Document:

<PAGE>

             MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES 2006-SL2

                                 Issuing Entity,

                        LASALLE BANK NATIONAL ASSOCIATION

                            Securities Administrator

                                       and

                                 CITIBANK, N.A.

                                Indenture Trustee

                                    INDENTURE

                           Dated as of August 8, 2006

                        MORTGAGE LOAN ASSET-BACKED NOTES

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................     9
   Section 1.01.  Definitions............................................     9
   Section 1.02.  Incorporation by Reference of Trust Indenture Act......     9
   Section 1.03.  Rules of Construction..................................    10
   Section 1.04.  Calculations of Interest...............................    10

ARTICLE II ORIGINAL ISSUANCE OF NOTES....................................    10
   Section 2.01.  Form...................................................    10
   Section 2.02.  Execution, Authentication and Delivery.................    11
   Section 2.03.  Acceptance of the Swap Agreement by the Securities
                     Administrator.......................................    11

ARTICLE III COVENANTS....................................................    12
   Section 3.01.  Acceptance of the Mortgage Loans by the Issuing Entity.    12
   Section 3.02.  Collection of Payments with Respect to Loans...........    13
   Section 3.03.  Maintenance of Office or Agency........................    13
   Section 3.04.  Money for Payments To Be Held in Trust; Paying Agent...    14
   Section 3.05.  Existence..............................................    15
   Section 3.06.  Payment of Principal and Interest......................    15
   Section 3.07.  Protection of Trust Estate.............................    21
   Section 3.08.  Opinions as to Trust Estate............................    22
   Section 3.09.  Performance of Obligations.............................    22
   Section 3.10.  Negative Covenants.....................................    23
   Section 3.11.  Annual Statement as to Compliance......................    23
   Section 3.12.  Representations and Warranties Concerning the Mortgage
                     Loans...............................................    23
   Section 3.13.  Assignee of Record of the Mortgage Loans...............    24
   Section 3.14.  Investment Company.....................................    24
   Section 3.15.  Servicer as Agent and Bailee of the Indenture Trustee..    24
   Section 3.16.  Issuing Entity May Consolidate, etc....................    24
   Section 3.17.  Successor or Transferee................................    26
   Section 3.18.  No Other Business......................................    26
   Section 3.19.  No Borrowing...........................................    26
   Section 3.20.  Guarantees, Loans, Advances and Other Liabilities......    27
   Section 3.21.  Capital Expenditures...................................    27
   Section 3.22.  Owner Trustee Not Liable for Certificates or Related
                     Documents...........................................    27
   Section 3.23.  Restricted Payments....................................    27
   Section 3.24.  Notice of Events of Default............................    27
   Section 3.25.  Further Instruments and Acts...........................    28
   Section 3.26.  Statements to Noteholders..............................    28
   Section 3.27.  Allocation of Realized Losses..........................    30
   Section 3.28.  Determination of the LIBOR Rate........................    31
   Section 3.29.  No Recourse............................................    32
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 3.30.  Certain Representations Regarding the Trust Estate.....    32
   Section 3.31.  The Swap Agreement.....................................    33
   Section 3.32.  Notice to the Custodians...............................    34

ARTICLE IV THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE............    34
   Section 4.01.  The Notes..............................................    34
   Section 4.02.  Registration of and Limitations on Transfer and
                     Exchange of Notes; Appointment of Note Registrar and
                     Certificate Registrar...............................    35
   Section 4.03.  Mutilated, Destroyed, Lost or Stolen Notes.............    38
   Section 4.04.  Persons Deemed Owners..................................    39
   Section 4.05.  Cancellation...........................................    39
   Section 4.06.  Book-Entry Notes.......................................    39
   Section 4.07.  Notices to Depository..................................    40
   Section 4.08.  Definitive Notes.......................................    40
   Section 4.09.  Tax Treatment..........................................    40
   Section 4.10.  Satisfaction and Discharge of Indenture................    41
   Section 4.11.  Application of Trust Money.............................    42
   Section 4.12.  Repayment of Monies Held by Paying Agent...............    42
   Section 4.13.  Temporary Notes........................................    42

ARTICLE V DEFAULT AND REMEDIES...........................................    43
   Section 5.01.  Events of Default......................................    43
   Section 5.02.  Acceleration of Maturity; Rescission and Annulment.....    43
   Section 5.03.  Collection of Indebtedness and Suits for Enforcement by
                     Indenture Trustee...................................    44
   Section 5.04.  Remedies; Priorities...................................    46
   Section 5.05.  Optional Preservation of the Trust Estate..............    47
   Section 5.06.  Limitation of Suits....................................    47
   Section 5.07.  Unconditional Rights of Noteholders to Receive
                     Principal and Interest..............................    48
   Section 5.08.  Restoration of Rights and Remedies.....................    48
   Section 5.09.  Rights and Remedies Cumulative.........................    48
   Section 5.10.  Delay or Omission Not a Waiver.........................    48
   Section 5.11.  Control by Noteholders.................................    48
   Section 5.12.  Waiver of Past Defaults................................    49
   Section 5.13.  Undertaking for Costs..................................    49
   Section 5.14.  Waiver of Stay or Extension Laws.......................    50
   Section 5.15.  Sale of Trust Estate...................................    50
   Section 5.16.  Action on Notes........................................    51

ARTICLE VI THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR........    52
   Section 6.01.  Duties of the Indenture Trustee and the Securities
                     Administrator.......................................    52
   Section 6.02.  Rights of the Indenture Trustee and the Securities
                     Administrator.......................................    53
   Section 6.03.  Individual Rights of Indenture Trustee and the
                     Securities Administrator............................    54
   Section 6.04.  Indenture Trustee's Disclaimer and Securities
                     Administrator's Disclaimer..........................    54
   Section 6.05.  Notice of Event of Default.............................    55
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 6.06.  Reports by Securities Administrator to Holders.........    55
   Section 6.07.  Compensation and Indemnity.............................    55
   Section 6.08.  Replacement of Indenture Trustee or Securities
                     Administrator.......................................    56
   Section 6.09.  Successor Indenture Trustee or Securities Administrator
                     by Merger......................................         57
   Section 6.10.  Appointment of Co-Indenture Trustee or Separate
                     Indenture Trustee...................................    57
   Section 6.11.  Eligibility; Disqualification..........................    59
   Section 6.12.  Preferential Collection of Claims Against Issuing
                     Entity..............................................    59
   Section 6.13.  Representations and Warranties.........................    59
   Section 6.14.  Directions to Indenture Trustee and Securities
                     Administrator.......................................    59
   Section 6.15.  Compliance with Withholding-Requirements...............    60

ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS...............................    60
   Section 7.01   Issuing Entity to Furnish Securities Administrator
                     Names and Addresses of Noteholders..................    60
   Section 7.02.  Preservation of Information; Communications to
                     Noteholders.........................................    60
   Section 7.03.  Reports by Issuing Entity..............................    60
   Section 7.04.  Reports by Securities Administrator....................    61
   Section 7.05.  Payments to the Owner Trustee..........................    61

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES........................    61
   Section 8.01.  Collection of Money....................................    61
   Section 8.02.  Trust Accounts.........................................    62
   Section 8.03.  Officer's Certificate..................................    62
   Section 8.04.  Termination Upon Payment to Noteholders................    62
   Section 8.05.  Release of Trust Estate................................    62
   Section 8.06.  Surrender of Notes Upon Final Payment..................    63

ARTICLE IX SUPPLEMENTAL INDENTURES.......................................    63
   Section 9.01.  Supplemental Indentures Without Consent of Noteholders.    63
   Section 9.02.  Supplemental Indentures With Consent of Noteholders....    65
   Section 9.03.  Execution of Supplemental Indentures...................    66
   Section 9.04.  Effect of Supplemental Indenture.......................    66
   Section 9.05.  Conformity with Trust Indenture Act....................    67
   Section 9.06.  Reference in Notes to Supplemental Indentures..........    67
   Section 9.07.  Supplemental Indentures Affecting the Master Servicer,
                     the Servicers and the Swap Counterparty.............    67

ARTICLE X TAX MATTERS....................................................    67
   Section 10.01. REMIC Provisions.......................................    67
   Section 10.02. REMIC Distributions....................................    74

ARTICLE XI MISCELLANEOUS.................................................    75
   Section 11.01. Compliance Certificates and Opinions, etc..............    75
   Section 11.02. Form of Documents Delivered to Indenture Trustee and
                     Securities Administrator............................    77
   Section 11.03. Acts of Noteholders....................................    78
   Section 11.04. Notices, etc., to Indenture Trustee, Securities
                     Administrator, Issuing Entity and Rating Agencies...    78
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 11.05. Notices to Noteholders; Waiver.........................    79
   Section 11.06. Alternate Payment and Notice Provisions................    80
   Section 11.07. Conflict with Trust Indenture Act......................    80
   Section 11.08. Effect of Headings.....................................    80
   Section 11.09. Successors and Assigns.................................    80
   Section 11.10. Separability...........................................    80
   Section 11.11. Benefits of Indenture..................................    80
   Section 11.12. Legal Holidays.........................................    81
   Section 11.13. GOVERNING LAW..........................................    81
   Section 11.14. Counterparts...........................................    81
   Section 11.15. Recording of Indenture.................................    81
   Section 11.16. Issuing Entity Obligation..............................    81
   Section 11.17. No Petition............................................    82
   Section 11.18. Optional Redemption....................................    82
   Section 11.19. Inspection.............................................    84
   Section 11.20. Limitation of Liability of Owner Trustee...............    84
   Section 11.21. [Reserved].............................................    84
   Section 11.22. Additional Termination Requirements....................    84
</TABLE>

<PAGE>

EXHIBITS

Exhibit A-1 -- Form of Class A Notes
Exhibit A-2 -- Form of Class M Notes
Exhibit A-3 -- Form of Class B Notes
Exhibit B   -- Form of Transferee Certificate
Exhibit C   -- Form of Transferor Certificate
Exhibit D   -- Form of Rule 144A Investment Representation
Exhibit E   -- Form of Swap Agreement
Exhibit F   -- ERISA Transfer Affidavit
Exhibit G   -- Form of Initial/Interim/Final Certification

APPENDIX A - DEFINED TERMS
<PAGE>

     This Indenture, dated as of August 8, 2006, is entered into among Merrill
Lynch Mortgage Investors Trust 2006-SL2, a Delaware statutory trust, as Issuing
Entity (the "Issuing Entity"), LaSalle Bank National Association, as Securities
Administrator (the "Securities Administrator") and Citibank, N.A., as Indenture
Trustee (the "Indenture Trustee").

                                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 Issuing Entity's
Mortgage Loan Asset-Backed Notes, Series 2006-SL2 (the "Notes").

                                 GRANTING CLAUSE

     The Issuing Entity hereby Grants to the Indenture Trustee at the Closing
Date, as trustee for the benefit of the Holders of the Notes and the Swap
Counterparty, all of the Issuing Entity's right, title and interest in and to,
whether now existing or hereafter created, (a) the Mortgage Loans and any
Additional Balances arising thereafter, and all monies due or to become due
thereunder; (b) the Payment Account and all funds on deposit or credited thereto
from time to time and all proceeds thereof, excluding any investment income from
such funds; (c) all hazard insurance policies; (d) 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, notes drafts, acceptances, checks, deposit accounts, rights to payments
of any and every kind, and other forms of obligations and receivables,
instruments and other property that at any time constitute all or part of or are
included in the proceeds of any of the foregoing; (e) all accounts, chattel
paper, deposit accounts, documents, general intangibles, goods, instruments,
investment property, letter-of-credit rights, letters of credit, money and oil,
gas and other minerals, consisting of, arising from or relating to, any of the
foregoing; (f) the rights with respect to the Swap Agreement and the Swap
Account and (g) all proceeds of the foregoing (collectively, the "Trust Estate"
or 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 and
payments to the Swap Counterparty, subject to the priority set forth herein, 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 and
the Swap Counterparty, acknowledges such Grant, accepts the trust under this
Indenture in accordance with the provisions hereof and each of the Indenture
Trustee and the Securities Administrator agree to perform their respective
duties as Indenture Trustee and Securities Administrator as required herein.

                              PRELIMINARY STATEMENT

     The Notes will consist of twelve classes of notes, designated as (i) the
Class A Notes, (ii) the Class M-1 Notes, (iii) the Class M-2 Notes, (iv) the
Class M-3 Notes, (v) the Class M-4 Notes, (vi) the Class M-5 Notes, (vii) the
Class M-6 Notes, (viii) the Class M-7 Notes, (ix) the Class M-8 Notes, (x) the
Class M-9 Notes, (xi) the Class B-1 Notes and (xii) the Class B-2 Notes.

<PAGE>

The Trust (as defined in the Trust Agreement) for federal income tax purposes
will consist of (i) three real estate mortgage investment conduits, (ii) the
right to receive payments distributable to the Class P Certificates pursuant to
the Trust Agreement, (iii) the Swap Agreement and the Swap Account and (iv) the
grantor trusts described in Section 10.01 hereof. The SWAP REMIC will consist of
all of the assets, including the Excluded Amounts, constituting the Trust (other
than the assets described in clauses (ii), (iii) and (iv) above, other than the
SWAP REMIC Regular Interests and other than the Lower Tier REMIC Regular
Interests) and will be evidenced by the SWAP REMIC Regular Interests (which will
be uncertificated and will represent the "regular interests" in the SWAP REMIC)
and the Class G Certificate as the single "residual interest" in the SWAP REMIC.
The Lower Tier REMIC will consist of the SWAP REMIC Regular Interests and will
be evidenced by the Lower Tier REMIC Regular Interests (which will be
uncertificated and will represent the "regular interests" in the Lower Tier
REMIC) and the Class LTR Interest as the single "residual interest" in the Lower
Tier REMIC. The Indenture Trustee will hold the Lower Tier REMIC Regular
Interests. The Upper Tier REMIC will consist of the Lower Tier REMIC Regular
Interests and will be evidenced by the REMIC Regular Interests (which will
represent the "regular interests" in the Upper Tier REMIC) and the Residual
Interest as the single "residual interest" in the Upper Tier REMIC. The Class R
Certificate will represent beneficial ownership of the Class LTR Interest and
the Residual Interest. The "latest possible maturity date" for federal income
tax purposes of all interests created hereby will be the Final Maturity Date.

THE SWAP REMIC

     The following table sets forth the designations, initial principal balances
and interest rates for each interest in the SWAP REMIC:

<TABLE>
<CAPTION>
Class                 Initial Principal Balance   Interest Rate
-----                 -------------------------   -------------
<S>                   <C>                         <C>
SW-Z                       $93,061,596.490             (1)
SW-1A                      $ 6,136,415.500             (2)
SW-1B                      $ 6,136,415.500             (3)
SW-2A                      $ 5,709,760.500             (2)
SW-2B                      $ 5,709,760.500             (3)
SW-3A                      $ 5,301,187.500             (2)
SW-3B                      $ 5,301,187.500             (3)
SW-4A                      $ 4,905,945.500             (2)
SW-4B                      $ 4,905,945.500             (3)
SW-5A                      $ 4,380,463.500             (2)
SW-5B                      $ 4,380,463.500             (3)
SW-6A                      $ 4,215,666.500             (2)
SW-6B                      $ 4,215,666.500             (3)
SW-7A                      $ 3,792,078.000             (2)
SW-7B                      $ 3,792,078.000             (3)
SW-8A                      $ 3,537,071.500             (2)
SW-8B                      $ 3,537,071.500             (3)
SW-9A                      $ 3,257,866.500             (2)
SW-9B                      $ 3,257,866.500             (3)
</TABLE>

                                        2

<PAGE>

<TABLE>
<CAPTION>
Class                 Initial Principal Balance   Interest Rate
-----                 -------------------------   -------------
<S>                   <C>                         <C>
SW-10A                     $ 3,004,050.000             (2)
SW-10B                     $ 3,004,050.000             (3)
SW-11A                     $ 2,731,336.500             (2)
SW-11B                     $ 2,731,336.500             (3)
SW-12A                     $ 2,523,526.500             (2)
SW-12B                     $ 2,523,526.500             (3)
SW-13A                     $ 2,321,137.000             (2)
SW-13B                     $ 2,321,137.000             (3)
SW-14A                     $ 2,140,299.500             (2)
SW-14B                     $ 2,140,299.500             (3)
SW-15A                     $ 1,968,592.500             (2)
SW-15B                     $ 1,968,592.500             (3)
SW-16A                     $ 1,803,745.000             (2)
SW-16B                     $ 1,803,745.000             (3)
SW-17A                     $ 1,671,970.500             (2)
SW-17B                     $ 1,671,970.500             (3)
SW-18A                     $ 1,529,760.000             (2)
SW-18B                     $ 1,529,760.000             (3)
SW-19A                     $ 1,403,050.000             (2)
SW-19B                     $ 1,403,050.000             (3)
SW-20A                     $ 1,285,775.500             (2)
SW-20B                     $ 1,285,775.500             (3)
SW-21A                     $ 1,171,929.500             (2)
SW-21B                     $ 1,171,929.500             (3)
SW-22A                     $   720,454.000             (2)
SW-22B                     $   720,454.000             (3)
SW-23A                     $   882,750.000             (2)
SW-23B                     $   882,750.000             (3)
SW-24A                     $   808,793.000             (2)
SW-24B                     $   808,793.000             (3)
SW-25A                     $   760,866.000             (2)
SW-25B                     $   760,866.000             (3)
SW-26A                     $   678,489.500             (2)
SW-26B                     $   678,489.500             (3)
SW-27A                     $   618,582.000             (2)
SW-27B                     $   618,582.000             (3)
SW-28A                     $   584,100.500             (2)
SW-28B                     $   584,100.500             (3)
SW-29A                     $   512,774.000             (2)
SW-29B                     $   512,774.000             (3)
SW-30A                     $   461,730.000             (2)
SW-30B                     $   461,730.000             (3)
SW-31A                     $   500,429.500             (2)
SW-31B                     $   500,429.500             (3)
</TABLE>

                                        3

<PAGE>

<TABLE>
<CAPTION>
Class                 Initial Principal Balance   Interest Rate
-----                 -------------------------   -------------
<S>                   <C>                         <C>
SW-32A                     $   555,903.500             (2)
SW-32B                     $   555,903.500             (3)
SW-33A                     $   513,593.000             (2)
SW-33B                     $   513,593.000             (3)
SW-34A                     $   467,126.500             (2)
SW-34B                     $   467,126.500             (3)
SW-35A                     $ 5,470,382.000             (2)
SW-35B                     $ 5,470,382.000             (3)
Class G Certificate                     (4)            (4)
</TABLE>

(1)  The interest rate on the Class SW-Z Interest shall be a per annum rate
     equal to the Net WAC.

(2)  For any Payment Date, the interest rate on each SWAP REMIC Regular Interest
     ending with the designation "A" shall be a per annum rate equal to 2 times
     the Net WAC, subject to a maximum rate of 2 times the REMIC Swap Rate for
     such Payment Date.

(3)  For any Payment Date, the interest rate on each SWAP REMIC Regular Interest
     ending with the designation "B" shall be a per annum rate equal to the
     greater of (x) the excess, if any, of (i) 2 times the Net WAC over (ii) 2
     times the REMIC Swap Rate for such Payment Date and (y) 0.00%.

(4)  Initially, the Class G Certificate shall have no principal amount. The
     Class G Certificate principal amount shall reflect the aggregate
     unreimbursed contributions to the SWAP REMIC by the holder of the Class G
     Certificate to fund the purchase of additional draws on home equity lines
     of credit included in the SWAP REMIC after the Closing Date where such
     purchases are not funded by principal collections on the Mortgage Loans.
     Such principal amount shall reflect both the Additional Balance Advance
     Amount and unreimbursed Excluded Amounts. The Class G Certificate shall
     accrue interest on such principal amount at a per annum rate equal to the
     Net WAC.

THE LOWER TIER REMIC

     The following table sets forth the designations, initial principal
balances, interest rates and Classes of Corresponding Notes for each interest in
the Lower Tier REMIC:

<TABLE>
<CAPTION>
                                             Class(es) of
        Initial Principal                   Corresponding
Class        Balance        Interest Rate       Notes
-----   -----------------   -------------   -------------
<S>     <C>                 <C>             <C>
LTA            (1)               (3)             A, R
LTM-1          (1)               (3)             M-1
LTM-2          (1)               (3)             M-2
</TABLE>

                                        4

<PAGE>

<TABLE>
<CAPTION>
                                             Class(es) of
        Initial Principal                   Corresponding
Class        Balance        Interest Rate       Notes
-----   -----------------   -------------   -------------
<S>     <C>                 <C>             <C>
LTM-3          (1)               (3)             M-3
LTM-4          (1)               (3)             M-4
LTM-5          (1)               (3)             M-5
LTM-6          (1)               (3)             M-6
LTM-7          (1)               (3)             M-7
LTM-8          (1)               (3)             M-8
LTM-9          (1)               (3)             M-9
LTB-1          (1)               (3)             B-1
LTB-2          (1)               (3)             B-2
LTX            (2)               (3)             N/A
LT-IO          (4)               (4)             N/A
LTR            (5)               (5)             N/A
</TABLE>

(1)  The initial principal balance of each of these Lower Tier REMIC Regular
     Interests shall equal 1/2 of the initial Class Principal Balance of its
     Corresponding Notes.

(2)  The initial principal balance of the Class LTX Interest shall equal the
     excess of (i) the aggregate Cut-off Date Loan Balance of the Mortgage Loans
     over (ii) the initial principal balance of the Lower Tier REMIC Marker
     Interests.

(3)  For each Payment Date, the interest rate for each of the Lower Tier REMIC
     Regular Interests (other than the Class LT-IO Interest) shall be a per
     annum rate (but not less than zero) equal to the product of (i) the
     weighted average of the interest rates on the SWAP REMIC Regular Interests
     for such Payment Date and (ii) a fraction the numerator of which is 30 and
     the denominator of which is the actual number of days in the Accrual Period
     for the LIBOR Securities, provided however, that for any Payment Date on
     which the Class LT-IO Interest is entitled to a portion of interest
     accruals on a SWAP REMIC Regular Interest ending with a designation "A" as
     described in footnote 4 below, such weighted average shall be computed by
     first subjecting the rate on such SWAP REMIC Regular Interest to a cap
     equal to Swap LIBOR for such Payment Date.

(4)  The Class LT-IO Interest is an interest-only class that does not have a
     principal balance. For only those Payment Dates listed in the first column
     of the table below, the Class LT-IO Interest shall be entitled to interest
     accrued on the SWAP REMIC Regular Interest listed in the second column
     below at a per annum rate equal to the excess, if any, of (i) the interest
     rate for such SWAP REMIC Regular Interest for such Payment Date over (ii)
     Swap LIBOR for such Payment Date.

<TABLE>
<CAPTION>
Payment Date   SWAP REMIC Regular Interest
------------   ---------------------------
<S>            <C>
7              Class SW-1A
</TABLE>

                                        5

<PAGE>

<TABLE>
<CAPTION>
Payment Date   SWAP REMIC Regular Interest
------------   ---------------------------
<S>            <C>
7-8            Class SW-2A
7-9            Class SW-3A
7-10           Class SW-4A
7-11           Class SW-5A
7-12           Class SW-6A
7-13           Class SW-7A
7-14           Class SW-8A
7-15           Class SW-9A
7-16           Class SW-10A
7-17           Class SW-11A
7-18           Class SW-12A
7-19           Class SW-13A
7-20           Class SW-14A
7-21           Class SW-15A
7-22           Class SW-16A
7-23           Class SW-17A
7-24           Class SW-18A
7-25           Class SW-19A
7-26           Class SW-20A
7-27           Class SW-21A
7-30           Class SW-22A
7-31           Class SW-23A
</TABLE>

                                        6

<PAGE>

<TABLE>
<CAPTION>
Payment Date   SWAP REMIC Regular Interest
------------   ---------------------------
<S>            <C>
7-32           Class SW-24A
7-33           Class SW-25A
7-34           Class SW-26A
7-35           Class SW-27A
7-36           Class SW-28A
7-37           Class SW-29A
7-38           Class SW-30A
7-39           Class SW-31A
7-40           Class SW-32A
7-41           Class SW-33A
7-42           Class SW-34A
7-43           Class SW-35A
</TABLE>

(5)  The Class LTR Interest shall have no principal amount and shall bear no
     interest.

UPPER TIER REMIC

     The following table sets forth the designation, the initial principal
balances, the interest rates and Classes of Related Notes for each of the
interests in the Upper Tier REMIC.

<TABLE>
<CAPTION>
                                  Initial Principal
Class                                  Balance        Rate   Class of Related Notes
-----                             -----------------   ----   ----------------------
<S>                               <C>                 <C>    <C>
UTA                                      (1)           (2)              A
UTM-1                                    (1)           (2)             M-1
UTM-2                                    (1)           (2)             M-2
UTM-3                                    (1)           (2)             M-3
UTM-4                                    (1)           (2)             M-4
UTM-5                                    (1)           (2)             M-5
UTM-6                                    (1)           (2)             M-6
UTM-7                                    (1)           (2)             M-7
</TABLE>

                                        7

<PAGE>

<TABLE>
<CAPTION>
                                  Initial Principal
Class                                  Balance        Rate   Class of Related Notes
-----                             -----------------   ----   ----------------------
<S>                               <C>                 <C>    <C>
UTM-8                                    (1)           (2)             M-8
UTM-9                                    (1)           (2)             M-9
UTB-1                                    (1)           (2)             B-1
UTB-2                                    (1)           (2)             B-2
Uncertificated Class C Interest          (3)           (3)             N/A
UT-IO                                    (4)           (4)             N/A
Residual Interest                        (1)           (2)              R
</TABLE>

(1)  The initial principal balance of each of these REMIC Regular Interests and
     the Residual Interest shall equal the initial principal balance of its
     Class of Related Notes.

(2)  The interest rates on each of these REMIC Regular Interests and the
     Residual Interest shall be an annual rate equal to the Note Interest Rate
     or Pass-Through Rate for the Class of Related Notes, provided that in lieu
     of the applicable Available Funds Caps set forth in the definition of an
     applicable Note Interest Rate or Pass-Through Rate, the applicable Upper
     Tier REMIC Net WAC Cap shall be used.

(3)  The Uncertificated Class C Interest shall have an initial principal balance
     equal to the initial Overcollateralization Amount. The Uncertificated Class
     C Interest shall accrue interest on a notional balance set forth in the
     definition of Class C Current Interest at a rate equal to the Class C
     Distributable Interest Rate. The Uncertificated Class C Interest shall be
     represented by the Class C Certificates.

(4)  The Class UT-IO Interest shall have no principal amount and will not have
     an interest rate, but will be entitled to 100% of the interest accrued with
     respect to the Class LT-IO Interest. The Class UT-IO Interest shall be
     represented by the Class C Certificates.

THE SECURITIES

<TABLE>
<CAPTION>
              Note Balance or      Note Interest Rate                           Integral Multiples in
            Certificate Balance   or Pass-Through Rate   Minimum Denomination     Excess of Minimum
            -------------------   --------------------   --------------------   ---------------------
<S>         <C>                   <C>                    <C>                    <C>
Class A        $ 174,177,000          Adjustable(1)             $25,000                  $  1
Class P                  N/A               N/A                      100%                  N/A
Class R        $         100           Variable(2)              $   100                   N/A
Class M-1      $  12,610,000          Adjustable(1)             $25,000                  $  1
Class M-2      $  12,360,000          Adjustable(1)             $25,000                  $  1
Class M-3      $   4,994,000          Adjustable(1)             $25,000                  $  1
Class M-4      $   5,993,000          Adjustable(1)             $25,000                  $  1
Class M-5      $   5,244,000          Adjustable(1)             $25,000                  $  1
Class M-6      $   4,869,000          Adjustable(1)             $25,000                  $  1
Class M-7      $   4,994,000          Adjustable(1)             $25,000                  $  1
</TABLE>

                                        8

<PAGE>

<TABLE>
<CAPTION>
              Note Balance or      Note Interest Rate                           Integral Multiples in
            Certificate Balance   or Pass-Through Rate   Minimum Denomination     Excess of Minimum
            -------------------   --------------------   --------------------   ---------------------
<S>         <C>                   <C>                    <C>                    <C>
Class M-8      $   4,370,000          Adjustable(1)             $25,000                  $  1
Class M-9      $   3,620,000          Adjustable(1)             $25,000                  $  1
Class B-1      $   3,620,000          Adjustable(1)             $25,000                  $  1
Class B-2      $   3,620,000          Adjustable(1)             $25,000                  $  1
Class G        $        0.00          Adjustable(2)                 100%                  N/A
Class C        $9,245,698.49           Variable(3)                  100%                  N/A
</TABLE>

----------
(1)  The Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
     M-6, Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Notes and the
     Class R Certificates have an adjustable rate and will receive interest
     pursuant to formulas based on LIBOR, subject to the Available Funds Cap and
     the Maximum Rate Cap.

(2)  The Pass-Through Rate on the Class G Certificates is equal to the Net WAC.

(3)  The Class C Certificates will have an initial principal balance of
     $9,245,698.49. For any Payment Date, the Class C Certificates will be
     entitled to the Class C Current Interest.

                                    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.

                                        9
<PAGE>

     "obligor" on the indenture securities means the Issuing Entity 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 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;

          (vi) the term "proceeds" has the meaning ascribed thereto in the UCC;
and

          (vii) 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.

     Section 1.04. Calculations of Interest. All calculations of interest on the
Notes shall be made on the basis of the actual number of days in the Accrual
Period and a year assumed to consist of 360 days. All dollar amounts calculated
hereunder shall be rounded up to the nearest penny with one-half of one penny
being rounded up.

                                   ARTICLE II

                           ORIGINAL ISSUANCE OF NOTES

     Section 2.01. Form. The Class A, Class M and Class B Notes, together with
the Securities Administrator's certificate of authentication, shall be in
substantially the forms set forth in Exhibits A-1, A-2 and A-3 to this
Indenture, as applicable, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution of the Notes. Any portion of the text of any Note may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the
Note.

                                       10

<PAGE>

     The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the Authorized Officers executing such Notes, as
evidenced by their execution of such Notes.

     Section 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuing Entity 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 Issuing Entity shall bind the Issuing
Entity, 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 authenticate and deliver each Class of
Notes for original issue in an aggregate initial principal amount equal to the
Initial Class Principal Balance for such Class of Notes.

     Each of the Notes shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes in book-entry form, in the minimum initial
Class Principal Balances of $25,000 and in integral multiples of $1 in excess
thereof.

     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 the Swap Agreement by the Securities
Administrator. The Issuing Entity hereby directs the Securities Administrator to
execute and deliver on behalf of the Issuing Entity the Swap Agreement (in the
form of Exhibit E hereto) and to perform the Issuing Entity's obligations under
the Swap Agreement on the Closing Date and thereafter on behalf of the Holders
of the Notes. The Issuing Entity and the Holders of the Notes by their
acceptance of such Notes acknowledge and agree that the Securities Administrator
shall prepare and deliver any notices required to be delivered to the Swap
Counterparty under Sections 2(b), 2(d), 5(a), 6(a), 6(b), 6(d) and 12(b) of the
ISDA Master Agreement and shall do so solely in its capacity as Securities
Administrator and not in its individual capacity.

     The Securities Administrator acknowledges receipt of the Swap Agreement and
declares that it holds and will continue to hold the Swap Agreement and any
amendments, replacements or supplements thereto and all other assets of the
Issuing Entity as Securities Administrator in trust for the use and benefit of
all present and future Holders of the Notes. Every provision of this Indenture
affording protection to the Securities Administrator shall apply to the
performance of the Securities Administrator's duties under the Swap Agreement
and satisfaction of its obligations thereunder.

                                       11

<PAGE>

                                  ARTICLE III

                                   COVENANTS

     Section 3.01. Acceptance of the Mortgage Loans by the Issuing Entity.

     (a) The Issuing Entity acknowledges the sale, transfer and assignment of
the Trust Estate to it by the Depositor and receipt of, subject to further
review by the Custodian and the exceptions that may be noted by the Custodian on
behalf of the Indenture Trustee, pursuant to the procedures described below, and
the Issuing Entity will cause the Custodian to hold, the documents (or certified
copies thereof) delivered to the Custodian pursuant to Section 3.01 of the Trust
Agreement and any amendments, replacements or supplements thereto and all other
assets of the Trust Estate delivered to it, in trust for the use and benefit of
all present and future Holders of the Notes issued pursuant to this Indenture
and the Certificates issued pursuant to the Trust Agreement.

     On the Closing Date, with respect to the Mortgage Loans, in accordance with
the Custodial Agreements, the Custodians shall acknowledge with respect to each
Mortgage Loan by delivery to the Depositor, the Sponsor, the Master Servicer,
the Indenture Trustee and the Issuing Entity of an Initial Certification, in
substantially the form attached hereto as Exhibit G, receipt of the Mortgage
File, but without review of such Mortgage File, except to the extent necessary
to confirm that such Mortgage File contains the related Mortgage Note or lost
note affidavit. No later than 90 days after the Closing Date (or with respect to
any Replacement Mortgage Loan, within five (5) Business Days after the receipt
by the respective Custodian thereof), the Custodian, in accordance with the
respective Custodial Agreement, shall review each Mortgage File delivered to it
and shall execute and deliver to the Depositor, the Sponsor, the Master
Servicer, the Indenture Trustee and the Issuing Entity an Interim Certification,
in substantially the form attached hereto as Exhibit G. In conducting such
review, the Custodian will ascertain whether all documents required to be
reviewed by it have been executed and received, and based on the Mortgage Loan
Schedule, whether the Mortgage Notes relate, determined on the basis of the
Mortgagor name, original principal balance and loan number, to the Mortgage
Loans it has received, as identified in the Mortgage Loan Schedule. In
performing any such review, the Custodian may conclusively rely on the purported
due execution and genuineness of any such document and on the purported
genuineness of any signature thereon. If the Custodian finds any document
constituting part of the Mortgage File has not been executed or received, or is
unrelated, determined on the basis of the Mortgagor name, original principal
balance and loan number, to the Mortgage Loans identified on the Mortgage Loan
Schedule or does not conform on its face to the review criteria specified in
this Section (a "Material Defect"), the Custodian shall notify the Sponsor, the
Depositor, the Master Servicer, the Issuing Entity and the Indenture Trustee of
such Material Defect in writing.

     (b) No later than 180 days after the Closing Date, the Custodian, in
accordance with the Custodial Agreement, will review the Mortgage Files
delivered to it and will execute and deliver or cause to be executed and
delivered to the Depositor, the Sponsor, the Master Servicer, the Indenture
Trustee, the Note Insurer and the Issuing Entity a Final Certification, in
substantially the form attached hereto as Exhibit G. In conducting such review,
the Custodian will ascertain whether an original of each document required to be
recorded has been returned

                                       12

<PAGE>

from the recording office with evidence of recording thereon or a certified copy
has been obtained from the recording office. If the Custodian finds a Material
Defect, the Custodian shall promptly notify the Sponsor, the Depositor, the
Master Servicer, the Issuing Entity and the Indenture Trustee in writing
(provided, however, that with respect to those documents described in
subsections (D), (E), and (F) of Section 3.01 of the Trust Agreement, the
Custodian's obligations shall extend only to the documents actually delivered to
the Custodian pursuant to such subsections).

     In accordance with the Mortgage Loan Sale and Assignment Agreement, the
Sponsor shall correct or cure any such Material Defect within 90 days from the
date of notice from the Custodian or the Indenture Trustee of the Material
Defect and if the Sponsor is unable to cure such Material Defect within such
period, and if such Material Defect materially and adversely affects the
interests of the Noteholders or the Certificateholders in the related Mortgage
Loan, the Indenture Trustee shall enforce the Sponsor's obligation under the
Mortgage Loan Sale and Assignment Agreement to provide a Replacement Mortgage
Loan or purchase such Mortgage Loan at the Repurchase Price; provided, however,
that if such defect relates solely to the inability of the Sponsor to deliver
the original Security Instrument or intervening assignments thereof, or a
certified copy, because the originals of such documents or a certified copy,
have not been returned by the applicable jurisdiction, the Sponsor shall not be
required to purchase or replace such Mortgage Loan, if the Sponsor delivers such
original documents or certified copy promptly upon receipt, but in no event
later than 360 days after the Closing Date. The foregoing repurchase or
substitution obligation shall not apply in the event that the Sponsor cannot
deliver such original or copy of any document submitted for recording to the
appropriate recording office in the applicable jurisdiction because such
document has not been returned by such office; provided that the Sponsor shall
instead deliver a recording receipt of such recording office or, if such receipt
is not available, a certificate confirming that such documents have been
accepted for recording, and delivery to the Custodian on behalf of the Indenture
Trustee shall be effected by the Sponsor within thirty days of its receipt of
the original recorded document.

     Section 3.02. Collection of Payments with Respect to Mortgage Loans. The
Securities Administrator shall establish and maintain with itself the Payment
Account in which the Securities Administrator shall, subject to the terms of
this paragraph, deposit, on the same Business Day as it is received from the
Master Servicer (if received prior to 1 PM New York City time, or if received
thereafter, on the next Business Day), each remittance received by the
Securities Administrator with respect to the Mortgage Loans. The Securities
Administrator shall make all payments of principal and interest on the Notes,
subject to Section 3.04, as provided in Section 3.06 from monies on deposit in
the Payment Account.

     Section 3.03. Maintenance of Office or Agency. The Issuing Entity will
maintain in Chicago, Illinois, 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 Issuing Entity in respect of the Notes and this Indenture may be served. The
Issuing Entity hereby initially appoints the Securities Administrator to serve
as its agent for the foregoing purposes. If at any time the Issuing Entity shall
fail to maintain any such office or agency or shall fail to furnish the
Securities Administrator with the address thereof, such surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the

                                       13

<PAGE>

Issuing Entity hereby appoints the Securities Administrator as its agent to
receive all such surrenders, notices and demands.

     Section 3.04. Money for Payments To Be Held in Trust; Paying Agent.

     (a) As provided in Section 3.02, 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 3.02 shall be made on behalf of the Issuing
Entity 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 Issuing Entity except as provided in this Section 3.04. The Issuing Entity
hereby appoints the Securities Administrator to act as initial Paying Agent
hereunder.

     The Issuing Entity 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 3.04, 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 written notice of any default
     by the Issuing Entity 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 such default, 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; and

          (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.

     The Issuing Entity may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by
Issuing Entity 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

                                       14

<PAGE>

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 Issuing Entity upon receipt by the Securities Administrator
or any Paying Agent (as applicable) of an Issuing Entity Request containing
instructions to do so; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuing Entity for payment thereof
(but only to the extent of the amounts so paid to the Issuing Entity), 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
payment, shall at the expense and direction of the Issuing Entity cause to be
published once, in an Authorized Newspaper, 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 paid to the Issuing Entity. The Securities Administrator
may also adopt and employ, at the expense and direction of the Issuing Entity,
any other reasonable means of notification of such payment (including, but not
limited to, mailing notice of such payment to Noteholders 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 Noteholder).

     Section 3.05. Existence. The Issuing Entity 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 Issuing Entity hereunder
is or becomes, organized under the laws of any other state or of the United
States of America, in which case the Issuing Entity 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 Estate.

     Section 3.06. Payment of Principal and Interest.

     I. On each Distribution Date, from Interest Funds and Principal Funds (in
each case, without giving effect to the last proviso thereof), on deposit in the
Payment Account, the Securities Administrator shall remit to the Certificate
Paying Agent on behalf of the holder of the Class G Certificates, in respect of
Excluded Amounts, (i) as a payment of interest in respect of the Excluded
Amounts, the pro rata amount of interest collections allocated in accordance
with the definition of Excluded Amounts (without reduction to the outstanding
amount thereof) and (ii) the pro rata amount of principal collections allocated
in accordance with the definition of Excluded Amounts in reduction of the
outstanding amount thereof.

     II. In accordance with priorities set forth below, the Interest Funds and
Principal Funds which are not applied to Excluded Amounts as described in (I)
above and any amounts allocable to the Class P Certificates shall be applied by
the Securities Administrator, as follows:

                                       15

<PAGE>

     (a) On each Payment Date, the Interest Funds for such Payment Date are
required to be paid by the Securities Administrator in the following order of
priority, until such Interest Funds have been fully paid:

          (1) to the Certificate Paying Agent on behalf of the Class P
          Certificates, an amount equal to any prepayment charges received with
          respect to the Mortgage Loans or paid by the Servicers or the Sponsor
          in respect of prepayment charges pursuant to the Servicing Agreements
          during the related Prepayment Period;

          (2) to the Certificate Paying Agent on behalf of the Class G
          Certificates, the Current Interest for such class and any Interest
          Carry Forward Amount with respect to such class;

          (3) to the Swap Account, any Net Swap Payments owed by the Issuing
          Entity to the Swap Counterparty;

          (4) to the Swap Account, any Swap Termination Payment owed by the
          Issuing Entity to the Swap Counterparty (other than Defaulted Swap
          Termination Payments);

          (5) to the Class A Notes and the Certificate Paying Agent on behalf of
          the Class R Certificates, the Current Interest for each such class and
          any Interest Carry Forward Amount with respect to each such class;

          (6) to the Class M-1 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (7) to the Class M-2 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (8) to the Class M-3 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (9) to the Class M-4 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (10) to the Class M-5 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (11) to the Class M-6 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (12) to the Class M-7 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (13) to the Class M-8 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

                                       16

<PAGE>

          (14) to the Class M-9 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (15) to the Class B-1 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class;

          (16) to the Class B-2 Notes, the Current Interest for such class and
          any Interest Carry Forward Amount with respect to such class; and

          (17) any remainder to be distributed as described under Section
          3.06(II)(c) below.

     (b) On each Payment Date, the Securities Administrator will remit to the
Certificate Paying Agent on behalf of the Class G Certificates from Principal
Funds for that Payment Date, prior to any distributions set forth below, an
amount equal to the lesser of the Principal Funds (other than amounts reinvested
in draws on the HELOCs) and the Additional Balance Advance Amount, if any, as of
that Payment Date. On each Payment Date, the Principal Payment Amount for such
Payment Date is required to be paid by the Securities Administrator in the
following order of priority until the Principal Payment Amount has been fully
paid:

          (1) to the Swap Account, any Net Swap Payments owed to the Swap
          Counterparty to the extent not paid pursuant to paragraph (3) under
          Section 3.06(II)(a) above;

          (2) to the Swap Account, any Swap Termination Payment owed by the
          Issuing Entity to the Swap Counterparty (other than Defaulted Swap
          Termination Payments) to the extent not paid pursuant to paragraph (4)
          under Section 3.06(II)(a) above;

          (3) with respect to the Class R Certificate and the Class A Notes, the
          Class A Principal Payment Amount will be paid sequentially, first to
          the Certificate Paying Agent on behalf of the Class R Certificate and
          then to the holders of the Class A Notes, in that order, until the
          Class Principal Balance of each such class has been reduced to zero;
          provided, however, that on and after the Payment Date on which the
          aggregate Class Principal Balance of the Subordinate Notes has been
          reduced to zero, the Class A Principal Payment Amount will be paid pro
          rata to the Certificate Paying Agent on behalf of the Class R
          Certificate and to the holders of the Class A Notes until the Class
          Principal Balance of each such class has been reduced to zero;

          (4) to the Class M-1 Notes, the Class M-1 Principal Payment Amount;

          (5) to the Class M-2 Notes, the Class M-2 Principal Payment Amount;

          (6) to the Class M-3 Notes, the Class M-3 Principal Payment Amount;

          (7) to the Class M-4 Notes, the Class M-4 Principal Payment Amount;

                                       17

<PAGE>

          (8) to the Class M-5 Notes, the Class M-5 Principal Payment Amount;

          (9) to the Class M-6 Notes, the Class M-6 Principal Payment Amount;

          (10) to the Class M-7 Notes, the Class M-7 Principal Payment Amount;

          (11) to the Class M-8 Notes, the Class M-8 Principal Payment Amount;

          (12) to the Class M-9 Notes, the Class M-9 Principal Payment Amount;

          (13) to the Class B-1 Notes, the Class B-1 Principal Payment Amount;

          (14) to the Class B-2 Notes, the Class B-2 Principal Payment Amount;
          and

          (15) any remainder to be distributed as described in Section
          3.06(II)(c) below.

     (c) On each Payment Date, available Interest Funds and Principal Funds
(other than amounts reinvested in draws on the HELOCs) not otherwise required to
be paid with respect to principal of and interest on the securities or used to
purchase Additional Balances as described above under (a) and (b) will be
required to be paid by the Securities Administrator in respect of the following
amounts, without duplication, until fully paid:

          (1) to the Certificate Payment Agent on behalf of the Class G
          Certificate, any amounts due as set forth in subsection (a)(2) above
          to the extent unpaid from Interest Funds;

          (2) to the Class A Notes and to the Certificate Payment Agent on
          behalf of the Class R Certificate, any amounts due as described in the
          same order of priority as set forth in subsection (a)(5) above, to the
          extent unpaid from Interest Funds;

          (3) to the Subordinate Notes, any amounts due as described in the same
          order of priority as set forth in paragraphs (6) through (16) of
          Section 3.06(II)(a) above, to the extent unpaid from Interest Funds;

          (4) to the Class G Certificates, any outstanding Additional Balance
          Advance Amount;

          (5) in accordance with Section 3.06(II)(b) in respect of the payments
          of the Extra Principal Payment Amount, the Extra Principal Payment
          Amount;

          (6) to the Class M-1 Notes, any Unpaid Realized Loss Amount for such
          class;

          (7) to the Class M-2 Notes, any Unpaid Realized Loss Amount for such
          class;

          (8) to the Class M-3 Notes, any Unpaid Realized Loss Amount for such
          class;

          (9) to the Class M-4 Notes, any Unpaid Realized Loss Amount for such
          class;

          (10) to the Class M-5 Notes, any Unpaid Realized Loss Amount for such
          class;

                                       18

<PAGE>

          (11) to the Class M-6 Notes, any Unpaid Realized Loss Amount for such
          class;

          (12) to the Class M-7 Notes, any Unpaid Realized Loss Amount for such
          class;

          (13) to the Class M-8 Notes, any Unpaid Realized Loss Amount for such
          class;

          (14) to the Class M-9 Notes, any Unpaid Realized Loss Amount for such
          class;

          (15) to the Class B-1 Notes, any Unpaid Realized Loss Amount for such
          class;

          (16) to the Class B-2 Notes, any Unpaid Realized Loss Amount for such
          class;

          (17) to each Class of the Notes and to the Certificate Paying Agent on
          behalf of the Class R Certificates, on a pro rata basis, the Floating
          Rate Carryover in proportion to such amounts;

          (18) to the Swap Account, any Defaulted Swap Termination Payment;

          (19) to the Certificate Paying Agent on behalf of the Class C
          Certificates in the following order of priority, (A) the Class C
          Current Interest, (B) the Class C Interest Carry Forward Amount, (C)
          as principal on the Class C Certificate until the Class Principal
          Balance of the Class C Certificates has been reduced to zero and (D)
          the Unpaid Realized Loss Amount for the Class C Certificates; and

          (20) to the Certificate Paying Agent on behalf of the Class R
          Certificate, the remaining amount.

     (d) On or prior to each Payment Date, funds in the Swap Account will be
distributed by the Securities Administrator in the following order of priority:

          (1) to the Swap Counterparty, all Net Swap Payments, if any, owed to
          the Swap Counterparty for such Payment Date;

          (2) to the Swap Counterparty, any Swap Termination Payment, other than
          a Defaulted Swap Termination Payment, if any, owed to the Swap
          Counterparty;

          (3) to the Class A Notes and to the Certificate Paying Agent on behalf
          of the Class R Certificate, on a pro rata basis, any Current Interest
          and any Interest Carry Forward Amount with respect to each such class
          in proportion to such amounts to the extent unpaid from Interest Funds
          and Principal Funds;

          (4) sequentially, to each class of the Class M-1, Class M-2, Class
          M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
          Class B-1 and Class B-2 Notes, in that order, any Current Interest for
          such class to the extent unpaid from Interest Funds and Principal
          Funds;

          (5) to the Notes and to the Certificate Paying Agent on behalf of the
          Class R Certificate, to pay principal as described and in the same
          manner and order of

                                       19

<PAGE>

          priority as set forth in clauses (3) through (14) of Section
          3.06(II)(b) above in order to maintain amounts in respect of the
          Overcollateralization Amount, and after giving effect to distributions
          of the Principal Payment Amount for each such Class;

          (6) sequentially, to each class of the Class M-1, Class M-2, Class
          M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
          Class B-1 and Class B-2 Notes, in that order, any Interest Carry
          Forward with respect to such class to the extent unpaid from Interest
          Funds and Principal Funds;

          (7) sequentially, to each class of the Class M-1, Class M-2, Class
          M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
          Class B-1 and Class B-2 Notes, in that order, any Unpaid Realized Loss
          Amount for such class to the extent unpaid from Interest Funds and
          Principal Funds;

          (8) to the Notes and to the Certificate Paying Agent on behalf of the
          Class R Certificate, on a pro rata basis, any Floating Rate Carryover
          to the extent not paid from Interest Funds or Principal Funds based on
          the amount of such unpaid Floating Rate Carryover;

          (9) to the Swap Counterparty, any Defaulted Swap Termination Payment
          owed to the Swap Counterparty to the extent not already paid; and

          (10) to the Certificate Paying Agent on behalf of the holders of the
          Class C Certificates, any remaining amounts.

     Notwithstanding the foregoing, however, the sum of all cumulative amounts
distributed pursuant to clauses (5) and (7) above will not exceed cumulative
Realized Losses incurred.

     (e) No Current Interest will be payable with respect to any Class of Notes
after the Payment Date on which the Class Principal Balance of such Note has
been reduced to zero.

     (f) Each distribution 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 distribution to the accounts of its Depository
Participants in accordance with its normal procedures. Each Depository
Participant shall be responsible for disbursing such distribution to the 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 Note Registrar,
the Paying Agent, the Depositor or the Master Servicer shall have any
responsibility therefor.

     (g) On each Payment Date, the Certificate Paying Agent shall deposit in the
Certificate Distribution Account all amounts it receives pursuant to this
Section 3.06 for the purpose of reimbursing the Owner Trustee with respect to
certain amounts and distributing such funds to the Certificateholders. The
Certificate Paying Agent shall make distributions to the Certificateholders
under the Trust Agreement as directed by the Securities Administrator hereunder.

                                       20

<PAGE>

     (h) The amounts paid to Noteholders shall be paid to the Notes in
accordance with the applicable percentage as set forth in paragraph (i) below.
Any installment of interest or principal, if any, payable on any Note that is
punctually paid or duly provided for by the Issuing Entity on the applicable
Payment Date shall be paid to each Noteholder of record on the preceding Record
Date, by wire transfer to an account specified in writing by such Noteholder
reasonably satisfactory to the Securities Administrator as of the preceding
Record Date or in all other cases or if no such instructions have been delivered
to the Securities Administrator, by check to such Noteholder mailed to such
Noteholder's address as it appears in the Note Register the amount required to
be distributed to such Noteholder on such Payment Date pursuant to such
Noteholder's Notes; provided, however, that the Securities Administrator shall
not pay to such Noteholders any amount required to be withheld from a payment to
such Noteholder by the Code.

     (i) The principal of each Note shall be due and payable in full on the
Final Scheduled Payment Date for such Note as provided in the related form of
Note set forth in Exhibits A-1, A-2 and A-3. 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 relating to the Payment Date immediately preceding
the Final Scheduled Payment Date or other final Payment Date. Such notice shall
be mailed or transmitted by facsimile no later than five Business Days prior to
such Final Scheduled Payment 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 Scheduled Payment 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.

     Section 3.07. Protection of Trust Estate.

     (a) The Issuing Entity will from time to time authorize, 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; or

          (iii) cause the Trust Estate to enforce any of the Mortgage Loans;

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

     (b) Except as otherwise provided in this Indenture, neither the Indenture
Trustee nor the Securities Administrator shall remove any portion of the Trust
Estate that consists of money,

                                       21

<PAGE>

an instrument, tangible chattel paper, a negotiable document, a certificated
security, or goods, 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 3.08 unless the
Securities Administrator and 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 Issuing Entity hereby designates the Securities Administrator its agent
and attorney-in-fact to execute any instrument required to be executed pursuant
to this Section 3.07.

     Section 3.08. Opinions as to Trust Estate. On the Closing Date, the Issuing
Entity shall furnish to the Indenture Trustee, the Securities Administrator and
the Owner Trustee an Opinion of Counsel at the expense of the Issuing Entity
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
filing of any financing statements and continuation statements, as are necessary
to perfect the lien and security interest in the Mortgage Loans and reciting the
details of such action, or stating that, in the opinion of such counsel, no such
action is necessary to perfect such lien and security interest.

     Section 3.09. Performance of Obligations.

     (a) The Issuing Entity will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Operative Documents
and in the instruments and agreements included in the Trust Estate.

     (b) The Issuing Entity 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 Issuing Entity shall be deemed to be action taken by the Issuing Entity.

     (c) The Issuing Entity will not take any action or permit any action to be
taken by others that 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 Trust Estate, or that 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 Master
Servicer is expressly permitted to take in the Servicing Agreement.

     (d) The Issuing Entity may retain an administrator and may enter into
contracts with other Persons for the performance of the Issuing Entity's
obligations hereunder, and performance of such obligations by such Persons shall
be deemed to be performance of such obligations by the Issuing Entity.

     (e) The Issuing Entity will perform and observe all of its obligations and
agreements contained in this Indenture, the Operative Documents and in the
instruments and agreements included in the Trust Estate and take such other
actions, all as may be required to have the Trust Estate qualify as one or more
REMICs formed pursuant to the Indenture.

                                       22

<PAGE>

     Section 3.10. Negative Covenants. So long as any Notes are Outstanding, the
Issuing Entity shall not:

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

          (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 Estate;

          (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 Estate 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 Estate;

          (iv) waive or impair, or fail to assert rights under, the Mortgage
Loans, or impair or cause to be impaired the Issuing Entity's interest in the
Mortgage Loans, the Mortgage Loan Sale and Assignment Agreement or in any
Operative Document, if any such action would materially and adversely affect the
interests of the Noteholders or the Certificateholders; or

          (v) take any action or fail to take any action that would cause any
REMIC created hereunder to cease to qualify as a REMIC or result in an
imposition of tax on the Issuing Entity (including, but not limited to, the tax
on prohibited transactions under Section 860F of the Code).

     Section 3.11. Annual Statement as to Compliance. The Issuing Entity will
deliver to the Indenture Trustee and the Securities Administrator, by March 1 of
each year commencing with the calendar year 2007, an Officer's Certificate
stating, as to the Authorized Officer signing such Officer's Certificate, that:

          (i) a review of the activities of the Issuing Entity during the
previous calendar year and of its performance under this Indenture and the Trust
Agreement has been made under such Authorized Officer's supervision; and

          (ii) to the best of such Authorized Officer's knowledge, based on such
review, the Issuing Entity has complied with all conditions and covenants under
this Indenture and the provisions of the Trust Agreement throughout such year,
or, if there has been a default in its compliance with any such condition or
covenant, specifying each such default known to such Authorized Officer and the
nature and status thereof.

     Section 3.12. Representations and Warranties Concerning the Mortgage Loans.
The Indenture Trustee, as the holder of a security interest in the Mortgage
Loans, has the benefit of

                                       23
<PAGE>

the representations and warranties made by the Sponsor in the Mortgage Loan Sale
and Assignment Agreement concerning the Mortgage Loans and the right to enforce
the remedies against the Sponsor provided in the Mortgage Loan Sale and
Assignment Agreement to the same extent as though such representations and
warranties were made directly to the Indenture Trustee.

     Section 3.13. Assignee of Record of the Mortgage Loans. The Issuing Entity
hereby directs and authorizes the Indenture Trustee to hold record title to the
Mortgage Loans by being named as payee in the endorsements of the Mortgage Notes
and assignee in any Assignments of Mortgage required to be recorded under the
terms of the Mortgage Loan Sale and Assignment Agreement. Except as expressly
provided in the Mortgage Loan Sale and Assignment Agreement or in the applicable
Servicing Agreement with respect to any specific Mortgage Loan, the Indenture
Trustee shall not execute any endorsement or assignment or otherwise release or
transfer such record title to any of the Mortgage Loans until such time as the
remaining Trust may be released pursuant to Section 8.05(b). The Indenture
Trustee's holding of such record title shall in all respects be subject to its
fiduciary obligations to the Noteholders hereunder.

     Section 3.14. Investment Company. The Issuing Entity shall not become an
"investment company" or 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 Issuing Entity shall be in compliance with this
Section 3.14 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 3.15. Servicer as Agent and Bailee of the Indenture Trustee. Solely
for purposes of perfection under Article 9 of the UCC or other similar
applicable law, rule or regulation, the Issuing Entity, the Indenture Trustee
and the Securities Administrator hereby acknowledge that each Servicer is acting
as agent and bailee of the Indenture Trustee in holding amounts (a) on deposit
in the Collection Accounts pursuant to the respective Servicing Agreement that
are allocable to the Mortgage Loans, as well as its agent and bailee in holding
any Related Documents released to such Servicer pursuant to the respective
Servicing Agreement, and any other items constituting a part of the Trust Estate
which from time to time come into the possession of such Servicer. It is
intended that, by each Servicer's acceptance of such agency pursuant to the
related Servicing Agreement, the Indenture Trustee will have a perfected
security interest in such Related Documents, such monies and such other items
for purposes of Article 9 of the UCC.

     Section 3.16. Issuing Entity May Consolidate, etc.

     (a) The Issuing Entity shall not consolidate or merge with or into any
other Person, unless:

          (i) the Person (if other than the Issuing Entity) formed by or
surviving such consolidation or merger shall be a Person organized and existing
under the laws of the United

                                       24
<PAGE>

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 Issuing Entity 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 Issuing Entity that
such transaction shall not cause the rating of any of the Notes to be reduced,
suspended or withdrawn or to be considered by either Rating Agency to be below
investment grade;

          (iv) the Issuing Entity shall have received an Opinion of Counsel (and
shall have delivered copies thereof to the Indenture Trustee and the Securities
Administrator) to the effect that such transaction will not have any material
adverse tax consequence to the Issuing Entity, any Noteholder or any
Certificateholder;

          (v) any action that is necessary to maintain the lien and security
interest created by this Indenture, and the perfection and priority thereof,
shall have been taken; and

          (vi) the Issuing Entity 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 Section 3.16 and that all conditions precedent herein
provided for relating to such transaction have been complied with (including any
filing required by the Exchange Act).

     (b) The Issuing Entity shall not convey or transfer its properties or
assets, including those included in the Trust Estate as an entirety or
substantially as an entirety, to any Person, unless:

          (i) the Person that acquires by conveyance or transfer the properties
and assets of the Issuing Entity 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, (B)
expressly assumes, 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
Issuing Entity to be performed or observed, all as provided herein, (C)
expressly agrees 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 Noteholders, (D) unless otherwise provided in such supplemental
indenture, expressly agrees to indemnify, defend and hold harmless the Issuing
Entity, the Indenture Trustee and the Securities Administrator against and from
any loss, liability or expense arising under or related to this

                                       25
<PAGE>

Indenture and the Notes and (E) expressly agrees 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 Issuing Entity (with
a copy to the Securities Administrator and the Indenture Trustee) that such
transaction shall not cause the rating of the Notes or the Certificates to be
reduced, suspended or withdrawn;

          (iv) the Issuing Entity shall have received an Opinion of Counsel (and
shall have delivered copies thereof to the Indenture Trustee and the Securities
Administrator) to the effect that such transaction will not have any material
adverse tax consequence to the Issuing Entity or any Noteholder;

          (v) any action that is necessary to maintain the lien and security
interest created by this Indenture, and the perfection and priority thereof,
shall have been taken; and \

          (vi) the Issuing Entity 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 Issuing Entity in
     accordance with Section 3.16(a), the Person formed by or surviving such
     consolidation or merger (if other than the Issuing Entity) shall succeed
     to, and be substituted for, and may exercise every right and power of, the
     Issuing Entity under this Indenture with the same effect as if such Person
     had been named as the Issuing Entity herein.

          (b) Upon a conveyance or transfer of all the assets and properties of
     the Issuing Entity pursuant to Section 3.16(b), the Issuing Entity will be
     released from every covenant and agreement of this Indenture to be observed
     or performed on the part of the Issuing Entity 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 Issuing Entity shall not engage in any
business other than as set forth with respect thereto in the Trust Agreement and
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 Operative Documents and all activities incidental
thereto.

     Section 3.19. No Borrowing. The Issuing Entity shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes.

                                       26
<PAGE>

     Section 3.20. Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by this Indenture or the Operative Documents, the Issuing Entity
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 Issuing Entity shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     Section 3.22. Owner Trustee Not Liable for Certificates or Related
Documents. The recitals contained herein shall not be taken as the statements of
the Owner Trustee, and the Owner Trustee assumes no responsibility for the
correctness thereof. The Owner Trustee makes no representations as to the
validity or sufficiency of this Indenture, of any Operative Document or of the
Certificate (other than the signatures of the Owner Trustee on the Certificate)
or the Notes, or of any Related Documents. The Owner Trustee shall at no time
have any responsibility or liability with respect to the sufficiency of the
Owner Trust Estate or its ability to generate the payments to be distributed to
the Certificateholder under the Trust Agreement or the Noteholders under this
Indenture, including, the compliance by the Depositor or the Seller with any
warranty or representation made under any Operative Document or in any related
document or the accuracy of any such warranty or representation, or any action
of the Certificate Paying Agent, the Certificate Registrar, the Securities
Administrator or the Indenture Trustee taken in the name of the Owner Trustee
other than any such action taken at the direction of the Owner Trustee.

     Section 3.23. Restricted Payments. The Issuing Entity 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
Issuing Entity or otherwise with respect to any ownership or equity interest or
security in or of the Issuing Entity, (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 Issuing Entity may make, or cause to be made, (x)
distributions and payments to the Owner Trustee, the Indenture Trustee, the
Securities Administrator, the Master Servicer, the Servicers, the Certificate
Registrar, the Certificate Paying Agent, the Noteholders and the
Certificateholders as contemplated by, and to the extent funds are available for
such purpose under this Indenture and the Operative Documents and (y) payments
to the Master Servicer and the Servicers pursuant to the terms of the Servicing
Agreements. The Issuing Entity will not, directly or indirectly, make payments
to or distributions from the Collection Accounts, the Master Servicer Collection
Account or the Payment Account except in accordance with this Indenture and the
Operative Documents.

     Section 3.24. Notice of Events of Default. The Issuing Entity 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.

                                       27

<PAGE>

     Section 3.25. Further Instruments and Acts. Upon request of the Indenture
Trustee or the Securities Administrator, the Issuing Entity will authorize,
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 will prepare and make available on its website located
at www.etrustee.net to each Securityholder, the Servicers, the Depositor, the
Master Servicer, the Swap Counterparty and any other interested party a
statement, based on information required to be delivered by the Master Servicer
and the Swap Counterparty pursuant to the Servicing Agreements and certain
calculations by the Securities Administrator, generally setting forth among
other information:

     (1)  the amount of the related payment to holders of each class of
          securities allocable to principal, separately identifying (A) the
          aggregate amount of any principal prepayments included therein, (B)
          the aggregate amount of all scheduled payments of principal included
          therein and (C) any Extra Principal Payment Amount;

     (2)  the amount of such payment to holders of each class of securities
          allocable to interest;

     (3)  the Interest Carry Forward Amount for each class of securities;

     (4)  the Class Principal Balance of each class of securities after giving
          effect to the payment of principal on such Payment Date;

     (5)  the aggregate outstanding principal balance of each class of
          securities for the following Payment Date;

     (6)  the amount of the Servicing Fee paid to or retained by the Servicers
          and any amounts constituting reimbursement or indemnification of the
          Servicers or the Securities Administrator;

     (7)  the Pass-Through Rate for each class of certificates for such Payment
          Date;

     (8)  the Note Interest Rate for each class of notes for such Payment Date;

     (9)  the amount of Advances included in the payment on such Payment Date;

     (10) the cumulative amount of (A) Realized Losses and (B) Applied Realized
          Loss Amounts to date;

     (11) the amount of (A) Realized Losses with respect to such Payment Date
          and the aggregate amount of Realized Losses during the related Due
          Period and (B) the amount of Applied Realized Loss Amounts with
          respect to such Payment Date and the aggregate amount of Realized
          Losses since the Cut-off Date;

     (12) the number and aggregate principal amounts of Mortgage Loans (A)
          delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60
          days, (2) 61 to 90 days and (3) 91 or more days, and (B) in
          foreclosure and delinquent (1) 31 to 60 days,

                                       28

<PAGE>

          (2) 61 to 90 days and (3) 91 or more days, in each case as of the
          close of business on the last day of the calendar month preceding such
          Payment Date;

     (13) with respect to any Mortgage Loan that became an REO Property during
          the preceding calendar month, the loan number and Stated Principal
          Balance of such Mortgage Loan as of the close of business on the
          Determination Date and the date of acquisition thereof, in the
          aggregate;

     (14) whether a Stepdown Trigger Event has occurred and is in effect;

     (15) whether an Amortization Event has occurred and is in effect;

     (16) the total number and principal balance of any REO Properties as of the
          close of business on the related Determination Date, in the aggregate;

     (17) any Floating Rate Carryover paid and all Floating Rate Carryover
          remaining on each class of the Notes on such Payment Date;

     (18) the number and amount of prepayment charges and the amount of late
          payment fees received during the related Prepayment Period in the
          aggregate;

     (19) the amount of draws on the HELOCs purchased by the trust;

     (20) the amount of principal collections applied to draws on the HELOCs;

     (21) as of each Payment Date, the amount of any Net Swap Payments or Swap
          Termination Payments paid or received by the Issuing Entity pursuant
          to the Swap Agreement and the amount of any Defaulted Swap Termination
          Payments paid by the Issuing Entity;

     (22) the number of Mortgage Loans with respect to which (i) a reduction in
          the Mortgage Rate has occurred or (ii) the related borrower's
          obligation to repay interest on a monthly basis has been suspended or
          reduced pursuant to the Servicemembers Civil Relief Act or the
          California Military and Veterans Code, as amended; and the amount of
          interest not required to be paid with respect to any such Mortgage
          Loans during the related Due Period as a result of such reductions;

     (23) the amounts paid as interest in respect of the portion of each class
          of securities that represents a regular or residual interest in a
          REMIC and the amount of payments on each class of securities not
          treated as payments on a regular or residual interest in a REMIC;

     (24) the aggregate amount of all Advances recovered during the related Due
          Period:

     (25) the allocation to each class of securities of any Realized Losses
          during the related Due Period:

     (26) with respect to each class of securities, the amount of any
          Compensating Interest shortfalls on such Payment Date; and

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<PAGE>

     (27) information regarding any pool asset changes (other than in connection
          with a pool asset converting into cash in accordance with its terms),
          such as additions or removals in connection with pool asset
          substitutions and repurchases (and purchase rates, if applicable).

     The Securities Administrator shall be entitled to rely conclusively on the
accuracy and completeness of the information or data provided to it by the
Master Servicer (and to the Master Servicer by the Servicers), the Swap
Counterparty or any other party and shall have no liability for any errors in
such information.

     The Securities Administrator will also make available on its website any
reports on Form 10-D, 10-K and 8-K that have been prepared and filed by the
Securities Administrator with respect to the Issuing Entity promptly after such
material is electronically filed with, or furnished to, the Commission.
Assistance in using the Securities Administrator's website can be obtained by
calling the Securities Administrator's transaction administrator at (312)
904-6709. Parties that are unable to use the above payment 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 statements are paid in order to make such payment more
convenient and/or more accessible to the above parties and the Securities
Administrator shall provide timely and adequate notification to all above
parties regarding any such changes.

     In addition, within a reasonable period of time after the end of each
calendar year, the Securities Administrator will prepare and deliver to each
holder of record during the previous calendar year, a statement containing
information necessary to enable Securityholders to prepare their tax returns.
Such statements will not have been examined and reported upon by an independent
public accountant.

     Section 3.27. Allocation of Realized Losses.

     (a) On or prior to each Payment Date, the Securities Administrator shall
determine, based solely on information provided to it by the Master Servicer the
amount of any Realized Loss in respect of each Mortgage Loan that occurred
during the immediately preceding calendar month.

     (b) Realized Losses will be applied on any Payment Date as follows:

          (I) in reduction of the outstanding balance of Excluded Amounts; a pro
rata portion of such Realized Losses based upon the unreimbursed Excluded
Amounts and the Stated Principal Balance of the HELOCs in proportion to the
respective amounts outstanding as of the end of the calendar month preceding the
related Due Period; and

          (II) the remainder of such Realized Losses not applied pursuant to
Clause I above as follows:

     first, to the Class C Certificates, until the Class Principal Balance
thereof has been reduced to zero;

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<PAGE>

     second, to the Class B-2 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     third, to the Class B-1 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     fourth, to the Class M-9 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     fifth, to the Class M-8 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     sixth, to the Class M-7 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     seventh, to the Class M-6 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     eighth, to the Class M-5 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     ninth, to the Class M-4 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     tenth, to the Class M-3 Notes, until the Class Principal Balance thereof
has been reduced to zero;

     eleventh, to the Class M-2 Notes, until the Class Principal Balance thereof
has been reduced to zero; and

     twelfth, to the Class M-1 Notes, until the Class Principal Balance thereof
has been reduced to zero.

     The Class Principal Balance of the Class A Notes and the Class G and Class
R Certificates will not be so reduced and will continue to receive Current
Interest thereon in accordance with Section 3.06(II)(a). After the aggregate
Class Principal Balance of the Class M Notes and Class B Notes has been reduced
to zero, any payments of principal to the Class A Notes shall continue to made
in accordance with the payment priorities set forth in Section 3.06 hereof.

     Section 3.28. Determination of the LIBOR Rate.

     On each Interest Determination Date, the Securities Administrator will
determine One-Month LIBOR for the related Accrual Period on the basis of (1) the
offered rates for one-month United States dollar deposits, as such rates appear
on Telerate Page 3750, as of 11:00 a.m. (London time) on such Interest
Determination Date or (2) if such rate does not appear on Telerate Page 3750 as
of 11:00 a.m. (London time), the Securities Administrator will determine such
rate on the basis of the offered rates of the Reference Banks for one-month
United States

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<PAGE>

dollar deposits, as such rates appear on the Reuters Screen LIBO Page, as of
11:00 a.m. (London time) on such Interest Determination Date.

     If One-Month LIBOR is determined under clause (2) above, on each Interest
Determination Date, One-Month LIBOR for the related Accrual Period for the LIBOR
Securities will be established by the Securities Administrator as follows:

     (1)  If on such Interest Determination Date two or more Reference Banks
          provide such offered quotations, One-Month LIBOR for the related
          Accrual Period for the LIBOR Securities shall be the arithmetic mean
          of such offered quotations (rounded upwards if necessary to the
          nearest whole multiple of 0.03125%).

     (2)  If on such Interest Determination Date fewer than two Reference Banks
          provide such offered quotations, One-Month LIBOR for the related
          Accrual Period shall be the higher of (x) One-Month LIBOR as
          determined on the previous Interest Determination Date and (y) the
          Reserve Interest Rate.

     The establishment of One-Month LIBOR on each Interest Determination Date by
the Securities Administrator and the Securities Administrator's calculation of
the rate of interest applicable to the LIBOR Securities, for the related Accrual
Period for the LIBOR Securities shall (in the absence of manifest error) be
final and binding.

     For purposes of the Swap Agreement, One-Month LIBOR will be determined as
provided in the Swap Agreement.

     Section 3.29. No Recourse. Upon the occurrence of an Event of Default under
the Notes, this Indenture or the other Operative Documents, Noteholders shall
have recourse only to the Collateral and all proceeds thereof, as and to the
extent provided herein, and no recourse shall be had by such Noteholders against
the Issuing Entity or its other assets or properties.

     Section 3.30. Certain Representations Regarding the Trust Estate.

     The Issuing Entity hereby represents and warrants to the Indenture Trustee
and Securities Administrator that as of the Closing Date:

     (a) This Indenture creates a valid and continuing security interest (as
defined in the applicable UCC) in the Mortgage Notes in favor of the Indenture
Trustee, which security interest is prior to all other Liens (except as
expressly permitted otherwise in this Indenture), and is enforceable as such as
against creditors of and purchasers from the Issuing Entity.

     (b) The Mortgage Notes constitute "instruments" within the meaning of the
applicable UCC.

     (c) The Issuing Entity owns and has good and marketable title to the
Mortgage Notes free and clear of any Lien of any Person.

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<PAGE>

     (d) The original executed copy of each Mortgage Note (except for any
Mortgage Note with respect to which a Lost Note Affidavit has been delivered to
a Custodian) has been delivered to a Custodian.

     (e) The Issuing Entity has received a written acknowledgment from a
Custodian that such Custodian is acting solely as agent of the Indenture
Trustee.

     (f) Other than the security interest granted to the Indenture Trustee
pursuant to this Indenture, the Issuing Entity has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Mortgage Notes.
The Issuing Entity has not authorized the filing of and is not aware of any
financing statements against the Issuing Entity that include a description of
collateral covering the Mortgage Notes other than any financing statement
relating to the security interest granted to the Indenture Trustee hereunder or
any security interest that has been terminated. The Issuing Entity is not aware
of any judgment or tax lien filings against the Issuing Entity.

     (g) None of the Mortgage Notes has any marks or notations indicating that
they have been pledged, assigned or otherwise conveyed to any Person other than
the Indenture Trustee, except for (i) any endorsements that are part of a
complete chain of endorsements from the originator of the Mortgage Note to the
Indenture Trustee, and (ii) any marks or notations pertaining to Liens that have
been terminated or released.

     (h) With respect to that portion of the Collateral described in clause (f),
the Issuing Entity 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
     Issuing Entity.

          (ii) The Collateral constitutes "general intangibles" within the
     meaning of the applicable UCC.

          (iii) The Issuing Entity 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 Issuing Entity has not pledged, assigned,
     sold, granted a security interest in, or otherwise conveyed any of the
     Collateral.

     Section 3.31. The Swap Agreement.

     (a) The Securities Administrator shall deposit any amounts received by it
with respect to the Swap Agreement into the Swap Account.

     (b) On the Closing Date, the Securities Administrator shall establish and
maintain in its name, in trust for the benefit of the Noteholders and
Certificateholders, the Swap Account. The Swap Account shall be an Eligible
Account, and funds on deposit therein shall be held

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<PAGE>

separate and apart from, and shall not be commingled with, any other moneys,
including without limitation, other moneys held by the Securities Administrator
pursuant to this Agreement. The Swap Account shall not be part of any REMIC.
Amounts on deposit in the Swap Account will be distributed in accordance with
Section 3.06(II)(d).

     (c) The Securities Administrator shall notify the Swap Counterparty that
the Swap Agreement has been terminated upon the occurrence of an event of
default or termination event under the Swap Agreement of which a Responsible
Officer of the Securities Administrator has actual knowledge. In the event that
the Swap Agreement is cancelled or otherwise terminated for any reason (other
than the exhaustion of the interest rate protection provided thereby), the
Securities Administrator shall, at the written direction of the Holders of not
less than 50% of the aggregate Note Balance of the Class Principal (or if none
of the Notes are outstanding, the Certificates), and to the extent a replacement
contract is available (from a counterparty designated by the Issuing Entity in
writing and acceptable to the Holders of not less than 50% of the aggregate
Class Principal Balance of the Notes (or if none of the Notes are outstanding,
the Certificates)) execute a replacement contract (which shall not be part of
any REMIC) comparable to the Swap Agreement; provided, however, that the cost of
any such replacement contract shall be reduced to a level such that the cost of
such replacement contract shall not exceed the amount of any early termination
payment received from the Swap Counterparty.

     (d) Prior to the related Swap Termination Date and upon the redemption of
the Notes, the Swap Agreement shall be assigned by the Issuing Entity to the
Class C Certificateholders.

     Section 3.32. Notice to the Custodians. The Securities Administrator shall
notify the Custodians, in advance, of any material changes to this Indenture
that may affect the rights and obligations of such Custodian as set forth in its
respective Custodial Agreement and shall not enter into any change that would
have a materially adverse effect on the rights or obligations of either
Custodian under its respective Custodial Agreement without the consent of such
Custodian. The Securities Administrator shall notify the Custodians upon the
termination of this Indenture.

     Notices required to be given to the Custodians by the Securities
Administrator shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, to (i) in the case of Wells Fargo Bank, N.A., at
the following address: 1015 10th Avenue, SE, Minneapolis, Minnesota 55414, and
(ii) in the case of LaSalle Bank National Association, at the following address:
2571 Busse Road, Suite 200, Elk Grove Village, Illinois 60007, or as to each of
the foregoing, at such other address as shall be designated by written notice to
the other parties.

                                   ARTICLE IV

               THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

     Section 4.01. The Notes. The Book-Entry Notes shall be registered in the
name of a nominee designated by the Depository. Beneficial Owners will hold
security entitlements to the Book-Entry 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.

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<PAGE>

     The Securities Administrator may for all purposes (including the making of
payments due on the Book-Entry Notes) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Book-Entry Notes for
the purposes of exercising the rights of Holders of Book-Entry Notes hereunder.
Except as provided in the next succeeding paragraph of this Section 4.01, the
rights of Beneficial Owners with respect to the Book-Entry 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, Beneficial Owners shall not be entitled to definitive certificates
for the Book-Entry Notes as to which they are the Beneficial Owners. Requests
and directions from, and votes of, the Depository as Holder of the Book-Entry
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 Holders of the Book-Entry Notes and give notice to the Depository of
such record date. Without the written consent of the Issuing Entity and the
Securities Administrator, no Book-Entry Note may be transferred by the
Depository except to a successor Depository that agrees to hold such Book-Entry
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 written approval of the
Issuing Entity 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 Book-Entry Notes to which it has a security entitlement in the
manner prescribed in Section 4.08.

     The Notes shall, on original issue, be executed on behalf of the Issuing
Entity by the Owner Trustee, not in its individual capacity but solely as Owner
Trustee, authenticated and delivered by the Securities Administrator to or upon
the order of the Issuing Entity.

     Section 4.02. Registration of and Limitations on Transfer and Exchange of
Notes; Appointment of Note Registrar and Certificate Registrar. The Issuing
Entity shall cause to be kept at the Securities Administrator's 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.

     The transferee of a Note shall be deemed to have represented, substantially
in the form of Exhibit F, either (i) that it is not a Plan or plan subject to
Similar Law, and is not directly or indirectly acquiring the Note for, on behalf
of or with any assets of any such Plan or plan subject to Similar Law, or
(ii)(A) solely in the case of the Notes other than the Class M-9 Note and Class
B Notes, it is a Plan, but its acquisition and holding of the notes, throughout
the period that it holds such notes, will not constitute or result in a
non-exempt prohibited transaction under ERISA or the Code, or a violation of
Similar Law, or (B) solely in the case of the Class M-9 Note and Class B Notes,
it is a plan that is not subject to ERISA or Section 4975 of the Code but that
is subject to Similar Law, and its acquisition and holding of such notes or any
interest therein, throughout the period that it holds such notes, will not
constitute or result in a violation of Similar Law, and in the case of both (A)
and (B) will not subject the Depositor, the Indenture Trustee, the Issuing
Entity, the Owner Trustee, the Securities Administrator, the Master Servicer

                                       35

<PAGE>

or the Servicers to any obligation in addition to those undertaken by such
entities in the Indenture.

     Any purported transfer of a Note to or on behalf of a Plan in violation of
the representations described in the preceding paragraph shall be void and of no
effect. The Securities Administrator shall be under no liability to any person
for any registration or transfer of any Note that is in fact not permitted, for
making any payments due on such Note to the holder thereof or taking any other
action with respect to such holder so long as prior to registering a transfer
the Securities Administrator receives the transfer certificate specified above
to the extent required. The Securities Administrator shall be entitled, but not
obligated, to recover from any holder of any Note that was in fact a Plan or
plan subject to Similar Law, as applicable, or person acting on behalf of a Plan
or plan subject to Similar Law, as applicable, at the time it became a holder or
that subsequently became a Plan or person acting on behalf of a Plan, all
payments made on such Note at and after either such time. Any such payments so
recovered by the Securities Administrator shall be paid and delivered to the
last preceding holder of such Note that is not such a Plan or plan subject to
Similar Law, as applicable, or person acting on behalf of a Plan or plan subject
to Similar Law, as applicable.

     No transfer, sale, pledge or other disposition of a Class M-9 Note, Class
B-1 Note and Class B-2 Note shall be made unless such transfer, sale, pledge or
other disposition is exempt from the registration requirements of the Securities
Act of 1933, as amended (the "1933 Act"), and any applicable state securities
laws or is made in accordance with said Act and laws. Except as otherwise
provided in this Section 4.02, in the event that a transfer of a Class M-9 Note,
Class B-1 Note or Class B-2 Note is to be made, (i) unless the Depositor directs
the Securities Administrator otherwise in writing, the Securities Administrator
shall require a written Opinion of Counsel acceptable to and in form and
substance satisfactory to the Securities Administrator, the Issuing Entity and
the Depositor that such transfer may be made pursuant to an exemption,
describing the applicable exemption and the basis therefor, from said Act and
laws or is being made pursuant to said Act and laws, which Opinion of Counsel
shall not be an expense of the Securities Administrator, the Trust Estate, the
Depositor, the Issuing Entity, the Master Servicer or the Servicers, and (ii)
the Securities Administrator shall require the transferee to execute a
representation letter, substantially in the form of Exhibit B hereto, and the
Securities Administrator shall require the transferor to execute a
representation letter, substantially in the form of Exhibit C hereto, each
acceptable to and in form and substance satisfactory to the Depositor, the
Issuing Entity and the Securities Administrator certifying to the Depositor, the
Issuing Entity and the Securities Administrator the facts surrounding such
transfer, which representation letters shall not be an expense of the Indenture
Trustee, Securities Administrator, the Trust Estate, the Depositor, the Issuing
Entity or the Servicers. In lieu of the requirements set forth in the preceding
sentence, transfers of Class M-9 Notes, Class B-1 Notes and Class B-2 Notes may
be made in accordance with this Section 4.02 if the prospective transferee of
such a Certificate provides the Securities Administrator, the Depositor and the
Issuing Entity with an investment letter substantially in the form of Exhibit D
attached hereto, which investment letter shall not be an expense of the
Indenture Trustee, Securities Administrator, the Issuing Entity, the Trust
Estate, the Depositor, the Master Servicer or the Servicers, and which
investment letter states that, among other things, such transferee (i) is a
"qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (ii) is aware that the proposed transferor intends to rely

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<PAGE>

on the exemption from registration requirements under the 1933 Act provided by
Rule 144A. The Holder of a Class M-9 Note, Class B-1 Note or Class B-2 Note
desiring to effect any transfer, sale, pledge or other disposition shall, and
does hereby agree to, indemnify the Indenture Trustee, Securities Administrator,
the Administrator, the Depositor, the Master Servicer, the Servicers, the
Issuing Entity and the Note Registrar against any liability that may result if
the transfer, sale, pledge or other disposition is not so exempt or is not made
in accordance with such federal and state laws and this Indenture.

     Subject to the restrictions and limitations set forth below, upon surrender
for registration of transfer of any Note at the Corporate Trust Office, the
Issuing Entity shall execute and the Note Registrar shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Notes of the same Class in authorized initial Note Balances evidencing the
same aggregate Percentage Interests.

     Subject to the foregoing, at the option of the Noteholders, Notes may be
exchanged for other Notes of the same Class and of like tenor, in authorized
initial Note Balances evidencing the same 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 Issuing
Entity shall execute and the Note Registrar shall authenticate and deliver the
Notes that 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 such Holder's attorney duly
authorized in writing with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended. 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 imposed 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.

     All Notes surrendered for registration of transfer and exchange shall be
canceled by the Note Registrar and delivered to the Securities Administrator for
subsequent destruction.

     The Issuing Entity hereby appoints the Securities Administrator as
Certificate Registrar to keep at its Corporate Trust Office a Certificate
Register pursuant to Section 3.05 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 3.09 of the Trust Agreement. The Securities
Administrator hereby accepts such appointment.

     Notwithstanding any term herein contained to the contrary, the Securities
Administrator shall be under no obligation to determine or monitor whether any

                                       37

<PAGE>

transfer or exchange of any Note complies with the Securities Act, or any other
State securities laws that may be applicable, or ERISA, the Investment Company
Act or the Code, or with the applicable restrictions set forth herein; provided,
however, that if a certificate, letter or opinion is specifically required by
the express terms of this Section 4.02 to be delivered to the Securities
Administrator prior to registration of a transfer, the Securities Administrator
shall be under a duty to receive the same, and to examine it to determine
whether it conforms on its face to the applicable requirements of this Section
4.02. The Securities Administrator shall be entitled to rely conclusively upon,
and to assume the continuing truth and accuracy of, each representation letter,
certificate or opinion received by it from time to time pursuant to the terms
hereof, without further inquiry on its part; and has no responsibility for the
sufficiency of the terms of this Section 4.02 or the form of the representation
letters attached hereto.

     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 Issuing Entity
and the Securities Administrator harmless, then, in the absence of notice to the
Issuing Entity, the Note Registrar or the Securities Administrator that such
Note has been acquired by a bona fide purchaser, and provided that the
requirements of Section 8-405 of the UCC are met, the Issuing Entity 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 Issuing Entity 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 bona fide purchaser of the original Note in lieu of
which such replacement Note was issued presents for payment such original Note,
the Issuing Entity 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 Issuing Entity, the Indenture Trustee or the Securities Administrator in
connection therewith.

     Upon the issuance of any replacement Note under this Section 4.03, the
Issuing Entity or the Securities Administrator 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 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 Issuing Entity, 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.

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<PAGE>

     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 Issuing Entity, the Indenture Trustee,
the Securities Administrator, the Paying Agent and any agent of the Issuing
Entity or the Securities Administrator or the Paying Agent 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 none of the Issuing Entity, the Indenture Trustee,
the Securities Administrator, the Paying Agent or any agent of the Issuing
Entity, the Securities Administrator, the Indenture Trustee or the Paying Agent
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 Issuing
Entity may at any time deliver to the Securities Administrator for cancellation
any Notes previously authenticated and delivered hereunder which the Issuing
Entity 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 4.06, 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 Issuing Entity shall direct by an Issuing Entity Request that
they be destroyed or returned to it; provided, however, that such Issuing Entity
Request is timely and the Notes have not been previously disposed of by the
Securities Administrator.

     Section 4.06. Book-Entry Notes. The Notes, upon original issuance, will be
issued in the form of typewritten Notes constituting the Book-Entry Notes, to be
delivered to The Depository Trust Company, the initial Depository, by, or on
behalf of, the Issuing Entity. 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 security entitlement to such Book-Entry Note, except as
provided in Section 4.08. 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 Securities
     Administrator and the Indenture Trustee 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;

          (iii) to the extent that the provisions of this Section 4.07 conflict
     with any other provisions of this Indenture, the provisions of this Section
     4.06 shall control;

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          (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 Beneficial Owners 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 the Securities Administrator and Indenture Trustee shall
     have no obligation to monitor or determine compliance with respect to any
     transfer restrictions applicable to Book-Entry Notes; 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 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 security entitlements to the Book-Entry Notes and has
     delivered such instructions to the Securities Administrator.

     Section 4.07. Notices to Depository. Whenever a notice or other
communication to the Noteholders 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 Noteholders to the Depository,
and shall have no obligation to the Beneficial Owners.

     Section 4.08. Definitive Notes. If (i) the Issuing Entity determines that
the Depository is no longer willing or able to properly discharge its
responsibilities with respect to the Notes and the Issuing Entity is unable to
locate a qualified successor, (ii) the Issuing Entity elects to terminate the
book-entry system through the Depository or (iii) after the occurrence of an
Event of Default, Holders of the Notes representing security entitlements to at
least a majority of the Note Balances of the Notes advise the Depository (with a
copy to the Securities Administrator) 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. Upon surrender to the
Securities Administrator of the typewritten Notes constituting the Book-Entry
Notes by the Depository, accompanied by registration instructions, the Issuing
Entity shall execute and the Securities Administrator shall authenticate the
Definitive Notes in accordance with the instructions of the Depository. None of
the Issuing Entity, the Note Registrar 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 Issuing Entity has entered into this
Indenture, and the Notes will be issued, with the intention that, for federal
purposes, the Notes will qualify as regular interests in a REMIC as defined in
the Code, coupled with the rights and obligations described in Section 10.01
herein. The Issuing Entity, the Indenture Trustee and the Securities
Administrator by entering into this Indenture, and each Noteholder, by its
acceptance of its Note

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<PAGE>

(and each Beneficial Owner by its acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes as regular interests in a REMIC as
defined in the Code, coupled with the rights and obligations described in
Section 10.01 herein.

     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 3.04, 3.05, 3.07, 3.10,
3.14, 3.16, 3.17 and the last paragraph of Section 4.02, (v) the rights,
obligations and immunities of the Securities Administrator hereunder (including
the rights of the Securities Administrator under Section 6.07 and the
obligations of 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 Securities Administrator payable to all or any of them, and
the Indenture Trustee, on demand of and at the expense of the Issuing Entity,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

          (A) either:

               (1) each Class of 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 and (ii)
          Notes for whose payment money has theretofore been deposited in trust
          or segregated and held in trust by the Issuing Entity and thereafter
          repaid to the Issuing Entity or discharged from such trust, as
          provided in Section 3.04) have been delivered to the Securities
          Administrator for cancellation; or

               (2) each Class of Notes not theretofore delivered to the
          Securities Administrator for cancellation:

               (a) have become due and payable,

               (b) will become due and payable within one year, or

               (c) have been declared immediately due and payable pursuant to
          Section 5.02.

          and the Issuing Entity, 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 Scheduled Payment
          Date;

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<PAGE>

               (B) the Issuing Entity has paid or caused to be paid all other
          sums payable hereunder by the Issuing Entity (including amounts
          payable to the Indenture Trustee); and

               (C) the Issuing Entity 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 11.01,
          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 not have any material
          adverse tax consequences to the Issuing Entity, any Noteholders or any
          Certificateholders.

     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 of the
Issuing Entity, or Certificate Paying Agent as designee of the Issuing Entity,
as the Securities Administrator may determine, to the Securityholders, of all
sums due and to become due thereon for principal and interest; but such monies
need not be segregated from other funds except to the extent required herein or
required by law.

     Section 4.12. 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 Issuing Entity, be paid to the Securities Administrator to be held and
applied according to Section 3.03 and thereupon such Person shall be released
from all further liability with respect to such monies.

     Section 4.13. Temporary Notes. Pending the preparation of any Definitive
Notes, the Issuing Entity 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 Issuing Entity 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 Corporate Trust Office of the
Securities Administrator, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Notes, the Issuing Entity 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.

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<PAGE>

                                   ARTICLE V

                              DEFAULT AND REMEDIES

     Section 5.01. Events of Default. The Issuing Entity shall deliver to the
Indenture Trustee and the Securities Administrator, within five days after
learning of the occurrence any event which with the giving of notice and the
lapse of time would become an Event of Default under clause (iii) of the
definition of "Event of Default" written notice in the form of an Officer's
Certificate of its status and what action the Issuing Entity is taking or
proposes to take with respect thereto.

     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 may, and upon the request of the Holders of Notes representing
not less than a majority of the Voting Rights of all Notes, the Indenture
Trustee shall, declare the Notes to be immediately due and payable, by a notice
in writing to the Issuing Entity (and to the Indenture Trustee and the
Securities Administrator if given by Noteholders), and upon any such declaration
the unpaid principal amount of each Class of Notes, 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 Indenture Trustee as hereinafter in
this Article V provided, the Holders of Notes representing a majority of the
Voting Rights of all Notes, by written notice to the Issuing Entity and the
Indenture Trustee and the Securities Administrator may in writing waive the
related Event of Default and rescind and annul such declaration and its
consequences if:

          (i) the Issuing Entity 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 by the Securities Administrator hereunder and
          the reasonable compensation, expenses, indemnities and disbursements
          of the Indenture Trustee and the Securities Administrator and its
          agents and counsel; and

               (C) any unpaid Net Swap Payments and any Swap Termination Payment
          owed to the Swap Counterparty; 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.

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     Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

     (a) The Issuing Entity covenants that if a default occurs in the payment of
(i) any interest on any Note when the same becomes due and payable, and such
default continues for a period of three days, or (ii) the principal of or any
installment of the principal of any Note when the same becomes due and payable,
the Issuing Entity shall, upon demand of the Securities Administrator, pay to
it, for the benefit of the Noteholders, the whole amount then due and payable on
the Notes for principal and interest, with interest 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, indemnities and disbursements of the Indenture Trustee and the
Securities Administrator and their respective agents and counsel.

     (b) In case the Issuing Entity 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 10.17 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 Issuing Entity or other obligor upon the Notes and collect in the manner
provided by law out of the property of the Issuing Entity or other obligor upon
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 10.17 hereof may, as more particularly
provided in Section 5.04, in its discretion, proceed to protect and enforce its
rights and the rights of the Noteholders, by such appropriate Proceedings as the
Indenture Trustee shall deem most effective 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 Issuing Entity or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Trust Estate, 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 Issuing Entity or its property or such
other obligor or Person, or in case of any other comparable judicial Proceedings
relative to the Issuing Entity or other obligor upon the Notes, or to the
creditors or property of the Issuing Entity or such other obligor, the Indenture
Trustee, 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 Securities Administrator or 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

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<PAGE>

     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, by the Indenture Trustee and Securities Administrator
     and each predecessor Indenture Trustee and Securities Administrator, except
     as a result of negligence, willful misconduct 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 Noteholders 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 Noteholders allowed in any judicial proceedings relative to
     the Issuing Entity, 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 and the Securities Administrator 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,
by the Indenture Trustee and the Securities Administrator and each predecessor
Indenture Trustee and Securities Administrator except as a result of negligence,
willful misconduct or bad faith.

     (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, indemnities and compensation of the Indenture Trustee and the
Securities Administrator, each predecessor Indenture Trustee and the Securities
Administrator and their respective agents and attorneys, shall be for the
ratable benefit of the Noteholders.

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<PAGE>

     (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 Noteholders, 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, the
Indenture Trustee subject to the provisions of Section 11.22 hereof may do one
or more of the following (subject to Section 5.05):

          (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 Issuing Entity 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 Estate;

          (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 Noteholders;

          (iv) refrain from selling the Trust Estate (unless otherwise directed
     by a majority of Noteholders) and continue to apply all amounts received
     thereon to payments on the Notes in accordance with Section 3.06; and

          (v) sell the Trust Estate 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 must sell or otherwise liquidate
the Trust Estate following an Event of Default, if (i) the Holders of the Notes
representing not less than a majority of the Voting Rights of all of the Notes
direct the Indenture Trustee to sell or otherwise liquidate the Trust Estate or
(ii) the Indenture Trustee determines that the Mortgage Loans will not continue
to provide sufficient funds for (A) the payment of expenses under this
Indenture, (B) the payment of principal of and interest on the Notes as they
would have become due if the Notes had not been declared due and payable and (C)
any unpaid Net Swap Payments and any Swap Termination Payment owed to the Swap
Counterparty. In determining such sufficiency or insufficiency with respect to
clause (A), (B) and (C), the Indenture Trustee may, but need not, obtain, at the
expense of the Trust Estate, and rely upon an opinion 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
Estate for such purpose. Notwithstanding the foregoing, so long as a Servicing
Default has not occurred, any Sale of the Trust Estate shall be made subject to
the continued servicing of the Mortgage Loans by the related Servicers as
provided in the Servicing Agreement.

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<PAGE>

     (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 Securities Administrator shall pay out the money or property
in the following order relating to the Mortgage Loans:

          (i) to the Indenture Trustee, the Administrator 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; and

          (ii) to the Swap Counterparty and the Noteholders in the order of
     priority set forth in Section 3.06.

     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 Trust Estate. 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 shall, unless otherwise directed to by a
majority of the Voting Rights of the Notes, elect to take and maintain
possession of the Trust Estate. 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 Issuing
Entity.

     Section 5.06. Limitation of Suits. No Noteholder 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 10.17 hereof:

          (i) such Noteholder 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 Voting Rights of the
     Notes have made 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 Noteholder or Noteholders have offered to the Indenture
     Trustee reasonable indemnity 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, 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.

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<PAGE>

It is understood and intended that no one or more Noteholders 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
Noteholder or to obtain or to seek to obtain priority or preference over any
other Noteholder or to enforce any right under this Indenture, except in the
manner herein provided.

     In the event the Indenture Trustee or the Securities Administrator shall
receive conflicting or inconsistent requests and indemnity from two or more
groups of Holders of Notes, each representing less than a majority of the Voting
Rights of the Notes, the Indenture Trustee or the Securities Administrator in
their sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

     Section 5.07. Unconditional Rights of Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture each
Noteholders shall have the right, which is absolute and unconditional, to
receive payment of the principal of, and interest, 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 Issuing Entity, 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 the Securities Administrator or any Noteholder 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
Voting Rights of Notes shall have the right to direct the time, method and place
of conducting any Proceeding for

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<PAGE>

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) subject to the express terms of Section 5.04, any direction to
     the Indenture Trustee to sell or liquidate the Trust Estate shall be by
     Holders of Notes representing not less than a majority of the Voting Rights
     of Notes;

          (iii) if the conditions set forth in Section 5.05 have been satisfied
     and the Indenture Trustee is required to retain the Trust Estate pursuant
     to such Section, then any direction to the Indenture Trustee by Holders of
     Notes representing less than a majority of the Voting Rights of Notes to
     sell or liquidate the Trust Estate shall be of no force and effect; and

          (iv) the Indenture Trustee may take any other action deemed proper by
     the Indenture Trustee that is not inconsistent with such direction.

Notwithstanding the rights of Noteholders set forth in this Section, subject to
Section 6.01, the Indenture Trustee need not take any action that it determines
might involve it in liability or might materially adversely affect the rights of
any Noteholders not consenting to such action.

     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, the
Holders of Notes of not less than a majority of the Voting Rights 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 each Noteholder. In the case of any
such waiver, the Issuing Entity, the Indenture Trustee, the Securities
Administrator and the Noteholders 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 Noteholder by such Noteholder'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

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10% of the Voting Rights 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 Issuing Entity
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 Issuing Entity (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 Estate.

     (a) The power to effect any sale or other disposition (a "Sale") of any
portion of the Trust Estate pursuant to Section 5.04 only is expressly subject
to the provisions of Section 5.05, this Section 5.15 and Section 11.22. The
power to effect any such Sale shall not be exhausted by any one or more Sales as
to any portion of the Trust Estate remaining unsold, but shall continue
unimpaired until the entire Trust Estate 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
Estate, or any portion thereof, unless:

               (1) all Noteholders consent to or direct the Indenture Trustee to
          make, such Sale, or

               (2) the proceeds of such Sale would be not less than the entire
          amount which would be payable to the Noteholders under the Notes and
          the Certificateholder under the Certificate, in full payment thereof
          in accordance with Section 5.02, on the Payment Date next succeeding
          the date of such Sale.

The purchase by the Indenture Trustee of all or any portion of the Trust Estate
at a private Sale shall not be deemed a Sale or other disposition thereof for
purposes of this Section 5.15(b).

     (c) Unless the Securityholders have otherwise consented or directed the
Indenture Trustee, the Indenture Trustee will not sell at any public Sale all or
any portion of the Trust Estate at which a minimum bid equal to or greater than
the amount described in paragraph (2) of subsection (b) of this Section 5.15 has
not been established by the Indenture Trustee and no Person bids an amount equal
to or greater than such amount.

     (d) In connection with a Sale of all or any portion of the Trust Estate:

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<PAGE>

               (1) any Noteholder 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;

               (2) 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
          Estate 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 distributable
          to the Securityholders as a result of such Sale in accordance with
          Section 5.04(b) 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;

               (3) the Indenture Trustee shall execute and deliver an
          appropriate instrument of conveyance transferring its interest in any
          portion of the Trust Estate in connection with a Sale thereof;

               (4) the Indenture Trustee is hereby irrevocably appointed the
          agent and attorney-in-fact of the Issuing Entity to transfer and
          convey its interest in any portion of the Trust Estate in connection
          with a Sale thereof, and to take all action necessary to effect such
          Sale; and

               (5) 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 Issuing Entity or by the levy
of any execution under such judgment upon any portion of the Trust Estate or
upon any of the assets of the Issuing Entity. Any money or property collected by
the Indenture Trustee shall be applied in accordance with Section 5.04(b).

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                                   ARTICLE VI

             THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     Section 6.01. Duties of the 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 or any other Operative Document 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 the Indenture Trustee
     pursuant to Section 5.11.

     (d) Neither the Indenture Trustee nor the Securities Administrator shall be
liable for interest on money received by it, if any, except as it may agree in
writing with the Issuing Entity.

     (e) Money held in trust, if any, by the Indenture Trustee or the Securities
Administrator need not be segregated from other funds except to the extent
required by law or the terms of this Indenture or the Trust Agreement.

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<PAGE>

     (f) No provision of this Indenture or any other Operative Document 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
adequate indemnity 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,
with respect to the Indenture Trustee, to the provisions of the TIA.

     (h) The Indenture Trustee shall act in accordance with Section 7.01 of the
Servicing Agreement and shall act as successor to the Master Servicer or appoint
a successor Master Servicer in accordance with Section 7.02 of the Servicing
Agreement.

     (i) Neither the Securities Administrator nor the Indenture Trustee shall be
responsible for the acts or omissions of the other, it being understood that
this Indenture shall not be construed to render them partners, joint venturers
or agents of one another.

     Section 6.02. Rights of the Indenture Trustee and the 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 resolution, certificate, opinion, statement, instrument,
report, notice, request, consent, order, appraisal, bond or other 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 shall 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 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 this Indenture 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 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

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<PAGE>

responsible for any willful misconduct or negligence on the part of any agent,
attorney, custodian or nominee so appointed.

     (f) Neither the Indenture Trustee nor the Securities Administrator shall be
required to take notice or be deemed to have notice or knowledge of any default
or Event of Default unless a Responsible Officer of the Indenture Trustee or the
Securities Administrator, as applicable, shall have received written notice or
obtained actual knowledge thereof. In the absence of receipt of such notice or
actual knowledge, the Indenture Trustee and Securities Administrator, as
applicable, may conclusively assume that there is no default or Event of
Default.

     (g) Neither the Indenture Trustee nor the Securities Administrator (except
as expressly provided herein or in any other Operative Document) shall have any
duty (A) to see to any recording, filing, or depositing of this Indenture or any
agreement referred to herein or any financing statement or continuation
statement evidencing a security interest, or to see to the maintenance of any
such recording or filing or depositing or to any rerecording, refiling or
redepositing of any thereof, (B) to see to any insurance, (C) to see to the
payment or discharge of any tax, assessment, or other governmental charge or any
lien or encumbrance of any kind owing with respect to, assessed or levied
against, any part of the Trust Estate or (D) to confirm or verify the contents
of any reports or certificates of the Servicer delivered to the Indenture
Trustee pursuant to this Indenture believed by the Indenture Trustee to be
genuine and to have been signed or presented by the proper party or parties.

     (h) The right of the Indenture Trustee or Securities Administrator to
perform any discretionary act enumerated in this Indenture shall not be
construed as a duty, and the Indenture Trustee and Securities Administrator
shall not be answerable for other than its negligence or willful misconduct in
the performance of such act.

     (i) Neither the Indenture Trustee nor the Securities Administrator shall be
required to give any bond or surety in respect of the execution of the Trust
Estate created hereby or the powers granted hereunder.

     (j) Anything in this Indenture to the contrary notwithstanding, in no event
shall the Indenture Trustee or the Securities Administrator be liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Indenture Trustee or
the Securities Administrator has been advised of the likelihood of such loss or
damage and regardless of the form of action.

     Section 6.03. Individual Rights of Indenture Trustee and the 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 Issuing Entity 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, the Indenture Trustee must comply with Sections 6.11 and
6.12.

     Section 6.04. Indenture Trustee's Disclaimer and Securities Administrator's
Disclaimer. Neither the Indenture Trustee nor the Securities Administrator shall
be (i) responsible for and

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<PAGE>

makes no representation as to the validity, adequacy or sufficiency of the
Mortgage Loans, the Swap Agreement, this Indenture or the security interest
created herein, the Trust Agreement, any other Operative Document or the Notes,
(ii) accountable for the Issuing Entity's use of the proceeds from the Notes or
(iii) responsible for any statement of the Issuing Entity or any other Person in
the Indenture, the Trust Agreement 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
Securities Administrator shall mail to each Noteholder notice of an Event of
Default of which a Responsible Officer of the Indenture Trustee or the
Securities Administrator has actual knowledge within the later of 90 days after
it occurs and 90 days after such Responsible Officer's knowledge thereof. Except
in the case of an Event of Default in payment of principal of or interest on any
Note, the Securities Administrator may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Noteholders.

     Section 6.06. Reports by Securities Administrator to Holders. The
Securities Administrator shall deliver to each Noteholder such information with
respect to the Notes as may be required to enable such holder to prepare its
federal and state income tax returns including without limitation Form 1099, to
the extent such form is required by law. In addition, upon the Issuing Entity's
written request, the Securities Administrator shall promptly furnish information
reasonably requested by the Issuing Entity with respect to the Notes that is
reasonably available to the Securities Administrator to enable the Issuing
Entity to perform its federal and state income tax reporting obligations.

     Section 6.07. Compensation and Indemnity. The Issuing Entity shall
reimburse the Indenture Trustee, the Securities Administrator, the 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 Administrator's, the
Securities Administrator's or the Owner Trustee's agents, counsel, accountants
and experts. The Issuing Entity shall indemnify each of the Indenture Trustee
and the Securities Administrator and hold each of them harmless against any and
all loss, liability or expense (including attorneys' fees) incurred by it in
connection with the administration of this trust and the performance of its
duties hereunder. The Indenture Trustee or the Securities Administrator, as
applicable, shall notify the Issuing Entity promptly of any claim for which it
may seek indemnity. Failure by the Indenture Trustee, the Administrator or the
Securities Administrator to so notify the Issuing Entity shall not relieve the
Issuing Entity of its obligations hereunder, unless the Issuing Entity is
materially prejudiced thereby. The Issuing Entity shall defend any such claim,
and the Indenture Trustee or the Securities Administrator, 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. The Issuing
Entity is not obligated to reimburse any expense or indemnify against any loss,
liability or expense incurred by the Indenture Trustee or the Securities
Administrator through the Indenture Trustee's or the Securities Administrator's
own willful misconduct, negligence or bad faith.

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<PAGE>

     The Issuing Entity's payment obligations to the Indenture Trustee, the
Securities Administrator, the Administrator 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 Administrator or the
Securities Administrator. When the Indenture Trustee, the Securities
Administrator or the Owner Trustee incurs expenses after the occurrence of an
Event of Default with respect to the Issuing Entity, 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. No termination of the Indenture Trustee or the Securities Administrator
without cause will be effective unless the costs, expenses, indemnities and
disbursements of such Indenture Trustee or Securities Administrator, as
applicable, have been reimbursed to the Indenture Trustee or Securities
Administrator, as applicable, in connection with such removal. The Indenture
Trustee or the Securities Administrator may resign at any time by so notifying
the Issuing Entity. The 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 Issuing
Entity 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;

          (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 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 Issuing Entity shall promptly appoint a successor Indenture
Trustee or successor Securities Administrator. In addition, the Indenture
Trustee or the Securities Administrator will resign to avoid being directly or
indirectly controlled by the Issuing Entity.

     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 Issuing Entity. Thereupon,
the resignation or removal of the retiring

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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 60 days after the retiring Indenture Trustee or Securities
Administrator resigns or is removed, the retiring Indenture Trustee or
Securities Administrator, as applicable, the Issuing Entity 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.

     If the Indenture Trustee fails to comply with Section 6.11, any Noteholder
may petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

     Notwithstanding the replacement of the Indenture Trustee or Securities
Administrator pursuant to this Section, the Issuing Entity'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 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. The
Indenture Trustee or the Securities Administrator, as applicable, shall provide
the Rating Agencies written notice of any such transaction after the Closing
Date.

     In case 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 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 in case 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 anywhere in the Notes or in
this Indenture.

     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 Estate 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, or

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<PAGE>

separate trustee or separate trustees, of all or any part of the Trust Estate,
and to vest in such Person or Persons, in such capacity and for the benefit of
the Noteholders, such title to the Trust Estate, or any part thereof, 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 and no
notice to Noteholders of the appointment of any co-trustee or separate trustee
shall be required under Section 6.08 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 Trust Estate 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 Agreement 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 Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

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     Section 6.11. Eligibility; Disqualification. The Indenture Trustee shall at
all times satisfy the requirements of TIA Section 310(a). Each of the Indenture
Trustee and the Securities Administrator 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 A
or better by S&P, A2 or better by Moody's and A or better by Fitch. The
Indenture Trustee shall comply with TIA Section 310(b), including the optional
provision permitted by the second sentence of TIA Section 310(b)(9); provided,
however, that there shall be excluded from the operation of TIA Section
310(b)(1) any indenture or indentures under which other securities of the
Issuing Entity are outstanding if the requirements for such exclusion set forth
in TIA Section 310(b)(1) are met.

     Section 6.12. Preferential Collection of Claims Against Issuing Entity. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated
therein.

     Section 6.13. Representations and Warranties. Each of the Indenture Trustee
and the Securities Administrator hereby represents that:

     (a) It is a national banking association duly organized, validly existing
and in good standing under the laws of the United States.

     (b) 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
articles of association or bylaws.

     (c) 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.

     (d) This Indenture, assuming due authorization, execution and delivery by
the other parties thereto, 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.

     (e) 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:

     (a) In the case of the Indenture Trustee, to accept the grant of a security
interest in the Trust Estate and hold the assets of the Trust in trust for the
Noteholders;

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     (b) In the case of the Securities Administrator, to authenticate and
deliver the Notes substantially in the form prescribed by Exhibits A-1, A-2 and
A-3 in accordance with the terms of this Indenture; and

     (c) to take all other actions as shall be required to be taken by the terms
of this Indenture.

     Section 6.15. Compliance with Withholding-Requirements. Notwithstanding any
other provision of this Indenture, the Securities Administrator shall comply
with all federal withholding requirements respecting payments to Noteholders of
interest that the Securities Administrator reasonably believes are applicable
under the Code. The consent of Noteholders shall not be required for such
withholding.

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

     Section 7.01. Issuing Entity to Furnish Securities Administrator Names and
Addresses of Noteholders. The Issuing Entity 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 Noteholders 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 Issuing Entity 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.

     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 Noteholders contained in
the most recent list furnished to the Securities Administrator as provided in
Section 7.01 and the names and addresses of Noteholders 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 may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

     (c) The Issuing Entity, the Indenture Trustee, the Securities Administrator
and the Note Registrar shall have the protection of TIA Section 312(c).

     Section 7.03. Reports by Issuing Entity.

     (a) The Issuing Entity shall:

          (i) file with the Securities Administrator, within 15 days after the
     Issuing Entity is required to file the same with the Commission, copies of
     the annual reports and

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     the information, documents and other reports (or copies of such portions of
     any of the foregoing as the Commission may from time to time by rules and
     regulations prescribe) that the Issuing Entity may be required to file with
     the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

          (ii) file with the Securities Administrator, and the Commission 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 Issuing Entity with the conditions and covenants of
     this Indenture as may be required from time to time by such rules and
     regulations; and

          (iii) supply to the Securities Administrator (and the Securities
     Administrator shall transmit by mail to all Noteholders described in TIA
     Section 313(c) such summaries of any information, documents and reports
     required to be filed by the Issuing Entity 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.

     (b) Unless the Issuing Entity otherwise determines, the fiscal year of the
Issuing Entity shall end on December 31 of each year.

     Section 7.04. Reports by Securities Administrator. If required by TIA
Section 313(a), within 60 days after each January 1 beginning with January 1,
2007, the Indenture Trustee shall mail to each Noteholder as required by TIA
Section 313(c) a brief report dated as of such date that complies with TIA
Section 313(a).

     The Issuing Entity shall notify the Securities Administrator and the
Indenture Trustee in writing if and when the Notes are listed on any stock
exchange. A copy of each report at the time of its mailing to Noteholders shall
be filed by the Securities Administrator with the Commission and each stock
exchange, if any, on which the Notes are listed (to the extent the Securities
Administrator has been notified by the Issuing Entity of such listing).

     Section 7.05. Payments to the Owner Trustee. The Owner Trustee shall have a
lien on the Owner Trust Estate for amounts owing hereunder. Any amounts paid to
the Owner Trustee pursuant to this Article VII shall be deemed not to be a part
of the Owner Trust Estate immediately after such payment.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     Section 8.01. Collection of Money. Except as otherwise expressly provided
herein, the Securities Administrator 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 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

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that is part of the Trust Estate, 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 Securities Administrator shall
establish and maintain, in the name of the Securities Administrator, for the
benefit of the Noteholders and the Certificate Paying Agent, on behalf of the
Certificateholder, the Payment Account as provided in the Wilshire Servicing
Agreement.

     (b) All monies deposited from time to time in the Payment Account pursuant
to the Wilshire Servicing Agreement and all deposits therein pursuant to this
Indenture are for the benefit of the Noteholders and the Certificate Paying
Agent, on behalf of the Certificateholders.

     (c) On each Payment Date, the Securities Administrator shall distribute all
amounts on deposit in the Payment Account, other than any income earned on such
account) to Noteholders in respect of the Notes and in its capacity as
Certificate Paying Agent to the Certificateholders in the order of priority set
forth in Section 3.06 (except as otherwise provided in Section 5.04(b)) and
otherwise in accordance with provisions of such Sections.

     Section 8.03. Officer's Certificate. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuing Entity to take any action
pursuant to Section 8.05(a), accompanied by copies of any instruments to be
executed, and the Indenture Trustee shall also require, as a condition to such
action, an Opinion of Counsel, 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 Issuing Entity and the
Indenture Trustee and the Securities Administrator created hereby shall
terminate upon the payment to the 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 distributed 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's, living on the date hereof.

     Section 8.05. Release of Trust Estate.

     (a) Subject to the payment of its fees and expenses and the fees and the
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. No party relying upon an
instrument executed by the Indenture Trustee as provided in Article VIII
hereunder shall be bound to

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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 the Indenture Trustee and the Securities
Administrator pursuant to this Indenture have been paid, release any remaining
portion of the Trust Estate that secured the Notes from the lien of this
Indenture.

     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.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

     Section 9.01. Supplemental Indentures Without Consent of Noteholders.

     (a) Without the consent of any Noteholders but with prior notice to the
Rating Agencies, the Issuing Entity, the Indenture Trustee and the Securities
Administrator, when authorized by an Issuing Entity 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 Trust Indenture Act 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 Issuing Entity, and the
     assumption by any such successor of the covenants of the Issuing Entity
     herein and in the Notes contained;

          (iii) to add to the covenants of the Issuing Entity, for the benefit
     of the Noteholders, or to surrender any right or power herein conferred
     upon the Issuing Entity;

          (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 shall not materially and adversely affect the interests of
     the Noteholders;

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          (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; 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 that entering into such indenture supplement is
permitted hereunder and will not (A) have any material adverse tax consequences
to the Noteholders, including endangering the status of any REMIC created
hereunder as a REMIC or resulting in the imposition of a tax upon any such REMIC
and (B) adversely affect in any material respect the interests of the
Noteholders or the Certificateholders.

     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 Issuing Entity and the Indenture Trustee and the Securities
Administrator, when authorized by an Issuing Entity Request, may, also without
the consent of any of the Noteholders but with 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 Noteholders under this Indenture; provided, however, that such
action shall, as evidence by an Opinion of Counsel, be permitted hereunder and
shall not, as evidenced by such Opinion of Counsel, (i) adversely affect in any
material respect the interests of any Noteholder or (ii) endanger the status of
any REMIC created hereunder as a REMIC or result in the imposition of a tax upon
any such REMIC. Further, the Issuing Entity, the Securities Administrator and
the Indenture Trustee may, without the consent of any of the Noteholders, enter
into an indenture or indentures supplemental hereto for the purpose, as
evidenced by an Opinion of Counsel, of preserving the status of any REMIC
created hereunder as a REMIC or avoiding the imposition of any tax upon any such
REMIC.

     (c) The Issuing Entity, the Securities Administrator and the Indenture
Trustee shall, as directed by the Holders of not less than 100% of the
Certificate Percentage Interests, enter into an indenture or indentures
supplemental hereto for the purpose of providing for the issuance of one or more
additional Classes of Notes entitled to payments derived solely from all or a
portion of the payments to which the Certificates issued on the Closing Date
pursuant to the Trust Agreement are entitled; provided, however, that such
action shall as evidenced by an Opinion of Counsel, be permitted hereunder and
shall not as evidenced by an Opinion of Counsel, (i) adversely affect in any
material respect the interests of any existing Noteholder or (ii) endanger the
status of any REMIC created hereunder as a REMIC or result in the imposition of
a tax upon any such REMIC. Each such Class of Notes shall be a non-recourse
obligation of the Issuing

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Entity and shall be entitled to interest and principal in such amounts, and to
such security for the repayment thereof, as shall be specified in such amendment
or amendments. Promptly after the execution by the Issuing Entity, the
Securities Administrator and the Indenture Trustee of any amendments pursuant to
this Section or the creation of a new Indenture and the issuance of the related
Class or Classes of Notes, the Issuing Entity shall require the Securities
Administrator to give notice to the Noteholders and the Rating Agencies setting
forth in general terms the substance of the provisions of such amendment. Any
failure of the Securities Administrator to provide such notice as is required
under this paragraph, or any defect therein, shall not, however, in any way
impair or affect the validity of such amendment or any Class of Notes issued
pursuant thereto.

     Section 9.02. Supplemental Indentures With Consent of Noteholders. The
Issuing Entity, the Indenture Trustee and the Securities Administrator, when
authorized by an Issuing Entity 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 Voting Rights of the Notes affected thereby, by Act of Noteholders
delivered to the Issuing Entity and 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 each Noteholder of
each Note affected thereby:

     (a) 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 Estate
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;

     (b) 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;

     (c) modify or alter the provisions of the exception in the definition of
the term "Outstanding"

     (d) reduce the percentage of the Note Balances of the Notes required to
direct the Indenture Trustee to direct the Issuing Entity to sell or liquidate
the Trust Estate pursuant to Section 5.04;

     (e) 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 Operative Documents cannot be modified or waived without
the consent of each Noteholder affected thereby;

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     (f) 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

     (g) 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 Estate or,
except as otherwise permitted or contemplated herein, terminate the lien of this
Indenture on any property at any time subject hereto or deprive any Noteholder
of the security provided by the lien of this Indenture;

     provided, further, that such supplemental indenture shall not, as evidenced
by an Opinion of Counsel, endanger the status of any REMIC created hereunder as
a REMIC or result in the imposition of a tax upon any such REMIC.

     The Securities Administrator may rely on an Opinion of Counsel (which shall
not be at the expense of the Securities Administrator) as to whether any Notes
will be affected by any 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 Issuing Entity, the Indenture Trustee
and the Securities Administrator of any supplemental indenture pursuant to this
Section 9.02, the Securities Administrator shall mail to Noteholders 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, and subject to Sections 6.01 and
6.02, 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 Issuing Entity and the
Noteholders shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms
and

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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 Issuing Entity, 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 Issuing Entity, to any such supplemental indenture may be prepared and
executed by the Issuing Entity and authenticated and delivered by the Securities
Administrator in exchange for Outstanding Notes

     Section 9.07. Supplemental Indentures Affecting the Master Servicer, the
Servicers and the Swap Counterparty. Notwithstanding any other provision of this
Article IX, no supplemental indenture shall be executed that would materially
and adversely affect the interests of the Master Servicer and the Servicers
described under Sections 3.23 or 11.18 hereunder or in Appendix A without the
consent of the Master Servicer and the Servicers. Notwithstanding any other
provision of this Article IX, no supplemental indenture shall be executed that
would materially and adversely affect the interests of the Swap Counterparty
described hereunder or in the Swap Agreement without first obtaining the consent
of the Swap Counterparty.

                                    ARTICLE X

                                   TAX MATTERS

     Section 10.01. REMIC Provisions.

     (a) The REMIC Administrator shall make an appropriate election to treat
each of the Upper Tier REMIC, the Lower Tier REMIC and the SWAP REMIC as a REMIC
in accordance with Section 2.06 of the Trust Agreement. Such election will be
made on Form 1066 or other appropriate federal tax or information return
(including Form 8811) or any appropriate state return for the taxable year
ending on the last day of the calendar year in which the Securities are issued.

     The Preliminary Statement sets forth the designations and "latest possible
maturity date" for federal income tax purposes of all interests created hereby.
The REMIC Administrator and the Indenture Trustee shall not permit the creation
of any "interests" (within the meaning of Section 860G of the Code) in any REMIC
created hereunder other than the "regular interests" and "residual interests" so
designated. Each REMIC's fiscal year shall be the calendar year. For purposes of
such designations, the interest rate of any regular interest that is computed by
taking

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into account the weighted average of the Net Mortgage Rates of the Mortgage
Loans shall be reduced to take into account any expense paid by the Issuing
Entity to the extent that (i) such expense was not taken into account in
computing the Net Mortgage Rate of any Mortgage Loan, (ii) such expense does not
constitute an "unanticipated expense" of a REMIC within the meaning of Treasury
Regulation Section 1.860G-1(b)(3)(ii) and (iii) the amount of such expense was
not taken into account in computing the interest rate of a more junior class of
regular interests.

     The SWAP REMIC shall consist of all of the assets of the Issuing Entity as
well as Excluded Amounts, other than (i) amounts distributable to the Class P
Certificates, (ii) the interests issued by the SWAP REMIC and the interests
issued by the Lower Tier REMIC, (iii) the grantor trusts described in this
Section 10.01 and (iv) the Swap Agreement and the Swap Account. The SWAP REMIC
shall issue the SWAP REMIC Regular Interests, which shall be designated as
regular interests of such REMIC, and shall issue the Class G Certificate, which
shall be designated as the sole class of residual interest in the SWAP REMIC.
Each of the SWAP REMIC Regular Interests shall have the characteristics set
forth in the Preliminary Statement and this Section 10.01.

     The Lower Tier REMIC shall consist of the SWAP REMIC Regular Interests. The
Lower Tier REMIC shall issue the Lower Tier REMIC Regular Interests, which shall
be designated as regular interests of such REMIC and shall issue the Class LTR
Interest, which shall be designated as the sole class of residual interest in
the Lower Tier REMIC. Each of the Lower Tier REMIC Regular Interests shall have
the characteristics set forth in its definition and the Preliminary Statement.

     The assets of the Upper Tier REMIC shall be the Lower Tier REMIC Regular
Interests. The REMIC Regular Interests shall be designated as the regular
interests in the Upper Tier REMIC and the Residual Interest shall be designated
as the sole class of residual interest in the Upper Tier REMIC. For federal
income tax purposes, the pass-through rate on each REMIC Regular Interest (other
than the Uncertificated Class C Interest and the Class UT-IO Interest) and on
the sole class of residual interest in the Upper Tier REMIC shall be subject to
a cap equal to the Upper Tier REMIC Net WAC Cap.

     The beneficial ownership of the Class LTR Interest and the Residual
Interest shall be represented by the Class R Certificate. The Class LTR Interest
shall not have a principal balance or bear interest.

     (b) The Closing Date is hereby designated as the "Startup Day" of each
REMIC designated in clause (a) above, within the meaning of Section 860G(a)(9)
of the Code.

     (c) The "tax matters person" with respect to the SWAP REMIC for purposes of
the REMIC Provisions shall be the beneficial owner of the Class G Certificate,
and the "tax matters person" with respect to the Lower Tier REMIC and the Upper
Tier REMIC for purposes of the REMIC Provisions shall be the beneficial owner of
the Class R Certificate; provided, however, that each of the Holder of the Class
G Certificate and the Holder of the Class R Certificate, by its acceptance
thereof, irrevocably appoints the Securities Administrator as its agent and
attorney-in-fact to act as "tax matters person" with respect to each such REMIC
for purposes of the REMIC Provisions. If there is more than one beneficial owner
of the Class G Certificate or

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Class R Certificate, the "tax matters person" with respect to the applicable
REMIC or REMICs shall be the Person with the greatest percentage interest in the
Class G or Class R Certificate, as applicable, and, if there is more than one
such Person, shall be determined under Treasury regulation Section 1.860F-4(d)
and Treasury regulation Section 301.6231(a)(7)-1.

     (d) It is intended that each of the REMICs provided for herein shall
constitute, and that the affairs of the Issuing Entity shall be conducted so as
to allow each such REMIC to qualify as, a "real estate mortgage investment
conduit" as defined in and in accordance with the REMIC Provisions. It is also
intended that each of the grantor trusts provided for in this Section 10.01
shall constitute, and that the affairs of the Issuing Entity shall be conducted
so as to allow each such grantor trust to qualify as, a grantor trust under the
provisions of Subpart E, Part I of Subchapter J of the Code. In furtherance of
such intention, the REMIC Administrator covenants and agrees that it shall act
as agent (and the REMIC Administrator is hereby appointed to act as agent) on
behalf of each of the REMICs provided for herein and that in such capacity it
shall: (a) prepare and file, or cause to be prepared and filed, in a timely
manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Return (Form
1066 or any successor form adopted by the Internal Revenue Service) and prepare
and file or cause to be prepared and filed with the Internal Revenue Service and
applicable state or local tax authorities income tax or information returns for
each taxable year with respect to each of the REMICs and grantor trusts provided
for herein, containing such information and at the times and in the manner as
may be required by the Code or state or local tax laws, regulations, or rules,
and furnish or cause to be furnished to Securityholders the schedules,
statements or information at such times and in such manner as may be required
thereby; (b) make or cause to be made elections, on behalf of each of the REMICs
provided for herein to be treated as a REMIC on the federal tax return of such
REMICs for their first taxable years (and, if necessary, under applicable state
law); (c) prepare and forward, or cause to be prepared and forwarded, to the
Securityholders and to the Internal Revenue Service and, if necessary, state tax
authorities, all information returns and reports as and when required to be
provided to them in accordance with the REMIC Provisions or other applicable
law, including without limitation, the calculation of any original issue
discount using the percentage of the Prepayment Assumption used in pricing the
Securities; (d) provide information necessary for the computation of tax imposed
on the transfer of a Class G or Class R Certificate to a Person that is not a
Permitted Transferee, or an agent (including a broker, nominee or other
middleman) of a Person that is not a Permitted Transferee, or a pass through
entity in which a Person that is not a Permitted Transferee is the record holder
of an interest (the reasonable cost of computing and furnishing such information
may be charged to the Person liable for such tax); (e) to the extent that they
are under its control conduct the affairs of each of the REMICs and grantor
trusts provided for herein at all times that any Securities are outstanding so
as to maintain the status of each of the REMICs provided for herein as a REMIC
under the REMIC Provisions and the status of each of the grantor trusts provided
for herein as a grantor trust under Subpart E, Part I of Subchapter J of the
Code; (f) not knowingly or intentionally take any action or omit to take any
action that would cause the termination of the REMIC status of any of the REMICs
provided for herein or result in the imposition of tax upon any such REMIC; (g)
not knowingly or intentionally take any action or omit to take any action that
would cause the termination of the grantor trust status under Subpart E, Part I
of Subchapter J of the Code of any of the grantor trusts provided for herein or
result in the imposition of tax upon any such grantor trust; (h) pay, from the
sources specified in Section 10.01(g), the amount of any federal, state and
local taxes, including prohibited transaction taxes as described below, imposed
on each of the

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REMICs provided for herein prior to the termination of the Issuing Entity when
and as the same shall be due and payable (but such obligation shall not prevent
the REMIC Administrator or any other appropriate Person from contesting any such
tax in appropriate proceedings and shall not prevent the REMIC Administrator
from withholding payment of such tax, if permitted by law, pending the outcome
of such proceedings); (i) sign or cause to be signed federal, state or local
income tax or information returns; (j) maintain records relating to each of the
REMICs provided for herein, including but not limited to the income, expenses,
assets and liabilities of each of the REMICs and grantor trusts provided for
herein; and (k) as and when necessary and appropriate, represent each of the
REMICs provided for herein in any administrative or judicial proceedings
relating to an examination or audit by any governmental taxing authority,
request an administrative adjustment as to any taxable year of any of the REMICs
provided for herein, enter into settlement agreements with any governmental
taxing agency, extend any statute of limitations relating to any tax item of any
of the REMICs provided for herein, and otherwise act on behalf of each of the
REMICs provided for herein in relation to any tax matter involving any of such
REMICs or any controversy involving the Issuing Entity.

     (e) [Reserved].

     (f) Each Servicer and the REMIC Administrator shall take such actions and
shall cause each REMIC created hereunder to take such actions as are reasonably
within each Servicer's or the REMIC Administrator's control and the scope of its
duties more specifically set forth herein as shall be necessary or desirable to
maintain the status of each REMIC as a REMIC under the REMIC Provisions (and the
Indenture Trustee and the Securities Administrator shall assist each Servicer
and the REMIC Administrator, to the extent reasonably requested by each Servicer
and the REMIC Administrator to do so). Each Servicer and the REMIC Administrator
shall not knowingly or intentionally take any action, cause the Trust Estate to
take any action or fail to take (or fail to cause to be taken) any action
reasonably within their respective control that, under the REMIC Provisions, if
taken or not taken, as the case may be, could (i) endanger the status of any
portion of any of the REMICs as a REMIC or (ii) result in the imposition of a
tax upon any of the REMICs (including but not limited to the tax on prohibited
transactions as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC set forth in Section 860G(d) of the Code) (either such
event, in the absence of an Opinion of Counsel or the indemnification referred
to in this sentence, an "Adverse REMIC Event") unless each Servicer or the REMIC
Administrator, as applicable, has received an Opinion of Counsel (at the expense
of the party seeking to take such action or, if such party fails to pay such
expense, and each Servicer or the REMIC Administrator, as applicable, determines
that taking such action is in the best interest of the Trust Estate and the
Noteholders and the Certificateholders, at the expense of the Trust Estate, but
in no event at the expense of each Servicer, the REMIC Administrator, the Owner
Trustee or the Indenture Trustee) to the effect that the contemplated action
will not, with respect to each REMIC created hereunder, endanger such status or,
unless each Servicer, the REMIC Administrator or both, as applicable, determine
in its or their sole discretion to indemnify the Trust Estate against the
imposition of such a tax, result in the imposition of such a tax. Wherever in
this Agreement a contemplated action may not be taken because the timing of such
action might result in the imposition of a tax on the Trust Estate, or may only
be taken pursuant to an Opinion of Counsel that such action would not impose a
tax on the Trust Estate, such action may nonetheless be taken provided that the
indemnity given in the preceding sentence with respect to any taxes that might
be imposed on the Trust Estate has been given and

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that all other preconditions to the taking of such action have been satisfied.
Neither the Indenture Trustee nor the Securities Administrator shall take or
fail to take any action (whether or not authorized hereunder) as to which each
Servicer or the REMIC Administrator, as applicable, has advised it in writing
that it has received an Opinion of Counsel to the effect that an Adverse REMIC
Event could occur with respect to such action. In addition, prior to taking any
action with respect to any of the REMICs created hereunder or any related assets
thereof, or causing any of the REMICs to take any action, which is not expressly
permitted or authorized under the terms of this Agreement, the Indenture Trustee
and the Securities Administrator will consult with each Servicer or the REMIC
Administrator, as applicable, or its designee, in writing, with respect to
whether such action could cause an Adverse REMIC Event to occur with respect to
any of the REMICs, and neither the Indenture Trustee nor the Securities
Administrator shall take any such action or cause any REMIC to take any such
action as to which each Servicer or the REMIC Administrator, as applicable, has
advised it in writing that an Adverse REMIC Event could occur. Each Servicer or
the REMIC Administrator, as applicable, may consult with counsel to make such
written advice, and the cost of same shall be borne by the party seeking to take
the action not expressly permitted by this Agreement, but in no event at the
expense of each Servicer or the REMIC Administrator. At all times as may be
required by the Code, each Servicer, the Securities Administrator and the
Indenture Trustee will to the extent within its control and the scope of its
duties more specifically set forth herein, maintain substantially all of the
assets of each REMIC created hereunder as "qualified mortgages" as defined in
Section 860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

     (g) In the event that any tax is imposed on "prohibited transactions" of
any of the REMICs created hereunder as defined in Section 860F(a)(2) of the
Code, on "net income from foreclosure property" of any of the REMICs as defined
in Section 860G(c) of the Code, on any contributions to any of the REMICs after
the Startup Day therefor pursuant to Section 860G(d) of the Code, or any other
tax is imposed by the Code or any applicable provisions of state or local tax
laws, such tax shall be charged (i) to each Servicer, if such tax arises out of
or results from a breach by each Servicer of any of its obligations under this
Agreement or the applicable Servicing Agreement or each Servicer has in its sole
discretion determined to indemnify the Trust Estate against such tax, (ii) to
the Indenture Trustee, if such tax arises out of or results from a breach by the
Indenture Trustee of any of its obligations under this Agreement, (iii) to the
Securities Administrator, if such tax arises out of or results from a breach by
the Securities Administrator of any of its obligations under this Agreement or
(iv) otherwise against amounts on deposit in the Payment Account and on the
Payment Date(s) following such reimbursement the aggregate of such taxes shall
be allocated in reduction of the accrued interest due on each Class entitled
thereto on a pro rata basis.

     (h) The Securities Administrator and each Servicer shall, for federal
income tax purposes, maintain books and records with respect to each REMIC
created hereunder on a calendar year and on an accrual basis or as otherwise may
be required by the REMIC Provisions.

     (i) Following the Startup Day, neither the Servicers, the Securities
Administrator nor the Indenture Trustee shall accept any contributions of assets
to any of the REMICs created hereunder unless the Servicers, the Securities
Administrator and the Indenture Trustee shall have received an Opinion of
Counsel (at the expense of the party seeking to make such contribution) to the
effect that the inclusion of such assets in such REMIC will not cause any of the
REMICs

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to fail to qualify as a REMIC at any time that any Securities are outstanding or
subject any of the REMICs to any tax under the REMIC Provisions or other
applicable provisions of federal, state and local law or ordinances.

     (j) Neither the Servicers nor the Securities Administrator shall enter into
any arrangement by which any of the REMICs created hereunder will receive a fee
or other compensation for services nor permit any of the REMICs to receive any
income from assets other than "qualified mortgages" as defined in Section
860G(a)(3) of the Code or "permitted investments" as defined in Section
860G(a)(5) of the Code.

     (k) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
Regulations, the "latest possible maturity date" by which the Class Principal
Balance of each Class of Notes representing a regular interest in the applicable
REMIC is the Final Maturity Date.

     (l) Within 30 days after the Closing Date, the REMIC Administrator shall
prepare and file with the Internal Revenue Service Form 8811, "Information
Return for Real Estate Mortgage Investment Conduits (REMIC) and Issuers of
Collateralized Debt Obligations" for each REMIC created hereunder and shall
update such information at the time or times in the manner required by the Code.

     (m) The Securities Administrator will apply for an employer identification
number from the Internal Revenue Service on a Form SS-4 or any other acceptable
method for all tax entities.

     (n) (i) It is intended that the rights of each Class of Notes and the Class
R Certificates to receive payments in respect of Excess Interest shall be
treated as a right in interest rate cap contracts written by the Class C
Certificateholders in favor of the holders of each Class of Notes and the Class
R Certificates and such shall be accounted for as property held separate and
apart from the regular interests in the Upper Tier REMIC held by the holders of
the Notes and the residual interest in the Upper Tier REMIC held by the holder
of the Class R Certificates. For information reporting requirements, the rights
of the Notes and the Class R Certificates to receive payments in respect of
Excess Interest shall be assumed to have zero or a de minimis value. This
provision is intended to satisfy the requirements of Treasury Regulations
Section 1.860G-2(i) for the treatment of property rights coupled with REMIC
interests to be separately respected and shall be interpreted consistently with
such regulation. On each Payment Date, to the extent that any of the Notes or
Class R Certificates receive payments in respect of Excess Interest, such
amounts, to the extent not derived from payments on the Swap Agreement, will be
treated as distributed by the Upper Tier REMIC to the Class C Certificates pro
rata in payment of the amounts specified in Section 3.06(II)(c)(17) and then
paid to the relevant Class of Notes or Certificates pursuant to the related
interest rate cap agreement.

     (ii) It is intended that the beneficial owners of the Notes and the Class R
Certificates shall be treated as having entered into a notional principal
contract with respect to the beneficial owners of the Class C Certificates.
Pursuant to each such notional principal contract, all beneficial owners of each
Class of Notes and the Class R Certificates shall be treated as having agreed to
pay, on each Payment Date, to the beneficial owners of the Class C Certificates
an

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aggregate amount equal to the excess, if any, of (i) the amount payable on such
Payment Date on the Corresponding REMIC Regular Interest of such Class of Notes
or the Class R Certificates over (ii) the amount payable on such Class of Notes
or the Class R Certificates on such Payment Date (such excess, a "Class Payment
Shortfall"). A Class Payment Shortfall shall be allocated to each Class of Notes
or the Class R Certificates to the extent that interest accrued on such Class
for the related Accrual Period at the Note Interest Rate or Pass-Through Rate
for a Class, computed by substituting "Upper Tier REMIC Net WAC Cap" for the
Available Funds Cap set forth in the definition thereof, exceeds the amount of
interest accrued on such Class at the Note Interest Rate or Pass-Through Rate
(without such substitution) for the related Accrual Period, and a Class Payment
Shortfall payable from principal collections shall be allocated to the most
subordinate Class of Notes or Class R Certificates with an outstanding principal
balance to the extent of such balance.

     (o) The parties intend that the portion of the Issuing Entity consisting of
the Uncertificated Class C Interest, the uncertificated Class UT-IO Interest,
the rights to receive payments deemed made by the Notes and Class R Certificates
in respect of notional principal contracts described in Section 10.01(n)(ii),
the Swap Account, the Swap Agreement and the obligation of the holders of the
Class C Certificates to pay amounts in respect of Excess Interest to the holders
of the Notes and the Class R Certificates shall be treated as a "grantor trust"
under the Code, for the benefit of the holders of the Class C Certificates, and
the provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the REMIC Administrator shall (i) furnish or
cause to be furnished to the holders of the Class C Certificates information
regarding their allocable share, if any, of the income with respect to such
grantor trust, (ii) file or cause to be filed with the Internal Revenue Service
Form 1041 (together with any necessary attachments) and such other forms as may
be applicable and (iii) comply with such information reporting obligations with
respect to payments from such grantor trust to the holders of the Notes and
Class R Certificates as may be applicable under the Code.

     (p) The parties intend that the portion of the Issuing Entity consisting of
the right to receive amounts distributable to the Class P Certificates shall be
treated as a "grantor trust" under the Code, for the benefit of the holders of
the Class P Certificates, and the provisions hereof shall be interpreted
consistently with this intention. In furtherance of such intention, the REMIC
Administrator shall (i) furnish or cause to be furnished to the holders of the
Class P Certificates information regarding their allocable share of the income
with respect to such grantor trust and (ii) file or cause to be filed with the
Internal Revenue Service Form 1041 (together with any necessary attachments) and
such other forms as may be applicable.

     (q) The parties intend that amounts paid to the Swap Counterparty under the
Swap Agreement shall be deemed for federal income tax purposes to be paid by the
Class C Certificates first, out of funds deemed received in respect of the Class
UT-IO Interest, second, out of funds deemed received in respect of the
Uncertificated Class C Interest and third, out of funds deemed received in
respect of notional principal contracts described in Section 10.01(n)(ii), and
the provisions hereof shall be interpreted consistently with this intention. On
each Payment Date, to the extent that amounts paid to the Swap Counterparty are
deemed paid out of funds received in respect of the Uncertificated Class C
Interest, such amounts will be treated as distributed by the Upper Tier REMIC to
the Class C Certificates pro rata in payment

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of the amounts specified in Section 3.06(II)(c)(17) and then paid to the Swap
Counterparty pursuant to the Swap Agreement.

     The Swap Account shall be an "outside reserve fund" for federal income tax
purposes and not an asset of any REMIC. Furthermore, the Holders of the Class C
Certificates shall be the beneficial owners of the Swap Account for all federal
income tax purposes, and shall be taxable on all income earned thereon.

     Section 10.02. REMIC Distributions.

     On each Payment Date, amounts on deposit in the Payment Account shall be
treated for federal income tax purposes as applied to distributions on the
interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount
sufficient to make the distributions on the respective Securities on such
Payment Date in accordance with the provisions of Section 3.06.

     All payments of principal and interest at the Net Mortgage Rate on each of
the Mortgage Loans and Excluded Amounts (other than amounts distributable to the
Class P Certificates and other than amounts reinvested in draws on HELOCs)
received by the SWAP REMIC with respect to the Mortgage Loans and Excluded
Amounts shall be paid to the SWAP REMIC Regular Interests and the Class G
Certificates until the principal balance of all such interests have been reduced
to zero and any losses allocated to such interests have been reimbursed. Any
available funds remaining in the SWAP REMIC on a Payment Date after such
distributions to the SWAP REMIC Regular Interests and the Class G Certificates
shall be distributed to the Class G Certificates. On each Payment Date, the
Securities Administrator shall distribute the aggregate Interest Funds (net of
expenses and payments to the Class P Certificates) as well as interest received
with respect to Excluded Amounts with respect to each of the SWAP REMIC Regular
Interests and the Class G Certificates based on the interest rates for each such
SWAP REMIC Regular Interest and Class G Certificates. On each Payment Date, the
Securities Administrator shall distribute (i) principal received with respect to
Excluded Amounts to the Class G Certificates and (ii) the aggregate Principal
Funds (net of amounts reinvested in draws on HELOCs) in the following order: (A)
to the Class G Certificates up to an amount equal to the Additional Balance
Advance Amount, (B) to the Class SW-Z Interest until its principal balance is
reduced to zero and (C) sequentially to each of the other SWAP REMIC Regular
Interests in ascending order of their numerical class designation, in equal
amounts to each such class in such numerical designation, until the principal
balance of each such class is reduced to zero. All losses (other than those with
respect to Excluded Amounts) shall be allocated among the SWAP REMIC Regular
Interests in the same manner that principal distributions are allocated.
Subsequent Recoveries and loss reimbursements (other than those with respect to
Excluded Amounts) shall be allocated among the SWAP REMIC Regular Interests in
the reverse fashion from the manner in which losses are allocated.

     All payments received by the Lower Tier REMIC with respect to the SWAP
REMIC Regular Interests shall be paid to the Lower Tier REMIC Regular Interests
until the principal balance of all such interests have been reduced to zero and
any losses allocated to such interests have been reimbursed. Any excess amounts
shall be distributed to the Class LTR Interest. On each Payment Date, an amount
equal to 50% of the increase in the Overcollateralization Amount shall be
payable as a reduction of the principal amounts of the Lower Tier REMIC Marker

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Interests (with such amount allocated among the Lower Tier REMIC Marker
Interests so that each Lower Tier REMIC Marker Interest will have its principal
reduced by an amount equal to 50% of any increase in the Overcollateralization
Amount that results in a reduction in the principal balance of its Corresponding
Notes) and will be accrued and added to the principal balance of the Class LTX
Interest. All payments of scheduled principal and prepayments of principal on
the Mortgage Loans (other than amounts reinvested in draws on HELOCs and other
than amounts distributed to the Class G Certificates) shall be allocated 50% to
the Class LTX Interest and 50% to the Lower Tier REMIC Marker Interests (with
principal payments allocated to each of the Lower Tier REMIC Marker Interests in
an amount equal to 50% of the principal amounts distributed to the Corresponding
Notes in reduction of their principal amounts). Notwithstanding the preceding
sentence, an amount equal to the principal payments that result in a reduction
in the Overcollateralization Amount shall be treated as payable entirely to the
Class LTX Interest. Realized Losses that are allocated to the Notes shall be
applied to the Lower Tier REMIC Marker Interests and the Class LTX Interest so
that after all distributions have been made on each Payment Date (i) the
principal balance of each of the Lower Tier REMIC Marker Interests is equal to
50% of the principal balance of the Corresponding Notes and (ii) the principal
balance of the Class LTX Interest is equal to the excess of (A) the sum of (x)
50% of the aggregate Stated Principal Balance of the Mortgage Loans and (y) 50%
of the Overcollateralization Amount over (B) 50% of the Additional Balance
Advance Amount. Each Lower Tier REMIC Marker Interest shall be entitled to
receive an amount equal to 50% of all amounts distributed to the Corresponding
Notes in respect of unreimbursed amounts of Realized Losses. The Class LTX
Interest shall be entitled to receive all other amounts distributed to the Notes
in respect of unreimbursed amounts of Realized Losses.

     If on any Payment Date the Class Principal Balance of any Class of Notes is
increased pursuant to the last sentence of the definition of "Class Principal
Balance", then there shall be an equivalent increase in the principal amounts of
the Lower Tier REMIC Regular Interests, with such increase allocated (before the
making of distributions and the allocation of losses on the Lower Tier REMIC
Regular Interests on such Payment Date) among the Lower Tier REMIC Regular
Interests so that (i) each of the Lower Tier Marker Interests has a principal
balance equal to 50% of the principal balance of the Corresponding Notes, (ii)
the Class LTX Interest has a principal balance equal to the excess of (A) the
sum of (x) 50% of the aggregate Stated Principal Balance of the Mortgage Loans
and (y) 50% of the Overcollateralization Amount over (B) 50% of the Additional
Balance Advance Amount.

                                   ARTICLE XI

                                  MISCELLANEOUS

     Section 11.01. Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuing Entity to the Indenture Trustee or the
Securities Administrator to take any action under any provision of this
Indenture, the Issuing Entity 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

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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 Officer's 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 Officer's 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 to such Certificate or Opinion is required to be
     Independent, the statement required by the definition of the term
     "Independent Certificate".

     (b) Except with respect to an Optional Redemption pursuant to Section 11.18
hereof:

          (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 Issuing Entity shall, in addition to any obligation imposed
     in Section 11.01(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 of such deposit) to the Issuing Entity of the Collateral or
     other property or securities to be so deposited.

          (ii) Whenever the Issuing Entity is required to furnish to the
     Indenture Trustee an Officer's Certificate certifying or stating the
     opinion of any signatory thereof as to the matters described in clause (i)
     above, the Issuing Entity shall also deliver to the Indenture Trustee an
     Independent Certificate as to the same matters, if the fair value to the
     Issuing Entity 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 Issuing Entity, 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 to the Issuing Entity 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.

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<PAGE>

          (iii) Whenever any property or securities are to be released from the
     lien of this Indenture, the Issuing Entity 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 of 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 Issuing Entity 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 Issuing Entity 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, other than property as
     contemplated by clause (v) below 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 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
     Balances of the Notes.

          (v) Notwithstanding any provision of this Indenture, the Issuing
     Entity may, without compliance with the requirements of the other
     provisions of this Section 11.01, (A) collect, sell or otherwise dispose of
     the Mortgage Loans and receive Replacement Mortgage Loans as and to the
     extent permitted or required by the Operative Documents or (B) make cash
     payments out of the Payment Account as and to the extent permitted or
     required by the Operative Documents, so long as the Issuing Entity shall
     deliver to the Securities Administrator and the Indenture Trustee every six
     months, an Officer's Certificate of the Issuing Entity stating that all the
     dispositions of Collateral described in clauses (A) or (B) above that
     occurred during the preceding six calendar months were in the ordinary
     course of the Issuing Entity's business and that the proceeds thereof were
     applied in accordance with the Operative Documents.

     Section 11.02. Form of Documents Delivered to Indenture Trustee and
Securities Administrator. 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 Issuing Entity
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 such officer's
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, the Depositor or the Issuing Entity, stating
that the information with respect to such factual matters is in the possession
of the

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Seller, the Depositor or the Issuing Entity, 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 and/or the Securities
Administrator, it is provided that the Issuing Entity shall deliver any document
as a condition of the granting of such application, or as evidence of the
Issuing Entity'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 Issuing Entity 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 11.03. 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
Issuing Entity. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act of
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) conclusive in
favor of the Securities Administrator and the Issuing Entity, if made in the
manner provided in this Section 11.03.

     (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 any Noteholder 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 Issuing Entity in reliance thereon, whether or not notation
of such action is made upon such Note.

     Section 11.04. Notices, etc., to Indenture Trustee, Securities
Administrator, Issuing Entity and Rating Agencies.

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     (a) 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 Issuing Entity, it 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 shall
     promptly transmit any notice received by it from the Noteholders to the
     Issuing Entity, or

          (ii) the Issuing Entity by the Indenture Trustee, by the Securities
     Administrator or by any Noteholder, it shall be sufficient for every
     purpose hereunder if in writing and mailed first-class, postage prepaid to
     the Issuing Entity addressed to: Merrill Lynch Mortgage Investors Trust,
     2006-SL2, in care of Wilmington Trust Company, 1100 North Market Street,
     Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration,
     or at any other address previously furnished in writing to the Indenture
     Trustee and the Securities Administrator by the Issuing Entity. The Issuing
     Entity 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 Issuing Entity
or the Indenture Trustee, the Securities Administrator or the Owner Trustee
shall be in writing, personally delivered or mailed by certified mail, return
receipt requested, to (i) in the case of Moody's, at the following address:
Moody's Investors Service, Inc., ABS Monitoring Department, 99 Church Street,
New York, New York 10007, Attention: Residential Mortgage Surveillance Group,
(ii) in the case of Standard & Poor's, at the following address: Standard &
Poor's, 26 Broadway, 15th Floor, New York, New York 10004, Attention: Asset
Backed Surveillance Department; (iii) in the case of Fitch, at the following
address: Fitch, Inc., One State Street Plaza, 30th Floor, New York, New York
10004, Attention: Surveillance Group, and (iv) in the case of the Swap
Counterparty, 383 Madison Avenue, 36th Floor, New York, New York, 10129,
Attention: DPC Manager, or as to each of the foregoing, at such other address as
shall be designated by written notice to the other parties.

     Section 11.05. 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.

                                       79

<PAGE>

     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 11.06. Alternate Payment and Notice Provisions. Notwithstanding any
provision of this Indenture or any of the Notes to the contrary, the Issuing
Entity may enter into any agreement with any Noteholder providing for a method
of payment, or notice by the Securities Administrator to such Noteholder, that
is different from the methods provided for in this Indenture for such payments
or notices. The Issuing Entity shall furnish to the Securities Administrator a
copy of each such agreement and the Securities Administrator shall cause
payments to be made and notices to be given in accordance with such agreements.

     Section 11.07. 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 Trust Indenture
Act, such required provision shall control.

     The provisions of TIA Sections 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 11.08. Effect of Headings. The Article and Section headings herein
are for convenience only and shall not affect the construction hereof.

     Section 11.09. Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuing Entity 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 11.10. 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 11.11. Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders and any other party
secured hereunder, and any other Person with an

                                       80

<PAGE>

ownership interest in any part of the Trust Estate, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

     Section 11.12. 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 11.13. 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 11.14. 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 11.15. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuing Entity and at its expense accompanied by an Opinion of
Counsel (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 or the Securities Administrator under this Indenture.

     Section 11.16. Issuing Entity Obligation. No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuing Entity,
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 such capacity or in its
individual capacity, (ii) any owner of a beneficial interest in the Issuing
Entity or (iii) any partner, owner, beneficiary, agent, officer, director,
employee or agent of the Indenture Trustee, the Securities Administrator or the
Owner Trustee in such capacity or in its individual capacity, any holder of a
beneficial interest in the Issuing Entity, the Owner Trustee, the Indenture
Trustee or the Securities Administrator or of any successor or assign of any of
them in in such capacity or 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 of the Issuing Entity 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 Issuing Entity 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.

                                       81

<PAGE>

     Section 11.17. 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 the
day one year and one day after the date this Indenture terminates institute
against the Depositor or the Issuing Entity, or join in any institution against
the Depositor or the Issuing Entity 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 Operative
Documents.

     Section 11.18. Optional Redemption.

     (a) On or before the Determination Date following the Initial Optional
Redemption Date, the Securities Administrator shall attempt to terminate the
Trust by conducting an auction of all of the Mortgage Loans and REO Properties
via a solicitation of bids from at least three (3) bidders, each of which shall
be a nationally recognized participant in mortgage finance (the "Auction"). In
addition, the Securities Administrator will also solicit a bid from each Holder
of a Class C Certificate. The Depositor and the Securities Administrator agree
to work in good faith to develop bid procedures in advance of the Initial
Optional Redemption Date to govern the operation of the Auction. The Securities
Administrator shall be entitled to retain an investment banking firm and/or
other agents, which may be the Depositor or an affiliate of the Depositor, in
connection with the Auction, the cost of which shall be included in the Optional
Redemption Price (unless an Optional Redemption does not occur in which case
such costs shall be an expense of the Trust). The Securities Administrator shall
accept the highest bid received at the Auction; provided that the amount of such
bid equals or exceeds the Optional Redemption Price. The Securities
Administrator shall sell the Collateral to the highest bidder (the "Auction
Purchaser"). The Securities Administrator shall determine the Optional
Redemption Price based upon information provided by the Master Servicer, the
Swap Counterparty and the Depositor; provided, however, that with respect to the
Swap Termination Payment portion of the amounts described in clause (iv) of the
definition of Optional Redemption Price, the Securities Administrator shall
notify the Swap Counterparty at least three (3) Business Days prior to the date
of the Auction of its intention to conduct such Auction and to request from the
Swap Counterparty a good faith estimate of the Swap Termination Payment based
upon termination of the Swap Agreement on or subsequent to the date of the
Auction but not later than two (2) Business Days prior to the related Payment
Date. The Securities Administrator may conclusively rely upon the information
provided to it in accordance with the immediately preceding sentence and shall
not have any liability for the failure of any party to provide such information.
The Securities Administrator shall notify the bidders of the estimated Swap
Termination Payment received by the Securities Administrator from the Swap
Counterparty and that the winning bidder will be responsible for the final Swap
Termination Payment, which may be higher than such estimated Swap Termination
Payment. If an Optional Redemption occurs as a result of the Auction, the
Securities Administrator shall immediately notify the Swap Counterparty that an
Optional Redemption has occurred and that final payments and distributions on
the Securities will be made on the immediately following Payment Date. Upon such
notice, the Swap Counterparty shall inform that Securities Administrator of the
final Swap Termination Payment amount owed to the Swap Counterparty.

                                       82

<PAGE>

     (b) If an Optional Redemption does not occur as a result of the Auction's
failure to achieve the Optional Redemption Price, the Terminating Entity may, on
any Payment Date following such Auction, at its option, terminate the Trust by
purchasing all of the Mortgage Loans and REO Properties at a price equal to the
Optional Redemption Price. Upon the exercise of such option by the Terminating
Entity, the Securities Administrator shall immediately notify the Swap
Counterparty that an Optional Redemption has occurred and that final payments
and distributions on the Securities will be made on the immediately following
Payment Date. Upon such notice, the Swap Counterparty shall inform the
Securities Administrator of the actual Swap Termination Payment amount owed to
the Swap Counterparty. In connection with any such optional redemption, the
Optional Redemption Price shall be delivered to the Securities Administrator no
later than two Business Days immediately preceding the related Payment Date.
Notwithstanding anything to the contrary herein, the Optional Redemption Price
paid to the Securities Administrator by the Auction Purchaser or by the
Terminating Entity shall be deposited by the Securities Administrator directly
into the Payment Account immediately upon receipt. Upon any termination as a
result of an Auction, the Securities Administrator shall, out of the Optional
Redemption Price deposited into the Payment Account, (x) reimburse the
Securities Administrator for its costs and expenses necessary to conduct the
Auction and any other unreimbursed amounts owing to it and (y) pay to the Master
Servicer, the Servicers, the Securities Administrator, the Indenture Trustee and
the Custodians, the aggregate amount of any unreimbursed out-of-pocket costs,
expenses, indemnities and disbursements owed to the Master Servicer, the
Servicers, the Securities Administrator, the Indenture Trustee and the
Custodians, and any unpaid or unreimbursed Advances and Servicing Advances.
Notwithstanding anything herein to the contrary, only an amount equal to the
Optional Redemption Price, reduced by the portion thereof consisting of the sum
of (x) any Swap Termination Payment and (y) the amount of any unpaid Net Swap
Payments that would not otherwise be funded by the Optional Redemption Price but
for clause (iv) of the definition of "Optional Redemption Price" (such portion,
the "Swap Optional Redemption Payment"), shall be made available for
distribution to the Securities. The Swap Optional Redemption Payment shall be
withdrawn by the Securities Administrator from the Payment Account and paid to
the Swap Counterparty, it being understood that the Swap Termination Payment
portion of such Swap Optional Termination Payment shall be an amount equal to
the actual Swap Termination Payment amount determined by the Swap Counterparty
upon its receipt of notice from the Securities Administrator as described above
in this Section 11.18(b). The Swap Optional Redemption Payment shall not be part
of any REMIC and shall not be paid into any account that is part of any REMIC.

     (c) If any right to purchase is exercised, the Terminating Entity or
Auction Purchaser, as applicable, shall deposit the Optional Redemption Price
with the Securities Administrator pursuant to Section 4.10 hereof and, upon the
receipt of such deposit, the Indenture Trustee or the Custodians shall release
to the designee appointed by the Terminating Entity or the Auction Purchaser, as
applicable, the files pertaining to the Mortgage Loans being purchased. The
Terminating Entity or the Auction Purchaser, as applicable, at their expense,
shall prepare and deliver to the Indenture Trustee or the related Custodians,
for execution, at the time the related Loans are to be released to the
Terminating Entity or the Auction Purchaser, as applicable, appropriate
documents assigning each such Mortgage Loan from the Indenture Trustee and the
Issuing Entity to the Terminating Entity or the Auction Purchaser, as
applicable. The Terminating Entity shall give the Indenture Trustee, the
Securities Administrator, the Master Servicer and the Servicers not less than
fifteen Business Days' prior written notice of the

                                       83

<PAGE>

Payment Date on which the Terminating Entity anticipates that the final
distribution will be made to the related Securityholders. Notice of any
termination, specifying the anticipated Final Scheduled Payment Date or other
Payment Date (which shall be a date that would otherwise be a Payment Date) upon
which the Noteholders may surrender their Notes and/or the Certificateholders
may surrender their Certificates to the Securities Administrator (if so required
by the terms hereof) for payment of the final distribution and cancellation,
shall be given promptly by the Securities Administrator by first class mail to
Holders of the affected Securities. Such notice shall be mailed no earlier than
the 15th day and not later than the 10th day preceding the applicable Optional
Termination Date and shall specify: (i) the anticipated Final Scheduled Payment
Date or other Payment Date upon which final payment of the Notes and/or
Certificates is anticipated to be made upon presentation and surrender of Notes
and/or Certificates at the office or agency of the Securities Administrator
therein designated; and (ii) the amount of any such final payment, if known.

     Section 11.19. Inspection. The Issuing Entity agrees that, on reasonable
prior notice, it shall permit any representative of the Indenture Trustee or the
Securities Administrator, during the Issuing Entity's normal business hours, to
examine all the books of account, records, reports and other papers of the
Issuing Entity, to make copies and extracts therefrom, to cause such books to be
audited by Independent certified public accountants, and to discuss the Issuing
Entity's affairs, finances and accounts with the Issuing Entity'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 or the
Securities Administrator, as applicable, may reasonably determine that such
disclosure is consistent with its obligations hereunder.

     Section 11.20. Limitation of Liability of Owner Trustee. Notwithstanding
anything to the contrary herein, this Indenture has been executed and delivered
by Wilmington Trust Company, not individually or personally, but solely as Owner
Trustee of Merrill Lynch Mortgage Investors Trust, 2006-SL2, in the exercise of
the powers and authority conferred and vested in it, (a) each of the
representations, undertakings and agreements herein made on the part of the
Issuing Entity 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 Issuing Entity, (b) nothing herein
contained shall be construed as creating any liability on 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 (c) under no circumstances shall Wilmington Trust Company be
personally liable for the payment of any indebtedness or expenses of the Issuing
Entity or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Issuing Entity under this
Indenture or any other related documents.

     Section 11.21. Third Party Beneficiary. The Swap Counterparty shall be
deemed a third-party beneficiary of this Indenture to the same extent as if it
were a party hereto, and shall have the right to enforce the provisions of
this Indenture.

     Section 11.22. Additional Termination Requirements.

                                       84

<PAGE>

     (a) In the event that the Auction Purchaser or the Terminating Entity
purchases the Mortgage Loans pursuant to Section 11.18 or the Trust Estate is
sold pursuant to Section 5.04, at such time as the Mortgage Loans are so
purchased or sold, the Trust shall be terminated in accordance with the
following additional requirements, unless the Securities Administrator has been
supplied with an Opinion of Counsel, at the expense of the Depositor, to the
effect that the failure to comply with the requirements of this Section 11.22
will not (i) result in the imposition of taxes on "prohibited transactions" on
any REMIC created hereunder, or (ii) cause any REMIC created hereunder to fail
to qualify as a REMIC at any time that any Securities are outstanding:

          (i) The Holder of the Class G Certificates shall be obligated to pay
     to the Securities Administrator an amount equal to the Excluded Amounts
     plus one month's interest accrued at the Net WAC (on a 30/360 basis). Such
     payment shall be treated as consideration for the acquisition by the Holder
     of the Class G Certificates of the Excluded Amounts from the SWAP REMIC.
     The Securities Administrator shall then be obligated to distribute such
     amount to the Holder of the Class G Certificates. Such distribution shall
     be treated as a distribution by the SWAP REMIC in respect of the Class G
     Certificates;

          (ii) The Depositor shall establish a 90-day liquidation period and
     notify the Securities Administrator thereof, and the Securities
     Administrator shall in turn specify the first day of such period in a
     statement attached to the final tax returns of each of the REMICs provided
     for herein pursuant to Treasury Regulation Section 1.860F-1. The Depositor
     shall satisfy all the requirements of a qualified liquidation under Section
     860F of the Code and any regulations thereunder, as evidenced by an Opinion
     of Counsel obtained at the expense of the Depositor;

          (iii) During such 90-day liquidation period, and at or prior to the
     time of making the final payment on the Securities, the Securities
     Administrator shall sell all of the assets of the Issuing Entity for cash;
     and

          (iv) At the time of the making of the final payment on the Securities,
     the Securities Administrator shall distribute or credit, or cause to be
     distributed or credited, to the holder of the residual interest in each
     REMIC all cash on hand relating to such REMIC (other than cash retained to
     meet outstanding claims), and the Issuing Entity and each REMIC shall
     terminate at that time, whereupon the Securities Administrator shall have
     no further duties or obligations with respect to sums distributed or
     credited to the Securityholders.

     (b) The Securities Administrator as agent for each REMIC hereby agrees to
adopt and sign such a plan of complete liquidation upon the written request of
the Depositor, and the receipt of the Opinion of Counsel referred to in Section
11.22(a)(ii) and to take such other action, at the Depositor's expense, in
connection therewith as may be reasonably requested by the Depositor.

     (c) By their acceptance of the Securities, the Holders thereof hereby
authorize the Depositor to specify the 90-day liquidation period for the Issuing
Entity, which authorization shall be binding upon all successor Securityholders.

                                       85
<PAGE>

     IN WITNESS WHEREOF, the Issuing Entity, the Securities Administrator and
the Indenture Trustee have caused their names to be signed hereto by their
respective officers thereunto duly authorized, all as of the day and year first
above written.

                                        MERRILL LYNCH MORTGAGE INVESTORS
                                        TRUST 2006-SL2,
                                        as Issuing Entity

                                        By: Wilmington Trust Company, not in its
                                            individual capacity but solely as
                                            Owner Trustee

                                        By:
                                             -----------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        LASALLE BANK NATIONAL ASSOCIATION,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CITIBANK, N.A., as Indenture Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       E-1

<PAGE>

STATE OF ____________________________)
                                     )
COUNTY OF ___________________________)

     On the 8th day of August, 2006, before me, a notary public in and for said
State, personally appeared ________________________, known to me to be a(n)
________________________ of LaSalle Bank National Association, the entity that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                        ----------------------------------------
                                                      Notary Public

[NOTARIAL SEAL]

                                       E-2

<PAGE>

STATE OF DELAWARE                    )
                                     )
COUNTY OF ___________________________)

     On the 8th day of August, 2006, before me personally appeared
________________________ to me known, who being by me duly sworn, did depose and
say, that he/she is a(n) ________________________ of the Owner Trustee, one of
the entities described in and which executed the above instrument; and that
he/her signed his/her name thereto by like order.

                                        ----------------------------------------
                                                      Notary Public

[NOTARIAL SEAL]

                                       E-3

<PAGE>

STATE OF ____________________________)
                                     )
COUNTY OF ___________________________)

     On the 8th day of August, 2006, before me personally appeared
________________________ to me known, who being by me duly sworn, did depose and
say, that he/she is a(n) ________________________ of the Indenture Trustee, one
of the corporations described in and which executed the above instrument; and
that he/she signed his/her name thereto by like order.

                                        ----------------------------------------
                                                      Notary Public

[NOTARIAL SEAL]

                                       E-4
<PAGE>
                                   EXHIBIT A-1

                              FORM OF CLASS A NOTES

      SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS NOTE REPRESENTS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

      THIS NOTE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE SPONSOR,
THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE CUSTODIANS REFERRED TO
BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS NOTE, THE REMIC REGULAR INTEREST
REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED
BY THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE
CUSTODIANS OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

      EACH TRANSFEREE OF THIS NOTE WILL BE DEEMED TO REPRESENT EITHER (I) THAT
IT IS NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THE NOTE FOR, ON BEHALF
OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT
TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE"), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") OR (II) THAT ITS ACQUISITION AND HOLDING OF THIS
NOTE OR ANY INTEREST THEREIN, THROUGHOUT THE PERIOD THAT IT HOLDS THIS NOTE,
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA
OR THE CODE, OR A VIOLATION OF SIMILAR LAW, AND WILL NOT SUBJECT THE DEPOSITOR,
THE INDENTURE TRUSTEE, THE ISSUING ENTITY, THE OWNER TRUSTEE, THE SECURITIES
ADMINISTRATOR, THE MASTER SERVICER OR THE SERVICERS TO ANY OBLIGATION IN
ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE INDENTURE.

      FOLLOWING THE INITIAL ISSUANCE OF THE NOTES, THE PRINCIPAL BALANCE OF THIS
NOTE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE
ACQUIRING THIS NOTE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY INQUIRY OF
THE SECURITIES ADMINISTRATOR.

                                A-1-1
<PAGE>
                               CLASS A-[ _ ] NOTE

Number:  06-SL2-A-[ _ ]                    Original Denomination:
                                           $[ -------- ]

Cut-off Date: July 1, 2006                 Last Scheduled
                                           Distribution Date: May 25, 2037

First Distribution Date: August 25, 2006   Aggregate Initial Note
                                           Balance of all Class A-[ _ ]
                                           Notes:  $[ ________ ]

Pass-Through Rate:  Variable 1             CUSIP:  [ ________ ]

------------------
1  Subject to a Cap as Described in the Indenture

                                A-1-2
<PAGE>
                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

      evidencing an ownership interest in distributions allocable to the Class
A-[ _ ] Notes with respect to a pool of conventional, sub-prime mortgage loans
and home equity revolving lines of credit formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Securities
Administrator 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 certifies that CEDE & CO. is the registered owner of the
ownership interest (the "Ownership Interest") evidenced by this Note (obtained
by dividing the Original Denomination of this Note by the aggregate Initial
Class Principal Balance of all Class A-[ _ ] Notes) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans and home equity
revolving lines of credit (the "Mortgage Loans") formed and sold by Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor"), and certain
other property held in trust for the benefit of Securityholders (collectively,
the "Trust Fund"). The Mortgage Loans are serviced by Wilshire Credit
Corporation and Countrywide Home Loans Servicing LP (the "Servicers") and are
secured by second liens on Mortgaged Properties. The Trust Fund was created
pursuant to an indenture (the "Indenture"), dated as of July 1, 2006, among
Merrill Lynch Mortgage Investors Trust, Series 2006-SL2, as issuing entity (the
"Issuing Entity"), LaSalle Bank National Association, as Securities
Administrator (the "Securities Administrator"), and Citibank, N.A., as indenture
trustee (the "Indenture Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Indenture.

            This Note is one of a duly authorized issue of Notes, designated as
Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Notes, Series
2006-SL2, Class A-[ _ ] (the "Class A-[ _ ] Notes") and is issued under and is
subject to the terms, provisions and conditions of the Indenture, to which
Indenture the Holder of this Note by virtue of the acceptance hereof assents and
by which Indenture such Holder is bound.

            The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

                                     A-1-3
<PAGE>
            Pursuant to the terms of the Indenture, the Securities Administrator
will distribute from funds in the Payment Account the amounts described in the
Indenture on the 25th day of each month or, if such 25th day is not a Business
Day, the Business Day immediately following (the "Distribution Date"),
commencing in August 2006. Such distributions will be made to the Person in
whose name this Note is registered at the close of business on the last Business
Day of the month preceding the month in which such payment is made.

            Distributions on this Note will be made either by check mailed to
the address of the person entitled to distributions as it appears on the Note
Register or, in the case of any noteholder that has so notified the Securities
Administrator in writing in accordance with the Indenture, by wire transfer in
immediately available funds to the account of such noteholder at a bank or other
depository institution having appropriate wire transfer facilities; provided,
however, that the final distribution in retirement of the notes will be made
only upon presentation and surrender of this Note at the office of the
Securities Administrator or such other address designated in writing by the
Securities Administrator. On each Distribution Date, a holder of this Note will
receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Notes.

            The Securities Administrator will maintain or cause to be maintained
a Note Register in which, subject to such reasonable regulations as it may
prescribe, the Securities Administrator will provide for the registration of
Notes and of transfers and exchanges of Notes. Upon surrender for registration
of transfer of any Note at any office or agency of the Securities Administrator,
or, if an Authenticating Agent has been appointed under the Indenture, the
Authenticating Agent, maintained for such purpose, the Securities Administrator,
will, subject to the limitations set forth in the Indenture, authenticate and
deliver, in the name of the designated transferee or transferees, a Note of a
like class and dated the date of authentication by the Authenticating Agent.
Notwithstanding the above, the final distribution on this Note will be made
after due notice by the Securities Administrator, of the pendency of such
distribution and only upon presentation and surrender of this Note at the office
or agency appointed by the Securities Administrator, for that purpose and
specified in such notice of final distribution.

            Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

            Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid for any purpose.

                                     A-1-4
<PAGE>
            IN WITNESS WHEREOF, the Owner Trustee has caused this Note to be
duly executed.

Dated:  August 8, 2006                   MERRILL LYNCH MORTGAGE INVESTORS
                                         TRUST, SERIES 2006-SL2

                                         WILMINGTON TRUST COMAPNY, as Owner
                                         Trustee

                                         By:_________________________
                                                Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

LASALLE BANK NATIONAL ASSOCIATION, as
Securities Administrator

By:_________________________
      Authorized Signatory

                                     A-1-5
<PAGE>
                                 REVERSE OF NOTE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

            This Note is one of a duly authorized issue of Securities,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Indenture Trustee.

            Following the initial issuance of the Notes, the principal balance
of this Note will be different from the Original Denomination shown above.
Anyone acquiring this Note may ascertain its current principal balance by
inquiry of the Securities Administrator.

            The Holder, by its acceptance of this Note, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Securities Administrator nor the
Indenture Trustee is liable to the Holders for any amount payable under this
Note or the Indenture or, except as expressly provided in the Indenture, subject
to any liability under the Indenture.

            This Note does not purport to summarize the Indenture and reference
is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Indenture Trustee and the Securities Administrator.

            No service charge will be made to the Holder for any transfer or
exchange of the Note, but the Securities Administrator may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Note. Prior to due presentation
of a Note for registration of transfer, the Depositor, the Indenture Trustee and
the Securities Administrator may treat the person in whose name any Note is
registered as the owner of such Note and the Percentage Interest in the Trust
Fund evidenced thereby for the purpose of receiving distributions pursuant to
the Indenture and for all other purposes whatsoever, and none of the Depositor,
the Indenture Trustee or the Securities Administrator will be affected by notice
to the contrary.

            The Indenture may be amended from time to time by the Issuing
Entity, the Securities Administrator and the Indenture Trustee without the
consent of any of the Noteholders, to cure any ambiguity, to correct or
supplement any provisions therein which may be inconsistent with the other
provisions therein, to ensure continuing treatment of each REMIC included in the
Trust Fund as a REMIC, or to make any other provisions with respect to matters
or questions arising under the Indenture which are not materially inconsistent
with the provisions

                                     A-1-6
<PAGE>
of the Indenture, provided that such action does not, as evidenced by an Opinion
of Counsel, adversely affect in any material respect the interests of any
Noteholder.

            The Indenture may also be amended from time to time by the Issuing
Entity, the Securities Administrator and the Indenture Trustee, with the consent
of the Holders of Notes evidencing in the aggregate not less than 66 2/3% of the
Percentage Interests of each Class of Notes affected thereby, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of the
Holders of Notes of such Class; provided, however, that no such amendment may
(i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any Note
without the consent of the Holder of such Note, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Notes in a manner
other than as described in clause (i), without the consent of the Holders of
Notes of such Class evidencing 66 2/3% or more of the Voting Rights of such
Class or (iii) reduce the aforesaid percentages of Notes the Holders of which
are required to consent to any such amendment without the consent of the Holders
of all such Notes then outstanding.

            The Class A-[ _ ] Notes are issuable only in registerable form, in
minimum denominations of $25,000 in initial Class Principal Amount and in
integral multiples of $1 in excess thereof, registered in the name of the
nominee of the Clearing Agency, which shall maintain such Notes through its
book-entry facilities.

            For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

            The obligations and responsibilities of Issuing Entity, the
Securities Administrator and the Indenture Trustee under the Indenture shall
terminate upon the earlier of (a) the exercise by the Securities Administrator
of an Optional Termination; and (b) the later of (i) the maturity or other
liquidation (or any Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property and (ii) the
distribution to Securityholders of all amounts required to be distributed to
them pursuant to the Indenture, as applicable. In no event shall the trusts
created under the Indenture continue beyond the earlier of (i) the expiration of
21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late Ambassador of the United States to the Court of St. James's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

                                      A-1-7
<PAGE>
                                                               DECHERT LLP DRAFT
                                                                        08/07/06

                              [FORM OF ASSIGNMENT]

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

--------------------------------------------------------------------------------

(Please Print or Type Name and Address of Assignee)

--------------------------------------------------------------------------------

the within Note, and all rights thereunder, and hereby does irrevocably
constitute and appoint

______________________Attorney to transfer the within Note on the books kept for
the registration thereof, with full power of substitution in the premises.

Dated:                                   NOTICE:  The signature to this
(Signature guaranty)                     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 whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                     A-1-8
<PAGE>
                                   EXHIBIT A-2

                              FORM OF CLASS M NOTES

      SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS NOTE REPRESENTS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

      THIS NOTE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE SPONSOR,
THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE CUSTODIANS REFERRED TO
BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS NOTE, THE REMIC REGULAR INTEREST
REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED
BY THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE
CUSTODIANS OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

      EACH TRANSFEREE OF THIS NOTE WILL BE DEEMED TO REPRESENT EITHER (I) THAT
IT IS NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THE NOTE FOR, ON BEHALF
OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT
TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE"), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") OR (II) THAT ITS ACQUISITION AND HOLDING OF THIS
NOTE OR ANY INTEREST THEREIN, THROUGHOUT THE PERIOD THAT IT HOLDS THIS NOTE,
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA
OR THE CODE, OR A VIOLATION OF SIMILAR LAW, AND WILL NOT SUBJECT THE DEPOSITOR,
THE INDENTURE TRUSTEE, THE ISSUING ENTITY, THE OWNER TRUSTEE, THE SECURITIES
ADMINISTRATOR, THE MASTER SERVICER OR THE SERVICERS TO ANY OBLIGATION IN
ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE INDENTURE.

      FOLLOWING THE INITIAL ISSUANCE OF THE NOTES, THE PRINCIPAL BALANCE OF THIS
NOTE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE
ACQUIRING THIS NOTE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY INQUIRY OF
THE SECURITIES ADMINISTRATOR.

                                     A-2-1
<PAGE>
                               CLASS M-[ _ ] NOTE

Number:  06-SL2-M-[ _ ]                    Original Denomination:
                                           $[ -------- ]

Cut-off Date: July 1, 2006                 Last Scheduled
                                           Distribution Date: May 25, 2037

First Distribution Date: August 25, 2006   Aggregate Initial Note
                                           Balance of all Class M-[ _ ]
                                           Notes:  $[ ________ ]

Pass-Through Rate:  Variable 2             CUSIP:  [ ________ ]

------------------
2  Subject to a Cap as Described in the Indenture

                                     A-2-2
<PAGE>
                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

      evidencing an ownership interest in distributions allocable to the Class
M-[ _ ] Notes with respect to a pool of conventional, sub-prime mortgage loans
and home equity revolving lines of credit formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Securities
Administrator 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 certifies that CEDE & CO. is the registered owner of the
ownership interest (the "Ownership Interest") evidenced by this Note (obtained
by dividing the Original Denomination of this Note by the aggregate Initial
Class Principal Balance of all Class M-[ _ ] Notes) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans and home equity
revolving lines of credit (the "Mortgage Loans") formed and sold by Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor"), and certain
other property held in trust for the benefit of Securityholders (collectively,
the "Trust Fund"). The Mortgage Loans are serviced by Wilshire Credit
Corporation and Countrywide Home Loans Servicing LP (the "Servicers") and are
secured by second liens on Mortgaged Properties. The Trust Fund was created
pursuant to an indenture (the "Indenture"), dated as of July 1, 2006, among
Merrill Lynch Mortgage Investors Trust, Series 2006-SL2, as issuing entity (the
"Issuing Entity"), LaSalle Bank National Association, as Securities
Administrator (the "Securities Administrator"), and Citibank, N.A., as indenture
trustee (the "Indenture Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Indenture.

            This Note is one of a duly authorized issue of Notes, designated as
Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Notes, Series
2006-SL2, Class M-[ _ ] (the "Class M-[ _ ] Notes") and is issued under and is
subject to the terms, provisions and conditions of the Indenture, to which
Indenture the Holder of this Note by virtue of the acceptance hereof assents and
by which Indenture such Holder is bound.

            The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

                                      A-2-3
<PAGE>
            Pursuant to the terms of the Indenture, the Securities Administrator
will distribute from funds in the Payment Account the amounts described in the
Indenture on the 25th day of each month or, if such 25th day is not a Business
Day, the Business Day immediately following (the "Distribution Date"),
commencing in August 2006. Such distributions will be made to the Person in
whose name this Note is registered at the close of business on the last Business
Day of the month preceding the month in which such payment is made.

            Distributions on this Note will be made either by check mailed to
the address of the person entitled to distributions as it appears on the Note
Register or, in the case of any noteholder that has so notified the Securities
Administrator in writing in accordance with the Indenture, by wire transfer in
immediately available funds to the account of such noteholder at a bank or other
depository institution having appropriate wire transfer facilities; provided,
however, that the final distribution in retirement of the notes will be made
only upon presentation and surrender of this Note at the office of the
Securities Administrator or such other address designated in writing by the
Securities Administrator. On each Distribution Date, a holder of this Note will
receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Notes.

            The Securities Administrator will maintain or cause to be maintained
a Note Register in which, subject to such reasonable regulations as it may
prescribe, the Securities Administrator will provide for the registration of
Notes and of transfers and exchanges of Notes. Upon surrender for registration
of transfer of any Note at any office or agency of the Securities Administrator,
or, if an Authenticating Agent has been appointed under the Indenture, the
Authenticating Agent, maintained for such purpose, the Securities Administrator,
will, subject to the limitations set forth in the Indenture, authenticate and
deliver, in the name of the designated transferee or transferees, a Note of a
like class and dated the date of authentication by the Authenticating Agent.
Notwithstanding the above, the final distribution on this Note will be made
after due notice by the Securities Administrator, of the pendency of such
distribution and only upon presentation and surrender of this Note at the office
or agency appointed by the Securities Administrator, for that purpose and
specified in such notice of final distribution.

            Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

            Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid for any purpose.

                                     A-2-4
<PAGE>
            IN WITNESS WHEREOF, the Owner Trustee has caused this Note to be
duly executed.

Dated:  August 8, 2006                   MERRILL LYNCH MORTGAGE INVESTORS
                                         TRUST, SERIES 2006-SL2

                                         WILMINGTON TRUST COMAPNY, as Owner
                                         Trustee

                                         By:_________________________
                                                Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Indenture.

LASALLE BANK NATIONAL ASSOCIATION, as
Securities Administrator

By:_________________________
      Authorized Signatory

                                     A-2-5
<PAGE>
                                 REVERSE OF NOTE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

            This Note is one of a duly authorized issue of Securities,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Indenture Trustee.

            Following the initial issuance of the Notes, the principal balance
of this Note will be different from the Original Denomination shown above.
Anyone acquiring this Note may ascertain its current principal balance by
inquiry of the Securities Administrator.

            The Holder, by its acceptance of this Note, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Securities Administrator nor the
Indenture Trustee is liable to the Holders for any amount payable under this
Note or the Indenture or, except as expressly provided in the Indenture, subject
to any liability under the Indenture.

            This Note does not purport to summarize the Indenture and reference
is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Indenture Trustee and the Securities Administrator.

            No service charge will be made to the Holder for any transfer or
exchange of the Note, but the Securities Administrator may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Note. Prior to due presentation
of a Note for registration of transfer, the Depositor, the Indenture Trustee and
the Securities Administrator may treat the person in whose name any Note is
registered as the owner of such Note and the Percentage Interest in the Trust
Fund evidenced thereby for the purpose of receiving distributions pursuant to
the Indenture and for all other purposes whatsoever, and none of the Depositor,
the Indenture Trustee or the Securities Administrator will be affected by notice
to the contrary.

            The Indenture may be amended from time to time by the Issuing
Entity, the Securities Administrator and the Indenture Trustee without the
consent of any of the Noteholders, to cure any ambiguity, to correct or
supplement any provisions therein which may be inconsistent with the other
provisions therein, to ensure continuing treatment of each REMIC included in the
Trust Fund as a REMIC, or to make any other provisions with respect to matters
or questions arising under the Indenture which are not materially inconsistent
with the provisions

                                     A-2-6
<PAGE>
of the Indenture, provided that such action does not, as evidenced by an Opinion
of Counsel, adversely affect in any material respect the interests of any
Noteholder.

            The Indenture may also be amended from time to time by the Issuing
Entity, the Securities Administrator and the Indenture Trustee, with the consent
of the Holders of Notes evidencing in the aggregate not less than 66 2/3% of the
Percentage Interests of each Class of Notes affected thereby, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of the
Holders of Notes of such Class; provided, however, that no such amendment may
(i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any Note
without the consent of the Holder of such Note, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Notes in a manner
other than as described in clause (i), without the consent of the Holders of
Notes of such Class evidencing 66 2/3% or more of the Voting Rights of such
Class or (iii) reduce the aforesaid percentages of Notes the Holders of which
are required to consent to any such amendment without the consent of the Holders
of all such Notes then outstanding.

            The Class M-[ _ ] Notes are issuable only in registerable form, in
minimum denominations of $25,000 in initial Class Principal Amount and in
integral multiples of $1 in excess thereof, registered in the name of the
nominee of the Clearing Agency, which shall maintain such Notes through its
book-entry facilities.

            For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

            The obligations and responsibilities of Issuing Entity, the
Securities Administrator and the Indenture Trustee under the Indenture shall
terminate upon the earlier of (a) the exercise by the Securities Administrator
of an Optional Termination; and (b) the later of (i) the maturity or other
liquidation (or any Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property and (ii) the
distribution to Securityholders of all amounts required to be distributed to
them pursuant to the Indenture, as applicable. In no event shall the trusts
created under the Indenture continue beyond the earlier of (i) the expiration of
21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late Ambassador of the United States to the Court of St. James's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

                                     A-2-7
<PAGE>
                              [FORM OF ASSIGNMENT]

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

--------------------------------------------------------------------------------

(Please Print or Type Name and Address of Assignee)

--------------------------------------------------------------------------------

the within Note, and all rights thereunder, and hereby does irrevocably
constitute and appoint

______________________Attorney to transfer the within Note on the books kept for
the registration thereof, with full power of substitution in the premises.

Dated:                                   NOTICE:  The signature to this
(Signature guaranty)                     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 whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                     A-2-8
<PAGE>
                                   EXHIBIT A-3

                              FORM OF CLASS B NOTES

      SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS NOTE REPRESENTS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

      THIS NOTE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE SPONSOR,
THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE CUSTODIANS REFERRED TO
BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS NOTE, THE REMIC REGULAR INTEREST
REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED
BY THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE
CUSTODIANS OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "1940 ACT") OR
ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT, DIRECTLY OR INDIRECTLY, BE
SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR SALE, UNLESS SUCH TRANSFER IS NOT
SUBJECT TO REGISTRATION UNDER THE ACT, THE 1940 ACT AND ANY APPLICABLE STATE
SECURITIES LAWS AND SUCH TRANSFER ALSO COMPLIES WITH THE OTHER PROVISIONS OF
SECTION 4.02 OF THE INDENTURE. IF THE NOTE IS A DEFINITIVE NOTE, NO TRANSFER OF
THIS NOTE SHALL BE MADE UNLESS THE SECURITIES ADMINISTRATOR SHALL HAVE RECEIVED,
IN FORM AND SUBSTANCE SATISFACTORY TO THE SECURITIES ADMINISTRATOR (A) AN
INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS FROM
THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE NOTES.

      THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH NOTE ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE ACT, (B) TO A PERSON IT REASONABLY
BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) TO AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN
RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D, OR (D) OUTSIDE THE UNITED
STATES TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED BY REGULATION S OF THE
ACT ("REGULATION S")) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION
S, AND IN

                                     A-3-1
<PAGE>
EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES
AND SUBJECT TO THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO
REQUIRE THE DELIVERY OF A NOTE OF TRANSFER IN THE FORM APPEARING IN THE
INDENTURE.

      EACH TRANSFEREE OF THIS NOTE WILL BE DEEMED TO REPRESENT EITHER (I) THAT
IT IS NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THE NOTES FOR, ON BEHALF
OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT
TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE"), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") OR (II) THAT IT IS A PLAN THAT IS NOT SUBJECT TO
ERISA OR SECTION 4975 OF THE CODE BUT THAT IS SUBJECT TO SIMILAR LAW, AND THAT
ITS ACQUISITION AND HOLDING OF THIS NOTE OR ANY INTEREST THEREIN, THROUGHOUT THE
PERIOD THAT IT HOLDS THIS NOTE, WILL NOT CONSTITUTE OR RESULT IN A VIOLATION OF
SIMILAR LAW, AND WILL NOT SUBJECT THE DEPOSITOR, THE INDENTURE TRUSTEE, THE
ISSUING ENTITY, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR, THE MASTER
SERVICER OR THE SERVICERS TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY
SUCH ENTITIES IN THE INDENTURE.

      FOLLOWING THE INITIAL ISSUANCE OF THE NOTES, THE PRINCIPAL BALANCE OF THIS
NOTE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW. ANYONE
ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

                                     A-3-2
<PAGE>
                               CLASS B-[ _ ] NOTE

                                   (RULE 144A)

Number:  06-SL2-B-[ _ ]                    Original Denomination:
                                           $[ -------- ]

Cut-off Date: July 1, 2006                 Last Scheduled
                                           Distribution Date:  May 25, 2037

First Distribution Date: August 25, 2006   Aggregate Initial Certificate
                                           Balance of all Class B-[ _ ]
                                           Notes:  $[ ________ ]

Pass-Through Rate: Variable 3              CUSIP:  [ ________ ]

------------------
3  Subject to a Cap as Described in the Indenture

                                     A-3-3
<PAGE>
                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

      evidencing an ownership interest in distributions allocable to the Class
B-[ _ ] Notes with respect to a pool of conventional, sub-prime mortgage loans
and home equity revolving lines of credit formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Securities
Administrator 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 certifies that CEDE & CO. is the registered owner of the
ownership interest (the "Ownership Interest") evidenced by this Note (obtained
by dividing the Original Denomination of this Note by the aggregate Initial
Class Principal Balance of all Class B-[ _ ] Notes) in certain distributions
with respect to a pool of conventional, sub-prime mortgage loans and home equity
revolving lines of credit (the "Mortgage Loans") formed and sold by Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor"), and certain
other property held in trust for the benefit of Securityholders (collectively,
the "Trust Fund"). The Mortgage Loans are serviced by Wilshire Credit
Corporation and Countrywide Home Loans Servicing LP (the "Servicers") and are
secured by second liens on Mortgaged Properties. The Trust Fund was created
pursuant to an indenture (the "Indenture"), dated as of July 1, 2006, among
Merrill Lynch Mortgage Investors Trust, Series 2006-SL2, as issuing entity (the
"Issuing Entity"), LaSalle Bank National Association, as Securities
Administrator (the "Securities Administrator"), and Citibank, N.A., as indenture
trustee (the "Indenture Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Indenture.

            This Note is one of a duly authorized issue of Notes, designated as
Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Notes, Series
2006-SL2, Class B-[ _ ] (the "Class B-[ _ ] Notes") and is issued under and is
subject to the terms, provisions and conditions of the Indenture, to which
Indenture the Holder of this Note by virtue of the acceptance hereof assents and
by which Indenture such Holder is bound.

            The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

                                      A-3-4
<PAGE>
            Pursuant to the terms of the Indenture, the Securities Administrator
will distribute from funds in the Payment Account the amounts described in the
Indenture on the 25th day of each month or, if such 25th day is not a Business
Day, the Business Day immediately following (the "Distribution Date"),
commencing in August 2006. Such distributions will be made to the Person in
whose name this Note is registered at the close of business on the last Business
Day of the month preceding the month in which such payment is made.

            Distributions on this Note will be made either by check mailed to
the address of the person entitled to distributions as it appears on the Note
Register or, in the case of any noteholder that has so notified the Securities
Administrator in writing in accordance with the Indenture, by wire transfer in
immediately available funds to the account of such noteholder at a bank or other
depository institution having appropriate wire transfer facilities; provided,
however, that the final distribution in retirement of the notes will be made
only upon presentation and surrender of this Note at the office of the
Securities Administrator or such other address designated in writing by the
Securities Administrator. On each Distribution Date, a holder of this Note will
receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Notes.

            The Securities Administrator will maintain or cause to be maintained
a Note Register in which, subject to such reasonable regulations as it may
prescribe, the Securities Administrator will provide for the registration of
Notes and of transfers and exchanges of Notes. Upon surrender for registration
of transfer of any Note at any office or agency of the Securities Administrator,
or, if an Authenticating Agent has been appointed under the Indenture, the
Authenticating Agent, maintained for such purpose, the Securities Administrator,
will, subject to the limitations set forth in the Indenture, authenticate and
deliver, in the name of the designated transferee or transferees, a Note of a
like class and dated the date of authentication by the Authenticating Agent.
Notwithstanding the above, the final distribution on this Note will be made
after due notice by the Securities Administrator, of the pendency of such
distribution and only upon presentation and surrender of this Note at the office
or agency appointed by the Securities Administrator, for that purpose and
specified in such notice of final distribution.

            Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof which further provisions shall for all purposes have
the same effect as if set forth at this place.

            Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Note shall not be entitled to
any benefit under the Indenture or be valid for any purpose.

                                     A-3-5
<PAGE>
            IN WITNESS WHEREOF, the Owner Trustee has caused this Note to be
duly executed.

Dated:  August 8, 2006                      MERRILL LYNCH MORTGAGE INVESTORS
                                            TRUST, SERIES 2006-SL2

                                            WILMINGTON TRUST COMAPNY, as Owner
                                            Trustee

                                            By:_________________________
                                                 Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to
in the within-mentioned Indenture.

LASALLE BANK NATIONAL ASSOCIATION, as
Securities Administrator

By:_________________________
      Authorized Signatory

                                     A-3-6
<PAGE>
                                 REVERSE OF NOTE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

            This Note is one of a duly authorized issue of Securities,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Indenture Trustee.

            Following the initial issuance of the Notes, the principal balance
of this Note will be different from the Original Denomination shown above.
Anyone acquiring this Note may ascertain its current principal balance by
inquiry of the Securities Administrator.

            The Holder, by its acceptance of this Note, agrees that it will look
solely to the Trust Fund and certain amounts resulting from credit enhancements
for payment hereunder and that neither the Securities Administrator nor the
Indenture Trustee is liable to the Holders for any amount payable under this
Note or the Indenture or, except as expressly provided in the Indenture, subject
to any liability under the Indenture.

            This Note does not purport to summarize the Indenture and reference
is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Indenture Trustee and the Securities Administrator.

            No service charge will be made to the Holder for any transfer or
exchange of the Note, but the Securities Administrator may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Note. Prior to due presentation
of a Note for registration of transfer, the Depositor, the Indenture Trustee and
the Securities Administrator may treat the person in whose name any Note is
registered as the owner of such Note and the Percentage Interest in the Trust
Fund evidenced thereby for the purpose of receiving distributions pursuant to
the Indenture and for all other purposes whatsoever, and none of the Depositor,
the Indenture Trustee or the Securities Administrator will be affected by notice
to the contrary.

            The Indenture may be amended from time to time by the Issuing
Entity, the Securities Administrator and the Indenture Trustee without the
consent of any of the Noteholders, to cure any ambiguity, to correct or
supplement any provisions therein which may be inconsistent with the other
provisions therein, to ensure continuing treatment of each REMIC included in the
Trust Fund as a REMIC, or to make any other provisions with respect to matters
or questions arising under the Indenture which are not materially inconsistent
with the provisions

                                     A-3-7
<PAGE>
of the Indenture, provided that such action does not, as evidenced by an Opinion
of Counsel, adversely affect in any material respect the interests of any
Noteholder.

            The Indenture may also be amended from time to time by the Issuing
Entity, the Securities Administrator and the Indenture Trustee, with the consent
of the Holders of Notes evidencing in the aggregate not less than 66 2/3% of the
Percentage Interests of each Class of Notes affected thereby, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of the
Holders of Notes of such Class; provided, however, that no such amendment may
(i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any Note
without the consent of the Holder of such Note, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Notes in a manner
other than as described in clause (i), without the consent of the Holders of
Notes of such Class evidencing 66 2/3% or more of the Voting Rights of such
Class or (iii) reduce the aforesaid percentages of Notes the Holders of which
are required to consent to any such amendment without the consent of the Holders
of all such Notes then outstanding.

            The Class B-[ _ ] Notes are issuable only in registerable form, in
minimum denominations of $25,000 in initial Class Principal Amount and in
integral multiples of $1 in excess thereof, registered in the name of the
nominee of the Clearing Agency, which shall maintain such Notes through its
book-entry facilities.

            For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

            The obligations and responsibilities of Issuing Entity, the
Securities Administrator and the Indenture Trustee under the Indenture shall
terminate upon the earlier of (a) the exercise by the Securities Administrator
of an Optional Termination; and (b) the later of (i) the maturity or other
liquidation (or any Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property and (ii) the
distribution to Noteholders of all amounts required to be distributed to them
pursuant to the Indenture, as applicable. In no event shall the trusts created
under the Indenture continue beyond the earlier of (i) the expiration of 21
years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late Ambassador of the United States to the Court of St. James's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

                                     A-3-8
<PAGE>
                              [FORM OF ASSIGNMENT]

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

--------------------------------------------------------------------------------

(Please Print or Type Name and Address of Assignee)

--------------------------------------------------------------------------------

the within Note, and all rights thereunder, and hereby does irrevocably
constitute and appoint

______________________Attorney to transfer the within Note on the books kept for
the registration thereof, with full power of substitution in the premises.

Dated:                                   NOTICE:  The signature to this
(Signature guaranty)                     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 whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

                                     A-3-9

<PAGE>
                                    EXHIBIT B

                     FORM OF INVESTOR REPRESENTATION LETTER

                                                            ______________, 20__

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois  60603

              Re:  Merrill Lynch Mortgage Investors Trust, Series 2006-SL2,
                   [Class B-1] [Class B-2] Notes

Ladies and Gentlemen:

      _________________________ (the "Purchaser") intends to purchase from
___________________________ (the "Seller") $_____________ Initial Certificate
Principal Balance Merrill Lynch Mortgage Investors Trust, Series 2006-SL2,
Mortgage Loan Asst-Backed Notes, Series 2006-SL2, [Class B-1] [Class B-2] (the
"Notes"), issued pursuant to the Indenture (the "Indenture"), dated as of August
8, 2006, among Merrill Lynch Mortgage Investors Trust, Series 2006-SL2 (the
"Issuing Entity"), LaSalle Bank National Association, as securities
administrator (the "Securities Administrator"), and Citibank, N.A., as indenture
trustee (the "Indenture Trustee"). All terms used herein and not otherwise
defined shall have the meanings set forth in the Indenture. The Purchaser hereby
certifies, represents and warrants to, and covenants with, the Depositor, the
Securities Administrator, the Indenture Trustee and the Issuing Entity that:

            (a) The Purchaser understands that (a) the Notes have not been and
will not be registered or qualified under the Securities Act of 1933, as amended
(the "Act") or any state securities law, (b) the Depositor is not required to so
register or qualify the Notes, (c) the Notes may be resold only if registered
and qualified pursuant to the provisions of the Act or any state securities law,
or if an exemption from such registration and qualification is available, (d)
the Indenture contains restrictions regarding the transfer of the Notes and (e)
the Notes will bear a legend to the foregoing effect.

            (b) The Purchaser is acquiring the Notes for its own account for
investment only and not with a view to or for sale in connection with any
distribution thereof in any manner that would violate the Act or any applicable
state securities laws.

                                      B-1
<PAGE>

            (c) The Purchaser is (a) a substantial, sophisticated institutional
investor having such knowledge and experience in financial and business matters,
and, in particular, in such matters related to securities similar to the Notes,
such that it is capable of evaluating the merits and risks of investment in the
Notes, (b) able to bear the economic risks of such an investment and (c) an
"accredited investor" within the meaning of Rule 501(a) promulgated pursuant to
the Act.

            (d) The Purchaser has been furnished with, and has had an
opportunity to review (a) a copy of the Indenture and (b) such other information
concerning the Notes, the Loans and the Depositor as has been requested by the
Purchaser from the Depositor or the Issuing Entity and is relevant to the
Purchaser's decision to purchase the Notes. The Purchaser has had Issuing Entity
questions arising from such review answered by the Depositor or the Issuing
Entity to the satisfaction of the Purchaser.

            (e) The Purchaser has not and will not nor has it authorized or will
it authorize any person to (a) offer, pledge, sell, dispose of or otherwise
transfer any Note, any interest in any Note or any other similar security to any
person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition of other transfer of any Note, any interest in any Note or any other
similar security from any person in any manner, (c) otherwise approach or
negotiate with respect to any Note, any interest in any Note or any other
similar security with any person in any manner, (d) make any general
solicitation by means of general advertising or in any other manner or (e) take
any other action, that (as to any of (a) through (e) above) would constitute a
distribution of any Note under the Act, that would render the disposition of any
Note a violation of Section 5 of the Act or any state securities law, or that
would require registration or qualification pursuant thereto. The Purchaser will
not sell or otherwise transfer any of the Notes, except in compliance with the
provisions of the Indenture.

            (f) The Purchaser hereby certifies, represents and warrants to, and
covenants with the Depositor, the Indenture Trustee, the Securities
Administrator and the Issuing Entity that the following statements in (i) or
(ii) are correct:

            (i) The Purchaser is not, and is not directly or indirectly
      acquiring the Rule 144A Securities for, on behalf of, or with any assets
      of, an employee benefit plan or other arrangement subject to Title I of
      the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
      a plan subject to Section 4975 of the Internal Revenue Code of 1986, as
      amended (the "Code"), or a plan or other arrangement subject to any
      provisions under any federal, state, local, non-U.S. or other laws or
      regulations that are substantively similar to the foregoing provisions of
      ERISA or the Code ("Similar Law") (a "Plan"); or

            (ii) The Purchaser is a plan that is not subject to ERISA or Section
      4975 of the Code but that is subject to Similar Law, and its acquisition
      and holding of such notes or any interest therein, throughout the period
      that it holds such notes, will not constitute or result in a violation of
      Similar Law, and will not subject the Depositor, the Indenture Trustee,
      the Issuing Entity, the Owner Trustee, the Securities Administrator, the
      Master

                                      B-2
<PAGE>

      Servicer or the Servicers to any obligation in addition to those
      undertaken by such entities in the Indenture.

      In addition, the Purchaser hereby certifies, represents and warrants to,
and covenants with, the Depositor, the Indenture Trustee, the Securities
Administrator and the Issuing Entity that the Purchaser will not transfer such
Notes to any Plan or person unless either such Plan or person meets the
requirements set forth in either (i) or (ii) above.

                                Very truly yours,

                                ------------------------------------------------
                                (Purchaser)

                                By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                      B-3
<PAGE>
                                    EXHIBIT C

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                            ______________, 20__

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois  60603

              Re: Merrill Lynch Mortgage Investors Trust, Series 2006-SL2,
                  [Class B-1] [Class B-2]

Ladies and Gentlemen:

      _________________________ (the "Purchaser") intends to purchase from
___________________________ (the "Seller") $_____________ Initial Certificate
Principal Balance Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Notes, Series 2006-SL2, [Class B-1] [Class B-2] (the "Notes"),
issued pursuant to the Indenture (the "Indenture"), dated as of August 8, 2006,
among Merrill Lynch Mortgage Investors Trust, Series 2006-SL2 (the "Issuing
Entity), LaSalle Bank National Association (the "Securities Administrator") and
Citibank, N.A., as indenture trustee (the "Indenture Trustee"). All terms used
herein and not otherwise defined shall have the meanings set forth in the
Indenture. The Purchaser hereby certifies, represents and warrants to, and
covenants with, the Depositor, the Securities Administrator, the Indenture
Trustee and the Issuing Entity that:

      Neither the Seller nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Note, any interest in
any Note or any other similar security to any person in any manner, (b) has
solicited any offer to buy or to accept a pledge, disposition or other transfer
of any Note, any interest in any Note or any other similar security from any
person in any manner, (c) has 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) has made any general solicitation by means of general
advertising or in any other manner, or (e) has taken any other action, that (as
to any of (a) through (e) above) would constitute a distribution of the Notes
under the Securities Act of 1933 (the "Act"), that would render the disposition
of any Note a violation of Section 5 of the Act or any state securities law, or
that would require registration or qualification pursuant thereto. The Seller
will not act, in any manner set forth in the foregoing

                                      C-1
<PAGE>

sentence with respect to any Note. The Seller has not and will not sell or
otherwise transfer any of the Notes, except in compliance with the provisions of
the Indenture.

                                   Very truly yours,

                                   ---------------------------------------------
                                   (Purchaser)

                                   By:
                                              ----------------------------------
                                   Name:
                                   Title:

                                      C-2
<PAGE>
                                    EXHIBIT D

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             DESCRIPTION OF RULE 144A SECURITIES, INCLUDING NUMBERS:

      ---------------------------------------------------------------------

      ---------------------------------------------------------------------

      ---------------------------------------------------------------------

      ---------------------------------------------------------------------

      The undersigned seller, as registered holder (the "Seller"), intends to
transfer the Rule 144A Securities described above to the undersigned buyer (the
"Buyer").

                  (1) In connection with such transfer and in accordance with
            the agreements pursuant to which the Rule 144A Securities were
            issued, the Seller hereby certifies the following facts: Neither the
            Seller nor anyone acting on its behalf has offered, transferred,
            pledged, sold or otherwise disposed of the Rule 144A Securities, any
            interest in the Rule 144A Securities or any other similar security
            to, or solicited any offer to buy or accept a transfer, pledge or
            other disposition of the Rule 144A Securities, any interest in the
            Rule 144A Securities or any other similar security from, or
            otherwise approached or negotiated with respect to the Rule 144A
            Securities, any interest in the Rule 144A Securities or any other
            similar security with, any person in any manner, or made any general
            solicitation by means of general advertising or in any other manner,
            or taken any other action, that would constitute a distribution of
            the Rule 144A Securities under the Securities Act of 1933, as
            amended (the "1933 Act"), or that would render the disposition of
            the Rule 144A Securities a violation of Section 5 of the 1933 Act or
            require registration pursuant thereto, and that the Seller has not
            offered the Rule 144A Securities to any person other than the Buyer
            or another "qualified institutional buyer" as defined in Rule 144A
            under the 1933 Act.

                  (2) The Buyer, pursuant to Section 4.02 of the Indenture (the
            "Indenture"), dated as of August 8, 2006, among Merrill Lynch
            Mortgage Investors Trust, Series 2006-SL2 (the "Issuing Entity"), La
            Salle Bank National Association, as securities administrator (the
            "Securities Administrator") and Citibank, N.A., as indenture trustee
            (the "Indenture Trustee") warrants and represents to, and covenants
            with, the Seller, the Indenture Trustee, the Depositor, the Issuing
            Entity, the Securities Administrator, the Master Servicer and each
            Servicer as follows:

            (i) The Buyer understands that the Rule 144A Securities have not
been registered under the 1933 Act or the securities laws of any state.

                                      D-1
<PAGE>

            (ii) The Buyer considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of
investment in the Rule 144A Securities.

            (iii) The Buyer has been furnished with all information regarding
the Rule 144A Securities that it has requested from the Seller, the Securities
Administrator or either Servicer.

            (iv) Neither the Buyer nor anyone acting on its behalf has offered,
transferred, pledged, sold or otherwise disposed of the Rule 144A Securities,
any interest in the Rule 144A Securities or any other similar security to, or
solicited any offer to buy or accept a transfer, pledge or other disposition of
the Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security from, or otherwise approached or negotiated with respect to the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Rule 144A
Securities under the 1933 Act or that would render the disposition of the Rule
144A Securities a violation of Section 5 of the 1933 Act or require registration
pursuant thereto, nor will it act, nor has it authorized or will it authorize
any person to act, in such manner with respect to the Rule 144A Securities.

            (v) The Buyer is a "qualified institutional buyer" as that term is
defined in Rule 144A under the 1933 Act and has completed either of the forms of
certification to that effect attached hereto as Annex I or Annex II. The Buyer
is aware that the sale to it is being made in reliance on Rule 144A. The Buyer
is acquiring the Rule 144A Securities for its own account or the accounts of
other qualified institutional buyers, understands that such Rule 144A Securities
may be resold, pledged or transferred only (i) to a person reasonably believed
to be a qualified institutional buyer that purchases for its own account or for
the account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the 1933 Act

            (vi) The Buyer (A) is not, and is not directly or indirectly
acquiring the Rule 144A Securities for, on behalf of, or with any assets of, an
employee benefit plan or other arrangement subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), a plan subject to
Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or a
plan or other arrangement subject to any provisions under any federal, state,
local, non-U.S. or other laws or regulations that are substantively similar to
the foregoing provisions of ERISA or the Code ("Similar Law") (a "Plan"), (B) is
a plan that is not subject to ERISA or Section 4975 of the Code but that is
subject to Similar Law, and its acquisition and holding of such notes or any
interest therein, throughout the period that it holds such notes, will not
constitute or result in a violation of Similar Law, and will not subject the
Depositor, the Indenture Trustee, the

                                      D-2
<PAGE>

      Issuing Entity, the Owner Trustee, the Securities Administrator, the
      Master Servicer or the Servicers to any obligation in addition to those
      undertaken by such entities in the Indenture.

      This document may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.

      IN WITNESS WHEREOF, each of the parties has executed this document as of
the date set forth below.

-------------------------------          ---------------------------------
Print Name of Seller                     Print Name of Purchaser

By:                                      By:
   ----------------------------             ------------------------------
Name:                                    Name:
Title:                                   Title:

Taxpayer Identification:                 Taxpayer Identification:

No.                                      No.

Date:                                    Date:
     --------------------------               ----------------------------

                                      D-3
<PAGE>
                              ANNEX I TO EXHIBIT D

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [FOR BUYERS OTHER THAN REGISTERED INVESTMENT COMPANIES]

      The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

                        (1) As indicated below, the undersigned is the
                  President, Chief Financial Officer, Senior Vice President or
                  other executive officer of the Buyer.

                        (2) In connection with purchases by the Buyer, the Buyer
                  is a "qualified institutional buyer" as that term is defined
                  in Rule 144A under the Securities Act of 1933 ("Rule 144A")
                  because (i) the Buyer owned and/or invested on a discretionary
                  basis $______________________ in securities (except for the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A) and (ii) the Buyer satisfies the
                  criteria in the category marked below.

      ___   Corporation, etc. The Buyer is a corporation (other than a bank,
            savings and loan association or similar institution), Massachusetts
            or similar business trust, partnership, or charitable organization
            described in Section 501(c)(3) of the Internal Revenue Code.

      ___   Bank. The Buyer (a) is a national bank or banking institution
            organized under the laws of any State, territory or the District of
            Columbia, the business of which is substantially confined to banking
            and is supervised by the State or territorial banking commission or
            similar official or is a foreign bank or equivalent institution, and
            (b) has an audited net worth of at least $25,000,000 as demonstrated
            in its latest annual financial statements, a copy of which is
            attached hereto.

      ___   Savings and Loan. The Buyer (a) is a savings and loan association,
            building and loan association, cooperative bank, homestead
            association or similar institution, which is supervised and examined
            by a State or Federal authority having supervision over any such
            institutions or is a foreign savings and loan association or
            equivalent institution and (b) has an audited net worth of at least
            $25,000,000 as demonstrated in its latest annual financial
            statements.

      ___   Broker-Dealer. The Buyer is a dealer registered pursuant to Section
            15 of the Securities Exchange Act of 1934.

                                      D-4
<PAGE>

      ___   Insurance Company. The Buyer is an insurance company whose primary
            and predominant business activity is the writing of insurance or the
            reinsuring of risks underwritten by insurance companies and which is
            subject to supervision by the insurance commissioner or a similar
            official or agency of a State or territory or the District of
            Columbia.

      ___   State or Local Plan. The Buyer is a plan established and maintained
            by a State, its political subdivisions, or any agency or
            instrumentality of the State or its political subdivisions, for the
            benefit of its employees.

      ___   ERISA Plan. The Buyer is an employee benefit plan within the meaning
            of Title I of the Employee Retirement Income Security Act of 1974,
            as amended ("ERISA").

      ___   Investment Adviser. The Buyer is an investment adviser registered
            under the Investment Advisers Act of 1940.

      ___   SBIC. The Buyer is a Small Business Investment Company licensed by
            the U.S. Small Business Administration under Section 301(c) or (d)
            of the Small Business Investment Act of 1958.

      ___   Business Development Company. The Buyer is a business development
            company as defined in Section 202(a)(22) of the Investment Advisers
            Act of 1940.

      ___   Trust Fund. The Buyer is a trust fund whose trustee is a bank or
            trust company and whose participants are exclusively (a) plans
            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, or (b) employee
            benefit plans within the meaning of Title I of the Employee
            Retirement Income Security Act of 1974, but is not a trust fund that
            includes as participants individual retirement accounts or H.R. 10
            plans.

                        (3) The term "securities" as used herein does not
                  include (i) securities of issuers that are affiliated with the
                  Buyer, (ii) securities that are part of an unsold allotment to
                  or subscription by the Buyer, if the Buyer is a dealer, (iii)
                  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.

                        (4) For purposes of determining the aggregate amount of
                  securities owned and/or invested on a discretionary basis by
                  the Buyer, the Buyer used the cost of such securities to the
                  Buyer and did not include any of the securities referred to in
                  the preceding paragraph. Further, in determining such
                  aggregate amount, the Buyer may have included

                                      D-5
<PAGE>
                  securities owned by subsidiaries of the Buyer, but only if
                  such subsidiaries are consolidated with the Buyer in its
                  financial statements prepared in accordance with generally
                  accepted accounting principles and if the investments of such
                  subsidiaries are managed under the Buyer's direction. However,
                  such securities were not included if the Buyer is a
                  majority-owned, consolidated subsidiary of another enterprise
                  and the Buyer is not itself a reporting company under the
                  Securities Exchange Act of 1934.

                        (5) The Buyer acknowledges that it is familiar with Rule
                  144A and understands that the seller to it and other parties
                  related to the Certificates are relying and will continue to
                  rely on the statements made herein because one or more sales
                  to the Buyer may be in reliance on Rule 144A.

___   ___    Will the Buyer be purchasing the Rule 144A Securities for the
Yes   No     Buyer's own account?

                        (6) If the answer to the foregoing question is "no", the
                  Buyer agrees that, in connection with any purchase of
                  securities sold to the Buyer for the account of a third party
                  (including any separate account) in reliance on Rule 144A, the
                  Buyer will only purchase for the account of a third party that
                  at the time is a "qualified institutional buyer" within the
                  meaning of Rule 144A. In addition, the Buyer agrees that the
                  Buyer will not purchase securities for a third party unless
                  the Buyer has obtained a current representation letter from
                  such third party or taken other appropriate steps contemplated
                  by Rule 144A to conclude that such third party independently
                  meets the definition of "qualified institutional buyer" set
                  forth in Rule 144A.

                        (7) The Buyer will notify each of the parties to which
                  this certification is made of any changes in the information
                  and conclusions herein. Until such notice is given, the
                  Buyer's purchase of Rule 144A Securities will constitute a
                  reaffirmation of this certification as of the date of such
                  purchase.

                                       Print Name of Buyer

                                       _________________________________________

                                       By:  ____________________________________
                                             Name:
                                             Title:
                                       Date:

                                      D-6
<PAGE>

                             ANNEX II TO EXHIBIT D

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [FOR BUYERS THAT ARE REGISTERED INVESTMENT COMPANIES]

      The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

                        (1) As indicated below, the undersigned is the
                  President, Chief Financial Officer or Senior Vice President of
                  the Buyer or, if the Buyer is a "qualified institutional
                  buyer" as that term is defined in Rule 144A under the
                  Securities Act of 1933 ("Rule 144A") because Buyer is part of
                  a Family of Investment Companies (as defined below), is such
                  an officer of the Adviser.

                        (2) In connection with purchases by Buyer, the Buyer is
                  a "qualified institutional buyer" as defined in SEC Rule 144A
                  because (i) the Buyer is an investment company registered
                  under the Investment Company Act of 1940, and (ii) as marked
                  below, the Buyer alone, or the Buyer's Family of Investment
                  Companies, owned at least $100,000,000 in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year. For purposes of
                  determining the amount of securities owned by the Buyer or the
                  Buyer's Family of Investment Companies, the cost of such
                  securities was used.

      ____  The Buyer owned $___________________ in securities (other than the
            excluded securities referred to below) as of the end of the Buyer's
            most recent fiscal year (such amount being calculated in accordance
            with Rule 144A).

      ____  The Buyer is part of a Family of Investment Companies which owned in
            the aggregate $______________ in securities (other than the excluded
            securities referred to below) as of the end of the Buyer's most
            recent fiscal year (such amount being calculated in accordance with
            Rule 144A).

                        (3) The term "Family of Investment Companies" as used
                  herein means two or more registered investment companies (or
                  series thereof) that have the same investment adviser or
                  investment advisers that are affiliated (by virtue of being
                  majority owned subsidiaries of the same parent or because one
                  investment adviser is a majority owned subsidiary of the
                  other).

                                      D-7
<PAGE>

                        (4) The term "securities" as used herein does not
                  include (i) securities of issuers that are affiliated with the
                  Buyer or are part of the Buyer's Family of Investment
                  Companies, (ii) 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.

                        (5) The Buyer is familiar with Rule 144A and understands
                  that each of the parties to which this certification is made
                  are relying and will continue to rely on the statements made
                  herein because one or more sales to the Buyer will be in
                  reliance on Rule 144A. In addition, the Buyer will only
                  purchase for the Buyer's own account.

                        (6) The undersigned will notify each of the parties to
                  which this certification is made of any changes in the
                  information and conclusions herein. Until such notice, the
                  Buyer's purchase of Rule 144A Securities will constitute a
                  reaffirmation of this certification by the undersigned as of
                  the date of such purchase.

                                       Print Name of Buyer

                                       By:  ____________________________________
                                             Name
                                             Title

                                       IF AN ADVISER:

                                       _________________________________________
                                       Print Name of Buyer

                                       Date:

                                      D-8
<PAGE>

                                   EXHIBIT E

                             FORM OF SWAP AGREEMENT

                                      E-1
<PAGE>

(BEAR STEARNS LOGO)

                                            BEAR STEARNS FINANCIAL PRODUCTS INC.
                                                              383 MADISON AVENUE
                                                        NEW YORK, NEW YORK 10179
                                                                    212-272-4009

DATE:                August 8, 2006

TO:                  LaSalle Bank National Association, not in its individual
                     capacity, but solely as Securities Administrator for
                     Merrill Lynch Mortgage Investors Trust, Series 2006-SL2
ATTENTION:           Megan Olson - Global Securities and Trust Services
TELEPHONE:           312-904-6709
FACSIMILE:           312-904-1368

TO:                  Merrill Lynch Mortgage Lending, Inc.
ATTENTION:           Angie Gioia
TELEPHONE:           212-449-5842
FACSIMILE:           212-449-7722

FROM:                Derivatives Documentation
TELEPHONE:           212-272-2711
FACSIMILE:           212-272-9857

RE:                  NOVATION CONFIRMATION

REFERENCE NUMBER(S): FXNSC8591-CXNS194423

The purpose of this letter is to confirm the terms and conditions of the
Novation Transaction entered into between the parties and effective from the
Novation Date specified below. This Novation Confirmation constitutes a
"Confirmation" as referred to in the New Agreement specified below.

1.   The definitions and provisions contained in the 2004 ISDA Novation
     Definitions (the "Definitions") and the terms and provisions of the 2000
     ISDA Definitions, as published by the International Swaps and Derivatives
     Association, Inc. and amended from time to time, are incorporated in this
     Novation Confirmation. In the event of any inconsistency between (i) the
     Definitions, (ii) the 2000 ISDA Definitions and/or (iii) the Novation
     Agreement and this Novation Confirmation, this Novation Confirmation will
     govern.

2.   The terms of the Novation Transaction to which this Novation Confirmation
     relates are as follows:

     Novation Trade Date:            August 8, 2006

     Novation Date:                  August 8, 2006

     Novated Amount:                 USD 156,655,202

     Transferor 1:                   Merrill Lynch Mortgage Lending, Inc.

     Transferor 2:                   Bear Stearns Capital Markets Inc.

     Transferee 1:                   Merrill Lynch Mortgage Investors Trust,
                                     Series 2006-SL2

     Transferee 2:                   Bear Stearns Financial Products Inc.

     New Agreement (between          The Master Agreement as defined in the
     Transferee 1 and Transferee 2): New Confirmation

3.   The terms of the Old Transaction to which this Novation Confirmation
     relates, for identification purposes, are as follows:

     Trade Date of Old Transaction:     August 2, 2006
     Effective Date of Old Transaction: January 25, 2007

<PAGE>

Reference Number: FXNSC8591-CXNS194423 - Novation Confirmation - DRAFT LaSalle
Bank National Association, not in its individual capacity, but solely as
Securities Administrator for Merrill Lynch Mortgage Investors Trust, Series
2006-SL2
August 8, 2006
Page 2 of 2

     Termination Date of Old Transaction: February 25, 2010

4.   The terms of the New Transaction to which this Novation Confirmation
     relates shall be as specified in the New Confirmation attached hereto as
     Exhibit A.

     Full First Calculation Period: Applicable

5.   Offices:

     Transferor 1: Not Applicable
     Transferor 2: Not Applicable
     Transferee 1: Not Applicable
     Transferee 2: Not Applicable

The parties confirm their acceptance to be bound by this Novation Confirmation
as of the Novation Date by executing a copy of this Novation Confirmation and
returning a facsimile of the fully-executed Novation Confirmation to
212-272-9857. The Transferor 1 and Transferor 2, by their respective execution
of a copy of this Novation Confirmation, each agrees to the terms of the
Novation Confirmation as it relates to the Old Transaction. The Transferee 1 and
Transferee 2, by their respective execution of a copy of this Novation
Confirmation, agrees to the terms of the Novation Confirmation as it relates to
the New Transaction. For inquiries regarding U.S. Transaction, please contact
SUSAN DONLON by telephone at 212-272-2364. For all other inquiries please
contact DERIVATIVES DOCUMENTATION by telephone at 353-1-402-6223.

BEAR STEARNS FINANCIAL PRODUCTS INC.    MERRILL LYNCH MORTGAGE LENDING, INC.

By:                                     By:
    ---------------------------------       ------------------------------------
Name:                                       As authorized agent or officer for
      -------------------------------       Merrill Lynch Mortgage Lending, Inc.
Title:                                  Name:
       ------------------------------         ----------------------------------
Date                                    Title:
     --------------------------------          ---------------------------------
                                        Date
                                             -----------------------------------

LASALLE BANK NATIONAL ASSOCIATION,      BEAR STEARNS CAPITAL MARKETS INC.
NOT INDIVIDUALLY, BUT SOLELY AS
SECURITIES ADMINISTRATOR ON BEHALF OF
MERRILL LYNCH MORTGAGE INVESTORS        By:
TRUST, SERIES 2006-SL2                      ---------------------------------
                                        Name:
                                              -------------------------------
By:                                     Title:
    ---------------------------------          ------------------------------
Name:                                   Date
      -------------------------------        --------------------------------
Title:
       ------------------------------
Date
     --------------------------------

lm

<PAGE>

(BEAR STEARNS LOGO)

                                            BEAR STEARNS FINANCIAL PRODUCTS INC.
                                                              383 MADISON AVENUE
                                                        NEW YORK, NEW YORK 10179
                                                                    212-272-4009

                                    EXHIBIT A

DATE:             August 8, 2006

TO:               LaSalle Bank National Association, not in its individual
                  capacity, but solely as Securities Administrator for Merrill
                  Lynch Mortgage Investors Trust, Series 2006-SL2

ATTENTION:        Megan Olson - Global Securities and Trust Services
TELEPHONE:        312-904-6709
FACSIMILE:        312-904-1368

FROM:             Derivatives Documentation
TELEPHONE:        212-272-2711
FACSIMILE:        212-272-9857

SUBJECT:          Fixed Income Derivatives Confirmation and Agreement

REFERENCE NUMBER: FXNSC8591

The purpose of this letter agreement ("Agreement") is to confirm the terms and
conditions of the Transaction entered into on the Trade Date specified below
(the "Transaction") between Bear Stearns Financial Products Inc. ("BSFP") and
Merrill Lynch Mortgage Investors Trust, Series 2006-SL2 as represented by
LaSalle Bank National Association, not in its individual capacity, but solely as
Securities Administrator ("Counterparty") under the Indenture, dated as of
August 8, 2006 among Merrill Lynch Mortgage Investors Trust, Series 2006-SL2, as
Issuing Entity, Citibank, N.A., as Indenture Trustee and LaSalle Bank National
Association, as Securities Administrator ("Indenture"). 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 "ISDA Form Master Agreement" (as defined below), as well as a
"Schedule" as referred to in the ISDA Form 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 "ISDA Form Master Agreement") but,
     rather, an ISDA Form Master Agreement shall be deemed to have been executed
     by you and us on the date we entered into the Transaction. In the event of
     any inconsistency between the provisions of this Agreement and the
     Definitions or the ISDA Form Master Agreement, this Agreement shall prevail
     for purposes of the Transaction. Terms capitalized but not defined herein
     shall have the meanings attributed to them in the Indenture.

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 2 of 17

2.   The terms of the particular Transaction to which this Confirmation relates
     are as follows:

<TABLE>
<S>                              <C>
Notional Amount:                 With respect to the Calculation Period, the
                                 amount set forth for such period as detailed in
                                 Schedule I attached hereto.

Trade Date:                      August 8, 2006

Effective Date:                  January 25, 2007

Termination Date:                February 25, 2010, provided, however, for the
                                 purposes of determining the Floating Amount to
                                 be paid in respect of the final Calculation
                                 Period, such date shall be subject to
                                 adjustment in accordance with the Business Day
                                 Convention.

FIXED AMOUNT:

   Fixed Rate Payer:             Counterparty

   Fixed Rate Payer Period
      End Dates:                 The 25th calendar day of each month during the
                                 Term of this Transaction, commencing February
                                 25, 2007 and ending on the Termination Date,
                                 with No Adjustment.

   Fixed Rate Payer Payment
      Dates:                     Early Payment shall be applicable. The Fixed
                                 Rate Payer Payment Dates shall be one Business
                                 Day preceding each Fixed Rate Payer Period End
                                 Date.

   Fixed Rate:                   5.59000%

   Fixed Rate Day Count
      Fraction:                  30/360

FLOATING AMOUNTS:

   Floating Rate Payer:          BSFP

   Floating Rate Payer Payment
      Dates:                     The 25th calendar day of each month during the
                                 Term of this Transaction, commencing February
                                 25, 2007 and ending on the Termination Date,
                                 subject to adjustment in accordance with the
                                 Business Day Convention.
</TABLE>

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 3 of 17

<TABLE>
<S>                              <C>
   Floating Rate Payer Payment
   Dates:                        Early Payment shall be applicable. The Floating
                                 Rate Payer Payment Dates shall be one Business
                                 Day preceding each Floating Rate Payer Period
                                 End Date.

   Floating Rate for initial
      Calculation Period:        To be determined.

   Floating Rate Option:         USD-LIBOR-BBA

   Designated Maturity:          One 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

Business Day Convention:         Modified Following
</TABLE>

3.   Additional Provisions:      1) Each party hereto is hereby advised and
                                 acknowledges that the other party has engaged
                                 in (or refrained from engaging in) substantial
                                 financial transactions and has taken (or
                                 refrained from taking) other material actions
                                 in reliance upon the entry by the parties into
                                 the Transaction being entered into on the terms
                                 and conditions set forth herein and in the
                                 Confirmation relating to such Transaction, as
                                 applicable and, in the case of the
                                 Counterparty, it has been directed under the
                                 Indenture to enter into this Transaction. This
                                 paragraph (1) shall be deemed repeated on the
                                 trade date of each Transaction.

                                 2) No later than each Floating Rate Payer
                                 Period End Date the Counterparty will make
                                 available on its website located at
                                 www.etrustee.net the current principal balance
                                 of the Certificates. No later than each Reset
                                 Date, BSFP shall

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 4 of 17

                                 deliver to LaSalle Bank National Association, a
                                 written confirmation containing the results of
                                 the calculations performed on each Reset Date
                                 and the amount which is to be paid to the
                                 Counterparty on the next Floating Rate Payer
                                 Payment Date.

4.   Provisions Deemed Incorporated in a Schedule to the ISDA Form Master
     Agreement:

1) The parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form
Master Agreement will apply to any Transaction.

2) Termination Provisions. For purposes of the ISDA Form Master Agreement:

(a) "Specified Entity" is not applicable to BSFP or Counterparty for any
purpose.

(b) "Specified Transaction" is not applicable to BSFP or Counterparty for any
purpose, and, accordingly, Section 5(a)(v) shall not apply to BSFP or
Counterparty.

(c) The "Cross Default" provisions of Section 5(a)(vi) will not apply to BSFP or
to Counterparty.

(d) The provisions of Section 5(a) (ii), (iii), and (iv) will not apply to
Counterparty.

(e) The "Bankruptcy" provision of Section 5(a)(vii)(2) will not apply to
Counterparty.

(f) The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will not apply
to BSFP or Counterparty.

(g) The "Automatic Early Termination" provision of Section 6(a) will not apply
to BSFP or to Counterparty.

(h) Payments on Early Termination. For the purpose of Section 6(e) of the ISDA
Form Master Agreement:

     (i)  Market Quotation will apply.

     (ii) The Second Method will apply.

(i) "Termination Currency" means United States Dollars.

3) Tax Representations.

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 5 of 17

     (a) Payer Representations. For purpose of Section 3(e) of the ISDA Form
     Master Agreement, each of BSFP and the Counterparty (as directed in the
     Indenture and without independent investigation) 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) of the ISDA Form Master Agreement) 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) of the ISDA Form Master Agreement;

               (ii) the satisfaction of the agreement contained in Section
               4(a)(i) or 4(a)(iii) of the ISDA Form Master Agreement and the
               accuracy and effectiveness of any document provided by the other
               party pursuant to Section 4(a)(i) or 4(a)(iii) of the ISDA Form
               Master Agreement; and

               (iii) the satisfaction of the agreement of the other party
               contained in Section 4(d) of the ISDA Form Master Agreement,
               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) of the
               ISDA Form Master Agreement by reason of material prejudice to its
               legal or commercial position.

     (b) Payee Representations. For the purpose of Section 3(f) of the ISDA Form
     Master Agreement, each of BSFP and the Counterparty make the following
     representations.

          The following representation will apply to BSFP:

               BSFP is a corporation organized under the laws of the State of
               Delaware and its U.S. taxpayer identification number is
               13-3866307.

          The following representation will apply to the Counterparty:

               LaSalle Bank National Association represents that it is the
               Securities Administrator under the Indenture.

4) [Reserved]

5) Documents to be Delivered. For the purpose of Section 4(a) of the ISDA Form
Master Agreement:

(1) Tax forms, documents, or certificates to be delivered are:

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 6 of 17

<TABLE>
<CAPTION>
PARTY REQUIRED TO DELIVER
DOCUMENT                    FORM/DOCUMENT/CERTIFICATE        DATE BY WHICH TO BE DELIVERED
-------------------------   -------------------------        -----------------------------
<S>                         <C>                              <C>
BSFP and the Counterparty   Any document required or         Promptly after the earlier of
                            reasonably requested to allow    (i) reasonable demand by
                            the other party to make          either party or (ii) learning
                            payments under this Agreement    that such form or document is
                            without any deduction or         required
                            withholding for or on the
                            account of any Tax or with
                            such deduction or withholding
                            at a reduced rate
</TABLE>

(2) Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO DELIVER                                                                    COVERED BY SECTION 3(D)
DOCUMENT                    FORM/DOCUMENT/CERTIFICATE        DATE BY WHICH TO BE DELIVERED        REPRESENTATION
-------------------------   -------------------------        -----------------------------   -----------------------
<S>                         <C>                              <C>                             <C>
BSFP and the Counterparty   Any documents required by the    Upon the execution and          Yes
                            receiving party to evidence      delivery of this Agreement
                            the authority of the             and such Confirmation
                            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
</TABLE>

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 7 of 17

<TABLE>
<CAPTION>
PARTY REQUIRED TO DELIVER                                                                    COVERED BY SECTION 3(D)
DOCUMENT                    FORM/DOCUMENT/CERTIFICATE        DATE BY WHICH TO BE DELIVERED        REPRESENTATION
-------------------------   -------------------------        -----------------------------   -----------------------
<S>                         <C>                              <C>                             <C>
BSFP and the Counterparty   A certificate of an authorized   Upon the execution and          Yes
                            officer of the party, as to      delivery of this Agreement
                            the incumbency and authority     and such Confirmation
                            of the respective officers of
                            the party signing this
                            Agreement, any relevant Credit
                            Support Document, or any
                            Confirmation, as the case may
                            be

BSFP                        Monthly rate set letter to       On or prior to each Floating    No
                            Counterparty                     Rate Payer Payment Date

Counterparty                An executed copy of the          Within 30 days after the date   No
                            Indenture.                       of this Agreement.
</TABLE>

6) Miscellaneous. Miscellaneous

(a)  Address for Notices: For the purposes of Section
     12(a) of the ISDA Form Master Agreement:

     Address for notices or communications to BSFP:

          Address:   383 Madison Avenue, New York, New York 10179
          Attention: DPC Manager
          Facsimile: 212-272-5823

     with a copy to:

          Address:   One Metrotech Center North, Brooklyn, New York 11201
          Attention: Derivative Operations - 7th Floor
          Facsimile: 212-272-1634

          (For all purposes)

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 8 of 17

     Address for notices or communications to the Counterparty:

          Address:   LaSalle Bank National Association
                     135 South LaSalle Street
                     Suite 1625
                     Chicago, IL 60603
          Attention: Megan Olson - Global Securities and Trust Services
          Reference: Trust Acct #723988.2
          Facsimile: 312-904-1368
          Phone:     312-904-6709

(b)  Process Agent. For the purpose of Section 13(c) of the ISDA Form Master
     Agreement:

               BSFP appoints as its Process Agent: Not Applicable

               The Counterparty appoints as its Process Agent: Not Applicable

(c)  Offices. The provisions of Section 10(a) of the ISDA Form Master will not
     apply to this Agreement; neither BSFP nor the Counterparty have any Offices
     other than as set forth in the Notices Section and BSFP agrees that, for
     purposes of Section 6(b) of the ISDA Form Master Agreement, it shall not in
     future have any Office other than one in the United States.

(d)  Multibranch Party. For the purpose of Section 10(c) of the ISDA Form Master
     Agreement:

     BSFP is not a Multibranch Party.

     The Counterparty is not a Multibranch Party.

(e)  Calculation Agent. The Calculation Agent is BSFP.

(f)  Credit Support Document. Not applicable for either BSFP or the
     Counterparty.

(g)  Credit Support Provider.

     BSFP: Not Applicable

     The Counterparty: Not Applicable

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 9 of 17

(h)  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 conflict of law provisions thereof, other than New York
     General Obligation Law Section 5-1401.

(i)  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.

(j)  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, waives any
     further notice of such monitoring or recording, and agrees to notify its
     officers and employees of such monitoring or recording.

(k)  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.

(l)  Securities Administrator Capacity and Liability Limitations It is expressly
     understood and agreed by the parties hereto that insofar as this
     Confirmation is executed by the Securities Administrator (i) this
     Confirmation is executed and delivered by LaSalle Bank National Association
     not in its individual capacity but solely as Securities Administrator under
     the Indenture referred to in this Confirmation in the exercise of the
     powers and authority conferred and invested in it thereunder pursuant to
     instructions set forth therein; (ii) any representations, undertakings and
     agreements made herein on behalf of the Counterparty are made and intended
     not as personal representations, undertakings and agreements by LaSalle
     Bank National Association but are made and intended for the purpose of
     binding only the Counterparty; (iii) nothing herein contained shall be
     construed and under no circumstances will create any liability on the
     Securities Administrator individually, or personally, be liable or
     obligated to perform any covenant either expressed or implied contained
     herein, all such liability, if any, being expressly waived by the parties
     who are signatories to this Agreement and by any person claiming by,
     through or under such parties and (iv) under no circumstances shall LaSalle
     Bank National Association in its individual capacity be personally liable
     for the payment of any indebtedness or expenses (including the Fixed
     Amount) or be personally liable for the breach or failure of any
     obligation, representation, warranty or covenant made or undertaken under
     this Confirmation.

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 10 of 17

(m)  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 S&P, Fitch and Moody's has been
     provided notice of the same and confirms in writing (including by facsimile
     transmission) after such notice is given that it will not downgrade,
     withdraw or otherwise modify its then-current rating of the Securities.

(n)  Proceedings. BSFP shall not institute against or cause any other person to
     institute against, or join any other person in instituting against, the
     Counterparty any bankruptcy, reorganization, arrangement, insolvency or
     liquidation proceedings, or other proceedings under any federal or state
     bankruptcy, dissolution or similar law for a period of one year and one day
     following payment in full of the Certificates.

7) "Affiliate" will have the meaning specified in Section 14 of the ISDA Form
Master Agreement, provided that BSFP shall not be deemed to have any Affiliates
for purposes of this Agreement, including for purposes of Section 6(b)(ii) of
the ISDA Form Master Agreement.

8) Section 3 of the ISDA Form 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. 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.

          (2) Evaluation and Understanding.

               (i) BSFP is acting for its own account and the Securities
          Administrator has been directed under the Indenture to enter into this
          Transaction as Securities Administrator on behalf of the Counterparty.
          Each Party has made its own independent decisions to enter into this
          Transaction and as to whether this Transaction is appropriate or
          proper for it based upon its own judgment and upon advice from such
          advisors as it has deemed necessary and, in the case of the Securities
          Administrator, it has been directed to enter into this Transaction
          under the Indenture. It is not relying on any communication (written
          or oral) of the other party as investment advice or as a
          recommendation to enter into this Transaction; it being understood
          that information and explanations related to the terms and conditions
          of this Transaction shall not be considered investment advice or a

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 11 of 17

          recommendation to enter into this Transaction. It has not received
          from the other party any assurance or guarantee as to the expected
          results of this Transaction.

               (ii) It is capable of evaluating and understanding (on its own
          behalf or through independent professional advice), and understands
          and accepts, the terms, conditions and risks of this Transaction. It
          is also capable of assuming, and assumes, the financial and other
          risks of this Transaction.

               (iii) The other party is not acting as a fiduciary or an advisor
          for it in respect of this Transaction.

          (3) Purpose. It is an "eligible swap participant" as such term is
          defined in Section 35.1(b)(2) of the regulations (17 C.F.R 35)
          promulgated under, and an "eligible contract participant" as defined
          in Section l(a)(12) of, the Commodity Exchange Act, as amended, and 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."

9) Set-off. 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. The provisions for Set-off set forth in Section 6(e) of the
ISDA Form Master Agreement shall not apply for purposes of this Transaction.

10) Additional Termination Events. The following Additional Termination Events
will apply:

(a) If a Ratings Event has occurred and BSFP has not, complied with Section 11
below, then an Additional Termination Event shall have occurred with respect to
BSFP and BSFP shall be the sole Affected Party with respect to such an
Additional Termination Event.

(b) If, upon the occurrence of a Swap Disclosure Event (as defined in Section
12(ii) of this Agreement), BSFP has not, within 10 days after such Swap
Disclosure Event complied with any of the provisions set forth in Section
12(iii) of this Agreement, then an Additional Termination Event shall have
occurred with respect to BSFP and BSFP shall be the sole Affected Party with
respect to such Additional Termination Event.

(c) If the Counterparty is unable to pay its Class A Notes or fails or admits in
writing its inability to pay its Class A Notes as they become due, then an
Additional Termination Event shall have occurred with respect to Counterparty
and Counterparty shall be the sole Affected Party with respect to such
Additional Termination Event.

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 12 of 17

(d) Without the prior written consent of BSFP, Counterparty shall not consent to
any amendment or supplemental agreement to the Indenture if such amendment or
supplemental agreement could reasonably be expected to have a material adverse
effect on the interests of BSFP. Counterparty will furnish to BSFP a copy of
each proposed and each executed amendment or supplemental agreement and copies
of any related Rating Agencies' confirmation therewith, if any. The failure by
Counterparty to comply with this clause (d) shall constitute an Additional
Termination Event hereunder, upon which Counterparty shall be the sole Affected
Party and all Transactions hereunder shall be Affected Transactions.

(e) Either the acceptance by the Securities Administrator of a bid in connection
with an Auction or notice by the Master Servicer that it will purchase the
Mortgage Loans pursuant to Section 11.18 of the Indenture shall constitute an
Additional Termination Event with respect to Counterparty with Counterparty as
the sole Affected Party with respect to such Additional Termination Event;
provided that notwithstanding anything in the first sentence of Section 6(d)(ii)
of the ISDA Form Master Agreement to the contrary, the amount calculated as
being due in respect of such Additional Termination Event shall be payable on
the Distribution Date upon which the final distribution is made to the
Securityholders.

11) Ratings Event. If a Ratings Event (as defined below) occurs with respect to
BSFP, then BSFP shall, at is own expense, (i) subject to the Rating Agency
Condition (as defined below), assign this Transaction hereunder to a third party
within thirty (30) days of such Ratings Event that meets or exceeds, or as to
which any applicable credit support provider meets or exceeds, the Approved
Ratings Thresholds (as defined below), (ii) deliver collateral, and an executed
ISDA Credit Support Annex, within thirty (30) days of such Ratings Event and
subject to each of Standard and Poor's Ratings Services, Inc. ("S&P's"), Fitch,
Inc. ("Fitch") and Moody's Investors Service, Inc. ("Moody's" and together with
Fitch and S&P, the "Rating Agencies") written confirmation that delivery of such
collateral in the context of such downgrade will not result in a withdrawal,
qualification or downgrade of the then current ratings assigned to the
Certificates, or (iii) any other action that satisfies the Rating Agency
Condition. For the avoidance of doubt, a downgrade of the rating on the
Certificates could occur in the event that BSFP does not post sufficient
collateral. For purposes of this Transaction, a "RATINGS EVENT" shall occur with
respect to BSFP, if its long-term unsecured and unsubordinated debt rating is
reduced below "AA-" by S&P, and "Aa3" by Moody's (including in connection with a
merger, consolidation or other similar transaction by BSFP) such ratings being
referred to herein as the "Approved Ratings Thresholds"', unless, within 30 days
after such withdrawal or downgrade, each of Moody's and S&P has reconfirmed the
rating of the Certificates, as applicable, which was in effect immediately prior
to such withdrawal or downgrade. 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 any of the
Rating Agencies then providing a rating of the Certificates and receive from the
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 Certificates. Notwithstanding the foregoing, in the event that BSFP's
long-term unsecured and unsubordinated debt rating is either (i) withdrawn or
(ii) reduced below "BBB-" by S&P, or its unsecured, short-term debt obligations

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 13 of 17

is reduced below "A-3" by S&P then, BSFP shall, within (10) days of such
reduction, at its own expense, and satisfying the Rating Agency Condition,
either (i) secure another entity to replace BSFP as party to this Agreement that
meets or exceeds the Approved Rating Thresholds on terms substantially similar
to this Agreement, (ii) obtain a guaranty acceptable to the Rating Agencies, of
another person with the Approved Rating Thresholds, to honor, BSFP's obligations
under this Agreement, or (iii) any other action that satisfies the Rating Agency
Condition. Failure to satisfy the foregoing shall constitute an Additional
Termination Event as defined by Section 5(b)(v) of the ISDA Form Master
Agreement, with BSFP as the sole Affected Party. Notwithstanding any of the
above downgrades, unless and until BSFP transfers the Transaction to a
replacement counterparty pursuant to the foregoing, BSFP will continue to
perform its obligations under the Transaction. BSFP's failure to comply with the
above downgrade provisions and requirements shall constitute the sole Additional
Termination Events as defined in Section 5(b)(v) of the ISDA Form Master
Agreement.

12) Compliance with Regulation AB.

(i) BSFP agrees and acknowledges that Merrill Lynch Mortgage Investors, Inc.
("MLMI") is required under Regulation AB under the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended (the "Exchange
Act") ("Regulation AB"), to disclose certain financial information regarding
BSFP or its group of affiliated entities, if applicable, depending on the
aggregate "significance percentage" of this Agreement and any other derivative
contracts between BSFP or its group of affiliated entities, if applicable, and
Counterparty, 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, MLMI requests from BSFP the applicable
financial information described in Item 1115 of Regulation AB (such request to
be based on a reasonable determination by MLMI, in good faith, that such
information is required under Regulation AB) (the "Swap Financial Disclosure").

(iii) Upon the occurrence of a Swap Disclosure Event, BSFP, at its own expense,
shall (a) provide to MLMI the Swap Financial Disclosure, (b) secure another
entity to replace BSFP as party to this Agreement on terms substantially similar
to this Agreement and subject to prior notification to the Rating Agencies,
which entity (or a guarantor therefor) meets or exceeds the Approved Rating
Thresholds (and which satisfies the Rating Agency Condition) and which entity is
able to comply with the requirements of Item 1115 of Regulation AB or (c) obtain
a guaranty of the BSFP's obligations under this Agreement from an affiliate of
the BSFP that is able to comply with the financial information disclosure
requirements of Item 1115 of Regulation AB, such that disclosure provided in
respect of the affiliate will satisfy any disclosure requirements applicable to
the BSFP, and cause such affiliate to provide Swap Financial Disclosure. If
permitted by Regulation AB, any required Swap Financial Disclosure may be
provided by incorporation by reference from reports filed pursuant to the
Exchange Act.

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 14 of 17

(iv) BSFP agrees that, in the event that BSFP provides Swap Financial Disclosure
to MLMI in accordance with Section 12(iii)(a) or causes its affiliate to provide
Swap Financial Disclosure to MLMI in accordance with Section 12(iii)(a), it will
indemnify and hold harmless MLMI, its respective directors or officers and any
person controlling MLMI, 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.

13) Third Party Beneficiary. MLMI shall be a third party beneficiary of this
Agreement.

14) Merrill Lynch Mortgage Lending, Inc. ("MLML") agrees and acknowledges that
amounts paid hereunder are not intended to benefit the holder of any class of
certificates rated by any rating agency if such holder is MLML or any of its
affiliates. If MLML or any of its affiliates receives any such amounts, it will
promptly remit (or, if such amounts are received by an affiliate of MLML, MLML
hereby agrees that it will cause such affiliate to promptly remit) such amounts
to the Securities Administrator, whereupon such Securities Administrator will
promptly remit such amounts to BSFP. MLML further agrees to provide notice to
BSFP upon any remittance to the Securities Administrator; such delivery will be
made to:

          Address:        383 Madison Avenue, New York, New York 10179
          Attention:      DPC Manager
          Facsimile:      212-272-5823

          with a copy to:

          Address:        One Metrotech Center North, Brooklyn, New York 11201
          Attention:      Derivative Operations - 7th Floor
          Facsimile:      212-272-1634

     NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF
     THE BEAR STEARNS COMPANIES INC. OTHER THAN BSFP IS AN OBLIGOR OR A CREDIT
     SUPPORT PROVIDER ON THIS AGREEMENT.

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 15 of 17

5.   Account Details and
     Settlement Information:     PAYMENTS TO BSFP:
                                 Citibank, N.A., New York
                                 ABA Number: 021-0000-89, for the account of
                                 Bear, Stearns Securities Corp.
                                 Account Number: 0925-3186, for further credit
                                 to Bear Stearns Financial Products Inc.
                                 Sub-account Number: 102-04654-1-3
                                 Attention: Derivatives Department

                                 PAYMENTS TO COUNTERPARTY:
                                 LaSalle Bank NA
                                 ABA Number: 071000505
                                 LaSalle CHGO/BNF LaSalle Trust
                                 Ref Trust Acct# 723988.2
                                 Attn: Megan Olson 312.904.6709

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 16 of 17

                                   SCHEDULE I

  (where for the purposes of (i) determining Floating Amounts, all such dates
 subject to adjustment in accordance with the Following Business Day Convention
 and (ii) determining Fixed Amounts, all such dates subject to No Adjustment.)

<TABLE>
<CAPTION>
FROM AND INCLUDING   TO BUT EXCLUDING   NOTIONAL AMOUNT (USD)
------------------   ----------------   ---------------------
<S>                  <C>                <C>
Effective Date           25-Feb-07           156,655,202
   25-Feb-07             25-Mar-07           144,382,371
   25-Mar-07             25-Apr-07           132,962,850
   25-Apr-07             25-May-07           122,360,475
   25-May-07             25-Jun-07           112,548,584
   25-Jun-07             25-Jul-07           103,787,657
   25-Jul-07             25-Aug-07            95,356,324
   25-Aug-07             25-Sep-07            87,772,168
   25-Sep-07             25-Oct-07            80,698,025
   25-Oct-07             25-Nov-07            74,182,292
   25-Nov-07             25-Dec-07            68,174,192
   25-Dec-07             25-Jan-08            62,711,519
   25-Jan-08             25-Feb-08            57,664,466
   25-Feb-08             25-Mar-08            53,022,192
   25-Mar-08             25-Apr-08            48,741,593
   25-Apr-08             25-May-08            44,804,408
   25-May-08             25-Jun-08            41,196,918
   25-Jun-08             25-Jul-08            37,852,977
   25-Jul-08             25-Aug-08            34,793,457
</TABLE>

<PAGE>

Reference Number: FXNSC8591
LaSalle Bank National Association, as Securities Administrator for Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2
August 8, 2006
Page 17 of 17

<TABLE>
<S>                  <C>                       <C>
   25-Aug-08             25-Sep-08             31,987,357
   25-Sep-08             25-Oct-08             29,415,806
   25-Oct-08             25-Nov-08             27,071,947
   25-Nov-08             25-Dec-08             27,071,947
   25-Dec-08             25-Jan-09             27,071,947
   25-Jan-09             25-Feb-09             25,631,039
   25-Feb-09             25-Mar-09             23,865,539
   25-Mar-09             25-Apr-09             22,247,953
   25-Apr-09             25-May-09             20,726,221
   25-May-09             25-Jun-09             19,369,242
   25-Jun-09             25-Jul-09             18,132,078
   25-Jul-09             25-Aug-09             16,963,877
   25-Aug-09             25-Sep-09             15,938,329
   25-Sep-09             25-Oct-09             15,014,869
   25-Oct-09             25-Nov-09             14,014,010
   25-Nov-09             25-Dec-09             12,902,203
   25-Dec-09             25-Jan-10             11,875,017
   25-Jan-10         Termination Date          10,940,764
</TABLE>
<PAGE>

                                   EXHIBIT F

                            ERISA TRANSFER AFFIDAVIT

      The transferee hereby represents and warrants either (i) that it is not,
and is not acquiring the Notes for, on behalf of, or with any assets of, an
employee benefit plan or other arrangement subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), a plan subject to
Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or a
plan or other arrangement subject to any provisions under any federal, state,
local, non-U.S. or other laws or regulations that are substantively similar to
the foregoing provisions of ERISA or the Code ("Similar Law") (a "Plan"), or
(ii)(A) solely in the case of the Notes other than the Class M-9 Note and Class
B Notes, it is a Plan, but its acquisition and holding of the notes, throughout
the period that it holds such notes, will not constitute or result in a
non-exempt prohibited transaction under ERISA or the Code, or a violation of
Similar Law, or (B) solely in the case of the Class M-9 Note and Class B Notes,
it is a plan that is not subject to ERISA or Section 4975 of the Code but that
is subject to Similar Law, and its acquisition and holding of such notes or any
interest therein, throughout the period that it holds such notes, will not
constitute or result in a violation of Similar Law, and in the case of both (A)
and (B) will not subject the Depositor, the Indenture Trustee, the Issuing
Entity, the Owner Trustee, the Securities Administrator, the Master Servicer or
the Servicers to any obligation in addition to those undertaken by such entities
in the Indenture.

                                       [TRANSFEREE]

                                       BY: _____________________________
                                       NAME:
                                       TITLE:

                                      F-1
<PAGE>

                                   EXHIBIT G

                  FORM OF INITIAL/INTERIM/FINAL CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Citibank, N.A.
388 Greenwich Street, 14th Floor
New York, New York 10013
Attn:  Structured Finance Agency & Trust, MLMI 2006-SL2

Re:   Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
      Securities, Series 2006-SL2

Ladies and Gentlemen:

      In accordance with the Indenture, dated as of August 8, 2006, among
Merrill Lynch Mortgage Investors Trust, Series 2006-SL2, as issuing entity,
LaSalle Bank National Association, as securities administrator and Citibank,
N.A., as indenture trustee (the "Indenture"), the undersigned, as Custodian,
hereby certifies that [, except as set forth in Schedule A hereto,] as to each
Mortgage Loan listed in the Mortgage Loan Schedule attached hereto (other than
any Mortgage Loan paid in full or listed on the attachment hereto) it has
reviewed the Mortgage File and the Mortgage Loan Schedule and has determined
that:

            (i) All documents in the Mortgage File required to be delivered to
      the Custodian pursuant to the Indenture and the documents if actually
      received by it under the Indenture are in its possession;

            (ii) In connection with each Mortgage Loan or Assignment thereof as
      to which documentary evidence of recording was not received on the Closing
      Date, it has received evidence of such recording; and

            (iii) Such documents have been reviewed by it and appear regular on
      their face and relate to such Mortgage Loan.

                                      G-1
<PAGE>
      The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond confirming (i) that the Mortgage Loan
number, the name of the Mortgagor, the street address (excluding zip code), the
mortgage interest rate at origination, the gross margin (if applicable), the
lifetime rate cap (if applicable), the periodic rate cap (if applicable), the
original principal balance, the first payment due date and the original maturity
date in each Mortgage File conform to the respective Mortgage Loan number and
name listed on the Mortgage Loan Schedule and (ii) the existence in each
Mortgage File of each of the documents listed in the Indenture. The Custodian
makes no representations or warranties as to the validity, legality,
recordability, sufficiency, enforceability, due authorization or genuineness of
any of the documents contained in each Mortgage Loan or the collectability,
insurability, effectiveness, priority, perfection or suitability of any such
Mortgage Loan.

      Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-referenced Indenture.

                                       [________________________],
                                       as Custodian

                                       By:
                                       Name:
                                       Title:

                                      G-2
<PAGE>

                                   APPENDIX A

                                  DEFINED TERMS

     Accepted Servicing Practices: With respect to any Mortgage Loan, those
mortgage servicing practices (including collection procedures) of prudent
mortgage banking institutions that service mortgage loans of the same type as
such Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located.

     Accepted Master Servicing Practices: With respect to any Mortgage Loan,
those mortgage servicing practices (including collection procedures) of prudent
mortgage banking institutions that master service mortgage loans of the same
type as such Mortgage Loan in the jurisdiction where the related Mortgaged
Property is located.

     Accountant's Attestation: As defined in Section 3.18 of the Wilshire
Servicing Agreement.

     Accrual Period: With respect to the Class A, Class M and Class B Notes and
the Class R Certificates, their Corresponding REMIC Regular Interests and the
Lower Tier REMIC Interests and any Payment Date, the period from and including
the immediately preceding Payment Date (or from the Closing Date, in the case of
the first Accrual Period) to and including the day prior to such Payment Date.
With respect to the Class G Certificates and the SWAP REMIC Regular Interests
and any Payment Date, the calendar month preceding such Payment Date. All
calculations of interest on the Class A, Class M and Class B Notes and the Class
R Certificates, their Corresponding REMIC Regular Interests and the Lower Tier
REMIC Interests (other than the Class LT-IO Interest) will be made on the basis
of the actual number of days elapsed in the related Accrual Period and a 360 day
year. All calculations of interest on the Class G Certificates and the SWAP
REMIC Regular Interests will be made on the basis of a 360 day year consisting
of twelve 30 day months.

     Act of Noteholder: As defined in Section 11.03 of the Indenture.

     Additional Balance: With respect to any HELOC, any future Draw (other than
a Draw representing an Excluded Amount) made by the related Mortgagor pursuant
to the related HELOC Agreement after the Cut-Off Date, together with all money
due or to become due in respect of such Draw.

     Additional Balance Advance Amount: With respect to any Payment Date, the
sum of (a) the excess, if any, of (i) the aggregate principal amount of
Additional Balances conveyed to the Trust Estate during the related Due Period,
over (ii) Principal Funds applied to purchase such Additional Balances and (b)
any Additional Balance Advance Amount remaining unreimbursed from a prior
Payment Date. The Additional Balance Advance Amount shall be evidenced by the
Class G Certificates. In no event shall Excluded Amounts constitute a part of
the Additional Balance Advance Amount.

     Additional Form 10-D Disclosure: As defined in Section 3.20 of the Wilshire
Servicing Agreement.

     Adjustment Date: With respect to each HELOC, the date set forth in the
related Mortgage Note on which the related Mortgage Interest Rate on the HELOC
is adjusted in accordance with the terms of the Mortgage Loan Agreement.

                                       A-1

<PAGE>

     Administrator: LaSalle Bank National Association and its successors or
assigns or any successor administrator appointed pursuant to the terms of the
Administration Agreement.

     Administration Agreement: The administration agreement dated as of the
Closing Date among the Depositor, the Owner Trustee, the Issuing Entity and the
Securities Administrator.

     Advance: The payment required to be made by a Servicer or the Master
Servicer, as applicable, with respect to any Payment Date pursuant to Section
4.01 of the Wilshire Servicing Agreement, the amount of any such Advance being
equal to the sum of the aggregate amount of all payments of principal and
interest (or, with respect to interest-only Mortgage Loans, payments of
scheduled interest) (net of the Servicing Fee) on the Mortgage Loans that were
due during the applicable Due Period and not received as of the close of
business on the related Determination Date, except as provided in Section 4.01
of the Wilshire Servicing Agreement, less the aggregate amount of any such
Delinquent payments that Wilshire or the Master Servicer, as applicable, has
determined would constitute a Non-Recoverable Advance were an advance to be made
with respect thereto; provided, however, that with respect to (i) any Mortgage
Loan that is not a first lien Mortgage Loan that is 150 days delinquent or more
(whether or not the Mortgage Loan has been converted to an REO Property) and
(ii) shortfalls due to bankruptcy proceedings or the application of the Relief
Act or similar laws, there will be no obligation to make advances and, provided
further, however, that with respect to any Mortgage Loan that has been converted
to an REO Property that is less than 150 days delinquent, the obligation to make
Advances shall only be to payments of interest (subject to the exceptions
described above and net of the related Servicing Fees), to be calculated after
taking into account rental income.

     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.

     Amortization Event: An Amortization Event will be in effect for any Payment
Date if any one of the following events is in effect with respect to such
Payment Date:

     i. Countrywide, as Servicer of the HELOCs, is in default under the terms of
the Servicing Agreements, such default remains unremedied, and another qualified
servicer has not been appointed to replace Countrywide;

     ii. the Issuing Entity is subject to regulation by the Securities and
Exchange Commission as an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, is insolvent or is determined to be
an association (or publicly traded partnership) taxable as a corporation for
federal income tax purposes;

     iii. the cumulative Realized Losses on the Mortgage Loans for the Payment
Date exceeds the percentage of the initial aggregate principal balance of the
HELOCs;

     iv. any of the parties has failed to observe or perform in a material
respect any covenant or agreement set forth in the Servicing Agreements or the
Indenture, which failure continues unremedied for a period of 90 days after
written notice thereof and which failure materially and adversely affects the
interests of the securityholders;

                                      A-2

<PAGE>

     v. any representation or warranty made in the Servicing Agreements, the
Indenture or the Mortgage Loan Sale Agreement shall prove to have been incorrect
in any material respect when made and shall continue to be incorrect for the
applicable cure period, after written notice and as a result of which the
interests of the securityholders are materially and adversely affected;

     vi. the Class Principal Balance of the Class G Certificate is equal to or
greater than 0.50% of the aggregate principal balance of the Mortgage Loans; or

     vii. the quotient (expressed as a percentage) of (1) the aggregate Realized
Losses on the HELOCs incurred from the Cut-off Date through the last day of the
calendar month preceding such Payment Date and (2) the aggregate principal
balance of the HELOCs as of the Cut-off Date exceeds the Required Loss
Percentage below:

<TABLE>
<CAPTION>
                                        PERCENTAGE OF INITIAL
       PAYMENT DATE                 AGGREGATE COLLATERAL BALANCE
       ------------                 ----------------------------
<S>                          <C>
August 2008-July 2009        1.55% with respect to August 2008, plus an
                             additional 1/12th of 1.95% for each month
                             thereafter
August 2009-July 2010        3.50% with respect to August 2009, plus an
                             additional 1/12th of 1.95% for each month
                             thereafter
August 2010-July 2011        5.45% with respect to August 2010, plus an
                             additional 1/12th of 1.55% for each month
                             thereafter
August 2011-July 2012        7.00% with respect to August 2011, plus an
                             additional 1/12th of 0.75% for each month
                             thereafter
August 2012 and thereafter   7.75%
</TABLE>

     After the occurrence of an Amortization Event with respect to a Payment
Date, any future Draws shall be Excluded Amounts and shall not constitute a part
of the Additional Balance Advance Amount and shall be the property of Merrill
Lynch Mortgage Investors, Inc. or its affiliate. Such Draws shall continue to be
Excluded Amounts until the next Payment Date on which an Amortization Event is
not in effect.

     Annual Statement as to Compliance: As defined in Section 3.17 of the
Wilshire Servicing Agreement.

     Applied Realized Loss Amount: With respect to any class of Subordinate
Notes and the Class C Certificates and as to any Payment Date, the sum of the
Realized Losses with respect to Mortgage Loans that have been applied in
reduction of the Class Principal Balance of such class.

     Appraised Value: With respect to any Mortgaged Property, the value thereof
as determined by a property valuation made for the originator of the Mortgage
Loan at the time of origination of the Mortgage Loan meeting the underwriting
requirements of the originator.

     Assessment of Compliance: As defined in Section 3.18 of the Wilshire
Servicing Agreement.

                                       A-3

<PAGE>

     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 sale of the Mortgage, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering Mortgages secured by Mortgaged Properties located in the same
jurisdiction.

     Auction Purchaser: As defined in Section 11.18 of the Indenture

     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 Issuing Entity, any officer of the
Owner Trustee, Seller or Administrator who is authorized to act in matters
relating to the Issuing Entity under the Trust Agreement or Administration
Agreement and who is identified on the list of Authorized Officers delivered to
the Securities Administrator and the Indenture Trustee on the Closing Date (as
such list may be modified or supplemented from time to time thereafter).

     Available Funds Cap: With respect to a Payment Date, the per annum rate
equal to the product of (i) 12, (ii) the quotient of (x) the total scheduled
interest on the Mortgage Loans based on the Net Mortgages Rates in effect on the
related Due Date, less any Net Swap Payments or Swap Termination Payments (other
than Defaulted Swap Termination Payments) owed to the Swap Counterparty for such
Payment Date, and (y) the aggregate Stated Principal Balance of the Mortgage
Loans as of the immediately preceding Payment Date, and (iii) a fraction, the
numerator of which is 30 and the denominator of which is the actual number of
days in the related Accrual Period.

     Balloon Amount: The balloon payment of the remaining outstanding principal
balance of a Mortgage Loan.

     Balloon Loan: A Mortgage Loan having an original term to stated maturity of
approximately 15 or 30 years and providing for level monthly payments generally
based on a 30 or 40 year amortization schedule with a payment of a Balloon
Amount due on such Mortgage Loan at its stated maturity.

     Bankruptcy Code: The United States Bankruptcy Code of 1978, as amended.

     Beneficial Owner: With respect to any Note, the Person who is the owner of
a security entitlement to 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).

     Book-Entry Notes: Notes held by the Depository as described in Section 4.06
of the Indenture. Initially, the Notes (other than the Class B-1 Notes and Class
B-2 Notes) shall be Book-Entry Notes.

     Bring Down Letter: Any of those certain letter agreements, each dated as of
August 8, 2006, between each related Originator and MLML.

                                      A-4

<PAGE>

     Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
legal holiday in the State of New York, Illinois, Oregon, California or Texas,
or (iii) a day on which banks in the State of New York, Illinois, Oregon,
California or Texas are authorized or obligated by law or executive order to be
closed.

     Certificates: Collectively, the Class G Certificates, Class R Certificates,
Class P Certificates and Class C Certificates.

     Certificate Distribution Account: The account or accounts created and
maintained by the Certificate Paying Agent pursuant to Section 3.10(c) of the
Trust Agreement. The Certificate Paying Agent will make all distributions on the
Certificates from money on deposit in the Certificate Distribution Account. The
Certificate Distribution Account shall be an Eligible Account.

     Certificate of Trust: The Certificate of Trust filed for the Owner Trust
pursuant to Section 3 810(a) of the Statutory Trust Statute, including all
amendments and restatements.

     Certificate Paying Agent: The paying agent appointed pursuant to Section
3.10 of the Trust Agreement.

     Certificate Percentage Interest: With respect to the Certificates, 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 the
Certificates and of transfers and exchanges of the Certificates.

     Certificate Registrar: Initially, the Securities Administrator, in its
capacity as Certificate Registrar, or any successor to the Securities
Administrator in such capacity.

     Certificateholder: The Person in whose name a Certificate is registered in
the Certificate Register except that, any Certificate registered in the name of
the Issuing Entity, the Owner Trustee, the Securities Administrator or the
Indenture Trustee or any Affiliate of the Owner Trustee, the Securities
Administrator or the Indenture Trustee shall be deemed not to be outstanding and
the registered holder will not be considered a Certificateholder or a holder for
purposes of giving any request, demand, authorization, direction, notice,
consent or waiver under the Indenture or the Trust Agreement provided that, in
determining whether the Indenture Trustee, the Securities Administrator or the
Owner Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Certificates that the
Indenture Trustee, the Securities Administrator or the Owner Trustee knows to be
so owned shall be so disregarded. 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, the Securities Administrator 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 Issuing Entity, any other obligor
upon the Certificates or any Affiliate of the Owner Trustee, the Securities
Administrator or the Indenture Trustee.

     Charged Off Mortgage Loan: With respect to any Payment Date, a defaulted
Loan that has not yet been liquidated, giving rise to a Realized Loss, on the
date on which the related Servicer determines, pursuant to the procedures set
forth in Section 3.07 of the Wilshire Servicing Agreement, that there will be
(i) no significant net recoveries with respect to such Mortgage Loan or (ii) the
potential net recoveries are anticipated to be an amount, determined by the
related Servicer in its good faith judgment and in light

                                       A-5

<PAGE>

of other mitigating circumstances, that is insufficient to warrant proceeding
through foreclosure or other liquidation of the related Mortgaged Property.

     Class: Collectively, all of the Notes bearing the same designation.

     Class A Principal Payment Amount:

          (1) with respect to any Payment Date prior to the related Stepdown
Date or as to which a Stepdown Trigger Event exists, 100% of the Principal
Payment Amount for such Payment Date; and

          (2) with respect to any Payment Date on or after the Stepdown Date and
as to which a Stepdown Trigger Event does not exist, the excess of (A) the Class
Principal Balance of the Class A Notes and the Class R Certificate immediately
prior to such Payment Date over (B) the lesser of (1) approximately 33.70% of
the aggregate Stated Principal Balance of the Mortgage Loans as of the end of
the immediately preceding Due Period and (2) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the end of the immediately
preceding Due Period over approximately $1,248,584; provided, however, that in
no event will the Senior Principal Payment Amount with respect to any Payment
Date exceed the aggregate Class Principal Balance of the Class A Notes and the
Class R Certificate.

     Class B Notes: The Class B-1 Notes and Class B-2 Notes.

     Class B-1 Notes: The Class B-1 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-3 to the Indenture.

     Class B-1 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the aggregate
Class Principal Balance of the Class A and Class M Notes has been reduced to
zero and a Stepdown Trigger Event exists, or, as long as a Stepdown Trigger
Event does not exist, the excess of (1) the sum of (A) the Class Principal
Balance of the Class A Notes (after taking into account payments of the Class A
Principal Payment Amount to the Class A Notes for such Payment Date), (B) the
Class Principal Balance of the Class M-1 Notes (after taking into account
payments of the Class M-1 Principal Payment Amount to the Class M-1 Notes for
such Payment Date), (C) the Class Principal Balance of the Class M-2 Notes
(after taking into account payments of the Class M-2 Principal Payment Amount to
the Class M-2 Notes for such Payment Date), (D) the Class Principal Balance of
the Class M-3 Notes (after taking into account payments of the Class M-3
Principal Payment Amount to the Class M-3 Notes for such Payment Date), (E) the
Class Principal Balance of the Class M-4 Notes (after taking into account
payments of the Class M-4 Principal Payment Amount to the Class M-4 Notes for
such Payment Date), (F) the Class Principal Balance of the Class M-5 Notes
(after taking into account payments of the Class M-5 Principal Payment Amount to
the Class M-5 Notes for such Payment Date), (G) the Class Principal Balance of
the Class M-6 Notes (after taking into account payments of the Class M-6
Principal Payment Amount to the Class M-6 Notes for such Payment Date), (H) the
Class Principal Balance of the Class M-7 Notes (after taking into account
payments of the Class M-7 Principal Payment Amount to the Class M-7 Notes for
such Payment Date), (I) the Class Principal Balance of the Class M-8 Notes
(after taking into account payments of the Class M-8 Principal Payment Amount to
the Class M-8 Notes for such Payment Date), (J) the Class Principal Balance of
the Class M-9 Notes (after taking into account payments of the Class M-9
Principal Payment Amount to the Class M-9 Notes for such Payment Date), and (K)
the Class Principal Balance of the Class B-1 Notes immediately prior to such
Payment Date over (2) the lesser of (A) approximately 83.90% of the aggregate

                                       A-6

<PAGE>

Stated Principal Balance of the Mortgage Loans as of such Payment Date and (B)
the excess of the aggregate Stated Principal Balance of the Mortgage Loans as of
as of such Payment Date over approximately $1,248,584. Notwithstanding the
above, (1) on any Payment Date prior to the Stepdown Date on which the aggregate
Class Principal Balance of the Class A and Class M Notes has been reduced to
zero, the Class B-1 Principal Payment Amount will equal the lesser of (A) the
outstanding Class Principal Balance of the Class B-1 Notes and (B) 100% of the
Principal Payment Amount remaining after any payments on the Class A and Class M
Notes and (2) in no event will the Class B-1 Principal Payment Amount with
respect to any Payment Date exceed the Class Principal Balance of the Class B-1
Notes.

     Class B-2 Notes: The Class B-2 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-3 to the Indenture.

     Class B-2 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the aggregate
Class Principal Balance of the Class A, Class M and Class B-1 Notes has been
reduced to zero and a Stepdown Trigger Event exists, or, as long as a Stepdown
Trigger Event does not exist, the excess of (1) the sum of (A) the Class
Principal Balance of the Class A Notes (after taking into account payments of
the Class A Principal Payment Amount to the Class A Notes for such Payment
Date), (B) the Class Principal Balance of the Class M-1 Notes (after taking into
account payments of the Class M-1 Principal Payment Amount to the Class M-1
Notes for such Payment Date), (C) the Class Principal Balance of the Class M-2
Notes (after taking into account payments of the Class M-2 Principal Payment
Amount to the Class M-2 Notes for such Payment Date), (D) the Class Principal
Balance of the Class M-3 Notes (after taking into account payments of Class M-3
Principal Payment Amount to the Class M-3 Notes for such Payment Date), (E) the
Class Principal Balance of the Class M-4 Notes (after taking into account
payments of the Class M-4 Principal Payment Amount to the Class M-4 Notes for
such Payment Date), (F) the Class Principal Balance of the Class M-5 Notes
(after taking into account payments of the Class M-5 Principal Payment Amount to
the Class M-5 Notes for such Payment Date), (G) the Class Principal Balance of
the Class M-6 Notes (after taking into account payments of the Class M-6
Principal Payment Amount to the Class M-6 Notes for such Payment Date), (H) the
Class Principal Balance of the Class M-7 Notes (after taking into account
payments of the Class M-7 Principal Payment Amount to the Class M-7 Notes for
such Payment Date), (I) the Class Principal Balance of the Class M-8 Notes
(after taking into account payments of the Class M-8 Principal Payment Amount to
the Class M-8 Notes for such Payment Date), (J) the Class Principal Balance of
the Class M-9 Notes (after taking into account payments of the Class M-9
Principal Payment Amount to the Class M-9 Notes for such Payment Date), (K) the
Class Principal Balance of the Class B-1 Notes (after taking into account
payments of the Class B-1 Principal Payment Amount to the Class B-1 Notes for
such Payment Date), and (L) the Class Principal Balance of the Class B-2 Notes
immediately prior to such Payment Date over (2) the lesser of (A) approximately
86.80% of the aggregate Stated Principal Balance of the Mortgage Loans as of
such Payment Date and (B) the excess of the aggregate Stated Principal Balance
of the Mortgage Loans as of such Payment Date over approximately $1,248,584.
Notwithstanding the above, (1) on any Payment Date prior to the Stepdown Date on
which the aggregate Class Principal Balance of the Class A, Class M and Class
B-1 Notes has been reduced to zero, the Class B-2 Principal Payment Amount will
equal the lesser of (A) the outstanding Class Principal Balance of the Class B-2
Notes and (B) 100% of the Principal Payment Amount remaining after any payments
on the Class A, Class M and Class B-1 Notes and (2) in no event will the Class
B-2 Principal Payment Amount with respect to any Payment Date exceed the Class
Principal Balance of the Class B-2 Notes.

     Class C Certificates: The Class C Certificates substantially in the form of
Exhibit A to the Trust Agreement.

                                       A-7

<PAGE>

     Class C Certificate Distribution Amount: The amounts payable on any Payment
Date to the Certificate Paying Agent under Section 3.06 of the Indenture for
payment to the Class C Certificates under the Trust Agreement.

     Class C Current Interest: As of any Payment Date, the interest accrued
during the related Accrual Period at the Class C Distributable Interest Rate on
a notional amount equal to the aggregate principal balance of the Lower Tier
REMIC Regular Interests immediately prior to such Payment Date, plus the
interest portion of any previous distributions on such Class that is recovered
as a voidable preference by a trustee in bankruptcy, less any Non-Supported
Interest Shortfall allocated on such Payment Date to the Class C Certificates.

     Class C Distributable Interest Rate: The excess, if any, of (a) the
weighted average of the interest rates on the Lower Tier REMIC Regular Interests
(other than the Class LT-IO Interest) over (b) two times the weighted average of
the interest rates on the Lower Tier REMIC Regular Interests (other than the
Class LT-IO Interest) (treating for purposes of this clause (b) the interest
rate on each of the Lower Tier REMIC Marker Interests as being capped at the
interest rate of the Corresponding REMIC Regular Interest of the Corresponding
Notes and treating the Class LTX Interest as being capped at zero). The averages
described in the preceding sentence shall be weighted on the basis of the
respective principal balances of the Lower Tier REMIC Regular Interests
immediately prior to any date of determination.

     Class C Interest Carry Forward Amount: With respect to the Class C
Certificate and each Payment Date, the excess of (A) the Current Interest for
such class with respect to prior Payment Dates over (B) the amount actually paid
to such class with respect to Current Interest and Class C Interest Carry
Forward Amount on such prior Payment Dates or added to the aggregate Class
Principal Balance of the Class C Certificates.

     Class G Certificates: The Class G Certificates substantially in the form of
Exhibit K to the Trust Agreement. The Class G Certificates are designated as the
sole class of "residual interest" in the SWAP REMIC.

     Class G Certificate Distribution Amount: The amounts payable on any Payment
Date to the Certificate Paying Agent under Section 3.06 of the Indenture for
payment to the Class G Certificates under the Trust Agreement.

     Class LTA Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Notes and an interest rate equal to the Net Rate.

     Class LTB-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTB-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LT-IO Interest: An uncertificated regular interest in the Lower Tier
REMIC with the characteristics set forth in the description of the Lower Tier
REMIC in the Preliminary Statement.

                                       A-8

<PAGE>

     Class LTM-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-4 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-5 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-6 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-7 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-8 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTM-9 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Note and an interest rate equal to the Net Rate.

     Class LTR Interest: The sole class of "residual interest" in the Lower Tier
REMIC.

     Class LTX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) the aggregate
Cut-off Date Loan Balance of the Mortgage Loans over (ii) the aggregate initial
principal balance of the Lower Tier REMIC Marker Interests and an interest rate
equal to the Net Rate.

     Class M 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 Notes: The Class M-1 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

                                       A-9

<PAGE>

     Class M-1 Principal Payment Amount: means, with respect to any Payment Date
on or after the Stepdown Date, 100% of the Principal Payment Amount if the
aggregate Class Principal Balance of the Class A Notes has been reduced to zero
and a Stepdown Trigger Event exists, or, as long as a Stepdown Trigger Event
does not exist, the excess of (1) the sum of (A) the aggregate Class Principal
Balance of the Class A Notes (after taking into account payments of the Class A
Principal Payment Amount to the Class A Notes for such Payment Date) and (B) the
Class Principal Balance of the Class M-1 Notes immediately prior to such Payment
Date over (2) the lesser of (A) approximately 43.80% of the aggregate Stated
Principal Balance of the Mortgage Loans as of such Payment Date and (B) the
excess of the aggregate Stated Principal Balance of the Mortgage Loans as of
such Payment Date over approximately $1,248,584. Notwithstanding the above, (1)
on any Payment Date prior to the Stepdown Date on which the aggregate Class
Principal Balance of the Class A Notes has been reduced to zero, the Class M-1
Principal Payment Amount will equal the lesser of (A) the outstanding Class
Principal Balance of the Class M-1 Notes and (B) 100% of the Principal Payment
Amount remaining after any payments on the Class A Notes and (2) in no event
will the Class M-1 Principal Payment Amount with respect to any Payment Date
exceed the Class Principal Balance of the Class M-1 Notes.

     Class M-2 Notes: The Class M-2 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-2 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A and Class M-1 Notes has been reduced
to zero and a Stepdown Trigger Event exists, or, as long as a Stepdown Trigger
Event does not exist, the excess of (1) the sum of (A) the aggregate Class
Principal Balance of the Class A Notes (after taking into account payments of
the Class A Principal Payment Amount to the Class A Notes for such Payment
Date), (B) the Class Principal Balance of the Class M-1 Notes (after taking into
account payments of the Class M-1 Principal Payment Amount to the Class M-1
Notes for such Payment Date) and (C) the Class Principal Balance of the Class
M-2 Notes immediately prior to such Payment Date over (2) the lesser of (A)
approximately 53.70% of the aggregate Stated Principal Balance of the Mortgage
Loans as of such Payment Date and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of such Payment Date over
approximately $1,248,584. Notwithstanding the above, (1) on any Payment Date
prior to the Stepdown Date on which the aggregate Class Principal Balance of the
Class A Notes and the Class M-1 Notes has been reduced to zero, the Class M-2
Principal Payment Amount will equal the lesser of (A) the outstanding Class
Principal Balance of the Class M-2 Notes and (B) 100% of the Principal Payment
Amount remaining after any payments on the Class A and Class M-1 Notes and (2)
in no event will the Class M-2 Principal Payment Amount with respect to any
Payment Date exceed the Class Principal Balance of the Class M-2 Notes.

     Class M-3 Notes: The Class M-3 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-3 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, Class M-1 and Class M-2 Notes has
been reduced to zero and a Stepdown Trigger Event exists, or, as long as a
Stepdown Trigger Event does not exist, the excess of (1) the sum of (A) the
aggregate Class Principal Balance of the Class A Notes (after taking into
account payments of the Class A Principal Payment Amount to the Class A Notes
for such Payment Date), (B) the Class Principal Balance of the Class M-1 Notes
(after taking into account payments of the Class M-1 Principal Payment Amount to
the Class M-1 Notes for such Payment Date), (C) the Class Principal Balance of
the Class M-2 Notes (after

                                      A-10

<PAGE>

taking into account payments of the Class M-2 Principal Payment Amount to the
Class M-2 Notes for such Payment Date) and (D) the Class Principal Balance of
the Class M-3 Notes immediately prior to such Payment Date over (2) the lesser
of (A) approximately 57.70% of the aggregate Stated Principal Balance of the
Mortgage Loans as of such Payment Date and (B) the excess of the aggregate
Stated Principal Balance of the Mortgage Loans as of such Payment Date over
approximately $1,248,584. Notwithstanding the above, (1) on any Payment Date
prior to the Stepdown Date on which the aggregate Class Principal Balance of the
Class A, Class M-1 and Class M-2 Notes has been reduced to zero, the Class M-3
Principal Payment Amount will equal the lesser of (A) the outstanding Class
Principal Balance of the Class M-3 Notes and (B) 100% of the Principal Payment
Amount remaining after any payments on the Class A, Class M-1 and Class M-2
Notes and (2) in no event will the Class M-3 Principal Payment Amount with
respect to any Payment Date exceed the Class Principal Balance of the Class M-3
Notes.

     Class M-4 Notes: The Class M-4 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-4 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, Class M-1, Class M-2 and Class M-3
Notes has been reduced to zero and a Stepdown Trigger Event exists, or, as long
as a Stepdown Trigger Event does not exist, the excess of (1) the sum of (A) the
aggregate Class Principal Balance of the Class A Notes (after taking into
account payments of the Class A Principal Payment Amount to the Class A Notes
for such Payment Date), (B) the Class Principal Balance of the Class M-1 Notes
(after taking into account payments of the Class M-1 Principal Payment Amount to
the Class M-1 Notes for such Payment Date), (C) the Class Principal Balance of
the Class M-2 Notes (after taking into account payments of the Class M-2
Principal Payment Amount to the Class M-2 Notes for such Payment Date), (D) the
Class Principal Balance of the Class M-3 Notes (after taking into account
payments of the Class M-3 Principal Payment Amount to the Class M-3 Notes for
such Payment Date) and (E) the Class Principal Balance of the Class M-4 Notes
immediately prior to such Payment Date over (2) the lesser of (A) approximately
62.50% of the aggregate Stated Principal Balance of the Mortgage Loans as of
such Payment Date and (B) the excess of the aggregate Stated Principal Balance
of the Mortgage Loans as of such Payment Date over approximately $1,248,584.
Notwithstanding the above, (1) on any Payment Date prior to the Stepdown Date on
which the aggregate Class Principal Balance of the Class A, Class M-1, Class M-2
and Class M-3 Notes has been reduced to zero, the Class M-4 Principal Payment
Amount will equal the lesser of (A) the outstanding Class Principal Balance of
the Class M-4 Notes and (B) 100% of the Principal Payment Amount remaining after
any payments on the Class A, Class M-1, Class M-2 and Class M-3 Notes and (2) in
no event will the Class M-4 Principal Payment Amount with respect to any Payment
Date exceed the Class Principal Balance of the Class M-4 Notes.

     Class M-5 Notes: The Class M-5 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-5 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, Class M-1, Class M-2, Class M-3 and
Class M-4 Notes has been reduced to zero and a Stepdown Trigger Event exists,
or, as long as a Stepdown Trigger Event does not exist, the excess of (1) the
sum of (A) the aggregate Class Principal Balance of the Class A Notes (after
taking into account payments of the Class A Principal Payment Amount to the
Class A Notes for such Payment Date), (B) the Class Principal Balance of the
Class M-1 Notes (after taking into account payments of the Class M-1 Principal
Payment

                                      A-11

<PAGE>

Amount to the Class M-1 Notes for such Payment Date), (C) the Class Principal
Balance of the Class M-2 Notes (after taking into account payments of the Class
M-2 Principal Payment Amount to the Class M-2 Notes for such Payment Date), (D)
the Class Principal Balance of the Class M-3 Notes (after taking into account
payments of the Class M-3 Principal Payment Amount to the Class M-3 Notes for
such Payment Date), (E) the Class Principal Balance of the Class M-4 Notes
(after taking into account payments of the Class M-4 Principal Payment Amount to
the Class M-4 Notes for such Payment Date) and (F) the Class Principal Balance
of the Class M-5 Notes immediately prior to such Payment Date over (2) the
lesser of (A) approximately 66.70% of the aggregate Stated Principal Balance of
the Mortgage Loans as of such Payment Date and (B) the excess of the aggregate
Stated Principal Balance of the Mortgage Loans as of such Payment Date over
approximately $1,248,584. Notwithstanding the above, (1) on any Payment Date
prior to the Stepdown Date on which the aggregate Class Principal Balance of the
Class A, Class M-1, Class M-2, Class M-3 and Class M-4 Notes has been reduced to
zero, the Class M-5 Principal Payment Amount will equal the lesser of (A) the
outstanding Class Principal Balance of the Class M-5 Notes and (B) 100% of the
Principal Payment Amount remaining after any payments on the Class A, Class M-1,
Class M-2, Class M-3 and Class M-4 Notes and (2) in no event will the Class M-5
Principal Payment Amount with respect to any Payment Date exceed the Class
Principal Balance of the Class M-5 Notes.

     Class M-6 Notes: The Class M-6 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-6 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, Class M-1, Class M-2, Class M-3,
Class M-4 and Class M-5 Notes has been reduced to zero and a Stepdown Trigger
Event exists, or, as long as a Stepdown Trigger Event does not exist, the excess
of (1) the sum of (A) the aggregate Class Principal Balance of the Class A Notes
(after taking into account payments of the Class A Principal Payment Amount to
the Class A Notes for such Payment Date), (B) the Class Principal Balance of the
Class M-1 Notes (after taking into account payments of the Class M-1 Principal
Payment Amount to the Class M-1 Notes for such Payment Date), (C) the Class
Principal Balance of the Class M-2 Notes (after taking into account payments of
the Class M-2 Principal Payment Amount to the Class M-2 Notes for such Payment
Date), (D) the Class Principal Balance of the Class M-3 Notes (after taking into
account payments of the Class M-3 Principal Payment Amount to the Class M-3
Notes for such Payment Date), (E) the Class Principal Balance of the Class M-4
Notes (after taking into account payments of the Class M-4 Principal Payment
Amount to the Class M-4 Notes for such Payment Date), (F) the Class Principal
Balance of the Class M-5 Notes (after taking into account payments of the Class
M-5 Principal Payment Amount to the Class M-5 Notes for such Payment Date) and
(G) the Class Principal Balance of the Class M-6 Notes immediately prior to such
Payment Date over (2) the lesser of (A) approximately 70.60% of the aggregate
Stated Principal Balance of the Mortgage Loans as of such Payment Date and (B)
the excess of the aggregate Stated Principal Balance of the Mortgage Loans as of
such Payment Date over approximately $1,248,584. Notwithstanding the above, (1)
on any Payment Date prior to the Stepdown Date on which the aggregate Class
Principal Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4 and
Class M-5 Notes has been reduced to zero, the Class M-6 Principal Payment Amount
will equal the lesser of (A) the outstanding Class Principal Balance of the
Class M-6 Notes and (B) 100% of the Principal Payment Amount remaining after any
payments on the Class A, Class M-1, Class M-2, Class M-3, Class M-4 and Class
M-5 Notes and (2) in no event will the Class M-6 Principal Payment Amount with
respect to any Payment Date exceed the Class Principal Balance of the Class M-6
Notes.

                                      A-12

<PAGE>

     Class M-7 Notes: The Class M-7 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-7 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5 and Class M-6 Notes has been reduced to zero and a Stepdown
Trigger Event exists, or, as long as a Stepdown Trigger Event does not exist,
the excess of (1) the sum of (A) the aggregate Class Principal Balance of the
Class A Notes (after taking into account payments of the Class A Principal
Payment Amount to the Class A Notes for such Payment Date), (B) the Class
Principal Balance of the Class M-1 Notes (after taking into account payments of
the Class M-1 Principal Payment Amount to the Class M-1 Notes for such Payment
Date), (C) the Class Principal Balance of the Class M-2 Notes (after taking into
account payments of the Class M-2 Principal Payment Amount to the Class M-2
Notes for such Payment Date), (D) the Class Principal Balance of the Class M-3
Notes (after taking into account payments of the Class M-3 Principal Payment
Amount to the Class M-3 Notes for such Payment Date), (E) the Class Principal
Balance of the Class M-4 Notes (after taking into account payments of the Class
M-4 Principal Payment Amount to the Class M-4 Notes for such Payment Date), (F)
the Class Principal Balance of the Class M-5 Notes (after taking into account
payments of the Class M-5 Principal Payment Amount to the Class M-5 Notes for
such Payment Date), (G) the Class Principal Balance of the Class M-6 Notes
(after taking into account payments of the Class M-6 Principal Payment Amount to
the Class M-6 Notes for such Payment Date) and (H) the Class Principal Balance
of the Class M-7 Notes immediately prior to such Payment Date over (2) the
lesser of (A) approximately 74.60% of the aggregate Stated Principal Balance of
the Mortgage Loans as of such Payment Date and (B) the excess of the aggregate
Stated Principal Balance of the Mortgage Loans as of such Payment Date over
approximately $1,248,584. Notwithstanding the above, (1) on any Payment Date
prior to the Stepdown Date on which the aggregate Class Principal Balance of the
Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6
Notes has been reduced to zero, the Class M-7 Principal Payment Amount will
equal the lesser of (A) the outstanding Class Principal Balance of the Class M-7
Notes and (B) 100% of the Principal Payment Amount remaining after any payments
on the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class
M-6 Notes and (2) in no event will the Class M-7 Principal Payment Amount with
respect to any Payment Date exceed the Class Principal Balance of the Class M-7
Notes.

     Class M-8 Notes: The Class M-8 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-8 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6 and Class M-7 Notes has been reduced to zero and
a Stepdown Trigger Event exists, or, as long as a Stepdown Trigger Event does
not exist, the excess of (1) the sum of (A) the aggregate Class Principal
Balance of the Class A Notes (after taking into account payments of the Class A
Principal Payment Amount to the Class A Notes for such Payment Date), (B) the
Class Principal Balance of the Class M-1 Notes (after taking into account
payments of the Class M-1 Principal Payment Amount to the Class M-1 Notes for
such Payment Date), (C) the Class Principal Balance of the Class M-2 Notes
(after taking into account payments of the Class M-2 Principal Payment Amount to
the Class M-2 Notes for such Payment Date), (D) the Class Principal Balance of
the Class M-3 Notes (after taking into account payments of the Class M-3
Principal Payment Amount to the Class M-3 Notes for such Payment Date), (E) the
Class Principal Balance of the Class M-4 Notes (after taking into account
payments of the Class M-4 Principal Payment Amount to the Class M-4

                                      A-13

<PAGE>

Notes for such Payment Date), (F) the Class Principal Balance of the Class M-5
Notes (after taking into account payments of the Class M-5 Principal Payment
Amount to the Class M-5 Notes for such Payment Date), (G) the Class Principal
Balance of the Class M-6 Notes (after taking into account payments of the Class
M-6 Principal Payment Amount to the Class M-6 Notes for such Payment Date), (H)
the Class Principal Balance of the Class M-7 Notes (after taking into account
payments of the Class M-7 Principal Payment Amount to the Class M-7 Notes for
such Payment Date) and (I) the Class Principal Balance of the Class M-8 Notes
immediately prior to such Payment Date over (2) the lesser of (A) approximately
78.10% of the aggregate Stated Principal Balance of the Mortgage Loans as of
such Payment Date and (B) the excess of the aggregate Stated Principal Balance
of the Mortgage Loans as of such Payment Date over approximately $1,248,584.
Notwithstanding the above, (1) on any Payment Date prior to the Stepdown Date on
which the aggregate Class Principal Balance of the Class A, Class M-1, Class
M-2, Class M-3, Class M-4, Class M-5, Class M-6 and Class M-7 Notes has been
reduced to zero, the Class M-8 Principal Payment Amount will equal the lesser of
(A) the outstanding Class Principal Balance of the Class M-8 Notes and (B) 100%
of the Principal Payment Amount remaining after any payments on the Class A,
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6 and Class M-7
Notes and (2) in no event will the Class M-8 Principal Payment Amount with
respect to any Payment Date exceed the Class Principal Balance of the Class M-8
Notes.

     Class M-9 Notes: The Class M-9 Mortgage Loan Asset-Backed Notes, Series
2006-SL2, in substantially the form set forth in Exhibit A-2 to the Indenture.

     Class M-9 Principal Payment Amount: With respect to any Payment Date on or
after the Stepdown Date, 100% of the Principal Payment Amount if the Class
Principal Balance of each class of Class A, 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 has been reduced
to zero and a Stepdown Trigger Event exists, or, as long as a Stepdown Trigger
Event does not exist, the excess of (1) the sum of (A) the aggregate Class
Principal Balance of the Class A Notes (after taking into account payments of
the Class A Principal Payment Amount to the Class A Notes for such Payment
Date), (B) the Class Principal Balance of the Class M-1 Notes (after taking into
account payments of the Class M-1 Principal Payment Amount to the Class M-1
Notes for such Payment Date), (C) the Class Principal Balance of the Class M-2
Notes (after taking into account payments of the Class M-2 Principal Payment
Amount to the Class M-2 Notes for such Payment Date), (D) the Class Principal
Balance of the Class M-3 Notes (after taking into account payments of the Class
M-3 Principal Payment Amount to the Class M-3 Notes for such Payment Date), (E)
the Class Principal Balance of the Class M-4 Notes (after taking into account
payments of the Class M-4 Principal Payment Amount to the Class M-4 Notes for
such Payment Date), (F) the Class Principal Balance of the Class M-5 Notes
(after taking into account payments of the Class M-5 Principal Payment Amount to
the Class M-5 Notes for such Payment Date), (G) the Class Principal Balance of
the Class M-6 Notes (after taking into account payments of the Class M-6
Principal Payment Amount to the Class M-6 Notes for such Payment Date), (H) the
Class Principal Balance of the Class M-7 Notes (after taking into account
payments of the Class M-7 Principal Payment Amount to the Class M-7 Notes for
such Payment Date), (I) the Class Principal Balance of the Class M-8 Notes
(after taking into account payments of the Class M-8 Principal Payment Amount to
the Class M-8 Notes for such Payment Date) and (J) the Class Principal Balance
of the Class M-9 Notes immediately prior to such Payment Date over (2) the
lesser of (A) approximately 81.00% of the aggregate Stated Principal Balance of
the Mortgage Loans as of such Payment Date and (B) the excess of the aggregate
Stated Principal Balance of the Mortgage Loans as of such Payment Date over
approximately $1,248,584. Notwithstanding the above, (1) on any Payment Date
prior to the Stepdown Date on which the aggregate Class Principal Balance of the
Class A, 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 has been reduced to zero, the Class M-

                                      A-14

<PAGE>

9 Principal Payment Amount will equal the lesser of (A) the outstanding Class
Principal Balance of the Class M-9 Notes and (B) 100% of the Principal Payment
Amount remaining after any payments on the Class A, 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 and (2) in
no event will the Class M-9 Principal Payment Amount with respect to any Payment
Date exceed the Class Principal Balance of the Class M-9 Notes.

     Class P Certificates: The Class P Certificates substantially in the form of
Exhibit L to the Trust Agreement.

     Class P Certificate Distribution Amount: The amounts payable on any Payment
Date to the Certificate Paying Agent under Section 3.06 of the Indenture for
payment to the Class P Certificates under the Trust Agreement.

     Class Principal Balance: With respect to any class of Notes and the Class
G, Class C and Class R Certificates and as of any Payment Date, the outstanding
principal balance of such class on the date of the initial issuance of the
securities as reduced, but not below zero, by (i) all amounts paid on previous
Payment Dates on such class on account of principal; and (ii) such class's share
of any Applied Realized Loss Amounts for previous Payment Dates. On each Payment
Date, after all payments of principal on such Payment Date, a portion of the
Class C Interest Carry Forward Amount in an amount equal to the excess of the
Overcollateralization Amount on such Payment Date over the Overcollateralization
Amount as of the preceding Payment Date (or, in the case of the first Payment
Date, the initial Overcollateralization Amount (based on the Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date)) will be added to the
aggregate Class Principal Balance of the Class C Certificates (on a pro rata
basis). Notwithstanding the foregoing, on any Payment Date relating to a Due
Period in which a Subsequent Recovery has been received by the related Servicer
or on any Payment Date on which amounts are to be paid in respect of principal
from the Swap Account pursuant to Section 3.06(II)(d)(5) in the Indenture, the
Class Principal Balance of any class of Notes or Certificates then outstanding
for which any Applied Realized Loss Amount has been allocated will be increased,
in order of seniority, by an amount equal to the lesser of (I) the Unpaid
Realized Loss Amount for such class of Notes or Certificates and (II) the total
of any Subsequent Recovery paid on such date to the securityholders and the
total of amounts to be paid on such date in respect of principal from the Swap
Account pursuant to Section 3.06(II)(d)(5) in the Indenture (reduced by the
amount of the increase in the Class Principal Balance of any more senior class
of Notes or Certificates pursuant to this sentence on such Payment Date).

     Class R Certificates: The Class R Certificates substantially in the form
set forth in Exhibit I to the Trust Agreement.

     Class R Certificate Distribution Amount: The amounts payable on any Payment
Date to the Certificate Paying Agent under Section 3.06 of the Indenture for
payment to the Class R Certificates under the Trust Agreement.

     Clearstream Luxembourg: Clearstream Banking, societe anonyme.

     Closing Date: August 8, 2006.

     Code: The Internal Revenue Code of 1986 (or any successor statute thereto)
and the rules and regulations promulgated thereunder, as the same may be amended
from time to time.

                                      A-15
<PAGE>

     Collateral: The meaning specified in the Granting Clause of the Indenture.

     Collateral Value: With respect to a Mortgage Loan the proceeds of which
were used to purchase the related mortgaged property, the lesser of (x) the
appraised value of such mortgaged property based on an appraisal made for the
originator by an independent fee appraiser at the time of the origination of the
related Mortgage Loan and (y) the sales price of such mortgaged property at such
time of origination and means, with respect to a Mortgage Loan the proceeds of
which were used to refinance an existing Mortgage Loan, the appraised value of
the mortgaged property based upon the appraisal obtained at the time of
refinancing.

     Collection Accounts: The accounts established by the Servicers for the
benefit of the Securityholders, into which each Servicer is required to deposit
or cause to be deposited certain payments described in the Servicing Agreements.

     Combined Loan-to-Value Ratio or CLTV: With respect to any Mortgage Loan in
a second lien position, (1) the sum of (A) the original principal balance (or
credit limit with respect to the HELOCs only) of such Mortgage Loan and (B) any
outstanding principal balance of the mortgage loan the lien on which is senior
to the lien on the Mortgage Loan (such sum calculated at the date of origination
of such Mortgage Loan in a second lien position) divided by (2) the Collateral
Value of the related mortgaged property.

     Commission: The Securities and Exchange Commission.

     Compensating Interest: For any Payment Date, the amount of the Servicing
Fee otherwise payable to Wilshire for the related month, which Wilshire is
obligated to deposit into the Collection Account for payment to securityholders
on that Payment Date, in an amount up to the amount of any shortfall in interest
payments resulting from prepayments in full received during the period from and
including the 15th day of the month preceding the Payment Date through and
including the last day of the month preceding the Payment Date with respect to
Mortgage Loans serviced by Wilshire; provided that any such deposit in reduction
of the Servicing Fee otherwise payable to Wilshire with respect to that Payment
Date will be limited to the product of (1) one-twelfth of 0.25% per annum and
(2) the aggregate Stated Principal Balance of the Mortgage Loans on the related
Payment Date.

     Cooperative: Euroclear Clearance Systems S.C., a Belgian cooperative
corporation.

     Co-op Loan: A Mortgage Loan secured by the stock allocated to a cooperative
unit in a residential cooperative housing corporation.

     Corporate Trust Office: With respect to the Securities Administrator,
Certificate Registrar, Certificate Paying Agent and Paying Agent, the principal
corporate trust office of the Securities Administrator and Note Registrar at
which at any particular time its corporate trust business shall be administered,
which office at the date of the execution of this instrument is located at 135
South LaSalle Street, Suite 1625, Chicago, Illinois 60603, Merrill Lynch
Mortgage Investors Trust-2006-SL2. With respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee at which at any particular
time its corporate trust business shall be administered, which office at the
date of the execution of the Trust Agreement is as set forth in the Trust
Agreement. With respect to the Indenture Trustee, the designated office of the
Indenture Trustee at which at any particular time its corporate trust business
with

                                      A-16

<PAGE>

respect to the Indenture shall be administered, which office at the date of the
execution of the Indenture is located at 388 Greenwich Street, 14th Floor, New
York, New York 10013.

     Corresponding Notes: With respect to the Class LTA Interest, the Class A
Notes and Class R Certificates. With respect to the Class LTM-1 Interest, the
Class M-1 Notes. With respect to the Class LTM-2 Interest, the Class M-2 Notes.
With respect to the Class LTM-3 Interest, the Class M-3 Notes. With respect to
the Class LTM-4 Interest, the Class M-4 Notes. With respect to the Class LTM-5
Interest, the Class M-5 Notes. With respect to the Class LTM-6 Interest, the
Class M-6 Notes. With respect to the Class LTM-7 Interest, the Class M-7 Notes.
With respect to the Class LTM-8 Interest, the Class M-8 Notes. With respect to
the Class LTM-9 Interest, the Class M-9 Notes. With respect to the Class LTB-1
Interest, the Class B-1 Notes. With respect to the Class LTB-2 Interest, the
Class B-2 Notes.

     Corresponding REMIC Regular Interest: For each Class of Notes or
Certificates, the interest in the Upper Tier REMIC listed on the same row in the
table entitled "Upper Tier REMIC" in the Preliminary Statement.

     Countrywide: Countrywide Home Loans Servicing LP.

     Countrywide Serviced Mortgage Loans: The Mortgage Loans identified as such
on the Mortgage Loan Schedule.

     Countrywide Servicing Agreement: The Flow Servicing Agreement, dated as of
August 8, 2006, by and between Merrill Lynch Credit Corporation, as owner, and
Countrywide, as servicer.

     Credit Limit: With respect to any HELOC, the maximum loan balance permitted
under the terms of the related Mortgage Loan Agreement.

     Credit Scores: Statistical credit scores obtained by many mortgage lenders
in connection with a loan application.

     Current Interest: With respect to each class of the Offered Securities, the
Class B Notes and the Class G Certificates and each Payment Date, the interest
accrued at the applicable Note Interest Rate or Pass-Through Rate for the
applicable Accrual Period on the Class Principal Balance of such class as of
such Payment Date (or in the case of the Class G Certificates, immediately
preceding such Payment Date) plus any amount previously paid with respect to
Current Interest or Interest Carry Forward Amounts for such class that is
recovered as a voidable preference by a trustee in bankruptcy less any
Prepayment Interest Shortfalls allocated to such class on such Payment Date.

     Custodial Agreement: Either of the Custodial Agreements between a
Custodian, the Master Servicer and the Indenture Trustee, relating to the
custody of the Mortgage Loans and the related Mortgage Loan Files.

     Custodian: Either of Wells Fargo Bank, N.A. or LaSalle Bank National
Association. Each Custodian shall act as agent on behalf of the Indenture
Trustee, and its on-going fees and expenses shall be paid by the Securities
Administrator or as otherwise specified therein.

     Cut-off Date: For any Mortgage Loan, July 1, 2006.

                                      A-17

<PAGE>

     Cut-off Date Loan Balance: With respect to any HELOC, the unpaid principal
balance thereof as of the close of business on the Business Day immediately
prior to the Cut-off Date. With respect to any Mortgage Loan that is not a
HELOC, the unpaid principal balance thereof as of the close of business on the
Cut-off Date.

     Defaulted Swap Termination Payment: Any payment required to be made by the
Issuing Entity to the Swap Counterparty pursuant to the Swap Agreement as a
result of an event of default under the Swap Agreement with respect to which the
Swap Counterparty is the defaulting party or a termination event (including a
Downgrade Termination Event) under that agreement (other than illegality or a
tax event) with respect to which the Swap Counterparty is the sole Affected
Party (as defined in the Swap Agreement).

     Deficient Valuation: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, provided, however, that
a Deficient Valuation shall not include any reduction that results in the
permanent forgiveness of the principal of a Mortgage Loan.

     Definitive Certificates: A physical certificate representing any
Certificate.

     Definitive Notes: The meaning specified in Section 4.08 of the Indenture.

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced with a
Replacement Mortgage Loan pursuant to the Wilshire Servicing Agreement.

     Delinquency Rate: With respect to any month, the fraction, expressed as a
percentage, the numerator of which is the aggregate outstanding balance of all
Loans 60 or more days delinquent (including all foreclosures and REOs but
excluding Liquidated Loans) as of the close of business on the last day of such
month and the denominator of which is the Aggregate Collateral Balance as of the
close of business on the last day of such month.

     Delinquent: A Mortgage Loan is "delinquent" if any payment due thereon is
not made pursuant to the terms of such Mortgage Loan by the close of business on
the day such payment is scheduled to be due. A Mortgage Loan is "30 days
delinquent" if such payment has not been received by the close of business on
the corresponding day of the month immediately succeeding the month in which
such payment was due, or, if there is no such corresponding day (e.g., as when a
30-day month follows a 31-day month in which a payment was due on the 31st day
of such month), then on the last day of such immediately succeeding month. With
respect to any Mortgage Loan due on any day other than the first day of the
month, such Mortgage Loan shall be deemed to be due on the first day of the
immediately succeeding month. (Similarly for "60 days delinquent," "90 days
delinquent" and so on.)

     Denomination: With respect to each Note, the amount set forth on the face
thereof as the "Initial Note Balance of this Note" or the "Initial Notional
Amount of this Note" or, if neither of the foregoing, the percentage interest
appearing on the face thereof. With respect to each Certificate the amount set
forth on the face thereof as the "Initial Certificate Balance of this
Certificate" or, if not the foregoing, the percentage interest appearing on the
face thereof.

     Deposit Date: With respect to each Payment Date, the Business Day
immediately preceding such Payment Date.

                                      A-18

<PAGE>

     Depositor: Merrill Lynch Mortgage Investors, Inc., or its successor in
interest.

     Depository or Depository Agency: The Depository Trust Company or a
successor appointed by the Securities Administrator with the approval of the
Issuing Entity. Any successor to the Depository shall be an organization
registered as a "clearing agency" pursuant to Section 17A of the Exchange Act
and the regulations of the Securities and Exchange Commission thereunder.

     Depository Participant: A Person for whom, from time to time, the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.

     Determination Date: With respect to any Payment Date, the 15th day (or if
such 15th day is not a Business Day, the Business Day immediately preceding such
15th day) of the month of the related Payment Date.

     Disqualified Organization: Any organization defined as a "disqualified
organization" under Section 860E(e)(5) of the Code, and if not otherwise
included, any of the following: (i) the United States, any State or political
subdivision thereof, any possession of the United States, or any agency or
instrumentality of any of the foregoing (other than an instrumentality which is
a corporation if all of its activities are subject to tax and, except for
Freddie Mac, a majority of its board of directors is not selected by such
governmental unit), (ii) a foreign government, any international organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated business taxable income), (iv)
rural electric and telephone cooperatives described in Section 1381(a)(2)(C) of
the Code, (v) any "electing large partnership," as defined in Section 775(a) of
the Code and (vi) any other Person so designated by the Securities Administrator
based upon an Opinion of Counsel that the holding of an Ownership Interest in a
Class R or Class G Certificate by such Person may cause the Trust Estate or any
Person having an Ownership Interest in any Class of Certificates (other than
such Person) or an interest in any Class of Notes to incur a liability for any
federal tax imposed under the Code that would not otherwise be imposed but for
the Transfer of an Ownership Interest in a Class R or Class G Certificate to
such Person. The terms "United States", "State" and "international organization"
shall have the meanings set forth in Section 7701 of the Code or successor
provisions.

     Downgrade Termination Event: An event whereby (x) the Swap Counterparty (or
its guarantor) ceases to have short term unsecured and/or long term debt ratings
at least equal to the levels specified in the Swap Agreement, and (y) at least
one of the following events has not occurred (except to the extent otherwise
approved by the rating agencies): within the time period specified in the Swap
Agreement with respect to such downgrade, (i) the Swap Counterparty has
transferred the Swap Agreement, in whole, but not in part, to a substitute swap
counterparty that satisfies the requirements set forth in the Swap Agreement,
subject to the satisfaction of the Rating Agency Condition, (ii) the Swap
Counterparty has collateralized its exposure to the Issuing Entity pursuant to
an ISDA Credit Support Annex, subject to the satisfaction of the Rating Agency
Condition; provided that such ISDA Credit Support Annex shall be made a credit
support document for the Swap Counterparty pursuant to an amendment to the Swap
Agreement, (iii) the Swap Counterparty has obtained the guaranty of a party that
satisfies the requirements set forth in the Swap Agreement or (iv) the Swap
Counterparty has taken any other action that satisfies the Rating Agency
Condition.

                                      A-19

<PAGE>

     Draw: With respect to any HELOC, a borrowing by the Mortgagor under the
related Mortgage Loan Agreement.

     Draw Period: With respect to each HELOC, the period commencing after the
date of origination of such Mortgage Loan, during which the related Mortgagor is
permitted to make Draws on such HELOC.

     DTC: The Depository Trust Company.

     Due Date: The day of the month on which the Monthly Payment is due on a
Mortgage Loan, exclusive of any days of grace.

     Due Period: With respect to the Mortgage Loans that are not HELOCs and any
Payment Date, the period beginning on the second day of the calendar month
preceding the calendar month in which such Payment Date occurs and ending on the
first day in the month in which such Payment Date occurs, and with respect to
the HELOCs and any Payment Date, the calendar month preceding the calendar month
in which such Payment Date occurs.

     Eligible Account: An account that is (1) maintained with a depository
institution the long-term unsecured debt obligations of which are rated by each
Rating Agency in one of its two highest rating categories, or (2) maintained
with the corporate trust department of a bank which (A) has a rating of at least
Baa3 or P-3 by Moody's and (B) is either the Depositor or the corporate trust
department of a national banking association or banking corporation which has a
rating of at least A-1 by S&P or F1 by Fitch, or (iii) an account or accounts
the deposits in which are fully insured by the FDIC, or (iv) an account or
accounts, acceptable to each Rating Agency without reduction or withdrawal of
the rating of any Class of Certificates, as evidenced in writing, by a
depository institution in which such accounts are insured by the FDIC (to the
limit established by the FDIC), the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
and acceptable to the Securities Administrator and each Rating Agency, the
Securityholders have a claim with respect to the funds in such account and a
perfected first security interest against any collateral (which shall be limited
to Permitted Investments) securing such funds that is superior to claims of any
other depositors or creditors of the depository institution with which such
account is maintained, or (v) maintained at an eligible institution whose
commercial paper, short-term debt or other short-term deposits are rated at
least A-1+ by S&P and F-1+ by Fitch, or (vi) maintained with a federal or state
chartered depository institution the deposits in which are insured by the FDIC
to the applicable limits and the short-term unsecured debt obligations of which
(or, in the case of a depository institution that is a subsidiary of a holding
company, the short-term unsecured debt obligations of such holding company) are
rated A-1 by S&P, F-1 by Fitch or Prime-1 by Moody's at the time any deposits
are held on deposit therein, or (vii) a segregated trust account or accounts
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 or (viii) otherwise acceptable to each Rating Agency, as
evidenced by a letter from each Rating Agency to the Securities Administrator.

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

     Escrow Account: As defined in Section 3.06 of the Wilshire Servicing
Agreement.

                                      A-20

<PAGE>

     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) the failure to pay the Current Interest on any Note on any Payment
Date;

     (ii) the failure by the Issuing Entity on the final maturity date to reduce
the Class Principal Balances of any Note then outstanding to zero;

     (iii) there occurs a default in the observance or performance of any
negative covenant, covenant or agreement of the Issuing Entity made in the
Indenture, or any representation or warranty of the Issuing Entity made in the
Indenture or in any certificate, note 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 which has a material adverse
effect on Securityholders, 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 Issuing Entity by the Indenture Trustee or to the Issuing Entity
and the Indenture Trustee by the Holders of at least 25% of the outstanding Note
Balance of the 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 Issuing Entity or any
substantial part of the Trust Estate 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 Issuing Entity or for any substantial
part of the Trust Estate, or ordering the winding-up or liquidation of the
Issuing Entity'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 Issuing Entity 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 Issuing Entity to the
entry of an order for relief in an involuntary case under any such law, or the
consent by the Issuing Entity to the appointment or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuing Entity or for any substantial part of the assets of the
Trust Estate, or the making by the Issuing Entity of any general assignment for
the benefit of creditors, or the failure by the Issuing Entity generally to pay
its debts as such debts become due, or the taking of any action by the Issuing
Entity in furtherance of any of the foregoing.

     Event of Liquidation: Following the occurrence of an Event of Default under
the Indenture, as evidenced by a written notice provided by the Indenture
Trustee to the Owner Trustee, the Depositor and the Issuing Entity that all
conditions precedent to the sale or other liquidation of the Trust Estate
pursuant to Section 5.04 of the Indenture have been satisfied.

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

                                      A-21

<PAGE>

     Excess Interest: On any Payment Date, for each Class of the Class A, Class
M and Class B Notes and the Class R Certificates, the excess, if any, of (1) the
amount of interest such Class of Notes or Certificates is entitled to receive on
such Payment Date over (2) the amount of interest such Class of Notes or
Certificates would have been entitled to receive on such Payment Date at an
interest rate equal to the REMIC Pass-Through Rate.

     Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (1) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (2) interest at the
Mortgage Rate from the Due Date as to which interest was last paid or advanced
to Securityholders (and not reimbursed to the Servicer) up to the Due Date in
the month in which such Liquidation Proceeds are required to be distributed on
the unpaid principal balance of such Liquidated Loan outstanding during each Due
Period as to which such interest was not paid or advanced.

     Excluded Amount: For any Payment Date for which an Amortization Event is in
effect, all Draws made by the Mortgagors under the HELOCs during the related Due
Period (or if an Amortization Event occurred during such Due Period, all Draws
subsequent to such Amortization Event). For any Payment Date, if any Excluded
Amounts are outstanding, the Interest Funds and Principal Funds (in each case,
without giving effect to the last proviso thereof) on the HELOCs for the
related Due Period (such amounts to be reduced by any expenses and other amounts
reimburseable to the Indenture Trustee, the Securities Administrator, the Master
Servicer, the Servicers and the Custodians) shall be allocated in respect of
Excluded Amounts based on a pro rata allocation between the unreimbursed
Excluded Amounts and the Stated Principal Balance of the HELOCs in proportion to
the respective amounts outstanding as of the end of the calendar month preceding
such Due Period. The aggregate amount of outstanding Excluded Amounts shall be
considered reduced by any payments to the Holder of the Class G Certificates
pursuant to Section 3.06(I) in respect of principal collections or reductions by
allocations of Realized Losses pursuant to Section 3.27.

     Exemption: PTE 90-29 (Exemption Application No. D-8012, 55 Fed. Reg. 21459
(1990)), as amended, granted by the U.S. Department of Labor to Merrill Lynch
and its affiliates, or any substantially similar administrative exemption
granted by the U.S. Department of Labor to an underwriter as amended.

     Extra Principal Payment Amount: With respect to any Payment Date, (1) prior
to the Stepdown Date, the excess, if any, of (A) the sum of (x) the aggregate
Class Principal Balance of the Notes and the Class G and Class R Certificates,
giving effect to the distribution of Principal Funds with respect to such
Payment Date, and (y) the sum of (i) $16,481,309 and (ii) the product of the
Class Principal Balance of the Class G Certificates and 66.30% over (B) the
aggregate Stated Principal Balance of the Mortgage Loans as of such Payment Date
and (2) on and after the Stepdown Date, the excess, if any, of (A) the sum of
(x) the aggregate Class Principal Balance of the Notes and the Class G and Class
R Certificates, giving effect to the distribution of the Principal Funds with
respect to such Payment Date, and (y) the greater of (a) 13.20% of the aggregate
Stated Principal Balance of the Mortgage Loans as of such Payment Date and (b)
$1,248,584 and (ii) the product of the Class Principal Balance of the Class G
Certificates and 66.30% over (B) the aggregate Stated Principal Balance of the
Mortgage Loans; provided, however, that if on any Payment Date a Stepdown
Trigger Event is in effect, the Extra Principal Payment Amount will not be
reduced to the applicable percentage of then-current Stated Principal Balance of
the Mortgage Loans (and will remain fixed at the applicable percentage of the
Stated Principal Balance of the Mortgage Loans as of the Due Date immediately
prior to the Stepdown Trigger Event) until the next Payment Date on which the
Stepdown Trigger Event is not in effect.

     Fannie Mae: Fannie Mae or any successor thereto.

                                      A-22

<PAGE>

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

     Final Maturity Date: May 25, 2037.

     Final Scheduled Payment Date: The Payment Date occurring in May 2037.

     Fitch: Fitch, Inc.

     Final Certification: The final certification delivered by the Custodian
pursuant to Section 3.01(b) of the Indenture in the form attached thereto as
Exhibit G.

     Fixed Rate Mortgage Loan: A Mortgage Loan with a fixed interest rate.

     Fixed Swap Payment: means, for each Payment Date, the product of (i) a per
annum rate as set forth in the table on Exhibit E to the Indenture, determined
on the basis of a 360-day year consisting of twelve 30-day months and (ii) the
notional balance for the related Payment Date as set forth in the schedule of
notional balances set forth in Exhibit E of the Indenture.

     Floating Rate Note Carryover: With respect to a Payment Date, in the event
that the Note Interest Rate or the Pass-Through Rate, as applicable, for a class
of Notes or the Class R Certificate is based upon the Available Funds Cap or the
Maximum Rate Cap, the excess of (1) the amount of interest that such class would
have been entitled to receive on such Payment Date had the applicable Note
Interest Rate or Pass-Through Rate for that class not been calculated based on
the Available Funds Cap or the Maximum Rate Cap, up to but not exceeding the
greater of (a) the Maximum Rate Cap or (b) the sum of (i) the Available Funds
Cap and (ii) the product of (A) a fraction, the numerator of which is 360 and
the denominator of which is the actual number of days in the related Accrual
Period and (B) the quotient obtained by dividing (I) an amount equal to any Net
Swap Payments owed by the Swap Counterparty for such Payment Date by (II) the
aggregate Stated Principal Balance of the Mortgage Loans as of the immediately
preceding Payment Date over (2) the amount of interest such class was entitled
to receive on such Payment Date based on the Available Funds Cap, together with
(A) the unpaid portion of any such excess from prior Payment Dates (and interest
accrued thereon at the then applicable Note Interest Rate or Pass-Through Rate
for such class, without giving effect to the Available Funds Cap or the Maximum
Rate Cap) and (B) any amount previously paid with respect to Floating Rate Note
Carryover for such class that is recovered as a voidable preference by a trustee
in bankruptcy.

     Floating Swap Payment: For the each Payment Date, the product of (i)
One-Month LIBOR for the related Payment Date determined based on a 360-day year
and the actual number of days in the Accrual Period and (ii) the notional
balance for the related Payment Date as set forth in the schedule of notional
balances set forth in the table on Exhibit E to the Indenture.

     Freddie Mac: Freddie Mac or any successor thereto.

     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. A Grant of any item of
Collateral 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 item of Collateral and all

                                      A-23

<PAGE>

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.

     Gross Margin: With respect to any HELOC, the fixed percentage amount set
forth in the related Mortgage Loan Agreement and the related Mortgage Loan
Schedule that is added to the Index on each Adjustment Date in accordance with
the terms of the related Mortgage Loan Agreement to determine the new Mortgage
Interest Rate for such Mortgage Loan.

     HELOC: An individual adjustable rate, residential home equity revolving
line of credit secured by a first or second deed of trust or mortgage, including
any Additional Balances with respect thereto, each HELOC sold and subject to
this Agreement being identified on the Mortgage Loan Schedule and being
identified as a HELOC.

     HELOC Agreement: With respect to any HELOC, the credit line account
agreement executed by the related Mortgagor and any amendment or modification
thereof.

     Holder: Any of the Noteholders or Certificateholders.

     HUD: The United States Department of Housing and Urban Development and any
successor thereto.

     Indemnified Parties: The meaning specified in Section 7.02 of the Trust
Agreement.

     Indenture: The indenture dated as of the Closing Date among the Issuing
Entity, as issuer, the Indenture Trustee, as indenture trustee, and the
Securities Administrator, as securities administrator.

     Indenture Trustee: Citibank, N.A., 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 Issuing Entity, any other obligor on the Notes,
the Sponsor, the Issuing Entity, 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 Issuing Entity, any such other
obligor, the Sponsor, the Issuing Entity, the Depositor or any Affiliate of any
of the foregoing Persons and (iii) is not connected with the Issuing Entity, any
such other obligor, the Sponsor, 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
Securities Administrator and/or the Indenture Trustee under the circumstances
described in, and otherwise complying with, the applicable requirements of
Section 11.01 of the Indenture, made by an Independent appraiser or other expert
appointed by an Issuer Order, 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.

                                      A-24

<PAGE>

     Index: With respect to any HELOC, the index identified on the Mortgage Loan
Schedule and set forth in the related Mortgage Note for the purpose of
calculating the Mortgage Interest Rate thereon.

     Initial Certification: The initial certification delivered by the Custodian
pursuant to Section 3.01 of the Indenture in the form attached thereto as
Exhibit G.

     Initial Note Balance: With respect to the (i) Class A Notes, $174,177,000
(ii) the Class M-1 Notes, $12,610,000, (iii) the Class M-2 Notes, $12,360,000,
(iv) the Class M-3 Notes $4,994,000, (v) the Class M-4 Notes, $5,993,000, (vi)
the Class M-5 Notes, $5,244,000, (vii) Class M-6 Notes, $4,869,000, (viii) the
Class M-7 Notes, $4,994,000, (ix) the Class M-8 Notes, $4,370,000, (x) the Class
M-9 Notes, $3,620,000, (xi) the Class B-1 Notes, $3,620,000 and (xii) the Class
B-2 Notes, $3,620,000.

     Initial Optional Redemption Date: means the first Payment Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (or if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) is less
than or equal to 10% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date.

     Insolvency Event: With respect to a specified Person, (a) the filing of a
decree or order for relief by a court having jurisdiction in the premises in
respect of such Person or any substantial part of its property in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for such Person or for any substantial
part of its property, or ordering the winding-up or liquidation of such Person's
affairs, and such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or the consent by such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person in writing (as to which a Responsible Officer of the Indenture
Trustee shall have received notice) of its inability to pay its debts generally,
or the adoption by the Board of Directors or managing member of such Person of a
resolution which authorizes action by such Person in furtherance of any of the
foregoing.

     Insurance Proceeds: Proceeds paid by any insurer pursuant to any insurance
policy covering a Mortgage Loan which are required to be remitted to the related
Servicer, net of any component thereof (i) covering any expenses incurred by or
on behalf of the related Servicer in connection with obtaining such proceeds,
(ii) that is applied to the restoration or repair of the related Mortgaged
Property, (iii) released to the Mortgagor in accordance with the related
Servicer's normal servicing procedures or (iv) required to be paid to any holder
of a mortgage senior to such Mortgage Loan.

     Interest Carry Forward Amount: means, with respect to each class of the
Notes, the Class G Certificates and the Class R Certificates and each Payment
Date, the sum of (1) the excess of (A) Current Interest for such class with
respect to prior Payment Dates (excluding any Floating Rate Note Carryover for
such class, if applicable) over (B) the amount actually paid to such class with
respect to Current Interest and Interest Carry Forward Amount on such prior
Payment Dates and (2) interest on such excess (to the extent permitted by
applicable law) at the applicable Note Interest Rate or Pass-Through Rate for
the related Accrual Period.

                                      A-25

<PAGE>

     Interest Determination Date: means each date that is the second LIBOR
Business Day preceding the commencement of each Accrual Period for the Offered
Securities.

     Interest Funds: means, with respect to any Payment Date, the sum, without
duplication, of (1) all scheduled interest due during the related Due Period
that is received before the related Servicer Remittance Date or advanced on or
before the related Servicer Remittance Date less the Servicing Fee, (2) all
Advances relating to interest, (3) all Compensating Interest, (4) liquidation
proceeds collected during the related Prepayment Period (to the extent such
liquidation proceeds relate to interest), (5) proceeds of any Mortgage Loan
purchased by the Depositor or any transferor under the Servicing Agreements
during the related Prepayment Period for document defects, breach of a
representation or warranty, realization upon default or optional termination (to
the extent such proceeds relate to interest) and (6) prepayment charges received
with respect to the related Mortgage Loans, less all non-recoverable Advances
relating to interest and certain expenses and other amounts reimbursed to the
Indenture Trustee, the Securities Administrator, the Master Servicer, the
Servicers and the Custodians; provided that such term shall not include any
amounts in respect of Excluded Amounts.

     Interest-Only Mortgage Loan: means a Mortgage Loan that provides for
monthly payments of interest at the Mortgage Rate, but no payments of principal
for the first five or ten years after its origination.

     Interim Certification: The interim certification delivered by the Custodian
pursuant to Section 3.01 of the Indenture in the form attached thereto as
Exhibit G.

     Investor-Based Exemption: means any of (but not limited to) PTE 84-14 (for
transactions by independent "qualified professional asset managers"), PTE 90-1
(for transactions by insurance company pooled separate accounts), PTE 91-38 (for
transactions by bank collective investment funds), PTE 95-60 (for transactions
by insurance company general accounts) or PTE 96-23 (for transactions effected
by "in-house asset managers"), each as it may be amended from time to time.

     IRS: The Internal Revenue Service.

     ISDA: International Swaps and Derivatives Association, Inc.

     ISDA Master Agreement: With respect to the Swap Agreement, the Master
Agreement dated as of the Closing Date between the Securities Administrator on
behalf of the Issuing Entity and the Swap Counterparty, including the Schedule
thereto.

     Issuing Entity, Owner Trust or Trust: The Merrill Lynch Mortgage Investors
Trust, Series 2006-SL2, a Delaware statutory trust, or its successor in
interest, created by the Certificate of Trust.

     Issuing Entity Request: A written order or request signed in the name of
the Issuing Entity by any one of its Authorized Officers and delivered to the
Securities Administrator and the Indenture Trustee.

     Last Scheduled Payment Date: For each class of Offered Securities and the
Class B Notes, the latest maturity date for any Mortgage Loan plus one year.

                                      A-26

<PAGE>

     LIBOR: On each LIBOR Rate Adjustment Date, LIBOR shall be established by
the Securities Administrator and as to any Accrual Period, LIBOR will equal the
rate for United States dollar deposits for one month which appears on the Dow
Jones Telerate Screen Page 3750 as of 11:00 A.M., London time, on that LIBOR
Rate Adjustment Date. Dow Jones Telerate Screen Page 3750 means the display
designated as page 3750 on the Telerate Service or any other page as may replace
page 3750 on that service for the purpose of displaying London interbank offered
rates of major banks. If the rate does not appear on that page or any other page
as may replace that page on that service, or if the service is no longer
offered, any other service for displaying LIBOR or comparable rates as may be
selected by the Securities Administrator after consultation with the Sponsor,
the rate will be the Reference Bank Rate.

     The establishment of LIBOR by the Securities Administrator, and the
Securities Administrator's subsequent calculation of the Note Interest Rate
applicable to the Class A, Class M and Class B Notes for the relevant Accrual
Period, in the absence of manifest error, will be final and binding.

     LIBOR Business Day: Any day on which banks are open for dealing in foreign
currency and exchange in London and New York City.

     LIBOR Rate Adjustment Date: With respect to the first Payment Date, the
second LIBOR Business Day preceding the Closing Date, and thereafter, the second
LIBOR Business Day preceding each Accrual Period.

     LIBOR Securities: The Class A, Class M and Class B Notes and the Class R
Certificates.

     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 6.02 of the Wilshire Servicing
Agreement shall not be deemed to constitute a Lien.

     Liquidated Loan: With respect to any Payment Date, any Mortgage Loan in
respect of which the related Servicer has determined, in accordance with the
servicing procedures specified in the related Servicing Agreement, as of the end
of the related Due Period that substantially all Liquidation Proceeds which it
reasonably expects to recover, if any, with respect to the disposition of the
Mortgage Loan and any related REO have been recovered.

     Liquidation Proceeds: Amounts received in connection with the partial or
complete liquidation of a defaulted Loan, whether through the sale or assignment
of such Mortgage Loan, trustee's sale, foreclosure sale or otherwise remaining
after, or not otherwise required to be applied to, the satisfaction of any
related first lien loan, less the sum of unreimbursed Servicing Advances and
Advances.

     Loan File: With respect to each Mortgage Loan, the documents indicated on
Exhibit C to the Mortgage Loan Sale and Assignment Agreement.

                                      A-27

<PAGE>

     Loan-to-Value Ratio or LTV: means, for any Mortgage Loan, (1) the original
principal balance (or credit limit with respect to the HELOCs only) of such
Mortgage Loan divided by (2) the Collateral Value of the related mortgaged
property.

     Lost Note Affidavit: With respect to any Mortgage Loan as to which the
original Mortgage Note has been permanently lost or destroyed and has not been
replaced, an affidavit from the Sponsor certifying that the original Mortgage
Note has been lost, misplaced or destroyed (together with a copy of the related
Mortgage Note).

     Lower Tier REMIC: As described in the Preliminary Statement and Section 10
of the Indenture.

     Lower Tier REMIC Interests: Each of the Class LTA Interest, the Class LTM-1
Interest, the Class LTM-2 Interest, the Class LTM-3 Interest, the Class LTM-4
Interest, the Class LTM-5 Interest, the Class LTM-6 Interest, the Class LTM-7
Interest, the Class LTM-8 Interest, the Class LTM-9 Interest, the Class LTB-1
Interest, the Class LTB-2 Interest, the Class LTX Interest, the Class LT-IO
Interest and the Class LTR Interest.

     Lower Tier REMIC Marker Interests: Each of the classes of Lower Tier REMIC
Regular Interests other than the Class LTX Interest, and the Class LT-IO
Interest.

     Lower Tier REMIC Regular Interests: Each of the Lower Tier REMIC Interests
other than the Class LTR Interest.

     Master Servicer: LaSalle Bank National Association in its capacity as
master servicer and its successors and assigns.

     Master Servicer Collection Account: The account or accounts created and
maintained by the Master Servicer pursuant to Section 3.20 of the Wilshire
Servicing Agreement, in which the Servicers shall deposit certain amounts in
respect of the Mortgage Loans.

     Material Defect: As defined in Section 3.01 of the Indenture.

     Maximum Mortgage Interest Rate: With respect to each HELOC, a rate that is
set forth on the related Mortgage Loan Schedule and in the related Mortgage Note
and is the maximum interest rate to which the Mortgage Interest Rate on such
HELOC may be increased on any Adjustment Date.

     Maximum Rate Cap: With respect to a Payment Date, the per annum rate equal
to the product of (i) 12, (ii) the quotient of (x) the total scheduled interest
that would have been due on the Mortgage Loans had the Adjustable Rate Mortgage
Loans provided for interest at their maximum lifetime Net Mortgages Rates and
the Fixed Rate Mortgage Loans provided for interest at their Net Mortgage Rates,
less any Net Swap Payments or Swap Termination Payments (other than Defaulted
Swap Termination Payments) owed to the Swap Counterparty for such Payment Date,
and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the
immediately preceding Payment Date, and (iii) a fraction, the numerator of which
is 30 and the denominator of which is the actual number of days in the related
Accrual Period.

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

                                      A-28

<PAGE>

     MERS(R) System: The system of recording transfers of Mortgages
electronically maintained by MERS.

     MIN: The Mortgage Identification Number for Loans registered with MERS on
the MERS(R) System.

     Minimum Monthly Payment: With respect to any HELOC and any month, the
minimum monthly payment required to be paid by the related Mortgagor in that
month pursuant to the terms of the related Mortgage Loan Agreement.

     Minimum Mortgage Interest Rate: With respect to each HELOC, a rate that is
set forth on the related Mortgage Loan Schedule and in the related Mortgage Note
and is the minimum interest rate to which the Mortgage Interest Rate on such
Mortgage Loan may be decreased on any Adjustment Date.

     MOM Loan: Any Mortgage Loan for which MERS acts as the mortgagee of such
Mortgage Loan, solely as nominee for the originator of such Mortgage Loan and
its successors and assigns, at the origination thereof.

     Monthly Payment: With respect to any Mortgage Loan that is not a HELOC and
any Due Date, the payment of principal and interest due thereon in accordance
with the amortization schedule at the time applicable thereto and with respect
to any HELOC, the Minimum Monthly Payment (in each case, after adjustment, if
any, for partial Principal Prepayments and for Deficient Valuations occurring
prior to such Due Date but before any adjustment to such amortization schedule
by reason of any bankruptcy, other than a Deficient Valuation, or similar
proceeding or any moratorium or similar waiver or grace period).

     Monthly Statement: As defined in Section 3.24 of the Wilshire Servicing
Agreement.

     Moody's: Moody's Investors Service, Inc. or its successor in interest.

     Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note that creates a first or junior lien on an unsubordinated estate in
fee simple in real property securing the Mortgage Note; except that with respect
to real property located in jurisdictions in which the use of leasehold estates
for residential properties is a widely-accepted practice, the mortgage, deed of
trust or other instrument securing the Mortgage Note may secure and create a
first or junior lien upon a leasehold estate of the Mortgagor.

     Mortgage File: The Mortgage documents pertaining to a particular Mortgage
Loan and any additional documents delivered to the Indenture Trustee or the
related Custodian to be added to the Mortgage File pursuant to the Indenture or
the related Custodial Agreement.

     Mortgage Index: With respect to any Adjustment Date, the Prime Rate.

     Mortgage Interest Rate: The annual rate at which interest accrues on any
Mortgage Loan in accordance with the provisions of the related Mortgage Note.

     Mortgage Loan: An individual mortgage loan (including any HELOC) that is
sold and assigned to the Depositor identified on the Mortgage Loan Schedule,
which Mortgage Loan Schedule includes without limitation the Mortgage File, the
Monthly Payments, Principal Prepayments, Liquidation

                                      A-29

<PAGE>

Proceeds, Condemnation Proceeds, Insurance Proceeds, proceeds of any REO
disposition, Additional Balances, any escrow accounts related to the Mortgage
Loan, and all other rights, benefits, proceeds and obligations arising from or
in connection with such Mortgage Loan, excluding replaced or repurchased
mortgage loans and excluding any portion representing any Excluded Amounts. The
Mortgage Loans shall be designated on the Mortgage Loan Schedule attached as
Exhibit A to the Wilshire Servicing Agreement and Exhibit A to the Mortgage Loan
Sale and Assignment Agreement.

     Mortgage Loan Sale and Assignment Agreement or MLSA: The mortgage loan sale
and assignment agreement dated as of July 1, 2006, between the Sponsor, as
seller, and the Depositor, as purchaser.

     Mortgage Loan Schedule: The schedule of Mortgage Loans transferred to the
Issuing Entity, a copy of which shall be attached as Exhibit A to the Wilshire
Servicing Agreement and as Exhibit A to the Mortgage Loan Sale and Assignment
Agreement, which sets forth as to each Mortgage Loan, among other things:

     (i) the Mortgage Loan identifying number ("LOAN #");

     (ii) the street address of the Mortgaged Property including state, city and
zip code ("ADDRESS");

     (iii) the maturity of the Mortgage Note ("MATURITY DATE");

     (iv) the Mortgage Interest Rate ("CUR RATE");

     (v) the Principal Balance at origination ("ORG AMT");

     (vi) the type of property securing the Mortgage Note ("PROPERTY TYPE");

     (vii) the Appraised Value ("APPRSL");

     (viii) the initial scheduled monthly payment of principal, if any, and
interest ("ORIGINAL P & I");

     (ix) the Cut-off Date Loan Balance ("CUT-OFF BAL");

     (x) the Combined Loan-to-Value Ratio at origination ("Combined
Loan-to-Value Ratio");

     (xi) the date of the Mortgage Note ("NOTE DATE");

     (xii) the original term to maturity of the Mortgage Loan ("ORIGINAL TERM");

     (xiii) under the column "OCCP CODE," a code indicating whether the Mortgage
Loan is secured by a non-owner occupied residence;

     (xiv) the Principal Balance of any Mortgage Loan senior thereto ("SR BAL");

     (xv) the Credit Score ("CR SCORE");

     (xvi) the debt to income ratio ("DTI");

     (xvii) product code ("PRODUCT CODE");

     (xviii) loan purpose ("PURPOSE");

     (xix) the lien position of the related Mortgage ("LIEN");

     (xx) whether such Mortgage Loan is a Wilshire Serviced Mortgage Loan or a
Countrywide Serviced Mortgage Loan;

     (xx) with respect to each Mortgage Loan that is not a HELOC, the amount of
the Monthly Payment as of the Cut-off Date and with respect to each HELOC, the
amount of the Minimum Monthly Payment as of the Cut off Date;

     (xxi) a code indicating whether the Mortgage Loan is a HELOC; and

     (xxii) with respect to each HELOC, the Credit Limit;

     (xxiii) with respect to each HELOC, the Draw Period;

     (xxiv) with respect to each HELOC, the amortization period;

                                      A-30
<PAGE>

     (xxv) with respect to each HELOC, the first Adjustment Date and the
Adjustment Date frequency;

     (xxvi) with respect to each HELOC, the Mortgage Index;

     (xxvii) with respect to each HELOC, the Gross Margin;

     (xxviii) with respect to each HELOC, the Maximum Mortgage Interest Rate
under the terms of the Mortgage Note;

     (xxix) with respect to each HELOC, the Minimum Mortgage Interest Rate under
the terms of the Mortgage Note;

     (xxx) with respect to each HELOC, the first Adjustment Date immediately
following the related Cut-off Date;

     (xxxi) with respect to each HELOC, the Index; and

     (xxxii) with respect to each HELOC, the termination fees.

     Such schedule may consist of multiple reports that collectively set forth
all of the information required.

     Mortgage Note: With respect to a Mortgage Loan, the mortgage note, loan
agreement or other evidence of the indebtedness pursuant to which the related
Mortgagor agrees to pay the indebtedness evidenced thereby and secured by the
related Mortgage as modified or amended.

     Mortgaged Property: The underlying real property securing repayment of a
Mortgage Note, consisting of a fee simple parcel of real estate or leasehold
estate, the term of which is equal to or longer than the term of the related
Mortgage Note.

     Mortgagor: The obligor or obligors under a Mortgage Note.

     National Housing Act: The National Housing Act of 1934, as amended.

     Net Mortgage Rate: With respect to any Mortgage Loan and any day, the
related Mortgage Interest Rate less the related Servicing Fee Rate.

     Net Rate: The per annum rate set forth in footnote 3 to the description of
the Lower Tier REMIC in the Preliminary Statement in the Indenture (such rate
being based on the weighted average of the interest rates on the SWAP REMIC
Regular Interests as adjusted and as set forth in such footnote).

     Net Swap Payment: For each Payment Date, the net amount of the Fixed Swap
Payment that the Issuing Entity is obligated to pay to the Swap Counterparty and
the Floating Swap Payment that the Swap Counterparty is obligated to pay to the
Issuing Entity.

     Net WAC: With respect to any Payment Date, the weighted average Net
Mortgage Rate for the Mortgage Loans calculated based on the respective Net
Mortgage Rates and the Stated Principal Balances of such Mortgage Loans as of
the preceding Payment Date (or, in the case of the first Payment Date, as of the
Cut-off Date).

     Non-Recoverable Advance: Any portion of an Advance previously made or
proposed to be made by the applicable Servicer or the Master Servicer that, in
the good faith judgment of the applicable Servicer or the Master Servicer, as
applicable, will not be ultimately recoverable by the applicable

                                      A-31

<PAGE>

Servicer or the Master Servicer, as applicable, from the related Mortgagor,
related Liquidation Proceeds or otherwise.

     Non-Recoverable Servicing Advance: Any portion of a Servicing Advance
previously made or proposed to be made by the applicable Servicer or the Master
Servicer that, in the good faith judgment of the applicable Servicer or the
Master Servicer, as applicable, will not be ultimately recoverable by the
applicable Servicer or the Master Servicer, as applicable, from the related
Mortgagor, related Liquidation Proceeds or otherwise.

     Non-Supported Interest Shortfall: As defined in Section 4.02 of the
Wilshire Servicing Agreement.

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

     Note Balance: With respect to any Note and any date of determination, the
product of (i) the Percentage Interest of such Note and (ii) the Class Principal
Balance for such Class of Notes.

     Noteholder: The Person in whose name a Note is registered in the Note
Register, except that, any Note registered in the name of the Depositor, the
Issuing Entity, the Securities Administrator or the Indenture Trustee or any
Affiliate of any of them shall be deemed not to be outstanding and the
registered holder will not be considered a Noteholder or holder for purposes of
giving any request, demand, authorization, direction, notice, consent or waiver
under the Indenture or the Trust Agreement provided that, in determining whether
the Indenture Trustee, the Securities Administrator or the Owner Trustee shall
be protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes that the Indenture Trustee, the Securities
Administrator or the Owner Trustee knows to be so owned shall be so disregarded.
Owners of Notes that have been pledged in good faith may be regarded as Holders
if the pledgee establishes to the satisfaction of the Indenture Trustee, the
Securities Administrator or the Owner Trustee the pledgee's right so to act with
respect to such Notes and that the pledgee is not the Issuing Entity, any other
obligor upon the Notes or any Affiliate of any of the foregoing Persons.

     Note Interest Rate: With respect to the Class A Notes, Class M Notes, Class
B Notes and any Payment Date, a per annum rate equal to the least of (i)
One-Month LIBOR plus the applicable Note Interest Margin, (ii) the Available
Funds Cap and (iii) the Maximum Rate Cap.

     Note Interest Margin:

<TABLE>
<CAPTION>
                               NOTE INTEREST MARGIN
            ---------------------------------------------------------
            On or prior to the date upon       After the date upon
             which the related Optional    which the related Optional
CLASS           Termination can occur         Termination can occur
-----       ----------------------------   --------------------------
<S>         <C>                            <C>
Class A                0.1500%                       0.3000%
Class M-1              0.3300%                       0.4950%
Class M-2              0.3400%                       0.5100%
Class M-3              0.3800%                       0.5700%
</TABLE>

                                      A-32

<PAGE>

<TABLE>
<S>                    <C>                           <C>
Class M-4              0.4700%                       0.7050%
Class M-5              0.5300%                       0.7950%
Class M-6              0.6200%                       0.9300%
Class M-7              1.2500%                       1.8750%
Class M-8              1.5000%                       2.2500%
Class M-9              2.5000%                       3.7500%
Class B-1              3.5000%                       5.2500%
Class B-2              3.5000%                       5.2500%
</TABLE>

     Note Owner: The Beneficial Owner of a Note.

     Note Register: The register maintained by the Note Registrar in which the
Note Registrar shall provide for the registration of Notes and of transfers and
exchanges of Notes.

     Note Registrar: The Securities Administrator, in its capacity as Note
Registrar.

     Notes: The Class A Notes, Class M Notes and Class B Notes issued and
outstanding at any time pursuant to the Indenture.

     Officer's Certificate: With respect to either Servicer or the Master
Servicer, a certificate signed by the President, Managing Director, a Director,
a Vice President or an Assistant Vice President, of such Servicer or the Master
Servicer and delivered to the Master Servicer, the Securities Administrator and
the Indenture Trustee. With respect to the Issuing Entity, a certificate signed
by the Issuing Entity, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
and delivered to the Securities Administrator and the Indenture Trustee. Unless
otherwise specified, any reference in the Indenture to an Officer's Certificate
shall be to an Officer's Certificate of any Authorized Officer of the Issuing
Entity, the Administrator, a Servicer or the Master Servicer.

     Operative Documents: The Trust Agreement, the Indenture, the Mortgage Loan
Sale and Assignment Agreement, the Servicing Agreements, the Administration
Agreement, the Custodial Agreements, the Swap Agreement and the other documents
and certificates delivered in connection with any of the above.

     Opinion of Counsel: A written opinion of counsel. Any Opinion of Counsel
for a Servicer or the Master Servicer may be provided by in-house counsel for
such Servicer or the Master Servicer if reasonably acceptable to the Indenture
Trustee, the Securities Administrator and the Rating Agencies or the Depositor,
as the case may be.

     Optional Redemption: The right of the Terminating Entity or the Auction
Purchaser, as applicable, to purchase the Mortgage Loans pursuant to Section
11.18 of the Indenture on a Payment Date as set forth in Section 11.18 of the
Indenture.

     Optional Redemption Date: The Payment Date on which the Terminating Entity
or the Auction Purchaser, as applicable, may exercise an Optional Termination.

                                      A-33

<PAGE>

     Optional Redemption Price: On any day after the Initial Optional Redemption
Date, the sum of (i) the then aggregate outstanding Stated Principal Balance of
the Mortgage Loans (or if such Mortgage Loan is an REO Property, the fair market
value of such REO Property), plus accrued interest thereon at the applicable
Mortgage Rate through the Due Date in the month in which the proceeds of the
auction will be paid on the Securities, (ii) any unreimbursed fees and
out-of-pocket costs and expenses owed to the Indenture Trustee, the Securities
Administrator, the Master Servicer, the Servicers and the Custodians and all
unreimbursed Advances and Servicing Advances, in each case incurred by such
party in the performance of its obligations, (iii) any unreimbursed costs,
penalties and/or damages incurred by the Issuing Entity in connection with any
violation relating to any of the Mortgage Loans of any predatory or abusive
lending law, (iv) any unpaid Net Swap Payments and any Swap Termination Payment
owed to the Swap Counterparty; such Swap Termination Payment shall include any
payment to the Swap Counterparty resulting from the Optional Redemption of the
Trust and (v) all reasonable fees and expenses of the Securities Administrator
incurred in connection with such auction.

     Original Loan-to-Value Ratio: means, (i) in the case of any Mortgage Loan
in a first lien position, the Loan-to-Value Ratio or LTV and (ii) in the case of
any Mortgage Loan in a second lien position, the Combined Loan-to-Value Ratio or
CLTV.

     Originators: Fieldstone Mortgage Company, Decision One Mortgage Loans LLC,
Citibank, N.A., Citibank (West) FSB, Citibank Texas NA, Citibank FSB, Bayrock
Mortgage Corporation, First Horizon Home Loan Corporation, First NLC Financial
Services, LLC, Fremont Investment & Loan, Impac Funding Corporation, IXIS Real
Estate Capital Inc, Lime Financial Services, Inc., Maribella Mortgage, LLC,
Michigan Fidelity Acceptance Corporation FMF Capital LLC, Mortgage Investment
Lending Associates d/b/a MILA, Inc., NetBank, New Century Mortgage Corporation,
Oakmont, Option One Mortgage Corporation, Quicken Loans Inc., Secured Funding
Corporation, and Sierra Pacific Mortgage Company, Inc.

     OTS: The Office of Thrift Supervision.

     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 cancelled 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 protected purchaser.

     Outstanding Mortgage Loan: As to any Payment Date, a Mortgage Loan that was
not (i) the subject of a Principal Prepayment in full during any preceding Due
Period, (ii) purchased, deleted or substituted for during any preceding Due
Period pursuant to the Wilshire Servicing Agreement or (iii) a Liquidated Loan
or Charged Off Mortgage Loan during any preceding Due Period as of such Payment
Date.

     Overcollateralization Amount: For any Payment Date the amount, if any, by
which (x) the Aggregate Collateral Balance for such Payment Date exceeds (y) the
aggregate Class Principal Balance of all of the Notes and the Class R and Class
G Certificates.

                                      A-34

<PAGE>

     Owner Trustee: Wilmington Trust Company, not in its individual capacity but
solely as Owner Trustee of the Trust, and its successors and assigns or any
successor owner trustee appointed pursuant to the terms of the Trust Agreement.

     Owner Trust Estate: The meaning specified in Section 3.01 of the Trust
Agreement.

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

     Pass-Through Margin: means for the Class R Certificates, 0.1500% for any
Payment Date on or before the Initial Optional Redemption Date, and 0.3000% for
any Payment Date after the Initial Optional Redemption Date.

     Pass-Through Rate: means, with respect to the Class R Certificate on any
Payment Date, the least of (1) One-Month LIBOR plus the applicable Pass-Through
Margin for such certificate, (2) the Available Funds Cap and (3) the Maximum
Rate Cap, and, with respect to the Class G Certificate, means the weighted
average of the Net Mortgage Rates of the Mortgage Loans.

     Paying Agent: With respect to the Indenture, any paying agent or co-paying
agent appointed pursuant to Section 3.04 of the Indenture, which initially shall
be the Securities Administrator.

     Payment Account: The account established by the Securities Administrator
pursuant to Section 8.02 of the Indenture and Section 5.01 of the Wilshire
Servicing Agreement. Amounts deposited in the Payment Account will be
distributed by the Securities Administrator in accordance with Section 3.06 of
the Indenture.

     Payment Date: The 25th day of each month, or if such day is not a Business
Day, then the next Business Day.

     Percentage Interest: With respect to any Note, either the percentage set
forth on the face thereof or equal to the percentage obtained by dividing the
Denomination of such Note by the aggregate of the Denominations of all Notes of
the same Class.

     Permitted Investments: At any time, any one or more of the following
obligations and securities:

          (i)  obligations of the United States or any agency thereof, provided
               the timely payment of such obligations is backed by the full
               faith and credit of the United States;

          (ii) general obligations of or obligations guaranteed by any state of
               the United States or the District of Columbia receiving the
               highest long-term debt rating of each Rating Agency rating the
               Certificates;

          (iii) commercial or finance company paper, other than commercial or
               finance company paper issued by the Depositor, the Securities
               Administrator or any of

                                      A-35

<PAGE>

               their Affiliates, which is then receiving the highest commercial
               or finance company paper rating of each such Rating Agency;

          (iv) certificates of deposit, demand or time deposits, or bankers'
               acceptances (other than banker's acceptances issued by the
               Securities Administrator or any of its Affiliates) issued by any
               depository institution or trust company incorporated under the
               laws of the United States or of any state thereof and subject to
               supervision and examination by federal and/or state banking
               authorities, provided that the commercial paper and/or long term
               unsecured debt obligations of such depository institution or
               trust company are then rated one of the two highest long-term and
               the highest short-term ratings of each such Rating Agency for
               such securities;

          (v)  demand or time deposits or certificates of deposit issued by any
               bank or trust company or savings institution to the extent that
               such deposits are fully insured by the FDIC;

          (vi) guaranteed reinvestment agreements issued by any bank, insurance
               company or other corporation rated in the two highest long-term
               or the highest short-term ratings of each Rating Agency
               containing, at the time of the issuance of such agreements, such
               terms and conditions as will not result in the downgrading or
               withdrawal of the rating then assigned to the Certificates by any
               such Rating Agency as evidenced by a letter from each Rating
               Agency;

          (vii) repurchase obligations with respect to any security described in
               clauses (i) and (ii) above, in either case entered into with a
               depository institution or trust company (acting as principal)
               described in clause (v) above;

          (viii) securities (other than stripped bonds, stripped coupons or
               instruments sold at a purchase price in excess of 115% of the
               face amount thereof) bearing interest or sold at a discount
               issued by any corporation, other than the Securities
               Administrator or any of its Affiliates, incorporated under the
               laws of the United States or any state thereof which, at the time
               of such investment, have one of the two highest long term ratings
               of each Rating Agency;

          (ix) interests in any money market fund (including those managed or
               advised by the Securities Administrator or its Affiliates), which
               at the date of acquisition of the interests in such fund and
               throughout the time such interests are held in such fund has the
               highest applicable long term rating by each Rating Agency rating
               such fund; and

          (x)  short term investment funds sponsored by any trust company or
               national banking association incorporated under the laws of the
               United States or any state thereof, other than the Securities
               Administrator or any of its Affiliates, which on the date of
               acquisition has been rated by each such Rating Agency in their
               respective highest applicable rating category;

                                      A-36

<PAGE>

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or above par or (iii) is purchased at a deep discount; provided,
further, that no such instrument shall be a Permitted Investment (A) if such
instrument evidences principal and interest payments derived from obligations
underlying such instrument and the interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations, or (B) if it may be redeemed at
a price below the purchase price (the foregoing clause (B) not to apply to
investments in units of money market funds pursuant to clause (ix) above); and
provided, further, (I) that no amount beneficially owned by any REMIC
(including, without limitation, any amounts collected by the Servicer but not
yet deposited in the Collection Account) may be invested in investments (other
than money market funds) treated as equity interests for Federal income tax
purposes, unless the Servicer shall receive an Opinion of Counsel, at the
expense of the party requesting that such investment be made, to the effect that
such investment will not adversely affect the status of the any REMIC provided
for herein as a REMIC under the Code or result in imposition of a tax on the
Issuing Entity or any REMIC provided for herein and (II) each such investment
must be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code. Permitted Investments that are subject to prepayment or call may not be
purchased at a price in excess of par.

     Permitted Liens: Liens for (i) real estate taxes and special assessments
not yet delinquent (provided, that property taxes may be delinquent up to one
year); (ii) as to the Mortgage Loans identified as junior Loans on the data
tapes provided by the related Servicer to, among others, the Sponsor, any senior
mortgage loans secured by such Mortgaged Property; (iii) covenants, conditions
and restrictions, rights of way, easements and other matters of public record as
of the date of recording that are acceptable to mortgage lending institutions
generally; (iv) liens prior to the related first mortgage, if verified as paid,
and liens and judgments of $5,000 or less, including sewer or maintenance liens,
mechanics' liens or UCC filings that have been included in the first mortgage
balance for the purpose of calculating Combined Loan-to-Value Ratio for any
related Mortgage Loan; and other matters to which like properties are commonly
subject that do not materially interfere with the benefits of the security
intended to be provided by the related Mortgage Documents; provided, however,
that Permitted Liens discovered after final approval is given on a Mortgage Loan
application that are less than 1.0% of the Appraised Value or less than 10% of
the original Principal Balance of the Mortgage Loan, whichever is less, do not
have to be included in the first mortgage balance for the purpose of calculating
Combined Loan-to-Value Ratio for any related Mortgage Loan

     Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in Section 860E(c)(1) of the Code) with respect to the
Class R or Class G Certificate, (iv) rural electric and telephone cooperatives
described in Section 1381(a)(2)(C) of the Code, and (v) a Person that is not a
citizen or resident of the United States, a corporation or partnership (or other
entity treated as a corporation or partnership for United States federal income
tax purposes) created or organized in or under the laws of the United States or
any State thereof or the District of Columbia or an estate whose income from
sources without the United States is includable in gross income for United
States federal income tax purposes regardless of its connection with the conduct
of a trade or business within the United States, or a trust if a court within
the United States is able to exercise primary supervision over the
administration of the trust and one or more

                                      A-37

<PAGE>

United States persons have authority to control all substantial decisions of the
trust, unless, in the case of this clause (v), such Person has furnished the
transferor and the Securities Administrator with a duly completed Internal
Revenue Service Form W-8ECI or applicable successor form. The terms "United
States," "State" and "International Organization" shall have the meanings set
forth in Section 7701 of the Code. A corporation will not be treated as an
instrumentality of the United States or of any State thereof for these purposes
if all of its activities are subject to tax and, with the exception of the
Federal Home Loan Mortgage Corporation, a majority of its board of directors is
not selected by such government unit.

     Person: Any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof, or any other entity
or organization of any type (whether or not a legal entity).

     Plan: An employee benefit plan of arrangement subject to Title I of ERISA
or a plan subject to Section 4975 of the Code.

     Plan Assets: The meaning specified in Section 2510.3-101 of the Department
of Labor Regulations.

     Predecessor Note: With respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 4.03 of the Indenture in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

     Prepayment Assumption: CPR.

     Prepayment Charge: With respect to each Mortgage Loan, the charge if the
Mortgagor prepays such Mortgage Loan as provided in the related Mortgage Note or
Mortgage.

     Prepayment Interest Excess: With respect to any Servicer Remittance Date,
for each Mortgage Loan serviced by Wilshire that was the subject of a Principal
Prepayment in full during the portion of the related Prepayment Period occurring
between the first day of the calendar month in which such Servicer Remittance
Date occurs and the last day of the related Prepayment Period, an amount equal
to interest (to the extent received) at the applicable Net Mortgage Rate on the
amount of such Principal Prepayment for the number of days commencing on the
first day of the calendar month in which such Servicer Remittance Date occurs
and ending on the date on which such Principal Prepayment is so applied.

     Prepayment Interest Shortfall: As to any Mortgage Loan (other than a
HELOC), Payment Date and Principal Prepayment, other than Principal Prepayments
in full that occur during the portion of the Prepayment Period that is in the
same calendar month as the Payment Date, the difference between (i) one full
month's interest at the applicable Mortgage Interest Rate (giving effect to any
applicable Relief Act Reduction), as reduced by the sum of the Servicing Fee
Rate, on the Stated Principal Balance of such Mortgage Loan immediately prior to
such Principal Prepayment and (ii) the amount of interest actually received that
accrued during the month immediately preceding such Payment Date or, with
respect to any Mortgage Loan with a Due Date other than the first of the month,
the amount of interest actually received that accrued during the one-month
period immediately preceding the Due Date following the Principal Prepayment,
with respect to such Mortgage Loan in connection with such Principal Prepayment.

                                      A-38

<PAGE>

     Prepayment Period: With respect to the Mortgage Loans that are not HELOCs
and any Payment Date, the period from and including the 15th day of the calendar
month preceding the month in which such Payment Date occurs (or, in the case of
the first Payment Date, beginning on the Cut-off Date) and including the 14th
day of the calendar month in which such Payment Date occurs, and with respect to
the HELOCs and any Payment Date, the calendar month preceding the month in which
such Payment Date occurs.

     Prime Rate: The "Prime Rate" as published in the "Money Rates" table of The
Wall Street Journal or other similar source as of the date specified in the
related mortgage documents, or, if such rate ceases to be published in The Wall
Street Journal or becomes unavailable for any reason, then based upon a new
index selected by the related Servicers, as holder of the related mortgage note,
based on comparable information, in each case as most recently announced as of a
date 45 days prior to such Adjustment Date.

     Principal Funds: With respect to any Payment Date, the sum, without
duplication, of (1) the scheduled principal due during the related Due Period
and received before the related Servicer Remittance Date or required to be
advanced by the Servicers on or before the related Servicer Remittance Date, (2)
prepayments of principal in full collected in the related Prepayment Period, (3)
the Stated Principal Balance of each Mortgage Loan that was purchased by the
Depositor or the related Servicer during the related Prepayment Period or, in
the case of a purchase in connection with an optional termination, on the
Business Day prior to such Payment Date, (4) the amount, if any, by which the
aggregate unpaid principal balance of any replacement Mortgage Loans is less
than the aggregate unpaid principal balance of any Mortgage Loans delivered by
the Sponsor in connection with a substitution of a Mortgage Loan, (5) all
liquidation proceeds collected during the related Prepayment Period (to the
extent such liquidation proceeds relate to principal and represent payment in
full), (6) all Subsequent Recoveries received during the related Due Period and
(7) all other collections and recoveries in respect of principal during the
related Due Period, less all non-recoverable Advances relating to principal and
all non-recoverable servicing advances reimbursed during the related Due Period
and certain expenses and other amounts reimbursable to the Indenture Trustee,
the Securities Administrator, the Master Servicer, the Servicers and the
Custodians; provided that such term shall not include any amounts in respect of
Excluded Amounts.

     Principal Payment Amount: With respect to each Payment Date, the sum of (1)
the Principal Funds for such Payment Date and (2) any Extra Principal Payment
Amount for such Payment Date, less any amounts of principal paid to the Class G
Certificates or used to purchase draws on the HELOCs.

     Principal Prepayment: Any Mortgagor payment of principal or other recovery
of principal on a Mortgage Loan that is recognized as having been received or
recovered in advance of its Due Date and applied to reduce the Stated Principal
Balance of the Mortgage Loan in accordance with the terms of the Mortgage Note.

     Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.

     Protected Account: An account established and maintained for the benefit of
Securityholders by the Servicers with respect to the related Mortgage Loans and
with respect to REO Property pursuant to the respective Servicing Agreement. The
Protected Account shall be an Eligible Account.

     Purchase Price: With respect to any Mortgage Loan required to be
repurchased by the Sponsor or the Originator pursuant to Section 2.03 of the
Wilshire Servicing Agreement, an amount equal to the sum

                                      A-39

<PAGE>

of (i) 100% of the unpaid principal balance of the Mortgage Loan as of the date
of such purchase together with any unreimbursed Servicing Advances, (ii) accrued
interest thereon at the applicable Mortgage Rate from (a) the date through which
interest was last paid by the Mortgagor to (b) the Due Date in the month in
which the Purchase Price is to be distributed to Securityholders and (iii) any
unreimbursed costs, penalties and/or damages incurred by the Issuing Entity in
connection with any violation relating to such Mortgage Loan of any predatory or
abusive lending law. With respect to any REO Property purchased by the Servicer
pursuant to Section 3.12 of the Wilshire Servicing Agreement, an amount equal to
the fair market value of such REO Property, as determined in good faith by the
Servicer.

     Rating Agency: Any nationally recognized statistical rating organization,
or its successor, that rated the Securities at the request of the Depositor at
the time of the initial issuance of the Securities. Initially, Moody's, Fitch or
Standard & Poor's. If such organization or a successor is no longer in
existence, "Rating Agency" shall be such nationally recognized statistical
rating organization, or other comparable Person, designated by the Issuing
Entity, notice of which designation shall be given to 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 Standard &
Poor's and P-1 or better in the case of Moody's and in the case of any other
Rating Agency shall mean such equivalent ratings. References herein to the
highest long-term rating category of a Rating Agency shall mean "AAA" in the
case of Standard & Poor's and "Aaa" in the case of Moody's and in the case of
any other Rating Agency, such equivalent rating.

     Rating Agency Condition: As defined in the Swap Agreement.

     Realized Loss: With respect to each Liquidated Loan, an amount (not less
than zero) equal to (i) the Stated Principal Balance of the Mortgage Loan as of
the date the Mortgage Loan becomes a Liquidated Loan, minus (ii) the proceeds,
if any, received during the month in which such Mortgage Loan becomes a
Liquidated Loan, to the extent applied as recoveries of principal of the
Mortgage Loan, net of the portion thereof reimbursable to the related Servicer
or any Subservicer with respect to related expenses as to which the related
Servicer or Subservicer is entitled to reimbursement thereunder but which have
not been previously reimbursed. Any Charged Off Mortgage Loan will give rise to
a Realized Loss (calculated as if clause (ii) of the previous sentence is equal
to zero) at the time it is charged off, as described in Section 4.03(a) of the
Wilshire Servicing Agreement.

     Record Date: With respect to the Class A, Class M, Class B Notes and Class
G and Class R Certificates and any Payment Date, the Business Day next preceding
such Payment Date. With respect to the Class P and Class C Certificates and any
Payment Date, the last Business Day of the month preceding the month of such
Payment Date (or, in the case of the August 2006 Payment Date, the Closing
Date).

     Reference Bank Rate: With respect to any Accrual Period, 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, England time,
on the second LIBOR Business Day prior to the first day of such Accrual Period
to prime banks in the London interbank market for a period of one month in
amounts approximately equal to the sum of the outstanding Class Principal
Balance of the 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, as of 11:00 a.m., New York
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

                                      A-40

<PAGE>

outstanding Class Principal Balance of the Notes. If no quotations can be
obtained, the rate will be the rate for the prior Payment Date; provided
however, if, under the priorities listed previously in this paragraph, the rate
for a Payment Date would be based on the rate for the previous Payment Date for
the third consecutive Payment Date, the Securities Administrator after
consultation with the Sponsor, shall select an alternative comparable index over
which the Securities Administrator has no control, used for determining
one-month Eurodollar lending rates that is calculated and published or otherwise
made available by an independent party.

     Reference Banks: means leading banks selected by the Securities
Administrator and engaged in transactions in Eurodollar deposits in the
international Eurocurrency market (1) with an established place of business in
London, (2) whose quotations appear on the Reuters Screen LIBO Page on the
Interest Determination Date in question, (3) which have been designated as such
by the Servicers and (4) not controlling, controlled by, or under common control
with, the Depositor, the Indenture Trustee, the Securities Administrator, the
Master Servicer, the Custodians, the Servicers, the Sponsor or any successor
servicer.

     Refinanced Loan: A Mortgage Loan that was made to a Mortgagor who owned the
Mortgaged Property prior to the origination of such Mortgage Loan and the
proceeds of which were used in whole or part to satisfy an existing mortgage.

     Registered Holder: The Person in whose name a Note is registered in the
Note Register on the applicable Record Date.

     Regulation AB: Subpart 22.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 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 Securities and Exchange 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 Securities and Exchange Commission, or as may be
provided by the Securities and Exchange Commission or its staff from time to
time.

     Related Notes: For each interest in the Upper Tier REMIC, the Class of
Notes or Certificates listed on the same row in the table entitled "Upper Tier
REMIC" in the Preliminary Statement in the Indenture.

     Relief Act: The Servicemembers Civil Relief Act or any similar state law or
regulation.

     Relief Act Reductions: With respect to any Payment Date and any Mortgage
Loan as to which there has been a reduction in the amount of interest or
principal collectible thereon (attributable to any previous month) as a result
of the application of the Relief Act or similar state law or regulation, the
amount, if any, by which (i) interest and/or principal collectible on such
Mortgage Loan for the most recently ended calendar month is less than (ii)
interest and/or principal accrued thereon for such month pursuant to the
Mortgage Note.

     REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code. References herein or in any of the Operative Documents
to "the REMICs" or "a REMIC" shall mean any of (or, as the context requires, all
of) the SWAP REMIC, the Lower Tier REMIC and the Upper Tier REMIC.

                                      A-41

<PAGE>

     REMIC Administrator: LaSalle Bank National Association; provided that if
the REMIC Administrator is found by a court of competent jurisdiction to no
longer be able to fulfill its obligations as REMIC Administrator under the
Operative Agreements, the Master Servicer or the Indenture Trustee if acting as
Master Servicer shall appoint a successor REMIC Administrator, subject to
assumption of the REMIC Administrator obligations under the Operative
Agreements.

     REMIC Pass-Through Rate: In the case of a Class of the Class A, Class M and
Class B Notes and the Class R Certificates, the Upper Tier REMIC Net WAC Cap for
the Corresponding REMIC Regular Interest.

     REMIC Provisions: Provisions of the federal income tax law relating to real
estate mortgage investment conduits, which appear at Sections 860A through 860G
of Subchapter M of Chapter 1 of the Code, and related provisions, and temporary
and final regulations (or, to the extent not inconsistent with such temporary or
final regulations, proposed regulations) and published rulings, notices and
announcements promulgated thereunder, as the foregoing may be in effect from
time to time as well as provisions of applicable state laws.

     REMIC Regular Interests: Each of the interests in the Upper Tier REMIC as
set forth in the Preliminary Statement in the Indenture other than the Residual
Interest.

     REMIC SWAP Rate: For each Payment Date (and the related Accrual Period), a
per annum rate equal to the Fixed Rate under the Swap Agreement for such Payment
Date, as set forth in Exhibit E of the Indenture.

     Remittance Report: An electronic report to the Securities Administrator
prepared by the Master Servicer in accordance with the Wilshire Servicing
Agreement, (or by such other means as the Master Servicer and the Securities
Administrator may agree from time to time) containing such data and information
as to permit the Securities Administrator to prepare the Monthly Statement to
Securityholders and make the required distributions for the related Distribution
Date. The Securities Administrator will prepare the Monthly Report based solely
upon the information received from the Master Servicer.

     REO Property: A Mortgaged Property that is acquired by or on behalf of the
Issuing Entity in full or partial satisfaction of the related Mortgage.

     Replacement Mortgage Loan: A Mortgage Loan substituted by the Depositor for
a Deleted Mortgage Loan, which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit I (1)
have a Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
less than 90% of the Stated Principal Balance of the Deleted Mortgage Loan; (2)
with respect to any Fixed Rate Mortgage Loan, have a Mortgage Rate not less than
or no more than 1% per annum higher than the Mortgage Rate of the Deleted
Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan: (A) have a
Maximum Mortgage Rate no more than 1% per annum higher or lower than the Maximum
Mortgage Rate of the Deleted Mortgage Loan; (B) have a Minimum Mortgage Rate no
more than 1% per annum higher or lower than the Minimum Mortgage Rate of the
Deleted Mortgage Loan; (C) have the same index and Periodic Rate Cap as that of
the Deleted Mortgage Loan and a Gross Margin not more than 1% per annum higher
or lower than that of the Deleted Mortgage Loan; (D) not permit conversion of
the related Mortgage Rate to a fixed Mortgage Rate and (F) currently be accruing
interest at a rate not more than 1% per annum higher or lower than that of the
Deleted Mortgage Loan; (3) have a similar or

                                      A-42

<PAGE>

higher FICO score or credit grade than that of the Deleted Mortgage Loan; (4)
have a Loan-to-Value Ratio (or Combined Loan-to-Value Ratio, in the case of the
Mortgage Loans in a second lien position) no higher than that of the Deleted
Mortgage Loan; (5) have a remaining term to maturity no greater than (and not
more than one year less than) that of the Deleted Mortgage Loan; (6) provide for
a Prepayment Charge on terms substantially similar to those of the Prepayment
Charge, if any, of the Deleted Mortgage Loan; (7) have the same lien priority as
the Deleted Mortgage Loan; (8) constitute the same occupancy type as the Deleted
Mortgage Loan; and (9) comply with each representation and warranty set forth in
Section 2.03 hereof.

     Repurchase Price: With respect to any Mortgage Loan required to be
repurchased on any date pursuant to the Mortgage Loan Sale and Assignment
Agreement or the Wilshire Servicing Agreement, an amount equal to the sum of (i)
100% of the Mortgage Loan Balance thereof (without reduction for any amounts
charged off), (ii) unpaid accrued interest at the Mortgage Rate (or with respect
to the last day of the month in the month of repurchase, the Mortgage Rate will
be the Mortgage Rate in effect as to second to last day in such month) on the
outstanding principal balance thereof from the Due Date to which interest was
last paid by the Mortgagor to the first day of the month following the month of
purchase, (iii) and all expenses advanced and reimbursable to the Servicer and
(iv) in connection with any Mortgage Loan required to be repurchased pursuant to
Section 2 of the Mortgage Loan Sale and Assignment Agreement, any costs and
damages incurred by the Trust Estate with respect to such Mortgage Loan in
connection with a breach of clause (b) to Exhibit B of the Mortgage Loan Sale
and Assignment Agreement.

     Request for Release: The Request for Release of Documents submitted by the
Servicer to the Custodian, substantially in the form of Exhibit C to the
Wilshire Servicing Agreement.

     Required Insurance Policy: With respect to any Mortgage Loan, any insurance
policy that is required to be maintained from time to time under this Agreement.

     Residual Interest: An interest in the Upper Tier REMIC that is entitled to
all distributions of principal and interest on the Class R Certificate other
than distributions in respect of the Class LTR Interest and distributions on the
Class R Certificate in respect of Excess Interest.

     Responsible Officer: With respect to the Securities Administrator or the
Indenture Trustee, any officer of the Securities Administrator or the Indenture
Trustee, in each case with direct responsibility for the administration of the
Indenture, and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

     Sarbanes-Oxley Certificate: As defined in Section 3.20 of the Wilshire
Servicing Agreement.

     Scheduled Payment: For any Mortgage Loan, the monthly scheduled payment of
interest and principal, as determined in accordance with the provisions of the
related Mortgage Note, as reduced by any Relief Act Reductions.

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

     Security: Any of the Certificates or Notes.

                                      A-43

<PAGE>

     Securityholder or Holder: Any Noteholder or a Certificateholder.

     Senior Enhancement Percentage: For any Payment Date the fraction, expressed
as a percentage, the numerator of which is the sum of the Class Principal
Balance of the Class M and Class B Notes and the Overcollateralization Amount
(which, for purposes of this definition only, shall not be less than zero), in
each case after giving effect to payments on such Payment Date, and the
denominator of which is the Aggregate Collateral Balance for such Payment Date.

     Servicer: Wilshire or Countrywide, as applicable, and their respective
successors and assigns.

     Servicer Advance Date: As to any Distribution Date, the related Servicer
Remittance Date.

     Servicer Remittance Date: With respect to any Wilshire Mortgage Loan and
Payment Date, the later of two Business Days after the 15th day of the month and
the 18th day (or if such day is not a Business Day, the immediately preceding
Business Day) of the month in which the related Payment Date occurs, and with
respect to any Countrywide Mortgage Loan and Payment Date, the 18th day of the
month (or if such day is not a Business Day, the immediately succeeding Business
Day.

     Servicing Advances: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in the performance by the Servicer of its servicing
obligations hereunder, including, but not limited to, the cost of (1) the
preservation, inspection, restoration and protection of a Mortgaged Property,
including without limitation advances in respect of real estate taxes and
assessments, (2) any collection, enforcement or judicial proceedings, including
without limitation foreclosures, collections and liquidations, (3) the
conservation, management, sale and liquidation of any REO Property, (4)
executing and recording instruments of satisfaction, deeds of reconveyance,
substitutions of trustees on deeds of trust or Assignments of Mortgage to the
extent not otherwise recovered from the related Mortgagors or payable under this
Agreement, (5) correcting errors of prior servicers; costs and expenses charged
to the Servicer by the Indenture Trustee; tax tracking; title research; flood
certifications; and lender paid mortgage insurance, (6) obtaining or correcting
any legal documentation required to be included in the Mortgage Files and
reasonably necessary for the Servicer to perform its obligations under the
related Servicing Agreement.

     Servicing Agreements: The Wilshire Servicing Agreement and/or the
Countrywide Servicing Agreement, as applicable.

     Servicing Certificate: A certificate completed and executed by a Servicing
Officer on behalf of a Servicer in accordance with Section 4.01 of the Wilshire
Servicing Agreement.

     Servicing Criteria: The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

     Servicing Default: The meaning specified in Section 7.01 of the Wilshire
Servicing Agreement.

     Servicing Fee: With respect to each Servicer, a monthly fee paid to such
Servicer from interest collected with respect to each Mortgage Loan serviced by
it (as well as from any liquidation proceeds from a liquidated Mortgage Loan
that are applied to accrued and unpaid interest) generally equal to the product
of (a) one-twelfth of the Servicing Fee Rate and (b) the Stated Principal
Balance of such Mortgage Loan. Each Servicer also is entitled to receive, as
additional servicing compensation,

                                      A-44

<PAGE>

Prepayment Interest Excesses, excess proceeds from sales of REO Properties, all
assumption fees and other similar charges (other than prepayment charges) and
investment income earned on, or benefits received from, amounts on deposit in
the Collection Account and escrow account.

     Servicing Fee Rate: 0.50% for each Mortgage Loan.

     Servicing Officer: Any officer of a Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans serviced by such
Servicer 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 such Servicer, as such list may be amended from time
to time.

     Servicing Rights Pledgee: One or more lenders, selected by the Servicer, to
which the Servicer may pledge and assign all of its right, title and interest
in, to and under this Agreement.

     Servicing Transfer Costs: In the event that the Servicer does not reimburse
the Master Servicer under this Agreement, all costs associated with the transfer
of servicing from the predecessor Servicer, including, without limitation, any
costs or expenses associated with the termination of the predecessor Servicer,
the appointment of a successor servicer, the complete transfer of all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the Master Servicer or any successor servicer to correct any
errors or insufficiencies in the servicing data or otherwise to enable the
Master Servicer or successor servicer to service the Mortgage Loans properly and
effectively.

     Similar Law: Any federal, state, local, non-U.S. or other laws or
regulations that are substantively similar to Title I of ERISA or Section 4975
of the Code.

     Single Note: A Note in the amount of $1,000.

     Sponsor: Merrill Lynch Mortgage Lending Inc.

     Standard & Poor's: Standard & Poor's Ratings Services or its successor in
interest.

     Startup Day: For purposes of the REMIC Provisions, the Closing Date.

     Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property (1) as of the Cut-off Date, the Cut-off Date Principal Balance thereof,
and (2) as of any Distribution Date, such Cut-off Date Principal Balance, minus
the sum of (A) the principal portion of the Scheduled Payments (x) due with
respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date and (y) that were received by the Servicer as of the close of
business on the Determination Date related to such Distribution Date or with
respect to which Advances were made on the Servicer Advance Date prior to such
Distribution Date and (B) all Principal Prepayments with respect to such
Mortgage Loan received on or prior to the last day of the related Prepayment
Period, and all Liquidation Proceeds to the extent applied by the Servicer as
recoveries of principal in accordance with Section the related Servicing
Agreement with respect to such Mortgage Loan, that were received by the Servicer
as of the close of business on the last day of the related Due Period.
Notwithstanding the foregoing, the Stated Principal Balance of a Liquidated Loan
shall be deemed to be zero. For any Outstanding Mortgage Loan that is a HELOC as
of any Distribution Date, its outstanding principal balance as of the Cut-off
Date plus any Additional Balances in respect of such HELOC, reduced by the
principal received on or before the Due Date in the Due Period immediately
preceding such Determination Date. For purposes of calculating the

                                      A-45

<PAGE>

Stated Principal Balance of the HELOCs, Excluded Amounts shall be considered to
be allocated pro rata to all HELOCs in reduction of the outstanding principal
balances of the HELOCs.

     Stated Value: With respect to any Mortgage Loan, the value of the related
Mortgaged Property as stated by the related Mortgagor in his or her application.

     Statutory Trust Statute: Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code Sections 3801 et seq., as the same may be amended from time to time.

     Stepdown Date: The earlier of: (A) the first Payment Date on which the
aggregate Class Principal Balance of the Class A Notes and the Class R
Certificate has been reduced to zero; and (B) the later to occur of (1) the
Payment Date in August 2009 or (2) the first Payment Date on which the Class
Principal Balance of the Class A Notes (after giving effect to payments of the
Principal Funds amount for such Payment Date) is less than or equal to 33.70% of
the aggregate Stated Principal Balances of the Mortgage Loans.

     Stepdown Required Loss Percentage: For any Payment Date, the applicable
percentage for such Payment Date set forth in the following table:

<TABLE>
<CAPTION>
PAYMENT DATE OCCURRING IN           STEPDOWN REQUIRED LOSS PERCENTAGE
-------------------------    ---------------------------------------------------
<S>                          <C>
August 2008-July 2009        2.25% with respect to August 2008, plus an
                             additional 1/12th of 2.75% for each month
                             thereafter
August 2009-July 2010        5.00% with respect to August 2009, plus an
                             additional 1/12th of 2.65% for each month
                             thereafter
August 2010-July 2011        7.65% with respect to August 2010, plus an
                             additional 1/12th of 2.05% for each month
                             thereafter
August 2011-July 2012        9.70% with respect to August 2011, plus an
                             additional 1/12th of 0.80% for each month
                             thereafter
August 2012 and thereafter   10.50%
</TABLE>

     Stepdown Trigger Event: The situation that exists with respect to any
Payment Date on or after the Stepdown Date, if (a) the quotient of (1) the
aggregate Stated Principal Balance of all Mortgage Loans 60 or more days
delinquent, measured on a rolling three-month basis (including Mortgage Loans in
foreclosure, REO Properties and Mortgage Loans with respect to which the
applicable mortgagor is in bankruptcy) and (2) the Stated Principal Balance of
all of the Mortgage Loans as of the preceding Servicer Remittance Date, equals
or exceeds the product of (i) 13.20% and (ii) the Required Percentage or (b) the
quotient (expressed as a percentage) of (1) the aggregate Realized Losses
incurred from the Cut-off Date through the last day of the calendar month
preceding such Payment Date and (2) the aggregate principal balance of the
Mortgage Loans as of the Cut-off Date exceeds the Stepdown Required Loss
Percentage.

     Subcontractor: Any outsourcer that performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to 5% or more of the
Mortgage Loans under the direction or

                                      A-46

<PAGE>

authority of a Servicer (measured by aggregate Stated Principal Balance of the
Mortgage Loans, annually at the commencement of the calendar year prior to the
year in which an Assessment of Compliance is required to be delivered,
multiplied by a fraction, the numerator of which is the number of months during
which such Subcontractor performs such discrete functions and the denominator of
which is 12, or, in the case of the year in which the Closing Date occurs, the
number of months elapsed in such calendar year).

     Subordinate Notes: The Class M Notes and Class B Notes.

     Subsequent Recoveries: As of any Payment Date, all amounts (other than
Liquidation Proceeds) received by a Servicer specifically related to a
previously Liquidated Mortgage Loan during the related Due Period.

     Subservicer: Any Person with whom a Servicer has entered into a
Subservicing Agreement as a Subservicer by such Servicer.

     Subservicing Account: An Eligible Account established or maintained by a
Subservicer as provided for in Section 3.02(c) of the Wilshire Servicing
Agreement.

     Subservicing Agreement: Any written contract between a Servicer and any
Subservicer relating to servicing and administration of certain Mortgage Loans
as provided in Section 3.01 of the Wilshire Servicing Agreement.

     Subservicing Fee: With respect to any Due Period, any fee retained monthly
by a Subservicer which will be paid out of the Servicing Fee.

     Substitution Amount: The amount, if any, by which the Stated Principal
Balance of a Mortgage Loan required to be removed from the trust due to a breach
of a representation and warranty or defective documentation exceeds the Stated
Principal Balance of the related substitute loan, plus unpaid interest accrued
thereon.

     Swap Account: The account established by the Securities Administrator
pursuant to Section 3.31(b) of the Indenture. Amounts deposited in the Swap
Account will be distributed by the Securities Administrator in accordance with
Section 3.06(II)(d) of the Indenture.

     Swap Agreement: Collectively, the ISDA Master Agreement (including the
Schedule thereto, the transaction evidenced by the related confirmation and
novation confirmation by and between the Issuing Entity and the Swap
Counterparty), forms of which are attached hereto as Exhibit E to the Indenture.

     Swap Agreement Notional Balances: The notional balance of the Swap
Agreement as set forth on Exhibit E of the Indenture.

     Swap Counterparty: Bear Stearns Financial Products Inc.

     Swap LIBOR: With respect to any Payment Date (and the related Accrual
Period) the product of (i) the Floating Rate Option (as defined in the Swap
Agreement for the related Payment Date), (ii) two and (iii) the quotient of (a)
the actual number of days in the Accrual Period for the Lower Tier REMIC
Interests divided by (b) 30.

                                      A-47

<PAGE>

     Swap Regulations: The final regulations issued by the IRS relating to
notional principal contracts under Section 446 of the Code.

     SWAP REMIC: As described in the Preliminary Statement and Article X of the
Indenture.

     SWAP REMIC Interests: Each of the interests in the SWAP REMIC as set forth
in the Preliminary Statement of the Indenture.

     SWAP REMIC Regular Interests: Each of the SWAP REMIC Interests other than
the Class G Certificate.

     Swap Termination Date: The Payment Date in February 2010.

     Swap Termination Payment: A payment required to be made by either the
Issuing Entity or the Swap Counterparty pursuant to the Swap Agreement as a
result of termination of the Swap Agreement.

     Terminating Entity: The Master Servicer on the Optional Redemption Date.

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

     Transfer Agreement: Each document pursuant to which the Sponsor acquired
any Mortgage Loan from the Originator of such Mortgage Loan.

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

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

     Treasury Regulations: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References in the Operative Documents
to specific provisions of proposed or temporary regulations shall include
analogous provisions of final Treasury Regulations or other successor Treasury
Regulations.

     Securities Administrator: LaSalle Bank National Association, in its
capacity as trust administrator, and its successors and assigns.

     Trust: As defined in Section 2.01 of the Trust Agreement.

     Trust Agreement: The Trust Agreement, dated as of the Closing Date, between
Wilmington Trust Company, as the Owner

     Trustee, and Merrill Lynch Mortgage Investors, Inc., as the Depositor.

     Trust Estate: The meaning specified in the Granting Clause of the
Indenture.

     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 the applicable jurisdiction.

                                      A-48

<PAGE>

     Uncertificated Class C Interest: An uncertificated REMIC Regular Interest
having the characteristics described in the Preliminary Statement in the
Indenture.

     Underwriter: Merrill Lynch, Pierce, Fenner & Smith Incorporated or any
successor thereto.

     Uniform Single Attestation Program for Mortgage Bankers: The Uniform Single
Attestation Program for Mortgage Bankers, as published by the Mortgage Bankers
Association of America and effective with respect to fiscal periods ending on or
after December 15, 1995.

     United States Person: (i) A citizen or resident of the United States, (ii)
a corporation, partnership or other entity treated as a corporation or
partnership for federal income tax purposes organized in or under the laws of
the United States or any state thereof or the District of Columbia (unless, in
the case of a partnership, Treasury regulations provide otherwise), (iii) an
estate the income of which is includible in gross income for United States tax
purposes regardless of its source or (iv) a trust if a court within the United
States is able to exercise primary supervision over the administration of the
trust and one or more United States persons have authority to control all
substantial decisions of the trust. Notwithstanding the preceding sentence, to
the extent provided in Treasury regulations, certain trusts in existence on
August 20, 1996, and treated as United States persons prior to such date, that
elect to continue to be treated as United States persons will also be United
States Persons.

     Unpaid Realized Loss Amount: With respect to any class of Subordinate Notes
and the Class C Certificates and as to any Payment Date, the excess of (1) the
Applied Realized Loss Amount for such class over (2) the sum of (x) all payments
in reduction of the Unpaid Realized Loss Amount for such class on all previous
Payment Dates and (y) all increases in the Class Principal Balance of such class
pursuant to the last sentence of the definition of "Class Principal Balance."

     Upper Tier REMIC: As described in the Preliminary Statement and Article X
in the Indenture.

     Upper Tier REMIC Net WAC Cap: For any Payment Date, the Net Rate.

     Voting Rights: The portion of the voting rights of the Holders of the Notes
allocated to each Class of Notes. 100% of all of the Voting Rights exercisable
by the Noteholders shall be allocated among the Classes of Class A Notes, Class
M Notes and Class B Notes and Class G Certificates in accordance with their
respective outstanding Note Balances. Voting Rights shall be allocated among the
Holders of a Class of Securities on a pro rata basis in accordance with their
respective Percentage Interests.

     Wilshire: Wilshire Credit Corporation.

     Wilshire Serviced Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule.

     Wilshire Servicing Agreement: The Servicing Agreement, dated as of the
Closing Date, by and among Wilshire, the Master Servicer, the Depositor and the
Issuing Entity.

                                      A-49exv4w3

 

Exhibit 4.3

REGISTRATION RIGHTS AGREEMENT

by and among

EAGLE ROCK ENERGY PARTNERS, L.P.

AND

EAGLE ROCK HOLDINGS, L.P.

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
___, 2006, by and among EAGLE ROCK ENERGY PARTNERS, L.P., a Delaware limited partnership (the
“Company”), and Eagle Rock Holdings, L.P., a Texas limited partnership (“Eagle Rock
Holdings”).

RECITALS

     WHEREAS, the Company, the Holders and the other parties thereto have entered into a
Contribution Agreement, dated as of ___, 2006 (the “Contribution Agreement”);

     WHEREAS, pursuant to the Contribution Agreement, the Company has agreed to provide the
registration and other rights set forth in this Agreement for the benefit of the Holders;

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by
each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. The terms set forth below are used herein as so
defined: 

     “Affiliate” means, with respect to a specified Person, any other Person, directly or
indirectly controlling, controlled by or under direct or indirect common control with such
specified Person. For purposes of this definition, “control” (including, with correlative
meanings, “controlling,” “controlled by” and “under common control with”) means the power to direct
or cause the direction of the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise.

     “Business Day” means any day other than a Saturday, Sunday, or a legal holiday for
commercial banks in New York, New York.

     “Commission” means the United States Securities and Exchange Commission.

     “Common Units” shall have the meaning set forth in the Partnership Agreement.

     “Company” has the meaning specified therefor in the introductory paragraph of this
Agreement.

     “Contribution Agreement” has the meaning specified in the recitals to this Agreement.

     “Eagle Rock Holdings” has the meaning specified therefor in the introductory paragraph
of this Agreement.

     “Effectiveness Period” has the meaning specified in Section 2.01(a).

1

 

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.

     “Holders” means Eagle Rock Holdings and any transferee of Registrable Securities who
has been transferred rights under this Agreement pursuant to Section 3.03.

     “Included Registrable Securities” has the meaning specified in Section 2.02(a).

     “IPO” means the initial public offering and sale of the Common Units or other equity
securities issued in exchange therefor in connection with any merger, consolidation or other
business combination involving the Company to the public pursuant to a Registration Statement on
Form S-1 that has been declared effective under the Securities Act by the Commission.

     “Liquidated Damages Amount” shall mean an amount equal to 0.25% of the product of
$18.02 times the number of Registrable Securities held by such Holder per 30 day period for the
first 60 days, with such amount increasing by an additional 0.25% of the product of $18.02 times
the number of Registrable Securities held by such Holder for each subsequent 60 days, up to a
maximum of 1.00% of the product of $18.02 times the number of Registrable Securities held by such
Holder per 30 day period. The Liquidated Damages Amount for any period of less than 30-days shall
be prorated by multiplying the Liquidated Damages Amount to be paid in a full 30-day period by a
fraction, the numerator of which is the number of days for which Liquidated Damages are owed, and
the denominator of which is 30.

     “Losses” has the meaning specified in Section 2.08(a).

     “Managing Underwriter” means, with respect to any Underwritten Offering, the book
running lead manager or managers of such Underwritten Offering.

     “Other Holders” shall mean the Persons entitled to registration rights pursuant to the
Registration Rights Agreement, dated as of March 27, 2006, among the Company and the Persons named
therein.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of the Company, as amended and/or restated from time to time.

     “Person” means any individual, corporation, company, voluntary association,
partnership, joint venture, trust, limited liability company, unincorporated organization,
government or any agency, instrumentality or political subdivision thereof, or any other form of
entity.

     “Piggyback Registration” has the meaning specified in Section 2.02(a).

     “Registrable Securities” means (i) the Common Units issued to the Holders pursuant to
the Contribution Agreement, (ii) any Common Units issued upon conversion, pursuant to the terms of
the Partnership Agreement, of Subordinated Units issued pursuant to the Contribution Agreement and
(iii) any common units or other equity securities issued in exchange for the Common Units or
Subordinated Units described in clauses (i) and (ii) above in connection with any merger,
consolidation or other business combination involving the Company until such time as such
securities cease to be Registrable Securities pursuant to Section 1.02.

2

 

     “Registration Expenses” has the meaning specified therefor in Section 2.07(a) of this
Agreement.

     “Required Effective Date” has the meaning specified in Section 2.01(c).

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

     “Selling Expenses” has the meaning specified in Section 2.07(a).

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

“Selling Holder Indemnified Persons” has the meaning specified in Section 2.08(a).`

     “Shelf Registration” has the meaning specified in Section 2.01(a).

     “Shelf Registration Statement” has the meaning specified in Section 2.01(a).

     “Subordinated Units” has the meaning specified in the Partnership Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a Shelf
Registration Statement) in which Common Units are sold to an underwriter on a firm commitment basis
for reoffering to the public or an offering that is a “bought deal” with one or more investment
banks.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security when (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and such Registrable Security has been sold or disposed of
pursuant to such effective registration statement; (b) such Registrable Security has been disposed
of pursuant to any section of Rule 144 (or any similar provision then in force under the Securities
Act); (c) such Registrable Security is held by the Company or one of its subsidiaries or (d) such
Registrable Security has been sold in a private transaction in which the transferor’s rights under
this Agreement are not assigned to the transferee of such securities. 

ARTICLE II

REGISTRATION RIGHTS

     Section 2.01 Shelf Registration.

     (a) Shelf Registration. At the request of the Holders of a majority of the
then outstanding Registrable Securities, the Company shall use its commercially reasonable
efforts to prepare and file with the Commission, within 90 days following the receipt of
such request, a registration statement under the Securities Act to permit the public resale
by the Holders of the Registrable Securities from time to time as permitted by Rule 415 of
the Securities Act (the “Shelf Registration Statement”), and the Company shall use
its commercially reasonable efforts to cause the Shelf Registration Statement to become
effective no later than 180 days after the receipt of such request (the “Shelf 

3

 

Registration”). A Shelf Registration Statement filed pursuant to this Section
2.01(a) shall be on such appropriate registration form of the Commission as shall be
selected by the Company; provided, however, that if a prospectus supplement
will be used in connection with the marketing of an Underwritten Offering from the Shelf
Registration Statement and the Managing Underwriter at any time shall notify the Company in
writing that, in the sole judgment of such Managing Underwriter, inclusion of detailed
information to be used in such prospectus supplement is of material importance to the
success of the Underwritten Offering of such Registrable Securities, the Company shall use
its commercially reasonable efforts to include such information in the prospectus. The
Company shall cause the Shelf Registration Statement filed pursuant to this Section 2.01(a)
to be continuously effective, supplemented and amended to the extent necessary to ensure
that it is available for resale of all Registrable Securities by the Holders and that it
conforms in all material respects with the requirements of the Securities Act during the
entire period beginning on the date the Shelf Registration Statement first is declared
effective under the Securities Act and ending on the earlier to occur of (i) the date all
Registrable Securities covered by the Shelf Registration Statement have been distributed in
the manner set forth and as contemplated in the Shelf Registration Statement and (ii) the
date on which all Registrable Securities have ceased to be Registrable Securities hereunder
in accordance with Section 1.02 (the “Effectiveness Period”). The Shelf
Registration Statement when declared effective will comply as to form in all material
respects with all applicable requirements of the Securities Act and the Exchange Act and
will not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.

     (b) Delay Rights. Notwithstanding anything to the contrary contained herein,
the Company may, upon written notice to any Selling Holder whose Registrable Securities are
included in the Shelf Registration Statement, suspend such Selling Holder’s use of any
prospectus which is a part of the Shelf Registration Statement (in which event the Selling
Holder shall discontinue sales of the Registrable Securities pursuant to the Shelf
Registration Statement), for a period not to exceed (X) an aggregate of 90 days in any
365-day period, if (i) the Company is pursuing a material acquisition, merger,
reorganization, disposition or other similar transaction and the Company determines in good
faith that the Company’s ability to pursue or consummate such a transaction would be
materially adversely affected by any required disclosure of such transaction in the Shelf
Registration Statement, (ii) the Company has experienced some other material non-public
event the disclosure of which at such time, in the good faith judgment of the Company, would
materially adversely affect the Company or (iii) at any time prior to the time when the
Company is eligible to utilize Form S-3 for the Shelf Registration Statement, the Company
has prepared and filed with the Commission a post-effective amendment for the purpose of
updating financial information or other information therein and such post-effective
amendment has not been declared effective by the Commission, or (Y) a period specified by
means of a written amendment signed by the Company and the Holders of a majority of the then
outstanding Registrable Securities. Upon disclosure of such information or the termination
of the condition or expiration of the period described above, as applicable, the Company
shall provide prompt notice to each Selling Holder whose Registrable Securities are included
in the Shelf Registration Statement, and shall promptly terminate any suspension of sales it
has put into effect and shall take such
other actions to permit registered sales of Registrable Securities as contemplated in
this Agreement.

4

 

     (c) Delay in Effectiveness of Shelf Registration Statement; Certain
Suspensions.

     (i) If the Holders of a majority of the then outstanding Registrable
Securities have requested the Company to prepare and file a Shelf Registration
Statement pursuant to Section 2.01(a) and the Shelf Registration Statement is not
declared effective by the Commission within 180 days after the receipt of such
request (the “Required Effective Date”), then following the Required
Effective Date, until such time as the Shelf Registration Statement is declared
effective or there are no longer any Registrable Securities outstanding, the
Company shall pay each Holder with respect to any such failure, following the
Required Effective Date, an amount equal to the Liquidated Damages Amount, as
liquidated damages and not as a penalty; provided, however, that in
the event (i) the Company is pursuing a material acquisition, merger,
reorganization, disposition or other similar transaction and the Company determines
in good faith that the Company’s ability to pursue or consummate such a transaction
would be materially adversely affected by any required disclosure of such
transaction in the Shelf Registration Statement or (ii) the Company has experienced
some other material non-public event the disclosure of which at such time, in the
good faith judgment of the Company, would materially adversely affect the Company,
and in the event specified in clause (i) or (ii) makes it inadvisable, in the good
faith judgment of the Company, to proceed to obtain effectiveness of the Shelf
Registration Statement, then the Required Effective Date shall be extended for a
period no greater than 90 days; provided, further, however, that
the Required Effective Date may be further modified or waived by means of a written
amendment signed by the Company and the Holders of a majority of the then
outstanding Registrable Securities).

     (ii) If (i) the Holders shall be prohibited from selling their Registrable
Securities under the Shelf Registration Statement as a result of a suspension
pursuant to Section 2.01(b) in excess of the periods permitted therein or (ii) the
Shelf Registration Statement is filed and declared effective but, during the
Effectiveness Period, shall thereafter cease to be effective or fail to be usable
for its intended purpose without being succeeded within 10 Business Days by a
post-effective amendment to the Shelf Registration Statement, a supplement to the
prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act, then until the suspension is lifted or a
post-effective amendment, supplement or report is filed with the Commission, but
not including any day on which a suspension is lifted or such amendment, supplement
or report is filed, the Company shall pay the Holders an amount equal to the
Liquidated Damages Amount, following (x) the date on which the suspension period
exceeded the permitted period or (y) the eleventh Business Day after the Shelf
Registration Statement ceased to be effective or failed to be useable for its
intended purposes, as liquidated damages and not as a penalty.

5

 

For purposes of this Section 2.01(c), a suspension shall be deemed lifted on
the date that notice that the suspension has been lifted is delivered to the
Holders pursuant to Section 3.01 of this Agreement.

The Liquidated Damages Amount shall be paid to each Holder in cash within ten Business Days of the
end of each such 30-day period. The Holders’ rights under this Section 2.01 shall terminate when
such Registrable Securities become eligible for resale under Rule 144(k) (or any similar provision
then in force under the Securities Act) or cease to be Registrable Securities. Any payments made
pursuant to this Section 2.01(c) shall constitute the Holders’ exclusive remedy for such events.
The Liquidated Damages Amount imposed hereunder shall be made to the Holders in immediately
available funds.

     Section 2.02 Piggyback Registration.

     (a) Underwritten Offering Participation. If at any time after the closing of
the IPO, the Company proposes to file (i) a Shelf Registration Statement or (ii) a
registration statement, other than a Shelf Registration Statement, in either case, for the
sale of Common Units in an Underwritten Offering for its own account and/or another Person
(each, a “Piggyback Registration”), then as soon as practicable but not less than
ten (10) Business Days prior to the filing of (x) any preliminary prospectus supplement
relating to such Underwritten Offering pursuant to Rule 424(b), (y) the prospectus
supplement relating to such Underwritten Offering pursuant to Rule 424(b) (if no preliminary
prospectus supplement is used) or (z) such registration statement as the case may be, the
Company shall give notice of such proposed Underwritten Offering to the Holders and such
notice shall offer the Holders the opportunity to include in such Underwritten Offering such
number of Registrable Securities as each such Holder may request in writing. Subject to
Section 2.02(c), the Company shall include in such Underwritten Offering all such
Registrable Securities with respect to which the Company has received requests within five
(5) Business Days after the Company’s notice has been delivered in accordance with Section
3.01 (the “Included Registrable Securities”). If no request for inclusion from a
Holder is received within the specified time, such Holder shall have no further right to
participate in such Underwritten Offering. If, at any time after giving written notice of
its intention to undertake an Underwritten Offering and prior to the closing of such
Underwritten Offering, the Company shall determine for any reason not to undertake or to
delay such Underwritten Offering, the Company may, at its election, give written notice of
such determination to the Selling Holders and, (i) in the case of a determination not to
undertake such Underwritten Offering, shall be relieved of its obligation to sell any
Included Registrable Securities in connection with such terminated Underwritten Offering,
and (ii) in the case of a determination to delay such Underwritten Offering, shall be
permitted to delay offering any Included Registrable Securities for the same period as the
delay in the Underwritten Offering. Any Selling Holder shall have the right to withdraw such
Selling Holder’s request for inclusion of such Selling Holder’s Registrable Securities in
such offering by giving written notice to the Company of such withdrawal up to and including
the time of pricing of such offering.

     (b) Priority of Registration. If the Managing Underwriter or Underwriters of
any proposed Underwritten Offering of Common Units advises the Company in writing

6

 

that the total amount of Common Units which the Selling Holders and any other Persons
intend to include in such offering exceeds the number which can be sold in such offering
without being likely to have an adverse effect in any material respect on the price, timing
or distribution of the Common Units offered or the market for the Common Units, then the
Common Units to be included in such Underwritten Offering shall include the number of
Registrable Securities that such Managing Underwriter or underwriters advises the Company
can be sold without having such adverse effect, with such number to be first
allocated to the Company; second, if there remains availability for additional
Common Units to be included in such Piggyback Registration, pro rata among
the Selling Holders and the Other Holders who have requested participation in the Piggyback
Registration to the exclusion of other Persons; and third, if there remains
availability for additional Common Units to be included in such Piggyback Registration,
pro rata among any other Persons who have been granted registration rights
or are granted registration rights on or after the date of this Agreement who have requested
participation in the Piggyback Registration.

Section 2.03 Underwritten Offering. 

     (a) Underwritten Offering. In the event that one or more Selling Holders elect
to dispose of Registrable Securities under the Shelf Registration Statement pursuant to an
Underwritten Offering and such Selling Holders reasonably anticipate gross proceeds from
such Underwritten Offering of at least $15.0 million, the Company shall take all such other
reasonable actions as are requested by the Managing Underwriter in order to expedite or
facilitate the registration and disposition of the Registered Securities; provided,
however, that the Company shall not be required to cause officers of the Company or
its Affiliates to participate in a “road show” or similar marketing effort being conducted
by such Managing Underwriter with respect to such Underwritten Offering.

     (b) General Procedures. In connection with an Underwritten Offering under
Sections 2.01 and 2.02 hereof, each Selling Holder and the Company shall be obligated to
enter into an underwriting agreement which contains such representations, covenants,
indemnities and other rights and obligations as are customary in underwriting agreements for
firm commitment offerings of securities. No Selling Holder may participate in such
Underwritten Offering unless such Selling Holder agrees to sell its Registrable Securities
on the basis provided in such underwriting agreement and completes and executes all
questionnaires, powers of attorney, indemnities and other documents reasonably required
under the terms of such underwriting agreement. Each Selling Holder may, at its option,
require that any or all of the representations and warranties by, and the other agreements
on the part of, the Company to and for the benefit of such underwriters also be made to and
for such Selling Holder’s benefit and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement also be conditions
precedent to its obligations. No Selling Holder shall be required to make any
representations or warranties to or agreements with the Company or the underwriters other
than representations, warranties or agreements regarding such Selling Holder and its
ownership of the securities being registered on its behalf and its intended method of
distribution and any other representation required by law. If any Selling Holder

7

 

disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw
therefrom by notice to the Company and the Managing Underwriter; provided,
however, that such withdrawal may be made up to and including the time of pricing of
the Underwritten Offering. No such withdrawal or abandonment shall affect the Company’s
obligation to pay Registration Expenses.

     (c) Appointment of Underwriters. In connection with an Underwritten Offering,
the Company shall have the sole right to appoint the Managing Underwriters.

     Section 2.04 Registration Procedures. In connection with its obligations contained in
Sections 2.01 and 2.02 hereof, the Company will, as expeditiously as possible:

     (a) subject to Section 2.01(c), prepare and file with the Commission such amendments
and supplements to the Shelf Registration Statement and the prospectus used in connection
therewith or reports filed with the Commission pursuant to Section 13(a), 13(c), 14 of 15(d)
of the Exchange Act as may be necessary to keep the Shelf Registration Statement effective
for the Effectiveness Period and as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities covered by the
Shelf Registration Statement;

     (b) furnish to each Selling Holder (i) as far in advance as reasonably practicable
before filing the Shelf Registration Statement or any other registration statement
contemplated by this Agreement or any supplement or amendment thereto (excluding documents
filed pursuant to the Exchange Act that are incorporated by reference into the Shelf
Registration Statement, any other registration statement contemplated by this Agreement or
any supplement on amendment thereto), upon request, copies of reasonably complete drafts of
all such documents proposed to be filed, and provide each such Selling Holder the
opportunity to object to any information pertaining to such Selling Holder and its plan of
distribution that is contained therein and make the corrections reasonably requested by such
Selling Holder with respect to such information prior to filing the Shelf Registration
Statement or such other registration statement and the prospectus included therein or any
supplement or amendment thereto, and (ii) such number of copies of the Shelf Registration
Statement or such other registration statement and the prospectus included therein and any
supplements and amendments thereto as each Selling Holder may reasonably request in order to
facilitate the public sale or other disposition of the Registrable Securities covered by
such Shelf Registration Statement or other registration statement;

     (c) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Shelf Registration Statement or any other registration
statement contemplated by this Agreement under the securities or blue sky laws of such
jurisdictions as any Selling Holder or, in the case of an Underwritten Offering, the
Managing Underwriter, shall reasonably request, provided that the Company will not
be required to qualify generally to transact business in any jurisdiction where it is not
then required to so qualify or to take any action which would subject it to general service
of process in any such jurisdiction where it is not then so subject;

8

 

     (d) promptly notify each Selling Holder and each underwriter of (i) the filing of the
Shelf Registration Statement or any other registration statement contemplated by this
Agreement or any prospectus or prospectus supplement to be used in connection therewith, or
any amendment or supplement thereto, and, with respect to such Shelf Registration Statement
or any other registration statement or any post-effective amendment thereto, when the same
has become effective; and (ii) any written comments from the Commission with respect to any
filing referred to in clause (i) and any written request by the Commission for amendments or
supplements to the Shelf Registration Statement or any other registration statement or any
prospectus or prospectus supplement thereto;

     (e) immediately notify each Selling Holder and each underwriter, at any time when a
prospectus relating thereto is required to be delivered under the Securities Act, of (i) the
happening of any event as a result of which the prospectus or prospectus supplement
contained in the Shelf Registration Statement or any other registration statement
contemplated by this Agreement, as then in effect, includes an untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances then
existing, provided, however, that the Company shall not be required to
specify in the written notice to the Selling Holders the nature of such event; (ii) the
issuance or threat of issuance by the Commission of any stop order suspending the
effectiveness of the Shelf Registration Statement or any other registration statement
contemplated by this Agreement, or the initiation of any proceedings for that purpose; or
(iii) the receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the applicable securities or blue
sky laws of any jurisdiction; following the provision of such notice, the Company agrees to
as promptly as practicable amend or supplement the prospectus or prospectus supplement or
take other appropriate action so that the prospectus or prospectus supplement does not
include an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in the light of
the circumstances then existing and to take such other action as is necessary to remove such
stop order, suspension, threat thereof or proceedings related thereto;

     (f) furnish to each Selling Holder copies of any and all transmittal letters or other
correspondence with the Commission or any other governmental agency or self-regulatory body
or other body having jurisdiction (including any domestic or foreign securities exchange)
relating to such offering of Registrable Securities;

     (g) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of
counsel for the Company, dated the effective date of the applicable registration statement
or the date of any amendment or supplement thereto, and an opinion in customary form dated
the date of the closing of the Underwritten Offering, and (ii) a “cold comfort” letter or
letters, dated the date of execution of the underwriting agreement and a letter or letters
of like kind dated the date of the closing of the Underwritten Offering, in each case,
signed by the independent public accountants who have certified the financial statements
included or incorporated by reference into the applicable registration statement, and each
of the opinion and the “cold comfort” letter or letters

9

 

shall be in customary form and covering substantially the same matters with respect to
such registration statement (and the prospectus and any prospectus supplement included
therein) and as are customarily covered in opinions of issuer’s counsel and in accountants’
letters delivered to the underwriters in Underwritten Offerings of securities, such other
matters as such underwriters may reasonably request;

     (h) otherwise use its commercially reasonable efforts to comply with all applicable
rules and regulations of the Commission, and make generally available to its security
holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an
earnings statement satisfying the provisions of Section 11(a) of the Securities Act in
accordance with Rule 158 thereunder (or any similar rule promulgated under the Securities
Act) or otherwise;

     (i) make available to the appropriate representatives of the Managing Underwriter and
each Selling Holder access to such information and personnel as is reasonable and customary
to enable such parties to establish a due diligence defense under the Securities Act;
provided that the Company need not disclose any information to any such
representative unless and until such representative has entered into a confidentiality
agreement with the Company;

     (j) cause all such Registrable Securities registered pursuant to this Agreement to be
listed on each securities exchange or nationally recognized quotation system on which
similar securities issued by the Company are then listed;

     (k) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be
necessary by virtue of the business and operations of the Company to enable any Selling
Holder to consummate the disposition of such Registrable Securities;

     (l) provide a transfer agent and registrar for all Registrable Securities covered by
such registration statement not later than the effective date of such registration
statement; and

     (m) enter into customary agreements and take such other actions as are reasonably
requested by any Selling Holder or the underwriters, if any, in order to expedite or
facilitate the disposition of such Registrable Securities.

     Each Selling Holder, upon receipt of notice from the Company of the happening of any event of
the kind described in subsection (e) of this Section 2.04, shall forthwith discontinue disposition
of the Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by subsection (e) of this Section 2.04 or until it is advised in
writing by the Company that the use of the prospectus may be resumed, and has received copies of
any additional or supplemental filings incorporated by reference in the prospectus, and, if so
directed by the Company, such Selling Holder will, or will request the Managing Underwriter or
underwriters, if any, to deliver to the Company (at the Company’s expense) all copies in their
possession or control, other than permanent file copies then in such

10

 

Selling Holder’s possession, of the prospectus and any prospectus supplement covering such
Registrable Securities current at the time of receipt of such notice.

     Section 2.05 Cooperation by Holders. The Company shall have no obligation to include
in the Shelf Registration Statement Common Units of a Holder or in any Piggyback Registration
Common Units of a Selling Holder who has failed to timely furnish such information which, in the
opinion of counsel to the Company, is reasonably required in order for the registration statement
or prospectus supplement, as applicable, to comply with the Securities Act.

     Section 2.06 Restrictions on Public Sale by Holders of Registrable Securities.

     (a) IPO. Each Holder of Registrable Securities will be required, upon request
of the Managing Underwriters in the IPO, to enter into a standard lock-up agreement covering
Registrable Securities not sold in the IPO for a period of up to 180 days beginning on the
date of a prospectus or prospectus supplement filed with the Commission with respect to the
pricing of the IPO, provided that the duration of the foregoing restrictions shall be no
longer than the duration of the shortest restriction generally imposed by the Managing
Underwriters on the Company or the officers, directors or any other unitholder of the
Company or its Affiliates on whom a restriction is imposed.
Notwithstanding anything herein to the contrary, none of the Holders
may exercise any of its registration rights under this Agreement
while subject to any lock-up agreement covering Registrable
Securities.

     (b) Underwritten Offering. Each Holder who, along with its Affiliates, holds
at least $5 million of Registrable Securities (determined by multiplying the number of
Registrable Securities offered by the average of the closing price for Common Units for the
ten trading days preceding the date of such notice) shall agree not to effect any public
sale or distribution of the Registrable Securities during the 90 calendar day period
beginning on the date of a prospectus or prospectus supplement filed with the Commission
with respect to the pricing of an Underwritten Offering, provided that the duration of the
foregoing restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the underwriters on the Company or the officers, directors or any other
unitholder of the Company or its Affiliates on whom a restriction is imposed.

     Section 2.07 Expenses.

     (a) Certain Definitions. “Registration Expenses” means all expenses
incident to the Company’s performance under or compliance with this Agreement to effect the
registration of Registrable Securities in a Shelf Registration pursuant to Section 2.01, a
Piggyback Registration pursuant to Section 2.02 or an Underwritten Offering pursuant to
Section 2.03, and the disposition of such securities, including, without limitation, all
registration, filing, securities exchange listing and quotation system fees, all
registration, filing, qualification and other fees and expenses of complying with securities
or blue sky laws, fees of the National Association of Securities Dealers, Inc., transfer
taxes and fees of transfer agents and registrars, all word processing, duplicating and
printing expenses, the fees and disbursements of counsel and independent public accountants
for the Company, including the expenses of any special audits or “cold comfort” letters
required

11

 

by or incident to such performance and compliance. Except as otherwise provided in
Section 2.08 hereof, the Company shall not be responsible for legal fees or other costs
incurred by Holders in connection with the exercise of such Holders’ rights hereunder. In
addition, the Company shall not be responsible for any “Selling Expenses,” which
means all underwriting fees, discounts and selling commissions allocable to the sale of the
Registrable Securities.

     (b) Expenses. The Company will pay all Registration Expenses in connection
with the Shelf Registration Statement filed pursuant to Section 2.01(a) of this Agreement, a
Piggyback Registration pursuant to Section 2.02 or an Underwritten Offering pursuant to
Section 2.03, whether or not the applicable registration statement becomes effective or any
sale is made pursuant to the Shelf Registration Statement, a Piggyback Registration or an
Underwritten Offering. Each Selling Holder shall pay all Selling Expenses in connection with
any sale of its Registrable Securities hereunder.

Section 2.08 Indemnification.

     (a) By the Company. In the event of a registration of any Registrable
Securities under the Securities Act pursuant to this Agreement, the Company will indemnify
and hold harmless each Selling Holder thereunder, its Affiliates and their respective
directors and officers, and each underwriter, pursuant to the applicable underwriting
agreement with such underwriter, of Registrable Securities thereunder and each Person, if
any, who controls such Selling Holder or underwriter within the meaning of the Securities
Act and the Exchange Act (collectively, the “Selling Holder Indemnified Persons”),
against any losses, claims, damages, expenses or liabilities (including reasonable
attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to which
such Selling Holder Indemnified Person may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Shelf
Registration Statement or any other registration statement contemplated by this Agreement,
any preliminary prospectus or final prospectus contained therein, or any amendment or
supplement thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the
statements therein (in the case of a prospectus, in the light of the circumstances under
which they were made) not misleading, and will reimburse each such Selling Holder
Indemnified Person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such Loss or actions or proceedings within a reasonable
time after such expenses are incurred and the Selling Holder Indemnified Person notifies the
Company of such expenses; provided, however, that the Company will not be
liable in any such case if and to the extent that any such Loss arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged omission so made
in conformity with information furnished by such Selling Holder Indemnified Person in
writing specifically for use in the Shelf Registration Statement or such other registration
statement, or prospectus supplement, as applicable. Such indemnity shall remain in full
force and effect regardless of any investigation made
by or on behalf of such Selling Holder Indemnified Person, and shall survive the
transfer of such securities by such Selling Holder.

12

 

     (b) By Each Selling Holder. Each Selling Holder agrees severally and not
jointly to indemnify and hold harmless the Company, its Affiliates and their respective
directors and officers, and each Person, if any, who controls the Company within the meaning
of the Securities Act or of the Exchange Act to the same extent as the foregoing indemnity
from the Company to the Selling Holders, but only with respect to information regarding such
Selling Holder furnished in writing by or on behalf of such Selling Holder expressly for
inclusion in the Shelf Registration Statement or prospectus supplement relating to the
Registrable Securities, or any amendment or supplement thereto; provided,
however, that the liability of each Selling Holder shall not be greater in amount
than the dollar amount of the proceeds (net of any Selling Expenses) received by such
Selling Holder from the sale of the Registrable Securities giving rise to such
indemnification.

     (c) Notice. Promptly after receipt by an indemnified party hereunder of notice
of the commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against the indemnifying party hereunder, notify the indemnifying
party in writing thereof; provided, however, that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have under this
Section 2.08 except to the extent that it has been materially prejudiced by such failure
and, provided, further, that the failure to notify the indemnifying party
shall not relieve it from any liability which it may have to any indemnified party other
than under this Section 2.08. The indemnifying party shall be entitled to participate in
and, to the extent it shall wish, to assume and undertake the defense thereof with counsel
reasonably satisfactory to such indemnified party and, after notice from the indemnifying
party to such indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party under this
Section 2.08 for any legal expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation and of
liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense and employ counsel or (ii) if the
defendants in any such action include both the indemnified party and the indemnifying party
and counsel to the indemnified party shall have concluded that there may be reasonable
defenses available to the indemnified party that are different from or additional to those
available to the indemnifying party, or if the interests of the indemnified party reasonably
may be deemed to conflict with the interests of the indemnifying party, then the indemnified
party shall have the right to select a separate counsel and to assume such legal defense and
otherwise to participate in the defense of such action, with the reasonable expenses and
fees of such separate counsel and other reasonable expenses related to such participation to
be reimbursed by the indemnifying party as incurred. Notwithstanding any other provision of
this Agreement, no indemnified party shall settle any action brought against it with respect
to which it is entitled to indemnification hereunder without the consent of the indemnifying
party, unless the settlement thereof imposes no liability or obligation on, and includes a
complete and unconditional release from all liability of, the indemnifying party and does
not contain any admission of wrongdoing or illegal activity by the indemnified party.

13

 

     (d) Contribution. If the indemnification provided for in this Section 2.08 is
held by a court or government agency of competent jurisdiction to be unavailable to the
Company or any Selling Holder or is insufficient to hold them harmless in respect of any
Losses, then each such indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a result of such
Losses, in such proportion as is appropriate to reflect the relative fault of the Company on
the one hand and of such Selling Holder on the other in connection with the statements or
omissions which resulted in such Losses, as well as any other relevant equitable
considerations; provided, however, that in no event shall such Selling
Holder be required to contribute an aggregate amount in excess of the dollar amount of
proceeds (net of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such indemnification. The relative fault of the
Company on the one hand and each Selling Holder on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact has been made by,
or relates to, information supplied by such party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. The parties hereto agree that it would not be just and equitable if contributions
pursuant to this paragraph were to be determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations referred to
above. The amount paid by an indemnified party as a result of the Losses referred to in the
first sentence of this paragraph shall be deemed to include any legal and other expenses
reasonably incurred by such indemnified party in connection with investigating or defending
any Loss which is the subject of this paragraph. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who is not guilty of such fraudulent
misrepresentation.

     (e) Other Indemnification. The provisions of this Section 2.08 shall be in
addition to any other rights to indemnification or contribution which an indemnified party
may have pursuant to law, equity, contract or otherwise.

     Section 2.09 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, the Company agrees to use its commercially
reasonable efforts to:

     (a) Make and keep public information regarding the Company available, as those terms
are understood and defined in Rule 144 of the Securities Act;

     (b) File with the Commission in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act; and

     (c) So long as a Holder owns any Registrable Securities, furnish to such Holder
forthwith upon request a copy of the most recent annual or quarterly report of the Company,
and such other reports and documents so filed as such Holder may reasonably

14

 

request in availing itself of any rule or regulation of the Commission allowing such
Holder to sell any such securities without registration.

     Section 2.10 Limitation on Subsequent Registration Rights. From and after the date
hereof, the Company shall not, without the prior written consent of the Holders of a majority of
the then outstanding Registrable Securities, enter into any agreement with any current or future
holder of any securities of the Company that would allow such current or future holder to require
the Company to include securities in any registration statement filed by the Company on a basis
that is superior in any way to the piggyback rights granted to the Holders hereunder.

ARTICLE III

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, courier service or personal delivery:

     (a) if to the Holders, at the most current address given by the Holders to the Company
in accordance with the provisions of this Section 3.01, which address initially is, with
respect to the Holders, the addresses set forth in the Contribution Agreement,

     (b) if to a permitted transferee of a Holder, to such transferee at the address
furnished by such permitted transferee, and

     (c) if to the Company, at 14950 Heathrow Forest Parkway, Suite 111, Houston, Texas
77032, notice of which is given in accordance with the provisions of this Section 3.01.

     All such notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
sent via Internet electronic mail; and when actually received, if sent by any other means.

     Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

     Section 3.03 Transfer or Assignment of Registration Rights. The rights granted to the
Holders by the Company under this Agreement may be transferred or assigned by any Holder to one or
more transferee(s) or assignee(s) of such Registrable Securities; provided that (x) the Company is
given written notice prior to any said transfer or assignment, stating the name and address of each
such transferee and identifying the securities with respect to which such registration rights are
being transferred or assigned, and (y) each such transferee assumes in writing responsibility for
its portion of the obligations of such Holder under this Agreement (unless it is already a party to
this Agreement).

     Section 3.04 Aggregation of Registrable Securities. All Registrable Securities held
or acquired by Persons who are Affiliates of one another shall be aggregated together for the
purpose of determining the availability of any rights under this Agreement.

15

 

     Section 3.05 Recapitalization, Exchanges, etc. Affecting the Common Units. The
provisions of this Agreement shall apply to the full extent set forth herein with respect to any
and all Common Units or other partnership interests of the Company or any successor or assign of
the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in
respect of, in exchange for or in substitution of, the Registrable Securities, including any common
units or other equity securities that may be issued in exchange for Registrable Securities in
connection with any merger, consolidation or other business combination involving the Company, its
Affiliates or any of its subsidiaries, and shall be appropriately adjusted for combinations,
recapitalizations and the like occurring after the date of this Agreement. The Company shall not
merge, consolidate or combine with any other Person unless the agreement providing for such merger,
consolidation or combination expressly provides for the continuation of the registration rights
specified in this Agreement with respect to the Common Units or other equity securities issued
pursuant to such merger, consolidation or combination.

     Section 3.06 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief, including specific performance, in
any court of competent jurisdiction, enjoining any such breach, and enforcing specifically the
terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it
may have on the ground of lack of jurisdiction or competence of the court to grant such an
injunction or other equitable relief. The existence of this right will not preclude any such
Person from pursuing any other rights and remedies at law or in equity which such Person may have.

     Section 3.07 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.08 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.09 Governing Law. The laws of the State of New York shall govern this
Agreement without regard to principles of conflict of laws. 

     Section 3.10 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.11 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by the Company set forth herein.
This

16

 

Agreement supersedes all prior agreements and understandings between the parties with respect
to such subject matter.

     Section 3.12 Amendment. This Agreement may be amended only by means of a written
amendment signed by the Company and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect
the rights of any Holder hereunder without the consent of such Holder; and provided,
further, however, that the immediately preceding proviso shall not apply to, and thus shall not
prevent or impair the ability of the Company and the Holders of a majority of the then outstanding
Registrable Securities to effect, a modification or waiver under Sections 2.01(b) and 2.01(c)(i) of
this Agreement.

     Section 3.13 No Presumption. In the event any claim is made by a party relating to
any conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or
persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the
request of a particular party or its counsel.

[The remainder of this page is intentionally left blank.]

17

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	EAGLE ROCK ENERGY PARTNERS, L.P.

 	 
	 	By:  	Eagle Rock Energy GP, L.P.,
 	 
	 	 	its general partner 	 
	 
	 	 	 
	 	By:  	           Eagle Rock Energy G&P, LLC,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Alex A. Bucher 	 
	 	 	President, Chief Executive Officer and Treasurer

 	 
	 
	 	EAGLE ROCK HOLDINGS, L.P.

 	 
	 	By:  	Eagle Rock GP, L.L.C.,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Alex A. Bucher 	 
	 	 	President, Chief Executive Officer and Treasurer 	 
	 

(Signature Page to Registration Rights Agreement)

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