SCHEDULE to the Master Agreement dated as of March 30, 2007 between LEHMAN BROTHERS SPECIAL FINANCING INC. (“Party A”), a corporation organized under the laws of the State of Delaware and
EXHIBIT
99.4
(Multicurrency-Cross
Border)
SCHEDULE
to
the
dated
as
of March 30, 2007
between
XXXXXX
BROTHERS SPECIAL FINANCING INC. (“Party A”),
a
corporation organized under the laws of
the
State
of Delaware
and
THE
BANK
OF NEW YORK, not in its individual or corporate capacity but solely as Swap
Contract Administrator and Corridor Contract Administrator for CWABS
Asset-Backed Certificates Trust 2007-6
(“Party
B”)
All
terms used herein and not otherwise defined are given their meaning in
the All
terms used
herein and not otherwise defined are given their meaning in the Pooling and
Servicing Agreement dated as of March 1, 2007 among CWABS, Inc. as depositor,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans, Inc. as a seller, Countrywide Home Loans Servicing LP, as Master
Servicer, The Bank of New York, as Trustee and The Bank of New York Trust
Company, N.A., as Co-Trustee (the “Pooling and Servicing
Agreement”)
Part
1: Termination Provisions
In
this
Agreement:-
(a)
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“Specified
Entity” means in relation to Party A for the purpose
of:-
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Section
5(a)(v),
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Not
applicable.
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Section
5(a)(vi),
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Not
applicable.
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Section
5(a)(vii),
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Not
applicable.
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Section
5(b)(iv),
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Not
applicable.
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and
in
relation to Party B for the purpose of:-
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Section
5(a)(v),
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Not
applicable.
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Section
5(a)(vi),
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Not
applicable.
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Section
5(a)(vii),
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Not
applicable.
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Section
5(b)(iv),
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Not
applicable.
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(b)
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“Specified
Transaction” will have the meaning specified in Section 14 of this
Agreement.
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(c)
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(i) The
“Failure to Pay” provisions of Section 5(a)(i) will apply to Party A and
Party B; provided, however, that Section 5(a)(i) is hereby amended
by
replacing the word “third” with the word
“first.”
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(ii) The
“Breach of Agreement” provisions of Section 5(a)(ii) will apply to Party A and
will not apply to Party B.
(ii) The
“Credit Support Default” provisions of Section 5(a)(iii) will apply to Party A
and will not apply to Party B; provided however, that with respect to any credit
support annex, it will only apply in the event that such failure is not remedied
on or before the third Local Business Day after notice of such failure is given
to Party A.
(iii) The
“Misrepresentation” provisions of Section 5(a)(iv) will
apply to Party A and will not apply to Party B.
(iv) The
“Default under Specified Transaction” provisions of Section
5(a)(v) will apply to Party A and will not apply to Party
B.
(v) “Cross
Default” provisions of Section 5(a)(vi) will apply to Party A
and will not apply to Party B.
“Specified
Indebtedness” will have the meaning specified in Section 14 of this
Agreement.
“Threshold
Amount” means the lesser of (i) USD 100 million and (ii) two percent
(2%) of the Stockholders’ Equity of Xxxxxx Brothers Holdings Inc. (“Xxxxxx
Brothers Holdings Inc.” or “Holdings”), in the case of Party A and Holdings (or
its equivalent in any other currency).
(vi) The
“Bankruptcy” provision of Section 5(a)(vii)(2) will not
apply to Party B.; provided that clauses (2), (7) and (9) thereof shall not
apply to Party B. Clause (4) of Section 5(a)(vii) will not
apply to Party B to the extent that it refers to proceedings or petitions
instituted or presented by Party A or any of its Affiliates. Clause
(6) of Section 5(a)(vii) will not apply to Party B to the extent that it refers
to (i) any appointment that is contemplated or effected by the Pooling and
Servicing Agreement or (ii) any appointment to which Party B has not become
subject. Clause (8) of Section 5(a)(vii) will not apply to Party B to the extent
that it applies to Section 5(a)(vii)(2), (4), (6), and (7) (except to the extent
that such provisions are not disapplied with respect to Party B).
(vii)
The
“Merger without Assumption” provisions of Section
5(a)(viii) will apply to Party A and will apply to Party B.
(viii) Notwithstanding
Sections 5(a)(i) and 5(a)(iii), any failure by Party A to comply with or perform
any obligation to be complied with or performed by Party A under any credit
support annex from time to time entered into between Party A and Party B in
relation to this Master Agreement shall not be an Event of Default unless (A)
part (b)(ii) of the definition of Hedge Counterparty Ratings Requirement (as
defined in Part 5(f) below) apply and at least 30 Local Business Days have
elapsed since the last time part (ii) of the definition of Hedge Counterparty
Ratings Requirement did not apply and (B) such failure is not remedied on or
before the third Local Business Day after notice of such failure is given to
Party A.
(d)
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(i)
The “Illegality” provisions of Section 5(b)(i)
will apply to Party A and will apply to Party
B.
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(ii)
The
“Tax Event” provisions of Section 5(b)(ii) will apply to both parties provided
that the words “(x) any action taken by a taxing authority, or brought in a
court of competent jurisdiction, on or after the date on which a Transaction
is
entered into (regardless of whether such action is taken or brought with respect
to a party to this Agreement or (y)” shall be deleted.
(iii)
The
“Tax Event Upon Merger” provisions of Section 5(b)(iii) will
apply to both parties, provided that Party A shall not be entitled to designate
an Early Termination Date by reason of a Tax Event upon Merger in respect of
which it is the Affected Party.
Section
6(b)(ii) will apply, provided that the words “or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party” shall be
deleted.
(iv)
The
“Credit Event Upon Merger” provisions of Section 5(b)(iv) will
not apply to Party A and will not apply to Party B.
(e)
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The
“Automatic Early Termination” provision of Section 6(a)
will not apply to Party A and will not apply to Party
B.
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(f)
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Payments
on Early Termination.
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(A) For
the purpose of Section 6(e) of this Agreement, Market Quotation and
Second Method will apply.
2
(B) Calculations. Notwithstanding
Section 6 of this Agreement, so long as Party A is (A) the Affected Party in
respect of an Additional Termination Event or a Tax Event Upon Merger or (B)
the
Defaulting Party in respect of any Event of Default, paragraphs (i) to (vi)
below shall apply:
(i) The
definition of “Market Quotation” shall be deleted in its entirety and replaced
with the following:
“Market
Quotation” means, with respect to one or more Terminated Transactions,
a Firm Offer which is (1) made by a Reference Market-maker, (2) for an amount
that would be paid to Party B (expressed as a negative number) or by Party
B
(expressed as a positive number) in consideration of an agreement between Party
B and such Reference Market-maker to enter into a transaction (the “Replacement
Transaction”) that would have the effect for preserving for such party the
economic equivalent of any payment or delivery (whether the underlying
obligation was absolute or contingent and assuming the satisfaction of each
applicable condition precedent) by the parties under Section 2(a)(i) in respect
of such Termination transactions or group of Terminated Transactions that would,
but for the occurrence of the relevant Early Termination Date, have been
required after that Date, (3) made on the basis that Unpaid Amounts in respect
of the Terminated Transaction or group of Transactions are to be excluded but,
without limitation, any payment or delivery that would, but for the relevant
Early Termination Date, have been required (assuming satisfaction of each
applicable condition precedent) after that Early Termination Date is to be
included and (4) made in respect of a Replacement Transaction with terms
substantially the same as those of this Agreement (save for the exclusion of
provisions relating to Transactions that are not Terminated
Transactions).”
(ii) The
definition of “Settlement Amount” shall be deleted in its entirety and replaced
with the following:
3
““Settlement
Amount” means, with respect to any Early Termination Date, an amount
(as determined by Party B) equal to the Termination Currency Equivalent of
the
amount (whether positive or negative) of any Market Quotation for the relevant
Terminated Transaction or group of Terminated Transactions that is accepted
by
Party B so as to become legally binding, provided that:
(1) If,
on the day falling ten Local Business Days after the day on which the Early
Termination Date is designated or such later day as Party B may specify in
writing to Party A (but in either case no later than the Early Termination
Date)
(such day the “Latest Settlement Amount Determination Day”), no
Market Quotation for the relevant Terminated Transaction or group of Terminated
Transactions has been accepted by Party B so as to become legally binding and
one or more Market Quotations have been made and remain capable of becoming
legally binding upon acceptance, the Settlement Amount shall equal the
Termination Currency Equivalent of the amount (whether positive or negative)
of
the lowest of such Market Quotations; and
(2) If,
on the Latest Settlement Amount Determination Day, no Market Quotation for
the
relevant Terminated Transaction or group of Terminated Transactions is accepted
by Party B so as to become legally binding and no Market Quotations have been
made and remain capable of becoming legally binding upon acceptance, the
Settlement Amount shall equal Party B’s Loss (whether positive or negative and
without reference to any Unpaid amounts) for the relevant Terminated Transaction
or group of Terminated Transactions.
(iii) For
the purpose of paragraph (4) of the definition of Market Quotation, Party B
shall determine in its sole discretion, acting in a commercially reasonable
manner, whether a Firm Offer is made in respect of a Replacement Transaction
with commercial terms substantially the same as those of this Agreement (save
for the exclusion of provisions relating to Transactions that are not Terminated
Transactions).
(iv) At
any time on or before the Latest Settlement Amount Determination Day at which
two or more Market Quotations remain capable of becoming legally binding upon
acceptance, Party B shall be entitled to accept only the lowest of such Market
Quotations.
(v) if
Party B requests Party A in writing to obtain Market Quotations, Party A shall
use its reasonable efforts to do so before the Latest Settlement Amount
Determination Day.
(vi) If
the Settlement Amount is a negative number, Section 6(e)(i)(3) of this Agreement
shall be deleted in its entirety and replaced with the following:
“Second
Method and Market Quotation”. If Second Method and Market Quotation
apply, (1) Party B shall pay to Party A an amount equal to the absolute value
of
the Settlement Amount in respect of the Terminated Transactions, (2) Party
B
shall pay to Party A the Termination Currency Equivalent of the Unpaid Amounts
owing to Party A and (3) Party A shall pay to Party B the Termination Currency
Equivalent of the Unpaid Amounts owing to Party B, provided that, (i) the
amounts payable under (2) and (3) shall be subject to netting in accordance
with
Section 2(c) of this Agreement and (ii) notwithstanding any other provision
of
this Agreement, any amount payable by Party A under (3) shall not be netted
against any amount payable by Party B under (1).”
(f)
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“Termination
Currency” means USD.
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(g)
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Additional
Termination Events will apply. Each of the following shall
constitute an Additional Termination
Event:
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4
(A) (I) S&P Collateralization
Event. An S&P Collateralization Event has occurred and
is continuing and Party A has failed to comply with or perform any obligation
to
be complied with or performed by Party A in accordance with the “Downgrade
Provisions” as set forth in Part 5(f)(ii) and a Ratings Event has neither
occurred nor is continuing. Any event which constitutes an Additional
Termination Event pursuant to this Section 1(h) (A)(I) shall not constitute
an
Event of Default.
(II) Moody’s
Collateralization Event. A Moody’s Collateralization Event
has occurred and is continuing, and Party A has failed to comply with or perform
any obligation to be complied with or performed by Party A in accordance with
the “Downgrade Provisions” as set forth in Part 5(f)(ii) and either (i) no
Moody’s Ratings Event has occurred and is continuing or (ii) less than 30 Local
Business Days have elapsed since the last time that a Moody’s Ratings Event had
occurred and was continuing. Any event which constitutes an
Additional Termination Event pursuant to this Section 1(h) (A)(II) shall not
constitute an Event of Default.
(III) Ratings
Event. (i) A Ratings Event has occurred and is continuing and 30 or
more Local Business Days (or 10 Business Days in the case of an S&P Ratings
Event) have elapsed since the last time that a Ratings Event had occurred and
was continuing and (ii) at least one Eligible Replacement has made a Firm
Offer (which remains capable of becoming legally binding upon
acceptance) to be the transferee of a transfer to be made in accordance with
the
terms hereof. Any event which constitutes an Additional Termination
Event pursuant to this Section 1(h) (A) (III) shall not constitute an Event
of
Default.
For
the
purpose of the foregoing Termination Events, Party A shall be the sole Affected
Party.
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(B)
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Amendment
or Supplement to Pooling and Servicing Agreement without Party
A’s
Prior Written Consent. Party B enters into a
supplemental Pooling and Servicing Agreement or other modification
to the
Pooling and Servicing Agreement that could reasonably be expected
to have
a material adverse effect on Party A without at least ten (10) Business
Days’ prior notice to Party A and the prior written consent of Party
A where such
consent is required under the Pooling and Servicing Agreement. For
the
purpose of the foregoing Termination Event, Party B shall be the
sole
Affected Party.
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(C)
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Return
of Collateral. Party B or its Custodian fails to
transfer any Return Amount pursuant to the terms of the Credit Support
Annex following any applicable notice, cure and grace periods provided
for
thereunder. For the purpose of the foregoing Termination Event, Party
B
shall be the sole Affected Party
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5
Part
2: Tax Representations
(a)
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Payer
Tax Representations. For the purpose of Section
3(e) of this Agreement, Party A and Party B will each make the
following representation: None.
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(b)
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Payee
Tax Representations. For the purpose of Section
3(f) of this Agreement, Party A represents that it is a corporation
duly organized and validly existing under the laws of the State of
Delaware.
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(c)
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Tax
Representations in Confirmations. For purposes of Sections
2(d)(i)(4) and 3(f), any payee tax representation specified in
a Confirmation under this Agreement shall be deemed to be specified
in
this Schedule.
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(d)
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Gross
Up. Section 2(d)(i)(4) shall not apply to Party B as X, and
Section 2(d)(ii) shall not apply to Party B as Y, in each case such
that
Party B shall not be required to pay any additional amounts referred
to
therein.
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(e)
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Indemnificable
Tax. The definition of “Indemnifiable Tax” in Section
14 is deleted in its entirety and replaced with the
following:
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“Indemnifiable
Tax” means, in relation to payments by Party A, any Tax and, in relation to
payments by Party B, no Tax.
6
Part
3: Agreement to Deliver Documents
For
the
purpose of Sections 4(a)(i) and (ii) of this Agreement, each party
agrees to deliver the following documents, as applicable:-
(a)
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Tax
forms, documents or certificates to be delivered
are:-
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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 and Party B
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Forms
and/or documents described in Section 4(a)(iii) of the
Agreement.
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Upon
reasonable demand by the other
party.
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(b)
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Other
documents to be delivered are:-
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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)
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Party
A and Party B
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For
each party, an incumbency certificate with respect to each signatory
to
this Agreement and the Credit Support Documents.
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Upon
execution of this Agreement.
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Yes
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Party
A
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A
copy of the annual report of its Credit Support Provider containing
audited consolidated financial statements for such fiscal year certified
by independent public accountants and prepared in accordance with
generally accepted accounting principles consistently
applied.
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Upon
request.
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Yes
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Party
A
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For
its most recent fiscal quarter, a copy of the unaudited financial
statements of its Credit Support Provider, prepared in
accordance with generally accepted accounting principles consistently
applied.
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Upon
request.
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Yes
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7
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)
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Party
A and Party B
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(i)
In the case of Party A, a copy of the resolutions or other
action of the board of directors of each of Party A and its
Credit Support Provider and (ii) in the case of Party B, (x) a resolution
of the board of directors certified by a secretary or assistant secretary
of Party B, or (y) an Pooling and Servicing Agreement or other document
of
Party B, pursuant to which Party B is authorized to enter into this
Agreement, each Credit Support Document to which it is a party, and
each
Transaction from time to time entered into hereunder (the “Authorizing
Resolution”).
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Upon
execution of this Agreement.
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Yes
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Party
A
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A
guarantee of Holdings substantially in the form of Exhibit A to
this Schedule.
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Upon
execution of this Agreement
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No
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Party
A
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An
opinion of counsel to Party A substantially in the form of Exhibit
C to
this Schedule.
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Upon
execution of this Agreement
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No
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Party
B
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An
opinion of counsel to Party B substantially in the form of Exhibit
B to
this Schedule.
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Upon
execution of this Agreement
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No
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Party
B
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Monthly
Report
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At
such time as each is delivered to the Trustee
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Yes
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Party
B
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Copy
of any notice delivered under the Pooling and Servicing Agreement
that
impacts this agreement.
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Upon
availability
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Party
B
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All
reports that go to the Rating Agencies.
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As
applicable.
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Yes
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Party
B
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Each
material amendment, supplement or waiver to the Pooling and Servicing
Agreement, as proposed from time to time.
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Promptly
upon learning of any proposed amendment, supplement or
waiver.
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No
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Part
4: Miscellaneous
(a)
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Addresses
for Notices. For the purpose of Section 12(a)
of this Agreement:-
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Address
for notices or communications to Party
A:-
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8
Address:
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Xxxxxx
Brothers Special Financing Inc.
c/x
Xxxxxx Brothers Inc.
Corporate
Advisory Division
Transaction
Management Group
000
Xxxxxxx Xxxxxx
Xxx
Xxxx, Xxx Xxxx 00000
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Attention:
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Documentation
Manager
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Telephone
No.:
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(000)
000-0000
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Facsimile
No.:
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(000)
000-0000
For
all purposes.
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Address
for notices or communications to Party B:-
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||
Address:
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The
Bank of New York
000
Xxxxxxx Xxxxxx
Xxx
Xxxx, XX 00000
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Attention:
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Corporate
Trust Administration MBS Administration, CWABS, Series
2007-6
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Telephone
No.:
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(000)
000-0000
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Facsimile
No.:
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(000)
000-0000
For
all purposes.
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(b)
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Process
Agent. For the purpose of Section 13(c) of this
Agreement:-
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Party
A
appoints as its Process Agent: Not applicable.
Party
B
appoints as its Process Agent: Not applicable.
(c)
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Offices. The
provisions of Section 10(a) will apply to this
Agreement.
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(d)
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Multibranch
Party. For the purpose of Section 10(c) of this
Agreement:-
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Party
A
is not a Multibranch Party.
Party
B
is not a Multibranch Party.
(e)
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Calculation
Agent. The Calculation Agent is Party
A.
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(f)
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Credit
Support Document.
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In
the
case of Party A: (1) A guarantee of Party A’s obligations hereunder
substantially in the form annexed hereto as Exhibit A to this Schedule or
any Eligible Guarantee. (2) The Credit Support Annex which supplements, forms
part of, and is subject to this Agreement.
In
the
case of Party B: From and including the date of its execution, the Pooling
and
Servicing Agreement.
(g)
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Credit
Support Provider.
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Credit
Support Provider means in relation to Party A: Holdings so long as
any subsidiary of Holdings is Party A or any other guarantor, if applicable,
under an Eligible Guarantee.
Credit
Support Provider means in relation to Party B: None.
9
(h)
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(i)
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Jurisdiction.
Section 13(b) is hereby amended by: (i) deleting in the
second line of subparagraph (i) thereof the word “non-”; and (ii) deleting
the final paragraph thereof.
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(j)
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Netting
of Payments. Subparagraph (ii) of Section 2(c) of
this Agreement will apply.
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(k)
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“Affiliate”
will have the meaning specified in Section 14 of this
Agreement,; provided, however, that (except for the purpose
of Part 1(c)(vi)) with respect to Party A, such definition shall
be
understood to exclude Xxxxxx Brothers Derivative Products Inc. and
Xxxxxx
Brothers Financial Products Inc.
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(l)
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Local
Business Day. The definition of Local Business Day in
Section 14 of this Agreement shall be amended by the addition of
the words
“or any Credit Support Document” after “Section 2(a)(i)” and the addition
of the words “or Credit Support Document” after
“Confirmation”.
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Part
5: Other Provisions
(a)
|
General
Conditions. Section 2(a)(iii) is hereby amended by (X)
inserting in the third line thereof after the words “and is continuing,
(2)” and before the words “the condition precedent” the following phrase
“the condition precedent that no Additional Termination Event has
occurred
and is continuing with respect to which the other party is an Affected
Party and with respect to which all outstanding Transactions are
Affected
Transactions, (3)” and (Y) delete the symbol “(3)” before the words “each
other applicable condition” and substitute the symbol “(4)” in lieu
thereof.
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(b)
|
Accuracy
of Specified Information. Section 3(d) is hereby amended
by inserting in the third line thereof after the words “in every material
respect” and before the period the phrase “or, in the case of audited or
unaudited financial statements, a fair presentation, in all material
respects, of the financial condition of the relevant
person.”
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(c)
|
No
Violation or Conflict Representation. Section 3(a)(iii) is
hereby amended by inserting in the second line thereof after the
words
“constitutional documents” and before the words “, any order or judgment”
the phrase “(including, but not limited to, the Pooling and Servicing
Agreement, as amended, and any and all resolutions, investment policies,
guidelines, procedures or restrictions)”; provided, such amendment
shall be applicable only with respect to the Representations of Party
B.
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(d)
|
Representations.Section
3 is hereby amended by adding the following subsections after
subsection (f) thereof:
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(g)
|
No
Agency. Party A is acting as principal and not as
agent when entering into this Agreement, any Credit Support Document
to
which it is a party, and each Transaction. Party B is acting
not in its individual capacity but solely as Swap Contract Administrator
and Corridor Contract Administrator on behalf of the CWABS Asset-Backed
Certificates Trust 2007-6.
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(h)
|
Eligible
Contract Participant. It is an “eligible contract participant”
within the meaning of Section 1a(12) of the Commodity Exchange Act,
as
amended.
|
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(i)
|
Non-Reliance. Party
A is acting for its own account and it has made its own independent
decisions to enter into each Transaction and as to whether that
Transaction is appropriate or proper for it based upon its own judgment
and upon advice from such advisors as it has deemed
necessary. Party B is acting not in its individual capacity but
solely as Swap Contract Administrator and Corridor Contract Administrator
on behalf of the CWABS Asset-Backed Certificates Trust
2007-6. It is not relying on any communication (written or
oral) of the other party as investment advice or a recommendation
to enter
into that Transaction. No communication (written or oral)
received from the other party shall be deemed to be an assurance
or
guarantee as to the expected results of that
Transaction.
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10
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(j)
|
Assessment
and Understanding. It is capable of assessing the
merits of and understanding (on its own behalf or through independent
professional advice), and understands and accepts, the terms, conditions
and risks of that Transaction. It is also capable of assuming,
and assumes, the risks of that
Transaction.
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(k)
|
Status
of Parties. The other party is not acting as a
fiduciary for or an adviser to it in respect of that
Transaction.
|
(e)
|
Additional
Representations and Warranties of Party B. Party B
represents to Party A in accordance with Section 3 of the Agreement
(which representations will be deemed to be repeated by Party B at
all
times until the termination of this Agreement)
that:
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|
(i)
|
Constitutional
Documents. Party B is in compliance, in all material
respects, with its constitutional documents (including, but not limited
to, the Pooling and Servicing Agreement, as amended from time-to-time,
and
any and all resolutions, investment policies, guidelines, procedures
or
restrictions), and each Transaction contemplated hereunder is and
will be
an authorized and permitted transaction thereunder and an Authorizing
Resolution is in full force and
effect.
|
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(ii)
|
Swap
Agreement. (i) this Agreement (and each Transaction entered into
hereunder) is either a Swap Contract or Corridor Contract and (iii)
the
obligations and liabilities of Party B under this Agreement and the
relevant Credit Support Documents constitute the secured obligations
of
Party B under the Pooling and Servicing Agreement and rank pari
passu with and equal in right and priority of payment with
all other Swap Contracts or Corridor Contracts, if any, under the
Pooling
and Servicing Agreement.
|
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(iii)
|
Compliance
with Laws. Party B is in compliance, in all respects,
with all applicable laws, rules, regulations, interpretations, guidelines,
procedures, and policies of applicable regulatory authorities affecting
Party B, this Agreement, the Transactions, or the performance of
Party B’s
obligations hereunder.
|
(f)
|
Downgrade
Provisions.
|
|
(i)
|
It
shall be a collateralization event (a “Collateralization
Event”) if:
|
(A)
with
respect to each Relevant Entity, either (i) the unsecured, unguaranteed and
otherwise unsupported short-term debt obligations of such Relevant Entity are
rated “A-2” or below by S&P or (ii) if such Relevant Entity does not have a
short-term rating from S&P, the unsecured, unguaranteed and otherwise
unsupported long-term senior debt obligations of Party A are rated “A” or
below by S&P (such event, an “S&P Collateralization
Event”), or
(B)
with
respect to each Relevant Entity, either (i) such Relevant Entity has both a
long-term and short-term rating by Moody’s and (x) the unsecured,
unguaranteed and otherwise unsupported long-term senior debt obligations of
such
Relevant Entity are rated “A3” or below by Moody’s or (y) the unsecured,
unguaranteed and otherwise unsupported short-term debt obligations of such
Relevant Entity are rated “P-2” or below by Moody’s, or (ii) no short-term
rating is available from Moody’s and the unsecured, unguaranteed and otherwise
unsupported long-term senior debt obligations of such Relevant Entity are rated
“A2” or below by Moody’s or (iii) such Relevant Entity has no rating by Moody’s
of its unsecured, unguaranteed and otherwise unsupported long-term senior debt
obligations (such event, a “Moody’s Collateralization Event”),
or
“Relevant
Entity”
means Party A or Party A’s Credit Support Provider, as applicable.
11
|
(ii)
|
Without
prejudice to Party A’s obligations under the Credit Support Annex, during
any period in which a Collateralization Event is occurring, Party A
shall, at its own expense and within thirty (30) Business Days of
such
Collateralization Event (or 30 calendar days, in the case of an S&P
Collateralization Event), either (i) post collateral according to
the
terms of the Credit Support Annex, (ii) furnish an Eligible Guarantee
(as
defined below) of Party A’s obligations under this Agreement from a
guarantor that satisfies the Hedge Counterparty Ratings Requirement
(as
defined below), or (iii) obtain a substitute counterparty (and provide
prior written notice to each Rating Agency with respect thereto)
that (a)
satisfies the Hedge Counterparty Ratings Requirement and (b) assumes
the
obligations of Party A under this Agreement (through an assignment
and assumption agreement in form and substance reasonably satisfactory
to
Party B) or replaces the outstanding Transactions hereunder with
transactions on identical terms, except that Party A shall be
replaced as counterparty, provided that such substitute counterparty,
as
of the date of such assumption or replacement, must not, as a result
thereof, be required to withhold or deduct on account of tax under
the
Agreement or the new transactions, as applicable, and such assumption
or
replacement must not lead to a termination event or event of default
occurring in respect of the new transactions, as applicable, provided
further, that in the case of an S&P Collateralization Event
satisfaction of the S&P Ratings Condition shall be required for any
transfer of any Transactions under this Part 5(f)(ii) unless such
transfer
is in connection with the assignment and assumption of this Agreement
by
such substitute counterparty without modification of its terms, other
than
the following terms: party name, dates relevant to the
effective date of such transfer, tax representations and any other
representations regarding the status of the substitute counterparty
of the
type included in this Part 5 and notice information (in which case,
Party
A shall provide written notice to S&P with respect
thereto).
|
“Eligible
Guarantee” means an unconditional and irrevocable guarantee (a) in a
form identical to that attached hereto as Exhibit A (except for the name,
address and the jurisdiction of the guarantor) or that otherwise satisfies
the
Rating Agency Condition or (b) that is provided by a guarantor as principal
debtor rather than surety and is directly enforceable by Party B, where either
(A) a law firm has given a legal opinion confirming that none of the guarantor’s
payments to Party B under such guarantee will be subject to withholding for
Tax
or (B) such guarantee provides that, in the event that any of such guarantor’s
payments to Party B are subject to withholding for Tax, such guarantor is
required to pay such additional amount as is necessary to ensure that the net
amount actually received by Party B (free and clear of any withholding tax)
will
equal the full amount Party B would have received had no such withholding been
required.
An
entity
shall satisfy the “Hedge Counterparty Ratings
Requirement” if (a) either (i) the unsecured,
unguaranteed and otherwise unsupported short-term debt obligations of the entity
are rated at least “A-1” by S&P or (ii) if the entity does not have a
short-term rating from S&P, the unsecured, unguaranteed and otherwise
unsupported long-term senior debt obligations of the entity are rated at least
“A+” by S&P and (b) either (i) the unsecured, unguaranteed and otherwise
unsupported long-term senior debt obligations of such entity are rated at least
“A3” by Moody’s and the unsecured, unguaranteed and otherwise unsupported
short-term debt obligations of such entity are rated at least “P-2” by Moody’s
(if such entity has both a long-term and short-term rating from Moody’s) or (ii)
if such entity does not have a short-term debt rating from Moody’s, the
unsecured, unguaranteed and otherwise unsupported long-term senior debt
obligations of such entity are rated at least “A3” by Moody’s. For
the purpose of this definition, no direct or indirect recourse against one
or
more shareholders of the entity (or against any Person in control of, or
controlled by, or under common control with, any such shareholder) shall be
deemed to constitute a guarantee, security or support of the obligations of
the
entity.
“S&P
Ratings Condition” shall mean prior written confirmation from S&P
that a proposed action will not cause the downgrade or withdrawal of the then
current ratings of any outstanding Notes.
“Rating
Agency” shall mean each of S&P and
Moody’s.
12
|
(iii)
|
It
shall be a ratings event (“Ratings Event”) if at any time
after the date hereof (A) the unsecured, unguaranteed and otherwise
unsupported long-term senior debt obligations of each Relevant Entity
is
downgraded below “BBB-” by S&P or the Relevant Entity is no longer
rated by S&P (such event, an “S&P Ratings Event”)
or (B) no Relevant Entity satisfies paragraph (b) of the definition
of
Hedge Counterparty Ratings Requirement (defined in Part 5(f)(ii)
above)
(such event, a “Moody’s Ratings
Event”).
|
|
(iv)
|
Following
a Ratings Event, Party A shall take the following
actions:
|
(a) in
the case of an S&P Ratings Event or if at any time after the date hereof
S&P withdraws all of the Relevant Entity’s ratings and no longer rates the
Relevant Entity, Party A, at its sole expense, shall (i) within 10 Business
Days of the Ratings Event, subject to extension upon S&P Ratings Condition,
obtain a substitute counterparty (and provide written notice to each Rating
Agency with respect thereto), that (A) satisfies the Hedge Counterparty Ratings
Requirement and (B) assumes the obligations of Party A under this Agreement
(through an assignment and assumption agreement in form and substance reasonably
satisfactory to Party B) or replaces the outstanding Transactions hereunder
with transactions on identical terms, except that Party A shall be replaced
as counterparty, provided that such substitute counterparty, as of the date
of
such assumption or replacement, must not, as a result thereof, be required
to
withhold or deduct on account of tax under the Agreement or the new
transactions, as applicable, and such assumption or replacement must not lead
to
a termination event or event of default occurring in respect of the new
transactions, as applicable; provided further that satisfaction of the S&P
Ratings Condition shall be required within such 10 Business Days of the Ratings
Event or longer period, as applicable, for any transfer of any Transaction
under
this clause (a)(i) unless such transfer is in connection with the assignment
and
assumption of this Agreement without modification of its terms by such
counterparty, other than the following terms: party name, dates
relevant to the effective date of such transfer, tax representations and any
other representations regarding the status of the substitute counterparty of
the
type included in Section (c) of this Part 5 and notice information (in which
case, Party A shall provide prior written notice to S&P and the Trustee with
respect thereto) and (ii) post collateral according to the terms of the Credit
Support Annex until such time as a substitute counterparty has assumed Party
A’s
obligations hereunder or an Early Termination Date has been declared;
and
(b) in
the case of a Moody’s Ratings Event, Party A shall at its sole expense (i)
use commercially reasonable efforts to, as soon as reasonably practicable,
(A)
furnish an Eligible Guarantee of Party A’s obligations under this Agreement from
a guarantor that satisfies paragraph (b) of the definition of Hedge Counterparty
Ratings Requirement or (B) procure a transfer in accordance with Part 5(i)
below.
(f)
|
Third-Party
Beneficiary. Party B agrees with Party A that Party A
shall be an express third-party beneficiary of the Pooling and Servicing
Agreement and the Swap Contract Administration
Agreement
|
(g)
|
Set-off.
|
(i) All
payments under this Agreement shall be made without set-off or counterclaim,
except as expressly provided for in Section 2(c), Section 6, Part 1(f)(vi)
above
or Paragraphs 8(a) or (b) of the Credit Support Annex attached
hereto.
(ii) Section
6(e) shall be amended by the deletion of the following sentence: “The amount, if
any, payable in respect of an Early Termination Date and determined pursuant
to
this Section will be subject to any Set-off.”
13
(h)
|
Transfer
and Assignment. Notwithstanding anything to the
contrary in Section 7 of the Agreement, Party A may assign its
rights and obligations under the Agreement, in whole or in part,
(1) to
any Affiliate of Holdings effective upon delivery to Party B of the
guarantee by Holdings, in favor of Party B, of the obligations of
such
Affiliate, such guarantee to be identical to the guarantee then in
effect
of the obligations of the transferor (except for the name, address
and the
jurisdiction of the guarantor) or that otherwise satisfies the Rating
Agency Condition, or (2) to any entity with the same or higher long
term
senior unsecured debt rating (as determined by S&P or Moody’s) as
Holdings at the time of such transfer, in each case provided that
(A) the
transferee is an Eligible Replacement and (B) in the case of a transfer
in
part substantially all of Party A’s obligations under this Agreement are
transferred to the transferee, as determined by Party B acting in
a
commercially reasonable manner. In the event of such a
transfer, this Agreement shall be replaced with an Agreement having
identical terms except that Party A shall be replaced as a counterparty
or
with an agreement that otherwise satisfies the Rating Agency
Condition. Notwithstanding the foregoing, any assignment
hereunder shall not be permitted if, as a result thereof, a payment
becomes subject to any deduction or withholding for or on account
of any
tax which would not have arisen had such assignment not been effected
or
such transfer would cause an Event of Default or Termination Event
to
occur. Party A will provide prior written notice to each Rating Agency
of
any such assignment. If an entity has made a Firm Offer (which remains
capable of becoming legally binding upon acceptance) to be the transferee
of a transfer, Party B shall at Party A’s written request take
any reasonable steps required to be taken by it to effect such
transfer.
|
All
collateral posted by Party A shall be returned to Party A immediately upon
the
assumption by a substitute counterparty of all of Party A’s obligations
hereunder.
(i)
|
Notices. For
the purposes of subsections (iii) and (v) of Section
12(a), the date of receipt shall be presumed to be the date sent if
sent on a Local Business Day or, if not sent on a Local Business
Day, the
date of receipt shall be presumed to be the first Local Business
Day
following the date sent.
|
(j)
|
Service
of Process. The third sentence of Section 13(c)
shall be amended by adding the following language at the end
thereof: “if permitted in the jurisdiction where the
proceedings are initiated and in the jurisdiction where service is
to be
made.”
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(k)
|
Arms’-Length
Transaction. 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 Party B; (ii) the selection of any person performing
services
for or acting on behalf of Party B; (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 or similar document for the Certificates, the Pooling
and Servicing Agreement, or any other agreements or documents used
by
Party B or any other party in connection with the marketing and sale
of
the Certificates; (vi) the ongoing operations and administration
of Party
B, including the furnishing of any information to Party B which is
not
specifically required under this Agreement; or (vii) any other aspect
of
Party B’s existence.
|
(m)
|
Amendments.
Section 9(b) is hereby amended by adding at the end
thereof the sentence: “In addition, any amendment or
modification of this Agreement shall be subject to the Rating Agency
Condition.”
|
(n)
|
Amendments
to Pooling and Servicing Agreement. Party B will
provide Party A with at least ten (10) Business Days prior written
notice
of and obtain Party A’s prior written consent to any proposed amendment,
supplement or modification to its Pooling and Servicing Agreement
that
could have a material, adverse effect on Party A or otherwise give
Party A
the right to terminate any Transactions pursuant to the provisions
of Part
1(h)(C)] above.
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14
(o)
|
No
Bankruptcy Petition. Party A agrees that it will not,
for a period of one year and one day, after the payment in full of
all of
the Certificates issued under the Pooling and Servicing Agreement,
acquiesce, petition, invoke or otherwise cause Party B to invoke
the
process of any governmental authority for the purpose of commencing
or
sustaining a case (whether voluntary or involuntary) against Party
B under
any bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar
official of Party B or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of Party B; provided,
that this provision shall not restrict or prohibit Party A from joining
any other person, including, without limitation, the Trustee, in
any
bankruptcy, reorganization, arrangement, insolvency, moratorium or
liquidation proceedings already commenced or other analogous proceedings
already commenced under applicable
law.
|
(p)
|
Party
B Agent. Party A acknowledges that Party B has
appointed the Swap Contract Administrator and the Corridor Contract
Administrator as its agent under the Pooling and Servicing Agreement
to
carry out certain functions on behalf of Party B, and that Swap Contract
Administrator and the Corridor Contract Administrator shall be entitled
to
give notices and to perform and satisfy the obligations of Party
B
hereunder on behalf of Party B.
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(q)
|
Limited
Recourse. The liability of Party B under this
Agreement is limited in recourse to the assets of the Swap Trust
and to
distributions of interest proceeds and principal proceeds thereon
applied
in accordance with the terms of the Pooling and Servicing
Agreement. Upon application and exhaustion of all of the assets
of the Swap Trust (and proceeds thereof) in accordance with the Pooling
and Servicing Agreement Agreement, Party A shall not be entitled
to take
any further steps against Party B to recover any sums due but still
unpaid
hereunder or thereunder, all claims in respect of which shall be
extinguished. Notwithstanding the foregoing or anything herein
to the contrary, Party A shall not be precluded from declaring an
Event of
Default or from exercising any other right or remedy as set forth
in this
Agreement or the Pooling and Servicing
Agreement.
|
(r)
|
Additional
Definitions. Section 14 is hereby amended by adding the
following definitions in their appropriate alphabetical
order:
|
“Collateralization
Event” shall have the meaning given in Part 5(f)(i) above.
“Eligible
Guarantee” shall have the meaning given in Part 5(f)(ii)
above.
“Eligible
Replacement” means an entity (A) that satisfies the definition of Hedge
Counterparty Ratings Requirement, set forth in Part 5(f)(ii) above or (B) whose
present and future obligations owing to Party B are guaranteed pursuant to
an
Eligible Guarantee provided by a guarantor which satisfies paragraph (b) of
the
definition of Hedge Counterparty Ratings Requirement.
“Firm
Offer” means an offer which, when made, was capable of becoming legally
binding upon acceptance.
“Hedge
Counterparty Ratings Requirement” shall have the meaning given in Part
5(f)(ii) above.
“Moody’s” means
Xxxxx’x Investor Services, Inc.
“Moody’s
Collateralization Event” shall have the meaning given in Part 5(f)(i)
above.
“Moody’s
Ratings Event” shall have the meaning given in Part 5(f)(iii)
above.
“Rating
Agency” shall have the meaning given in Part 5(f)(ii)
above.
“Rating
Agency Approval” shall have the meaning given in Part 5(f)(iv)
above.
15
“Rating
Agency Condition” means, with respect to any particular proposed act or
omission to act hereunder, that the party acting or failing to act has consulted
with each Rating Agency then providing a rating of any Class of Certificates
and
has received from each Rating Agency a written confirmation that the proposed
action or inaction would not cause such Rating Agency to downgrade or withdraw
its then-current rating of any Class of Certificates.
“Ratings
Event” shall have the meaning given in Part 5(f)(iii)
above.
“Relevant
Entity” shall have the meaning given in Part 5(f)(i)
above.
“S&P”
means Standard & Poor’s Ratings Services, a division of XxXxxx-Xxxx,
Inc.
“S&P
Collateralization Event” shall have the meaning given in Part 5(f)(i)
above.
“S&P
Rating Condition” shall have the meaning given in Part 5(f)(ii)
above.
“S&P
Ratings Event” shall have the meaning given in Part 5(f)(iii)
above.
“Stockholders’
Equity” means with respect to an entity, at any time, the sum at such
time of (i) its capital stock (including preferred stock) outstanding, taken
at
par value, (ii) its capital surplus and (iii) its retained earnings, minus
(iv)
treasury stock, each to be determined in accordance with generally accepted
accounting principles consistently applied.
“USD”
means United States Dollars.
(s)
|
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 or any transaction,
and
acknowledges that this waiver is a material inducement to the other
party’s entering into this agreement and each transaction
hereunder.
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(t)
|
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 to this Agreement; provided, however, that this
severability provision shall not be applicable if any provision of
Section 2, 5, 6 or 13 (or any definition or
provision in Section 14 to the extent it relates to, or is used in
or connection with any such Section) shall be held to be invalid
or
unenforceable.
|
(u)
|
Replacement
Agreement. At any time, Party A may designate a
Distribution Date (as defined in the Pooling and Servicing Agreement)
as
an Early Termination Date; provided that Party A has identified a
counterparty (the “New Counterparty”) that (i) satisfies the Swap
Counterparty required ratings and with respect to which the Rating
Agency
Confirmation is satisfied and (ii) has agreed to enter into an agreement,
effective as of such Early Termination Date, with Party B on terms
substantially identical to the terms of this Agreement, and all
Transactions hereunder (a “Replacement Agreement”). For the purpose
of the foregoing designation of an Early Termination Date, Party
A shall
be the sole Affected Party and all Transactions shall be Affected
Transactions. If, as a condition to entering into the Replacement
Agreement, the New Counterparty agrees to make a payment to Party
B that
is less than an amount required to be paid upon termination as if
a
Termination Event had occurred and Party A was the sole Affected
Party and
all Transactions were Affected Transactions (such amount, the
“Replacement Amount”), then Party B shall pay to Party A an amount
equal to the New Counterparty’s payment, which amount shall be the only
amount payable to Party A in connection with the termination of the
Agreement. If, however, as a condition to entering into the Replacement
Agreement, the New Counterparty is to receive a payment from Party
B that
is greater than the Replacement Amount, then Party A shall pay to
Party B
an amount equal to the amount the New Counterparty is to receive.
Upon
Party B successfully entering into a Replacement Agreement, Party
A’s
obligations to post collateral contemplated by paragraph 13(b) of
the
Credit Support Annex shall terminate and Party B shall release its
security interest in, and return to Party A, any then-posted
collateral.
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16
(v)
|
Guarantee
Demand. If Party A fails to pay punctually any amounts
under this Agreement, to the extent that Party B desires to exercise
its
rights under the Guarantee, the Trustee shall on behalf of Party
B, make
the written demand for payment pursuant to the
Guarantee.
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(w)
|
Limited
Liability. Party A and Party B agree to the following: (a) The
Bank of New York (“BNY”) is entering into this Agreement not in its
individual or corporate capacity, but solely in its capacity as Swap
Contract Administrator under the Swap Contract Administration Agreement
and Corridor Contract Administrator under the Corridor Contract
Administration Agreement; (b) in no case shall BNY (or any person
acting
as successor Swap Contract Administrator under the Swap Contract
Administration Agreement, or as successor Corridor Contract Administrator
under the Corridor Contract Administration 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; and
(c)
recourse against Party B shall be limited to the assets available
under
the Swap Contract Administration Agreement, the Corridor Contract
Administration Agreement or the Pooling and Servicing
Agreement.
|
(x)
|
Other
criteria. Notwithstanding, and without prejudice to, any other
provision herein, in the event that S&P has other published criteria
with respect to the downgrade of a counterparty in effect at the
time of
such a downgrade of Party A, Party A shall be entitled to elect to
take
such other measures specified in such published criteria subject
to Rating
Agency Confirmation by S&P.
|
(y)
|
Notifications. Notwithstanding
any other provision of this Agreement, no Early Termination Date
shall be
effectively designated by Party B unless each Rating Agency has been
given
prior written notice of such
designation.
|
(z)
|
Escrow
Payments. If (whether by reason of the time difference
between the cities in which payments are to be made or otherwise),
it is
not possible for simultaneous payments to be made on any date on
which
both parties are required to make payments hereunder, either party
may, at
its option and in its sole discretion, notify the other party that
payments on that date are to be made in escrow. In this case,
deposit of the payment due earlier on that date shall be made by
2:00 p.m.
(local time at the place for the earlier payment) on that date with
an
escrow agent selected by the notifying party, accompanied by irrevocable
payment instructions (1) to release the deposited payment to the
intended
recipient upon receipt by the escrow agent of the required deposit
of the
corresponding payment from the other party on the same date accompanied
by
irrevocable payment instructions to the same effect or (2) if the
required
deposit of the corresponding payment is not made on that same date,
to
return the payment deposited to the party that paid it into
escrow. The party that elects to have payments made in escrow
shall pay all costs of the escrow arrangements and shall cause those
arrangements to provide that the intended recipient of the payment
due to
be deposited first shall be entitled to interest on that deposited
payment
for each day in the period of its deposit at the rate offered by
the
escrow agent for that day for overnight deposits in the relevant
currency
in the office where it holds that deposited payment (at 11:00 a.m.
local
time on that day) if that payment is not released by 5:00 p.m. local
time
on the date it is deposited for any reason, other than the intended
recipient’s failure to make the escrow deposit it is required to make
hereunder in a timely fashion.
|
(aa)
|
Recording
of Conversations. Each party
consents to the recording of telephone conversations between trading,
marketing and other relevant personnel of the parties in connection
with
this Agreement or any potential Transaction. Promptly upon the
request by a party, the other party will provide a copy of such recording
to the party making the request.
|
(ab)
|
Item
1115 Agreement. Party A and Party B agree that the
terms of the Item 1115 Agreement dated as of February 24, 2006, as
amended
from time to time (the “Regulation AB Agreement”), between Countrywide
Home Loans, Inc., CWABS, Inc., CWMBS, Inc., CWALT, Inc., CWHEQ, Inc.
and
Xxxxxx Brothers Special Financing Inc. shall be incorporated by reference
into this Agreement so that Party B shall be an express third party
beneficiary of the Regulation AB Agreement. A copy of the Item 1115
Agreement is annexed hereto at Exhibit
D.
|
17
The
parties executing this Schedule have executed the Master Agreement and have
agreed as to the contents of this Schedule.
XXXXXX
BROTHERS
SPECIAL
FINANCING INC.
|
THE
BANK OF NEW YORK, not in its individual
or
corporate capacity but solely as Swap Contract
Administrator
and Corridor Contract Administrator
for
CWABS Asset-Backed Certificates Trust
2007-6
|
|
Party
A
|
Party
B
|
|
/s/
Xxxxxxx X. Xxxxxx
|
/s/
Xxxxxxxx Xxxxxx
|
|
Name:
Xxxxxxx X. Xxxxxx
|
Name:
Xxxxxxxx Xxxxxx
|
|
Title:
Authorized Signatory
|
Title:
Vice President
|
|
Date:
3/30/07
|
Date:
3/30/07
|
|
18
EXHIBIT
A to Schedule
GUARANTEE
OF XXXXXX BROTHERS HOLDINGS INC.
XXXXXX
BROTHERS SPECIAL FINANCING INC. (“Party A”) and THE BANK OF NEW YORK, not in its
individual or corporate capacity but solely as Swap Contract Administrator
and
Corridor Contract Administrator for CWABS Asset-Backed Certificates
Trust 2007-6 (“Party B”) have entered into a Master Agreement dated as
of March 30, 2007, as amended from time to time (the “Master Agreement”),
pursuant to which Party A and Party B have entered and/or anticipate entering
into one or more transactions (each a “Transaction”), the Confirmation of each
of which supplements, forms part of, and will be read and construed as one
with,
the Master Agreement (collectively referred to as the “Agreement”). This
Guarantee is a Credit Support Document as contemplated in the Agreement. For
value received, and in consideration of the financial accommodation accorded
to
Party A by Party B under the Agreement, XXXXXX BROTHERS HOLDINGS INC., a
corporation organized and existing under the laws of the State of Delaware
(“Guarantor”), hereby agrees to the following:
(a) Guarantor
hereby unconditionally guarantees to Party B the due and punctual payment of
all
amounts payable by Party A in connection with each Transaction when and as
Party
A’s obligations thereunder shall become due and payable in accordance with the
terms of the Agreement (whether at maturity, by acceleration or otherwise).
Guarantor hereby agrees, upon written demand by Party B, to pay or cause to
be
paid any such amounts punctually when and as the same shall become due and
payable.
(b) Guarantor
hereby agrees that its obligations under this Guarantee constitute a guarantee
of payment when due and not of collection.
(c) Guarantor
hereby agrees that its obligations under this Guarantee shall be unconditional,
irrespective of the validity, regularity or enforceability of the Agreement
against Party A (other than as a result of the unenforceability thereof against
Party B), the absence of any action to enforce Party A’s obligations under the
Agreement, any waiver or consent by Party B with respect to any provisions
thereof, the entry by Party A and Party B into any amendments to the Agreement,
additional Transactions under the Agreement or any other circumstance which
might otherwise constitute a legal or equitable discharge or defense of a
guarantor (excluding the defense of payment or statute of limitations, neither
of which is waived) provided, however, that Guarantor shall be entitled to
exercise any right that Party A could have exercised under the Agreement to
cure
any default in respect of its obligations under the Agreement or to setoff,
counterclaim or withhold payment in respect of any Event of Default or Potential
Event of Default in respect of Party B or any Affiliate, but only to the extent
such right is provided to Party A under the Agreement. The Guarantor
acknowledges that Party A and Party B may from time to time enter into one
or
more Transactions pursuant to the Agreement and agrees that the obligations
of
the Guarantor under this Guarantee will upon the execution of any such
Transaction by Party A and Party B extend to all such Transactions without
the
taking of further action by the Guarantor.
(d) This
Guarantee shall remain in full force and effect until the first to occur of
(i)
receipt by Party B of a written notice of termination from Guarantor or (ii)
none of the obligations of Party A remain outstanding. Termination of this
Guarantee shall not affect Guarantor’s liability hereunder as to obligations
incurred or arising out of Transactions entered into prior to the termination
hereof.
(e) Guarantor
further agrees that this Guarantee shall continue to be effective or be
reinstated, as the case may be, if at any time, payment, or any part thereof,
of
any obligation or interest thereon is rescinded or must otherwise be restored
by
Party B upon an Event of Default as set forth in Section 5(a)(vii) of the
Master Agreement affecting Party A or Guarantor.
(f) Guarantor
hereby waives (i) promptness, diligence, presentment, demand of payment,
protest, order and, except as set forth in paragraph (a) hereof, notice of
any
kind in connection with the Agreement and this Guarantee, or (ii) any
requirement that Party B exhaust any right to take any action against Party
A or
any other person prior to or contemporaneously with proceeding to exercise
any
right against Guarantor under this Guarantee.
Xxxxxx
Brothers Holdings Inc.
000
Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
This
Guarantee shall be governed by and construed in accordance with the laws of
the
State of New York without regard to conflicts of laws principles. All
capitalized terms not defined in this Guarantee, but defined in the Agreement,
shall have the meanings assigned thereto in the Agreement.
IN
WITNESS WHEREOF, Guarantor has caused this Guarantee to be executed by its
duly
authorized officer as of the date of the Agreement.
XXXXXX
BROTHERS HOLDINGS INC.
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By: ________________________________
|
|
Name:
|
|
Title:
|
|
Date:
|
Xxxxxx
Brothers Holdings Inc.
000
Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
2
EXHIBIT
B to Schedule
[Form
of
Opinion of Counsel for Party B]
[Date]
Xxxxxx
Brothers Special Financing Inc.
c/x
Xxxxxx Brothers Inc.
000
Xxxxxxx Xxxxxx,
Xxx
Xxxx,
Xxx Xxxx 00000
XXX
|
Re:
|
CWABS,
Inc.
Asset-Backed
Certificates Trust 2006-26
|
Ladies
and Gentlemen:
We
have
acted as special counsel for CWABS, Inc., a Delaware corporation (the
“Depositor”), in connection with the issuance of the CWABS, Inc.
Asset-Backed Certificates of the above-referenced Series (the
“Certificates”). The Certificates represent the entire
beneficial ownership interest in a trust fund (the “Trust Fund”) created
pursuant to a Pooling and Servicing Agreement, dated as of March 1, 2007 (the
“Pooling and Servicing Agreement”) among the Depositor, as depositor,
Countrywide Home Loans Inc. (“CHL”), as a seller, Park Monaco Inc., as a
seller, Park Sienna LLC, as a seller, Countrywide Home Loans Servicing LP,
as
Master Servicer, The Bank of New York (“BNY”), as trustee and
The Bank of New York Trust Company, N.A., as co-trustee. The assets
of the Trust Fund will consist primarily of a pool of conventional,
credit-blemished mortgage loans secured by first liens on one- to four-family
residential properties.
In
connection with the issuance of the Certificates, we have also acted as special
counsel to the Depositor in connection with the execution and delivery of the
following documents relating to the Certificates: (i) the Swap Contract
Administration Agreement, dated as of March 30, 2007 (the “Swap Contract
Administration Agreement”), between BNY, in its capacity as swap contract
administrator (in such capacity, the “Swap Contract Administrator”) and
in its capacity as Trustee under the Pooling and Servicing Agreement, and CHL,
(ii) a confirmation with a reference number of 296 7983 and a trade date of
March 28, 2007 (the “Confirmation”) between CHL and Xxxxxx Brothers
Special Financing Inc. (the “Swap Counterparty”), (iii) the ISDA Master
Agreement, Schedule and Credit Support Annex dated as of March 30, 2007
(collectively, the “Master Agreement”), between the Swap Counterparty and
the Swap Contract Administrator and (iv) the Swap Contract Assignment Agreement,
dated as of March 30, 2007 (the “Swap Contract Assignment Agreement”),
between CHL, the Swap Counterparty and the Swap Contract
Administrator. The Master Agreement and the transaction evidenced by
the Confirmation, taken together with the applicable provisions of the Swap
Contract Assignment Agreement, are referred to herein collectively as the
“Swap Agreement”.
Capitalized
terms not otherwise defined herein have the meanings ascribed to such terms
in
the Pooling and Servicing Agreement.
In
arriving at the opinion expressed below, we have examined and relied on
originals or copies of the Pooling and Servicing Agreement, the Swap Contract
Administration Agreement, the Swap Contract Assignment Agreement, the Master
Agreement and the Confirmation (collectively, the
“Agreements”). In addition, we have made such investigations
of law as we have deemed appropriate as a basis for the opinion expressed
below.
Based
upon the foregoing, and having regard to legal considerations which we deem
relevant, subject to the assumptions, qualifications and limitations set forth
herein, we are of the opinion that the Swap Agreement constitutes the valid
and
binding obligation of the Swap Contract Administrator, enforceable against
the
Swap Contract Administrator in accordance with its terms.
The
opinion set forth above is subject to certain qualifications, assumptions and
exceptions as set out below.
In
rendering the foregoing opinion, we have assumed, without any independent
investigation or verification, the following: (a) the authenticity of original
documents, the legal capacity of all individuals and the genuineness of all
signatures; (b) the conformity to the originals of all documents submitted
to us
as certified, conformed or photostatic copies; (c) the truth, accuracy and
completeness of the information, representations and warranties made in
conference or contained in the records, documents, instruments and certificates
we have reviewed; (d) the due organization of the parties to the Agreements
and
the power and authority of the parties to the Agreements to enter into and
perform all of their obligations thereunder; (e) the due authorization,
execution and delivery of the Agreements on behalf of the respective parties
thereto; (f) except as expressly covered in the opinion set forth above, the
legal, valid, and binding effect of the Agreements and the enforceability
thereof (in accordance with their terms) against the respective parties thereto;
(g) that the parties have complied and will comply with all material provisions
of the Agreements; (h) the absence of any evidence extrinsic to the provisions
of the written agreements between the parties that the parties intended a
meaning contrary to that expressed by those provisions; (i) the absence of
any
agreement or understanding among the parties other than those contained in
the
Agreements (or referred to therein or incidental thereto); (j) that the terms
and provisions of the Agreements do not, and the execution, delivery and
performance of the Agreements by any party thereto does not and will not,
violate the organizational documents of such party or any law, rule, regulation,
order or decree of any court, administrative agency or other governmental
authority or agency applicable to such party, or result in the breach of or
a
default under any contract or undertaking to which it is a party or by which
it
or its property is bound; and (k) that there is nothing in the laws or public
policy of any relevant jurisdiction (other than the State of New York or the
United States of America) that would affect the opinion set forth
above.
Our
opinion is qualified as to:
(i) limitations
imposed by any applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, fraudulent transfer or other similar law of general
application affecting the enforcement of creditors’ or secured creditors’ rights
generally;
(ii) general
principles of equity including, without limitation, concepts of materiality
and
fair dealing, the possible unavailability of specific performance or injunctive
relief, and other similar doctrines affecting the enforceability of agreements
generally (regardless of whether considered in a proceeding in equity or
at
law);
(iii) rights
to indemnification or contribution which may be limited by applicable law or
equitable principles or otherwise unenforceable as against public
policy,
(iv) the
effect of any other limitations imposed by public policy, although (except
as
noted in sub-paragraph (iii) above and sub-paragraphs (v) through (viii) below)
we are not aware of any limitation that would be relevant to such
enforcement;
(v) the
effect of any requirement conditioning enforcement on the party seeking
enforcement having acted in a commercially reasonable manner and in good faith
in performing its obligations and exercising its rights and remedies
thereunder;
(vi) the
discretion of a court to invalidate or decline to enforce any right, remedy
or
provision of the Swap Agreement, determined by it, in any such case, to be
a
penalty;
(vii) the
unenforceability of any provision requiring the payment of attorney’s fees,
except to the extent that a court determines such fees to be reasonable;
and
2
(viii) the
effect of any requirement that a claim (or a foreign currency judgment in
respect of such claim) be converted into United States dollars at a rate of
exchange prevailing on a date determined pursuant to applicable
law.
Without
in any way limiting the effect of sub-paragraph (viii) above, we note that
a
judgment for money in an action in a federal or state court in the United States
ordinarily would be enforced in the United States only in United States
dollars. The date used to determine the rate of conversion of a
foreign currency into United States dollars will depend upon various factors,
including which court renders the judgment. By way of example, under
Section 27 of the New York Judiciary Law, a state court in the State of New
York
rendering a judgment on an obligation required to be paid in a foreign currency
will be required to render such judgment in such foreign currency, and such
judgment would be converted into United States dollars at the exchange rate
prevailing on the date of entry of the judgment.
Certain
of the remedial provisions of the Swap Agreement may be limited or rendered
ineffective or unenforceable in whole or in part, but the inclusion of such
provisions does not make the remedies provided by such Agreement inadequate
for
the practical realization of the respective rights and benefits purported to
be
provided thereby (except for the economic consequences of procedural or other
delay, as to which we express no opinion).
We
express no opinion:
(a) as
to any provision in the Swap Agreement to the extent that such provision refers
to, or incorporates by reference, the provisions of any agreement other than
the
Swap Agreement;
(b) regarding
any severability provision;
(c) with
respect to the creation, perfection or priority of any security interest or
as
to the effect thereof or the rights and remedies or obligations of any party
to
the Swap Agreement in respect thereof;
(d) as
to the effect of: (i) the compliance or non-compliance of Xxxxxx Brothers
Special Financing Inc. with any United States state or federal laws or
regulations or any other laws or regulations applicable to Xxxxxx Brothers
Special Financing Inc., including limitations or restrictions that apply to
financial institutions; or (ii) the failure of Xxxxxx Brothers Special Financing
Inc. to be duly authorized to conduct business in any jurisdiction;
(e) with
respect to any federal or state securities, “blue sky” or other similar
laws;
(f) as
to the enforceability of any rights to specific performance provided for in
the
Swap Agreement; or
(g) as
to whether a federal court of the United States of America or a state court
outside the State of New York would give effect to the choice of New York law
provided for in the Swap Agreement.
Our
opinion herein, as it pertains to the enforceability of provisions contained
in
the Swap Agreement pursuant to which the parties thereto agree to submit to
the
jurisdiction of the United States federal courts referred to herein, is subject
to the power of such courts to transfer actions pursuant to 28 U.S.C. § 1404(a)
or to dismiss such actions or proceedings on the ground that such a federal
court is an inconvenient forum for such an action or proceeding and we note
that
such issues may be raised by the court sua sponte. In addition,
we express no opinion as to the subject matter jurisdiction of any United States
federal court to adjudicate any action relating to the Agreements where
jurisdiction based on diversity of citizenship under 27 U.S.C. § 1332 does not
exist.
As
noted
above, the conclusions set forth herein are subject to the accuracy of the
factual assumptions described above and the absence of additional facts that
would materially affect the validity of the assumptions set forth
herein. Our conclusions as to any legal matters in this letter speak
only as of the date hereof. We assume no obligation to revise or
supplement this letter should such factual matters change or should such laws
or
regulations be changed by legislative or regulatory action, judicial decision
or
otherwise, and we hereby express no opinion as to the effect any such changes
may have on the foregoing opinion. We do not express any opinion,
either implicitly or otherwise, on any issue not expressly addressed in the
third paragraph of this letter.
3
To
the
extent our opinion herein pertains to the enforceability of Part 4(h) of the
Schedule to the Master Agreement pursuant to which the Trust and the Swap
Counterparty have agreed that the laws of the State of New York shall govern
the
Agreement, we have relied on Section 5-1401 of the New York General Obligations
Law, which states in pertinent part: “The parties to any contract, agreement or
undertaking, contingent or otherwise, in consideration of, or relating to any
obligation arising out of a transaction covering in the aggregate not less
than
two hundred fifty thousand dollars . . . may agree that the
law of this state shall govern their rights and duties in whole or in part,
whether or not such contract, agreement or undertaking bears a reasonable
relation to this state.”
We
express no opinion as to matters of law other than the law of the State of
New
York and the federal law of the United States of America. In
rendering the foregoing opinion we have assumed that enforcement of the Swap
Agreement in accordance with New York law would not violate any provision of
any
law of any jurisdiction (other than the State of New York) or any public policy
of any jurisdiction that bears a reasonable relation to the Agreements or the
transaction in which the Swap Agreement is being executed and delivered by
the
parties thereto.
The
opinion expressed herein is solely for your benefit in connection with the
transactions contemplated by the Agreements and may not be relied on in any
manner or for any purpose by any other individual, partnership, corporation
or
other governmental or non-governmental entity (each a “Person”), nor may any
copies thereof be published, communicated, filed with or otherwise made
available in whole or in part to any other Person without our specific prior
written consent. By accepting this letter, each Person to whom this
letter is addressed (other than the Depositor) recognizes and acknowledges
that
(i) no attorney-client relationship exists or has existed between the lawyers
in
our firm representing the Depositor and such Person in connection with the
execution of the Agreements or by virtue of this letter, (ii) in order to permit
reliance by such Person on this letter, the lawyers in our firm representing
the
Depositor conducted no activities in addition to those undertaken or conducted
for the purpose of rendering this letter to the Depositor as one of the
addressees hereof and (iii) this letter may not be appropriate or sufficient
for
such Person’s purposes.
Very
truly yours,
4
EXHIBIT
C
to Schedule
[Form
of
Opinion of Counsel for
Xxxxxx
Brothers Special Financing Inc. and
Xxxxxx
Brothers Holdings Inc.]
March
30,
0000
Xxx
Xxxx
xx Xxx Xxxx
000
Xxxxxxx Xxxxxx
Xxx
Xxxx,
XX 00000
Ladies
and Gentlemen:
I
have
acted as counsel to Xxxxxx Brothers Special Financing Inc., a Delaware
corporation (“Party A”), and Xxxxxx Brothers Holdings Inc., a Delaware
corporation (“Guarantor”), and am familiar with matters pertaining to the
execution and delivery of the Master Agreement (the “Master Agreement”) dated as
of March 30, 2007 between Party A and The Bank of New York, not in its
individual or corporate capacity but solely as Swap Contract Administrator
and
Corridor Contract Administrator for CWABS Asset-Backed Certificates Trust
2007-6, and the guarantee of Guarantor (the “Guarantee”)
delivered in connection with the Master Agreement.
In
connection with this opinion, I have examined, or have had examined on my
behalf, an executed copy of the Master Agreement and the Guarantee, certificates
and statements of public officials and officers of Party A and Guarantor
and such other agreements, instruments, documents and records as I have deemed
necessary or appropriate for the purposes of this opinion.
Except
as
expressly set forth herein, no independent investigation (including, without
limitation, conducting any review, search or investigation of any public files,
records or dockets) has been undertaken to determine the existence or absence
of
the facts that are material to my opinions, and no inference as to my knowledge
concerning such facts should be made.
When
used
herein the phrase “to my knowledge” means to my actual knowledge without
independent investigation.
References
in this letter to “Applicable Laws” are to those laws, rules and regulations of
the State of New York which, in my experience, are normally applicable to
transactions of the type contemplated by the Master Agreement and the
Guarantee. References in this letter to “Governmental Authorities”
are to executive, legislative, judicial, administrative or regulatory bodies
of
the State of New York. References in this letter to “Governmental
Approval” are to any consent, approval, license, authorization or validation of,
or filing, recording or registration with, any Governmental Authority pursuant
to Applicable Laws.
Based
on
the foregoing but subject to the assumptions, exceptions, qualifications and
limitations hereinafter expressed, I am of the opinion that:
|
1.
|
Based
on certificates of the Secretary of State of the State of Delaware
dated
as of February 8, 2007, each of Party A and Guarantor is a corporation
duly incorporated, validly existing and in good standing under the
laws of
the State of Delaware.
|
|
2.
|
The
execution, delivery and performance of the Master Agreement, in the
case
of Party A, and the Guarantee, in the case of Guarantor, are within
its corporate power, have been duly authorized by all necessary corporate
action and do not conflict with any provision of its certificate
of
incorporation or by-laws.
|
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3.
|
The
Master Agreement, in the case of Party A, and the Guarantee, in the
case of Guarantor, have been duly executed and delivered and
each constitutes a legal, valid and binding
obligation under Applicable Laws, enforceable against it under Applicable
Laws in accordance with its respective
terms
|
|
4.
|
To
my knowledge, no Governmental Approval is required in connection
with the
execution, delivery and performance of the Master Agreement in the
case of
Party A, or the Guarantee, in the case of Guarantor, except those
that
have been obtained and, to my knowledge, are in
effect.
|
The
foregoing opinions are subject to the following assumptions, exceptions,
qualifications and limitations:
A. My
opinion in paragraph 3 above is subject to: (i) bankruptcy,
insolvency, reorganization, receivership, moratorium or similar laws affecting
creditors’ rights generally (including, without limitation, the effect of
statutory or other laws regarding fraudulent or other similar transfers or
conveyances); (ii) general principles of equity, regardless of whether
enforceability is considered in a proceeding in equity or at law; and
(iii) laws and considerations of public policy, including where clauses (i)
through (iii) above may limit the enforceability of provisions (a) regarding
the
termination and close out methodology under the Master Agreement, including
but
not limited to Section 6(e) thereof, (b) regarding indemnification and
contribution rights and obligations, (c) regarding the waiver or limitation
of rights to trial by jury, oral amendments to written agreements or rights
of
setoff, (d) relating to submission to jurisdiction, venue or service of
process, and (e) purporting to prohibit or restrict, or require the consent
of the “account debtor” (as defined in Section 9-102 of the Uniform Commercial
Code as in effect in the State of New York (the “NYUCC” )) for, the creation,
perfection or enforcement of a security interest in “accounts” or “general
intangibles” (in each case, as defined in Section 9-102 of the
NYUCC).
B. I
am a member of the Bar of the Commonwealth of Massachusetts and render no
opinion on any laws other than the laws of the State of New York and
the General Corporation Law of the State of Delaware. Except as
described, I have not examined, or had examined on my behalf, and I do not
express any opinion with respect to, Delaware law.
C. My
opinions are limited to the present laws and to the facts as they presently
exist, and no opinion is to be inferred or implied beyond the matters expressly
so stated. I assume no obligation to revise or supplement this
opinion should the present laws of the jurisdictions referred to in paragraph
B
above be changed by legislative action, judicial decision or
otherwise.
D. This
letter is rendered solely to you solely for your benefit in connection with
the
Master Agreement and the Guarantee and the transactions related thereto and
may
not be relied upon by any other person, entity or agency or by you in any other
context or for any other purpose. This letter may not be circulated,
used or quoted in whole or in part, nor may copies hereof be furnished or
delivered to any other person, without the prior written consent of Xxxxxx
Brothers Holdings Inc., except that you may furnish copies hereof (i) to
your independent auditors and attorneys, (ii) to any United States, state
or local authority having jurisdiction over you, (iii) pursuant to the
order of any court of competent jurisdiction or any governmental agency and
(iv)
in connection with any legal action arising out of the Master Agreement or
the Guarantee.
E. I
have assumed with your permission (i) the genuineness of all signatures by
each party other than Party A or Guarantor, (ii) the authenticity of
documents submitted to me as originals and the conformity to authentic original
documents of all documents submitted to me as copies, (iii) the accuracy of
the matters set forth in the documents, agreements and instruments I reviewed,
(iv) that each party other than Party A and Guarantor is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization, (v) the due execution and delivery, pursuant to due authorization,
of the Master Agreement by each party other than Party A and (vi) that
the Master Agreement is the legal, valid, binding and enforceable obligation
of
each party other than Party A, enforceable against each such party in
accordance with its terms.
2
The
foregoing opinions are given on the express understanding that the undersigned
is an officer of Xxxxxx Brothers Inc. and shall in no event incur any personal
or other liability in connection with said opinions. By accepting and
relying upon this opinion, each addressee hereof (i) acknowledges and agrees
that the undersigned shall have no personal or other liability in connection
herewith and (ii) agrees to not assert or raise any such claim against the
undersigned in any proceeding or in any manner otherwise.
Very
truly yours,
3
EXHIBIT
D to Schedule
[REGULATION
AB AGREEMENT]
Item 1115 Agreement dated as of February 24, 2006 (this "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 XXXXXX BROTHERS SPECIAL FINANCING INC., 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, from time to time, on the closing date (the "Closing Date") of a transaction pursuant to which Securities are offered (each, a "Transaction"), 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. Definitions Company Information: As defined in Section 4(a)(i). Company Financial Information: As defined in Section 2(a)(ii). 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. D-1 Master Agreement: The ISDA Master Agreement between the Counterparty and CHL, 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. Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R. ss.ss.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. Section 2. Information to be Provided by the Counterparty. (a) Prior to printing the related Prospectus Supplement, (i) 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, at a minimum: (A) The Counterparty's legal name (and any d/b/a); (B) the organizational form of the Counterparty; (C) a description of the general character of the business of the Counterparty; (D) a description of any affiliation or relationship (as set forth in Item 1119) between the Counterparty and any of the following parties: (1) CHL (or any other sponsor identified to the Counterparty by CHL); (2) the related Depositor (as identified to the Counterparty by CHL); (3) the SPV; (4) Countrywide Home Loans Servicing LP (or any other servicer or master servicer identified to the Counterparty by CHL); D-2 (5) The Bank of New York (or any other trustee identified to the Counterparty by CHL); (6) any originator identified to the Counterparty by CHL; (7) any enhancement or support provider identified to the Counterparty by CHL; and (8) any other material transaction party identified to the Counterparty by CHL. (ii) if requested by the related Depositor prior to the related Depositor taking 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, in accordance with the requirements of Regulation AB, the Counterparty shall: (A) provide the financial data required by Item 1115(b)(1) or (b)(2) of Regulation AB (as specified by the related Depositor to the Counterparty) with respect to the Counterparty (or any entity that consolidates 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 an XXXXX-compatible form (if not incorporated by reference) and hereby authorizes the related Depositor to incorporate by reference the financial data required by Item 1115(b)(2) of Regulation AB; and (B) if applicable, cause its accountants to issue their consent to the filing or the incorporation by reference of such financial statements in the Registration Statement. (b) 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, (i) no later than the 25th calendar day of each month, the Counterparty shall (1) notify the related Depositor in writing of any affiliations or relationships that develop following the Closing Date between the Counterparty and any of the parties specified in Section 2(a)(i)(D) (and any other parties identified in writing by the related Depositor) and (2) provide to the related Depositor a description of such proceedings, affiliations or relationships as described in Section 2(b)(i)(1); (ii) if the Counterparty provided Company Financial Information to the related Depositor for the Prospectus Supplement, within 5 Business Days of the release of any updated financial data, the Counterparty shall (1) D-3 provide current Company Financial Information as required under Item 1115(b) of Regulation AB to the related Depositor in an XXXXX-compatible form (if not incorporated by reference) and hereby authorizes the related Depositor to incorporate by reference the financial data required by Item 1115(b)(2) of Regulation AB, 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 (iii) if the related Depositor requests Company Financial Information from the Counterparty, for the purpose of compliance with Item 1115(b) of Regulation AB following the Closing Date, the Counterparty shall upon five Business Days written notice either (A), (1) provide current Company Financial Information as required under Item 1115(b) of Regulation AB to the related Depositor in an XXXXX-compatible form (if not incorporated by reference) and hereby authorizes the related Depositor to incorporate by reference the financial data required by Item 1115(b)(2) of Regulation AB, (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 5 Business Days of the release of any updated financial data, provide current Company Financial Information as required under Item 1115(b) of Regulation AB to the related Depositor in an XXXXX-compatible 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 as provided below. 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)(ii) or Section 2(b)(iii)(A), that, except as disclosed in writing the related Depositor prior to such date: (i) The Counterparty or the entity that consolidates the Counterparty is required to file reports with the Commission pursuant to section 13(a) or 15(d) of the Exchange Act. (ii) The Counterparty or the entity that consolidates the Counterparty has filed all reports and other materials required to be filed by such requirements during the preceding 12 months (or such shorter period that such party was required to file such reports and materials). (iii) The reports filed by the Counterparty, or entity that consolidates the Counterparty, include (or properly incorporate by reference) the financial statements of the Counterparty. D-4 (iv) 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. (v) 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. (vi) 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 the Counterparty has provided Company Financial Information that is incorporated by reference into the Registration Statement of the related Depositor, the Counterparty, so long as the related Depositor is required to file Exchange Act Reports with respect to the SPV, will file promptly all documents required to be filed with the Commission pursuant to Section 13 or 14 of the Exchange Act. If permitted by the Exchange Act, the related Depositor will take 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. (c) If at any time, the Counterparty ceases to meet the requirements of Item 1101(c)(1) of Regulation AB with respect to the incorporation by reference of the financial information of third parties, the Counterparty shall provide notice to the related Depositor, and if any Company Financial Information is required to be included in the Registration Statement, or the Exchange Act Reports of the SPV, will provide to the related Depositor such Company Financial Information in D-5 XXXXX-compatible format no later than the 25th calendar day of the month following the date on which the Counterparty ceased to meet the requirements. (d) The Counterparty agrees that 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. 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 broker dealer acting as underwriter, 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, 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 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; (ii) any breach by the Counterparty of a representation or warranty set forth in Section 3(a) 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 any breach by the Counterparty of a representation or warranty pursuant to Section 3 to the extent made as of a date subsequent to the Closing Date. (b) (i) 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 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, except as provided in clause (ii) of this paragraph, 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 D-6 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). (ii) If the Counterparty has failed to deliver any information, report, certification or accountants' consent when and as required under Section 2, which continues unremedied for the lesser of ten calendar days after the date on which such information, report, certification or accountants' consent was required to be delivered or such period 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), or if the Counterparty has provided Company Information, any breach by the Counterparty of a representation or warranty pursuant to Section 3 to the extent made as of a date subsequent to such closing date, and the Counterparty has not, at its own cost, within the period in which the applicable Exchange Act Report for which such information is required can be timely filed caused another entity (which meets any applicable ratings threshold in the Derivative Agreement) to replace the Counterparty as party to the Derivative Agreement that (i) has signed an agreement with CHL and the Depositors substantially in the form of this Agreement, (ii) has agreed to deliver any information, report, certification or accountants' consent when and as required under Section 2 hereof and (iii) is approved by the Depositor (which approval shall not be unreasonably withheld) and any rating agency, if applicable, on terms substantially similar to the Derivative Agreement, then an Additional Termination Event (as defined in the Master Agreement) shall have occurred with the Counterparty as the sole Affected Party. 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). (iii) In the event that the Counterparty or the SPV has found a replacement entity in accordance with Section 2(b)(ii), 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. D-7 Section 5. Miscellaneous. (a) 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. (b) 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. (c) 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. (d) Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without regard to the conflict of laws principles thereof. (e) 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. (f) 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. (g) 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. (h) 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. (i) 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 D-8 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. D-9 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: Vice President CWMBS, INC. By: /s/ Xxxxxx Xxxxx --------------------------------- Name: Xxxxxx Xxxxx Title: Vice President CWALT, INC. By: /s/ Xxxxxx Xxxxx --------------------------------- Name: Xxxxxx Xxxxx Title: Vice President CWHEQ, INC. By: /s/ Xxxxxx Xxxxx --------------------------------- Name: Xxxxxx Xxxxx Title: Vice President COUNTRYWIDE HOME LOANS, INC. By: /s/ Xxxxxx Xxxxx --------------------------------- Name: Xxxxxx Xxxxx Title: Senior Vice President D-10 XXXXXX BROTHERS SPECIAL FINANCING INC. By: /s/ Xxxxxxxxxx X. Xxxxxx ---------------------------------- Name: Xxxxxxxxxx X. Xxxxxx Title: Vice President D-11