The Schedule to the ISDA Master Agreement
EXHIBIT
99.4
The
Schedule to the ISDA Master Agreement
Schedule
to
the
dated
as
of March 30, 2007
between
Credit
Suisse International,
an
unlimited company incorporated
under
the laws of England and Wales
("Party
A")
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and
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The
Bank of New York, not in its individual or corporate capacity,
but solely as trustee for the Supplemental Interest Trust created
under
the Pooling and Servicing Agreement for CHL Mortgage Pass-Through
Trust 2007-4
("Party
B")
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Part
1
Termination
Provisions
In
this
Agreement:-
(a) Specified
Entity. "Specified Entity" shall have no meaning in relation
to Party A or Party B.
(b) Specified
Transaction. Specified Transaction will have the meaning
specified in Section 14.
(c) Certain
Events of Default. The following Events of Default will
apply to the parties as specified below, and the definition of "Event of
Default" in Section 14 is deemed to be modified accordingly:
Section
5(a)(i) (Failure To Pay or Deliver) will apply to Party A and will apply to
Party B.
Section
5(a)(ii) (Breach of Agreement) will not apply to Party A or Party
B.
Section
5(a)(iii) (Credit Support Default) will not apply to Party A or Party
B.
Section
5(a)(iv) (Misrepresentation) will not apply to Party A or Party B.
Section
5(a)(v) (Default Under Specified Transaction) will not apply to Party A or
Party
B.
Section
5(a)(vi) (Cross Default) will not apply to Party A or Party B.
Section
5(a)(vii) (Bankruptcy) will apply to Party A and will not apply to Party
B.
Section
5(a)(viii) (Merger Without Assumption) will apply to Party A and will apply
to
Party B.
(d) Termination
Events. The "Illegality" provision of Section 5(b)(i), the
"Tax Event" provision of Section 5(b)(ii), the "Tax Event Upon Merger" provision
of Section 5(b)(iii) will apply to both Party A and Party B. The 'Credit Event
upon Merger" provision of Section 5(b)(iv) will not apply to Party A and will
not apply to Party B.
(e) Automatic
Early Termination. The "Automatic Early Termination"
provision of Section 6(a) will not apply to Party A or Party B.
(f)
Payments on Early Termination. For the purpose of
Section 6(e), the Second Method and Market Quotation will apply.
(g) Termination
Currency. "Termination Currency" means United States
Dollars.
(h) Additional
Termination Event.
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An
Additional Termination Event with respect to Party A as the sole
Affected
Party:-
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Failure
to Deliver Information. Party A has failed to comply with the
requirements of Section 2(c) of the Regulation AB Agreement (as defined in
Part
5 below).
Part
2
Tax Representations
Tax Representations
(a) Payer
Tax Representations. For the purpose of Section 3(e), Party
A and Party B each makes the following representation:-
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It
is not required by any applicable law, as modified by the practice
of any
relevant governmental revenue authority, of any Relevant Jurisdiction
to
make any deduction or withholding for or on account of any Tax from
any
payment (other than interest under Section 2(e), 6(d)(ii) or 6(e))
to be
made by it to the other party under this Agreement. In making
this representation, it may rely
on:-
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(i)
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the
accuracy of any representation made by the other party pursuant to
Section
3(f);
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(ii)
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the
satisfaction of the agreement of the other party contained in Section
4(a)(i) or 4(a)(iii) and the accuracy and effectiveness of any document
provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii);
and
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(iii)
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the
satisfaction of the agreement of the other party contained in Section
4(d);
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provided
that it shall not be a breach of this representation where reliance
is
placed on clause (ii), and the other party does not deliver a form
or
document under Section 4(a)(iii) by reason of material prejudice
to its
legal or commercial position.
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(b) Payee
Tax Representations. For the purpose of Section
3(f),
(i)
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Party
A makes the following representation to Party
B:
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(A)
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Party
A is entering into each Transaction in the ordinary course of its
trade
as, and is, a recognized UK bank as defined in Section 840A of the
UK
Income and Corporation Taxes Act of
1988.
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(B)
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Party
A has been approved as a Withholding Foreign Partnership by the US
Internal Revenue Service.
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(C)
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Party
A's Withholding Foreign Partnership Employer Identification Number
is
00-0000000.
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(D)
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Party
A is a partnership that agrees to comply with any withholding obligation
under Section 1446 of the Internal Revenue
Code.
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(ii) Party
B makes no Payee Tax Representations.
Part
3
Agreement
to Deliver Documents
Each
party agrees to deliver the following documents as applicable:-
(a) For
the purpose of Section 4(a)(i), tax forms, documents or certificates to be
delivered are:-
Party
required to deliver document
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Form/Document/
Certificate
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Date
by which to be delivered
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||||
Party
A
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U.S.
Internal Revenue Service Form W-8IMY or any successor forms
thereto
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(i)
Before the first Payment Date under this Agreement, such form to
be
updated at the beginning of each succeeding three-calendar-year period
after the first payment date under this Agreement, (ii) promptly
upon
reasonable demand by Party B, and (iii) promptly upon learning that
any
such Form previously provided by Party A has become obsolete or
incorrect.
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(b) For
the purpose of Section 4(a)(ii), other documents to be delivered
are:-
Party
required to deliver document
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Form/Document/
Certificate
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Date
by which to be delivered
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Covered
by Section 3(d) Representation
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Party
A and Party
B
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Evidence
reasonably satisfactory to the other party as to the names, true
signatures and authority of the officers or officials signing this
Agreement or any Confirmation on its behalf
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Upon
request
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Yes
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Party
A
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A
copy of the annual report for such party containing audited or certified
financial statements for the most recently ended financial
year
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Upon
request, as soon as publicly available
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Yes
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Party
A
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An
opinion of counsel to such party reasonably satisfactory in form
and
substance to the other party covering the enforceability of this
Agreement
against such party
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Upon
execution of this Agreement
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No
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Part
4
Miscellaneous
(a) Addresses
for Notices. For the purpose of Section 12(a):
(i) (1) Address
for notices or communications to Party A:
Notwithstanding
section 12 (a) of the Agreement all notices including those to be given under
Section 5 or 6 may be given by facsimile transmission or electronic messaging
system.
Address:
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One
Cabot Square
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Attention:
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(1)
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Head
of Credit Risk Management;
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Xxxxxx
X00 0XX
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(2)
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Managing
Director -
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England
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Operations
Department;
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(3)
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Managing
Director – Legal
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Department
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Telex
No.: 264521 Answerback: CSFBI G
(For
all purposes.)
(2) For
the purpose of facsimile notices or communications under this
Agreement:-
Facsimile
No.: x00
000 0000 0000
Attention: General
Counsel Europe - Legal and Compliance Department
Telephone
number for oral confirmation
of receipt of facsimile in legible form: x00 000 0000
0000
Designated
responsible employee for the
purposes of Section 12(a)(iii): Senior Legal Secretary
With
a
copy to:
Facsimile
No. x00 (0) 000 000
0000
Head
of Credit Risk
Management
With
a copy to:
Facsimile
No. x00 (0) 000 000
0000
Global
Head of OTC Operations,
Operations Department.
(ii) Address
for notices or communications to Party B:
Address: The
Bank of New York
000
Xxxxxxx Xxxxxx-0X
Xxx
Xxxx, Xxx Xxxx
00000
Attention: Corporate
Trust MBS Administration, CWMBS, Series 2007-4
Telephone
No.: x0 000 000
0000 Facsimile
No.: x0 000 000 0000
(For
all
purposes.)
with
a
copy to:
Address:
Credit Suisse Management LLC
Eleven
Xxxxxxx Xxxxxx
Xxx
Xxxx,
XX 00000 Attention: Xxxxx
Xxxx
Telephone
No.: x0 000 000
0000 Facsimile
No.: x0 000 000 0000
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(b)
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Process
Agent. For the purpose of Section
13(c):-
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Party
A
appoints as its Process Agent:- Credit Suisse Securities (USA) LLC, Eleven
Xxxxxxx Xxxxxx, Xxx Xxxx, XX 00000 (Attention:- General Counsel, Legal and
Compliance Department).
Party
B
appoints as its Process Agent:- Not Applicable.
(c) Offices. The
provisions of Section 10(a) will apply to this Agreement.
(d) Multibranch
Party. For the purpose of Section 10(c):-
Party
A
is not a Multibranch Party.
Party
B
is not a Multibranch Party.
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(e)
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Calculation
Agent. The Calculation Agent is Party A; provided
however, that if an Event of Default occurs with respect to Party
A, then
Party B shall be entitled to appoint a financial institution, that
would
qualify as a Reference Market-maker to act as Calculation
Agent.
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(f)
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Credit
Support Document. None
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(g)
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Credit
Support Provider.
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Credit
Support Provider means in relation to Party A: Not applicable.
Credit
Support Provider means in relation to Party B: Not applicable.
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(h)
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Governing
Law. This Agreement and, to the fullest extent
permitted by applicable law, all matters arising out of or relating
in any
way to this Agreement, will be governed by and construed in accordance
with the laws of the State of New York without reference to choice
of law
doctrine. Each party hereby submits to the jurisdiction of the
Courts of
the State of New York.
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(i)
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Netting
of Payments. Section 2(c)(ii) of this Agreement will
not apply to the Transactions.
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(j)
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Affiliate. Affiliate
will have the meaning specified in Section 14, provided that Party
B shall
be deemed to have no
Affiliates.
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Part
5
Other
Provisions
(a) Definitions. Unless
otherwise specified in a Confirmation, this Agreement and each Transaction
between the parties are subject to the 2000 ISDA Definitions as published by
the
International Swaps and Derivatives Association, Inc. (the "2000 Definitions"),
and will be governed in all relevant respects by the provisions set forth in
the
2000 Definitions, without regard to any amendment to the 2000 Definitions
subsequent to the date hereof. The provisions of the 2000 Definitions
are incorporated by reference in and shall be deemed a part of this Agreement,
except that references in the 2000 Definitions to a "Swap Transaction" shall
be
deemed references to a "Transaction" for purposes of this
Agreement.
(b) Pooling
and Servicing Agreement. References to the "Pooling and
Servicing Agreement" are to the pooling and servicing agreement dated as of
March 1, 2007 among CWMBS, Inc., as depositor, Countrywide Home Loans, Inc.,
as
a seller, Park Granada LLC, as a seller, Park Monaco Inc., as a seller, Park
Sienna LLC, as a seller, Countrywide Home Loans Servicing LP, as master
servicer, and The Bank of New York, as trustee.
(c) Independent
Reliance. The parties agree to amend Section 3 of this
Agreement by the addition of the following provision at the end thereof and
marked as subsection (g).
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"(g)
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Independent
Reliance. It is entering into this Agreement and
will enter into each Transaction in reliance upon such tax, accounting,
regulatory, legal and financial advice as it deems necessary and
not upon
any view expressed by the other
party."
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(d) Change
of Account. Section 2(b) of this Agreement is hereby amended
by the addition of the following after the word "delivery" in the first line
thereof:-
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"to
another account in the same legal and tax jurisdiction as the original
account"
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(e) Recording
of Conversations. Each
party to this Agreement acknowledges and agrees to the tape recording of
conversations between the parties to this Agreement whether by one or other
or
both of the parties and each party hereby consents to such recordings being
used
as evidence in Proceedings.
(f) Waiver
of Right to Trial by Jury. Each party waives, to the fullest
extent permitted by applicable law, any right it may have to a trial by jury
in
respect of any suit, action or proceeding relating to this Agreement or any
Credit Support Document. Each party (i) certifies that no
representative, agent or attorney of the other party or any Credit Support
Provider has represented, expressly or otherwise, that such other party would
not, in the event of such a suit action or proceeding, seek to enforce the
foregoing waiver and (ii) acknowledges that it and the other party have been
induced to enter into this Agreement and provide for any Credit Support
Document, as applicable by, among other things, the mutual waivers and
certifications in this Section.
(g)
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Pooling
and Servicing Agreement.
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(1) Capitalized
terms used in this Agreement that are not defined herein and are defined in
the
Pooling and Servicing Agreement shall have the respective meanings assigned
to
them in the Pooling and Servicing Agreement.
(2) Notwithstanding
any other provision of this Agreement, Party A may not, prior to the date which
isone year and one day, or if longer the applicable preference period then
in
effect, after the payment in full ofall Certificates, institute against, or
join
any other Person in instituting against, the Trust any bankruptcy,
reorganization, arrangement, insolvency, moratorium or liquidation proceedings,
or other proceedings under Federal, State, or bankruptcy or similar
laws. Nothing shall preclude, or be deemed to stop, Party A (i) from
taking any action prior to the expiration of the aforementioned one year and
one
day period, or if longer the applicable preference period then in effect, in
(A)
any case or proceeding voluntarily filed or commenced by the Trust or (B) any
involuntary insolvency proceeding filed or commenced by a Person other than
Party A, or (ii) from commencing against the Trust or any of the Collateral
any
legal action which is not a bankruptcy, reorganization, arrangement, insolvency,
moratorium, liquidation or similar proceeding.
(h) Notice
of Certain Events or Circumstances. Each party agrees, upon
learning of the occurrence or existence of any event or condition that
constitutes (or that with the giving of notice or passage of time or both would
constitute) an Event of Default or Termination Event with respect to such party,
promptly to give the other party notice of such event or condition
(or, in lieu of giving notice of such event or condition in the case of an
event
or condition that with the giving of notice or passage of time or both would
constitute an Event of Default or Termination Event with respect to the party,
to cause such event or condition to cease to exist before becoming an Event
of
Default or Termination Event); provided that failure to provide notice of
such event or condition pursuant to this Part 5(j) shall not constitute an
Event
of Default or a Termination Event.
(i) Regarding
Party A. Party B acknowledges and agrees that Party A has
had and will have no involvement in and, accordingly Party A accepts no
responsibility for: (i) the establishment, structure, or choice of
assets of the Trust; (ii) the selection of any person performing services for
or
acting on behalf of Party B or the Trust; (iii) the selection of Party A as
the
Counterparty; (iv) the terms of the Certificates; (v) the preparation of or
passing on the disclosure and other information contained in any offering
circular for the Certificates, the Pooling and Servicing Agreement, or any
other
agreements or documents used by any party in connection with the marketing
and
sale of the Certificates; (vi) the ongoing operations and administration of
the
Trust, including the furnishing of any information to Party B which is not
specifically required under this Agreement; or (vii) any other aspect of the
Trust’s existence.
(j) Commodity
Exchange Act. Each party represents to the other party on
and as of the date hereof and on each date on which a Transaction is entered
into among them that:
(i)
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such
party is an "eligible contract participant" as defined in the U.S.
Commodity Exchange Act (the "CEA");
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(ii)
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neither
this Agreement nor any Transaction has been executed or traded on
a
"trading facility" as such term is defined in the CEA;
and
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(iii)
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such
party is entering into each Transaction in connection with its business
or
a line of business and the terms of this Agreement and each Transaction
have been individually tailored and
negotiated.
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(k) Set-off. Without
affecting the provisions of this Agreement requiring the calculation of certain
net payment amounts, all payments under this Agreement will be made without
set-off or counterclaim.
(l) Limitation
on Events of Default. Notwithstanding the terms of Sections
5 and 6 of this Agreement, if at any time and so long as Party B has satisfied
in full all its payment obligations under Section 2(a)(i) of this Agreement
and
has at the time no future payment obligations, whether absolute or contingent,
under such Section, then unless Party A is required pursuant to appropriate
proceedings to return to Party B or otherwise returns to Party B upon demand
of
Party B any portion of such payment, (a) the occurrence of an event described
in
Section 5(a) of this Agreement with respect to Party B shall not constitute
an
Event of Default or Potential Event of Default with respect to Party B as
Defaulting Party and (b) Party A shall be entitled to designate an Early
Termination Date pursuant to Section 6 of this Agreement only as a result of
the
occurrence of a Termination Event as set forth in either Section 5(b)(i) or
5(b)(ii) of this Agreement with respect to Party A as the Affected Party or
Section 5(b)(iii) of this Agreement with respect to Party A as the Burdened
Party.
(m) Limitation
on Liability. It is expressly understood and agreed by the
parties hereto that: (a) The Bank of New York ("BNY") is entering into this
Agreement solely in its capacity as trustee of the Supplemental Interest Trust
under the Pooling and Servicing Agreement, and (b) in no case shall BNY (or
any
person acting as successor trustee under the Pooling and Servicing Agreement)
be
personally liable for or on account of any of the statements, representations,
warranties, covenants or obligations stated to be those of Party B under the
terms of this Agreement, all such liability, if any, being expressly waived
by
Party A and any person claiming by, through or under Party A.
(n) Regulation
AB Compliance. Party A and Party B agree that the terms of
the Master Item 1115 Agreement dated as of November 28, 2006, as supplemented
by
the Supplement dated March 30, 2007 (the "Item 1115 Agreement"), between
Countrywide Home Loans, Inc., CWABS, INC., CWMBS, Inc., CWALT, Inc., CWHEQ,
Inc.
and Credit Suisse International shall be incorporated by reference into this
Agreement so that Party B shall be an express third party beneficiary of the
Item 1115 Agreement. The Item 1115 Agreement is attached hereto as Exhibit
A.
IN
WITNESS WHEREOF, the parties have executed this Schedule by their duly
authorized representatives as of the date of the Agreement.
CREDIT
SUISSE INTERNATIONAL
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THE
BANK OF NEW YORK, NOT IN ITS INDIVIDUAL OR CORPORATE CAPACITY, BUT
SOLELY
AS TRUSTEE FOR THE SUPPLEMENTAL INTEREST TRUST CREATED UNDER THE
POOLING
AND SERVICING AGREEMENT FOR CHL MORTGAGE PASS-THROUGH TRUST
2007-4
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By: /s/
Xxxxx X. Xxxxxxx
Name:
Xxxxx X. Xxxxxxx
Title:
Authorized Signatory
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By: /s/
Xxxxxxxx X. Xxxxxx
Name:
Xxxxxxxx X. Xxxxxx
Title:
Vice President
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By: /s/
Xxxxxxx Xxxxxx
Name:
Xxxxxxx Xxxxxx
Title:
Authorized Signatory
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EXHIBIT
A
Master
Item 1115 Agreement dated as of November 28, 2006 (this “Agreement”), among
COUNTRYWIDE HOME LOANS, INC., a New York corporation (“CHL”), CWABS, INC., a
Delaware corporation (“CWABS”), CWMBS, Inc., a Delaware corporation (“CWMBS”),
CWALT, Inc., a Delaware corporation (“CWALT”), CWHEQ, Inc., a Delaware
corporation (“CWHEQ”) and Credit Suisse International, as counterparty (the
“Counterparty”).
RECITALS
WHEREAS,
CWABS, CWMBS, CWALT and CWHEQ each have filed Registration Statements on Form
S-3 (each, a “Registration Statement”) with the Securities and Exchange
Commission (the “Commission”) for purposes of offering mortgage backed or
asset-backed notes and/or certificates (the “Securities”) through special
purpose vehicles (each, an “SPV”).
WHEREAS,
on the closing date (the “Closing Date”) of each Transaction referenced in any
supplement to this Agreement, any such supplement substantially in the form
attached hereto as Exhibit A hereto, the Counterparty and CHL or an underwriter
or dealer with respect to the Transaction, enter into certain derivative
agreements (each, a “Derivative Agreement”), including interest rate caps and
interest rate or currency swaps, for purposes of providing certain yield
enhancements that are assigned to the SPV or the related trustee on behalf
of
the SPV or a swap or corridor contract administrator (each, an
“Administrator”).
NOW,
THEREFORE, in consideration of the mutual agreements set forth herein and for
other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereby agree as follows:
Section
1.
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Definitions
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Business
Days: Any day other than (i) a Saturday or a Sunday or (ii) a day on which
banking institutions in the State of New York are authorized or obligated by
law
or executive order to be closed.
Company
Information: As defined in Section 4(a)(i).
Company
Financial Information: As defined in Section 2(a)(ii).
Countrywide
Indemnified Party: As defined in Section 4(a).
Counterparty
Indemnified Party: As defined in Section 4(b).
Depositor: Means
CWABS, CWMBS, CWALT or CWHEQ with respect to the related Registration Statement
for which the entity of the registrant.
GAAP: As
defined in Section 3(a)(v).
XXXXX: The
Commission’s Electronic Data Gathering, Analysis and Retrieval
system.
Exchange
Act: The Securities Exchange Act of 1934, as amended and the rules
and regulations promulgated thereunder.
Exchange
Act Reports: All Distribution Reports on Form 10-D, Current Reports
on Form 8-K and Annual Reports on Form 10-K that are to be filed with respect
to
the related SPV pursuant to the Exchange Act.
Indemnified
Party: As defined in Section 4(b).
Master
Agreement: The ISDA Master Agreement between the Counterparty and
SPV, or if no such Master Agreement exists, the ISDA Master Agreement assumed
to
apply to the Derivative Agreement pursuant to its terms.
Prospectus
Supplement: The prospectus supplement prepared in connection with the
public offering and sale of the related Securities and that is the most recent
disclosure available to investors at the time of pricing.
Regulation
AB: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and
subject to such clarification and interpretation as have been provided by the
Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff
of the Commission, or as may be provided by the Commission or its staff from
time to time.
Securities
Act: The Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.
Transaction:
A securities offering involving CWABS, CWMBS, CWALT or CWHEQ in which the
Counterparty provides a Derivative Agreement that acknowledges and incorporates
the terms of this Agreement in accordance with Section 5(b) hereof.
Section
2.
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Information
to be Provided by or Actions of the Counterparty. The
Counterparty hereby covenants to perform the following with respect
to
each Transaction:
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(a)
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Prior
to printing the related Prospectus
Supplement,
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(i)
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the
Counterparty shall provide to the related Depositor such information
regarding the Counterparty, as a derivative instrument counterparty,
as is
reasonably requested by the related Depositor for the purpose of
compliance with Item 1115(a)(1) of Regulation AB. Such
information shall include:
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(A)
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the
Counterparty’s legal name (and any
d/b/a);
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(B)
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the
organizational form of the
Counterparty;
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(C)
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a
description of the general character of the business of the
Counterparty;
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(ii)
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if
requested by the related Depositor (after the aggregate “significance
percentage”, determined absent manifest error, of all derivative
instruments provided by Counterparty and any of its affiliates to
the SPV
is 8.00% or more in respect of Item 1115(b)(1), or 18.00% or more
in
respect of Item 1115(b)(2)) for the purpose of compliance with Item
1115(b) with respect to a Transaction, the Counterparty
shall:
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(A)
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provide
the financial data required by and which complies in all material
respects
with Item 1115(b)(1) or (b)(2) of Regulation AB (as applicable) with
respect to the Counterparty and any affiliated entities providing
derivative instruments to the SPV (the “Company Financial Information”),
in a form appropriate for use in the Prospectus Supplement and in
Microsoft Word or Microsoft Excel form;
and
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(B)
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if
applicable, cause its accountants to issue their consent to the filing
or
incorporation by reference of such financial statements in the
Registration Statement.
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(b)
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Following
the Closing Date and until the related Depositor takes the steps
necessary
to suspend its obligation to file Exchange Act Reports, with respect
to
the SPV, under Sections 13 and 15(d) of the Exchange Act with respect
to a
Transaction,
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(i)
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if
the Counterparty provided Company Financial Information to the related
Depositor for the Prospectus Supplement, within ten Business Days
of the
release of any updated financial data, the Counterparty shall (1)
provide
current Company Financial Information as required by and which complies
in
all material respects with Item 1115(b) of Regulation AB to the related
Depositor in Microsoft Word or Microsoft Excel form, and (2) if
applicable, cause its accountants to issue their consent to filing
or
incorporation by reference of such financial statements in the Exchange
Act Reports of the SPV; and
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(ii)
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if
the related Depositor requests Company Financial Information from
the
Counterparty (after the aggregate “significance percentage”, determined
absent manifest error, of all derivative instruments provided by
Counterparty and any of its affiliates to the SPV is 8.00% or more
in
respect of Item 1115(b)(1), or 18.00% or more in respect of Item
1115(b)(2)), for the purpose of compliance with Item 1115(b) of Regulation
AB following the Closing Date, the Counterparty shall upon ten Business
Days written notice either (A), (1) provide current Company Financial
Information as required by and which complies in all material respects
with Item 1115(b) of Regulation AB to the related Depositor in Microsoft
Word or Microsoft Excel form, (2) if applicable, cause its accountants
to
issue their consent to filing or incorporation by reference of such
financial statements in the Exchange Act Reports of the SPV and (3)
within
ten Business Days of the release of any updated financial data, provide
current Company Financial Information as required by and which complies
in
all material respects with Item 1115(b) of Regulation AB to the related
Depositor in Microsoft Word or Microsoft Excel form and if applicable,
cause its accountants to issue their consent to filing or incorporation
by
reference of such financial statements in the Exchange Act Reports
of the
SPV or (B) assign the Derivative Agreement or obtain a unconditional
guarantee of a parent company as provided in Section 2(c)
below.
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(c)
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If
the Counterparty has failed to deliver any information, report, or
accountants’ consent when and as required under Section 2(a) or (b), which
continues unremedied for the lesser of five Business Days after the
date
on which such information, report, or accountants’ consent was required to
be delivered and such period (as specified in a prior written notice
by
the applicable Depositor or SPV to the Counterparty) in which the
applicable Exchange Act Report for which such information is required
can
be timely filed (without taking into account any extensions permitted
to
be filed), then the Counterparty shall, at its own cost, within the
period
in which the applicable Exchange Act Report for which such information
is
required can be timely filed, either cause another entity to replace
the
Counterparty as party to the Derivative Agreement or obtain a full
and
unconditional guaranty of a parent company to honor the Counterparty’s
obligations under the Derivative Agreement; provided that, with respect
to
the guaranty of a parent company, if the financial information is
not
separately presented for the derivative counterparty then each of
the
requirements set forth in Rule 3-10(b) or 3-10(c) of Regulation S-X,
as
applicable, shall be satisfied, including with respect to the parent,
the
Counterparty and the financial statements of the parent (as though
the
Counterparty were the issuer of registered securities), in each case
to or
from, as applicable, an entity that (i) has signed an agreement with
CHL
and the Depositors substantially in the form of this Agreement and
(ii)
has agreed to deliver any information, report, certification or
accountants’ consent when and as required under this Section 2 hereof, on
terms substantially similar to the Derivative
Agreement. Counterparty agrees that the related Derivative
Agreement shall provide that failure to take the actions provided
in this
Section 2(c) shall be an Additional Termination Event (as defined
in the
Master Agreement) as provided in the related Master Agreement for
each
Transaction.
|
(d)
|
In
the event that the Counterparty or the SPV has found a
replacement entity in accordance with Section 2(c), the Counterparty
shall
promptly reimburse the SPV for all reasonable incidental expenses
incurred
by the SPV, as such are incurred, in connection with the termination
of
the Counterparty as counterparty and the entry into a new Derivative
Agreement. The provisions of this paragraph shall not limit
whatever rights the SPV may have under other provisions of this Agreement
or otherwise, whether in equity or at law, such as an action for
damages,
specific performance or injunctive
relief.
|
Section
3.
|
Representations
and Warranties and Covenants of the
Counterparty.
|
(a)
|
The
Counterparty represents and warrants to the related Depositor, as
of the
date on which information is first provided to the related Depositor
under
Section 2(a)(ii), Section 2(b)(i) or Section 2(b)(ii)(A), that, except
as
disclosed in writing to the related Depositor prior to such
date:
|
(i)
|
If
applicable, the accountants who certify the financial statements
and
supporting schedules included in the Company Financial Information
(if
applicable) are independent registered public accountants as required
by
the Securities Act.
|
(ii)
|
If
applicable, the financial statements included in the Company Financial
Information present fairly the consolidated financial position of
the
Counterparty (or the entity that consolidates the Counterparty) and
its
consolidated subsidiaries as at the dates indicated and the consolidated
results of their operations and cash flows for the periods specified;
except as otherwise stated in the Company Financial Information,
said
financial statements have been prepared in conformity with generally
accepted accounting principles (“GAAP”) applied on a consistent basis; and
the supporting schedules included in the Company Financial Information
present fairly in accordance with GAAP the information required to
be
stated therein. The selected financial data and summary
financial information included in the Company Financial Information
present fairly the information shown therein and have been compiled
on a
basis consistent with that of the audited financial statements of
the
Counterparty.
|
(iii)
|
If
applicable, the Company Financial Information and other Company
Information included or incorporated by reference in the Registration
Statement (including through filing on an Exchange Act Report), at
the
time they were or hereafter are filed with the Commission, complied
in all
material respects with the requirements of Item 1115(b) of Regulation
AB
(in the case of the Company Financial Information) and, did not 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 in order
to make
the statements therein, in the light of the circumstances under which
they
were made, not misleading.
|
(b)
|
If
applicable, the Counterparty represents and warrants to the related
Depositor, as of the date on which it has obtained a full and
unconditional guaranty of a parent company to honor Counterparties
obligations under the Derivative Agreement as a remedy to failing
to
deliver any information, report, or accountants’ consent when and as
required under Section 2(a) or (b), that the requirements of Rule
3-10(b)
or 3-10(c) of Regulation S-X, as applicable, have been satisfied
with
respect to the omission of the financial information of the Counterparty
(assuming the Counterparty is treated as the Issuer of the registered
security under Rule 3-10).
|
Section
4.
|
Indemnification;
Remedies
|
(a)
|
The
Counterparty shall indemnify CHL and the related Depositor, each
person
responsible for execution of a certification pursuant to Rule 13a-14(d)
or
Rule 15d-14(d) under the Exchange Act; each person who controls any
of
such parties (within the meaning of Section 15 of the Securities
Act and
Section 20 of the Exchange Act); and the respective present and former
directors, officers, employees and agents of each of the foregoing
(each,
a “Countrywide Indemnified Party”), and shall hold each of them harmless
from and against any losses, damages, penalties, fines, forfeitures,
legal
fees and expenses and related costs, judgments, and any other costs,
fees
and expenses that any of them may sustain arising out of or based
upon:
|
(i)
|
(A)
any untrue statement of a material fact contained or alleged to be
contained in any information, report, accountants’ consent or other
material provided in written or electronic form under Section 2(a)
or (b)
by or on behalf of the Counterparty (collectively, the “Company
Information”), or (B) the omission or alleged omission to state in
the Company Information a material fact required to be stated in
the
Company Information or necessary in order to make the statements
therein,
in the light of the circumstances under which they were made, not
misleading; or
|
(ii)
|
any
failure by the Counterparty to comply with Section 2; provided, however,
that notwithstanding anything to the contrary herein such indemnification
shall not cover any failure by the Counterparty to provide Company
Financial Information while the aggregate “significance percentage”, of
all derivative instruments provided by Counterparty and any of its
affiliates to the SPV is below 10.00% in respect of Item 1115(b)(1),
or
below 20.00% in respect of Item
1115(b)(2).
|
In
the
case of any failure of performance described in clause (a)(ii) of this Section,
the Counterparty shall promptly reimburse the related Depositor and each Person
responsible for execution of a certification pursuant to Rule 13a-14(d) or
Rule
15d-14(d) under the Exchange Act with respect to the SPV, for all costs
reasonably incurred by each such party in order to obtain the information,
report, certification, accountants’ consent or other material not delivered as
required by the Counterparty.
(b)
|
The
Depositor shall indemnify the Counterparty, each of its officers
and
directors and each person who controls the Counterparty (within the
meaning of Section 15 of the Securities Act and Section 20 of the
Exchange
Act) (each, a “Counterparty Indemnified Party”; and each of the
Countrywide Indemnified Party and the Counterparty Indemnified Party
shall
be referred to as the “Indemnified Party”), and shall hold each of them
harmless from and against any losses, damages, penalties, fines,
forfeitures, legal fees and expenses and related costs, judgments,
and any
other costs, fees and expenses that any of them may sustain arising
out of
or based upon any untrue statement or alleged untrue statement of
any
material fact contained in the Prospectus Supplement or any free
writing
prospectus with respect to the related Securities or the omission
or
alleged omission to state a material fact necessary in order to make
the
statements therein not misleading; provided, however, that the indemnity
set forth in this Section 4(b) shall not apply insofar as such losses,
claims, expenses, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged
untrue
statement of any material fact contained in the Company Information
or the
omission or alleged omission to state in the Company Information
a
material fact necessary in order to make the statements therein not
misleading and/or (ii) a breach of the representations set forth
in
Sections 3(a) above.
|
(c)
|
Promptly
after the Indemnified Party receives notice of the commencement of
any
such action, the Indemnified Party will, if a claim in respect thereof
is
to be made pursuant to this Agreement, promptly notify the indemnifying
party in writing of the commencement thereof. In case any such
action is brought against the Indemnified Party, and it notifies
the
indemnifying party of the commencement thereof, the indemnifying
party
shall be entitled to appoint counsel of the indemnifying party’s choice at
the indemnifying party’s expense to represent the Indemnified Party in any
action for which indemnification is sought (in which case the indemnifying
party shall not thereafter be responsible for the fees and expenses
of any
separate counsel retained by the Indemnified Party except as set
forth
below); provided, however, that such counsel shall be reasonably
satisfactory to the Indemnified Party. Notwithstanding the
indemnifying party’s election to appoint counsel to represent the
Indemnified Party in an action, the Indemnified Party shall have
the right
to employ separate counsel (including local counsel), and the indemnifying
party shall bear the reasonable fees, costs and expenses of such
separate
counsel if (i) the use of counsel chosen by the indemnifying party
to
represent the Indemnified Party would present such counsel with a
conflict
of interest, (ii) the actual or potential defendants in, or targets
of,
any such action include both the Indemnified Party and the indemnifying
party, and the Indemnified Party shall have reasonably concluded
that
there may be legal defenses available to it that are different from
or
additional to those available to the indemnifying party, (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory
to the Indemnified Party to represent the Indemnified Party within
a
reasonable time after notice of the institution of such action or
(iv) the
indemnifying party shall authorize the Indemnified Party to employ
separate counsel at the expense of the indemnifying party. The
indemnifying party will not, without the prior written consent of
the
Indemnified Party, settle or compromise or consent to the entry of
any
judgment with respect to any pending or threatened claim, action,
suit or
proceeding in respect of which indemnification or contribution may
be
sought hereunder (whether or not the Indemnified Party is an actual
or
potential party to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each
Indemnified Party from all liability arising out of such claim, action,
suit or proceeding. In addition, for so long as the
indemnifying party is covering all costs and expenses of the Indemnified
Party as provided herein, no Indemnified Party will settle or compromise
or consent to the entry of any judgment with respect to any pending
or
threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder without the
consent of the indemnifying party, which consent shall not be unreasonably
withheld.
|
(d)
|
Nothing
in this agreement shall be construed to allow the Indemnified Party
to
recover punitive damages or consequential damages from the indemnifying
party.
|
(e)
|
Any
failure by the Counterparty to deliver any information, report,
accountants’ consent or other material when and in any case only as
required under Section 2(a) or (b) or any breach by the Counterparty
of a
representation or warranty set forth in Section 3 and made as of
a date
prior to the Closing Date, to the extent that such breach is not
cured by
the Closing Date (or in the case of information needed for purposes
of
printing the Prospectus Supplement, the date of printing of the Prospectus
Supplement), shall immediately and automatically, without notice
or grace
period, constitute an Additional Termination Event (as defined in
the
Master Agreement) with the Counterparty as the sole Affected Party
(as
defined in the Master Agreement) under the Derivative
Agreement. Following such termination, a termination payment
(if any) shall be payable by the applicable party as determined by
the
application of Section 6(e)(ii) of the Master Agreement, with Market
Quotation and Second Method being the applicable method for determining
the termination payment (notwithstanding anything in the Derivative
Agreement to the contrary).
|
Section
5.
|
Miscellaneous.
|
(a)
|
Company
Financial Information. Notwithstanding anything to the contrary
contained herein, if Regulation AB is amended, or the Commission
has
issued interpretive guidance uniformly applicable to registrants
of
Asset-Backed Securities allowing the presentation of the financial
information required by Item 1115 of Regulation AB with respect to
an
affiliate of the Counterparty (a “Permitted Entity”) rather than the
Counterparty and any affiliated entities providing derivatives to
the SPV,
"Company Financial Information" shall be deemed to refer to the financial
information of such Permitted Entity provided the Counterparty has
received written confirmation from CHL that no amendment to this
Agreement
is necessary. The parties shall reasonably cooperate with
respect to any amendments to this Agreement to reflect such amendment
or
interpretation.
|
(b)
|
Incorporation
by Reference. The Counterparty agrees that upon its consent the
terms of this Agreement shall be incorporated by reference into any
Derivative Agreement so that each SPV who is a beneficiary of a Derivative
Agreement shall be an express third party beneficiary of this
Agreement. For avoidance of doubt, any Transaction where the
Counterparty does not consent to the incorporation by reference of
this
Agreement shall not be governed by this
Agreement.
|
(c)
|
Construction. Throughout
this Agreement, as the context requires, (a) the singular tense and
number
includes the plural, and the plural tense and number includes the
singular; (b) the past tense includes the present, and the present
tense
includes the past; and (c) references to parties, sections, schedules,
and
exhibits mean the parties, sections, schedules, and exhibits of and
to
this Agreement. The section headings in this Agreement are inserted
only
as a matter of convenience, and in no way define, limit, extend,
or
interpret the scope of this Agreement or of any particular
section.
|
(d)
|
Assignment. None
of the parties may assign their rights under this Agreement without
the
prior written consent of the other parties. Subject to the foregoing,
this
Agreement shall be binding on and inure to the benefit of the parties
and
their respective successors and permitted
assigns.
|
(e)
|
No
Third-Party Benefits Except as Specified. None of the
provisions of this Agreement are intended to benefit, or to be enforceable
by, any third-party beneficiaries except the related SPV and any
trustee
of an SPV or any Administrator.
|
(f)
|
Governing
Law. This Agreement and, to the fullest extent permitted by applicable
law, all matters arising out of or related in any way to this Agreement
shall be governed by and construed in accordance with the internal
laws of
the State of New York without regard to the conflict of laws principles
thereof.
|
(g)
|
Waiver
of Trial By Jury. Insofar as is permitted by law, each party irrevocably
waives any and all rights to trial by jury in any legal proceeding
in
connection with this Agreement, and acknowledges that this waiver
is a
material inducement to the other party’s entering into this Agreement
hereunder.
|
(h)
|
Jurisdiction. With
respect to any suit, action or proceeding relating to this Agreement,
each
party irrevocably submits to the jurisdiction of courts in the State
of
New York and the United States District Court located in the Borough
of
Manhattan in New York City.
|
(i)
|
Amendment
and Waiver. This Agreement may not be modified or amended
except by an instrument in writing signed by the parties hereto.
No waiver
of any provision of this Agreement or of any rights or obligations
of any
party under this Agreement shall be effective unless in writing and
signed
by the party or parties waiving compliance, and shall be effective
only in
the specific instance and for the specific purpose stated in that
writing.
|
(j)
|
Counterparts. This
Agreement may be executed in one or more counterparts, each of which
shall
be deemed an original, but all of which together shall constitute
one and
the same instrument.
|
(k)
|
Additional
Documents. Each party hereto agrees to execute any and all
further documents and writings and to perform such other actions
which may
be or become reasonably necessary or expedient to effectuate and
carry out
this Agreement.
|
(l)
|
Severability. Any
provision hereof which is prohibited or unenforceable shall be ineffective
only to the extent of such prohibition or unenforceability without
invalidating the remaining provisions
hereof.
|
(m)
|
Integration. This
Agreement contains the entire understanding of the parties with respect
to
the subject matter hereof. There are no restrictions, agreements,
promises, representations, warranties, covenants or undertakings
with
respect to the subject matter hereof other than those expressly set
forth
or referred to herein. This Agreement supersedes all prior agreements
and
understandings between the parties with respect to its subject
matter.
|
IN
WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
by their respective officers thereunto duly authorized as of the day and year
first above written.
CWABS,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title: Executive
Vice President
|
|||
CWMBS,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title: Executive
Vice President
|
|||
CWALT,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
CWHEQ,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
COUNTRYWIDE
HOME LOANS, INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
CREDIT
SUISSE INTERNATIONAL
|
|||
By:
|
/s/
Xxxxxx Xxxxxxxxx
|
||
Name:
Xxxxxx
Xxxxxxxxx
|
|||
Title:
Authorized Signatory
|
|||
By: | /s/ Bik Xxxx Xxxxx | ||
Name: Bik Xxxx Xxxxx | |||
Title: Authorized Signatory |
EXHIBIT
A
This
supplement dated as of March 30, 2007 (this "Supplement") to the Master Item
1115 Agreement dated as of November 28, 2006 (the "Master Agreement"), between
COUNTRYWIDE HOME LOANS, INC., a New York corporation ("CHL"), CWABS, INC.,
a
Delaware corporation ("CWABS"), CWMBS, Inc., a Delaware corporation ("CWMBS"),
CWALT, Inc., a Delaware corporation ("CWALT"), CWHEQ, Inc., a Delaware
corporation ("CWHEQ") and Credit Suisse International, as counterparty (the
"Counterparty") supplements and forms part of the Master
Agreement. Capitalized terms used but not defined herein shall have
the meanings set forth in the Master Agreement.
The
undersigned hereby acknowledge and agree that each of the following entities
shall be Transactions under the Master Agreement and that all of the terms
of
the Master Agreement shall apply to each:
1. CWMBS,
Inc. CHL Mortgage Pass-Through Trust 2007-4
IN
WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
by their respective officers thereunto duly authorized as of the day and year
first above written.
CWABS,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
CWMBS,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
CWALT,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
CWHEQ,
INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||
COUNTRYWIDE
HOME LOANS, INC.
|
|||
By:
|
/s/
Xxxxxx Xxxxx
|
||
Name:
Xxxxxx Xxxxx
|
|||
Title:
Executive Vice President
|
|||