliates, or to the assets of
      any
      of the foregoing entities, except the assets of the Issuer pledged to secure
      the
      Class N Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under the Indenture.

     

    No
      transfer of this Note or any interest herein shall be made except in accordance
      with Section 4.16 of the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Securities
      Administrator at least five Business Days prior to the Record Date, any payment
      of principal or interest, other than the final installment of principal or
      interest, shall be made by wire transfer to an account in the United States
      designated by such Holder. All scheduled reductions in the Note Balance of
      a
      Note (or one or more predecessor Notes) effected by payments of principal made
      on any Payment Date shall be binding upon all Holders of this Note and of any
      note issued upon the registration of transfer thereof or in exchange therefor
      or
      in lieu thereof, whether or not such payment is noted on such Note. The final
      payment of this Note shall be payable upon presentation and surrender thereof
      on
      or after the Payment Date thereof at the office or agency of the Issuer
      maintained by it for such purpose pursuant to Section 3.02 of the
      Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      securing the Notes or otherwise shall continue to be applied to payments of
      principal of and interest on the Notes as if they had not been declared due
      and
      payable.

     

    The
      failure to pay any Class Interest Carryover Shortfall at any time when funds
      are
      not available to make such payment as provided in the Indenture shall not
      constitute an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein shall represent
      or shall be deemed to represent that either (1) it is not acquiring this Note
      with Plan Assets or (2) (A) the acquisition, holding and transfer of this Note
      will not give rise to a nonexempt prohibited transaction under Section 406
      of
      ERISA or Section 4975 of the Code and (B) this Note is rated investment grade
      or
      better and such person believes that this Note is properly treated as
      indebtedness without substantial equity features for purposes of the DOL
      Regulations, and agrees to so treat this Note. Alternatively, regardless of
      the
      rating of this Note, such person may provide the Indenture Trustee, the
      Securities Administrator and the Owner Trustee with an Opinion of Counsel,
      which
      Opinion of Counsel will not be at the expense of the Issuer, the Depositor,
      the
      Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Securities Administrator, the Servicer, the Master Servicer or any successor
      servicer which opines that the acquisition, holding and transfer of this Note
      or
      interest herein is permissible under applicable law, will not constitute or
      result in a non-exempt prohibited transaction under ERISA or Section 4975 of
      the
      Code and will not subject the Issuer, the Depositor, the Seller, any
      Underwriter, the Owner Trustee, the Indenture Trustee, the Securities
      Administrator, the Servicer, the Master Servicer or any successor servicer
      to
      any obligation in addition to those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Securities Administrator, one or more
      new
      Notes of any authorized denominations and of a like aggregate initial Note
      Balance, will be issued to the designated transferee or
      transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee, the Securities Administrator and any agent of the Issuer,
      the
      Indenture Trustee or the Securities Administrator may treat the Person in whose
      name this Note is registered as the owner of such Note (i) on the applicable
      Record Date for the purpose of making payments and interest of such Note and
      (ii) on any other date for all other purposes whatsoever, as the owner hereof,
      whether or not this Note be overdue, and neither the Issuer, the Indenture
      Trustee, the Securities Administrator nor any such agent of any of them shall
      be
      affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer, the
      Indenture Trustee and the Securities Administrator to amend or waive certain
      terms and conditions set forth in the Indenture without the consent of the
      Holders of the Notes issued thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

    Unless
      the Certificate of Authentication hereon has been executed by the Securities
      Administrator by manual signature, this Note shall not be entitled to any
      benefit under the Indenture, or be valid or obligatory for any
      purpose.

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      September ___, 2006

     

    
      	
              RENAISSANCE
                HOME EQUITY LOAN TRUST 2006-3

               

              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

               

            
	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

     

    

     

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

    
      	
              WELLS
                FARGO BANK, N.A.,

              as
                Securities Administrator

            
	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of the Note,
      shall be construed as though they were written out in full according to
      applicable laws or regulations:

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

            
	 	 	 
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

            
	 	 	 
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

            
	 	 	 
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              ____________
                Custodian

            
	 	 	 
	 	 	
              (Cust)                                     (Minor)

            
	 	 	 
	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

            
	 	 	 
	 	 	
              (State)

            

    

    

    Additional
      abbreviations may also be used though not in the above list.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints   
      attorney
      to transfer said Note on the books kept for registration thereof, with full
      power of substitution in the premises.

     

    Dated:
      ____________________             _________________________________

     

    Signature
      Guaranteed by _________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    MORTGAGE
      LOAN SCHEDULE

     

    

     

    Previously
      filed with the Securities and Exchange Commission on September 28,
      2006.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-1

     

    FORM
      OF
      INITIAL CERTIFICATION

     

    September
      ___, 2006

    

    
      	
              Renaissance
                Home Equity Loan Trust 2006-3

              c/o
                Wilmington Trust Company

              1100
                North Market Street

              Wilmington,
                Delaware 19890-0001

              Attention:
                Corporate Trust Administration

            	
              Ocwen
                Loan Servicing, LLC

              1661
                Worthington Road, 

              Suite
                100 CentrePark West

              West
                Palm Beach, FL 33409

            
	 	 
	
              Renaissance
                Mortgage Acceptance Corporation

              1000
                Woodbury Road

              Woodbury,
                New York 11797

            	
              HSBC
                Bank USA, National Association

              452
                Fifth Avenue

              New
                York, New York 10018

            

    

    

    
      	
              Re:

            	
              Indenture,
                dated as of September 28, 2006 among Renaissance Home Equity Loan
                Trust
                2006-3, as Issuer, HSBC Bank USA, National Association, as Indenture
                Trustee and Wells Fargo Bank, N.A., as Securities
                Administrator and Home Equity Loan Asset-Backed Notes, Series
                2006-3

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with the provisions of Section 2.03 of the above-referenced
      Indenture, the undersigned, as Custodian, pursuant to the Custodial Agreement,
      dated as of September 28, 2006, by and among Wells Fargo Bank, N.A., as
      Custodian, HSBC Bank USA, National Association, as Indenture Trustee, the Seller
      and the Depositor hereby certifies 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 on the attachment hereto), it has reviewed
      the documents delivered to it pursuant to Section 2.03 of the Indenture and
      has
      determined that (i) all documents required to be delivered to it pursuant
      paragraphs (i) - (v) and (vii) of Section 2.1(b) of the Mortgage Loan Sale
      and
      Contribution Agreement are in its possession, (ii) such documents have been
      reviewed by it and appear regular on their face and have not been mutilated,
      damaged, torn or otherwise physically altered and relate to such Mortgage Loans,
      (iii) based on its examination and only as to the foregoing documents, the
      information set forth in the Mortgage Loan Schedule as to the information set
      forth in clauses (ii) and (iii) of the definition “Mortgage Loan Schedule” set
      forth in Annex A to the Indenture accurately reflects the information set forth
      in the Indenture Trustee’s Mortgage File. The Custodian has made no independent
      examination of such documents beyond the review specifically required in the
      above-referenced Indenture. The Custodian makes no representations as to: (i)
      the validity, legality, enforceability or genuineness of any such documents
      contained in each or any of the Mortgage Loans identified on the Mortgage Loan
      Schedule or (ii) the collectability, insurability, effectiveness or suitability
      of any such Mortgage Loan.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Indenture.

     

    
      	
              WELLS
                FARGO BANK, N.A.,

              as
                Custodian

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-2

     

    FORM
      OF
      FINAL CERTIFICATION

     

                                                [DATE]

    

    
      	
              Renaissance
                Home Equity Loan Trust 2006-3

              c/o
                Wilmington Trust Company

              1100
                North Market Street

              Wilmington,
                Delaware 19890-0001

              Attention:
                Corporate Trust Administration

            	
              Ocwen
                Loan Servicing, LLC

              1661
                Worthington Road, 

              Suite
                100 CentrePark West

              West
                Palm Beach, FL 33409

            
	 	 
	
              Renaissance
                Mortgage Acceptance Corporation

              1000
                Woodbury Road

              Woodbury,
                New York 11797

            	
              HSBC
                Bank USA, National Association

              452
                Fifth Avenue

              New
                York, New York 10018

            

    

    

    
      	
              Re:

            	
              Indenture,
                dated as of September 28, 2006 among Renaissance Home Equity Loan
                Trust
                2006-3, as Issuer, HSBC Bank USA, National Association, as Indenture
                Trustee and Wells Fargo Bank, N.A., as Securities
                Administrator and Home Equity Loan Asset-Backed Notes, Series
                2006-3

            

    

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.03 of the above-captioned Indenture, the
      undersigned, as Custodian, pursuant to the Custodial Agreement, dated as of
      September 1, 2006, by and among Wells Fargo Bank, N.A., as Custodian, HSBC
      Bank
      USA, National Association, as Indenture Trustee, the Seller and the Depositor
      hereby certifies that, except
      as
      noted on the attachment hereto, as to each Mortgage Loan listed in the Mortgage
      Loan Schedule (other than any Mortgage Loan paid in full or listed on the
      attachment hereto) the Custodian has reviewed the documents delivered to it
      pursuant to Sections 2.1(b) (other than items listed in Section 2.1(b)(vi))
      of
      the Mortgage Loan Sale and Contribution Agreement and has determined that (i)
      all such documents are in its possession, (ii) such documents have been reviewed
      by it and have not been mutilated, damaged, torn or otherwise physically altered
      and relate to such Mortgage Loan, (iii) based on its examination, and only
      as to
      the foregoing documents, the information set forth in clauses (ii) and (iii)
      of
      the Mortgage Loan Schedule respecting such Mortgage Loan is
      correct.

     

    The
      Custodian has made no independent examination of such documents beyond the
      review specifically required in the above-referenced Indenture. The Custodian
      makes no representations as to: (i) the validity, legality, enforceability
      or
      genuineness of any such documents contained in each or any of the Mortgage
      Loans
      identified on the Mortgage Loan Schedule, or (ii) the collectability,
      insurability, effectiveness or suitability of any such Mortgage
      Loan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Servicing Agreement.

     

    
      	
              WELLS
                FARGO BANK, N.A.,

              as
                Custodian

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      D

     

    INTEREST
      RATE SWAP AGREEMENT

     

     

    
      
        	 	
                
                  

                

              
	 	 
	
                DATE:

              	
                28th
                  September 2006 

              
	 	 
	
                TO:

              	
                Renaissance
                  Home Equity Loan Trust 2006-3

              
	 	
                c/o
                  Wilmington Trust Company

              
	 	
                1100
                  North Market St.

              
	 	
                Wilmington,
                  DE 19890 - 0001

              
	
                ATTENTION:

              	
                Corporate
                  Trust Administration

              
	 	 
	
                With
                  copy to:

              	
                Wells
                  Fargo Bank, N.A.

              
	 	
                9062
                  Old Annapolis Road

              
	 	
                Columbia,
                  MD 21045

              
	 	
                Attention:
                  Client Manager - Renaissance 06-3

              
	 	
                Tel:
                  410-884-2000

              
	 	
                Fax:
                  410-715-2380

              
	 	 
	
                FROM:

              	
                Bank
                  of America, N.A.

              
	 	
                Sears
                  Tower

              
	 	
                233
                  South Wacker Drive, Suite 2800

              
	 	
                Chicago,
                  IL 60606

              
	 	 
	
                OUR
                  REFERENCE NO:

              	
                13986007

              
	 	 
	
                INTERNAL
                  TRACKING NOS.:

              	
                13986007

              

      

       

    

    The
      purpose of this letter agreement ("Agreement") is to confirm the terms and
      conditions of the current Transaction entered into on the Trade Date specified
      below (the "Transaction") between Bank of America, N.A. ("Party A") and
Renaissance
      Home Equity Loan Trust 2006-3
      (“Party
      B”). This Agreement, which evidences a complete and binding agreement between
      you and us to enter into the Transaction on the terms set forth below,
      constitutes a "Confirmation" as referred to in the "Master Agreement" (as
      defined below), as well as a “Schedule” as referred to in the Master
      Agreement.

    

    1.       
       This
      Agreement is subject to the 2000
      ISDA Definitions (the
      “Definitions”), as published by the International Swaps and Derivatives
      Association, Inc. (“ISDA”). You and we have agreed to enter into this Agreement
      in lieu of negotiating a Schedule to the 1992 ISDA Master Agreement
      (Multicurrency—Cross Border) form (the "Master Agreement") but, rather, a Master
      Agreement shall be deemed to have been executed by you and us on the date we
      entered into the Transaction. Terms capitalized but not defined herein
except
      in
      the Definitions
      shall
      have the respective meanings attributed to them in the Indenture, dated as
      of
      September 1st,
      2006,
      among Renaissance
      Home Equity Loan Trust 2006-3 as
      Issuer
      (the “Issuer”), HSBC Bank USA, National Association, as Indenture Trustee (the
“Indenture Trustee”) and Wells Fargo Bank, N.A., as Securities Administrator
      (the “Securities Administrator”) (the “Indenture”). In the event of any
      inconsistency between the provisions of this Agreement and the Definitions
      or
      the Master Agreement, this Agreement shall prevail for purposes of the
      Transaction. Each reference to a “Section” (unless specifically referencing
      another agreement) will be construed as a reference to a Section of the Master
      Agreement.

    

    2.      
       The
      terms
      of the particular Transaction to which this Confirmation relates are as
      follows:

    

      
        	 	
                Type
                  of Transaction:

              	
                Interest
                  Rate Swap

              
	 	 	 	 
	 	
                Notional
                  Amount:

              	
                With
                  respect to any Calculation Period, the amount set forth for such
                  period on
                  Schedule I attached hereto.

              
	 	 	 	 
	 	
                Trade
                  Date:

              	
                8th
                  September 2006

              
	 	 	 	 
	 	
                Effective
                  Date:

              	
                25th
                  October 2006

              
	 	 	 	 
	 	
                Termination
                  Date:

              	
                25th
                  October 2009, subject to adjustment in accordance with the Modified
                  Following Business Day Convention

              
	 	 	 	 
	 	
                Fixed
                  Amount:

              	 
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer:

              	
                Party
                  B

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer

              	 
	 	 	
                Period
                  End Dates:

              	
                The
                  25th
                  of
                  each Month, commencing 25th
                  November 2006 and ending on the Termination Date, subject to adjustment
                  in
                  accordance with the Modified Following Business Day
                  Convention.

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Payer

              	 
	 	 	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. Each Fixed Rate Payer Payment Date
                  shall be
                  one Business Day prior to the related Fixed Rate Payer Period End
                  Date.

              
	 	 	 	 
	 	 	
                Fixed
                  Rate:

              	
                5.17750
                  per cent

              
	 	 	 	 
	 	 	
                Fixed
                  Rate Day 

              	 
	 	 	
                Count
                  Fraction:

              	
                30/360

              
	 	 	 	 
	 	
                Floating
                  Amounts:

              	 
	 	 	 	 
	 	 	
                Floating
                  Rate Payer:

              	
                Party
                  A

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer

              	 
	 	 	
                Period
                  End Dates:

              	
                The
                  25th
                  of
                  each Month, commencing 25th
                  November 2006 and ending on the Termination Date, subject to adjustment
                  in
                  accordance with the Modified Following Business Day
                  Convention.

              
	 	 	 	 
	 	 	
                Floating
                  Rate Payer 

              	 
	 	 	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. Each Floating Rate Payer Payment Date
                  shall
                  be one Business Day prior to the related Floating Rate Payer Period
                  End
                  Date.

              
	 	 	 	 
	 	 	
                Floating
                  Rate for 

              	 
	 	 	
                Initial
                  Calculation 

              	 
	 	 	
                Period:

              	
                to
                  be determined

              
	 	 	 	 
	 	 	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 	 	 
	 	 	
                Designated
                  Maturity:

              	
                1
                  Month

              
	 	 	 	 
	 	 	
                Spread:

              	
                None

              
	 	 	 	 
	 	 	
                Floating
                  Rate Day 

              	 
	 	 	
                Count
                  Fraction:

              	
                Actual/360

              
	 	 	 	 
	 	 	
                Reset
                  Dates:

              	
                The
                  first day of each Calculation Period

              
	 	 	 	 
	 	 	
                Compounding:

              	
                Inapplicable

              
	 	 	 	 
	 	 	 	 
	 	
                Business
                  Days:

              	
                New
                  York

              
	 	 	 	 
	 	 	 	 
	 	
                Calculation
                  Agent:

              	
                Party
                  A

              

      

       

    

    
      
        3.       
          Provisions
          Deemed Incorporated in a Schedule to the Master
          Agreement:

      

    

    

    1)  The
      parties agree that subparagraph (ii) of Section 2(c) of the Master Agreement
      will apply to any Transaction.

    

    2) 
       Termination
      Provisions.
      For
      purposes of the Master Agreement:

    

    (a) “Specified
      Entity” is not applicable to Party A or Party B for any purpose. 

    

    (b) “Breach
      of Agreement” provision of Section 5(a)(ii) and will not apply to Party A or
      Party B.

    

    (c) “Credit
      Support Default” provisions of Section 5(a)(iii) will apply to Party A (if Party
      A posts collateral or obtains a guarantee or other contingent agreement pursuant
      to paragraph 14 below) will not apply to Party B.

    

    (d) “Misrepresentation”
      provisions of Section 5(a)(iv) will not apply to Party A or Party
      B.

    

    (e)
       "Specified
      Transaction" is not applicable to Party A or Party B for any purpose, and,
      accordingly, Section 5(a)(v) shall not apply to Party A or Party B.

    

    (f) The
      "Cross Default" provisions of Section 5(a)(vi) will not apply to Party A or
      to
      Party B. 

    

    (g) “Bankruptcy”
      provision of Section 5(a)(vii)(2) will not apply to Party B.

    

    (h) “Merger
      without Assumption” provision of Section 5(a)(viii) will not apply to Party
      B.

    

    (i) The
      “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply to
      Party A or Party B.

     

    (j) The
      “Automatic Early Termination” provision of Section 6(a) will not apply to Party
      A or to Party B.

    

    (k) Payments
      on Early Termination. For the purpose of Section 6(e):

    

    (i) Market
      Quotation will apply.

    

    (ii) the
      Second Method will apply. 

    

    (l) “Termination
      Currency” means United States Dollars. 

    

    
      
        (m) 
          Gross
          Up.
          The provisions of Section 2(d)(i)(4) and 2(d)(ii) shall not apply to Party
          B and
          Party B shall not be required to pay any additional amounts referred to
          therein.

      

    

     

    3)
      Tax
      Representations. 

    

    
      	 	
              (a)
                Payer Representations. For the purpose of Section 3(e), each of Party
                A
                and Party B will make the following
                representations:

            

    

     

    
      	 	
              It
                is not required by any applicable law, as modified by the practice
                of any
                relevant governmental revenue authority, of any Relevant Jurisdiction
                to
                make any deduction or withholding for or on account of any Tax from
                any
                payment (other than interest under Section 2(e), 6(d)(ii) or 6(e))
                to be
                made by it to the other party under this Agreement. In making this
                representation, it may rely on: 

            

    

     

    (i) the
      accuracy of any representations made by the other party pursuant to Section
      3(f);

    

    (ii) the
      satisfaction of the agreement contained in Section 4(a)(iii) and the accuracy
      and effectiveness of any document provided by the other party pursuant to
      Section 4(a)(iii); and

    

    
      	 	 	
              (iii)
                the satisfaction of the agreement of the other party contained in
                Section
                4(d), provided that it shall not be a breach of this representation
                where
                reliance is placed on clause (ii) and the other party does not deliver
                a
                form or document under Section 4(a)(iii) by reason of material prejudice
                to its legal or commercial position.

            

    

    

    
      	 	
              (b)
                Payee Representations. For the purpose of Section 3(f), each of Party
                A
                and Party B make the following representations.

            

    

     

    The
      following representation will apply to Party A: 

    

    
      	 	 	
              Party
                A is a national banking association formed under the laws of the
                United
                States of America. Party A is a United States person for U.S. Federal
                Income Tax purposes and its U.S. taxpayer identification number is
                94-1687665. 

            

    

    

    The
      following representation will apply to Party B: 

    

    
      	 	 	
              Party
                B is a United States person for U.S. Federal Income Tax
                purposes.

            

    

    

    4)
      The
      Master Agreement is hereby amended as follows:

    

    The
      word
“third” shall be replaced by the word “second” in the third line of Section
      5(a)(i).

    

    5)
      Documents
      to be Delivered.
      For the
      purpose of Section 4(a):

    

    (1) Tax
      forms, documents, or certificates to be delivered are:

    

    
      	
              Party
                required to deliver document

            	
              Form/Document/

              Certificate

            	
              Date
                by which to

              be
                delivered

            
	 	 	 
	
              Party
                A and

              Party
                B

            	
              Any
                document required or reasonably requested to allow the other party
                to make
                payments under this Agreement without any deduction or withholding
                for or
                on the account of any Tax or with such deduction or withholding at
                a
                reduced rate

            	
              Promptly
                after the earlier of (i) reasonable demand by either party or (ii)
                learning that such form or document is
                required

            

    

    

    (2) Other
      documents to be delivered are:

    

    
      	
              Party
                required to deliver document

            	
              Form/Document/

              Certificate

            	
              Date
                by which to

              be
                delivered

            	
              Covered
                by Section 3(d) Representation

            
	 	 	 	 
	
              Party
                A and

              Party
                B

            	
              Any
                documents required by the receiving party to evidence the authority
                of the
                delivering party or its Credit Support Provider, if any, for it to
                execute
                and deliver this Agreement, any Confirmation , and any Credit Support
                Documents to which it is a party, and to evidence the authority of
                the
                delivering party or its Credit Support Provider to perform its obligations
                under this Agreement, such Confirmation and/or Credit Support Document,
                as
                the case may be

            	
              Upon
                the execution and delivery of this Agreement and such
                Confirmation

            	
              Yes

            
	 	 	 	 
	
              Party
                A and

              Party
                B

            	
              A
                certificate of an authorized officer of the party, as to the incumbency
                and authority of the respective officers of the party signing this
                Agreement, any relevant Credit Support Document, or any Confirmation,
                as
                the case may be

            	
              Upon
                the execution and delivery of this Agreement and such
                Confirmation

            	
              Yes

            

    

    

    
      	
              Party
                A

            	
              Annual
                Report of Bank of America Corporation containing audited, consolidated
                financial statements certified by independent certified public accountants
                and prepared in accordance with generally accepted accounting principles
                in the country in which such party is organized.

            	
              To
                be made available on www.bankofamerica.com/investor/
                as
                soon as available and in any event within 90 days after the end of
                each
                fiscal year of Party A.

            	
              Yes

            
	
              Party
                A and Party B

            	
              Legal
                opinion from counsel for such party.

            	
              Upon
                the execution and delivery of this Agreement and such
                Confirmation

            	
              No

            
	
              Party
                B

            	
              A
                duly executed copy of the Indenture.

            	
              Upon
                the execution and receipt of such Indenture.

            	
              No

            
	
              Party
                B

            	
              Copy
                of each monthly servicer report.

            	
              Upon
                availability

            	
              No

            

    

    

    6)
      Miscellaneous.
      Miscellaneous

    

    
      	
              (a)

            	
              Address
                for Notices: For the purposes of Section 12(a) of this
                Agreement:

            

    

    

    Address
      for notices or communications to Party A:

    

    Bank
      of
      America, N.A.

    Sears
      Tower

    233
      South
      Wacker Drive, Suite 2800

    Chicago,
      IL 60606

    Attention:
      Swap Operations

    Telephone
      No.: 312-234-2732

    Facsimile
      No.: 866-255-1444

    

    with
      a
      copy to:

    

    Bank
      of
      America, N.A.

    100
      N.
      Tryon St.

    NC1-007-13-01

    Charlotte,
      North Carolina 28255

    Attention:
      Global Markets Trading Agreements 

    Facsimile
      No.: 704-386-4113

    

    (For
      all
      purposes)

    

    Address
      for notices or communications to Party B:

    

    Renaissance
      Home Equity Loan Trust 2006-3

    c/o
      Wilmington Trust Company

    1100
      North Market St.

    Wilmington,
      DE 19890 - 0001

    Attention:
      Corporate Trust Administration

    

    With
      copy
      to: 

    

    Wells
      Fargo Bank, N.A.

    9062
      Old
      Annapolis Road

    Columbia,
      MD 21045

    Attention:
      Client Manager - Renaissance 06-3

    Tel:
      410-884-2000

    Fax:
      410-715-2380

    

    (For
      all
      purposes)

    

    (b)    
           Process
      Agent. For the purpose of Section 13(c):

    

    Party
      A
      appoints as its 

    Process
      Agent:   Not
      Applicable

    

    The
      Party
      B appoints as its 

    Process
      Agent:  Not
      Applicable

    

    (c)         
       Offices.
      The provisions of Section 10(a) will apply to this Agreement.

    

    
      	
              (d)

            	
              Multibranch
                Party. For the purpose of
                Section 10(c):

            

    

    

    Party
      A
      is a Multibranch Party and may act through its Charlotte, North Carolina,
      Chicago, Illinois, San Francisco, California, New York, New York, Boston,
      Massachusetts, or such other Office as may be agreed to by the parties in
      connection with a Transaction.

    

    
      	 	
              Party
                B is not a Multibranch Party.

            

    

    

    (e)         
       Credit
      Support Document.  Not
      applicable for Party A or, if Party A posts collateral pursuant to a Credit
      Support Annex or obtains a guarantee or other contingent agreement pursuant
      to
      paragraph 14 below, such Credit Support Annex, guarantee, or other contingent
      agreement. The Indenture for Party B.

    

    
      	
              (f)

            	
              Credit
                Support Provider.

            

    

    

    Party
      A:
 Not
      Applicable or, if Party A obtains a guarantee or other provider of credit
      support pursuant to paragraph 14 below, such guarantee or other provider of
      credit support

    

    
      	 	
              Party
                B: 

            	
              Not
                Applicable

            

    

    

    (g)        
       Governing
      Law. The parties to this Agreement hereby agree that the law of the State of
      New
      York shall govern their rights and duties in whole, without regard to the
      conflict of law provisions thereof other than New York General Obligations
      Law
      Sections 5-1401 and 5-1402. 

    

    (h)        
       Severability. If
      any
      term, provision, covenant, or condition of this Agreement, or the application
      thereof to any party or circumstance, shall be held to be invalid or
      unenforceable (in whole or in part) for any reason, the remaining terms,
      provisions, covenants, and conditions hereof shall continue in full force and
      effect as if this Agreement had been executed with the invalid or unenforceable
      portion eliminated, so long as this Agreement as so modified continues to
      express, without material change, the original intentions of the parties as
      to
      the subject matter of this Agreement and the deletion of such portion of this
      Agreement will not substantially impair the respective benefits or expectations
      of the parties. 

    

    The
      parties shall endeavor to engage in good faith negotiations to replace any
      invalid or unenforceable term, provision, covenant or condition with a valid
      or
      enforceable term, provision, covenant or condition, the economic effect of
      which
      comes as close as possible to that of the invalid or unenforceable term,
      provision, covenant or condition. 

    

    (i)           Consent
      to Recording. Each party hereto consents to the monitoring or recording, at
      any
      time and from time to time, by the other party of any and all communications
      between officers or employees of the parties, and waives any further notice
      of
      such monitoring or recording.

    

    (j)         
       Waiver
      of
      Jury Trial. Each
      party waives any right it may have to a trial by jury in respect of any
      Proceedings relating to this Agreement or any Credit Support Document.

    

    (k)          Set-Off.
      The provisions for Set-off set forth in Section 6(e) of the Master Agreement
      shall not apply for purposes of this Transaction. Notwithstanding any provision
      of this Agreement or any other existing or future agreement, each party
      irrevocably waives any and all rights it may have to set off, net, recoup or
      otherwise withhold or suspend or condition payment or performance of any
      obligation between it and the other party hereunder against any obligation
      between it and the other party under any other agreements. 

     

    (l)        
       Additional
      Definitional Provisions. 

     

    As
      used
      in this Agreement, the following terms shall have the meanings set forth below,
      unless the context clearly requires otherwise: 

     

    “Fitch”
      means Fitch Ratings, Inc., or any successor.

     

    “Moody’s”
      means Moody’s Investors Service, Inc., or any successor.

    

    
      	 	
              “S&P”
                means Standard & Poor's, a division of The McGraw-Hill Companies,
                Inc., or any successor.

            

    

     

    (m)     
       Owner
      Trustee Liability Limitations.
      It is
      expressly understood and agreed by the parties hereto that (a) this Agreement
      is
      executed and delivered by Wilmington Trust Company (“WTC”), not individually or
      personally but solely as trustee on behalf of Party B, (b) each of the
      representations, undertakings and agreements herein made on the part of Party
      B
      is made and intended not as personal representations, undertakings and
      agreements by WTC but is made and intended for the purpose of binding only
      Party
      B, (c) nothing herein contained shall be construed as creating any liability
      on
      WTC, individually or personally, to perform any covenant either expressed or
      implied contained herein, all such liability, if any, being expressly waived
      by
      the parties hereto and by any Person claiming by, through or under the parties
      hereto, (d) under no circumstances shall WTC be personally liable for the
      payment of any indebtedness or expenses of Party B or be liable for the breach
      or failure of any obligation, representation, warranty or covenant made or
      undertaken by Party B under this Agreement or any other related
      documents.

    

    7)
      “Affiliate”: Party A and Party B shall be deemed to have no Affiliates for
      purposes of this Agreement, including for purposes of Section
      6(b)(ii).

    

    8)
      Payment Instructions. Party A hereby agrees that, unless notified in writing
      by
      Party B of other payment instructions, any and all amounts payable by Party
      A to
      Party B under this Agreement shall be paid to the Indenture Trustee at the
      account specified in Section 5.

    

    9)
      Section 3 of the Master Agreement is hereby amended by adding at the end thereof
      the following subsection (g): 

    

    “(g)       
       Relationship
      Between Parties.
      

    

    
      	 	 	
              Each
                party represents to the other party on each date when it enters into
                a
                Transaction that:--

            

    

    

    (1)
      Nonreliance.
      (i) It
      is not relying on any statement or representation of the other party regarding
      the Transaction (whether written or oral), other than the representations
      expressly made in this Agreement or the Confirmation in respect of that
      Transaction and (ii) it has consulted with its own legal, regulatory, tax,
      business, investment, financial and accounting advisors to the extent it has
      deemed necessary, and it has made its own investment, hedging and trading
      decisions based upon its own judgment and upon any advice from such advisors
      as
      it has deemed necessary and not upon any view expressed by the other
      party.

     

    (2)
      Evaluation
      and Understanding.
      

    

    (i)
      It
      has the capacity to evaluate (internally or through independent professional
      advice) the Transaction and has made its own decision subject to Section 6(n)
      of
      this Agreement to enter into the Transaction; and

    

    (ii)
      It
      understands the terms, conditions and risks of the Transaction and is willing
      and able to accept those terms and conditions and to assume those risks,
      financially and otherwise. 

    

    (3)
      Purpose.
      It is
      entering into the Transaction for the purposes of managing its borrowings or
      investments, hedging its underlying assets or liabilities or in connection
      with
      a line of business. 

    

    (4)
      Status
      of Parties.
      The
      other party is not acting as an agent, fiduciary or advisor for it in respect
      of
      the Transaction.

    

    (5)
      Eligible
      Contract Participant.
      It
      constitutes an “eligible contract participant” as such term is defined in
      Section 1(a)12 of the Commodity Exchange Act, as amended.”

    

    10)
      Non-Recourse. Notwithstanding any provision herein or in the Master Agreement
      to
      the contrary, the obligations of Party B hereunder are limited recourse
      obligations of Party B, payable solely from Collateral and the proceeds thereof,
      in accordance with the terms of the Indenture. In the event that Collateral
      and
      proceeds thereof should be insufficient to satisfy all claims outstanding and
      following the realization of Collateral and the proceeds thereof, any claims
      against or obligations of Party B under the Master Agreement or any other
      confirmation thereunder still outstanding shall be extinguished and thereafter
      not revive.

    

    11) Transfer,
      Amendment and Assignment. No transfer, amendment, waiver, supplement, assignment
      or other modification of this Transaction shall be permitted by either party
      unless each of Fitch, Moody’s and S&P have been provided prior notice of the
      same and confirms in writing (including by facsimile transmission) that it
      will
      not downgrade, withdraw or otherwise modify its then-current ratings of the
      Notes. 

    

    12) Non-Petition.
      Party A shall not institute against, or cause any other person to institute
      against, or join any other person in instituting against Party B in any
      bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
      or other proceedings under any federal or state bankruptcy or similar law for
      a
      period of one year and one day (or, if longer, the applicable preference period)
      following payment in full of the Notes. Nothing herein shall prevent Party
      A
      from participating in any such proceeding(s) once commenced. This provision
      will
      survive the termination of this Agreement.

     

    13)
      Additional Termination Events. Additional Termination Events will apply:

    

    (a)
      If a
      Rating Agency Downgrade has occurred and Party A has not complied with paragraph
      14 below, then an Additional Termination Event shall have occurred with respect
      to Party A and Party A shall be the sole Affected Party with respect to such
      Additional Termination Event. 

    

    (b)
      If,
      at any time, the Seller purchases the Mortgage Loans and REO Properties pursuant
      to Section 8.07 of the Indenture, then an Additional Termination Event shall
      have occurred and Party B shall be the sole Affected Party with respect thereto;
      provided, however, that notwithstanding Section 6(b)(iv), both Party A and
      Party
      B shall have the right to designate an Early Termination Date (such early
      Termination Date shall not be earlier than the final distribution date) in
      respect of this Additional Termination Event. 

    

    (c)
      If,
      upon the occurrence of a Swap Disclosure Event (as defined in paragraph 15
      below) Party A has not, within 10 Business Days after such Swap Disclosure
      Event
      complied with any of the provisions set forth in clause (iii) of paragraph
      15
      below, then an Additional Termination Event shall have occurred with respect
      to
      Party A and Party A shall be the sole Affected Party with respect to such
      Additional Termination Event.

    

    (d)
      An
      amendment and/or supplement to the Indenture (or any other Basic Document)
      is
      made without the prior written consent of Party A (such consent not to be
      unreasonably withheld), if such amendment and/or supplement would: (a)
      materially adversely affect any of Party A's rights or obligations hereunder;
      or
      (b) materially adversely affect the obligations of, or materially adversely
      impact the ability of, Party B to fully perform any of Party B's obligations
      hereunder. For purposes of Section 6 of the Master Agreement, Party B shall
      be
      the sole Affected Party.

    

    (e)
      The
      delivery of notice of any redemption or other prepayment in whole, but not
      in
      part, of the Notes in connection with any redemption pursuant to the Indenture.
      For purposes of Section 6 of the Master Agreement, Party B shall be the sole
      Affected Party, and the Early Termination Date shall occur not earlier than
      the
      date of redemption.

     

    14)
      Rating Agency Downgrade. In the event that Party A’s long-term unsecured and
      unsubordinated debt rating is reduced below “A+” by S&P or Party A’s
      short-term unsecured and unsubordinated debt rating is reduced below “A-1” by
      S&P or its long-term unsecured and unsubordinated debt rating is withdrawn
      or reduced below “A1” by Moody’s or its short-term unsecured and unsubordinated
      debt rating is reduced below “P1” by Moody’s, or in the event that Party A does
      not have a short-term rating from Moody’s, its long-term unsecured and
      unsubordinated debt rating is withdrawn or reduced below “Aa3” by Moody’s (and
      together with S&P and Fitch, the “Swap Rating Agencies”, and such rating
      thresholds, “Approved Rating Thresholds”), then within 30 days after such rating
      withdrawal or downgrade (unless, within 30 days after such withdrawal or
      downgrade, each such Swap Rating Agency, as applicable, has reconfirmed the
      rating of  Home
      Equity Loan Asset-Backed Notes, Series 2006-3 (the “Notes”), which was in effect
      immediately prior to such withdrawal or downgrade), Party A shall, at its own
      expense, subject to the Rating Agency Condition, either (i) seek another entity
      to replace Party A as party to this Agreement that meets or exceeds the Approved
      Rating Thresholds on terms substantially similar to this Agreement, (ii) obtain
      a guaranty of, or a contingent agreement of another person with the Approved
      Rating Thresholds, to honor, Party A’s obligations under this Agreement, or
      (iii) post collateral which will be sufficient to restore the immediately prior
      ratings of the Notes. Party A’s failure to do any of the foregoing shall, at
      Party B’s option, constitute an Additional Termination Event with Party A as the
      Affected Party. In the event that Party A’s long-term unsecured and
      unsubordinated debt rating is withdrawn or reduced below “BBB-” by S&P, then
      within 10 Business Days after such rating withdrawal or downgrade, Party A
      shall, subject to the Rating Agency Condition and at its own expense, either
      (i)
      secure another entity to replace Party A as party to this Agreement that meets
      or exceeds the Approved Rating Thresholds on terms substantially similar to
      this
      Agreement or (ii) obtain a guaranty of, or a contingent agreement of another
      person with the Approved Rating Thresholds, to honor, Party A’s obligations
      under this Agreement. For purposes of this provision, “Rating Agency Condition”
means, with respect to any particular proposed act or omission to act hereunder
      that the party acting or failing to act must consult with each of the Swap
      Rating Agencies then providing a rating of the Notes and receive from each
      of
      the Swap Rating Agencies a prior written confirmation that the proposed action
      or inaction would not cause a downgrade or withdrawal of the then-current rating
      of the Notes.

    

    15)
      Compliance with Regulation AB. 

    

    (i)
      Party
      A
agrees
      and acknowledges that Renaissance
      Mortgage Acceptance Corp. (the
      “Depositor”) may be required under Regulation AB, as defined in the Indenture,
      to disclose certain financial information regarding Party A or its group of
      affiliated entities, if applicable, depending on the aggregate “significance
      percentage” of this Agreement and any other derivative contracts between Party A
      or its group of affiliated entities, if applicable, and Party B, as calculated
      from time to time in accordance with Item 1115 of Regulation AB. 

    

    (ii)
      It
      shall be a swap disclosure event (“Swap Disclosure Event”) if, on any Business
      Day after the date hereof for so long as the Issuing Entity is required to
      file
      periodic reports under the Exchange Act with respect to the Certificates, Party
      B or the Depositor requests in writing from Party A the applicable financial
      information described in Item 1115(b) of Regulation AB (such request to be
      based
      on a reasonable determination by the Depositor, based on "significance
      estimates" made in substantially the same manner as that used in the Sponsor's
      internal risk management process in respect of similar instruments and furnished
      by the Sponsor to the Depositor, or if the Sponsor does not furnish such
      significance estimates to the Depositor, based on a good faith determination
      of
      such significance estimates by the Depositor in a manner that it deems
      reasonable) (the “Swap Financial Disclosure”).

    

    (iii)
      Upon the occurrence of a Swap Disclosure Event, Party A, at its own expense,
      shall either (1)(a) either (i) provide to the Depositor the current Swap
      Financial Disclosure in an EDGAR-compatible format (for example, such
      information may be provided in Microsoft Word® or Microsoft Excel® format but
      not in .pdf format) or (ii) provide written consent to the Depositor to
      incorporation by reference of such current Swap Financial Disclosure that are
      filed with the Securities and Exchange Commission in the Exchange Act Reports
      of
      the Depositor, (b) if applicable, cause its outside accounting firm to provide
      its consent to filing or incorporation by reference in the Exchange Act Reports
      of the Depositor of such accounting firm’s report relating to their audits of
      such current Swap Financial Disclosure, and (c) provide to the Depositor any
      updated Swap Financial Disclosure with respect to Party A or any entity that
      consolidates Party A within five days of the release of any such updated Swap
      Financial Disclosure; (2) secure another entity to replace Party A as party
      to
      this Agreement on terms substantially similar to this Agreement, which entity
      (or a guarantor therefor) meets or exceeds the Approved Rating Thresholds and
      which entity complies with the requirements of Item 1115 of Regulation AB and
      clause (1) above; (3) obtain a guaranty of Party A’s obligations under this
      Agreement from an affiliate of Party A that complies with the financial
      information disclosure requirements of Item 1115 of Regulation AB, and cause
      such affiliate to provide Swap Financial Disclosure and any future Swap
      Financial Disclosure and other information pursuant to clause (1), such that
      disclosure provided in respect of such affiliate will satisfy any disclosure
      requirements applicable to the Swap Provider; or (4) transfer Eligible
      Collateral to Party B's Custodian in an amount which is sufficient, as
      reasonably determined in good faith by the Depositor, to reduce the aggregate
      significance percentage below 10% (or, so long as Party A is able to provide
      the
      Swap Financial Disclosure required pursuant to Item 1115(b)(1) of Regulation
      AB,
      below 20%, in the event Party A is requested to provide the Swap Financial
      Disclosure required pursuant to Item 1115(b)(2) of Regulation AB).

    

    (iv)
      Party A agrees that, in the event that Party A provides Swap Financial
      Disclosure to the Depositor in accordance with clause (iii)(1) above or causes
      its affiliate to provide Swap Financial Disclosure to the Depositor in
      accordance with clause (iii)(3) above, it will indemnify and hold harmless
      the
      Depositor, its respective directors or officers and any person controlling
      the
      Depositor, from and against any and all losses, claims, damages and liabilities
      caused by any untrue statement or alleged untrue statement of a material fact
      contained in such Swap Financial Disclosure or caused by any omission or alleged
      omission to state in such Swap Financial Disclosure a material fact required
      to
      be stated therein or necessary to make the statements therein, in light of
      the
      circumstances under which they were made, not misleading.

    

    (v)
      Third
      Party Beneficiary. Depositor shall be an express third party beneficiary of
      this
      Agreement as if a party hereto to the extent of Depositor’s rights explicitly
      specified herein.

    

    16)
      For
      purposes of Section 7, Party A hereby consents to the Permitted Security
      Interest.

    

    “Permitted
      Security Interest” means the collateral assignment by Party B of the Swap
      Collateral to the Indenture Trustee pursuant to the Indenture, and the granting
      to the Indenture Trustee of a security interest in the Swap Collateral pursuant
      to the Indenture.

    

    “Swap
      Collateral” means all right, title and interest of Party B in this Agreement,
      each Transaction hereunder, and all present and future amounts payable by Party
      A to Party B under or in connection with the Agreement or any Transaction
      governed by the Agreement, whether or not evidenced by a Confirmation,
      including, without limitation, any transfer or termination of any such
      Transaction. 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      	5.	
              Account
                Details and 

              Settlement
                Information:

            	 	
              Payments
                to Party A:

            
	 	 	 	
              
                 

              

            
	 	 	 	
              As
                advised under separate cover with reference
                to this Confirmation, each party shall
                provide appropriate payment instructions to the other party in writing
                and
                such instructions shall be deemed to be incorporated into this
                agreement.

            
	 	 	 	 
	 	 	 	Payments to Party B:
	 	 	 	 
	 	 	 	
              Wells
                Fargo Bank, N.A.

              ABA
                # 121000248

              Account
                Name: SAS Clearing

              Account
                # 3970771416

              FFC:
                50950900

            

    

     

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

    

    

    USA
      PATRIOT Act Notice. Party A hereby notifies Party B that pursuant to the
      requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
      law October 26, 2001)) (the "Act"), it is required to obtain, verify and record
      information that identifies Party B, which information includes the name and
      address of Party B and other information that will allow Party A to identify
      Party B in accordance with the Act.

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    We
      are
      very pleased to have executed this Transaction with you and we look forward
      to
      completing other transactions with you in the near future.

    

    Very
      truly yours,

    

    BANK
      OF
      AMERICA, N.A.

    

    By: _______________________________ 

    Name:   

    Title:  

    
 

    Party
      B,
      acting through its duly authorized signatory, hereby agrees to, accepts and
      confirms the terms of the foregoing as of the Trade Date.

    

    Renaissance
      Home Equity Loan Trust 2006-3

    By:
      Wilmington Trust Company not in its individual capacity but solely as Owner
      Trustee

    

     

    By: _______________________________
      

    Name: 

    Title:

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      I

     

    (All
      dates are subject to adjustment in accordance with the Modified Following
      Business Day Convention.)

    

    
      	
              Calculation
                Period scheduled to commence on:

            	
              Calculation
                Period

              scheduled
                to end on:

            	
              Notional
                Amount (USD)

            
	
              10/25/06

            	
              11/25/06

            	
              105,810,000.00

            
	
              11/25/06

            	
              12/25/06

            	
              101,060,000.00

            
	
              12/25/06

            	
              01/25/07

            	
              96,523,000.00

            
	
              01/25/07

            	
              02/25/07

            	
              92,189,000.00

            
	
              02/25/07

            	
              03/25/07

            	
              88,050,000.00

            
	
              03/25/07

            	
              04/25/07

            	
              84,096,000.00

            
	
              04/25/07

            	
              05/25/07

            	
              80,319,000.00

            
	
              05/25/07

            	
              06/25/07

            	
              76,711,000.00

            
	
              06/25/07

            	
              07/25/07

            	
              73,265,000.00

            
	
              07/25/07

            	
              08/25/07

            	
              69,973,000.00

            
	
              08/25/07

            	
              09/25/07

            	
              66,830,000.00

            
	
              09/25/07

            	
              10/25/07

            	
              63,827,000.00

            
	
              10/25/07

            	
              11/25/07

            	
              60,958,000.00

            
	
              11/25/07

            	
              12/25/07

            	
              58,219,000.00

            
	
              12/25/07

            	
              01/25/08

            	
              55,602,000.00

            
	
              01/25/08

            	
              02/25/08

            	
              53,102,000.00

            
	
              02/25/08

            	
              03/25/08

            	
              50,715,000.00

            
	
              03/25/08

            	
              04/25/08

            	
              48,435,000.00

            
	
              04/25/08

            	
              05/25/08

            	
              46,257,000.00

            
	
              05/25/08

            	
              06/25/08

            	
              44,176,000.00

            
	
              06/25/08

            	
              07/25/08

            	
              42,189,000.00

            
	
              07/25/08

            	
              08/25/08

            	
              40,189,000.00

            
	
              08/25/08

            	
              09/25/08

            	
              25,917,000.00

            
	
              09/25/08

            	
              10/25/08

            	
              24,550,000.00

            
	
              10/25/08

            	
              11/25/08

            	
              21,267,000.00

            
	
              11/25/08

            	
              12/25/08

            	
              20,310,000.00

            
	
              12/25/08

            	
              01/25/09

            	
              19,396,000.00

            
	
              01/25/09

            	
              02/25/09

            	
              18,523,000.00

            
	
              02/25/09

            	
              03/25/09

            	
              17,689,000.00

            
	
              03/25/09

            	
              04/25/09

            	
              16,893,000.00

            
	
              04/25/09

            	
              05/25/09

            	
              16,132,000.00

            
	
              05/25/09

            	
              06/25/09

            	
              15,406,000.00

            
	
              06/25/09

            	
              07/25/09

            	
              14,712,000.00

            
	
              07/25/09

            	
              08/25/09

            	
              13,960,000.00

            
	
              08/25/09

            	
              09/25/09

            	
              2,161,000.00

            
	
              09/25/09

            	
              10/25/09

            	
              2,019,000.00

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    FORM
      OF
      CUSTODIAL AGREEMENT

     

    

      CUSTODIAL
        AGREEMENT

       

      THIS
        CUSTODIAL AGREEMENT
        (as
        amended and supplemented from time to time, the “Custodial Agreement”), dated as
        of September 28, 2006, by and among HSBC Bank USA, National Association,
        not
        individually, but as indenture trustee (the “Indenture Trustee”), Wells Fargo
        Bank, N.A., as custodian (together with any successor in interest or any
        successor appointed hereunder, the “Custodian”), Renaissance REIT Investment
        Corp. (“RRIC” or the “Seller”), Renaissance Mortgage Acceptance Corp. (“RMAC” or
        the “Depositor”) and Ocwen Loan Servicing, LLC (together with any successor
        entity, “Ocwen” or the “Servicer”).

       

      W
        I T N E S S E T H    T H A T

       

      WHEREAS,
        Renaissance Home Equity Loan Trust 2006-3 as issuer, the Indenture Trustee
        and
        Wells Fargo Bank, N.A. as securities administrator, have entered into an
        Indenture dated as of September 28, 2006, relating to the issuance of RMAC’s
        Home Equity Loan Asset-Backed Notes, Series 2006-3 (as amended and supplemented
        from time to time, the “Agreement”); and 

       

      WHEREAS,
        the
        Custodian has agreed to act as agent for the Indenture Trustee for the purposes
        of receiving and holding certain documents and other instruments as described
        in
        Section 2.1(b) of the Mortgage Loan Sale and Contribution Agreement, dated
        as of
        September 28, 2006 (the “Contribution Agreement”), among RMAC, RRIC and Delta
        Funding Corporation as originator (“Delta”), delivered by RRIC under the
        Contribution Agreement, all upon the terms and conditions and subject to
        the
        limitations hereinafter set forth; 

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and the mutual covenants and agreements
        hereinafter set forth, the Indenture Trustee and the Custodian hereby agree
        as
        follows:

       

      1.  Definitions

       

      Capitalized
        terms used in this Custodial Agreement and not defined herein shall have
        the
        meanings assigned in the Agreement, unless otherwise required by the context
        herein.

       

      2.  Custody
        of Mortgage Documents

       

      
        	 	
                2.1

              	
                Custodian
                  to Act as Agent; Acceptance of Mortgage Files.
                  

              

      

       

      The
        Custodian, as the duly appointed agent of the Indenture Trustee for these
        purposes, acknowledges that it will hold the Mortgage Notes, the Related
        Documents, the assignments and other documents required to be delivered by
        RRIC
        to the Custodian pursuant to Section 2.1(b) of the Contribution Agreement
        and
        relating to the Mortgage Loans identified on Schedule I hereto and declares
        that
        it will hold such Mortgage Notes, Related Documents, assignments and other
        documents and any similar documents received by the Indenture Trustee subsequent
        to the date hereof (the “Mortgage Files”) as agent for the Indenture Trustee, in
        trust, for the benefit of all present and future Noteholders. The Custodian
        agrees to execute the initial certification and the final certification set
        forth on Exhibits C-1 and C-2 of the Agreement. 

       

      
        	 	
                2.2

              	
                Recordation
                  of Assignments.
                  

              

      

       

      Except
        with respect to any MERS Mortgage Loan, if any Mortgage File includes one
        or
        more assignments to the Indenture Trustee of Related Documents that have
        not
        been recorded, within 30 days of the Closing Date, RRIC, at no expense to
        the
        Custodian, shall cause to be recorded in the appropriate public office for
        real
        property records each such assignment and, upon receipt thereof from such
        public
        office, shall return each such assignment to the Custodian; The Custodian
        also
        agrees to perform its other obligations, including, but not limited to its
        obligations under Section 2.03 of the Agreement and Section 3.07 of the
        Servicing Agreement. 

       

      2.3 Review
        of Mortgage Files.

       

      The
        Custodian agrees, for the benefit of the Issuer, the Seller, the Depositor
        and
        the Noteholders, to review, in accordance with the provisions of Section
        2.03 of
        the Agreement, each Mortgage File. If in performing the reviews required
        by this
        Section 2.3, the Custodian finds any document or documents constituting a
        part
        of a Mortgage File to be unexecuted or missing or, based on the criteria
        set
        forth in Section 2.1(b) of the Contribution Agreement, to be unrelated to
        the
        applicable Mortgage Loan, the Custodian shall promptly so notify RRIC, RMAC
        and
        the Indenture Trustee. 

       

      In
        connection with such review, the Custodian makes no representations as to,
        and
        shall not be responsible to verify (A) the validity, legality, enforceability,
        due authorization, recordability, sufficiency, or genuineness of any of the
        documents contained in any Mortgage File or (B) the collectability,
        insurability, effectiveness, or suitability of any Mortgage Loan.

       

      2.4 Notification
        of Breaches of Representations and Warranties.
        

       

      Upon
        discovery by the Custodian of a breach of any representation or warranty
        made by
        Delta as set forth in Section 3.1(c) of the Contribution Agreement, the
        Custodian shall give prompt written notice to Delta, RRIC, RMAC and the
        Indenture Trustee. 

       

      2.5 Custodian
        to Cooperate; Release of Mortgage Files.
        

       

      Upon
        the
        payment in full of any Mortgage Loan, or the receipt by the Servicer of a
        notification that payment in full will be escrowed in a manner customary
        for
        such purposes, the Servicer shall, pursuant to the Servicing Agreement, promptly
        notify the Custodian by delivering to the Custodian two copies of a Request
        for
        Release (Exhibit B to the Servicing Agreement), one of which will be returned
        to
        the Servicer with the Mortgage File, executed by a Servicing Officer or in
        a
        mutually agreeable electronic format that originates from a Servicing Officer
        and shall request delivery to it of the Mortgage File. The Custodian agrees,
        upon receipt of such certification and request, promptly to release the related
        Mortgage File to the Servicer. 

       

      From
        time
        to time as is appropriate for the servicing or foreclosure of any Mortgage
        Loan,
        the Master Servicer or the Servicer shall, pursuant to the Servicing Agreement,
        deliver to the Custodian two copies of a Request for Release requesting that
        possession of all of the Mortgage File be released to the Master Servicer
        or the
        Servicer and certifying as to the reason for such release. With such Request
        for
        Release, the Master Servicer or the Servicer shall, pursuant to the Servicing
        Agreement, deliver to the Custodian a receipt signed by a Servicing Officer
        of
        the Master Servicer or the Servicer on behalf of the Master Servicer or the
        Servicer (or in a mutually agreeable electronic format that originates from
        a
        Servicing Officer), and upon receipt of the foregoing, the Custodian shall
        deliver the Mortgage File or such document to the Master Servicer or the
        Servicer and the Master Servicer or the Servicer shall, pursuant to the
        Servicing Agreement, hold the Mortgage File or such document in trust for
        the
        benefit of the Seller and the Noteholders. The Master Servicer or the Servicer
        shall, pursuant to the Servicing Agreement, cause each Mortgage File to be
        returned to the Custodian when the need therefor by the Master Servicer or
        the
        Servicer no longer exists, unless (i) the Mortgage Loan has been liquidated
        and
        the Liquidation Proceeds relating to the Mortgage Loan have been deposited
        in
        the Collection Account to the extent required by the Agreement or (ii) the
        Mortgage File 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 Master Servicer or the Servicer has
        delivered to the Custodian a certificate of a Servicing Officer of the Master
        Servicer or the Servicer certifying as to the name and address of the Person
        to
        which such Mortgage File was delivered and the purpose or purposes of such
        delivery. In the event of the liquidation of a Mortgage Loan, the Custodian
        shall deliver such receipt with respect thereto to the Master Servicer or
        the
        Servicer upon deposit of the related Liquidation Proceeds in the Distribution
        Account to the extent required by the Agreement. 

       

      2.6 Assumption
        Agreements.
        

       

      In
        the
        event that any assumption agreement or substitution of liability agreement
        is
        entered into with respect to any Mortgage Loan subject to this Custodial
        Agreement in accordance with the terms and provisions of the Agreement, the
        Master Servicer or the Servicer shall, pursuant to the Servicing Agreement,
        notify the Custodian that such assumption or substitution agreement has been
        completed by forwarding to the Custodian the original of such assumption
        or
        substitution agreement, which document shall be added to the related Mortgage
        File and, for all purposes, shall be considered a part of such Mortgage File
        to
        the same extent as all other documents and instruments constituting parts
        thereof. 

       

      3.  Concerning
        the Custodian

       

      3.1 Custodian
        a Bailee and Agent of the Indenture Trustee.
        

       

      With
        respect to each Mortgage Note, Related Document and other documents constituting
        each Mortgage File which are delivered to the Custodian, the Custodian is
        exclusively the bailee and agent of the Indenture Trustee, holds such documents
        for the benefit of the Trust and the Noteholders and undertakes to perform
        such
        duties and only such duties as are specifically set forth in this Agreement.
        Except upon compliance with the provisions of Section 2.5 of this Custodial
        Agreement, no Mortgage Note, Related Document or other document constituting
        a
        part of a Mortgage File shall be delivered by the Custodian to the Master
        Servicer or the Servicer or otherwise released from the possession of the
        Custodian. 

       

      3.2 Indemnification.
        

       

      Both
        RRIC
        and RMAC hereby agree to indemnify and hold the Custodian harmless from and
        against all claims, liabilities, losses, actions, suits or proceedings at
        law or
        in equity, or any other expenses, fees or charges of any character or nature,
        which the Custodian may incur or with which the Custodian may be threatened
        by
        reason of its acting as custodian under this Custodial Agreement, including
        indemnification of the Custodian against any and all expenses, including
        attorney’s fees if counsel for the Custodian has been approved by the Seller and
        the Depositor, which approval shall not be unreasonably withheld, and the
        cost
        of defending any action, suit or proceedings or resisting any claim.
        Notwithstanding the foregoing, it is specifically understood and agreed that
        in
        the event any such claim, liability, loss, action, suit or proceeding or
        other
        expense, fees, or charge shall have been caused by reason of any negligent
        act,
        negligent failure to act, or willful misconduct on the part of the Custodian,
        or
        which shall constitute a willful breach of its duties hereunder, the
        indemnification provisions of this Custodial Agreement shall not apply. The
        indemnification provided by this Section 3.2 shall survive the termination
        or
        assignment of this Custodial Agreement or the resignation or removal of the
        Custodian hereunder. 

       

      3.3 Custodian
        May Own Notes.
        

       

      The
        Custodian in its individual or any other capacity may become the owner or
        pledgee of Notes with the same rights it would have if it were not Custodian.
        

       

      3.4 Custodian’s
        Fees and Expenses.
        

       

      RRIC
        will
        pay the initial fees of the Custodian. Other fees payable to the Custodian
        hereunder for all services rendered by it in the exercise and performance
        of any
        of the powers and duties hereunder of the Custodian, as set forth in a separate
        letter agreement shall be paid from the Master Servicing Fee. RRIC will pay
        or
        reimburse the Custodian upon its request for all reasonable expenses,
        disbursements and advances incurred or made by the Custodian in accordance
        with
        any of the provisions of this Custodial Agreement (including the reasonable
        compensation and the expenses and disbursements of its counsel and of all
        persons not regularly in its employ), except any such expense, disbursement
        or
        advance as may arise from its negligence or bad faith. 

       

      3.5 Custodian
        May Resign; Indenture Trustee May Remove Custodian.
        

       

      The
        Custodian may resign from the obligations and duties hereby imposed upon
        it as
        such obligations and duties relate to its acting as Custodian of the Mortgage
        Loans upon giving 60 days written notice to the Indenture Trustee. Upon
        receiving such notice of resignation, the Indenture Trustee shall either
        take
        custody of the Mortgage Files itself and give prompt notice thereof to RRIC,
        RMAC and the Custodian or promptly appoint a successor Custodian which is
        able
        to satisfy the requirements of Section 3.7(i) of this Custodial Agreement
        by
        written instrument, in duplicate, one copy of which instrument shall be
        delivered to the resigning Custodian and one copy to the successor Custodian.
        If
        the Indenture Trustee has not taken custody of the Mortgage Files and no
        successor Custodian has been so appointed, the resigning Custodian may petition
        any court of competent jurisdiction for the appointment of a successor
        Custodian. All fees and expenses of any successor Custodian shall be the
        responsibility of RRIC. 

       

      The
        Indenture Trustee may remove the Custodian at any time for cause, or otherwise
        the Indenture Trustee may remove the Custodian at any time upon giving 60
        days
        written notice. In such event, the Indenture Trustee shall take custody of
        the
        Mortgage Files itself, or shall appoint, or petition a court of competent
        jurisdiction to appoint, a successor Custodian hereunder. Any successor
        Custodian shall be a depository institution subject to supervision or
        examination by federal or state authority and shall be able to satisfy the
        other
        requirements contained in Section 3.7(i) of this Custodial Agreement.

       

      Any
        resignation or removal of the Custodian and appointment of a successor Custodian
        pursuant to any of the provisions of this Section 3.5 shall become effective
        only upon acceptance of appointment by the successor Custodian and subject
        to
        the prior approval of RRIC and RMAC. The Indenture Trustee shall give prompt
        notice to RRIC, RMAC, the Servicer, the Master Servicer and the Custodian
        of the
        appointment of any successor Custodian. 

       

      3.6 Merger
        or Consolidation of Custodian.
        

       

      Any
        Person into which the Custodian may be merged or converted or with which
        it may
        be consolidated, or any Person resulting from any merger, conversion or
        consolidation to which the Custodian shall be a party, or any Person succeeding
        to the business of the Custodian, shall be the successor of the Custodian
        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. 

       

      3.7 Representations
        of the Custodian.
        

       

      The
        Custodian hereby represents and warrants as follows: 

       

      
        	(i)  	
                It
                  is a national banking association subject to supervision or examination
                  by
                  a federal authority, has a combined capital and surplus of at least
                  $50,000,000 and is qualified to do business in the jurisdiction
                  in which
                  it will hold any Mortgage File;

              

      

       

      
        	(ii)  	
                It
                  has full power, authority and legal right to execute and deliver
                  this
                  Custodial Agreement and to perform its obligations hereunder and
                  has taken
                  all necessary action to authorize the execution, delivery and performance
                  by it of this Custodial Agreement;

              

      

       

      
        	(iii)  	
                To
                  the best of its knowledge, after reasonable investigation, the
                  execution
                  and delivery by it of this Custodial Agreement and the performance
                  by it
                  of its obligations hereunder will not violate any provision of
                  its Charter
                  or By-Laws or any law or regulation governing it or any order,
                  writ,
                  judgment or decree of any court, arbitrator or governmental authority
                  or
                  agency applicable to it or any of its assets. To the best of its
                  knowledge, after reasonable investigation, such execution, delivery
                  and
                  performance will not require the authorization, consent or approval
                  of,
                  the giving of notice to, the filing or registration with, or the
                  taking of
                  any other action with respect to, any governmental authority or
                  agency
                  regulating its activities. To the best of its knowledge, after
                  reasonable
                  investigation, such execution, delivery and performance will not
                  conflict
                  with, or result in a breach or violation of, any material indenture,
                  mortgage, deed of trust, lease or other agreement or instrument
                  to which
                  it is a party or by which it or its properties are bound;
                  and

              

      

       

      
        	(iv)  	
                This
                  Custodial Agreement has been duly executed and delivered by it.
                  This
                  Custodial Agreement, when executed and delivered by the other parties
                  hereto, will constitute its valid, legal and binding obligation,
                  enforceable against it in accordance with its terms, except as
                  the
                  enforcement thereof may be limited by applicable debtor relief
                  laws and
                  that certain equitable remedies may not be available regardless
                  of whether
                  enforcement is sought in equity or at
                  law.

              

      

       

      3.8 Limitations
        on the Responsibilities of the Custodian.
        

       

      (a)  Neither
        the Custodian nor any of its Affiliates, directors, officers, agents, counsel,
        attorneys-in-fact, and employees shall be liable for any action or omission
        to
        act hereunder except for its own or such person’s gross negligence or willful
        misconduct. Notwithstanding the foregoing sentence, in no event shall the
        Custodian or its Affiliates, directors, officers, agents, counsel,
        attorneys-in-fact, and employees be held liable for any special, indirect,
        punitive or consequential damages resulting from any action taken or omitted
        to
        be taken by it or them hereunder or in connection herewith even if advised
        of
        the possibility of such damages. The provisions of this Section 3.8 shall
        survive the resignation or removal of the Custodian and the termination of
        this
        Agreement. 

       

      (b)  The
        Custodian shall not be responsible for preparing or filing any reports or
        returns relating to federal, state or local income taxes with respect to
        this
        Agreement, other than for the Custodian’s compensation or for reimbursement of
        expenses. 

       

      (c)  The
        Custodian shall not be responsible or liable for, and makes no representation
        or
        warranty with respect to, the validity, adequacy or perfection of any lien
        upon
        or security interest in any Mortgage File. 

       

      (d)  The
        Custodian shall not be responsible for delays or failures in performance
        resulting from acts beyond its control. Such acts shall include, but not
        be
        limited to, acts of God, strikes, lockouts, riots, acts or war or terrorism,
        epidemics, nationalization, expropriation, currency restrictions, governmental
        regulations superimposed after the fact, fire, communication line failures,
        computer viruses, power failures, earthquakes or other disasters. 

       

      (e)  The
        duties and obligations of the Custodian shall only be such as are expressly
        set
        forth in this Agreement or as set forth in a written amendment to this Agreement
        executed by the parties hereto or their successors and assigns. In the event
        that any provision of this Agreement implies or requires that action or
        forbearance be taken by a party, but is silent as to which party has the
        duty to
        act or refrain from acting, the parties agree that the Custodian shall not
        be
        the party required to take the action or refrain from acting. In no event
        shall
        the Custodian have any responsibility to ascertain or take action except
        as
        expressly provided herein. 

       

      (f)  Nothing
        in this Agreement shall be deemed to impose on the Custodian any duty to
        qualify
        to do business in any jurisdiction, other
        than
        (i) any
        jurisdiction where any Mortgage File is or may be held by the Custodian from
        time to time hereunder, and (ii) any jurisdiction where its ownership of
        property or conduct of business requires such qualification and where failure
        to
        qualify could have a material adverse effect on the Custodian or its property
        or
        business or on the ability of the Custodian to perform it duties hereunder.
        

       

      (g)  The
        Indenture Trustee and RRIC agree that the Custodian may delegate any of its
        duties under this Agreement to any of its agents, attorneys-in-fact, or
        Affiliates. Any such agent, attorney-in-fact, or Affiliate (and such Affiliate’s
        directors, officers, agents and employees) which performs duties in connection
        with this Agreement shall be entitled to the same benefits of the
        indemnification, waiver and other protective provisions to which the Custodian
        is entitled under this Agreement. 

       

      (h)  The
        Custodian shall have no duty to ascertain whether or not any cash amount
        or
        payment has been received by the Seller, Depositor, the Master Servicer,
        the
        Servicer or any third person. 

       

      4.  Miscellaneous
        Provisions

       

      
        	 	
                4.1

              	
                Notices. 

              

      

       

      All
        notices, requests, consents and demands and other communications required
        under
        this Custodial Agreement or pursuant to any other instrument or document
        delivered hereunder shall be in writing and, unless otherwise specifically
        provided, may be delivered personally, by telegram or telex, or by registered
        or
        certified mail, postage prepaid, return receipt requested, at the addresses
        specified below (unless changed by the particular party whose address is
        stated
        herein by similar notice in writing), in which case the notice will be deemed
        delivered when received: 

       

      
        	
                The
                  Indenture Trustee:

              	
                HSBC
                  Bank USA, National Association

              
	 	
                452
                  Fifth Avenue

              
	 	
                New
                  York, New York

              
	 	
                Attention: Corporate
                  Trust/Renaissance HEL Trust 2006-3

              
	 	
                Telecopy: (212)
                  525-1300

              
	 	
                Confirmation: (212)
                  525-1501

              
	 	 
	
                The
                  Custodian:

              	
                Wells
                  Fargo Bank, N.A.

              
	 	
                24
                  Executive Park, Suite 100

              
	 	
                Irvine,
                  California 92614

              
	 	
                Attention:
                  Mortgage Document Custody

              
	 	
                Telecopy:
                   
                  (949) 955-0140

              
	 	
                Confirmation:
                   
                  (949) 757-5100

              
	 	 
	
                RRIC:

              	
                Renaissance
                  REIT Investment Corp.

              
	 	
                1000
                  Woodbury Road, Suite 200

              
	 	
                Woodbury,
                  New York 11797

              
	 	
                Attention:
                  Executive Department

              
	 	
                Telecopy:
                   (516)
                  364-9450

              
	 	
                Confirmation: (516)
                  364-8500

              
	
                RMAC:

              	
                Renaissance
                  Mortgage Acceptance Corp.

              
	 	
                1000
                  Woodbury Road, Suite 200

              
	 	
                Woodbury,
                  New York 11797

              
	 	
                Attention:
                  Executive Department

              
	 	
                Telecopy:
                   (516)
                  364-9450

              
	 	
                Confirmation: (516)
                  364-8500

              
	 	 
	
                The
                  Servicer:

              	
                Ocwen
                  Loan Servicing, LLC

                1661
                  Worthington Road Centrepark West 

                Suite
                  100 

                West
                  Palm Beach, FL 33409 

                Attention:
                  Secretary

                Facsimile
                  Number: (561) 682-8177

                Confirmation
                  Number: (561) 682-8517

              
	 	 
	
                The
                  Master Servicer:

              	
                Wells
                  Fargo Bank, N.A.

              
	 	
                P.O.
                  Box 98

              
	 	
                Columbia,
                  Maryland 21046

              
	 	
                Or
                  in the case of overnight deliveries:

              
	 	
                9062
                  Old Annapolis Road

              
	 	
                Columbia,
                  Maryland 21045

              
	 	
                Attention:
                  Corporate Trust Services - Renaissance 2006-3

              
	 	
                Telecopy:
                   (410)
                  715-2380

              
	
                Confirmation:
                   (410)
                  884-2000

              
	 	 

      

      
        	 	
                4.2

              	
                Amendments.
                  

              

      

       

      No
        modification or amendment of or supplement to this Custodial Agreement shall
        be
        valid or effective unless the same is in writing and signed by all parties
        hereto, and the Indenture Trustee shall not enter into any amendment hereof
        except as permitted by the Agreement. The Indenture Trustee shall give prompt
        notice to the Custodian of any amendment or supplement to the Agreement and
        furnish the Custodian with written copies thereof. RRIC, RMAC, the Servicer,
        the
        Master Servicer and the Indenture Trustee agree to obtain the Custodian’s
        written consent prior to entering into any amendment or modification of the
        Agreement which affects any right, benefit, duty, or obligation of the Custodian
        thereunder. 

       

      
        	 	
                4.3

              	
                Governing
                  Law.
                  

              

      

       

      This
        Custodial Agreement shall be deemed a contract made under the laws of the
        State
        of New York and shall be construed and enforced in accordance with and governed
        by the laws of the State of New York (without regard to its conflicts of
        laws
        provisions). 

       

      
        	 	
                4.4

              	
                Recordation
                  of Agreement.
                  

              

      

       

      To
        the
        extent permitted by applicable law, this Custodial Agreement is subject to
        recordation in all appropriate public offices for real property records in
        all
        the counties or other comparable jurisdictions in which any or all of the
        Mortgaged Properties subject to the Mortgage Loans are situated, and in any
        other appropriate public recording office or elsewhere, such recordation
        to be
        effected by RRIC and at its expense, but only upon direction accompanied
        by an
        Opinion of Counsel to the effect that such recordation materially and
        beneficially affects the interests of the Noteholders. 

       

      For
        the
        purpose of facilitating the recordation of this Custodial Agreement as herein
        provided and for other purposes, this Custodial Agreement may be executed
        simultaneously in any number of counterparts, each of which counterparts
        shall
        be deemed to be an original, and such counterparts shall constitute but one
        and
        the same instrument. 

       

      
        	 	
                4.5

              	
                Severability
                  of Provisions.
                  

              

      

       

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

       

      
        	 	
                4.6

              	
                Waiver
                  of Trial By Jury.
                  

              

      

       

      Each
        party hereto waives the right to trial by jury in any action, suit, proceeding,
        or counterclaim of any kind arising out of or related to this Custodial
        Agreement. In the event of litigation, this Custodial Agreement may be filed
        as
        a written consent to a trial by the court. 

       

      
        	 	
                4.7

              	
                Counterparts.
                  

              

      

       

      This
        instrument may be executed in any number of counterparts, each of which so
        executed shall be deemed to be an original, but all such counterparts shall
        together constitute but one and the same instrument. 

       

      
        	 	
                4.8

              	
                Reliance
                  of Custodian.
                  

              

      

       

      In
        the
        absence of bad faith, negligence or willful misconduct on the part of the
        Custodian, the Custodian may conclusively rely, as to the truth of the
        statements and the correctness of the opinions expressed therein, upon any
        request, instructions, certificate, opinion or the document furnished to
        the
        Custodian, reasonably believed by the Custodian to be genuine and to have
        been
        signed or presented by the proper party or parties and conforming to the
        requirements of this Custodial Agreement; but in the case of any Related
        Document or other request, instruction, document or certificate which by
        any
        provision hereof is specifically required to be furnished to the Custodian,
        the
        Custodian shall be under a duty to examine the same to determine whether
        or not
        it conforms to the requirements of this Custodial Agreement. 

       

      The
        Custodian may rely upon the validity of documents delivered to it, without
        investigation as to their authenticity or legal effectiveness and RRIC and
        RMAC
        will hold the Custodian harmless from any claims that may arise or be asserted
        against the Custodian because of the invalidity of any such documents. Except
        as
        provided herein, no provision of this Custodial Agreement shall require the
        Custodian to expend or risk its own funds or otherwise incur any financial
        liability in the performance of any of its duties hereunder, if it should
        have
        reasonable grounds for believing that repayment of such funds or adequate
        indemnity against such risk or liability is not reasonably assured to it.
        The
        Custodian may consult with competent counsel with regard to legal questions
        arising out of or in connection with this Custodial Agreement and the informed
        advice or opinion of such counsel shall be full and complete authorization
        and
        protection in respect of any action taken, omitted or suffered by the Custodian
        in good faith in accordance herewith. 

       

      
        	 	
                4.9

              	
                Transmission
                  of Mortgage Files.
                  

              

      

       

      Written
        instructions as to the method of shipment and shipper(s) the Custodian is
        directed to utilize in connection with the transmission of Mortgage Files
        and
        Related Documents in the performance of the Custodian’s duties hereunder shall
        be delivered by the Master Servicer or the Servicer to the Custodian prior
        to
        any shipment of any Mortgage Files and Related Documents hereunder. The Master
        Servicer or the Servicer will arrange for the provision of such services
        at its
        sole cost and expense (or, at the Custodian’s option, reimburse the Custodian
        for all costs and expenses incurred by the Custodian consistent with such
        instructions) and will maintain such insurance against loss or damage to
        Mortgage Files and Related Documents as the Master Servicer and the Servicer
        deems appropriate. Without limiting the generality of the provisions of Section
        3.2 above, it is expressly agreed that in no event shall the Custodian have
        any
        liability for any losses or damages to any person, including without limitation
        the Master Servicer or the Servicer, arising out of actions of the Custodian
        consistent with instructions of the Master Servicer or the Servicer, as the
        case
        may be. If the Custodian does not receive written direction, the Custodian
        is
        hereby authorized to utilize a nationally recognized courier service, and
        shall
        incur no liability for acting in accordance with this sentence.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        this
        Agreement is executed as of the date first above written.

       

      
        	
                HSBC
                  BANK USA, NATIONAL ASSOCIATION,

                as
                  Indenture Trustee 

                 

                 

                By: ____________________________

                Name:
                  

                Title: 

                 

              	 
	
                WELLS
                  FARGO BANK, N.A.,

                as
                  Custodian

                 

                 

                By: ____________________________

                Name:
                  

                Title:
                  

                 

              	 
	
                RENAISSANCE
                  REIT INVESTMENT CORP.,

                as
                  Seller 

                 

                By: ____________________________

                Name:
                  

                Title: 

                 

              	 
	
                RENAISSANCE
                  MORTGAGE ACCEPTANCE CORP.,

                as
                  Depositor 

                 

                By: ____________________________

                Name: 

                Title: 

                 

              	 
	
                OCWEN
                  LOAN SERVICING, LLC,

                as
                  Servicer

                 

                By: ____________________________

                Name: 

                Title: 

                 

              	 
	
                Acknowledged:

                 

                WELLS
                  FARGO BANK, N.A.,

                as
                  Master Servicer

                 

                By: ____________________________

                Name:
                  

                Title: 

              	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Schedule
        I

       

      DELIVERED
        TO INDENTURE TRUSTEE AT CLOSING

      AS
        PROVIDED IN EXHIBIT
        A
        TO
        THE

      CONTRIBUTION
        AGREEMENT

      

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      F-1

     

    FORM
      OF
      TRANSFEROR CERTIFICATE

    FOR
      TRANSFERS OF THE CLASS N NOTES

     

                                                                                [Date]

     

    [Wells
      Fargo Bank, N.A.]

     

    
      	
              Re:

            	
              Renaissance
                Home Equity Loan Trust 2006-3 Home Equity Loan Asset-Backed Notes,
                Series
                2006-3 (the “Notes”)

            

    

    Ladies
      and Gentlemen:

     

    In
      connection with the sale by _____________________________ (the “Transferor”) to
      _________________________ (the “Transferee”) of the Class N Notes having an
      initial aggregate Note Balance as of September 28, 2006 (the “Closing Date”) of
      $______________ (the “Transferred Notes”). The Class N Notes, including the
      Transferred Notes, were issued pursuant to the Indenture, dated as of September
      28, 2006 (the “Indenture”), among Renaissance Home Equity Loan Trust 2006-3 (the
“Issuer”), HSBC Bank USA, National Association (the “Indenture Trustee”) and
      Wells Fargo Bank, N.A. (the “Securities Administrator”). All capitalized terms
      used but not otherwise defined herein shall have the respective meanings set
      forth in the Indenture. The Transferor hereby certifies, represents and warrants
      to you, as Note Registrar, and for the benefit of the Issuer, the Indenture
      Trustee, the Securities Administrator and the Transferee, that:

     

    1.  The
      Transferor is the lawful owner of the Transferred Notes with the full right
      to
      transfer such Notes free from any and all claims and encumbrances
      whatsoever.

     

    2.  Neither
      the Transferor nor anyone acting on its behalf has (a) offered, transferred,
      pledged, sold or otherwise disposed of any Note, any interest in any Note or
      any
      other similar security to any person in any manner, (b) solicited any offer
      to
      buy or accept a transfer, pledge or other disposition of any Note, any interest
      in any Note or any other similar security from any person in any manner, (c)
      otherwise approached or negotiated with respect to any Note, any interest in
      any
      Note or any other similar security with any person in any manner, (d) made
      any
      general solicitation by means of general advertising or in any other manner,
      or
      (e) taken any other action, which (in the case of any of the acts described
      in
      clauses (a) through (e) hereof) would constitute a distribution of any Note
      under the Securities Act of 1933, as amended (the “Securities Act”), or would
      render the disposition of any Note a violation of Section 5 of the Securities
      Act or any state securities laws, or would require registration or qualification
      of any Note pursuant to the Securities Act or any state securities
      laws.

     

    3.  The
      Transferor and any person acting on behalf of the Transferor in this matter
      reasonably believe that the Transferee is a “qualified institutional buyer” as
      that term is defined in Rule l44A (“Rule l44A”) under the Securities Act (a
“Qualified Institutional Buyer”) purchasing for its own account or for the
      account of a Qualified Institutional Buyer. In determining whether the
      Transferee is a Qualified Institutional Buyer, the Transferor and any person
      acting on behalf of the Transferor in this matter have relied upon the following
      method(s) of establishing the Transferee’s ownership and discretionary
      investments of securities (check one or more):

     

    
      	
              ____

            	
              (a) The
                Transferee’s most recent publicly available financial statements, which
                statements present the information as of a date within 16 months
                preceding
                the date of sale of the Transferred Note in the case of a U.S. purchaser
                and within 18 months preceding such date of sale for a foreign purchaser;
                or

            
	 	 
	
              ____

            	
              (b) The
                most recent publicly available information appearing in documents
                filed by
                the Transferee with the Securities and Exchange Commission or another
                United States federal, state, or local governmental agency or
                self-regulatory organization, or with a foreign governmental agency
                or
                self-regulatory organization, which information is as of a date within
                16
                months preceding the date of sale of the Transferred Note in the
                case of a
                U.S. purchaser and within 18 months preceding such date of sale for
                a
                foreign purchaser, or

            
	 	 
	
              ____

            	
              (c) The
                most recent publicly available information appearing in a recognized
                securities manual, which information is as of a date within 16 months
                preceding the date of sale of the Transferred Note in the case of
                a U.S.
                purchaser and within 18 months preceding such date of sale for a
                foreign
                purchaser, or

            
	 	 
	
              ____

            	
              (d) A
                certification by the chief financial officer, a person fulfilling
                an
                equivalent function, or other executive officer of the Transferee,
                specifying the amount of securities owned and invested on a discretionary
                basis by the Transferee as of a specific date on or since the close
                of the
                Transferee’s most recent fiscal year, or, in the case of a Transferee that
                is a member of a “family of investment companies”, as that term is defined
                in Rule 144A, a certification by an executive officer of the investment
                adviser specifying the amount of securities owned by the “family of
                investment companies” as of a specific date on or since the close of the
                Transferee’s most recent fiscal
                year.

            

    

    

    4.  The
      Transferor and any person acting on behalf of the Transferor understand that
      in
      determining the aggregate amount of securities owned and invested on a
      discretionary basis by an entity for purposes of establishing whether such
      entity is a Qualified Institutional Buyer:

     

    1.  the
      following instruments and interests shall be excluded: securities of issuers
      that are affiliated with the Transferee; securities that are part of an unsold
      allotment to or subscription by the Transferee, if the Transferee is a dealer;
      securities of issuers that are part of the Transferee’s “family of investment
      companies”, if the Transferee is a registered investment company; bank deposit
      notes and certificates of deposit; loan participations; repurchase agreements;
      securities owned but subject to a repurchase agreement; and currency, interest
      rate and commodity swaps;

     

    2.  the
      aggregate value of the securities shall be the cost of such securities, except
      where the entity reports its securities holdings in its financial statements
      on
      the basis of their market value, and no current information with respect to
      the
      cost of those securities has been published, in which case the securities may
      be
      valued at market;

     

    3.  securities
      owned by subsidiaries of the entity that are consolidated with the entity in
      its
      financial statements prepared in accordance with United States generally
      accepted accounting principles may be included if the investments of such
      subsidiaries are managed under the direction of the entity, except that, unless
      the entity is a reporting company under Section 13 or 15(d) of the Securities
      Exchange Act of 1934, as amended, securities owned by such subsidiaries may
      not
      be included if the entity itself is a majority-owned subsidiary that would
      be
      included in the consolidated financial statements of another
      enterprise.

     

    5.  The
      Transferor or a person acting on its behalf has taken reasonable steps to ensure
      that the Transferee is aware that the Transferor is relying on the exemption
      from the provisions of Section 5 of the Securities Act provided by Rule
      144A.

     

    The
      Transferor or a person acting on its behalf has furnished, or caused to be
      furnished, to the Transferee all information regarding (a) the Transferred
      Notes
      and payments thereon, (b) the nature and performance of the Underlying
      Certificates, the Mortgage Loans and the Mortgage Participations, (c) the
      Indenture and the Collateral, and (d) any credit enhancement mechanism
      associated with the Transferred Notes, that the Transferee has
      requested.

     

    

     

    
      	
              Very
                truly yours,

               

              [TRANSFEROR]

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F-2

     

    FORM
      OF
      TRANSFEREE CERTIFICATE

    FOR
      TRANSFERS OF THE CLASS N NOTES

     

                                                                    [Date]

     

    [Wells
      Fargo Bank, N.A.]

     

    
      	
              Re:

            	
              Renaissance
                Home Equity Loan Trust 2006-3 Home Equity Loan Asset-Backed Notes,
                Series
                2006-3 (the “Notes”)

            

    

    

     

    Ladies
      and Gentlemen:

     

    __________________
      (the “Transferee”) intends to purchase from _________________ (the “Transferor”)
      the Notes having an initial aggregate Note Balance as of September 28, 2006
      (the
“Closing Date”) of $_____________ (the “Transferred Notes”). The Notes,
      including the Transferred Notes, were issued pursuant to the Indenture, dated
      as
      of September 28, 2006 (the “Indenture”), between Renaissance Home Equity Loan
      Trust 2006-3 (the “Issuer”), HSBC Bank USA, National Association (the “Indenture
      Trustee”) and Wells Fargo Bank, N.A. (the “Securities Administrator”). All
      capitalized terms used herein and not otherwise defined shall have the meanings
      set forth in the Indenture. The Transferee hereby certifies, represents and
      warrants to you, as Note Registrar, and for the benefit of the Issuer, the
      Indenture Trustee, the Securities Administrator and the Transferor,
      that:

     

    1.  The
      Transferee is a “qualified institutional buyer” (a “Qualified Institutional
      Buyer”) as that term is defined in Rule 144A (“Rule l44A”) under the Securities
      Act of 1933, as amended (the “Securities Act”), and has completed one of the
      forms of certification to that effect attached hereto as Annex 1 and Annex
      2.
      The Transferee is aware that the sale to it of the Transferred Notes is being
      made in reliance on Rule 144A. The Transferee is acquiring the Transferred
      Notes
      for its own account or for the account of a Qualified Institutional Buyer,
      and
      understands that such Transferred Notes 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.

     

    2.  The
      Transferee has been furnished with all information regarding (a) the Transferred
      Notes and payments thereon, (b) the nature and performance of the Underlying
      Certificates and the Mortgage Loans, (c) the Indenture, and (d) any credit
      enhancement mechanism associated with the Transferred Notes, that it has
      requested.

     

    3.  The
      Transferee represents that:

     

    ____ a. it
      is
      neither: (1) an employee benefit plan or other retirement arrangement, including
      individual retirement accounts and annuities, Keogh plans and collective
      investment funds and separate accounts in which such plans, accounts or
      arrangements are invested, including, without limitation, insurance company
      general accounts, that is subject to ERISA or Section 4975 of the Code (each,
      a
“Plan”), nor (2) any Person who is directly or indirectly purchasing such Note
      or interest therein on behalf of, as named fiduciary of, as trustee of, or
      with
“plan assets” (as defined under the DOL Regulation at 29 C.F.R. Section
      2510.3-101) of a Plan; or

     

    ____ b. the
      acquisition, holding and transfer of the Transferred Note will not give rise
      to
      a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (2) the Transferred Note is rated investment grade or better and
      the Transferee believes that the Transferred Note is properly treated as
      indebtedness without substantial equity features for purposes of the DOL
      Regulations, and agrees to so treat the Transferred Note; or

     

    ____ c. the
      Transferee has provided the Indenture Trustee, the Securities Administrator
      and
      the Owner Trustee with an Opinion of Counsel, which opines that the acquisition,
      holding and transfer of the Transferred Note or interest therein is permissible
      under applicable law, will not constitute or result in a non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
      Indenture Trustee, the Securities Administrator, the Servicer, the Master
      Servicer or any successor servicer to any obligation in addition to those
      undertaken in the Indenture.

     

    
      	
              Very
                truly yours,

               

              [TRANSFEREE]

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ANNEX
      1
      TO EXHIBIT F-2

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [for
      Transferees other than Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) an Wells Fargo Bank, N.A., as Note Registrar, with respect to the
      Notes being transferred (the “Transferred Notes”) as described in the Transferee
      Certificate to which this certification relates and to which this certification
      is an Annex:

     

    1.  As
      indicated below, the undersigned is the chief financial officer, a person
      fulfilling an equivalent function, or other executive officer of the entity
      purchasing the Transferred Notes (the “Transferee”).

     

    2.  The
      Transferee 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
      Transferee owned and/or invested on a discretionary basis $____________________
      in securities (other than the excluded securities referred to below) as of
      the
      end of the Transferee’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in
      the
      category marked below.

     

    
      	
              ____

            	
              Corporation,
                etc.
                The Transferee is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or any organization described in Section 501(c)(3)
                of
                the Internal Revenue Code of 1986, as amended.

            
	 	 
	
              ____

            	
              Bank.
                The Transferee (a) is a national bank or a banking institution organized
                under the laws of any State, U.S. 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,
                as of a date not more than 16 months preceding the date of sale of
                the
                Note in the case of a U.S. bank, and not more than 18 months preceding
                such date of sale for a foreign bank or equivalent
                institution.

            
	 	 
	
              ____

            	
              Savings
                and Loan.
                The Transferee (a) is a savings and loan association, building and
                loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has
                an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements, a
                copy of which is attached hereto,
                as of a date not more than 16 months preceding the date of sale of
                the
                Note in the case of a U.S. savings and loan association, and not
                more than
                18 months preceding such date of sale for a foreign savings and loan
                association or equivalent institution.

            
	 	 
	
              ____

            	
              Broker-dealer.
                The Transferee is a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934, as amended.

            
	 	 
	
              ____

            	
              Insurance
                Company.
                The Transferee is an insurance company whose primary and predominant
                business activity is the writing of insurance or the reinsuring of
                risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                U.S. territory or the District of Columbia.

            
	 	 
	
              ____

            	
              State
                or Local Plan.
                The Transferee is a plan established and maintained by a State, its
                political subdivisions, or any agency or instrumentality of the State
                or
                its political subdivisions, for the benefit of its
                employees.

            
	 	 
	
              ____

            	
              ERISA
                Plan.
                The Transferee is an employee benefit plan within the meaning of
                Title I
                of the Employee Retirement Income Security Act of 1974, as
                amended.

            
	 	 
	
              ____

            	
              Investment
                Advisor.
                The Transferee is an investment advisor registered under the Investment
                Advisers Act of 1940, as amended.

            
	 	 

    

    

    3.  The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Transferee, (ii) securities
      that are part of an unsold allotment to or subscription by the Transferee,
      if
      the Transferee is a dealer, (iii) 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. For purposes of determining the aggregate amount of
      securities owned and/or invested on a discretionary basis by the Transferee,
      the
      Transferee did not include any of the securities referred to in this
      paragraph.

     

    4.  For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Transferee, the Transferee used the cost of
      such
      securities to the Transferee, unless the Transferee reports its securities
      holdings in its financial statements on the basis of their market value, and
      no
      current information with respect to the cost of those securities has been
      published, in which case the securities were valued at market. Further, in
      determining such aggregate amount, the Transferee may have included securities
      owned by subsidiaries of the Transferee, but only if such subsidiaries are
      consolidated with the Transferee in its financial statements prepared in
      accordance with United States generally accepted accounting principles and
      if
      the investments of such subsidiaries are managed under the Transferee’s
      direction. However, such securities were not included if the Transferee is
      a
      majority-owned, consolidated subsidiary of another enterprise and the Transferee
      is not itself a reporting company under the Securities Exchange Act of 1934,
      as
      amended.

     

    5.  The
      Transferee acknowledges that it is familiar with Rule l44A and understands
      that
      the Transferor and other parties related to the Transferred Notes are relying
      and will continue to rely on the statements made herein because one or more
      sales to the Transferee may be in reliance on Rule 144A.

     

    
      	_______ 	_______ 	
              Will
                the Transferee be purchasing the Transferred Notes

            
	
              Yes

            	
              No

            	
              only
                for the Transferee’s own account?

            

    

    

    6.  If
      the
      answer to the foregoing question is “no”, then in each case where the Transferee
      is purchasing for an account other than its own, such account belongs to a
      third
      party that is itself a “qualified institutional buyer” within the meaning of
      Rule 144A, and the “qualified institutional buyer” status of such third party
      has been established by the Transferee through one or more of the appropriate
      methods contemplated by Rule 144A.

     

    7.  The
      Transferee will notify each of the parties to which this certification is made
      of any changes in the information and conclusions herein. Until such notice
      is
      given, the Transferee’s purchase of the Transferred Notes will constitute a
      reaffirmation of this certification as of the date of such purchase. In
      addition, if the Transferee is a bank or savings and loan as provided above,
      the
      Transferee agrees that it will furnish to such parties any updated annual
      financial statements that become available on or before the date of such
      purchase, promptly after they become available.

     

    
      	
              Very
                truly yours,

               

              [TRANSFEREE]

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ANNEX
      2 TO EXHIBIT F-2

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [for
      Transferees that are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Note Registrar, with respect to the
      Notes being transferred (the “Transferred Notes”) as described in the Transferee
      Certificate to which this certification relates and to which this certification
      is an Annex:

     

    1.  As
      indicated below, the undersigned is the chief financial officer, a person
      fulfilling an equivalent function, or other executive officer of the entity
      purchasing the Transferred Certificates (the “Transferee”) or, if the Transferee
      is a “qualified institutional buyer” as that term is defined in Rule 144A under
      the Securities Act of 1933, as amended (“Rule 144A”), because the Transferee is
      part of a Family of Investment Companies (as defined below), is an executive
      officer of the investment adviser (the “Adviser”).

     

    2.  The
      Transferee is a “qualified institutional buyer” as defined in Rule 144A because
      (i) the Transferee is an investment company registered under the Investment
      Company Act of 1940, as amended, and (ii) as marked below, the Transferee alone
      owned and/or invested on a discretionary basis, or the Transferee’s Family of
      Investment Companies owned, at least $100,000,000 in securities (other than
      the
      excluded securities referred to below) as of the end of the Transferee’s most
      recent fiscal year. For purposes of determining the amount of securities owned
      by the Transferee or the Transferee’s Family of Investment Companies, the cost
      of such securities was used, unless the Transferee or any member of the
      Transferee’s Family of Investment Companies, as the case may be, reports its
      securities holdings in its financial statements on the basis of their market
      value, and no current information with respect to the cost of those securities
      has been published, in which case the securities of such entity were valued
      at
      market.

     

    
      	
              ____

            	
              The
                Transferee owned and/or invested on a discretionary basis $____________
                in
                securities (other than the excluded securities referred to below)
                as of
                the end of the Transferee’s most recent fiscal year (such amount being
                calculated in accordance with Rule 144A).

            
	 	 
	
              ____

            	
              The
                Transferee is part of a Family of Investment Companies which owned
                in the
                aggregate $_____________ in securities (other than the excluded securities
                referred to below) as of the end of the Transferee’s most recent fiscal
                year (such amount being calculated in accordance with Rule
                144A).

            

    

    

    3.  The
      term
“Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or I investment advisers that are
      affiliated (by virtue of being majority owned subsidiaries of the same parent
      or
      because one investment adviser is a majority owned subsidiary of the
      other).

     

    4.  The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Transferee or are part of the Transferee’s Family of Investment Companies, (ii)
      bank deposit notes and certificates of deposit, (iii) loan participations,
      (iv)
      repurchase agreements, (v) securities owned but subject to a repurchase
      agreement and (vi) currency, interest rate and commodity swaps. For purposes
      of
      determining the aggregate amount of securities owned and/or invested on a
      discretionary basis by the Transferee, or owned by the Transferee’s Family of
      Investment Companies, the securities referred to in this paragraph were
      excluded.

     

    5.  The
      Transferee is familiar with Rule 144A and understands that the parties to which
      this certification is being made are relying and will continue to rely on the
      statements made herein because one or more sales to the Transferee will be
      in
      reliance on Rule 144A.

     

    
      	 _______	 _______	
              Will
                the Transferee be purchasing the Transferred Notes

            
	
              Yes

            	
              No

            	
              only
                for the Transferee’s own account?

            

    

    

    6.  If
      the
      answer to the foregoing question is “no”, then in each case where the Transferee
      is purchasing for an account other than its own, such account belongs to a
      third
      party that is itself a “qualified institutional buyer” within the meaning of
      Rule 144A, and the “qualified institutional buyer” status of such third party
      has been established by the Transferee through one or more of the appropriate
      methods contemplated by Rule l44A.

     

    7.  The
      undersigned will notify the parties to which this certification is made of
      any
      changes in the information and conclusions herein. Until such notice, the
      Transferee’s purchase of the Transferred Notes will constitute a reaffirmation
      of this certification by the undersigned as of the date of such
      purchase.

     

    

     

    
      	
              Print
                Name of Transferee or Adviser

            
	
              By:

            	 
	 	
              Name

            
	 	
              Title

            
	 	 
	 	 
	
              IF
                AN ADVISER:

            
	 	 
	 
	
              Print
                Name of Transferee

            
	 	 
	 	 
	 	 
	
              Date:

            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      G-1

     

    FORM
      OF TRANSFER CERTIFICATE

    FOR
      TRANSFER FROM RESTRICTED GLOBAL SECURITY

    TO
      REGULATION S GLOBAL SECURITY

    (Transfers
      pursuant to § 4.16(e)(ii)

                          
      of the
      Indenture)                            

    

                                                                [Date]

     

    [Wells
      Fargo Bank, N.A.]

     

    
      	
              Re:

            	
              Renaissance
                Home Equity Loan Trust 2006-3 

              Home
                Equity Loan Asset-Backed Notes, Series 2006-3 (the
                “Notes”)

            

    

     

    Reference
      is hereby made to the Indenture, dated as of September 28, 2006 (the
“Indenture”), between Renaissance Home Equity Loan Trust 2006-3 (the “Issuer”),
      HSBC Bank USA, National Association (the “Indenture Trustee”) and Wells Fargo
      Bank, N.A. (the “Securities Administrator”). Capitalized terms used but not
      defined herein shall have the meanings given them in the Indenture.

     

    This
      letter relates to U.S. $____________________________ aggregate principal amount
      of Securities which are held in the form of a Restricted Global Security with
      the Depository in the name of [name of transferor]
      ___________________________________ (the “Transferor”) to effect the transfer of
      the Securities in exchange for an equivalent beneficial interest in a Regulation
      S Global Security.

     

    In
      connection with such request, the Transferor does hereby certify that such
      transfer has been effected in accordance with the transfer restrictions set
      forth in the Indenture and the private placement memorandum dated September
      28,
      2006 relating to the Class N Notes and in accordance with Rule 904 of Regulation
      S, and that:

     

    (a)  the
      offer
      of the Class N Notes was not made to a person in the United States;

     

    (b)  at
      the
      time the buy order was originated, the transferee was outside the United States
      or the Transferor and any person acting on its behalf reasonably believed that
      the transferee was outside the United States;

     

    (c)  no
      directed selling efforts have been made in contravention of the requirements
      of
      Rule 903 or 904 of Regulation S, as applicable;

     

    (d)  the
      transaction is not part of a plan or scheme to evade the registration
      requirements of the United States Securities Act of 1933, as amended (the
“Securities Act”); and

     

    (e)  the
      transferee is not a U.S. Person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    You
      and
      the Issuer are entitled to rely upon this letter and are irrevocably authorized
      to produce this letter or a copy hereof to any interested party in any
      administrative or legal proceedings or official inquiry with respect to the
      matters covered hereby. Terms used in this certificate have the meanings set
      forth in Regulation S.

     

    
      	 
	
              [Name
                of Transferor]

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	
              Date:

            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      G-2

     

    FORM
      OF TRANSFER CERTIFICATE FOR TRANSFER 

    FROM
      REGULATION S GLOBAL SECURITY

    TO
      RESTRICTED GLOBAL SECURITY

    (Transfers
      pursuant to § 4.16(e)(iii)

                              of
      the
      Indenture)                          

     

                                                                [Date]

     

    [Wells
      Fargo Bank, N.A.]

     

    
      	
              Re:

            	
              Renaissance
                Home Equity Loan Trust 2006-3

              Home
                Equity Loan Asset-Backed Notes, Series 2006-3 (the
                “Notes”)

            

    

     

    Reference
      is hereby made to the Indenture, dated as of September 28, 2006 (the
“Indenture”), between Renaissance Home Equity Loan Trust 2006-3 (the “Issuer”),
      HSBC Bank USA, National Association (the “Indenture Trustee”) and Wells Fargo
      Bank, N.A. (the “Securities Administrator”). Capitalized terms used but not
      defined herein shall have the meanings given them in the Indenture.

     

    This
      letter relates to U.S. $____________________________ aggregate principal amount
      of Class N Notes which are held in the form of a Regulations S Global Security
      in the name of [name of transferor] ___________________________________ (the
      “Transferor”) to effect the transfer of the Securities in exchange for an
      equivalent beneficial interest in a Restricted Global Security.

     

    In
      connection with such request, and in respect of such Securities, the Transferor
      does hereby certify that such Securities are being transferred in accordance
      with (i) the transfer restrictions set forth in the Indenture and the private
      placement memorandum dated September 28, 2006 relating to the Class N Notes
      and
      (ii) Rule 144A under the United States Securities Act of 1933, as amended,
      to a
      transferee that the Transferor reasonably believes is purchasing the Class
      N
      Notes for its own account or an account with respect to which the transferee
      exercises sole investment discretion, the transferee or any such account is
      a
      qualified institutional buyer within the meaning of Rule 144A, in a transaction
      meeting the requirements of Rule 144A and in accordance with any applicable
      securities laws of any state of the United States or any other
      jurisdiction.

     

    
      	 
	
              [Name
                of Transferor]

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	
              Date:

            	 

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      APPENDIX
        A

       

      DEFINITIONS

       

      “10-K
        Filing Deadline”: As specified in Section 3.13(a)(iv) of the Servicing
        Agreement.

       

      “Accepted
        Master Servicing Practices”: With respect to any Mortgage Loan, as applicable,
        either (x) those mortgage master servicing practices of prudent mortgage
        lending
        institutions which master service mortgage loans of the same type and quality
        as
        such Mortgage Loan in the jurisdiction where the related Mortgaged Property
        is
        located to the extent applicable to the Master Servicer, or (y) as provided
        in Section 4.01 of the Servicing Agreement, but in no event below the standard
        set forth in clause (x).

       

      “Accounts”:
        Collectively, the Collection Account and the Payment Account.

       

      “Additional
        Disclosure Notification”: The form of notice set forth on Exhibit K of the
        Servicing Agreement.

       

      “Additional
        Form 10-D Disclosure”: The meaning set forth in Section 3.13(a)(i) of the
        Servicing Agreement.

       

      “Additional
        Form 10-K Disclosure”: The meaning set forth in Section 3.13(a)(iv) of the
        Servicing Agreement.

       

      “Adjustable
        Rate Notes”: The Group I Notes.

       

      “Adjusted
        Net Mortgage Rate”: As to each Mortgage Loan, an amount equal to the Loan Rate
        less the sum of (i) the Servicing Fee Rate and (ii) the Master Servicing
        Fee
        Rate.

       

      “Administrator”:
        Delta Funding Corporation in the performance of its duties pursuant to Article
        VII under the Mortgage Loan Sale and Contribution Agreement.

       

      “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.

       

      “Aggregate
        Principal Amount”: With respect to any Payment Date, the sum of the Basic
        Principal Amounts for each Loan Group.

       

      “Ancillary
        Income”: All income derived from the Mortgage Loans, other than Servicing Fees
        and Master Servicing Fees, including but not limited to, late charges, fees
        received with respect to checks or bank drafts returned by the related bank
        for
        non-sufficient funds, assumption fees, optional insurance administrative
        fees
        and all other incidental fees and charges, including investment income on
        the
        Collection Account and any interest due and actually received from the related
        Mortgagor that accrued during the portion of the Prepayment Period that is
        in
        the same calendar month as the Payment Date with respect to such Mortgage
        Loan
        in connection with such Principal Prepayments in full. Ancillary Income does
        not
        include any Prepayment Charges.

       

      “Applied
        Realized Loss Amounts”: As
        to any
        Payment Date, an amount equal to the excess, if any, of (i) the aggregate
        Class
        Note Balance of the Offered
        Notes, after giving effect to all payments on such Payment Date over (ii)
        the
        Pool Balance as of the last day of the related Due Period.

       

      “Appraised
        Value”: The appraised value of the Mortgaged Property based upon the appraisal
        or the insured automated valuation report made by or for the originator at
        the
        time of the origination of the related Mortgage Loan.

       

      “Approved
        Servicer”: For purposes of Sections 3.01(a), 5.04, 6.02 and 6.04 of the
        Servicing Agreement, any established housing and home finance institution,
        bank
        or other mortgage loan or home equity loan servicer, that meets each of the
        following requirements:

       

      (i)  an
        Approved Servicer shall be acceptable to each of the Seller, the Depositor,
        the
        Master Servicer, the Securities Administrator and the Indenture
        Trustee;

       

      (ii)  an
        Approved Servicer shall be either (a) an affiliate or division of Wells Fargo
        Bank, N.A. that services mortgage loans similar to the Mortgage Loans or
        (b) a
        Person who has a rating of at least “Above Average” by S&P and either a
        rating of at least “RPS2” by Fitch Ratings, Inc. or a rating of at least “SQ2”
by Moody’s;

       

      (iii)  each
        Rating Agency shall have delivered a letter to the Indenture Trustee (such
        letter not to be an expense of the Indenture Trustee) prior to the appointment
        of the Approved Servicer stating that the proposed appointment of such Approved
        Servicer as Servicer hereunder will not result in the reduction or withdrawal
        of
        the then current ratings of the Offered Notes ; and

       

      (iv)  an
        Approved Servicer shall have a net worth of not less than
        $25,000,000.

       

      “Assessment
        of Compliance”: As defined in Section 3.09 of the Servicing Agreement.

       

      “Assignment
        of Mortgage”: With respect to any Mortgage, an assignment, notice of transfer or
        equivalent instrument, in recordable form, sufficient under the laws of the
        jurisdiction in which the related Mortgaged Property is located to reflect
        the
        pledge of the Mortgage to the Indenture Trustee.

       

      “Attestation
        Report”: As defined in Section 3.09 of the Servicing Agreement.

       

      “Authorized
        Newspaper”: A newspaper of general circulation in the Borough of Manhattan, The
        City of New York, printed in the English language and customarily published
        on
        each Business Day, whether or not published on Saturdays, Sundays or
        holidays.

       

      “Authorized
        Officer”: With respect to the Issuer, any officer of the Owner Trustee who is
        authorized to act for the Owner Trustee in matters relating to the Issuer
        and
        who is identified on the list of Authorized Officers delivered by the Owner
        Trustee to the Indenture Trustee on the Closing Date (as such list may be
        modified or supplemented from time to time thereafter) and any authorized
        officer of the Originator in its capacity as Administrator.

       

      “Available
        Funds”: As to any Payment Date, an amount equal to the sum of the following
        amounts, without duplication, with respect to the Mortgage Loans:
        (i)
        scheduled payments of principal and interest on the Mortgage Loans due during
        the related Due Period and received by the Servicer and the Master Servicer,
        net
        of (a) amounts representing the Servicing Fee and the Master Servicing Fee
        with
        respect to each Mortgage Loan and reimbursement for Monthly Advances and
        Servicing Advances and other amounts reimbursable to the Seller, the Depositor,
        the Servicer, the Master Servicer, the Securities Administrator, the Owner
        Trustee and the Indenture Trustee pursuant to Sections 5.03, 3.01(g), 6.01(b),
        6.03(b) (with respect to Servicing Transfer Costs) of the Servicing Agreement
        and Section 6.07 of the Indenture (with respect to indemnification amounts),
        as
        applicable and (b) any Net Swap Payment or Swap Termination Payment owed
        to the
        Swap Provider (other than any Swap Termination Payment owed to the Swap Provider
        as a result of a Swap Provider Trigger Event); (ii) Net Liquidation Proceeds,
        Insurance Proceeds and any Subsequent Recoveries with respect to the Mortgage
        Loans and unscheduled payments of principal and interest on the Mortgage
        Loans
        received by the Servicer and the Master Servicer during the related Prepayment
        Period (net of amounts representing the Servicing Fee and the Master Servicing
        Fee and any Ancillary Income with respect to each Mortgage Loan and
        reimbursement for Monthly Advances and Servicing Advances); (iii) the Purchase
        Price for repurchased Defective Mortgage Loans and any related Substitution
        Adjustment Amounts; (iv) payments from the Servicer and the Master Servicer
        in
        connection with (a) Monthly Advances and (b) Compensating Interest; (v) payments
        from the Seller in connection with the redemption of the Notes as provided
        in
        this Indenture, (vi) any Net Swap Payment or Swap Termination Payment (to
        the
        extent not applied to a replacement swap as required to be retained and applied
        as provided herein) received by the Indenture Trustee under the Interest
        Rate
        Swap Agreement and (vii) with respect to the first Payment Date, the Initial
        Deposit.

       

      “Available
        Funds Rate”: The Group I Available Funds Rate. 

       

      “Back-Up
        Certification”: The meaning set forth in Section 3.13(a)(iv) of the Servicing
        Agreement.

       

      “Balloon
        Loan”: Any Mortgage Loan that provided on the date of origination for scheduled
        monthly payments in level amounts substantially lower than the amount of
        the
        final scheduled payment.

       

      “Basic
        Principal Amount”: As to any Payment Date and Loan Group, an amount equal to the
        sum of the following amounts (without duplication) with respect to the Mortgage
        Loans in that Loan Group: (i) each scheduled payment of principal on a Mortgage
        Loan due during such Due Period and received by the Servicer and remitted
        by the
        Servicer to the Master Servicer on or prior to the related Determination
        Date;
        (ii) any Net Liquidation Proceeds allocable to principal, any Subsequent
        Recoveries and all full and partial principal prepayments received by the
        Servicer and remitted by the Servicer to the Master Servicer during the related
        Prepayment Period; (iii) the portion of the Purchase Price allocable to
        principal of all repurchased Defective Mortgage Loans with respect to such
        Payment Date; (iv) any Substitution Adjustment allocable to principal received
        on or prior to the previous Determination Date and not yet distributed; and
        (vi)
        any Monthly Advances with respect to scheduled payments of principal due
        during
        the related Due Period.

       

      “Basic
        Documents”: The Trust Agreement, the Certificate of Trust, the Indenture, the
        Servicing Agreement, the Mortgage Loan Sale and Contribution Agreement, the
        Interest Rate Swap Agreement and the other documents and certificates delivered
        in connection with any of the above.

       

      “Basis
        Risk Shortfall Amount”: The Group I Basis Risk Shortfall Amount or the Group II
        Basis Risk Shortfall Amount, as applicable.

       

      “Beneficial
        Owner”: With respect to any Note, the Person who is the beneficial owner of such
        Note as reflected on the books of the Depository or on the books of a Person
        maintaining an account with such Depository (directly as a Depository
        Participant or indirectly through a Depository Participant, in accordance
        with
        the rules of such Depository).

       

      “BIF”:
        The Bank Insurance Fund, as from time to time constituted, created under
        the
        Financial Institutions Reform, Recovery and Enhancement Act of 1989, or,
        if at
        any time after the execution of this Agreement the Bank Insurance Fund is
        not
        existing and performing duties now assigned to it, the body performing such
        duties on such date.

       

      “Blanket
        Mortgage”: The mortgage or mortgages encumbering a Cooperative
        Property.

       

      “Book-Entry
        Notes”: Any Offered Note or Class N Note registered in the name of the
        Depository or its nominee, ownership of which is reflected on the books of
        the
        Depository or on the books of a Person maintaining an account with such
        Depository (directly or as an indirect participant in accordance with the
        rules
        of such Depository).

       

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

       

      “Certificate
        Distribution Account”: The account or accounts created and maintained pursuant
        to Section 3.10(c) of the Trust Agreement. The Certificate Distribution Account
        shall be an Eligible Account.

       

      “Certificate
        Paying Agent”: The meaning specified in Section 3.10 of the Trust
        Agreement.

       

      “Certificate
        Percentage Interest”: With respect to each Certificate, the Certificate
        Percentage Interest stated on the face thereof.

       

      “Certificate
        Register”: The register maintained by the Certificate Registrar in which the
        Certificate Registrar shall provide for the registration of Certificates
        and of
        transfers and exchanges of Certificates.

       

      “Certificate
        Registrar”: Initially, Wells Fargo Bank, N.A., as Certificate Registrar, or any
        successor to Wells Fargo Bank, N.A. in such capacity.

       

      “Certificate
        of Trust”: The Certificate of Trust filed for the Trust pursuant to Section
        3810(a) of the Statutory Trust Statute.

       

      “Certificates”
        or “Trust Certificates”: The Renaissance Home Equity Loan Trust 2006-3 Trust
        Certificates, evidencing the beneficial ownership interest in the Issuer
        and
        executed by the Owner Trustee in substantially the form set forth in Exhibit
        A
        to the Trust Agreement.

       

      “Certificateholder”
        or “Holder”: The Person in whose name a Certificate is registered in the
        Certificate Register. Owners of Certificates that have been pledged in good
        faith may be regarded as Holders if the pledgee establishes to the satisfaction
        of the Indenture Trustee or the Owner Trustee, as the case may be, the pledgee’s
        right so to act with respect to such Certificates and that the pledgee is
        not
        the Issuer, any other obligor upon the Certificates or any Affiliate of any
        of
        the foregoing Persons.

       

      “Certification”:
        As defined in Section 3.13 of the Servicing Agreement.

       

      “Certification
        Parties”: The meaning set forth in Section 3.13(a)(iv) of the Servicing
        Agreement.

       

      “Certifying
        Person”: The meaning set forth in Section 3.13(a)(iv) of the Servicing
        Agreement.

       

      “Civil
        Relief Act”: The Servicemembers Civil Relief Act and similar state
        laws.

       

      “Class”:
        All Notes having the same designation.

       

      “Class
        AF
        Notes”: The Class AF-1 Notes, Class AF-2 Notes, Class AF-3 Notes, Class AF-4
        Notes, Class AF-5 Notes and Class AF-6 Notes.

       

      “Class
        AF-1 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AF-1 Note.

       

      “Class
        AF-2 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AF-2 Note.

       

      “Class
        AF-3 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AF-3 Note.

       

      “Class
        AF-4 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AF-4 Note.

       

      “Class
        AF-5 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AF-5 Note.

       

      “Class
        AF-6 Calculation Percentage”: For any Payment Date will be the fraction,
        expressed as a percentage, the numerator of which is the Class Note Balance
        of
        the Class AF-6 Notes, and the denominator of which is the aggregate of the
        Class
        Note Balances of the Group II Notes, in each case before giving effect to
        any
        payments in reduction of the Class Note Balances of the Group II Notes pursuant
        to Section 3.05 hereof.

       

      “Class
        AF-6 Lockout Payment Amount”: For any Payment Date will be an amount equal to
        the product of (1) the applicable Class AF-6 Lockout Percentage for that
        Payment
        Date, (2) the Class AF-6 Calculation Percentage for that Payment Date and
        (3)
        the Senior Principal Payment Amount for that Payment Date. In no event shall
        the
        Class AF-6 Lockout Payment Amount exceed the outstanding Class Note Balance
        of
        the Class AF-6 Notes or the Senior Principal Payment Amount for such Payment
        Date.

       

      “Class
        AF-6 Lockout Percentage”: For each Payment Date will be as follows:

       

      
        	
                Payment Date

              	
                Lockout
                  Percentage

              
	
                1st
                  to
                  36th 

              	
                   
                  0%

              
	
                37th
                  to
                  60th 

              	
                 
                  45%

              
	
                61st
                  to
                  72nd 

              	
                 
                  80%

              
	
                73rd
                  to
                  84th 

              	
                100%

              
	
                85th
                  and thereafter

              	
                300%

              

      

      

      “Class
        AF-6 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AF-6 Note.

       

      “Class
        AV
        Notes”: The Class AV-1 Notes, Class AV-2 Notes and Class AV-3
        Notes.

       

      “Class
        AV-1 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AV-1 Note.

       

      “Class
        AV-2 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AV-2 Note.

       

      “Class
        AV-3 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class AV-3 Note.

       

      “Class
        Interest Carryover Shortfall”: As to any Class of Offered Notes and any Payment
        Date, an amount equal to the sum of (i) the excess of the related Class Monthly
        Interest Amount for the preceding Payment Date and any Outstanding Class
        Interest Carryover Shortfall with respect to such Class on such preceding
        Payment Date, over the amount in respect of interest that is actually paid
        to
        the Holders of such Class on such preceding Payment Date plus (ii) one month’s
        interest on such excess, to the extent permitted by law, at the related Note
        Rate.

       

      “Class
        Interest Payment”: As to any Class of Offered Notes and Payment Date, an amount
        equal to the sum of (a) the related Class Monthly Interest Amount and (b)
        any
        Class Interest Carryover Shortfall for such Class of Offered Notes for such
        Payment Date.

       

      “Class
        M
        Notes” or “Mezzanine Notes”: The Class M-1 Notes, Class M-2 Notes, Class M-3
        Notes, Class M-4 Notes, Class M-5 Notes, Class M-6 Notes, Class M-7 Notes,
        Class
        M-8 Notes and Class M-9 Notes.

       

      “Class
        M-1 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-1 Note.

       

      “Class
        M-1 Principal Payment Amount: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balance of the Senior Notes has been reduced to zero, 100% of the remaining
        Principal Payment Amount, or (y) if a Delinquency Event is not in effect:
        the
        excess of (1) the sum of (A) the aggregate Class Note Balance of the Senior
        Notes (after giving effect to payments of the Senior Principal Payment Amount
        for such Payment Date) and (B) the Class Note Balance of the Class M-1 Notes
        immediately prior to such Payment Date over (2) the lesser of (A) 75.80%
        of the
        Pool Balance as of the last day of the related Due Period, minus the
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the related Due Period minus the
        OC
        Floor.

       

      “Class
        M-2 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-2 Note.

       

      “Class
        M-2 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and if the aggregate Class
        Note
        Balances of the Senior and Class M-1 Notes have been reduced to zero, 100%
        of
        the remaining Principal Payment Amount, or (y) if a Delinquency Event is
        not in
        effect: the excess of (1) the sum of (A) the aggregate Class Note Balance
        of the
        Senior Notes (after giving effect to payment of the Senior Principal Payment
        Amount for such Payment Date), (B) the Class Note Balance of the Class M-1
        Notes
        (after giving effect to payment of the Class M-1 Principal Payment Amount
        for
        such Payment Date) and (C) the Class Note Balance of the Class M-2 Notes
        immediately prior to such Payment Date over (2) the lesser of (A) 81.70%
        of the
        Pool Balance as of the last day of the related Due Period, minus the related
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the related Due Period minus the
        OC
        Floor.

       

      “Class
        M-3 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-3 Note.

       

      “Class
        M-3 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1 and Class M-2 Notes have been reduced to
        zero,
        100% of the remaining Principal Payment Amount, or (y) if a Delinquency Event
        is
        not in effect: the excess of (1) the sum of (A) the aggregate Class Note
        Balance
        of the Senior Notes (after giving effect to payment of the Senior Principal
        Payment Amount for such Payment Date), (B) the Class Note Balance of the
        Class
        M-1 Notes (after giving effect to payment of the Class M-1 Principal Payment
        Amount for such Payment Date), (C) the Class Note Balance of the Class M-2
        Notes
        (after giving effect to payment of the Class M-2 Principal Payment Amount
        for
        such Payment Date) and (D) the Class Note Balance of the Class M-3 Notes
        immediately prior to such Payment Date over (2) the lesser of (A) 85.20%
        of the
        Pool Balance as of the last day of the related Due Period, minus the
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the related Due Period minus the
        OC
        Floor.

       

      “Class
        M-4 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-4 Note.

       

      “Class
        M-4 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1, Class M-2 and Class M-3 Notes have been
        reduced to zero, 100% of the remaining Principal Payment Amount, or (y) if
        a
        Delinquency Event is not in effect: the excess of (1) the sum of (A) the
        aggregate Class Note Balance of the Senior Notes (after giving effect to
        payment
        of the Senior Principal Payment Amount for such Payment Date), (B) the Class
        Note Balance of the Class M-1 Notes (after giving effect to payment of the
        Class
        M-1 Principal Payment Amount for such Payment Date), (C) the Class Note Balance
        of the Class M-2 Notes (after giving effect to payment of the Class M-2
        Principal Payment Amount for such Payment Date), (D) the Class Note Balance
        of
        the Class M-3 Notes (after giving effect to payment of the Class M-3 Principal
        Payment Amount for such Payment Date) and (E) the Class Note Balance of the
        Class M-4 Notes immediately prior to such Payment Date over (2) the lesser
        of
        (A) 88.60% of the Pool Balance as of the last day of the related Due Period,
        minus the Subordination Required Overcollateralization Amount for that Payment
        Date and (B) the Pool Balance as of the last day of the related Due Period
        minus
        the OC Floor.

       

      “Class
        M-5 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-5 Note.

       

      “Class
        M-5 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1, Class M-2, Class M-3 and Class M-4 Notes
        have
        been reduced to zero, 100% of the remaining Principal Payment Amount, or
        (y) if
        a Delinquency Event is not in effect: the excess of (1) the sum of (A) the
        aggregate Class Note Balance of the Senior Notes (after giving effect to
        payment
        of the Senior Principal Payment Amount for such Payment Date), (B) the Class
        Note Balance of the Class M-1 Notes (after giving effect to payment of the
        Class
        M-1 Principal Payment Amount for such Payment Date), (C) the Class Note Balance
        of the Class M-2 Notes (after giving effect to payment of the Class M-2
        Principal Payment Amount for such Payment Date), (D) the Class Note Balance
        of
        the Class M-3 Notes (after giving effect to payment of the Class M-3 Principal
        Payment Amount for such Payment Date), (E) the Class Note Balance of the
        Class
        M-4 Notes (after giving effect to payment of the Class M-4 Principal Payment
        Amount for such Payment Date) and (F) the Class Note Balance of the Class
        M-5
        Notes immediately prior to such Payment Date over (2) the lesser of (A) 91.50%
        of the Pool Balance as of the last day of the related Due Period, minus the
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the related Due Period minus the
        OC
        Floor.

       

      “Class
        M-6 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-6 Note.

       

      “Class
        M-6 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1, Class M-2, Class M-3, Class M-4 and Class
        M-5
        Notes have been reduced to zero, 100% of the remaining Principal Payment
        Amount,
        or (y) if a Delinquency Event is not in effect: the excess of (1) the sum
        of (A)
        the aggregate Class Note Balance of the Senior Notes (after giving effect
        to
        payment of the Senior Principal Payment Amount for such Payment Date), (B)
        the
        Class Note Balance of the Class M-1 Notes (after giving effect to payment
        of the
        Class M-1 Principal Payment Amount for such Payment Date), (C) the Class
        Note
        Balance of the Class M-2 Notes (after giving effect to payment of the Class
        M-2
        Principal Payment Amount for such Payment Date), (D) the Class Note Balance
        of
        the Class M-3 Notes (after giving effect to payment of the Class M-3 Principal
        Payment Amount for such Payment Date), (E) the Class Note Balance of the
        Class
        M-4 Notes (after giving effect to payment of the Class M-4 Principal Payment
        Amount for such Payment Date), (F) the Class Note Balance of the Class M-5
        Notes
        (after giving effect to payment of the Class M-5 Principal Payment Amount
        for
        such Payment Date) and (G) the Class Note Balance of the Class M-6 Notes
        immediately prior to such Payment Date over (2) the lesser of (A) 94.00%
        of the
        Pool Balance as of the last day of the related Due Period, minus the
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the related Due Period minus the
        OC
        Floor.

       

      “Class
        M-7 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-7 Note.

       

      “Class
        M-7 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1, Class M-2, Class M-3, Class M-4, Class
        M-5
        and Class M-6 Notes have been reduced to zero, 100% of the remaining Principal
        Payment Amount, or (y) if a Delinquency Event is not in effect: the excess
        of
        (1) the sum of (A) the aggregate Class Note Balance of the Senior Notes (after
        giving effect to payments of the Senior Principal Payment Amount for such
        Payment Date), (B) the Class Note Balance of the Class M-1 Notes (after giving
        effect to payment of the Class M-1 Principal Payment Amount for such Payment
        Date), (C) the Class Note Balance of the Class M-2 Notes (after giving effect
        to
        payment of the Class M-2 Principal Payment Amount for such Payment Date),
        (D)
        the Class Note Balance of the Class M-3 Notes (after giving effect to payment
        of
        the Class M-3 Principal Payment Amount for such Payment Date), (E) the Class
        Note Balance of the Class M-4 Notes (after giving effect to payment of the
        Class
        M-4 Principal Payment Amount for such Payment Date), (F) the Class Note Balance
        of the Class M-5 Notes (after giving effect to payment of the Class M-5
        Principal Payment Amount for such Payment Date), (G) the Class Note Balance
        of
        the Class M-6 Notes (after giving effect to payment of the Class M-6 Principal
        Payment Amount for such Payment Date) and (H) the Class Note Balance of the
        Class M-7 Notes immediately prior to such Payment Date over (2) the lesser
        of
        (A) 96.20% of the Pool Balance as of the last day of the related Due Period,
        minus the Subordination Required Overcollateralization Amount for that Payment
        Date and (B) the Pool Balance as of the last day of the related Due Period
        minus
        the OC Floor.

       

      “Class
        M-8 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-8 Note.

       

      “Class
        M-8 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1, Class M-2, Class M-3, Class M-4, Class
        M-5,
        Class M-6 and Class M-7 Notes have been reduced to zero, 100% of the remaining
        Principal Payment Amount, or (y) if a Delinquency Event is not in effect:
        the
        excess of (1) the sum of (A) the aggregate Class Note Balance of the Senior
        Notes (after giving effect to payments of the Senior Principal Payment Amount
        for such Payment Date), (B) the Class Note Balance of the Class M-1 Notes
        (after
        giving effect to payment of the Class M-1 Principal Payment Amount for such
        Payment Date), (C) the Class Note Balance of the Class M-2 Notes (after giving
        effect to payment of the Class M-2 Principal Payment Amount for such Payment
        Date), (D) the Class Note Balance of the Class M-3 Notes (after giving effect
        to
        payment of the Class M-3 Principal Payment Amount for such Payment Date),
        (E)
        the Class Note Balance of the Class M-4 Notes (after giving effect to payment
        of
        the Class M-4 Principal Payment Amount for such Payment Date), (F) the Class
        Note Balance of the Class M-5 Notes (after giving effect to payment of the
        Class
        M-5 Principal Payment Amount for such Payment Date), (G) the Class Note Balance
        of the Class M-6 Notes (after giving effect to payment of the Class M-6
        Principal Payment Amount for such Payment Date), (H) the Class Note Balance
        of
        the Class M-7 Notes (after giving effect to payment of the Class M-7 Principal
        Payment Amount) and (I) the Class Note Balance of the Class M-8 Notes
        immediately prior to such Payment Date over (2) the lesser of (A) 98.20%
        of the
        Pool Balance as of the last day of the related Due Period, minus the
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the related Due Period minus the
        OC
        Floor.

       

      “Class
        M-9 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-1 and designated as
        a
        Class M-9 Note.

       

      “Class
        M-9 Principal Payment Amount”: As to any Payment Date on or after the Stepdown
        Date, (x) if a Delinquency Event is in effect and the aggregate Class Note
        Balances of the Senior, Class M-1, Class M-2, Class M-3, Class M-4, Class
        M-5,
        Class M-6, Class M-7 and Class M-8 Notes have been reduced to zero, 100%
        of the
        remaining Principal Payment Amount, or (y) if the Senior, Class M-1, Class
        M-2,
        Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Notes
        are
        outstanding and a Delinquency Event is not in effect: the excess of (1) the
        sum
        of (A) the aggregate Class Note Balance of the Senior Notes (after giving
        effect
        to payments of the Senior Principal Payment Amount for such Payment Date),
        (B)
        the Class Note Balance of the Class M-1 Notes (after giving effect to payment
        of
        the Class M-1 Principal Payment Amount for such Payment Date), (C) the Class
        Note Balance of the Class M-2 Notes (after giving effect to payment of the
        Class
        M-2 Principal Payment Amount for such Payment Date), (D) the Class Note Balance
        of the Class M-3 Notes (after giving effect to payment of the Class M-3
        Principal Payment Amount for such Payment Date), (E) the Class Note Balance
        of
        the Class M-4 Notes (after giving effect to payment of the Class M-4 Principal
        Payment Amount for such Payment Date), (F) the Class Note Balance of the
        Class
        M-5 Notes (after giving effect to payment of the Class M-5 Principal Payment
        Amount for such Payment Date), (G) the Class Note Balance of the Class M-6
        Notes
        (after giving effect to payment of the Class M-6 Principal Payment Amount
        for
        such Payment Date), (H) the Class Note Balance of the Class M-7 Notes (after
        giving effect to payment of the Class M-7 Principal Payment Amount), (I)
        the
        Class Note Balance of the Class M-8 Notes (after giving effect to payment
        of the
        Class M-8 Principal Payment Amount) and (J) the Class Note Balance of the
        Class
        M-9 Notes immediately prior to such Payment Date over (2) the lesser of (A)
        the
        Pool Balance as of the last day of the related Due Period, minus the
        Subordination Required Overcollateralization Amount for that Payment Date
        and
        (B) the Pool Balance as of the last day of the Due Period minus the OC
        Floor.

       

      “Class
        Monthly Interest Amount”: As to any Payment Date and Class of Offered Notes,
        interest for the related Interest Period at the related Note Rate on the
        related
        Class Note Balance immediately prior to that Payment Date.

       

      “Class
        N
        Interest Payment Amount”: With respect to the Class N-1 and Class N-2 Notes and
        any Payment Date, an amount equal to interest accrued during the related
        Interest Period on the related outstanding Class Note Balance at the related
        Note Rate, plus all interest accrued for prior Interest Periods but not paid
        on
        the related Payment Dates or any Payment Dates subsequent thereto (together
        with
        interest thereon at the related Note Rate).

       

      “Class
        N
        Interest Shortfall”: With respect to any Payment Date, an amount equal to the
        Class N Interest Payment Amount for such Payment Date less Available Funds
        remaining after payments pursuant to Section 3.05(b)(i) through Section
        3.05(b)(xvi) hereof.

       

      “Class
        N-1 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-2 and designated as
        a
        Class N-1 Note.

       

      “Class
        N-2 Note”: Any Note executed and authenticated by the Securities Administrator
        substantially in the form attached hereto as Exhibit A-2 and designated as
        a
        Class N-2 Note.

       

      “Class
        N
        Principal Payment Amount”: With respect to the Class N Notes and any Payment
        Date, the lesser of (i) the related outstanding Class Note Balance immediately
        prior to such Payment Date and (ii) any Available Funds remaining after the
        payment of the related Class N Interest Payment Amount for such Payment
        Date.

       

      “Class
        Note Balance”: As of any date of determination and Class of Offered Notes or the
        Class N Notes, the Original Class Note Balance for such Class reduced by
        the sum
        of all amounts previously paid to the Noteholders of such Class in respect
        of
        principal from the Group I Principal Payment Amount or Group II Principal
        Payment Amount, as applicable, on all previous Payment Dates and, in the
        case of
        any Class of Mezzanine Notes, reduced by any related Applied Realized Loss
        Amounts allocated to such Class on prior Payment Dates; provided, however,
        if
        the context so specifies, the Class Note Balance will also be reduced by
        all
        payments of principal and allocations of related Applied Realized Loss Amounts
        on the Payment Date that is the date of determination.

       

      “Class
        Principal Carryover Shortfall”: As to any Class of Mezzanine Notes and any
        Payment Date, the excess, if any, of (i) the sum of (x) the amount of the
        reduction in the Class Note Balance of that Class of Mezzanine Notes on such
        Payment Date and (y) the amount of such reductions contemplated by clause
        (x)
        above on prior Payment Dates over (ii) the amount distributed in respect
        of such
        reductions of principal thereof on prior Payment Dates.

       

      “Closing
        Date”: September 28, 2006.

       

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

       

      “Collateral”:
        The meaning specified in the Granting Clause of the Indenture.

       

      “Collection
        Account”: The custodial account or accounts created and maintained for the
        benefit of the Noteholders pursuant to Section 3.02(b) of the Servicing
        Agreement. The Collection Account shall be an Eligible Account.

       

      “Combined
        Loan-to-Value Ratio” or “CLTV”: With respect to any Mortgage Loan that is not
        secured by a first priority lien on the Mortgaged Property, the sum of the
        original principal balance of such Mortgage Loan and the outstanding principal
        balance of the related First Lien, if any, as of the date of origination
        of the
        Mortgage Loan, divided by the Appraised Value.

       

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

       

      “Compensating
        Interest”: As to any Payment Date, the amount calculated pursuant to Section
        3.14 of the Servicing Agreement.

       

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

       

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

       

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

       

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

       

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

       

      “Corporate
        Trust Office”: The designated offices of the Securities Administrator at which
        at any particular time its corporate trust business with respect to this
        Indenture shall be administered, which offices at the date of the execution
        of
        this Indenture are located for Note transfer purposes at: Wells Fargo Center,
        Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479-0113, Attention:
        Corporate Trust Services—Renaissance HEL Trust 2006-3 and for all other purposes
        at: P.O. Box 98, Columbia, Maryland 21046, Attention: Corporate Trust
        Services—Renaissance HEL Trust 2006-3 or in the case of overnight deliveries,
        9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Corporate Trust
        Services—Renaissance HEL Trust 2006-3 and which are the respective addresses to
        which notices to and correspondence with the Securities Administrator should
        be
        directed; and the designated office of the Indenture Trustee at which at
        any
        particular time its corporate trust business with respect to this Indenture
        shall be administered, which office at the date of the execution of this
        Indenture is located at 452
        Fifth
        Avenue, New York, New York 10018, Attention: Corporate Trust and Loan
        Agency/Renaissance HEL Trust 2006-3,
        and which is the address to which notices to and correspondence with the
        Indenture Trustee should be directed.

       

      “Cumulative
        Loss Event”: For any Payment Date in the applicable period below, if Cumulative
        Net Losses exceed the applicable percentage set forth below for the related
        Payment Date: 

       

      
        	
                Number
                  of

                Payment
                  Dates

              	
                Percentages

              
	
                25th
                  -
                  36th

              	
                1.05%
                  for the first month plus an additional 1/12th of 1.35% for each
                  month
                  thereafter

              
	
                37th
                  -
                  48th

              	
                2.40%
                  for the first month plus an additional 1/12th of 1.60% for each
                  month
                  thereafter

              
	
                49th
                  -
                  60th

              	
                4.00%
                  for the first month plus an additional 1/12th of 1.25% for each
                  month
                  thereafter

              
	
                61st
                  -
                  72nd

              	
                5.25%
                  for the first month plus an additional 1/12th of 0.90% for each
                  month
                  thereafter

              
	
                73rd
                  -84th

                85th
                  and thereafter

              	
                6.15%
                  for the first month plus an additional 1/12th of 0.25% for each
                  month
                  thereafter

                6.40%

              

      

      

      “Cumulative
        Net Losses”: As of any date of determination, the aggregate of the Liquidation
        Loan Losses incurred from the Cut-Off Date through the end of the calendar
        month
        preceding such date of determination, expressed as a percentage of the related
        Cut-Off Date Pool Balance.

       

      “Curtailment”:
        With respect to a Mortgage Loan, any payment of principal received during
        a Due
        Period as part of a payment that is in excess of the amount of the Monthly
        Payment due for such Due Period and which is not intended to satisfy the
        Mortgage Loan in full or intended to cure a delinquency.

       

      “Custodial
        Agreement”: Any Custodial Agreement, as amended and supplemented from time to
        time, dated as of the date hereof, by and among the Indenture Trustee, the
        Seller, the Servicer, the Depositor, the Master Servicer and the Custodian
        substantially in the form set forth as Exhibit E.

       

      “Custodian”:
        The Person acting as custodian under a Custodial Agreement from time to time.
        As
        of the Closing Date, the initial Custodian shall be Wells Fargo Bank,
        N.A.

       

      “Cut-Off
        Date”: As to any Mortgage Loan, the later of (x) close of business on September
        1, 2006 and (y) date of origination of such Mortgage Loan.

       

      “Cut-Off
        Date Pool Balance”: The aggregate Cut-Off Date Principal Balance of the Mortgage
        Loans (i.e., $824,999,010.80).

       

      “Cut-Off
        Date Principal Balance”: With respect to any Mortgage Loan, the unpaid principal
        balance thereof as of the related Cut-Off Date after giving effect to payments
        of principal due on or before the Cut-Off Date (or as of the applicable date
        of
        substitution with respect to an Eligible Substitute Mortgage Loan).

       

      “Default”:
        Any occurrence which is or with notice or the lapse of time or both would
        become
        an Event of Default.

       

      “Defective
        Mortgage Loan”: Any Mortgage Loan subject to repurchase or substitution pursuant
        to Section 2.1(f), 3.1 or 3.2 of the Mortgage Loan Sale and Contribution
        Agreement.

       

      “Definitive
        Notes”: The meaning specified in Section 4.06 of the Indenture.

       

      “Delinquency
        Amount”: As to any Payment Date, the aggregate Principal Balance of the Mortgage
        Loans that are any of the following: (a) 60 days or more delinquent (including
        any such delinquent Mortgage Loans that are in bankruptcy or in foreclosure)
        and
        (b) REO Properties, in each case, as of the last day of the preceding
        month.

       

      “Delinquency
        Event”: A Delinquency Event shall be in effect on a Payment Date, if the related
        Three Month Delinquency Rate exceeds 43.85% of the Senior Enhancement Percentage
        for such Payment Date.

       

      “Deposit
        Date”: As to any Payment Date, the Business Day preceding such Payment
        Date.

       

      “Depositor”:
        Renaissance Mortgage Acceptance Corp., a Delaware corporation, or any successor
        thereto.

       

      “Depository”:
        The initial Depository shall be The Depository Trust Company, the nominee
        of
        which is Cede & Co., as the registered Holder of the Notes. The Depository
        shall at all times be a “clearing corporation” as defined in Section 8-102(3) of
        the UCC 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”: As to any Payment Date, the fourth Business Day preceding such Payment
        Date.

       

      “Due
        Date”: As to any Mortgage Loan, the day of the month on which the Monthly
        Payment is due from the Mortgagor.

       

      “Due
        Period”: With respect to each Payment Date, the period from and including the
        second day of the month preceding the month in which such Payment Date occurs
        to
        and including the first day of the month of such Payment Date.

       

      “Electronic
        Ledger”: The electronic master record of home equity mortgage loans maintained
        by the Seller.

       

      “Eligible
        Account”: A segregated account that is (i) maintained with a depository
        institution whose debt obligations at the time of any deposit therein have
        the
        highest short-term debt rating by the Rating Agencies and whose accounts
        are
        insured to the maximum extent provided by either the Savings Association
        Insurance Fund (“SAIF”) or the Bank Insurance Fund (“BIF”) of the Federal
        Deposit Insurance Corporation and which has a minimum long-term unsecured
        debt
        rating of “A” by S&P and Fitch and “A2” by Moody’s, and which is any of (A)
        a federal savings and loan association duly organized, validly existing and
        in
        good standing under the federal banking laws, (B) an institution duly organized,
        validly existing and in good standing under the applicable banking laws of
        any
        state, (C) a national banking association duly organized, validly existing
        and
        in good standing under the federal banking laws, (D) a principal subsidiary
        of a
        bank holding company; (ii) a segregated trust account maintained with the
        corporate trust department of a federal or state chartered depository
        institution or trust company, having capital and surplus of not less than
        $50,000,000, acting in its fiduciary capacity; (iii) maintained at Wells
        Fargo
        Bank, N.A., so long as its debt obligations at the time of any deposit therein
        have a short-term debt rating of at least “A-1” for S&P, “P-1” for Moody’s
        and “F1” for Fitch; or (iv) otherwise acceptable to each Rating Agency as
        evidenced by a letter from each Rating Agency to the Securities Administrator,
        without reduction or withdrawal of the then current ratings of the
        Notes.

       

      “Eligible
        Investments”: One or more of the following (excluding any callable investments
        purchased at a premium):

       

      (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 that such obligations are backed by the full faith and
        credit
        of the United States;

       

      (ii)  repurchase
        agreements on obligations specified in clause (i) maturing not more than
        three
        (3) months from the date of acquisition thereof, provided that the short-term
        unsecured debt obligations of the party agreeing to repurchase such obligations
        are at the time rated by each Rating Agency in its highest short-term rating
        category (which is “A-1+” for S&P, “P-1” for Moody’s and “F1+” for
        Fitch);

       

      (iii)  certificates
        of deposit, time deposits and bankers’ acceptances of any U.S. depository
        institution or trust company incorporated under the laws of the United States
        or
        any state thereof and subject to supervision and examination by federal and/or
        state banking authorities, provided that the unsecured short-term debt
        obligations of such depository institution or trust company at the date of
        acquisition thereof have been rated by S&P and Moody’s in their respective
        highest unsecured short-term debt rating category;

       

      (iv)  commercial
        paper (having original maturities of not more than ninety (90) days) of any
        corporation incorporated under the laws of the United States or any state
        thereof which on the date of acquisition has been rated by each Rating Agency
        that rates such securities in their respective highest short term rating
        categories;

       

      (v)  short
        term investment funds (“STIFS”) sponsored by any trust company or national
        banking association incorporated under the laws of the United States or any
        state thereof which on the date of acquisition has been rated by each Rating
        Agency in their respective highest rating category of long term unsecured
        debt;

       

      (vi)  interests
        in any money market fund which at the date of acquisition of the interests
        in
        such fund including any such fund that is managed by the Indenture Trustee
        or
        the Securities Administrator or an Affiliate of the Indenture Trustee or
        the
        Securities Administrator or for which the Indenture Trustee or the Securities
        Administrator or an Affiliate of the Indenture Trustee or the Securities
        Administrator acts as advisor and throughout the time as the interest is
        held in
        such fund has a rating of “AAA” by S&P or “Aaa” by Moody’s ;
        and

       

      (vii)  other
        obligations or securities that are acceptable to each Rating Agency as an
        Eligible Investment hereunder and will not result in a reduction in the then
        current rating of the Notes, as evidenced by a letter to such effect from
        such
        Rating Agency and with respect to which the Indenture Trustee and the Securities
        Administrator have received confirmation that, for tax purposes, the investment
        complies with the last clause of this definition;

       

      provided
        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; provided, further,
        that
        no instrument described hereunder may be purchased at a price greater than
        par
        if such instrument may be prepaid or called at a price less than its purchase
        price prior to its stated maturity; and provided further, that if S&P is
        rating any of the Notes, an instrument described hereunder shall be rated
        the
        applicable rating of S&P set forth above.

       

      “Eligible
        Substitute Mortgage Loan”: A Mortgage Loan substituted by the Seller for a
        Defective Mortgage Loan which must, on the date of such substitution: (i)
        have
        an outstanding Principal Balance after deducting all scheduled principal
        payments due in the month of substitution (or in the case of a substitution
        of
        more than one Mortgage Loan for a Defective Mortgage Loan, an aggregate
        Principal Balance), not in excess of and not less than 95% of the Principal
        Balance of the Defective Mortgage Loan; (ii) have a Loan Rate not less than
        the
        Loan Rate of the Defective Mortgage Loan and not more than 1% in excess of
        the
        Loan Rate of such Defective Mortgage Loan; (iii) if such Defective Mortgage
        Loan
        is an adjustable-rate Mortgage Loan, have a Loan Rate based on the same Loan
        Index with adjustments to such Loan Rate made on the same interval between
        Interest Rate Adjustment Dates as that of the Defective Mortgage Loan and
        have a
        Margin that is not less than the Margin of the Defective Mortgage Loan and
        not
        more than one hundred (100) basis points higher than the Margin for the
        Defective Mortgage Loan; (iv) have a Mortgage of the same or higher level
        of
        priority as the Mortgage relating to the Defective Mortgage Loan at the time
        such Mortgage was transferred to the Trust; (v) have a remaining term to
        maturity not more than six (6) months earlier and not later than the remaining
        term to maturity of the Defective Mortgage Loan; (vi) comply with each
        representation and warranty set forth in the Mortgage Loan Sale and Contribution
        Agreement (deemed to be made as of the date of substitution); (vii) have
        an
        original CLTV not greater than that of the Defective Mortgage Loan; (viii)
        if
        such Defective Mortgage Loan is an adjustable-rate Mortgage Loan, have a
        Lifetime Rate Cap and a Periodic Rate Cap no lower than the Lifetime Rate
        Cap
        and Periodic Rate Cap, respectively, applicable to such Defective Mortgage
        Loan;
        (ix) have a credit risk not less than the credit risk of the Defective Mortgage
        Loan; and (x) be of the same type of Mortgaged Property as the Defective
        Mortgage Loan or a detached single family residence. More than one Eligible
        Substitute Mortgage Loan may be substituted for a Defective Mortgage Loan
        if
        such Eligible Substitute Mortgage Loans meet the foregoing attributes in
        the
        aggregate.

       

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

       

      “Escrow
        Repair Loan”: A Mortgage Loan as to which the Servicer holds a portion of the
        proceeds in escrow pending repair of the related Mortgaged Property as specified
        in the related Mortgage and Mortgage Note.

       

      “Event
        of
        Default”: With respect to the Indenture, any one of the following events
        (whatever the reason for such Event of Default and whether it shall be voluntary
        or involuntary or be effected by operation of law or pursuant to any judgment,
        decree or order of any court or any order, rule or regulation of any
        administrative or governmental body):

       

      (i)  a
        failure
        by the Issuer to pay (a) with respect to the Offered Notes, (1) the Class
        Monthly Interest Amount or the Group I Principal Payment Amount or the Group
        II
        Principal Payment Amount on any Payment Date, which failure
        is not cured within 3 Business Days
        or (2)
        the Class Interest Carryover Shortfall, but only, with respect to clause
        (2), to
        the extent funds are available to make such payment as provided in the Indenture
        or (b) with respect to the Class N Notes, all interest and principal due
        on the
        Class N Notes by the Final Stated Maturity Date; or

       

      (ii)  the
        failure by the Issuer on the Final Stated Maturity Date to reduce the Class
        Note
        Balance of any of the Notes to zero; or

       

      (iii)  there
        occurs a default in the observance or performance of any covenant or agreement
        of the Issuer made in the Indenture, or any representation or warranty of
        the
        Issuer made in the Indenture or in any certificate or other writing delivered
        pursuant hereto or in connection herewith proving to have been incorrect
        in any
        material respect as of the time when the same shall have been made, and such
        default shall continue or not be cured, or the circumstance or condition
        in
        respect of which such representation or warranty was incorrect shall not
        have
        been eliminated or otherwise cured, for a period of 30 days after there shall
        have been given, by registered or certified mail, to the Issuer by the Indenture
        Trustee or to the Issuer and the Indenture Trustee by the Holders of at least
        25% of the aggregate Note Balance of the Outstanding Notes, a written notice
        specifying such default or incorrect representation or warranty and requiring
        it
        to be remedied and stating that such notice is a notice of default hereunder;
        or

       

      (iv)  there
        occurs the filing of a decree or order for relief by a court having jurisdiction
        in the premises in respect of the Issuer or any substantial part of the Trust
        in
        an involuntary case under any applicable federal or state bankruptcy, insolvency
        or other similar law now or hereafter in effect, or appointing a receiver,
        liquidator, assignee, custodian, trustee, sequestrator or similar official
        of
        the Issuer or for any substantial part of the Trust, or ordering the winding-up
        or liquidation of the Issuer’s affairs, and such decree or order shall remain
        unstayed and in effect for a period of 60 consecutive days; or

       

      (v)  there
        occurs the commencement by the Issuer of a voluntary case under any applicable
        federal or state bankruptcy, insolvency or other similar law now or hereafter
        in
        effect, or the consent by the Issuer to the entry of an order for relief
        in an
        involuntary case under any such law, or the consent by the Issuer to the
        appointment or taking possession by a receiver, liquidator, assignee, custodian,
        trustee, sequestrator or similar official of the Issuer or for any substantial
        part of the assets of the Trust, or the making by the Issuer of any general
        assignment for the benefit of creditors, or the failure by the Issuer generally
        to pay its debts as such debts become due, or the taking of any action by
        the
        Issuer in furtherance of any of the foregoing; or

       

      (vi)  a
        failure
        of the Trust to be wholly owned by a REIT or a Qualified REIT
        Subsidiary.

       

      “Excess
        Interest”: As to any Payment Date and the Offered Notes, the Available Funds
        remaining after the application of payments pursuant to Section 3.05(b)(iii)(1)
        through (12).

       

      “Excess
        Overcollateralization Amount”: As to any Payment Date, the lesser of (i) the
        Basic Principal Amount for such Payment Date and (ii) the excess, if any,
        of (x)
        the Overcollateralization Amount (assuming 100% of the Basic Principal Amount
        is
        paid on the Offered Notes) over (y) the Required Overcollateralization
        Amount.

       

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

       

      “Expenses”:
        The meaning specified in Section 7.02 of the Trust Agreement.

       

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

       

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

       

      “Final
        Stated Maturity Date”: The Payment Date in November 2036.

       

      “First
        Lien”: With respect to any Mortgage Loan which is a second priority lien, the
        mortgage loan relating to the corresponding Mortgaged Property having a first
        priority lien.

       

      “Fitch”:
        Fitch Ratings, or its successor in interest

       

      “Fixed
        Rate Notes”: The Class AF and Class M Notes.

       

      “Fixed
        Swap Payment”: With respect to any Payment Date, a fixed amount equal to the
        product of (i) the Strike Rate, (ii) the Notional Amount (as defined in the
        Interest Rate Swap Agreement) for that Payment Date, and (iii) a fraction,
        the
        numerator of which is 30 (or, for the first Payment Date, the number of days
        elapsed from and including the effective date (as defined in the Interest
        Rate
        Swap Agreement) to but excluding the first Payment Date, determined on a
        30/360
        basis) and the denominator of which is 360.

       

      “Floating
        Swap Payment”: With respect to any Payment Date, a floating amount equal to the
        product of (i) Swap LIBOR, (ii) the Notional Amount (as defined in the Interest
        Rate Swap Agreement) for that Payment Date, and (iii) a fraction, the numerator
        of which is the actual number of days in the related calculation period and
        the
        denominator of which is 360.

       

      “Foreclosure
        Profits”: With respect to a Liquidated Mortgage Loan, the amount, if any, by
        which (i) the aggregate of its Net Liquidation Proceeds exceeds (ii) the
        related
        Principal Balance (plus accrued and unpaid interest thereon at the applicable
        Loan Rate from the date interest was last paid (or advanced and not reimbursed)
        through the date of receipt of the final Liquidation Proceeds) of such
        Liquidated Mortgage Loan immediately prior to the final recovery of its
        Liquidation Proceeds.

       

      “Form
        8-K
        Disclosure Information”: The meaning set forth in Section 3.13(a)(iii) of the
        Servicing Agreement.

       

      “Freddie
        Mac”: Freddie Mac (also known as the Federal Home Loan Mortgage
        Corporation).

       

      “Free
        Writing Prospectus”: The
        free
        writing prospectus supplement, dated September 7, 2006, relating to the public
        offering of the Offered Notes. 

       

      “GAAP”:
        United States generally accepted accounting principles as in effect from
        time to
        time, consistently applied.

       

      “Grant”:
        Pledge, bargain, sell, warrant, alienate, remise, release, convey, assign,
        transfer, create, and grant a lien upon and a security interest in and right
        of
        set-off against, deposit, set over and confirm pursuant to the Indenture.
        A
        Grant of the Collateral or of any other agreement or instrument shall include
        all rights, powers and options (but none of the obligations) of the granting
        party thereunder, including the immediate and continuing right to claim for,
        collect, receive and give receipt for principal and interest payments in
        respect
        of such collateral or other agreement or instrument and all other moneys
        payable
        thereunder, to give and receive notices and other communications, to make
        waivers or other agreements, to exercise all rights and options, to bring
        proceedings in the name of the granting party or otherwise, and generally
        to do
        and receive anything that the granting party is or may be entitled to do
        or
        receive thereunder or with respect thereto.

       

      “Group
        I
        Available Funds Rate”: As to any Payment Date and the Group I Notes, a rate per
        annum (adjusted for the actual number of days in the related Interest Period)
        equal to the product of (x) a fraction, expressed as a percentage, the numerator
        of which is the amount of interest received on the Group I Mortgage Loans
        during
        the related Due Period minus (i) the sum of the servicing fees and master
        servicing fees with respect to each Group I Mortgage Loan and any other amounts
        reimbursable to the Seller, Depositor, Servicer, Master Servicer, Securities
        Administrator, Owner Trustee or Indenture Trustee and (ii) an amount equal
        to
        any Net Swap Payment and Swap Termination Payment, if any, payable by the
        Trust
        (other than Swap Termination Payments resulting from a Swap Provider Trigger
        Event), and the denominator of which is the aggregate Note Balance of the
        Group
        I Notes immediately prior to such Payment Date, and (y) 12.

       

      “Group
        I
        Basis Risk Shortfall Amount”: As to any Payment Date and each class of Group I
        Notes, the sum of (a) the excess, if any, of the related Class Monthly Interest
        Amount, calculated at the lesser of (i) the sum of one-month LIBOR and the
        applicable note margin and (ii) 14.00% over the related Class Monthly Interest
        Amount for the applicable Payment Date; (b) any Group I Basis Risk Shortfall
        Amount remaining unpaid from the prior Payment Date; and (c) accrued interest
        on
        the amount in clause (b) calculated at the lesser of clause (a)(i) or (a)(ii)
        herein for the most recently ended interest Period.

       

      “Group
        I
        Notes”: Class AV Notes.

       

      “Group
        I
        Parity Amount”: For any Payment Date, the greater of (i) zero and (ii) the
        excess, if any, of (x) the aggregate Class Note Balance of the Group I Notes
        immediately prior to such Payment Date over (y) the aggregate Principal Balance
        of the Group I Mortgage Loans as of the last day of the related Due
        Period.

       

      “Group
        I
        Principal Payment Amount”: With respect to any Payment Date, the lesser of (A)
        the greatest of (1) the product of (x) the Senior Principal Payment Amount
        for
        such Payment Date and (y) a fraction, the numerator of which is the excess
        of
        (i) the aggregate Principal Balance of the Group I Mortgage Loans as of the
        first day of the related Due Period over (ii) the aggregate Principal Balance
        of
        the Group I Mortgage Loans as of the last day of the related Due Period,
        and the
        denominator of which is the excess of (i) the Pool Balance as of the first
        day
        of the related Due Period over (ii) the Pool Balance as of the last day of
        the
        related Due Period, (2) the Group I Parity Amount and (3) the excess of (i)
        the
        Senior Principal Payment Amount for such Payment Date over (ii) the aggregate
        Class Note Balance of the Group II Notes immediately prior to such Payment
        Date
        and (B) the aggregate Class Note Balance of the Group I Notes immediately
        prior
        to such Payment Date.

       

      “Group
        II
        Notes”: The Class AF Notes.

       

      “Group
        II
        Principal Payment Amount”: With respect to any Payment Date, the excess of (1)
        the Senior Principal Payment Amount for such Payment Date and (2) the Group
        I
        Principal Payment Amount for such Payment Date.

       

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

       

      “Indemnified
        Party”: The meaning specified in Section 7.02 of the Trust
        Agreement.

       

      “Indenture”:
        The indenture dated as of September 28, 2006, among the Issuer, the Indenture
        Trustee and the Securities Administrator, relating to the Renaissance Home
        Equity Loan Trust 2006-3, Home Equity Loan Asset-Backed Notes, Series
        2006-3.

       

      “Indenture
        Trustee”: HSBC Bank USA, National Association, and its successors and assigns or
        any successor indenture trustee appointed pursuant to the terms of the
        Indenture.

       

      “Independent”:
        When used with respect to any specified Person, the Person (i) is in fact
        independent of the Issuer, any other obligor on the Notes, the Seller, the
        Servicer, the Master Servicer, the Depositor and any Affiliate of any of
        the
        foregoing Persons, (ii) does not have any direct financial interest or any
        material indirect financial interest in the Issuer, any such other obligor,
        the
        Seller, the Servicer, the Master Servicer, the Depositor or any Affiliate
        of any
        of the foregoing Persons and (iii) is not connected with the Issuer, any
        such
        other obligor, the Seller, the Servicer, the Master Servicer, the Depositor
        or
        any Affiliate of any of the foregoing Persons as an officer, employee, promoter,
        underwriter, trustee, partner, director or person performing similar
        functions.

       

      “Independent
        Certificate”: A certificate or opinion to be delivered to the Indenture Trustee
        under the circumstances described in, and otherwise complying with, the
        applicable requirements of Section 10.01 of the Indenture, made by an
        independent appraiser or other expert appointed by an Issuer Request, and
        such
        opinion or certificate shall state that the signer has read the definition
        of
“Independent” in this Indenture and that the signer is Independent within the
        meaning thereof.

       

      “Initial
        Deposit”: $989.20.

       

      “Initial
        Note Balance”: As set forth in Section 2.02 of the Indenture.

       

      “Insurance
        Proceeds”: Proceeds paid by any insurer pursuant to any insurance policy
        covering a Mortgage Loan or Mortgaged Property, or amounts required to be
        paid
        by the Servicer pursuant to Section 3.05 of the Servicing Agreement, net
        of any
        component thereof (i) covering any expenses incurred by or on behalf of the
        Servicer in connection with obtaining such proceeds, (ii) applied to the
        restoration or repair of the related Mortgaged Property, (iii) released to
        the
        Mortgagor in accordance with the Servicer’s normal servicing procedures or (iv)
        required to be paid to any holder of a mortgage senior to such Mortgage
        Loan.

       

      “Interest
        Period”: With respect to the Adjustable Rate Notes, the period from the
        preceding Payment Date (or in the case of the first Payment Date, from the
        Closing Date) through the day preceding the applicable Payment Date, calculated
        on the basis of a 360-day year and the actual number of days in the applicable
        Interest Period. With respect to the Fixed Rate Notes and any Payment Date,
        the
        calendar month preceding the month in which such Payment Date occurs, which
        such
        calendar month shall be deemed to have 30 days. 

       

      With
        respect to the Class N Notes and any Payment Date other than the Payment
        Date in
        October 2006, the period from and including the
        Payment Date occurring in the
        immediately
        preceding
        month
and
        ending on the day
        immediately preceding such Payment Date.
        With
        respect to the Class
        N
        Notes
        and the
        Payment Date in October
        2006, the period from and including the Closing Date and ending on October
        24,
        2006.
        Notwithstanding
        the foregoing, each Interest Period for the Class N Notes will be calculated
        on
        the basis of a 360-day year comprised of twelve 30-day months, and, after
        the
        first Interest Period, will be deemed to be 30 days, regardless of its actual
        length.

       

      “Interest
        Rate Adjustment Date”: With respect to each adjustable-rate Mortgage Loan, the
        date or dates on which the Loan Rate is subject to adjustment in accordance
        with
        the related Mortgage Note.

       

      “Interest
        Rate Swap Agreement”: The 1992 ISDA Master Agreement (Multicurrency-Cross
        Border) dated as of September 28, 2006 (together with the schedule thereto,
        the
        Master Agreement) between the Swap Provider and the Trust and a confirmation
        of
        the same date, which supplements and forms part of the Master
        Agreement.

       

      “Investment
        Company Act”: The Investment Company Act of 1940, as amended, and any amendments
        thereto.

       

      “IRS”:
        The Internal Revenue Service.

       

      “Issuer”:
        Renaissance Home Equity Loan Trust 2006-3, a Delaware statutory trust, or
        its
        successor in interest.

       

      “Issuer
        Request”: A written order or request signed in the name of the Issuer by any one
        of its Authorized Officers and delivered to the Indenture Trustee.

       

      “LIBOR
        Business Day”: Any day other than (i) a Saturday or a Sunday or (ii) a day on
        which banking institutions in the State of New York or in the city of London,
        England are required or authorized by law to be closed.

       

      “Lien”:
        Any mortgage, deed of trust, pledge, conveyance, hypothecation, assignment,
        participation, deposit arrangement, encumbrance, lien (statutory or other),
        preference, priority right or interest or other security agreement or
        preferential arrangement of any kind or nature whatsoever, including, without
        limitation, any conditional sale or other title retention agreement, any
        financing lease having substantially the same economic effect as any of the
        foregoing and the filing of any financing statement under the UCC (other
        than
        any such financing statement filed for informational purposes only) or
        comparable law of any jurisdiction to evidence any of the foregoing; provided,
        however, that any assignment pursuant to Section 5.04 of the Servicing Agreement
        shall not be deemed to constitute a Lien.

       

      “Lifetime
        Rate Cap”: With respect to each adjustable-rate Mortgage Loan, the maximum Loan
        Rate permitted over the life of such Mortgage Loan, as provided by the terms
        of
        the related Mortgage Note.

       

      “Liquidated
        Mortgage Loan”: As to any Payment Date, a Mortgage Loan with respect to which
        the Servicer has determined, in accordance with the servicing procedures
        specified herein as of the end of the preceding related Prepayment Period,
        that
        all Liquidation Proceeds which it expects to recover with respect to such
        Mortgage Loan (including the disposition of the related REO Property) have
        been
        received.

       

      “Liquidation
        Loan Losses”: For each Liquidated Mortgage Loan the amount, if any, by which the
        Principal Balance thereof plus accrued and unpaid interest thereon is in
        excess
        of the Net Liquidation Proceeds realized with respect thereto.

       

      “Liquidation
        Proceeds”: Proceeds (including Insurance Proceeds) received in connection with
        the liquidation of any Mortgage Loan or related REO Property, whether through
        trustee’s sale, foreclosure sale or otherwise, other than Subsequent
        Recoveries.

       

      “Loan
        Group”: Either Loan Group I or Loan Group II.

       

      “Loan
        Group I”: The Mortgage Loans identified on the Mortgage Loan Schedule as being
        part of Loan Group I.

       

      “Loan
        Group II”: The Mortgage Loans identified on the Mortgage Loan Schedule as being
        part of Loan Group II.

       

      “Loan
        Index”: With respect to each Interest Rate Adjustment Date for each
        adjustable-rate Mortgage Loan that is identified on the Mortgage Loan Schedule
        as having a LIBOR Loan Index, the average of the interbank offered rate for
        six-month U.S. dollar denominated deposits in the London Market, as determined
        according to the terms of the related Note.

       

      “Loan
        Rate”: With respect to any Mortgage Loan as of any day, the per annum rate of
        interest applicable under the related Mortgage Note to the calculation of
        interest for such day on the Principal Balance.

       

      “Maintenance”:
        With respect to any Cooperative Unit, the rent paid by the Mortgagor to the
        Cooperative Corporation pursuant to the Proprietary Lease.

       

      “Majority
        Certificateholder”: A Holder of a 50.01% or greater Certificate Percentage
        Interest of the Certificates.

       

      “Margin”:
        As to any adjustable-rate Mortgage Loan, the percentage set forth as the
        “Margin” for such Mortgage Loan on the Mortgage Loan Schedule.

       

      “Master
        Servicer”: Wells Fargo Bank, N.A., a national banking association or any
        successor thereto or any successor under the Servicing Agreement.

       

      “Master
        Servicer Event of Default”: As defined in Section 6.03 of the Servicing
        Agreement.

       

      “Master
        Servicing Fee”: As to each Payment Date and each Mortgage Loan, the monthly fee
        payable to the Master Servicer, which is calculated as an amount equal to
        the
        product of one-twelfth of the Master Servicing Fee Rate and the Principal
        Balance thereof at the beginning of the related Due Period.

       

      “Master
        Servicing Fee Rate”: For any Payment Date, 0.0150% per annum.

       

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

       

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

       

      “MERS
        Mortgage Loan”: Any Mortgage Loan registered with MERS on the MERS
        System.

       

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

       

      “Mezzanine
        Notes”: The Class M Notes.

       

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

       

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

       

      “Monthly
        Advance”: An advance made by the Servicer or the Master Servicer pursuant to
        Section 3.15 or Section 4.13 of the Servicing Agreement,
        respectively.

       

      “Monthly
        Payment”: The scheduled monthly payment of principal and/or interest required to
        be made by a Mortgagor on the related Mortgage Loan.

       

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

       

      “Mortgage”:
        The mortgage, deed of trust or other instrument creating a first or second
        lien
        on an estate in fee simple interest in real property securing a Mortgage
        Loan.

       

      “Mortgage
        File”: The mortgage documents listed in Section 2.1 of the Mortgage Loan Sale
        and Contribution Agreement pertaining to a particular Mortgage Loan and any
        additional documents required to be added to the Mortgage File pursuant to
        the
        Mortgage Loan Sale and Contribution Agreement.

       

      “Mortgage
        Loan Sale and Contribution Agreement”: The mortgage loan sale and contribution
        agreement, dated September 28, 2006, between the Seller and the
        Depositor.

       

      “Mortgage
        Loan Schedule”: With respect to any date, the schedule of Mortgage Loans
        constituting assets of the Trust, which on the Closing Date shall be the
        schedule set forth herein as Exhibit B, which schedule sets forth as to each
        Mortgage Loan: (i) the Cut-Off Date Principal Balance, (ii) the account number,
        (iii) the original principal amount, (iv) the CLTV as of the date of the
        origination of the related Mortgage Loan, (v) the Due Date, (vi) the Loan
        Rate
        as of the Cut-Off Date, (vii) the first date on which a Monthly Payment is
        or
        was due under the Mortgage Note, (viii) the original stated maturity date
        of the
        Mortgage Note and if the Mortgage Loan is a Balloon Loan, the amortization
        terms, (ix) the remaining number of months to maturity as of the Cut-Off
        Date,
        (x) the state in which the related Mortgaged Property is situated, (xi) the
        type
        of property, (xii) the lien status, (xiii) whether the Mortgage Loan is a
        MERS
        Mortgage Loan and, if so, its corresponding MIN, (xiv) the applicable Loan
        Group
        and (xv) with respect to each adjustable-rate Mortgage Loan, (a) the Periodic
        Rate Cap, (b) the Margin, (c) the Lifetime Rate Cap and (d) the next Interest
        Rate Adjustment Date after the Cut-Off Date. The Seller shall indicate to
        the
        Indenture Trustee, Master Servicer and Securities Administrator which Mortgage
        Loans, if any, are Cooperative Loans. The Mortgage Loan Schedule will be
        amended
        by the Seller from time to time to reflect the substitution of an Eligible
        Substitute Mortgage Loan for a Defective Mortgage Loan from time to time
        hereunder.

       

      “Mortgage
        Loans”: The mortgage loans that are transferred and assigned to the Indenture
        Trustee, on behalf of the Trust, on the Closing Date, together with the Related
        Documents, and are held by the Custodian on behalf of the Indenture Trustee
        as a
        part of the Trust, exclusive of Mortgage Loans that are transferred to the
        Seller or the Servicer, as the case may be, from time to time pursuant to
        Section 2.1(f) or 3.2 of the Mortgage Loan Sale and Contribution Agreement
        or
        Section 3.16 of the Servicing Agreement, such mortgage loans originally so
        held
        being identified in the Mortgage Loan Schedule, set forth on Exhibit B hereto,
        delivered on the Closing Date.

       

      “Mortgage
        Note”: With respect to a Mortgage Loan, the note pursuant to which the related
        mortgagor agrees to pay the indebtedness evidenced thereby which is secured
        by
        the related Mortgage.

       

      “Mortgaged
        Property”: The underlying property, including real property and improvements
        thereon, securing a Mortgage Loan, which, with respect to a Cooperative Loan,
        is
        the related Cooperative Shares and Proprietary Lease.

       

      “Mortgagor”:
        The obligor or obligors under a Mortgage Note.

       

      “Net
        Liquidation Proceeds”: With respect to any Liquidated Mortgage Loan, Liquidation
        Proceeds, net of unreimbursed Servicing Fees, Master Servicing Fees, Servicing
        Advances and Monthly Advances with respect thereto.

       

      “Net
        Swap
        Payment”: In the case of payments made by the Trust, the excess, if any, of (x)
        the Fixed Swap Payment over (y) the Floating Swap Payment and in the case
        of
        payments made by the Swap Provider, the excess, if any, of (x) the Floating
        Swap
        Payment over (y) the Fixed Swap Payment. In each case, the Net Swap Payment
        shall not be less than zero.

       

      “Ninety
        Day Delinquency Rate”: As to any Payment Date, the percentage equivalent of a
        fraction, the numerator of which is the aggregate Principal Balances of (a)
        Mortgage Loans that are ninety (90) or more days delinquent as of the last
        day
        of the related Prepayment Period, (b) all REO Property and (c) Mortgage Loans
        in
        foreclosure or in bankruptcy and the denominator of which is the Pool Balance
        as
        of the last day of the related Due Period.

       

      “Nonrecoverable
        Advances”: With respect to any Mortgage Loan, (i) any Servicing Advance or
        Monthly Advance previously made and not reimbursed pursuant to Section 3.03(ii)
        or Section 4.13 of the Servicing Agreement or (ii) a Servicing Advance or
        Monthly Advance proposed to be made in respect of a Mortgage Loan or REO
        Property which, in the good faith business judgment of the Servicer or the
        Master Servicer, as applicable, as evidenced by an Officer’s Certificate
        delivered to the Seller, the Master Servicer, the Securities Administrator
        and
        the Indenture Trustee no later than the Business Day following such
        determination, would not be ultimately recoverable pursuant to Section 3.03(ii)
        or Section 4.13 of the Servicing Agreement.

       

      “Note”:
        Any Offered Note or Class N Note.

       

      “Note
        Balance”: As of any date of determination, the aggregate Class Note Balance of
        the Offered Notes or the Class N Notes, as applicable.

       

      “Note
        Group”: Either the Group I or the Group II Notes.

       

      “Note
        Index”: The rate for one month United States dollar deposits quoted on Telerate
        Page 3750 as of 11:00 A.M., London time, on the second LIBOR Business Day
        prior
        to the first day of any Interest Period relating to the Adjustable Rate Notes.
        “Telerate Page 3750” means the display designated as page 3750 on Bridge
        Telerate Service (or such other page as may replace page 3750 on that service
        for the purpose of displaying London interbank offered rates of major banks).
        If
        such rate does not appear on such page or such other page as may replace
        that
        page on that service (or if such service is no longer offered, such other
        service for displaying LIBOR or comparable rates as may be reasonably selected
        by the Securities Administrator after consultation with the Seller), the
        rate
        will be the Reference Bank Rate. If no such quotations can be obtained and
        no
        Reference Bank Rate is available, the Note Index will be the Note Index
        applicable to the preceding Payment Date. On the second LIBOR Business Day
        immediately preceding each Payment Date, the Securities Administrator shall
        determine the Note Index for the Interest Period commencing on such Payment
        Date
        and inform the Seller and the Servicer of such rate.

       

      “Note
        Margin”: As to any Adjustable Rate Note, the respective amount set forth
        below:

       

      
        	
                Class

              	
                  Note
                  Margin  

              
	 	
                (1)

              	
                (2)

              
	
                Class
                  AV-1

              	
                0.060%

              	
                0.120%

              
	
                Class
                  AV-2

              	
                0.150%

              	
                0.300%

              
	
                Class
                  AV-3

              	
                0.240%

              	
                0.480%

              

      

      __________

      (1) On
        or
        before the Optional Redemption Date.

      (2) After
        the
        Optional Redemption Date.

       

      “Note
        Owner”: The Person who is the beneficial owner of a Book-Entry
        Note.

       

      “Note
        Rate”: The Note Rate for any Interest Period with respect to the Adjustable-Rate
        Notes, will equal the lesser of (a) the sum of the Note Index and the Note
        Margin, (b) 14.00%, and (c) the Group
        I
        Available Funds Rate.
        The
        Note Rate for any Interest Period with respect to the Fixed-Rate Notes, will
        equal the applicable fixed interest rate listed in the table below.

       

      As
        to any
        Class of Fixed-Rate Notes, the respective per annum rate set forth or described
        below:

       

      
        	
                Class

              	
                Rate

              
	
                Class
                  AF-1

              	
                5.917%
                  per annum(1)

              
	
                Class
                  AF-2

              	
                5.580%
                  per annum(1)

              
	
                Class
                  AF-3

              	
                5.586%
                  per annum(1)

              
	
                Class
                  AF-4

              	
                5.812%
                  per annum(1)

              
	
                Class
                  AF-5

              	
                6.120%
                  per annum(1)

              
	
                Class
                  AF-6

              	
                5.731%
                  per annum(1)

              
	
                Class
                  M-1

              	
                6.019%
                  per annum(1)

              
	
                Class
                  M-2

              	
                6.068%
                  per annum(1)

              
	
                Class
                  M-3

              	
                6.118%
                  per annum(1)

              
	
                Class
                  M-4

              	
                6.217%
                  per annum(1)

              
	
                Class
                  M-5

              	
                6.266%
                  per annum(1)

              
	
                Class
                  M-6

              	
                6.484%
                  per annum(1)

              
	
                Class
                  M-7

              	
                6.959%
                  per annum(1)

              
	
                Class
                  M-8

              	
                7.157%
                  per annum(1)

              
	
                Class
                  M-9

              	
                7.500%
                  per annum(1)

              
	
                Class
                  N-1

              	
                6.413%
                  per annum(1)

              
	
                Class
                  N-2

              	
                7.385%
                  per annum(1)

              

      

      
        	 	
                _________________

              	 

      

      (1)  
         As
        to (i)
        any Payment Date on or before the Optional Redemption Date, the fixed rate
        of
        interest shown above and (ii) any Payment Date after the Optional Redemption
        Date, the sum of the fixed interest rate shown above and 0.50%.

       

       

      “Note
        Register and Note Registrar”: The register maintained and the registrar
        appointed pursuant to Section 4.02.

       

      “Noteholder
        or Holder”: The Person in whose name a Note is registered in the Note Register,
        except that, solely for the purpose of giving any consent, direction, waiver
        or
        request pursuant to this Indenture, (x) any Note registered in the name of
        the
        Seller or the Depositor or any Person known to a Responsible Officer to be
        an
        Affiliate of the Seller or the Depositor and (y) any Note for which the Seller
        or the Depositor or any Person known to a Responsible Officer to be an Affiliate
        of the Seller or the Depositor is the Note Owner or Holder shall be deemed
        not
        to be outstanding (unless to the knowledge of a Responsible Officer (i) the
        Seller or such Affiliate is acting as trustee or nominee for a Person who
        is not
        an Affiliate of such Seller or the Depositor and who makes the voting decision
        with respect to such Notes or (ii) the Seller or the Depositor or such Affiliate
        is the Note Owner or Holder of all the Notes of a Class, but only with respect
        to the Class as to which the Seller or the Depositor or such Affiliate owns
        all
        the Notes) and the Percentage Interest evidenced thereby shall not be taken
        into
        account in determining whether the requisite amount of Percentage Interests
        necessary to effect any such consent, direction, waiver or request has been
        obtained.

       

      “OC
        Floor”: An amount equal to 0.50% of the Cut-Off Date Pool Balance.

       

      “Offered
        Notes”: The Senior Notes and the Mezzanine Notes.

       

      “Officer’s
        Certificate”: A certificate signed by the President, an Executive Vice
        President, a Senior Vice President, a First Vice President, a Vice President,
        Assistant Vice President, the Treasurer, Assistant Treasurer, Assistant
        Secretary, Controller or Assistant Controller of the Servicer or the Master
        Servicer and delivered to the Indenture Trustee, the Master Servicer, the
        Securities Administrator or the Custodian. With respect to the Issuer, a
        certificate signed by any Authorized Officer of the Issuer.

       

      “Opinion
        of Counsel”: A written opinion of counsel reasonably acceptable to the Indenture
        Trustee and the Securities Administrator, who may be in-house counsel for
        the
        Servicer, the Master Servicer, the Depositor or the Seller and who, in the
        case
        of opinions delivered to each Rating Agency, is reasonably acceptable to
        it.

       

      “Optional
        Redemption Date”: The Payment Date following the Due Period at the end of which
        the Pool Balance is less than 10% of the Cut-Off Date Pool Balance.

       

      “Originator”:
        Delta Funding Corporation, a New York corporation, or any successor
        thereto.

       

      “Outstanding”:
        With respect to the Notes, as of the date of determination, all Notes
        theretofore executed, authenticated and delivered under this Indenture
        except:

       

      (i) Notes
        theretofore canceled by the Note Registrar or delivered to the Securities
        Administrator for cancellation; and

       

      (ii) Notes
        in
        exchange for or in lieu of which other Notes have been executed, authenticated
        and delivered pursuant to the Indenture unless proof satisfactory to the
        Securities Administrator is presented that any such Notes are held by a holder
        in due course;

       

      “Outstanding
        Class Interest Carryover Shortfall”: As to any Class of Offered Notes and any
        Payment Date, the amount of Class Interest Carryover Shortfall for such Payment
        Date.

       

      “Overcollateralization
        Amount”: As to any Payment Date, the excess, if any, of (i) the Pool Balance as
        of the end of the related Due Period over (ii) the aggregate Class Note Balance
        of the Offered Notes after giving effect to the payment of the Principal
        Payment
        Amount on such Payment Date.

       

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

       

      “Owner
        Trust”: The corpus of the Issuer created by the Trust Agreement which consists
        of items referred to in Section 3.01 of the Trust Agreement.

       

      “Owner
        Trustee”: Wilmington Trust Company, acting not in its individual capacity but
        solely as Owner Trustee, and its successors and assigns or any successor
        owner
        trustee appointed pursuant to the terms of the Trust Agreement.

       

      “Paying
        Agent”: Any paying agent appointed pursuant to Section 3.03 of the
        Indenture.

       

      “Payment
        Account”: The account established and maintained by the Securities Administrator
        pursuant to Section 3.01. The Payment Account shall be an Eligible
        Account.

       

      “Payment
        Date”: The 25th
        day of
        each month, or, if such day is not a Business Day, then the next Business
        Day,
        beginning in October 2006.

       

      “Percentage
        Interest”: With respect to any Note, the percentage obtained by dividing the
        Class Note Balance of such Note by the aggregate Class Note Balances of all
        Notes of that Class. With respect to any Note, the percentage as stated on
        the
        face thereof.

       

      “Periodic
        Rate Cap”: With respect to each adjustable-rate Mortgage Loan with respect to
        which the related Mortgage Note provides for a periodic rate cap, the maximum
        percentage increase or decrease in the Loan Rate permitted for such Mortgage
        Loan over the Loan Rate in effect as of an Interest Rate Adjustment Date,
        as set
        forth on the Mortgage Loan Schedule.

       

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

       

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

       

      “Plan
        Assets”: Assets of a Plan within the meaning of Department of Labor regulation
        29 C.F.R. § 2510.3-101.

       

      “Pool
        Balance”: With respect to any date of determination, the aggregate Principal
        Balance of the Mortgage Loans as of the applicable date.

       

      “Prepayment
        Charge”: As to a Mortgage Loan, any charge to be paid by a Mortgagor in
        connection with certain partial prepayments and all prepayments in full made
        during the related Prepayment Charge Period, the Prepayment Charges with
        respect
        to each applicable Mortgage Loan so held by the Trust being identified in
        the
        Prepayment Charge Schedule (other than any Prepayment Charge Payment
        Amount).

       

      “Prepayment
        Charge Payment Amount”: The amounts payable by the Seller or the Servicer, as
        the case may be, pursuant to Section 3.1 of the Mortgage Loan Sale and
        Contribution Agreement and Section 3.21 of the Servicing Agreement.

       

      “Prepayment
        Charge Period”: As to any Mortgage Loan, the period of time, if any, during
        which a Prepayment Charge may be imposed.

       

      “Prepayment
        Charge Schedule”: As of any date, the list of Mortgage Loans subject to
        Prepayment Charges included in the Trust on such date, attached hereto as
        Exhibit B (including the prepayment charge summary attached thereto). The
        Prepayment Charge Schedule shall set forth the following information with
        respect to each such Mortgage Loan subject to a Prepayment Charge:

       

      (i)  the
        Mortgage Loan account number;

       

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

       

      (iii)  the
        first
        date on which a Monthly Payment is or was due under the related Mortgage
        Note;

       

      (iv)  the
        original term of the Prepayment Charge;

       

      (v)  the
        Cut-Off Date Principal Balance of the related Mortgage Loan; and

       

      (vi)  the
        remaining term of the Prepayment Charge.

       

      The
        Prepayment Charge Schedule shall be amended by the Seller and delivered to
        the
        Indenture Trustee, the Securities Administrator, the Master Servicer and
        the
        Servicer from time to time in accordance with the provisions of the Mortgage
        Loan Sale and Contribution Agreement, and the Indenture Trustee, the Securities
        Administrator, the Master Servicer and the Servicer shall have no responsibility
        to recalculate or otherwise review the information set forth
        therein.

       

      “Prepayment
        Interest Shortfall”: With respect to any Payment Date, for each Mortgage Loan
        that was the subject during the related Prepayment Period of a voluntary
        Principal Prepayment (other than Principal Prepayments in full that occur
        during
        the portion of the related Prepayment Period that is in the same calendar
        month
        as the Payment Date), an amount equal to the excess, if any, of (i) 30 days
        of
        accrued interest on the Principal Balance of such Mortgage Loan at the Loan
        Rate
        (or at such lower rate as may be in effect for such Mortgage Loan pursuant
        to
        application of the Civil Relief Act), net of the Servicing Fee Rate (which
        shall
        constitute payment of the Servicing Fee with respect to such Mortgage Loan),
        with respect to the Servicer’s obligation in respect of any Prepayment Interest
        Shortfall and net of the Master Servicing Fee Rate (which shall constitute
        payment of the Master Servicing Fee with respect to such Mortgage Loan),
        with
        respect to the Master Servicer’s obligation in respect of any Prepayment
        Interest Shortfall, over (ii) the amount of interest actually remitted by
        the
        Mortgagor in connection with such Principal Prepayment.

       

      “Prepayment
        Period”: With respect to any Payment Date and any Principal Prepayment in full,
        the period from the 16th
        day of
        the calendar month preceding the month in which such Payment Date occurs
        (or in
        the case of the first Payment Date, from the related Cut-off Date) through
        the
        15th
        day of
        the month in which such Payment Date occurs. With respect to any Payment
        Date
        and any Curtailment, the calendar month preceding such Payment
        Date.

       

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

       

      “Principal
        Payment Amount”: With respect to any Payment Date, the lesser of (1) the
        aggregate Class Note Balance of the Offered Notes immediately preceding such
        Payment Date and (2) the sum of (x) the Aggregate Principal Amount for such
        Payment Date minus the Excess Overcollateralization Amount, if any, for such
        Payment Date and (y) the Subordination Increase Amount, if any, for such
        Payment
        Date. On the first Payment Date, the Principal Payment Amount will also include
        the Initial Deposit.

       

      “Principal
        Prepayment”: Any payment or other recovery of principal on a Mortgage Loan equal
        to the outstanding principal balance thereof, received in advance of the
        final
        scheduled Due Date which is intended to satisfy a Mortgage Loan in full (without
        regard to any Prepayment Charge that may have been collected by the Servicer
        in
        connection with such payment of principal).

       

      “Proceeding”:
        Any suit in equity, action at law or other judicial or administrative
        proceeding.

       

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

       

      “Prospectus”:
        The base prospectus of the Depositor dated September 7, 2006.

       

      “Prospectus
        Supplement”: The prospectus supplement dated September 8, 2006 relating to the
        offering of the Offered Notes.

       

      “Purchase
        Price”: As to any Mortgage Loan repurchased on any date pursuant to Section
        2.1(f) or 3.1 of the Mortgage Loan Sale and Contribution Agreement or Section
        3.16 of the Servicing Agreement, an amount equal to the sum of (i) the unpaid
        Principal Balance thereof, (ii) the greater of (a) all unpaid accrued interest
        thereon to the end of the Due Period preceding the Payment Date on which
        such
        Purchase Price is included in Available Funds and (b) thirty (30) days’ interest
        thereon, computed at the applicable Loan Rate; provided, however, that if
        the
        purchaser is the Servicer, the amount described in clause (ii) shall be computed
        at the Loan Rate net of the Servicing Fee Rate (which shall constitute payment
        of the Servicing Fee with respect to such Mortgage Loan), (iii) if the purchaser
        is the Seller, (x) any unreimbursed Servicing Advances with respect to such
        Mortgage Loan and (y) expenses reasonably incurred or to be incurred by the
        Servicer, the Master Servicer, the Securities Administrator, the Trust or
        the
        Indenture Trustee in respect of the breach or defect giving rise to the purchase
        obligation, including costs due to any violations of any predatory or abusive
        lending law and (iv) the amount of any penalties, fines, forfeitures, legal
        fees
        and related costs, judgments and any other costs, fees and expenses incurred
        by
        or imposed on the Indenture Trustee, the Servicer, the Master Servicer, the
        Securities Administrator or the Trust or with respect to which any of them
        are
        liable arising from a breach by the Seller of its representations and warranties
        in the Mortgage Loan Sale and Contribution Agreement.

       

      “Qualified
        REIT Subsidiary”: A qualified REIT subsidiary within the meaning of Section
        856(i)(2) of the Code.

       

      “Rating
        Agency”: Initially Moody’s, S&P and Fitch, and their successors and assigns.
        If such agency or a successor is no longer in existence, “Rating Agency” shall
        include such other statistical credit rating agency, or other comparable
        Person,
        designated by the Depositor, notice of which designation shall be given to
        the
        Indenture Trustee and the Securities Administrator. References herein to
        the
        highest short term unsecured rating category of a Rating Agency shall mean
“A-1”
or better in the case of S&P and “P-1” or better in the case of Moody’s.
        References herein to the highest long-term rating category of a Rating Agency
        shall mean “AAA” in the case of S&P and “Aaa” in the case of
        Moody’s.

       

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

       

      “Record
        Date”: As to the Fixed Rate Notes and any Payment Date, the last Business Day
        of
        the month immediately preceding the month in which the related Payment Date
        occurs. As to the Adjustable Rate Notes and Class N Notes and any Payment
        Date,
        the Business Day preceding such Payment Date (except in the case of the first
        Payment Date, for which the Record Date shall be the Closing Date); provided,
        however, that if the Adjustable Rate Notes or the Class N Notes are no longer
        Book-Entry Notes, the “Record Date” shall be the last Business Day of the month
        immediately preceding the month in which the related Payment Date
        occurs.

       

      “Redemption
        Price”: As defined in Section 8.07 of the Indenture.

       

      “Reference
        Bank Rate”: As to any Interest Period relating to the Adjustable Rate Notes as
        follows: the arithmetic mean (rounded upwards, if necessary, to the nearest
        one
        sixteenth of a percent) of the offered rates for United States dollar deposits
        for one month which are offered by the Reference Banks as of 11:00 A.M.,
        London
        time, on the second LIBOR Business Day prior to the first day of such Interest
        Period to prime banks in the London interbank market for a period of one
        month
        in amounts approximately equal to the aggregate Class Note Balance of the
        Adjustable Rate Notes; provided that at least two such Reference Banks provide
        such rate. If fewer than two offered rates appear, the Reference Bank Rate
        will
        be the arithmetic mean of the rates quoted by one or more major banks in
        New
        York City, selected by the Securities Administrator after consultation with
        the
        Seller, as of 11:00 A.M., New York City time, on such date for loans in U.S.
        Dollars to leading European Banks for a period of one month in amounts
        approximately equal to the aggregate Class Note Balance of the Adjustable
        Rate
        Notes. If no such quotations can be obtained, the Reference Bank Rate shall
        be
        the Reference Bank Rate applicable to the preceding Interest
        Period.

       

      “Reference
        Banks”: Three major banks that are engaged in the London interbank market,
        selected by the Seller after consultation with the Securities
        Administrator.

       

      “Registered
        Holder”: The Person in whose name a Note is registered in the Note Register on
        the applicable Record Date.

       

      “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 provided by the Commission or its staff from time
        to
        time.

       

      “Regulation S”:
        Regulation S promulgated under the Securities Act or any successor
        provision thereto, in each case as the same may be amended from time to time;
        and all references to any rule, section or subsection of, or definition or
        term
        contained in, Regulation S means such rule, section, subsection, definition
        or term, as the case may be, or any successor thereto, in each case as the
        same
        may be amended from time to time.

       

      “Regulation
        S Global Security”: The meaning specified in Section 4.06(b).

       

      “Related
        Documents”: With respect to each Mortgage Loan, the documents specified in
        Section 2.1(b) of the Mortgage Loan Sale and Contribution Agreement and any
        documents required to be added to such documents pursuant to the Mortgage
        Loan
        Sale and Contribution Agreement, the Trust Agreement, Indenture or the Servicing
        Agreement.

       

      “Released
        Mortgaged Property Proceeds”: As to any Mortgage Loan, proceeds received by the
        Servicer in connection with (a) a taking of an entire Mortgaged Property
        by
        exercise of the power of eminent domain or condemnation or (b) any release
        of
        part of the Mortgaged Property from the lien of the related Mortgage, whether
        by
        partial condemnation, sale or otherwise, which are not released to the Mortgagor
        in accordance with applicable law and mortgage servicing standards the Servicer
        would use in servicing mortgage loans for its own account and the Servicing
        Agreement.

       

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

       

      “REO
        Property”: A Mortgaged Property that is acquired by the Servicer or the Master
        Servicer on behalf of the Trust in foreclosure or by deed in lieu of
        foreclosure.

       

      “Reportable
        Event”: The meaning set forth in Section 3.13(a)(iii) of the Servicing
        Agreement.

       

      “Reporting
        Servicer”: As set forth in Section 3.13(a)(iv) of the Servicing
        Agreement.

       

      “Required
        Overcollateralization Amount”: With respect to any Payment Date (a) prior to the
        Stepdown Date, the product of (x) 3.00% and (y) the Cut-Off Date Pool Balance
        and (b) on and after the Stepdown Date, the greater of (1) the lesser of
        (x) the
        product of 3.00% and the Cut-Off Date Pool Balance and (y) the product of
        6.00%
        and the Pool Balance as of the end of the related Due Period and (2) the
        OC
        Floor.

       

      Notwithstanding
        the foregoing, on each Payment Date during the continuance of (a) a Delinquency
        Event (whether or not a Cumulative Loss Event is continuing), the Required
        Overcollateralization Amount will equal the Required Overcollateralization
        Amount in effect as of the immediately preceding Payment Date or (b) a
        Cumulative Loss Event (and a Delinquency Event is not then continuing), the
        Required Overcollateralization Amount will equal the lesser of (x) the Required
        Overcollateralization Amount in effect as of the immediately preceding Payment
        Date and (y) the product of 12.00% and the Pool Balance as of the end of
        the
        related Due Period; but the Required Overcollateralization Amount will never
        be
        less than the OC Floor.

       

      “Residential
        Dwelling”: A one- to five-family dwelling, a five- to eight-family dwelling, a
        mixed use property, a unit in a planned unit development, a unit in a
        condominium development, a townhouse, a unit in a cooperative or a mobile
        home
        treated as real property under local law.

       

      “Responsible
        Officer”: When used with respect to the Securities Administrator, any officer
        assigned to the corporate trust group (or any successor thereto), including
        any
        executive vice president, senior vice president, first vice president, vice
        president, assistant vice president, controller, assistant controller, trust
        officer, any assistant secretary, any trust officer or any other officer
        of the
        Trustee customarily performing functions similar to those performed by any
        of
        the above designated officers and having direct responsibility for the
        administration of this Agreement. When used with respect to the Indenture
        Trustee, any officer in the Corporate Trust Office with direct responsibility
        for the administration of the Basic Documents. When used with respect to
        the
        Depositor, the Seller, the Master Servicer or Servicer, the President or
        any
        Vice President, Assistant Vice President or any Secretary or Assistant
        Secretary.

       

      “Restricted
        Global Security”: The meaning specified in Section 4.06(b).

       

      “Rule
        144A”: Rule 144A under the 1933 Act.

       

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

       

      “SAIF”:
        The Savings Association Insurance Fund, as from time to time constituted,
        created under the Financial Institutions Reform, Recovery and Enhancement
        Act of
        1989, or, if at any time after the execution of this Agreement the Savings
        Association Insurance Fund is not existing and performing duties now assigned
        to
        it, the body performing such duties on such date.

       

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

       

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

       

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

       

      “Securities
        Administrator”: Wells Fargo Bank, N.A., a national banking association or any
        successor thereto or any successor hereunder.

       

      “Securities
        Administrator Information”: As defined in Section 3.13 of the Servicing
        Agreement.

       

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

       

      “Seller”:
        Renaissance REIT Investment Corp.

       

      “Senior
        Note”: Any Class AV Note or Class AF Note.

       

      “Senior
        Noteholder”: The Holder of a Senior Note.

       

      “Senior
        Enhancement Percentage”: As to any Payment Date, the percentage equivalent of a
        fraction, the numerator of which is the sum of (i) the aggregate Class Note
        Balances of the Mezzanine Notes and (ii) the Overcollateralization Amount
        (in
        each case, on the prior Payment Date) and the denominator of which is the
        Pool
        Balance as of the last day of the prior Due Period.

       

      “Senior
        Principal Payment Amount”: With respect to (a) any Payment Date prior to the
        Stepdown Date or during the continuation of a Delinquency Event, the lesser
        of
        (1) 100% of the Principal Payment Amount and (2) the aggregate Class Note
        Balance of the Senior Notes immediately prior to such Payment Date, and (b)
        any
        other Payment Date, an amount equal to the lesser of (1) the Principal Payment
        Amount and (2) the excess, if any, of (x) the aggregate Class Note Balance
        of
        the Senior Notes immediately prior to the applicable Payment Date over (y)
        the
        lesser of (A) 69.50% of the Pool Balance as of the last day of the related
        Due
        Period minus the Subordination Required Overcollateralization Amount for
        such
        Payment Date and (B) the Pool Balance as of the last day of the related Due
        Period minus the OC Floor.

       

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

       

      “Servicer
        Event of Default”: As defined in Section 6.01 of the Servicing
        Agreement.

       

      “Servicer
        Information”: As defined in Section 3.13 of the Servicing
        Agreement.

       

      “Servicer
        Reimbursement Amount”: As defined in Section 3.20 of the Servicing
        Agreement.

       

      “Servicer
        Termination Test”: The Servicer Termination Test is failed if either (x)
        Cumulative Net Losses for the Mortgage Loans exceed 5.10% of the aggregate
        Original Class Note Balance of the Offered Notes or (y) the most recent Three
        Month 90-Day Delinquency Rate exceeds 30%.

       

      “Servicing
        Advances”: All reasonable and customary “out of pocket” costs and expenses
        incurred prior to, on or after the Cut-Off Date in the performance by the
        Servicer of its servicing obligations under the Servicing Agreement, including,
        but not limited to, the cost of (i) the preservation, restoration and protection
        of the Mortgaged Property, (ii) any enforcement or judicial proceedings,
        including foreclosures and any litigation related to a Mortgage Loan, (iii)
        the
        management and liquidation of the REO Property, including reasonable fees
        paid
        to any independent contractor in connection therewith, (iv) compliance with
        the
        obligations under Section 3.04, 3.06 or 3.19 of the Servicing Agreement,
        (v) in
        connection with the liquidation of a Mortgage Loan, expenditures relating
        to the
        purchase or maintenance of the First Lien pursuant to Section 3.17 of the
        Servicing Agreement, all of which reasonable and customary out-of-pocket
        costs
        and expenses are reimbursable to the Servicer to the extent provided in Sections
        3.03(ii) and (vi) and 3.06 of the Servicing Agreement and (vi) correcting
        any
        outstanding title issues (i.e., any lien or encumbrance on the Mortgaged
        Property that prevents the effective enforcement of the intended lien position)
        not customarily processed internally by servicers in the servicing industry
        reasonably necessary for the Servicer to perform its obligations under the
        Servicing Agreement.

       

      “Servicing
        Agreement”: The Servicing Agreement dated as of September 28, 2006, among the
        Master Servicer, the Servicer, the Issuer, the Indenture Trustee and the
        Securities Administrator.

       

      “Servicing
        Certificate”: A certificate completed and executed by a Servicing Officer on
        behalf of the Servicer.

       

      “Servicing
        Compensation”: The Servicing Fee and other amounts to which the Servicer is
        entitled pursuant to Section 3.08 of the Servicing Agreement.

       

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

       

      “Servicing
        Fee”: As to each Payment Date and each Mortgage Loan, the monthly fee payable
        to
        the Servicer, which is calculated as an amount equal to the product of
        one-twelfth of the Servicing Fee Rate and the Principal Balance thereof at
        the
        beginning of the related Due Period.

       

      “Servicing
        Fee Rate”: For any Payment Date, 0.50% per annum, which shall not exceed 0.50%
        per annum upon the Optional Redemption of the Notes and shall survive the
        termination of the Servicing Agreement.

       

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

       

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

       

      “Servicing
        Rights Owner”: The Servicer or an Affiliate of the Servicer that has acquired or
        may acquire ownership of the servicing rights associated with the servicing
        rights and obligations under the Servicing Agreement.

       

      “Servicing
        Rights Pledgee”: As defined in Section 5.04 of the Servicing
        Agreement.

       

      “Servicing
        Transfer Costs”: All reasonable costs and expenses incurred by the Successor
        Servicer or the Successor Master Servicer in connection with the transfer
        of
        servicing from a predecessor Servicer or the transfer of master servicing
        from
        the predecessor Master Servicer, as applicable, including, without limitation,
        any reasonable costs or expenses associated with the complete transfer of
        all
        electronic servicing data and the completion, correction or manipulation
        of such
        electronic servicing data as may be required by the successor to correct
        any
        errors or insufficiencies in the servicing data or otherwise to enable the
        successor to service or master service, as applicable, the Mortgage Loans
        properly and effectively.

       

      “Significance
        Percentage”: The percentage equivalent of a fraction, the numerator of which is
        the net present value of the estimated future amounts payable under the Interest
        Rate Swap Agreement and the denominator of which is the aggregate Certificate
        Principal Balance of the Class A and Mezzanine Notes on such Distribution
        Date
        (after giving effect to all distributions on such Payment Date), in each
        case as
        determined pursuant to the Interest Rate Swap Agreement.

       

      “Sixty
        Day Delinquency Rate”: As to any Payment Date, the percentage equivalent of a
        fraction, the numerator of which is the aggregate Principal Balance of (a)
        Mortgage Loans that are 60 or more days delinquent, (b) Mortgage Loans that
        are
        60 or more days delinquent and in bankruptcy or foreclosure and (c) all REO
        Property, in each case, as of the last day of the preceding month, and the
        denominator of which is the Pool Balance as of the last day of the related
        Due
        Period.

       

      “Statutory
        Trust Statute”: Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §§3801
        et seq., as the same may be amended from time to time.

       

      “Stepdown
        Date”: The earlier to occur of (x) the first Payment Date after the Payment Date
        on which the aggregate Class Note Balance of the Senior Notes is reduced
        to zero
        and (y) the later to occur of (A) the Payment Date in October 2009 and (B)
        the
        first Payment Date on which the Senior Enhancement Percentage (calculated
        for
        this purpose only after taking into account payments of principal on the
        mortgage loans, but prior to payment of the Principal Payment Amount to the
        Offered Notes then entitled to payments of principal on such Payment Date),
        is
        at least equal to 36.50%.

       

      “Stepped
        Fixed Rate Loan”: A Mortgage Loan having a fixed rate throughout its term, and a
        thirty year maturity without a balloon payments that is comprised of a fixed
        monthly payment based on a forty-year amortization during the first ten years
        of
        such Mortgage Loan’s term and a fixed monthly payment based on a twenty year
        amortization during the next twenty years of such Mortgage Loan’s
        term.

       

      “Strike
        Rate”: 5.1775% per annum.

       

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

       

      “Subordination
        Deficiency”: As to any Payment Date, the excess, if any, of (i) the Required
        Overcollateralization Amount for such Payment Date over (ii) the
        Overcollateralization Amount for such Payment Date after giving effect to
        the
        payment of the Aggregate Principal Amount on such Payment Date.

       

      “Subordination
        Increase Amount”: As to any Payment Date, the lesser of (i) the Subordination
        Deficiency and (ii) the Excess Interest.

       

      “Subordination
        Required Overcollateralization Amount”: As to any Payment Date on which a
        Delinquency Event does not exist, the Required Overcollateralization Amount
        without giving effect to the OC Floor calculation. As to any other Payment
        Date,
        the Required Overcollateralization Amount.

       

      “Subsequent
        Recovery”: With respect to any Liquidated Mortgage Loan, an amount received in
        respect of principal on such Mortgage Loan which has previously been allocated
        as an Applied Realized Loss Amount to a Class or Classes of Notes net of
        reimburseable expenses.

       

      “Subservicer”:
        Any Person that services Mortgage Loans on behalf of the Servicer, and is
        responsible for the performance (whether directly or through sub-servicers
        or
        Subcontractors) of servicing functions required to be performed under this
        Agreement, the Servicing Agreement or any sub-servicing agreement that are
        identified in Item 1122(d) of Regulation AB.

       

      “Subservicing
        Agreement”: Any agreement between the Servicer and any Subservicer relating to
        subservicing and/or administration of certain Mortgage Loans as provided
        in
        Section 3.01(b) of the Servicing Agreement, a copy of which shall be delivered,
        along with any modifications thereto, to the Indenture Trustee, the Master
        Servicer and the Securities Administrator.

       

      “Substitution
        Adjustment”: As to any date on which a substitution occurs pursuant to Section
        3.2 of the Mortgage Loan Sale and Contribution Agreement, the sum of (a)
        the
        excess of (i) the aggregate Principal Balances of all Defective Mortgage
        Loans
        to be replaced by Eligible Substitute Mortgage Loans (after application of
        principal payments received on or before the date of substitution of any
        Eligible Substitute Mortgage Loans as of the date of substitution) over (ii)
        the
        Principal Balance of such Eligible Substitute Mortgage Loans and (b) the
        greater
        of (x) accrued and unpaid interest on such excess through the Due Period
        relating to the Payment Date for which such Substitution Adjustment will
        be
        included as part of Available Funds and (y) thirty (30) days’ interest on such
        excess calculated on a 360-day year in each case at the Loan Rate and (c)
        the
        amount of any unreimbursed Servicing Advances made by the Servicer with respect
        to such Defective Mortgage Loan and (d) the amount referred to in clause
        (iv) of
        the definition of Purchase Price in respect of such Defective Mortgage
        Loan.

       

      “Successor
        Servicer”: As defined in Section 6.02 of the Servicing Agreement.

       

      “Successor
        Master Servicer”: As defined in Section 6.04 of the Servicing
        Agreement.

       

      “Swap
        LIBOR”: A per annum rate equal to the floating rate payable by the Swap Provider
        under the Interest Rate Swap Agreement.

       

      “Swap
        Provider”: Bank of America, N.A.

       

      “Swap
        Provider Trigger Event”: A Swap Termination Payment that is triggered upon: (i)
        an Event of Default under the Interest Rate Swap Agreement with respect to
        which
        the Swap Provider is a Defaulting Party (as defined in the Interest Rate
        Swap
        Agreement), (ii) a Termination Event under the Interest Rate Swap Agreement
        with
        respect to which the Swap Provider is the sole Affected Party (as defined
        in the
        Interest Rate Swap Agreement) or (iii) an Additional Termination Event under
        the
        Interest Rate Swap Agreement with respect to which the Swap Provider is the
        sole
        Affected Party.

       

      “Swap
        Termination Payment”: The payment due to either party under the Interest Rate
        Swap Agreement upon the early termination of the Interest Rate Swap
        Agreement.

       

      “Three
        Month Delinquency Rate”: As to any Payment Date the arithmetic average of the
        Sixty Day Delinquency Rates for the related Payment Date and the two immediately
        preceding Payment Dates.

       

      “Three
        Month 90-Day Delinquency Rate”: As to any Payment Date, the arithmetic average
        of the Ninety Day Delinquency Rates for the related Payment Date and the
        two
        immediately preceding Payment Dates.

       

      “Trust”:
        The Renaissance Home Equity Loan Trust 2006-3.

       

      “Trust
        Agreement”: The Trust Agreement, dated as of September 27, 2006, between the
        Owner Trustee and the Depositor together with the Amended and Restated Trust
        Agreement dated as of September 28, 2006, among the Owner Trustee, the Depositor
        and Wells Fargo Bank, N.A., as Certificate Registrar and Certificate Paying
        Agent, relating to the Trust.

       

      “Trust
        Indenture Act” or “TIA”: The Trust Indenture Act of 1939, as amended from time
        to time, as in effect on any relevant date.

       

      “UCC”:
        The Uniform Commercial Code, as amended from time to time, as in effect in
        any
        specified jurisdiction.

       

      “Underwriters”:
        J.P. Morgan Securities Inc., Greenwich Capital Markets, Inc., Banc of America
        Securities LLC and Citigroup Global Markets Inc., or their
        successors.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]