Document:

Unassociated Document

    

      (Multicurrency—Cross
        Border)

       

      ISDAÒ

      International
        Swap Dealers Association, Inc.

       

      MASTER
        AGREEMENT

      dated
        as
        of May 31, 2007

       

      
        	
                JPMorgan
                  Chase Bank, N.A.

              	
                 

                and

              	
                LaSalle
                  Bank National Association, not in its individual capacity but solely
                  as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to C-BASS 2007-CB5 Trust, C-BASS Mortgage Loan
                  Asset-Backed Certificates, Series 2007-CB5

                (“Counterparty”)

              
	
                _______________________________________

                ("Party
                  A")

              	 	
                _________________________________________

                ("Party
                  B")

              

      

      

      have
        entered and/or anticipate entering into one or more transactions (each a
        “Transaction”) that are or will be governed by this Master Agreement, which
        includes the schedule (the “Schedule”), and the documents and other confirming
        evidence (each a “Confirmation”) exchanged between the parties confirming those
        Transactions.

       

      Accordingly,
        the parties agree as follows:—

       

      
        	1.	
                Interpretation

              

      

       

      (a) Definitions.
        The
        terms defined in Section 14 and in the Schedule will have the meanings therein
        specified for the purpose of this Master Agreement.

       

      (b) Inconsistency.
        In the
        event of any inconsistency between the provisions of the Schedule and the
        other
        provisions of this Master Agreement, the Schedule will prevail. In the event
        of
        any inconsistency between the provisions of any Confirmation and this Master
        Agreement (including the Schedule), such Confirmation will prevail for the
        purpose of the relevant Transaction.

       

      (c) Single
        Agreement.
        All
        Transactions are entered into in reliance on the fact that this Master Agreement
        and all Confirmations form a single agreement between the parties (collectively
        referred to as this “Agreement”), and the parties would not otherwise enter into
        any Transactions.

       

      
        	2.	
                Obligations

              

      

       

      (a) General
        Conditions.

       

      (i) Each
        party will make each payment or delivery specified in each Confirmation to
        be
        made by it, subject to the other provisions of this Agreement.

       

      (ii) Payments
        under this Agreement will be made on the due date for value on that date
        in the
        place
        of the
        account specified in the relevant Confirmation or otherwise pursuant to this
        Agreement, in freely transferable funds and in the manner customary for payments
        in the required currency. Where
        settlement is by delivery (that is, other than by payment), such delivery
        will
        be made for
        receipt
        on the due date in the manner customary for the relevant obligation unless
        otherwise specified in the relevant Confirmation or elsewhere in this
        Agreement.

       

      (iii) Each
        obligation of each party under Section 2(a)(i) is subject to (1) the condition
        precedent that no Event of Default or Potential Event of Default with respect
        to
        the other party has occurred and is continuing, (2) the condition precedent
        that
        no Early Termination Date in respect of the relevant Transaction has occurred
        or
        been effectively designated and (3) each other applicable condition precedent
        specified in this Agreement.

      

        Copyright
          © 1992 by International Swap Dealers Association, Inc.

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (b) Change
        of Account.
        Either
        party may change its account for receiving a payment or delivery by giving
        notice to the other party at least five Local Business Days prior to the
        scheduled date for the payment or delivery to which such change applies unless
        such other party gives timely notice of a reasonable objection to such
        change.

       

      (c) Netting.
        If on
        any date amounts would otherwise be payable:—

       

      (i) in
        the
        same currency; and

       

      (ii) in
        respect of the same Transaction,

       

      by
        each
        party to the other, then, on such date, each party’s obligation to make payment
        of any such amount will be automatically satisfied and discharged and, if
        the
        aggregate amount that would otherwise have been payable by one party exceeds
        the
        aggregate amount that would otherwise have been payable by the other party,
        replaced by an obligation upon the party by whom the larger aggregate amount
        would have been payable to pay to the other party the excess of the larger
        aggregate amount over the smaller aggregate amount.

       

      The
        parties may elect in respect of two or more Transactions that a net amount
        will
        be determined in respect of all amounts payable on the same date in the same
        currency in respect of such Transactions, regardless of whether such amounts
        are
        payable in respect of the same Transaction. The election may be made in the
        Schedule or a Confirmation by specifying that subparagraph (ii) above will
        not
        apply to the Transactions identified as being subject to the election, together
        with the starting date (in which case subparagraph (ii) above will not, or
        will
        cease to, apply to such Transactions from such date). This election may be
        made
        separately for different groups of Transactions and will apply separately
        to
        each pairing of Offices through which the parties make and receive payments
        or
        deliveries.

       

      (d) Deduction
        or Withholding for Tax.

       

      (i) Gross-Up.
        All
        payments under this Agreement will be made without any deduction or withholding
        for or on account of any Tax unless such deduction or withholding is required
        by
        any applicable law, as modified by the practice of any relevant governmental
        revenue authority, then in effect. If a party is so required to deduct or
        withhold, then that party (“X”) will:—

       

      (1) promptly
        notify the other party (“Y”) of such requirement;

       

      (2) pay
        to
        the relevant authorities the full amount required to be deducted or withheld
        (including the full amount required to be deducted or withheld from any
        additional amount paid by X to Y under this Section 2(d)) promptly upon the
        earlier of determining that such deduction or withholding is required or
        receiving notice that such amount has been assessed against Y;

       

      (3) promptly
        forward to Y an official receipt (or a certified copy), or other documentation
        reasonably acceptable to Y, evidencing such payment to such authorities;
        and

       

      (4) if
        such
        Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
        Y is
otherwise
        entitled under this Agreement, such additional amount as is necessary to
        ensure that
        the
        net amount actually received by Y (free and clear of Indemnifiable Taxes,
        whether assessed against X or Y) will equal the full amount Y would have
        received had no such deduction or withholding been required. However, X will
        not
        be required to pay any additional amount to Y to the extent that it would
        not be
        required to be paid but for:—

       

      (A) the
        failure by Y to comply with or perform any agreement contained in Section
        4(a)(i), 4(a)(iii) or 4(d); or

       

      (B) the
        failure of a representation made by Y pursuant to Section 3(f) to be accurate
        and true unless such failure would not have occurred but for (I) 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
        (II) a Change in Tax Law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        (ii) Liability.
          If:—

         

      

      (1) X
        is
        required by any applicable law, as modified by the practice of any relevant
        governmental revenue authority, to make any deduction or withholding in respect
        of which X would not be required to pay an additional amount to Y under Section
        2(d)(i)(4);

       

      (2) X
        does
        not so deduct or withhold; and

       

      (3) a
        liability resulting from such Tax is assessed directly against X,

       

      then,
        except to the extent Y has satisfied or then satisfies the liability resulting
        from such Tax, Y will promptly pay to X the amount of such liability (including
        any related liability for interest, but including any related liability for
        penalties only if Y has failed to comply with or perform any agreement contained
        in Section 4(a)(i), 4(a)(iii) or 4(d)).

       

      (e) Default
        Interest; Other Amounts.
        Prior
        to the occurrence or effective designation of an Early Termination Date in
        respect of the relevant Transaction, a party that defaults in the performance
        of
        any payment obligation will, to the extent permitted by law and subject to
        Section 6(c), be required to pay interest (before as well as after judgment)
        on
        the overdue amount to the other party on demand in the same currency as such
        overdue amount, for the period from (and including) the original due date
        for
        payment to (but excluding) the date of actual payment, at the Default Rate.
        Such
        interest will be calculated on the basis of daily compounding and the actual
        number of days elapsed. If, prior to the occurrence or effective designation
        of
        an Early Termination Date in respect of the relevant Transaction, a party
        defaults in the performance of any obligation required to be settled by
        delivery, it will compensate the other party on demand if and to the extent
        provided for in the relevant Confirmation or elsewhere in this
        Agreement.

       

      
        	3.	
                Representations

              

      

       

      Each
        party represents to the other party (which representations will be deemed
        to be
        repeated by each party on each date on which a Transaction is entered into
        and,
        in the case of the representations in Section 3(f), at all times until the
        termination of this Agreement) that:—

       

      (a) Basic
        Representations.

       

      (i) Status.
        It is
        duly organised and validly existing under the laws of the jurisdiction of
        its
        organisation or incorporation and, if relevant under such laws, in good
        standing;

       

      (ii) Powers.
        It has
        the power to execute this Agreement and any other documentation relating
        to this
        Agreement to which it is a party, to deliver this Agreement and any other
        documentation relating to this Agreement that it is required by this Agreement
        to deliver and to perform its obligations under this Agreement and any
        obligations it has under any Credit Support Document to which it is a party
        and
        has taken all necessary action to authorise such execution, delivery and
        performance;

       

      (iii) No
        Violation or Conflict.
        Such
        execution, delivery and performance do not violate or conflict with any law
        applicable to it, any provision of its constitutional documents, any order
        or
        judgment of any court or other agency of government applicable to it or any
        of
        its assets or any contractual restriction binding on or affecting it or any
        of
        its assets;

       

      (iv) Consents.
        All
        governmental and other consents that are required to have been obtained by
        it
        with respect to this Agreement or any Credit Support Document to which it
        is a
        party have been obtained and are in full force and effect and all conditions
        of
        any such consents have been complied with; and

       

      (v) Obligations
        Binding.
        Its
        obligations under this Agreement and any Credit Support Document to which
        it is
        a party constitute its legal, valid and binding obligations, enforceable
        in
        accordance with their respective terms (subject to applicable bankruptcy,
        reorganisation, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles
        of
        general application (regardless of whether enforcement is sought in a proceeding
        in equity or at law)).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b) Absence
        of Certain Events.
        No
        Event of Default or Potential Event of Default or, to its knowledge, Termination
        Event with respect to it has occurred and is continuing and no such event
        or
        circumstance would occur as a result of its entering into or performing its
        obligations under this Agreement or any Credit Support Document to which
        it is a
        party.

       

      (c) Absence
        of Litigation.
        There
        is not pending or, to its knowledge, threatened against it or any of its
        Affiliates any action, suit or proceeding at law or in equity or before any
        court, tribunal, governmental body, agency or official or any arbitrator
        that is
        likely to affect the legality, validity or enforceability against it of this
        Agreement or any Credit Support Document to which it is a party or its ability
        to perform its obligations under this Agreement or such Credit Support
        Document.

       

      (d) Accuracy
        of Specified Information.
        All
        applicable information that is furnished in writing by or on behalf of it
        to the
        other party and is identified for the purpose of this Section 3(d) in the
        Schedule is, as of the date of the information, true, accurate and complete
        in
        every material respect.

       

      (e) Payer
        Tax Representation.
        Each
        representation specified in the Schedule as being made by it for the purpose
        of
        this Section 3(e) is accurate and true.

       

      (f) Payee
        Tax Representations.
        Each
        representation specified in the Schedule as being made by it for the purpose
        of
        this Section 3(f) is accurate and true.

       

      
        	4.	
                Agreements

              

      

       

      Each
        party agrees with the other that, so long as either party has or may have
        any
        obligation under this Agreement or under any Credit Support Document to which
        it
        is a party:—

       

      (a) Furnish
        Specified Information.
        It will
        deliver to the other party or, in certain cases under subparagraph (iii)
        below,
        to such government or taxing authority as the other party reasonably
        directs:

       

      (i) any
        forms, documents or certificates relating to taxation specified in the Schedule
        or any Confirmation;

       

      (ii) any
        other
        documents specified in the Schedule or any Confirmation; and

       

      (iii) upon
        reasonable demand by such other party, any form or document that may be required
        or reasonably requested in writing in order to allow such other party or
        its
        Credit Support Provider to make a payment under this Agreement or any applicable
        Credit Support Document without any deduction or withholding for or on account
        of any Tax or with such deduction or withholding at a reduced rate (so long
        as
        the completion, execution or submission of such form or document would not
        materially prejudice the legal or commercial position of the party in receipt
        of
        such demand), with any such form or document to be accurate and completed
        in a
        manner reasonably satisfactory to such other party and to be executed and
        to be
        delivered with any reasonably required certification,

       

      in
        each
        case by the date specified in the Schedule or such Confirmation or, if none
        is
        specified, as soon as reasonably practicable.

       

      (b) Maintain
        Authorisations.
        It will
        use all reasonable efforts to maintain in full force and effect all consents
        of
        any governmental or other authority that are required to be obtained by it
        with
        respect to this Agreement or any Credit Support Document to which it is a
        party
        and will use all reasonable efforts to obtain any that may become necessary
        in
        the future.

       

      (c) Comply
        with Laws.
        It will
        comply in all material respects with all applicable laws and orders to which
        it
        may be subject if failure so to comply would materially impair its ability
        to
        perform its obligations under this Agreement or any Credit Support Document
        to
        which it is a party.

       

      (d) Tax
        Agreement.
        It will
        give notice of any failure of a representation made by it under Section 3(f)
        to
        be accurate and true promptly upon learning of such failure.

       

      (e) Payment
        of Stamp Tax.
        Subject
        to Section 11, it will pay any Stamp Tax levied or imposed upon it or in
        respect
        of its execution or performance of this Agreement by a jurisdiction in which
        it
        is incorporated, organised, managed and controlled, or considered to have
        its
        seat, or in which a branch or office through which it is acting for the purpose
        of this Agreement is located (“Stamp Tax Jurisdiction”) and will indemnify the
        other party against any Stamp Tax levied or imposed upon the other party
        or in
        respect of the other party’s execution or performance of this Agreement by any
        such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with
        respect to the other party.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	5.	
                Events
                  of Default and Termination
                  Events

              

      

       

      (a) Events
        of Default.
        The
        occurrence at any time with respect to a party or, if applicable, any Credit
        Support Provider of such party or any Specified Entity of such party of any
        of
        the following events constitutes an event of default (an “Event of Default”)
        with respect to such party:—

       

      (i) Failure
        to Pay or Deliver.
        Failure
        by the party to make, when due, any payment under this Agreement or delivery
        under Section 2(a)(i) or 2(e) required to be made by it if such failure is
        not
        remedied on or before the third Local Business Day after notice of such failure
        is given to the party;

       

      (ii) Breach
        of Agreement.
        Failure
        by the party to comply with or perform any agreement or obligation (other
        than
        an obligation to make any payment under this Agreement or delivery under
        Section
        2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement
        or
        obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with
        or
        performed by the party in accordance with this Agreement if such failure
        is not
        remedied on or before the thirtieth day after notice of such failure is given
        to
        the party;

       

      (iii) Credit
        Support Default.

       

      (1) Failure
        by the party or any Credit Support Provider of such party to comply with
        or
        perform any agreement or obligation to be complied with or performed by it
        in
        accordance with any Credit Support Document if such failure is continuing
        after
        any applicable grace period has elapsed;

       

      (2) the
        expiration or termination of such Credit Support Document or the failing
        or
        ceasing of such Credit Support Document to be in full force and effect for
        the
        purpose of this Agreement (in either case other than in accordance with its
        terms) prior to the satisfaction of all obligations of such party under each
        Transaction to which such Credit Support Document relates without the written
        consent of the other party; or

       

      (3) the
        party
        or such Credit Support Provider disaffirms, disclaims, repudiates or rejects,
        in
        whole or in part, or challenges the validity of, such Credit Support
        Document;

       

      (iv) Misrepresentation.
        A
        representation (other than a representation under Section 3(e) or (f)) made
        or
        repeated or deemed to have been made or repeated by the party or any Credit
        Support Provider of such party in this Agreement or any Credit Support Document
        proves to have been incorrect or misleading in any material respect when
        made or
        repeated or deemed to have been made or repeated;

       

      (v) Default
        under Specified Transaction.
        The
        party, any Credit Support Provider of such party or any applicable Specified
        Entity of such party (1) defaults under a Specified Transaction and, after
        giving effect to any applicable notice requirement or grace period, there
        occurs
        a liquidation of, an acceleration of obligations under, or an early termination
        of, that Specified Transaction, (2) defaults, after giving effect to any
        applicable notice requirement or grace period, in making any payment or delivery
        due on the last payment, delivery or exchange date of, or any payment on
        early
        termination of, a Specified Transaction (or such default continues for at
        least
        three Local Business Days if there is no applicable notice requirement or
        grace
        period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or
        in
        part, a Specified Transaction (or such action is taken by any person or entity
        appointed or empowered to operate it or act on its behalf);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (vi) Cross
        Default.
        If
“Cross Default” is specified in the Schedule as applying to the party, the
        occurrence or existence of (1) a default, event of default or other similar
        condition or event (however described)
        in respect of such party, any Credit Support Provider of such party or any
        applicable Specified Entity of such party under one or more agreements or
        instruments relating to Specified Indebtedness of any of them (individually
        or
        collectively) in an aggregate amount of not less than the applicable Threshold
        Amount (as specified in the Schedule) which has resulted in such Specified
        Indebtedness becoming, or becoming capable at such time of being declared,
        due
        and payable under such agreements or instruments, before it would otherwise
        have
        been due and payable or (2) a default by such party, such Credit Support
        Provider or such Specified Entity (individually or collectively) in making
        one
        or more payments on the due date thereof in an aggregate amount of not less
        than
        the applicable Threshold Amount under such agreements or instruments (after
        giving effect to any applicable notice requirement or grace
        period);

       

      (vii) Bankruptcy.
        The
        party, any Credit Support Provider of such party or any applicable Specified
        Entity of such party:—

       

      (1) is
        dissolved (other than pursuant to a consolidation, amalgamation or merger);
        (2)
        becomes insolvent or is unable to pay its debts or fails or admits in writing
        its inability generally to pay its debts as they become due; (3) makes a
        general
        assignment, arrangement or composition with or for the benefit of its creditors;
        (4) institutes or has instituted against it a proceeding seeking a judgment
        of
        insolvency or bankruptcy or any other relief under any bankruptcy or insolvency
        law or other similar law affecting creditors’ rights, or a petition is presented
        for its winding-up or liquidation, and, in the case of any such proceeding
        or
        petition instituted or presented against it, such proceeding or petition
        (A)
        results in a judgment of insolvency or bankruptcy or the entry of an order
        for
        relief or the making of an order for its winding-up or liquidation or (B)
        is not
        dismissed, discharged, stayed or restrained in each case within 30 days of
        the
        institution or presentation thereof; (5) has a resolution passed for its
        winding-up, official management or liquidation (other than pursuant to a
        consolidation, amalgamation or merger); (6) seeks or becomes subject to the
        appointment of an administrator, provisional liquidator, conservator, receiver,
        trustee, custodian or other similar official for it or for all or substantially
        all its assets; (7) has a secured party take possession of all or substantially
        all its assets or has a distress, execution, attachment, sequestration or
        other
        legal process levied, enforced or sued on or against all or substantially
        all
        its assets and such secured party maintains possession, or any such process
        is
        not dismissed, discharged, stayed or restrained, in each case within 30 days
        thereafter; (8) causes or is subject to any event with respect to it which,
        under the applicable laws of any jurisdiction, has an analogous effect to
        any of
        the events specified in clauses (1) to (7) (inclusive); or (9) takes any
        action
        in furtherance of, or indicating its consent to, approval of, or acquiescence
        in, any of the foregoing acts; or

       

      (viii) Merger
        Without Assumption.
        The
        party or any Credit Support Provider of such party consolidates or amalgamates
        with, or merges with or into, or transfers all or substantially all its assets
        to, another entity and, at the time of such consolidation, amalgamation,
        merger
        or transfer:—

       

      (1) the
        resulting, surviving or transferee entity fails to assume all the obligations
        of
        such party or such Credit Support Provider under this Agreement or any Credit
        Support Document to which it or its predecessor was a party by operation
        of law
        or pursuant to an agreement reasonably satisfactory to the other party to
        this
        Agreement; or

       

      (2) the
        benefits of any Credit Support Document fail to extend (without the consent
        of
        the other party) to the performance by such resulting, surviving or transferee
        entity of its obligations under this Agreement.

       

      (b) Termination
        Events.
        The
        occurrence at any time with respect to a party or, if applicable, any Credit
        Support Provider of such party or any Specified Entity of such party of any
        event specified below constitutes an Illegality if the event is specified
        in (i)
        below, a Tax Event if the event is specified in (ii) below or a Tax Event
        Upon
        Merger if the event is specified in (iii) below, and, if specified to be
        applicable, a Credit Event Upon
        Merger if the event is specified pursuant to (iv) below or an Additional
        Termination Event if the event is specified pursuant to (v) below:—

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (i) Illegality.
        Due to
        the adoption of, or any change in, any applicable law after the date on which
        a
        Transaction is entered into, or due to the promulgation of, or any change
        in,
        the interpretation by any court, tribunal or regulatory authority with competent
        jurisdiction of any applicable law after such date, it becomes unlawful (other
        than as a result of a breach by the party of Section 4(b)) for such party
        (which
        will be the Affected Party):—

       

      (1) to
        perform any absolute or contingent obligation to make a payment or delivery
        or
        to receive a payment or delivery in respect of such Transaction or to comply
        with any other material provision of this Agreement relating to such
        Transaction; or

       

      (2) to
        perform, or for any Credit Support Provider of such party to perform, any
        contingent or other obligation which the party (or such Credit Support Provider)
        has under any Credit Support Document relating to such Transaction;

       

      (ii) Tax
        Event.
        Due to
        (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) a Change in Tax Law, the party (which will be the
        Affected Party) will, or there is a substantial likelihood that it will,
        on the
        next succeeding Scheduled Payment Date (1) be required to pay to the other
        party
        an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)
        (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)
        receive a payment from which an amount is required to be deducted or withheld
        for or on account of a Tax (except in respect of interest under Section 2(e),
        6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect
        of
        such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A)
        or (B));

       

      (iii) Tax
        Event Upon Merger.
        The
        party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will
        either (1) be required to pay an additional amount in respect of an
        Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
        under
        Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
        has been deducted or withheld for or on account of any Indemnifiable Tax
        in
        respect of which the other party is not required to pay an additional amount
        (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as
        a
        result of a party consolidating or amalgamating with, or merging with or
        into,
        or transferring all or substantially all its assets to, another entity (which
        will be the Affected Party) where such action does not constitute an event
        described in Section 5(a)(viii);

       

      (iv) Credit
        Event Upon Merger.
        If
“Credit Event Upon Merger” is specified in the Schedule as applying to the
        party, such party (“X”), any Credit Support Provider of X or any applicable
        Specified Entity of X consolidates or amalgamates with, or merges with or
        into,
        or transfers all or substantially all its assets to, another entity and such
        action does not constitute an event described in Section 5(a)(viii) but the
        creditworthiness of the resulting, surviving or transferee entity is materially
        weaker than that of X, such Credit Support Provider or such Specified Entity,
        as
        the case may be, immediately prior to such action (and, in such event, X
        or its
        successor or transferee, as appropriate, will be the Affected Party);
        or

       

      (v) Additional
        Termination Event.
        If any
“Additional Termination Event” is specified in the Schedule or any Confirmation
        as applying, the occurrence of such event (and, in such event, the Affected
        Party or Affected Parties shall be as specified for such Additional Termination
        Event in the Schedule or such Confirmation).

       

      (c) Event
        of Default and Illegality.
        If an
        event or circumstance which would otherwise constitute or give rise to an
        Event
        of Default also constitutes an Illegality, it will be treated as an Illegality
        and will not constitute an Event of Default.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	6.	
                Early
                  Termination

              

      

       

      (a) Right
        to Terminate Following Event of Default.
        If at
        any time an Event of Default with respect to a party (the “Defaulting Party”)
        has occurred and is then continuing, the other party (the “Non-defaulting
        Party”) may, by not more than 20 days notice to the Defaulting Party specifying
        the relevant Event of Default, designate a day not earlier than the day such
        notice is effective as an Early Termination Date in respect of all outstanding
        Transactions. If, however, “Automatic Early Termination” is specified in the
        Schedule as applying to a party, then an Early Termination Date in respect
        of
        all outstanding Transactions will occur immediately upon the occurrence with
        respect to such party of an Event of Default specified in Section 5(a)(vii)(1),
        (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
        immediately preceding the institution of the relevant proceeding or the
        presentation of the relevant petition upon the occurrence with respect to
        such
        party of an Event of Default specified in Section 5(a)(vii)(4) or, to the
        extent
        analogous thereto, (8).

       

      (b) Right
        to Terminate Following Termination Event.

       

      (i) Notice.
        If a
        Termination Event occurs, an Affected Party will, promptly upon becoming
        aware
        of it, notify the other party, specifying the nature of that Termination
        Event
        and each Affected Transaction and will also give such other information about
        that Termination Event as the other party may reasonably require.

       

      (ii) Transfer
        to Avoid Termination Event.
        If
        either an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there
        is
        only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened
        Party is the Affected Party, the Affected Party will, as a condition to its
        right to designate an Early Termination Date under Section 6(b)(iv), use
        all
        reasonable efforts (which will not require such party to incur a loss, excluding
        immaterial, incidental expenses) to transfer within 20 days after it gives
        notice under Section 6(b)(i) all its rights and obligations under this Agreement
        in respect of the Affected Transactions to another of its Offices or Affiliates
        so that such Termination Event ceases to exist.

       

      If
        the
        Affected Party is not able to make such a transfer it will give notice to
        the
        other party to that effect within such 20 day period, whereupon the other
        party
        may effect such a transfer within 30 days after the notice is given under
        Section 6(b)(i).

       

      Any
        such
        transfer by a party under this Section 6(b)(ii) will be subject to and
        conditional upon the prior written consent of the other party, which consent
        will not be withheld if such other party’s policies in effect at such time would
        permit it to enter into transactions with the transferee on the terms
        proposed.

       

      (iii) Two
        Affected Parties.
        If an
        Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two
        Affected Parties, each party will use all reasonable efforts to reach agreement
        within 30 days after notice thereof is given under Section 6(b)(i) on action
        to
        avoid that Termination Event.

       

      (iv) Right
        to Terminate.
        If:—

       

      (1) a
        transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as
        the case may be, has not been effected with respect to all Affected Transactions
        within 30 days after an Affected Party gives notice under Section 6(b)(i);
        or

       

      (2) an
        Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
        Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
        Party is not the Affected Party,

       

      either
        party in the case of an Illegality, the Burdened Party in the case of a Tax
        Event Upon Merger, any Affected Party in the case of a Tax Event or an
        Additional Termination Event if there is more than one Affected Party, or
        the
        party which is not the Affected Party in the case of a Credit Event Upon
        Merger
        or an Additional Termination Event if there is only one Affected Party may,
        by
        not more than 20 days notice to the other party and provided that the relevant
        Termination Event is then continuing,
        designate a day not earlier than the day such notice is effective as an Early
        Termination Date in respect of all Affected Transactions.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c) Effect
        of Designation.

       

      (i) If
        notice
        designating an Early Termination Date is given under Section 6(a) or (b),
        the Early Termination Date will occur on the date so designated, whether
        or not
        the relevant Event of Default or Termination Event is then
        continuing.

       

      (ii) Upon
        the
        occurrence or effective designation of an Early Termination Date, no further
        payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
        Terminated Transactions will be required to be made, but without prejudice
        to
        the other provisions of this Agreement. The amount, if any, payable in respect
        of an Early Termination Date shall be determined pursuant to Section
        6(e).

       

      (d) Calculations.

       

      (i) Statement.
        On or
        as soon as reasonably practicable following the occurrence of an Early
        Termination Date, each party will make the calculations on its part, if any,
        contemplated by Section 6(e) and will provide to the other party a statement
        (1)
        showing, in reasonable detail, such calculations (including all relevant
        quotations and specifying any amount payable under Section 6(e)) and (2)
        giving
        details of the relevant account to which any amount payable to it is to be
        paid.
        In the absence of written confirmation from the source of a quotation obtained
        in determining a Market Quotation, the records of the party obtaining such
        quotation will be conclusive evidence of the existence and accuracy of such
        quotation.

       

      (ii) Payment
        Date.
        An
        amount calculated as being due in respect of any Early Termination Date under
        Section 6(e) will be payable on the day that notice of the amount payable
        is
        effective (in the case of an Early Termination Date which is designated or
        occurs as a result of an Event of Default) and on the day which is two Local
        Business Days after the day on which notice of the amount payable is effective
        (in the case of an Early Termination Date which is designated as a result
        of a
        Termination Event). Such amount will be paid together with (to the extent
        permitted under applicable law) interest thereon (before as well as after
        judgment) in the Termination Currency, from (and including) the relevant
        Early
        Termination Date to (but excluding) the date such amount is paid, at the
        Applicable Rate. Such interest will be calculated on the basis of daily
        compounding and the actual number of days elapsed.

       

      (e) Payments
        on Early Termination.
        If an
        Early Termination Date occurs, the following provisions shall apply based
        on the
        parties’ election in the Schedule of a payment measure, either “Market
        Quotation” or “Loss”, and a payment method, either the “First Method” or the
“Second Method”. If the parties fail to designate a payment measure or payment
        method in the Schedule, it will be deemed that “Market Quotation” or the “Second
        Method”, as the case may be, shall apply. 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.

       

      (i) Events
        of Default.
        If the
        Early Termination Date results from an Event of Default:—

       

      (1) First
        Method and Market Quotation.
        If the
        First Method and Market Quotation apply, the Defaulting Party will pay to
        the
        Non-defaulting Party the excess, if a positive number, of (A) the sum of
        the
        Settlement Amount (determined by the Non-defaulting Party) in respect of
        the
        Terminated Transactions and the Termination Currency Equivalent of the Unpaid
        Amounts owing to the Non-defaulting Party over (B) the Termination Currency
        Equivalent of the Unpaid Amounts owing to the Defaulting Party.

       

      (2) First
        Method and Loss.
        If the
        First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
        Party, if a positive number, the Non-defaulting Party’s Loss in respect of this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (3) Second
        Method and Market Quotation.
        If the
        Second Method and Market Quotation apply, an amount will be payable equal
        to (A)
        the sum of the Settlement Amount (determined by
        the
Non-defaulting
        Party) in respect of the Terminated Transactions and the Termination Currency
        Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B)
        the
        Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting
        Party. If that amount is a positive number, the Defaulting Party will pay
        it to
        the Non-defaulting Party; if it is a negative number, the Non-defaulting
        Party
        will pay the absolute value of that amount to the Defaulting Party.

       

      (4) Second
        Method and Loss.
        If the
        Second Method and Loss apply, an amount will be payable equal to the
        Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
        positive number, the Defaulting Party will pay it to the Non-defaulting Party;
        if it is a negative number, the Non-defaulting Party will pay the absolute
        value
        of that amount to the Defaulting Party.

       

      (ii) Termination
        Events.
        If the
        Early Termination Date results from a Termination Event:—

       

      (1) One
        Affected Party.
        If
        there is one Affected Party, the amount payable will be determined in accordance
        with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4),
        if
        Loss applies, except that, in either case, references to the Defaulting Party
        and to the Non-defaulting Party will be deemed to be references to the Affected
        Party and the party which is not the Affected Party, respectively, and, if
        Loss
        applies and fewer than all the Transactions are being terminated, Loss shall
        be
        calculated in respect of all Terminated Transactions.

       

      (2) Two
        Affected Parties.
        If
        there are two Affected Parties:—

       

      (A) if
        Market
        Quotation applies, each party will determine a Settlement Amount in respect
        of
        the Terminated Transactions, and an amount will be payable equal to (I) the
        sum
        of (a) one-half of the difference between the Settlement Amount of the party
        with the higher Settlement Amount (“X”) and the Settlement Amount of the party
        with the lower Settlement Amount (“Y”) and (b) the Termination Currency
        Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency
        Equivalent of the Unpaid Amounts owing to Y; and

       

      (B) if
        Loss
        applies, each party will determine its Loss in respect of this Agreement
        (or, if
        fewer than all the Transactions are being terminated, in respect of all
        Terminated Transactions) and an amount will be payable equal to one-half
        of the
        difference between the Loss of the party with the higher Loss (“X”) and the Loss
        of the party with the lower Loss (“Y”).

       

      If
        the
        amount payable is a positive number, Y will pay it to X; if it is a negative
        number, X will pay the absolute value of that amount to Y.

       

      (iii) Adjustment
        for Bankruptcy.
        In
        circumstances where an Early Termination Date occurs because “Automatic Early
        Termination” applies in respect of a party, the amount determined under this
        Section 6(e) will be subject to such adjustments as are appropriate and
        permitted by law to reflect any payments or deliveries made by one party
        to the
        other under this Agreement (and retained by such other party) during the
        period
        from the relevant Early Termination Date to the date for payment determined
        under Section 6(d)(ii).

       

      (iv) Pre-Estimate.
        The
        parties agree that if Market Quotation applies an amount recoverable under
        this
        Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such
        amount
        is payable for the loss of bargain and the loss of protection against future
        risks and except as otherwise provided in this Agreement neither party will
        be
        entitled to recover any additional damages as a consequence of such
        losses.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	7.	
                Transfer

              

      

       

      Subject
        to Section 6(b)(ii), neither this Agreement nor any interest or obligation
        in or
        under this Agreement may be transferred (whether by way of security or
        otherwise) by either party without the prior written consent of the other
        party,
        except that:—

       

      (a) a
        party
        may make such a transfer of this Agreement pursuant to a consolidation or
        amalgamation with, or merger with or into, or transfer of all or substantially
        all its assets to, another entity (but without prejudice to any other right
        or
        remedy under this Agreement); and

       

      (b) a
        party
        may make such a transfer of all or any part of its interest in any amount
        payable to it from a Defaulting Party under Section 6(e).

       

      Any
        purported transfer that is not in compliance with this Section will be
        void.

       

      
        	8.	
                Contractual
                  Currency

              

      

       

      (a) Payment
        in the Contractual Currency.
        Each
        payment under this Agreement will be made in the relevant currency specified
        in
        this Agreement for that payment (the “Contractual Currency”). To the extent
        permitted by applicable law, any obligation to make payments under this
        Agreement in the Contractual Currency will not be discharged or satisfied
        by any
        tender in any currency other than the Contractual Currency, except to the
        extent
        such tender results in the actual receipt by the party to which payment is
        owed,
        acting in a reasonable manner and in good faith in converting the currency
        so
        tendered into the Contractual Currency, of the full amount in the Contractual
        Currency of all amounts payable in respect of this Agreement. If for any
        reason
        the amount in the Contractual Currency so received falls short of the amount
        in
        the Contractual Currency payable in respect of this Agreement, the party
        required to make the payment will, to the extent permitted by applicable
        law,
        immediately pay such additional amount in the Contractual Currency as may
        be
        necessary to compensate for the shortfall. If for any reason the amount in
        the
        Contractual Currency so received exceeds the amount in the Contractual Currency
        payable in respect of this Agreement, the party receiving the payment will
        refund promptly the amount of such excess.

       

      (b) Judgments.
        To the
        extent permitted by applicable law, if any judgment or order expressed in
        a
        currency other than the Contractual Currency is rendered (i) for the payment
        of
        any amount owing in respect of this Agreement, (ii) for the payment of any
        amount relating to any early termination in respect of this Agreement or
        (iii)
        in respect of a judgment or order of another court for the payment of any
        amount
        described in (i) or (ii) above, the party seeking recovery, after recovery
        in
        full of the aggregate amount to which such party is entitled pursuant to
        the
        judgment or order, will be entitled to receive immediately from the other
        party
        the amount of any shortfall of the Contractual Currency received by such
        party
        as a consequence of sums paid in such other currency and will refund promptly
        to
        the other party any excess of the Contractual Currency received by such party
        as
        a consequence of sums paid in such other currency if such shortfall or such
        excess arises or results from any variation between the rate of exchange
        at
        which the Contractual Currency is converted into the currency of the judgment
        or
        order for the purposes of such judgment or order and the rate of exchange
        at
        which such party is able, acting in a reasonable manner and in good faith
        in
        converting the currency received into the Contractual Currency, to purchase
        the
        Contractual Currency with the amount of the currency of the judgment or order
        actually received by such party. The term “rate of exchange” includes, without
        limitation, any premiums and costs of exchange payable in connection with
        the
        purchase of or conversion into the Contractual Currency.

       

      (c) Separate
        Indemnities.
        To the
        extent permitted by applicable law, these indemnities constitute separate
        and
        independent obligations from the other obligations in this Agreement, will
        be
        enforceable as separate and independent causes of action, will apply
        notwithstanding any indulgence granted by the party to which any payment
        is owed
        and will not be affected by judgment being obtained or claim or proof being
        made
        for any other sums payable in respect of this Agreement.

       

      (d) Evidence
        of Loss.
        For the
        purpose of this Section 8, it will be sufficient for a party to demonstrate
        that
        it would have suffered a loss had an actual exchange or purchase been
        made.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	9.	
                Miscellaneous

              

      

       

      (a) Entire
        Agreement.
        This
        Agreement constitutes the entire agreement and understanding of the parties
        with
        respect to its subject matter and supersedes all oral communication and prior
        writings with respect thereto.

       

      (b) Amendments.
        No
        amendment, modification or waiver in respect of this Agreement will be effective
        unless in writing (including a writing evidenced by a facsimile transmission)
        and executed by each of the parties or confirmed by an exchange of telexes
        or
        electronic messages on an electronic messaging system.

       

      (c) Survival
        of Obligations.
        Without
        prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties
        under this Agreement will survive the termination of any
        Transaction.

       

      (d) Remedies
        Cumulative.
        Except
        as provided in this Agreement, the rights, powers, remedies and privileges
        provided in this Agreement are cumulative and not exclusive of any rights,
        powers, remedies and privileges provided by law.

       

      (e) Counterparts
        and Confirmations.

       

      (i) This
        Agreement (and each amendment, modification and waiver in respect of it)
        may be
        executed and delivered in counterparts (including by facsimile transmission),
        each of which will be deemed an original.

       

      (ii) The
        parties intend that they are legally bound by the terms of each Transaction
        from
        the moment they agree to those terms (whether orally or otherwise). A
        Confirmation shall he entered into as soon as practicable and may he executed
        and delivered in counterparts (including by facsimile transmission) or be
        created by an exchange of telexes or by an exchange of electronic messages
        on an
        electronic messaging system, which in each case will be sufficient for all
        purposes to evidence a binding supplement to this Agreement. The parties
        will
        specify therein or through another effective means that any such counterpart,
        telex or electronic message constitutes a Confirmation.

       

      (f) No
        Waiver of Rights.
        A
        failure or delay in exercising any right, power or privilege in respect of
        this
        Agreement will not be presumed to operate as a waiver, and a single or partial
        exercise of any right, power or privilege will not be presumed to preclude
        any
        subsequent or further exercise, of that right, power or privilege or the
        exercise of any other right, power or privilege.

       

      (g) Headings.
        The
        headings used in this Agreement are for convenience of reference only and
        are
        not to affect the construction of or to be taken into consideration in
        interpreting this Agreement.

       

      
        	10.	
                Offices;
                  Multibranch Parties

              

      

       

      (a) If
        Section 10(a) is specified in the Schedule as applying, each party that enters
        into a Transaction through an Office other than its head or home office
        represents to the other party that, notwithstanding the place of booking
        office
        or jurisdiction of incorporation or organisation of such party, the obligations
        of such party are the same as if it had entered into the Transaction through
        its
        head or home office. This representation will be deemed to be repeated by
        such
        party on each date on which a Transaction is entered into.

       

      (b) Neither
        party may change the Office through which it makes and receives payments
        or
        deliveries for the purpose of a Transaction without the prior written consent
        of
        the other party.

       

      (c) If
        a
        party is specified as a Multibranch Party in the Schedule, such Multibranch
        Party may make and receive payments or deliveries under any Transaction through
        any Office listed in the Schedule, and the Office through which it makes
        and
        receives payments or deliveries with respect to a Transaction will be specified
        in the relevant Confirmation.

       

      
        	11.	
                Expenses

              

      

       

      A
        Defaulting Party will, on demand, indemnify and hold harmless the other party
        for and against all reasonable out-of-pocket expenses, including legal fees
        and
        Stamp Tax, incurred by such other party by reason of the enforcement and
        protection of its rights under this Agreement or any Credit Support Document
        to
        which the Defaulting Party is a party or by reason of the early termination
        of
        any Transaction, including, but not limited to, costs of
        collection.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	12.	
                Notices

              

      

       

      (a) Effectiveness.
        Any
        notice or other communication in respect of this Agreement may be given in
        any
        manner set forth below (except that a notice or other communication under
        Section 5 or 6 may not be given by facsimile transmission or electronic
        messaging system) to the address or number or in accordance with the electronic
        messaging system details provided (see the Schedule) and will be deemed
        effective as indicated:—

       

      (i) if
        in
        writing and delivered in person or by courier, on the date it is
        delivered;

       

      (ii) if
        sent
        by telex, on the date the recipient’s answerback is received;

       

      (iii) if
        sent
        by facsimile transmission, on the date that transmission is received by a
        responsible employee of the recipient in legible form (it being agreed that
        the
        burden of proving receipt will be on the sender and will not be met by a
        transmission report generated by the sender’s facsimile machine);

       

      (iv) if
        sent
        by certified or registered mail (airmail, if overseas) or the equivalent
        (return
        receipt requested), on the date that mail is delivered or its delivery is
        attempted; or

       

      (v) if
        sent
        by electronic messaging system, on the date that electronic message is
        received,

       

      unless
        the date of that delivery (or attempted delivery) or that receipt, as
        applicable, is not a Local Business Day or that communication is delivered
        (or
        attempted) or received, as applicable, after the close of business on a Local
        Business Day, in which case that communication shall be deemed given and
        effective on the first following day that is a Local Business Day.

       

      (b) Change
        of Addresses.
        Either
        party may by notice to the other change the address, telex or facsimile number
        or electronic messaging system details at which notices or other communications
        are to be given to it.

       

      
        	13.	
                Governing
                  Law and Jurisdiction

              

      

       

      (a) Governing
        Law.
        This
        Agreement will be governed by and construed in accordance with the law specified
        in the Schedule.

       

      (b) Jurisdiction.
        With
        respect to any suit, action or proceedings relating to this Agreement
        (“Proceedings”), each party irrevocably:—

       

      (i) submits
        to the jurisdiction of the English courts, if this Agreement is expressed
        to be
        governed by English law, or to the non-exclusive jurisdiction of the courts
        of
        the State of New York and the United States District Court located in the
        Borough of Manhattan in New York City, if this Agreement is expressed to
        be
        governed by the laws of the State of New York; and

       

      (ii) waives
        any objection which it may have at any time to the laying of venue of any
        Proceedings brought in any such court, waives any claim that such Proceedings
        have been brought in an inconvenient forum and further waives the right to
        object, with respect to such Proceedings, that such court does not have any
        jurisdiction over such party.

       

      Nothing
        in this Agreement precludes either party from bringing Proceedings in any
        other
        jurisdiction (outside, if this Agreement is expressed to be governed by English
        law, the Contracting States, as defined in Section 1(3) of the Civil
        Jurisdiction and Judgments Act 1982 or any modification, extension or
        re-enactment thereof for the time being in force) nor will the bringing of
        Proceedings in any one or more jurisdictions preclude the bringing of
        Proceedings in any other jurisdiction.

       

      (c) Service
        of Process.
        Each
        party irrevocably appoints the Process Agent (if any) specified opposite
        its
        name in the Schedule to receive, for it and on its behalf, service of process
        in
        any Proceedings. If for any reason
        any party’s Process Agent is unable to act as such, such party will promptly
        notify the other party and within 30 days appoint a substitute process agent
        acceptable to the other party. The parties irrevocably consent to service
        of
        process given in the manner provided for notices in Section 12. Nothing in
        this
        Agreement will affect the right of either party to serve process in any other
        manner permitted by law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d) Waiver
        of Immunities.
        Each
        party irrevocably waives, to the fullest extent permitted by applicable law,
        with respect to itself and its revenues and assets (irrespective of their
        use or
        intended use), all immunity on the grounds of sovereignty or other similar
        grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way
        of
        injunction, order for specific performance or for recovery of property, (iv)
        attachment of its assets (whether before or after judgment) and (v) execution
        or
        enforcement of any judgment to which it or its revenues or assets might
        otherwise be entitled in any Proceedings in the courts of any jurisdiction
        and
        irrevocably agrees, to the extent permitted by applicable law, that it will
        not
        claim any such immunity in any Proceedings.

       

      
        	14.	
                Definitions

              

      

       

      As
        used
        in this Agreement:—

       

      “Additional
        Termination Event”
        has the
        meaning specified in Section 5(b).

       

      “Affected
        Party”
        has the
        meaning specified in Section 5(b).

       

      “Affected
        Transactions”
        means
        (a) with respect to any Termination Event consisting of an Illegality, Tax
        Event
        or Tax Event Upon Merger, all Transactions affected by the occurrence of
        such
        Termination Event and (b) with respect to any other Termination Event, all
        Transactions.

       

      “Affiliate”
        means,
        subject to the Schedule, in relation to any person, any entity controlled,
        directly or indirectly, by the person, any entity that controls, directly
        or
        indirectly, the person or any entity directly or indirectly under common
        control
        with the person. For this purpose, “control” of any entity or person means
        ownership of a majority of the voting power of the entity or
        person.

       

      “Applicable
        Rate”
        means:—

       

      (a) in
        respect of obligations payable or deliverable (or which would have been but
        for
        Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

       

      (b) in
        respect of an obligation to pay an amount under Section 6(e) of either party
        from and after the date (determined in accordance with Section 6(d)(ii))
        on
        which that amount is payable, the Default Rate;

       

      (c) in
        respect of all other obligations payable or deliverable (or which would have
        been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
        Rate;
        and

       

      (d) in
        all
        other cases, the Termination Rate.

       

      “Burdened
        Party”
        has the
        meaning specified in Section 5(b).

       

      “Change
        in Tax Law”
        means
        the enactment, promulgation, execution or ratification of, or any change
        in or
        amendment to, any law (or in the application or official interpretation of
        any
        law) that occurs on or after the date on which the relevant Transaction is
        entered into.

       

      “consent”
        includes
        a consent, approval, action, authorisation, exemption, notice, filing,
        registration or exchange control consent.

       

      “Credit
        Event Upon Merger”
        has the
        meaning specified in Section 5(b).

       

      “Credit
        Support Document”
        means
        any agreement or instrument that is specified as such in this Agreement.
        

       

      “Credit
        Support Provider”
        has the
        meaning specified in the Schedule.

       

      “Default
        Rate”
        means a
        rate per annum equal to the cost (without proof or evidence of any actual
        cost)
        to the relevant payee (as certified by it) if it were to fund or of funding
        the
        relevant amount plus 1% per annum.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Defaulting
        Party”
        has the
        meaning specified in Section 6(a).

       

      “Early
        Termination Date”
        means
        the date determined in accordance with Section 6(a) or 6(b)(iv).

       

      “Event
        of Default”
        has the
        meaning specified in Section 5(a) and, if applicable, in the
        Schedule.

       

      “Illegality”
        has the
        meaning specified in Section 5(b).

       

      “Indemnifiable
        Tax”
        means
        any Tax other than a Tax that would not be imposed in respect of a payment
        under
        this Agreement but for a present or former connection between the jurisdiction
        of the government or taxation authority imposing such Tax and the recipient
        of
        such payment or a person related to such recipient (including, without
        limitation, a connection arising from such recipient or related person being
        or
        having been a citizen or resident of such jurisdiction, or being or having
        been
        organised, present or engaged in a trade or business in such jurisdiction,
        or
        having or having had a permanent establishment or fixed place of business
        in
        such jurisdiction, but excluding a connection arising solely from such recipient
        or related person having executed, delivered, performed its obligations or
        received a payment under, or enforced, this Agreement or a Credit Support
        Document).

       

      “law”
        includes
        any treaty, law, rule or regulation (as modified, in the case of tax matters,
        by
        the practice of any relevant governmental revenue authority) and “lawful” and
“unlawful” will be construed accordingly.

       

      “Local
        Business Day”
        means,
        subject to the Schedule, a day on which commercial banks are open for business
        (including dealings in foreign exchange and foreign currency deposits) (a)
        in
        relation to any obligation under Section 2(a)(i), in the place(s) specified
        in
        the relevant Confirmation or, if not so specified, as otherwise agreed by
        the
        parties in writing or determined pursuant to provisions contained, or
        incorporated by reference, in this Agreement, (b) in relation to any other
        payment, in the place where the relevant account is located and, if different,
        in the principal financial centre, if any, of the currency of such payment,
        (c)
        in relation to any notice or other communication, including notice contemplated
        under Section 5(a)(i), in the city specified in the address for notice provided
        by the recipient and, in the case of a notice contemplated by Section 2(b),
        in
        the place where the relevant new account is to be located and (d) in relation
        to
        Section 5(a)(v)(2), in the relevant locations for performance with respect
        to
        such Specified Transaction.

       

      “Loss”
        means,
        with respect to this Agreement or one or more Terminated Transactions, as
        the
        case may be, and a party, the Termination Currency Equivalent of an amount
        that
        party reasonably determines in good faith to be its total losses and costs
        (or
        gain, in which case expressed as a negative number) in connection with this
        Agreement or that Terminated Transaction or group of Terminated Transactions,
        as
        the case may be, including any loss of bargain, cost of funding or, at the
        election of such party but without duplication, loss or cost incurred as
        a
        result of its terminating, liquidating, obtaining or reestablishing any hedge
        or
        related trading position (or any gain resulting from any of them). Loss includes
        losses and costs (or gains) in respect of any payment or delivery required
        to
        have been made (assuming satisfaction of each applicable condition precedent)
        on
        or before the relevant Early Termination Date and not made, except, so as
        to
        avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies.
        Loss
        does not include a party’s legal fees and out-of-pocket expenses referred to
        under Section 11. A party will determine its Loss as of the relevant Early
        Termination Date, or, if that is not reasonably practicable, as of the earliest
        date thereafter as is reasonably practicable. A party may (but need not)
        determine its Loss by reference to quotations of relevant rates or prices
        from
        one or more leading dealers in the relevant markets.

       

      “Market
        Quotation”
        means,
        with respect to one or more Terminated Transactions and a party making the
        determination, an amount determined on the basis of quotations from Reference
        Market-makers. Each quotation will be for an amount, if any, that would be
        paid
        to such party (expressed as a negative number) or by such party (expressed
        as a
        positive number) in consideration of an agreement between such party (taking
        into account any existing Credit Support Document with respect to the
        obligations of such party) and the quoting Reference Market-maker to enter
        into
        a transaction (the “Replacement Transaction”) that would have the effect of
        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 Terminated Transaction or group of Terminated
        Transactions that would, but for the occurrence of the relevant Early
        Termination Date, have been
        required after that date. For this purpose, Unpaid Amounts in respect of
        the
        Terminated Transaction or group of Terminated 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. The Replacement Transaction would be subject to such documentation
        as
        such party and the Reference Market-maker may, in good faith, agree. The
        party
        making the determination (or its agent) will request each Reference Market-maker
        to provide its quotation to the extent reasonably practicable as of the same
        day
        and time (without regard to different time zones) on or as soon as reasonably
        practicable after the relevant Early Termination Date. The day and time as
        of
        which those quotations are to be obtained will be selected in good faith
        by the
        party obliged to make a determination under Section 6(e), and, if each party
        is
        so obliged, after consultation with the other. If more than three quotations
        are
        provided, the Market Quotation will be the arithmetic mean of the quotations,
        without regard to the quotations having the highest and lowest values. If
        exactly three such quotations are provided, the Market Quotation will be
        the
        quotation remaining after disregarding the highest and lowest quotations.
        For
        this purpose, if more than one quotation has the same highest value or lowest
        value, then one of such quotations shall be disregarded. If fewer than three
        quotations are provided, it will be deemed that the Market Quotation in respect
        of such Terminated Transaction or group of Terminated Transactions cannot
        be
        determined.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Non-default
        Rate”
        means a
        rate per annum equal to the cost (without proof or evidence of any actual
        cost)
        to the Non-defaulting Party (as certified by it) if it were to fund the relevant
        amount.

       

      “Non-defaulting
        Party”
        has the
        meaning specified in Section 6(a).

       

      “Office”
        means a
        branch or office of a party, which may be such party’s head or home
        office.

       

      “Potential
        Event of Default”
        means
        any event which, with the giving of notice or the lapse of time or both,
        would
        constitute an Event of Default.

       

      “Reference
        Market-makers”
        means
        four leading dealers in the relevant market selected by the party determining
        a
        Market Quotation in good faith (a) from among dealers of the highest credit
        standing which satisfy all the criteria that such party applies generally
        at the
        time in deciding whether to offer or to make an extension of credit and (b)
        to
        the extent practicable, from among such dealers having an office in the same
        city.

       

      “Relevant
        Jurisdiction”
        means,
        with respect to a party, the jurisdictions (a) in which the party is
        incorporated, organised, managed and controlled or considered to have its
        seat,
        (b) where an Office through which the party is acting for purposes of this
        Agreement is located, (c) in which the party executes this Agreement and
        (d) in
        relation to any payment, from or through which such payment is
        made.

       

      “Scheduled
        Payment Date”
        means a
        date on which a payment or delivery is to be made under Section 2(a)(i) with
        respect to a Transaction.

       

      “Set-off”
        means
        set-off, offset, combination of accounts, right of retention or withholding
        or
        similar right or requirement to which the payer of an amount under Section
        6 is
        entitled or subject (whether arising under this Agreement, another contract,
        applicable law or otherwise) that is exercised by, or imposed on, such
        payer.

       

      “Settlement
        Amount”
        means,
        with respect to a party and any Early Termination Date, the sum
        of:—

       

      (a) the
        Termination Currency Equivalent of the Market Quotations (whether positive
        or
        negative) for each Terminated Transaction or group of Terminated Transactions
        for which a Market Quotation is determined; and

       

      (b) such
        party’s Loss (whether positive or negative and without reference to any Unpaid
        Amounts) for each Terminated Transaction or group of Terminated Transactions
        for
        which a Market Quotation cannot be determined or would not (in the reasonable
        belief of the party making the determination) produce a commercially reasonable
        result.

       

      “Specified
        Entity”
        has the
        meanings specified in the Schedule.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Specified
        Indebtedness”
        means,
        subject to the Schedule, any obligation (whether present or future, contingent
        or otherwise, as principal or surety or otherwise) in respect of borrowed
        money.

       

      “Specified
        Transaction”
        means,
        subject to the Schedule, (a) any transaction (including an agreement with
        respect thereto) now existing or hereafter entered into between one party
        to
        this Agreement (or any Credit Support Provider of such party or any applicable
        Specified Entity of such party) and the other party to this Agreement (or
        any
        Credit Support Provider of such other party or any applicable Specified Entity
        of such other party) which is a rate swap transaction, basis swap, forward
        rate
        transaction, commodity swap, commodity option, equity or equity index swap,
        equity or equity index option, bond option, interest rate option, foreign
        exchange transaction, cap transaction, floor transaction, collar transaction,
        currency swap transaction, cross-currency rate swap transaction, currency
        option
        or any other similar transaction (including any option with respect to any
        of
        these transactions), (b) any combination of these transactions and (c) any
        other
        transaction identified as a Specified Transaction in this Agreement or the
        relevant confirmation.

       

      “Stamp
        Tax”
        means
        any stamp, registration, documentation or similar tax.

       

      “Tax”
        means
        any present or future tax, levy, impost, duty, charge, assessment or fee
        of any
        nature (including interest, penalties and additions thereto) that is imposed
        by
        any government or other taxing authority in respect of any payment under
        this
        Agreement other than a stamp, registration, documentation or similar
        tax.

       

      “Tax
        Event”
        has the
        meaning specified in Section 5(b).

       

      “Tax
        Event Upon Merger”
        has the
        meaning specified in Section 5(b).

       

      “Terminated
        Transactions”
        means
        with respect to any Early Termination Date (a) if resulting from a Termination
        Event, all Affected Transactions and (b) if resulting from an Event of Default,
        all Transactions (in either case) in effect immediately before the effectiveness
        of the notice designating that Early Termination Date (or, if “Automatic Early
        Termination” applies, immediately before that Early Termination
        Date).

       

      “Termination
        Currency”
        has the
        meaning specified in the Schedule.

       

      “Termination
        Currency Equivalent”
        means,
        in respect of any amount denominated in the Termination Currency, such
        Termination Currency amount and, in respect of any amount denominated in
        a
        currency other than the Termination Currency (the “Other Currency”), the amount
        in the Termination Currency determined by the party making the relevant
        determination as being required to purchase such amount of such Other Currency
        as at the relevant Early Termination Date, or, if the relevant Market Quotation
        or Loss (as the case may be), is determined as of a later date, that later
        date,
        with the Termination Currency at the rate equal to the spot exchange rate
        of the
        foreign exchange agent (selected as provided below) for the purchase of such
        Other Currency with the Termination Currency at or about 11:00 a.m. (in the
        city
        in which such foreign exchange agent is located) on such date as would be
        customary for the determination of such a rate for the purchase of such Other
        Currency for value on the relevant Early Termination Date or that later date.
        The foreign exchange agent will, if only one party is obliged to make a
        determination under Section 6(e), be selected in good faith by that party
        and
        otherwise will be agreed by the parties.

       

      “Termination
        Event”
        means an
        Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be
        applicable, a Credit Event Upon Merger or an Additional Termination
        Event.

       

      “Termination
        Rate”
        means a
        rate per annum equal to the arithmetic mean of the cost (without proof or
        evidence of any actual cost) to each party (as certified by such party) if
        it
        were to fund or of funding such amounts.

       

      “Unpaid
        Amounts”
        owing to
        any party means, with respect to an Early Termination Date, the aggregate
        of (a)
        in respect of all Terminated Transactions, the amounts that became payable
        (or
        that would have become payable but for Section 2(a)(iii)) to such party under
        Section 2(a)(i) on or prior to such Early Termination Date and which remain
        unpaid as at such Early Termination Date and (b) in respect of each Terminated
        Transaction, for each obligation under Section 2(a)(i) which was (or would
        have
        been but for Section 2(a)(iii)) required to be settled by delivery to such
        party
        on or prior to such Early Termination Date and which has not been so settled
        as
        at such Early Termination Date, an amount equal to the fair market value
        of
        that which was (or would have been) required to be delivered as of the
        originally scheduled date for delivery, in each case together with (to the
        extent permitted under applicable law) interest, in the currency, of such
        amounts, from (and including) the date such amounts or obligations were or
        would
        have been required to have been paid or performed to (but excluding) such
        Early
        Termination Date, at the Applicable Rate. Such amounts of interest will be
        calculated on the basis of daily compounding and the actual number of days
        elapsed. The fair market value of any obligation referred to in clause (b)
        above
        shall be reasonably determined by the party obliged to make the determination
        under Section 6(e) or, if each party is so obliged, it shall be the average
        of
        the Termination Currency Equivalents of the fair market values reasonably
        determined by both parties.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF the parties have executed this document on the respective
        dates
        specified below 

       

      
        	
                 JPMorgan
                  Chase Bank, N.A.

              	 	
                 LaSalle
                  Bank National Association, not in its individual capacity but solely
                  as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to C-BASS 2007-CB5 Trust, C-BASS Mortgage Loan
                  Asset-Backed Certificates, Series 2007-CB5

              
	
                  ("Party
                  A")

              	 	
                  ("Party
                  B")

              
	 	 	 	 	 
	 	 	 	 	 
	 By:	
                 /s/
                  Robert Mock 

              	 	
                 By:
                  

              	
                /s/
                  Susan L. Feld

              
	
                 

                 

              	
                

                Name:
                  Robert Mock

              	 	
                 

              	
                

                
                  Name:
                    Susan
                    L. Feld

                

              
	
              	
                Title: Vice
                  President

              	 	 	
                Title:
                  Vice President

              

      

       

      
        	 	 	 	 	 
	 By:	
              	 	
              	
              
	
                 

              	
                

                Name:

              	 	
                 

              	
              
	
              	Title:Unassociated Document

    EXECUTION
      COPY

    SCHEDULE

    to
      the

    Master
      Agreement

     

    dated
      as
      of May 31, 2007

     

    between

     

    
      	
              JPMorgan
                Chase Bank, N.A.

              (“Morgan”)

            	
              and

            	
              LaSalle
                Bank National Association, not in its individual capacity but solely
                as
                Supplemental Interest Trust Trustee on behalf of the Supplemental
                Interest
                Trust with respect to C-BASS 2007-CB5 Trust, C-BASS Mortgage Loan
                Asset-Backed Certificates, Series 2007-CB5

              (“Counterparty”)

            

    

     

    Part
      1

     

    Termination Provisions

     

    In
      this
      Agreement:

     

    
      	
              (1)

            	
              “Specified
                Entity” shall not apply.

            

    

     

    
      	
              (2)

            	
              The
                “Breach of Agreement” provisions of Section 5(a)(ii) will apply to Morgan
                and will not apply to the
                Counterparty.

            

    

     

    
      	
              (3)

            	
              The
                “Credit Support Default” provisions of Section 5(a)(iii) will apply to
                Morgan and will not apply to the Counterparty, except that Section
                5(a)(iii)(1) will apply to Counterparty in respect of Counterparty’s
                obligations under Paragraph 3(b) of the Approved Credit Support Document.
                

            

    

     

    
      	
              (4)

            	
              The
                “Misrepresentation” provisions of Section 5(a)(iv) will apply to Morgan
                and will not apply to the
                Counterparty.

            

    

     

    
      	
              (5)

            	
              The
                “Default Under Specified Transaction” provisions of Section 5(a)(v) will
                apply to Morgan and will not apply to the
                Counterparty.

            

    

     

    
      	
              (6)

            	
              The
                “Cross Default” provisions of Section 5(a)(vi) will not apply to the
                Counterparty. The “Cross Default” provisions of Section 5(a)(vi) will
                apply to Morgan and for such
                purpose:

            

    

     

    
      	 	
              (a)

            	
              “Specified
                Indebtedness” will have the meaning specified in Section 14, except that
                such term shall not include obligations in respect of deposits received
                in
                the ordinary course of such party’s banking
                business.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              “Threshold
                Amount” means, with respect to Morgan, an amount equal to three percent of
                the shareholders’ equity of the applicable Relevant Entity (as defined
                below in Part 6).

            

    

     

    
      	
              (7)

            	
              The
                “Bankruptcy” provisions of Section 5(a)(vii) shall apply to Morgan and the
                Counterparty provided that:

            

    

     

    
      	 	
              (a)

            	
              Section
                5(a)(vii)(2), (7) and (9) will not apply to the
                Counterparty;

            

    

     

    
      	 	
              (b)

            	
              Section
                5(a)(vii)(4) will not apply to the Counterparty to the extent that
                it
                refers to proceedings or petitions instituted or presented by Morgan
                or
                any of Morgan’s Affiliates;

            

    

     

    
      	 	
              (c)

            	
              Section
                5(a)(vii)(6) will not apply to the Counterparty to the extent that
                it
                refers to (i) any appointment that is contemplated or effected by
                any
                document to which the Counterparty is, as of the date of this Agreement,
                a
                party in connection with the transactions contemplated by the Pooling
                Agreement or (ii) any such appointment to which the Counterparty
                has not
                yet become subject to; and

            

    

     

    
      	 	
              (d)

            	
              Section
                5(a)(vii)(8) will apply to the Counterparty but only to the extent
                that it
                applies to Sections 5(a)(vii)(2), (4), (6) and (7) as they apply
                with
                respect to the Counterparty).

            

    

     

    
      	
              (8)

            	
              The
                “Merger Without Assumption” provisions of Section 5(a)(viii) will apply to
                Morgan and will not apply to the
                Counterparty.

            

    

     

    
      	
              (9)

            	
              The
                “Tax Event” provisions of Section 5(b)(ii) will apply to Morgan and to the
                Counterparty, provided that the words “(x) any action taking 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.

            

    

     

    
      	
              (10)

            	
              The
                “Tax Event Upon Merger” provisions of Section 5(b)(iii) will apply,
                provided that Morgan 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.

            

    

     

    
      	
              (11)

            	
              The
                “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply
                to Morgan and will not apply to the
                Counterparty.

            

    

     

    
      	
              (12)

            	
              The
                “Automatic Early Termination” provisions of Section 6(a) will not apply to
                Morgan and will not apply to the
                Counterparty.

            

    

     

    
      	
              (13)

            	
              The
                “Transfer to Avoid Termination Event” provisions of 6(b)(ii) will apply to
                Morgan and the Counterparty, provided that, with respect to Morgan,
                (a)
                the words “or if a Tax Event Upon Merger occurs and the Burdened Party is
                the Affected Party” shall be deleted and (b) the words “(any such transfer
                to an Affiliate shall be effected by a Qualifying Novation)” shall be
                added after the word “exist” in the first paragraph of Section
                6(b)(ii).

            

    

     

    
      	
              (14)

            	
              “Termination
                Currency” means United States
                Dollars.

            

    

     

    
      	
              (15)

            	
              For
                purposes of computing amounts payable on early
                termination:

            

    

     

    
      	 	
              (a)

            	
              Market
                Quotation will apply to this Agreement;
                and

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                Second Method will apply to this
                Agreement.

            

    

     

    
      	
              (16)

            	
              The
                occurrence of any of the following events shall constitute an “Additional
                Termination Event” for purposes of Section
                5(b)(v):

            

    

     

    (a)
      Optional Termination of Securitization. Solely with respect to the Transaction
      confirmed by the Confirmation identified by the reference number
      6900037652779/0095008862, an Additional Termination Event shall occur upon
      the
      notice to Certificateholders of an Optional Termination becoming unrescindable
      in accordance with Article X of the Pooling Agreement (such notice, the
“Optional Termination Notice”). With respect to such Additional Termination
      Event: (A) Counterparty shall be the sole Affected Party and the Transaction
      referenced in the preceding sentence shall be the sole Affected Transaction;
      (B)
      notwithstanding anything to the contrary in Section 6(b)(iv) or Section 6(c)(i),
      the final Distribution Date specified in the Optional Termination Notice is
      hereby designated as the Early Termination Date for this Additional Termination
      Event in respect of all Affected Transactions; (C) Section 2(a)(iii)(2) shall
      not be applicable to any Affected Transaction in connection with the Early
      Termination Date resulting from this Additional Termination Event;
      notwithstanding anything to the contrary in Section 6(c)(ii), payments and
      deliveries under Section 2(a)(i) or Section 2(e) in respect of the Terminated
      Transactions resulting from this Additional Termination Event will be required
      to be made through and including the Early Termination Date designated as a
      result of this Additional Termination Event; provided, for the avoidance of
      doubt, that any such payments or deliveries that are made on or prior to such
      Early Termination Date will not be treated as Unpaid Amounts in determining
      the
      amount payable in respect of such Early Termination Date; (D) notwithstanding
      anything to the contrary in Section 6(d)(i), (I) if, no later than 4:00 pm
      New
      York City time on the day that is four Business Days prior to the final
      Distribution Date specified in the Optional Termination Notice, the Trustee
      requests the amount of the Estimated Swap Termination Payment, Morgan shall
      provide to the Trustee in writing (which may be done in electronic format)
      the
      amount of the Maximum Swap Termination Payment no later than 2:00 pm New York
      City time on the following Business Day and (II) if the Trustee provides written
      notice (which may be done in electronic format) to Morgan no later than two
      Business Days prior to the final Distribution Date specified in the Optional
      Termination Notice that all requirements of the Optional Termination have been
      met, then Morgan shall, no later than one Business Day prior to the final
      Distribution Date specified in the Optional Termination Notice, make the
      calculations contemplated by Section 6(e) of the ISDA Master Agreement (as
      amended herein) and provide to the Trustee in writing (which may be done in
      electronic format) the amount payable by either Counterparty or Morgan in
      respect of the related Early Termination Date in connection with this Additional
      Termination Event; provided, however, that the amount payable by Counterparty,
      if any, in respect of the related Early Termination Date shall be the lesser
      of
      (x) the amount calculated to be due from Counterparty pursuant to Section 6(e)
      and (y) the Estimated Swap Termination Payment; and (E) notwithstanding anything
      to the contrary in this Agreement, any amount due from Counterparty to Morgan
      in
      respect of this Additional Termination Event will be payable on the final
      Distribution Date specified in the Optional Termination Notice and any amount
      due from Morgan to Counterparty in respect of this Additional Termination Event
      will be payable one Business Day prior to the final Distribution Date specified
      in the Optional Termination Notice.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    Solely
      with respect to the Transaction confirmed by the Confirmation identified by
      the
      reference number 2000005092465, an Additional Termination Event shall occur
      upon
      the notice to Certificateholders of an Optional Termination becoming
      unrescindable in accordance with Article X of the Pooling Agreement. The
      Counterparty shall be the sole Affected Party with respect to such Additional
      Termination Event; provided, however, that notwithstanding anything to the
      contrary in Section 6(b)(iv), only the Counterparty may designate an Early
      Termination Date in respect of this Additional Termination Event.

    

    The
      Trustee shall be an express third party beneficiary of this Agreement as if
      a
      party hereto to the extent of the Trustee’s rights specified
      herein.

    

    “Maximum
      Swap Termination Payment” means, with respect to an Early Termination Date, an
      amount determined by Morgan in good faith and in a commercially reasonable
      manner as the maximum payment that could be owed by Counterparty to Morgan
      in
      respect of such Early Termination Date pursuant to Section 6(e) of the ISDA
      Master Agreement.

    

    
      	 	 	
              (b)
                Solely with respect to the Transaction confirmed by the Confirmation
                identified by the reference number 6900037652779/0095008862 if any
                provision of the Pooling Agreement is amended unless Morgan has consented
                in writing to such amendment (such consent not to be unreasonably
                withheld, delayed or conditioned) where such consent is required
                under the
                Pooling Agreement. If this Additional Termination Event occurs, the
                Counterparty shall be the sole Affected Party and all Transactions
                then
                outstanding between the parties shall be Affected
                Transactions.

            

    

    
      	 	 	 

    

    (c)
      Solely
      with respect to the Transaction confirmed by the Confirmation identified by
      the
      reference number 6900037652779/0095008862 if
      (i) any
      supplemental trust instrument is given effect and (ii) Morgan has not consented
      in writing to such supplemental trust instrument (such
      consent not to be unreasonably withheld, delayed or conditioned) prior
      to
      the date on which such supplemental trust instrument takes effect where
      such consent is required under the Pooling Agreement.
      If this
      Additional Termination Event occurs, then the Counterparty shall be the sole
      Affected Party and all Transactions then outstanding between the parties shall
      be Affected Transactions; or

    

    (d)
      the
      occurrence of an Additional Termination Event as forth in Part 6 hereof. If
      this
      Additional Termination Event occurs, Morgan shall be the sole Affected Party
      and
      all Transactions then outstanding between the parties shall be Affected
      Transactions.

    

    
      	
              (17)

            	
              Morgan
                and Counterparty hereby agree that the terms of the Item 1115 Agreement,
                dated as of May 31, 2007 (the “Item 1115 Agreement”), among Credit-Based
                Asset Servicing and Securitization LLC (“Sponsor”), Asset Backed Funding
                Corporation (“Depositor”) and JPMorgan Chase Bank, N.A. (the “Derivative
                Provider”) shall be incorporated by reference into this Agreement and
                Counterparty shall be an express third party beneficiary of the Item
                1115
                Agreement. A copy of the Item 1115 Agreement is annexed hereto at
                Appendix
                D.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Part
      2

     

    Tax Representations

     

    
      	
              (1)

            	
              Payer
                Tax Representation:

            

    

     

    For
      the
      purpose of Section 3(e) of this Agreement, Morgan makes the following
      representation:

    

    
      	 	
              It
                is not required by any applicable law, as modified by the practice
                of any
                relevant governmental revenue authority, of any Relevant Jurisdiction
                to
                make any deduction or withholding for or on account of any Tax from
                any
                payment (other than interest under Section 2(e), 6(d)(ii) or 6(e)
                of this
                Agreement) to be made by it to the other party under this Agreement.
                In
                making this representation, it may rely
                on:

            

    

    

    
      	 	
              (i)

            	
              the
                accuracy of any representations made by the other party pursuant
                to
                Section 3(f) of this Agreement;

            

    

    

    
      	 	
              (ii)

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

            

    

    

    
      	 	
              (iii)

            	
              the
                satisfaction of the agreement of the other party contained in Section
                4(d)
                of this Agreement, 

            

    

    

    provided
      that it shall not be a breach of this representation where reliance is placed
      on
      clause (ii) and the other party does not deliver a form or document under
      Section 4(a)(iii) of this Agreement by reason of material prejudice to its
      legal
      or commercial position.

     

    
      	
              (2)

            	
              Payee
                Tax Representation:

            

    

     

    For
      the
      purpose of Section 3(f), Morgan represents that it is a United States
      Person.

    

    (3) Gross
      Up:

     

    Section
      2(d)(i)(4) shall not apply to Counterparty as X, and Section 2(d)(ii) shall
      not
      apply to Counterparty as Y, in each case such that Counterparty shall not be
      required to pay any additional amounts referred to therein.

     

    Part
      3

     

    Agreement
      to Deliver Documents

     

    For
      the
      purpose of Sections 4(a)(i) and (ii), each party agrees to deliver the following
      documents, as applicable:

     

    
      	
              (1)

            	
              For
                the purpose of Sections 4(a)(i) and (ii) of this Agreement, Counterparty
                agrees to deliver an Internal Revenue Service Form W-9 as applicable
                or
                any successor form, accurately completed and in a manner reasonably
                satisfactory to Morgan, and will deliver any other tax forms relating
                to
                the beneficial owner of payments to Counterparty under this Agreement
                from
                time to time in a manner reasonably satisfactory to Morgan on or
                before
                the first payment date, or upon any form previously provided becoming
                obsolete or upon reasonable request by
                Morgan.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (2)

            	
              For
                the purpose of Sections 4(a)(i) and (ii) of this Agreement, Morgan
                agrees
                to deliver a correct, complete and duly executed U.S. Internal Revenue
                Service Form W-9 (or successor thereto), upon the execution and delivery
                of this Agreement, or upon any form previously provided becoming
                obsolete.

            

    

     

    
      	
              (3)

            	
              Morgan
                will, on demand, deliver a certificate specifying the name(s), title(s)
                and specimen signature(s) of the person(s) executing this Agreement
                and
                each Confirmation on its behalf.

            

    

     

    
      	
              (4)

            	
              The
                Counterparty will, on demand, deliver a certificate (or, if available,
                the
                current authorized signature book of the Counterparty) specifying
                the
                names, title and specimen signatures of the persons authorized to
                execute
                this Agreement and each Confirmation on its
                behalf.

            

    

     

    
      	
              (5)

            	
              The
                Counterparty will, promptly upon filing with the Securities and Exchange
                Commission, deliver a conformed copy of the Pooling
                Agreement.

            

    

     

    
      	
              (6)

            	
              Each
                party will, upon execution of this Agreement, deliver a legal opinion
                of
                counsel in form and substance satisfactory to the other party regarding
                this Agreement and any other matters as such other party may reasonably
                request.

            

    

     

    
      	
              (7)

            	
              The
                Counterparty shall make available to Morgan via its website, currently
                located at www.etrustee.net with copies of all accountings and reports
                required to be supplied to a party that is an investor. Assistance
                with
                using the website can be obtained by calling the transaction manager
                at
                (312) 904-4373.

            

    

     

    Each
      of
      the foregoing documents (other than the legal opinions described in (6) above)
      is covered by the representation contained in Section 3(d) of this
      Agreement.

     

    Part
      4

     

    Miscellaneous

     

    
      	
              (1)

            	
              Governing Law.
                This Agreement will be governed by and construed in accordance with
                the
                laws of the State of New York without reference to choice of law
                doctrine
                other than New York General Obligations Law Sections 5-1401 and
                5-1402.

            

    

     

    
      	
              (2)

            	
              Notices.

            

    

     

    
      	 	
              (a)

            	
              In
                connection with Section 12(a), all notices to Morgan shall, with
                respect
                to any particular Transaction, be sent to the address, telex number
                or
                facsimile number specified in the relevant Confirmation and any notice
                for
                purposes of Sections 5 or 6 of the Agreement shall be sent to the
                address
                or telex number specified below:

            

    

     

    JPMorgan
      Chase Bank, N.A.

    Attention:
      Legal Department-Derivatives Practice Group

    270
      Park
      Avenue, 41st Floor

    New
      York,
      New York 10017-2070

    Telex
      No.: 232337; Answerback: CBC UR

    Facsimile
      No.: (212) 270-3620

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              In
                connection with Section 12(a), all notices to the Counterparty shall,
                with
                respect to any particular Transaction, be sent to the address, telex
                number or facsimile number specified in the relevant Confirmation
                and any
                notice for purposes of Sections 5 or 6 of the Agreement shall be
                sent to
                the address or telex number specified
                below:

            

    

     

    LaSalle
      Bank National Association

    135
      South
      LaSalle Street, Suite 1511

    Chicago,
      IL 60603

    Attention:
      Kimberly Sturm -- CBASS 2007-CB5

    Phone:
      312-904-4373

    Fax:
      312-904-1368

     

    
      	
              (3)

            	
              Netting of Payments.
                Section 2(c)(ii) of this Agreement will apply, with the effect that
                payment netting will not take place with respect to amounts due and
                owing
                in respect of more than one
                Transaction.

            

    

     

    
      	
              (4)

            	
              Offices;
                Multibranch Party.
                For purposes of Section 10:

            

    

     

    
      	 	
              (a)

            	
              Section
                10(a) will apply; and

            

    

     

    
      	 	
              (b)

            	
              For
                the purpose of Section 10(c):

            

    

     

    
      	 	
              (i)

            	
              Morgan
                is a Multibranch Party and may act through its London and New York
                Offices.

            

    

     

    
      	 	
              (ii)

            	
              The
                Counterparty is not a Multibranch
                Party.

            

    

     

    
      	
              (5)

            	
              Credit
                Support Documents.

            

    

     

    With
      respect to Morgan, if applicable, any Eligible Guarantee delivered by Morgan
      shall constitute a Credit Support Document.

     

    With
      respect to Morgan and the Counterparty, the Approved Credit Support Document
      (as
      defined herein) entered into between Morgan and the Counterparty shall
      constitute a Credit Support Document. An Approved Credit Support Document shall
      be executed and delivered contemporaneously with this Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              (6)

            	
              Credit
                Support Provider.

            

    

     

    With
      respect to Morgan, the party guaranteeing Morgan’s obligations pursuant to an
      Eligible Guarantee, if any, shall be a Credit Support Provider.

     

    
      	
              (7)

            	
              Process
                Agents.
                The Counterparty appoints as its Process Agent for the purpose of
                Section
                13(c): Not Applicable.

            

    

     

    Part
      5

     

    Other Provisions

     

    
      	
              (1)

            	
              ISDA
                Definitions.
                Reference is hereby made to the 2000 ISDA Definitions (the “ISDA
                Definitions”)
                each as published by the International Swaps and Derivatives Association,
                Inc., which are hereby incorporated by reference herein. Any terms
                used
                and not otherwise defined herein, which are contained in the ISDA
                Definitions, shall have the meaning set forth therein, except that
                any
                references in the ISDA Definitions to a “Swap Transaction” shall be deemed
                references to a “Transaction” for purposes of this Agreement, and
                references to a “Transaction” in this Agreement shall be deemed references
                to a “Swap Transaction” for purposes of the ISDA Definitions. Each term
                capitalized but not defined in this Agreement shall have the meaning
                assigned thereto in the Pooling
                Agreement.

            

    

     

    
      	
              (2)

            	
              Scope
                of Agreement.
                Notwithstanding anything contained in the Agreement to the contrary,
                if
                the parties enter into any Specified Transaction, such Specified
                Transaction shall be subject to, governed by and construed in accordance
                with the terms of this Agreement unless the Confirmation relating
                thereto
                shall specifically state to the contrary. Each such Specified Transaction
                shall be a Transaction for the purposes of this
                Agreement.

            

    

     

    
      	
              (3)

            	
              Inconsistency.
                In the event of any inconsistency between any of the following documents,
                the relevant document first listed below shall govern: (i) a Confirmation;
                (ii) the Schedule; (iii) the ISDA Definitions; and (iv) the printed
                form
                of ISDA Master Agreement.

            

    

     

    
      	
              (4)

            	
              Calculation
                Agent.
                The Calculation Agent will be Morgan; provided, however, that if
                an Event
                of Default shall have occurred with respect to which Morgan is the
                Defaulting Party, Counterparty shall have the right to designate
                as
                Calculation Agent an independent party, reasonably acceptable to
                Morgan,
                the cost of which shall be borne by
                Morgan.

            

    

     

    
      	
              (5)

            	
              Waiver
                of Jury Trial.
                Each party waives, to the fullest extent permitted by applicable
                law, any
                right it may have to a trial by jury in respect of any suit, action
                or
                proceeding relating to this Agreement or any Credit Support Document.
                Each
                party (i) certifies that no representative, agent or attorney of
                the other
                party or any Credit Support Provider has represented, expressly or
                otherwise, that such other party would not, in the event of such
                a suit,
                action or proceeding, seek to enforce the foregoing waiver and (ii)
                acknowledges that it and the other party have been induced to enter
                into
                this Agreement and provide for any Credit Support Document, as applicable,
                by, among other things, the mutual waivers and certifications in
                this
                Section.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              (6)

            	
              No
                Petition; Limited Recourse.
                Until
                a period of one year and one day (or if longer, the applicable preference
                period) after all rated liabilities of the Trust have been indefeasibly
                paid in full, no Relevant Entity shall institute against, or join
                any
                other person in instituting against the Counterparty any bankruptcy,
                reorganization, arrangement, insolvency, moratorium or liquidation
                proceedings or other proceedings under U.S. federal or state or other
                bankruptcy or similar laws. Notwithstanding the foregoing, nothing
                herein
                shall prevent Morgan from participating in any such proceeding once
                commenced. This provision shall survive termination of this
                Agreement.

            

    

     

    Morgan
      hereby acknowledges and agrees that the Counterparty’s obligations hereunder
      will be solely the limited recourse obligations of the Counterparty payable
      solely from the Supplemental Interest Trust and the proceeds thereof, in
      accordance with the priority of payments set out in the Pooling Agreement,
      and
      that Morgan will not have any recourse to any of the agents, directors,
      officers, employees, shareholders or affiliates of the Counterparty with respect
      to any claims, losses, damages, liabilities, indemnities or other obligations
      in
      connection with any transactions contemplated hereby. Notwithstanding any other
      provisions hereof, recourse in respect of any obligations of the Counterparty
      to
      Morgan hereunder or thereunder will be limited to the Supplemental Interest
      Trust and on the exhaustion thereof all claims against the Counterparty arising
      from this Confirmation or any other transactions contemplated hereby or thereby
      shall be extinguished.

     

    
      	
              (7)

            	
              Additional
                Representations. 

            

    

     

    (a)
      Section 3 is hereby amended by adding at the end thereof the following
      paragraphs:

     

    “(g)
      It
      is an “eligible contract participant” under, and as defined in, Section 1a(12)
      of the Commodity Exchange Act, as amended.

     

    (h)
      Each
      party will be deemed to represent to the other party on the date on which it
      enters into a Transaction that (absent a written agreement between the parties
      that expressly imposes affirmative obligations to the contrary for that
      Transaction):

     

    (i) Non-Reliance.
      It is
      acting for its own account, and it has made its own independent decisions to
      enter into that Transaction and as to whether that Transaction is appropriate
      or
      proper for it based upon its own judgment and upon advice from such advisers
      as
      it has deemed necessary. It is not relying on any communication (written or
      oral) of the other party as investment advice or as a recommendation to enter
      into that Transaction; it being understood that information and explanations
      related to the terms and conditions of a Transaction shall not be considered
      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.

     

    (ii) 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.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (iii) Status
      of Parties.
      The
      other party is not acting as a fiduciary for or an adviser to it in respect
      of
      that Transaction.”

     

      (b)
      The
      additional representation shall be given by Morgan only:

     

    “(i)  Pari
      Passu. Its
      obligations under this Agreement rank equal and ratably with all of its other
      unsecured, unsubordinated obligations except those obligations preferred by
      operation of law.” 

     

    
      	
              (8)

            	
              Amendment
                to Section 9(b) of the Agreement.
                Section 9(b) of the Agreement is amended by adding the following
                sentence
                immediately following the end of the first sentence
                thereof:

            

    

     

    “In
      addition, no amendment, modification or waiver in respect of this Agreement
      will
      be effective unless Moody’s has been provided prior written notice of the same
      and the Rating Agency Condition is satisfied with respect to S&P and
      DBRS.”

     

    
      	
              (9)

            	
              Set-off.
                Notwithstanding any provision of this Agreement or any other existing
                or
                future agreement, but subject to Section 2(c), Section 6 and Part
                6(3)(viii) of this Schedule, each party irrevocably waives any and
                all
                rights it may have to set off, net, recoup or otherwise withhold
                or
                suspend or condition payment or performance of any obligation between
                it
                and the other party hereunder against any obligation between it and
                the
                other party under any other agreements. The provisions for Set-off
                set
                forth in Section 6(e) of the Agreement shall not apply to this
                Agreement.

            

    

     

    
      	
              (10)

            	
              Amendment
                to Section 6(e) of the Agreement.
                Section 6(e) of the Agreement is amended by deleting the last sentence
                of
                the introductory paragraph thereof.

            

    

     

    
      	
              (12)

            	
              Modification
                to Definition of Indemnifiable Tax.
                Notwithstanding the definition of "Indemnifiable Tax" in Section
                14, in
                relation to payments by Morgan, any Tax shall be an Indemnifiable
                Tax, and
                in relation to payments by the Counterparty, no Tax shall be an
                Indemnifiable Tax. For the avoidance of doubt, the foregoing sentence
                shall not by itself modify either party's right to terminate a Transaction
                based on the occurrence of a Tax Event or a Tax Event Upon
                Merger.

            

    

     

    
      	
              (13)

            	
              Waiver
                of Tax Confidentiality.
                Notwithstanding anything herein to the contrary, any party subject
                to
                confidentiality obligations hereunder or under any other related
                document
                (and any employee, representative or other agent of such party) may
                disclose to any and all persons, without limitation of any kind,
                the U.S.
                federal income tax treatment and the U.S. federal income tax structure
                of
                the transactions contemplated hereby and all materials of any kind
                (including opinions or other tax analyses) that are provided to it
                relating to such tax treatment and tax structure. However, no such
                party
                shall disclose any information relating to such tax treatment or
                tax
                structure to the extent nondisclosure is reasonably necessary in
                order to
                comply with applicable securities
                laws.

            

    

    

    
      	
              (14)

            	
              Rating
                Agency Notifications. Notwithstanding
                any other provision of this Agreement, this Agreement shall not be
                amended, no Early Termination Date shall be effectively designated
                by the
                Counterparty, and no transfer of any rights or obligations under
                this
                Agreement shall be made (other than a transfer of all of Morgan’s rights
                and obligations with respect to this Agreement in accordance with
                Part
                6(2)(a) below) unless Moody’s, S&P and DBRS have each been given prior
                written notice of such amendment, designation or transfer.
                

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              (15)

            	
              Trustee
                Capacity.
                It
                is expressly understood and agreed by the parties hereto that (i)
                this
                Agreement is executed and delivered by LaSalle Bank National Association
                not individually or personally but solely as Supplemental Interest
                Trust
                Trustee of the supplemental interest trust created under the Pooling
                Agreement (the “Supplemental Interest Trust”) in the exercise of the
                powers and authority conferred and vested in it under the terms of
                the
                Pooling Agreement, (ii) each of the representations, undertakings
                and
                agreements herein made on the part of the Counterparty is made and
                intended not as personal representations, undertakings and agreements
                by
                LaSalle Bank National Association but is made and intended for the
                purpose
                of binding only the Supplemental Interest Trust, (iii) nothing herein
                contained shall be construed as creating any liability on the part
                of
                LaSalle Bank National Association, individually or personally, to
                perform
                any covenant, either expressed or implied, contained herein, all
                such
                liability, if any, being expressly waived by the parties hereto and
                by any
                Person claiming by, through or under the parties hereto, and (iv)
                under no
                circumstances shall LaSalle Bank National Association be personally
                liable
                for the payment of any indebtedness or expenses of the Counterparty
                or be
                liable for the breach or failure of any obligation, representation,
                warranty or covenant made or undertaken by the Counterparty under
                this
                Agreement or any other related documents, as to all of which recourse
                shall be had solely to the assets of the Supplemental Interest Trust
                in
                accordance with the terms of the Pooling
                Agreement.

            

    

    

    
      	
              (16)

            	
              Limitation
                on Events of Default.
                Notwithstanding the provisions of Sections 5 and 6, if at any time
                and so
                long as Counterparty has satisfied in full all its payment obligations
                under Section 2(a)(i) in respect of the Transaction with the reference
                number 2000005092465 (the “Cap Transaction”) and has at the time no future
                payment obligations, whether absolute or contingent, under such Section
                in
                respect of such Cap Transaction, then unless Morgan is required pursuant
                to appropriate proceedings to return to Counterparty or otherwise
                returns
                to Counterparty upon demand of Counterparty any portion of any such
                payment in respect of such Cap Transaction, (a) the occurrence of
                an event
                described in Section 5(a) with respect to Counterparty shall not
                constitute an Event of Default or Potential Event of Default with
                respect
                to Counterparty as Defaulting Party in respect of such Cap Transaction
                and
                (b) Morgan shall be entitled to designate an Early Termination Date
                pursuant to Section 6 in respect of such Cap Transaction only as
                a result
                of the occurrence of a Termination Event set forth in either Section
                5(b)(i) or 5(b)(ii) with respect to Morgan as the Affected Party,
                or
                Section 5(b)(iii) with respect to Morgan as the Burdened Party. For
                purposes of the Transaction identified by the reference number
                2000005092465, Morgan acknowledges and agrees that Counterparty’s only
                payment obligation under Section 2(a)(i) in respect of the Cap Transaction
                is to pay the Premium Amount on the Fixed Rate Payer Payment
                Date.

            

    

    

    
      	
              (17)

            	
              Timing
                of Payments by Counterparty upon Early
                Termination.
                Notwithstanding anything to the contrary in Section 6(d)(ii), to
                the
                extent that all or a portion (in either case, the “Unfunded Amount”) of
                any amount that is calculated as being due in respect of any Early
                Termination Date under Section 6(e) from Counterparty to Morgan will
                be
                paid by Counterparty from amounts other than any upfront payment
                paid to
                Counterparty by an Eligible Replacement that has entered a Replacement
                Transaction with Counterparty, then such Unfunded Amount shall be
                due on
                the next subsequent Distribution Date following the date on which
                the
                payment would have been payable as determined in accordance with
                Section
                6(d)(ii), and on any subsequent Distribution Dates until paid in
                full (or
                if such Early Termination Date is the final Distribution Date, on
                such
                final Distribution Date); provided, however, that if the date on
                which the
                payment would have been payable as determined in accordance with
                Section
                6(d)(ii) is a Distribution Date, such payment will be payable on
                such
                Distribution Date.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Part
      6

    

    Downgrade
      Provisions; Transfer; Payments on Early Termination;

    

    (1) Ratings
      Downgrade Provisions.  

     

    Following
      the occurrence of a Ratings Event I and/or a Ratings Event II, for as long
      as
      such Ratings Event I or Ratings Event II is continuing, the parties shall comply
      with the following provisions, as applicable.

     

    I. Ratings
      Event I:

     

    A.
      Actions upon Ratings Event 1: Not
      later
      than 30 calendar days after a Ratings Event I has occurred and is continuing,
      Morgan shall, at its own expense:

     

    (A)
      provide, or cause to be provided, an Eligible Guarantee to Counterparty in
      respect of all Morgan’s present and future obligations under this
      Agreement;

     

    or

     

    (B)
      transfer Morgan’s rights and obligations under the Agreement and all
      Confirmations pursuant to a Qualifying Novation; 

     

    or

     

    (C)
      deliver Eligible Collateral to Counterparty in accordance with the terms of
      the
      Approved Credit Support Document and, following such delivery, maintain Eligible
      Collateral as required under the Approved Credit Support Document; 

     

    Morgan’s
      obligations under this Part 6(1)(I) shall cease, solely with respect to such
      occurrence, if (A) there is no Ratings Event I or (B) Morgan has either provided
      an Eligible Guarantee in respect of all Morgan’s present and future obligations
      under this Agreement or transferred its rights and obligations pursuant to
      a
      Qualifying Novation in accordance with the terms of this Schedule. 

     

    B.
      Eligible Guarantee or Eligible Replacement below Ratings Event I
      Levels

     

    If
      a
      Qualifying Novation is made to an Eligible Replacement or an Eligible Guarantee
      (in respect of all Morgan’s present and future obligations under this Agreement)
      is provided and, immediately after the execution of such Qualifying Novation
      or
      Eligible Guarantee (as applicable), there is a Ratings Event I, then (so long
      as
      such Ratings Event I is continuing) Part 6(1)(I.A.) above shall apply without
      regard to the 30 calendar day time period referred to therein. 

     

    II.
      Ratings Event II

     

    A.
      Actions upon Ratings Event II

     

    If
      a
      Ratings Event II has occurred and is continuing, the following shall
      occur.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Morgan
      shall, at its own expense, use commercially reasonable efforts to, as soon
      as
      reasonably practicable:

     

    (A)
      provide, or cause to be provided, an Eligible Guarantee to Counterparty in
      respect of all Morgan’s present and future obligations under this Agreement;

     

    or

     

    (B)
      transfer Morgan’s rights and obligations under the Agreement and all
      Confirmations pursuant to a Qualifying Novation.

     

    If,
      immediately prior to such Ratings Event II, Morgan is required to deliver and
      maintain Eligible Collateral following a Ratings Event I, Morgan shall continue
      to maintain Eligible Collateral under the Approved Credit Support
      Document.

     

    If,
      immediately prior to such Ratings Event II, Morgan is not required to deliver
      and maintain Eligible Collateral following a Ratings Event I, then Morgan shall
      post Eligible Collateral in accordance with the terms of the Approved Credit
      Support Document until Morgan has provided an Eligible Guarantee in respect
      of
      all Morgan’s present and future obligations under this Agreement or transferred
      its rights and obligations pursuant to a Qualifying Novation in accordance
      with
      terms of this Schedule. In addition, Morgan shall continue to use commercially
      reasonable efforts to either transfer its rights and obligations pursuant to
      a
      Qualifying Novation or to provide an Eligible Guarantee (in respect of all
      Morgan’s present and future obligations under this Agreement) in accordance with
      terms of this Schedule. 

     

    Morgan’s
      obligations under this Part 6(1)(II) shall cease, solely with respect to such
      occurrence, if (A) there is no Rating Events II or (B) Morgan has either
      provided an Eligible Guarantee in respect of all Morgan’s present and future
      obligations under this Agreement or transferred its rights and obligations
      pursuant to a Qualifying Novation, in either case in accordance with the terms
      of this Schedule. 

     

    B.
      Ratings Event II Event of Default/Additional Termination
      Event

     

    Failure
      by Morgan to comply with the requirement of this Part 6(1)II to use commercially
      reasonable efforts to obtain an Eligible Guarantee in respect of all Morgan’s
      present and future obligations under this Agreement or Qualifying Novation
      shall
      constitute an Event of Default with respect to Morgan.

     

    If
      Morgan
      has not, within 10 Business Days of the occurrence of a Ratings Event II,
      obtained an Eligible Guarantee in respect of all Morgan’s present and future
      obligations under this Agreement or effected a Qualifying Novation, it shall
      constitute an Additional Termination Event in respect of which Morgan is the
      sole Affected Party and all Transactions are Affected Transactions, but only
      if:

     

    1.
      (a)
      one or more Eligible Replacements has made a Firm Offer (in response to
      solicitation either by Morgan or the Counterparty) to be the transferee of
      a
      transfer pursuant to a Qualifying Novation and/or (b) at least one entity has
      made a Firm Offer to provide an Eligible Guarantee in respect of all Morgan’s
      present and future obligations under this Agreement;

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    and

     

    
      	 	
              2.

            	
              such
                Ratings Event II is continuing.

            

    

     

    Failure
      by Morgan to post or maintain Eligible Collateral in accordance with the
      Approved Credit Support Document shall be an Event of Default under Section
      5(a)(iii). 

     

    III.
      Definitions

     

    As
      used
      herein:

     

    “Approved
      Credit Support Document” means the 1994 ISDA Credit Support Annex (ISDA
      Agreements Subject to New York Law Only), as modified by the Paragraph 13
      thereto, in the form annexed hereto. An Approved Credit Support Document will
      be
      executed and delivered contemporaneously with this Agreement.

     

    “Business
      Day” shall have the meaning given to this term in the Confirmation.

     

    “DBRS”
      means Dominion Bond Rating Service, or any successor thereto. 

     

    “Eligible
      Guarantee” means an unconditional and irrevocable guarantee that is provided by
      a guarantor as principal debtor rather than as surety and directly enforceable
      by the Counterparty and that meets the following conditions:

     

    
      	 	
              1.
                

            	
              either
                (A) a law firm has given a legal opinion confirming that none of
                the
                guarantor’s payments to the Counterparty will be subject to withholding
                tax or (B) such guarantee provides that, in the event that any of
                such
                guarantor’s payments to the Counterparty 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 the
                Counterparty will equal the full amount the Counterparty would have
                received had no such withholding been required;
                and

            

    

     

    
      	
            	2.	
              the
                guarantor must meet the Ratings Event I Required Ratings and/or Ratings
                Event II Required Ratings, provided that if such guarantor does not
                meet
                the Ratings Event I Required Ratings, such guarantee shall not be
                an
                Eligible Guarantee unless either the guarantor or Morgan delivers
                Eligible
                Collateral in accordance with the Approved Credit Support Document
                at the
                time such Eligible Guarantee is provided;
                and

            

    

     

    
      	 	
              3.
                

            	
              the
                Rating Agency Condition has been met with respect to S&P, Moody’s, and
                DBRS. 

            

    

     

    “Eligible
      Replacement” means (i) an entity that satisfies the Ratings Event I Required
      Ratings and/or the Ratings Event II Required Ratings (provided that if such
      entity does not meet the Ratings Event I Required Ratings, such entity shall
      not
      be an Eligible Replacement unless such entity delivers Eligible Collateral
      in
      accordance with the Approved Credit Support Document at the time such
      replacement) or (ii) an entity whose present and future obligations owing to
      the
      Counterparty are guaranteed pursuant to an Eligible Guarantee.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    “Firm
      Offer” means an offer which, when made, was capable of becoming legally binding
      upon acceptance. 

     

    “Moody’s”
      means Moody’s Investors Service, Inc. or any successor thereto.

     

    “Pooling
      Agreement” means the Pooling and Servicing Agreement dated May 1, 2007 among
      Asset Backed Funding Corporation, as depositor, Credit-Based Asset Servicing
      and
      Securitization LLC, as sponsor, Litton Loan Servicing LP, as servicer, and
      LaSalle Bank National Association, as trustee;

     

    “Qualifying
      Novation” means a transfer of all rights and obligations of Morgan under all
      Transactions that are the subject of this Agreement (which may include a
      transfer of this Agreement) to an Eligible Replacement that is party to a
      Replacement Agreement with the Counterparty that meets the following
      conditions:

     

    
      	 	
              1.

            	
              Morgan
                and the Eligible Replacement are both “dealers in notional principal
                contracts” within the meaning of Treasury regulations section 1.1001-4;
                

            

    

     

    
      	 	
              2.

            	
              as
                of the date of such transfer the Eligible Replacement would not be
                required to withhold or deduct on account of Tax from any payments
                under
                this Agreement or would be required to gross up for such Tax under
                Section
                2(d)(i)(4); 

            

    

     

    
      	 	
              3.

            	
              an
                Event of Default or Termination Event would not occur as a result
                of such
                transfer; 

            

    

     

    
      	 	
              4.

            	
              pursuant
                to a written instrument (the “Transfer Agreement”), the Eligible
                Replacement acquires and assumes all rights and obligations of Morgan
                under the Agreement and the relevant Transaction;
                

            

    

     

    
      	 	
              5.

            	
              Counterparty
                shall have determined, in its sole discretion, acting in a commercially
                reasonable manner, that such Transfer Agreement is effective to transfer
                to the Eligible Replacement all, but not less than all, of Morgan’s rights
                and obligations under the Agreement and all relevant Transactions;
                

            

    

     

    
      	 	
              6.

            	
              Morgan
                will be responsible for any costs or expenses incurred in connection
                with
                such transfer (including any replacement cost of entering into a
                replacement transaction); 

            

    

     

    
      	 	
              7.

            	
              either
                (A) Moody’s has been given prior written notice of such transfer and the
                Rating Agency Condition is satisfied with respect to S&P and DBRS or
                (B) each of the Rating Agencies has been given prior written notice
                of
                such transfer and such transfer is in connection with the assignment
                and
                assumption of this Agreement without modification of its terms, other
                than
                party names, dates relevant to the effective date of such transfer,
                tax
                representations (provided that the representations in Part 2(a)(i)
                are not
                modified) and any other representations regarding the status of the
                substitute counterparty of the type included in Part 5(b)(iv), Part
                5(v)(i)(2) or Part 5(v)(ii), notice information and account details;
                and
                (i) such transfer otherwise complies with the terms of the Pooling
                Agreement. 

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Rating
      Agencies” means each of S&P, Moody’s and DBRS to the extent that each such
      rating agency is then providing a rating for any of the C-BASS Mortgage Loan
      Asset-Backed Certificates, Series 2007-CB5 (the “Certificates”) or any notes
      backed by the Certificates (the “Notes”).

     

    “Rating
      Agency Condition” means, with respect to any particular proposed act or omission
      to act hereunder that the party acting or failing to act must consult with
      each
      of the Rating Agencies (unless otherwise specified) then providing a rating
      of
      the Certificates and receive from each Rating Agency a prior written
      confirmation that the proposed action or inaction would not cause a downgrade
      or
      withdrawal of the then-current rating of the Certificates or Notes.

     

    “Ratings
      Event I” shall occur with respect to S&P or Moody’s if no Relevant Entity
      has the Ratings Event I Required Ratings as specified under paragraph (a) or
      (b)
      thereof, as appicable. 

     

    An
      entity
      will have “Ratings Event I Required Ratings” (a) with respect to Moody’s, (i) if
      such entity is the subject of Moody’s Short-term Rating, such rating is
“Prime-1” and its long-term, unsecured and unsubordinated debt obligations are
      rated A2 or above by Moody’s and (ii) if such entity is not the subject of a
      Moody’s Short-term Rating, its long-term, unsecured and unsubordinated debt
      obligations are rated “A1” or above by Moody’s and (b) with respect to S&P,
      (i) the S&P short-term senior unsecured debt rating of such entity is A-1 or
      above or (ii) if such entity is not the subject of an S&P short-term rating,
      if its long-term senior unsecured debt rating is A+ or above. 

     

    “Ratings
      Event II” shall occur with respect to S&P or Moody’s if no Relevant Entity
      has the Ratings Event II Required Ratings under paragraph (a) or (b) thereof,
      as
      applicable. 

    

    An
      entity
      will have “Ratings Event II Required Ratings” (a) with respect to Moody’s, (i)
      if such entity is the subject of a Moody’s Short-term Rating, if such rating is
“Prime-2” or above and its long-term, unsecured and unsubordinated debt
      obligations are rated “A3” or above by Moody’s and (ii) if such entity is not
      the subject a Moody’s Short-term Rating, if its long-term, unsecured and
      unsubordinated debt obligations are rated “A3” by Moody’s and (b) with respect
      to S&P, such entity’s long-term senior unsecured S&P debt rating is BBB-
      or above.

     

    "Relevant
      Entity" means Morgan or any guarantor under an Eligible Guarantee in respect
      of
      all Morgan's present and future obligations under this Agreement. 

     

    “Replacement
      Agreement” means either (i) this Agreement, if this Agreement is transferred to
      an Eligible Replacement in the course of a Qualifying Novation or (ii) an
      agreement on substantially the same terms as this Agreement, including ratings
      triggers, credit support documentation and other provisions of this
      Agreement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “S&P”
      means by Standard & Poor’s Ratings Service or any successor
      thereto.

     

    “Supplemental
      Interest Trust” shall have the meaning set forth in the Pooling
      Agreement.

     

    (2) Amendment
      to Section 7 of the Agreement. 

     

    The
      following provisions shall be added to the end of Section 7: 

     

    A.
      Qualifying Novations

     

    
      	 	
              I.
                

            	
              The
                Counterparty shall determine in it sole discretion, acting in a
                commercially reasonable manner, whether or not a transfer is a Qualifying
                Novation.

            

    

     

    
      	 	
              II.
                

            	
              If
                an Eligible Replacement has made a Firm Offer (which remains capable
                of
                becoming legally binding upon acceptance) to be the transferee of
                a
                Qualifying Novation, the Counterparty shall at Morgan’s written request
                and cost, take any reasonable steps required to be taken by it to
                effect
                such transfer. 

            

    

    

    
      	 	
              III.
                

            	
              No
                consent from the Counterparty is required for a transfer that is
                a
                Qualifying Novation and is required pursuant to Part 6(1)
                above.

            

    

    

    B.
      Other
      Transfers

     

    Transfers
      other than Qualifying Novations or transfers under Section 7(a) of this
      Agreement shall be effective only if (i) Rating Agency Condition has been met
      with respect to S&P and DBRS, and (ii) the prior written consent of the
      other party is obtained.

    

    (3) Termination
      Amounts

     

    Notwithstanding
      Section 6 of this Agreement, so long as Morgan is (A) the Affected Party in
      respect of a Termination Event or (B) the Defaulting Party in respect of any
      Event of Default, paragraphs (i) to (viii) below shall apply:

     

    (i) The
      Counterparty shall not designate as an Early Termination Date a date earlier
      than 10 Business Days after the notice designating such Early Termination Date
      becomes effective.

     

    
      	 	
              (ii)

            	
              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 may
      be
      solicited by either the Counterparty or Morgan) which is (1) made by a Reference
      Market-maker that is an Eligible Replacement, (2) for an amount that would
      be
      paid to the Counterparty (expressed as a negative number) or by the Counterparty
      (expressed as a positive number) in consideration of an agreement between
      Counterparty and such Reference Market-maker to enter into a transaction (the
      “Replacement
      Transaction”)
      that
      would have the effect of 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 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 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).” 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (iii) The
      definition of “Settlement Amount” shall be deleted in its entirety and replaced
      with the following:

     

    “Settlement
      Amount”
means,
      with respect to any Early Termination Date, an amount (as determined by the
      Counterparty) 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
      the Counterparty so as to become legally binding, provided that:

     

    
      	
            	(a)	
              If,
                on or before the day falling ten Local Business Days after the day
                on
                which the Early Termination Date is designated or such later day
                as
                Counterparty may specify in writing to Morgan, (but in either case
                no
                later than the Early Termination Date) (such day, the “Latest Settlement
                Amount Determination Date”), no Market Quotation for the relevant
                Terminated Transaction or group of Terminated Transactions has been
                accepted by Counterparty 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 Quotation; or

            

    

     

    
      	
            	(b)	
              If
                on the Latest Settlement Amount Determination Date no Market Quotation
                for
                the relevant Terminated Transaction or group of Terminated Transactions
                is
                accepted by the Counterparty 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 the Counterparty’s Loss
                (whether positive or negative and without reference to any Unpaid
                Amounts)
                for the relevant Terminated Transaction or group of Terminated
                Transactions.”

            

    

     

    (iv) For
      the
      purpose of paragraph (4) of the definition of Market Quotation, the Counterparty
      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).

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (v) 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, the Counterparty shall be entitled to accept only the lowest of
      such
      Market Quotations.

     

    (vi) If
      the
      Counterparty requests Morgan in writing to obtain Market Quotations, Morgan
      shall use its reasonable efforts to do so on or before the Latest Settlement
      Amount Determination Day. 

     

    (vii) Morgan
      may also elect to obtain Market Quotations without a request from the
      Counterparty.

     

    (viii) 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) the Counterparty shall pay to
      Morgan an amount equal to the absolute value of the Settlement Amount in respect
      of the Terminated Transactions, (2) the Counterparty shall pay to Morgan the
      Termination Currency Equivalent of the Unpaid Amounts owing to Morgan and (3)
      Morgan shall pay to the Counterparty the Termination Currency Equivalent of
      the
      Unpaid Amounts owing to the Counterparty, 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 Morgan under (3) shall not be netted-off against any
      amount payable by the Counterparty under (1).”

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    Please
      confirm your agreement to the terms of the foregoing Schedule by signing
      below.

    
      	 	 	 
	 	
              JPMORGAN
                CHASE BANK, N.A.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Robert Mock
	 	
              

              Name:
                Robert Mock

              Title:
                Vice President

            

    

     

    
      	 	 	 
	 	
              LaSalle
                Bank National Association, not in its individual capacity but solely
                as
                Supplemental Interest Trust Trustee on behalf of the Supplemental
                Interest
                Trust with respect to C-BASS 2007-CB5 Trust, C-BASS Mortgage Loan
                Asset-Backed Certificates, Series 2007-CB5

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Susan L. Feld
	 	
              

              Name:
                Susan L. Feld

              Title:
                Vice President

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    ANNEX
      A

     

    PARAGRAPH
      13 TO

    CREDIT
      SUPPORT ANNEX

     

    to
      the
      Schedule to the

    Master
      Agreement

     

    dated
      as
      of May 31, 2007

     

    between

     

    
      	
              JPMorgan
                Chase Bank, N.A.

              (“Morgan”)

            	
              and

            	
              LaSalle
                Bank National Association, not in its individual capacity but solely
                as
                Supplemental Interest Trust Trustee on behalf of the Supplemental
                Interest
                Trust with respect to C-BASS 2007-CB5 Trust, C-BASS Mortgage Loan
                Asset-Backed Certificates, Series 2007-CB5
                (“Counterparty”)

            

    

     

    Paragraph
      13. Elections and Variables

     

    (a) Security
      Interest for “Obligations”.
      The term
“Obligations” as used in this Annex includes no additional obligations with
      respect to either party.

     

    (b) Credit
      Support Obligations.

     

    
      	 	
              (i)

            	
              Delivery
                Amount, Return Amount and Credit Support
                Amount.

            

    

     

    
      	 	
              (A)

            	
              “Delivery
                Amount”
                has the meaning specified in Paragraph 3(a), except that the words
“upon a
                demand made by the Transferee on or promptly following a Valuation
                Date”
                shall be deleted and replaced by the words “not later than the close of
                business on each Valuation Date”.

            

    

     

    
      	 	
              (B)

            	
              “Return
                Amount”
                has the meaning specified in Paragraph
                3(b).

            

    

     

    
      	 	
              (C)

            	
              “Credit
                Support Amount”
                shall mean the Independent Amount. 

            

    

     

    
      	 	
              (ii)

            	
              Eligible
                Collateral. The items specified on Appendix A attached hereto will
                qualify
                as “Eligible Collateral” with the lower of the specified Valuation
                Percentages to apply.

            

    

     

    
      	 	
              (iii)

            	
              Other
                Eligible Support. There shall be no “Other Eligible Support” for purposes
                of this Annex, unless agreed in writing between the
                parties.

            

    

     

    
      	 	
              (iv)

            	
              Thresholds.

            

    

     

    
      	 	
              (A)

            	
              “Independent
                Amount”
                shall mean the greater of (i) the S&P Independent Amount and (ii) the
                Moody’s Independent Amount.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (B)

            	
              “Threshold”
                means with respect to Morgan: infinity, provided
                that if delivery of Eligible Collateral is required following a Ratings
                Event I or a Ratings Event II pursuant to the Schedule, the Threshold
                shall be zero. 

            

    

     

    
      	 	 	
              “Threshold”
                means with respect to Counterparty:
                infinity.

            

    

     

    
      	 	
              (C)

            	
              “Minimum
                Transfer Amount”,
                with respect to a party on any Valuation Date, means U.S. $100,000
                (unless
                the notional amount is less than U.S. $50,000,000, in which case
                the
                Minimum Transfer Amount shall be
                U.S.$50,000).

            

    

     

    
      	 	
              (D)

            	
              Rounding.
                The Delivery Amount, rounded up, and with respect to the Return Amount,
                rounded down, to the nearest integral multiple of $1,000
                respectively.

            

    

     

    
      	 	
              (v)
                

            	
              “Exposure”
                has the meaning specified in Paragraph 12, except that after the
                word
                “Agreement” the words “(assuming , for this purpose only, that Part 6(3)
                of the Schedule is deleted)” shall be inserted and (2) on the last line of
                the definition of Exposure, the words “with terms substantially the same
                as those of this Agreement after the words “Replacement Transaction.”
                

            

    

     

    (c) Valuation
      and Timing.

     

    
      	(11)(i)	
              “Valuation
                Agent”
                means Morgan; provided, however, that if an Event of Default shall
                have
                occurred with respect to which Morgan is the Defaulting Party,
                Counterparty shall have the right to designate as Valuation Agent
                an
                independent party, reasonably acceptable to Morgan, the cost of which
                shall be borne by Morgan. The Valuation Agent’s calculations shall be made
                in accordance with standard market practices using commonly accepted
                third
                party sources such as Bloomberg or
                Reuters.

            

    

     

    
      	 	
              (ii)

            	
              “Valuation
                Date”
                means weekly on the last Local Business Day of each
                week.

            

    

     

    
      	 	
              (iii)

            	
              “Valuation
                Time”
                means the close of business in the city of the Valuation Agent on
                the
                Valuation Date or date of calculation, as
                applicable.

            

    

     

    
      	 	
              (iv)

            	
              “Notification
                Time”
                means 12:00 p.m., New York time, on a Local Business
                Day.

            

    

     

    
      	 	
              (v)

            	
              Standard
                & Poor’s Mark-to-market Procedures.
                This Agreement and the Posted Collateral shall be marked-to-market
                no less
                than once per week and additional collateral should be posted if
                necessary. For as long as the Morgan’s rating is A-2/BBB+ or higher, the
                mark-to-market valuations can be based upon internal marks. If Morgan’s
                rating is BBB or lower, Morgan shall get an external verification
                of its
                mark on a monthly basis. The verification of the mark can be obtained
                by
                an independent third party (i.e. trustee, administrator, manager),
                and
                cannot be verified by the same entity more than four times in any
                12-month
                period. In addition, the external mark-to-market valuations should
                reflect
                the higher of two bids from counterparties that would be eligible
                and
                willing to provide the swap in the absence of the current provider.
                The
                collateral requirement should be based on the greater of the internal
                and
                external marks, and any deficiencies in collateral value must be
                cured
                within three days. Morgan shall submit to Standard & Poor’s the
                internal mark-to-market calculations. Once Morgan has verified the
                mark-to-market valuation, it shall submit to Standard & Poor’s the two
                bids provided by external parties.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)

            	
              Conditions
                Precedent.
                Not applicable. 

            

    

     

    
      	
              (e)

            	
              Substitution.

            

    

     

    
      	 	
              (i)

            	
              “Substitution
                Date”
                has the meaning specified in Paragraph
                4(d)(ii).

            

    

     

    
      	 	
              (ii)

            	
              Consent.
                Inapplicable.

            

    

     

    (f) Dispute
      Resolution.

     

    
      	 	
              (i)

            	
              “Resolution
                Time”
                means 1:00 p.m., New York time, on the Local Business Day following
                the
                date on which the notice is given that gives rise to a dispute under
                Paragraph 5.

            

    

     

    
      	 	
              (ii)

            	
              Value.
                For the purposes of Paragraphs 5(i)(C) and 5(ii), the Value of Posted
                Credit Support other than Cash will be calculated as
                follows:

            

    

     

    
      	 	
              (A)

            	
              with
                respect to any Eligible Collateral except Cash, the sum of (I) (x)
                the
                mean of the high bid and low asked prices quoted on such date by
                any
                principal market maker for such Eligible Collateral chosen by the
                Disputing Party, or (y) if no quotations are available from a principal
                market maker for such date, the mean of such high bid and low asked
                prices
                as of the first day prior to such date on which such quotations were
                available, plus (II) the accrued interest on such Eligible Collateral
                (except to the extent Transferred to a party pursuant to any applicable
                provision of this Agreement or included in the applicable price referred
                to in (I) of this clause (A)) as of such date; multiplied by the
                applicable Valuation Percentage.

            

    

     

    
      	 	
              (iii)

            	
              Alternative.
                The provisions of Paragraph 5 will
                apply.

            

    

     

    (g) Holding
      and Using Posted Collateral.

     

    
      	 	
              (i)

            	
              Eligibility
                to Hold Posted Collateral; Custodians. Counterparty and its Custodian
                will
                be entitled to hold Posted Collateral pursuant to Paragraph 6(b);
                provided
                that the following conditions applicable to it are
                satisfied:

            

    

     

    
      	 	
              (1)

            	
              Counterparty
                is not a Defaulting Party; and

            

    

     

    
      	 	
              (2)

            	
              Posted
                Collateral may be held only in the following
                jurisdictions:

            

    

     

    
      	 	 	
              New
                York State or such other state in the United States in which the
                Counterparty is located; and

            

    

     

    
      	 	
              (3)
                

            	
              the
                account is segregated from all other accounts held by the Counterparty
                and
                its Custodian. 

            

    

     

    
      	 	 	
              (4)

            	
              Counterparty
                may appoint as Custodian (A) the entity then serving as Trustee under
                the
                Pooling Agreement or (B) any other entity if such entity (or, to
                the
                extent applicable, the parent company or credit support provider)
                shall
                have a long-term senior unsecured debt rating by S&P of at least “A”
                or a short-term senior unsecured debt rating of at least “A-1” by S&P.
                

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Initially,
      the Custodian for Counterparty is: The Supplemental Interest Trust
      Trustee

     

    
      	 	
              (ii)

            	
              Use
                of Posted Collateral. The provisions of Paragraph 6(c)(i) will not
                apply
                to Counterparty but the provisions of Paragraph 6(c)(ii) will apply
                to the
                Counterparty.

            

    

     

    (h) Distributions
      and Interest Amount.

     

    
      	 	
              (i)

            	
              Interest
                Rate. “Interest
                Rate”
                will be the annualized rate of return actually achieved on the Posted
                Collateral in the form of Cash during the related posting
                period.

            

    

     

    
      	 	
              (ii)

            	
              Transfer
                of Interest Amount. The Transfer of the Interest Amount will be made
                monthly on the second Local Business Day of each calendar month;
                provided
                that the Counterparty shall not be obliged to so transfer any Interest
                Amount unless and until it has earned and received such
                interest.

            

    

     

    
      	 	
              (iii)

            	
              Alternative
                to Interest Amount. The provisions of Paragraph 6(d)(ii) will
                apply.

            

    

     

    (i) Additional
      Representation(s). Not Applicable.

     

    (j) Other
      Eligible Support and Other Posted Support.

     

    
      	 	
              (i)

            	
              “Value”
                with respect to Other Eligible Support and Other Posted Support means:
                Not
                Applicable.

            

    

     

    
      	 	
              (ii)

            	
              “Transfer”
                with respect to Other Eligible Support and Other Posted Support means:
                Not
                Applicable

            

    

     

    (k) Demands
      and Notices.

     

    All
      demands, specifications and notices under this Annex will be made pursuant
      to
      the Notices Section of this Agreement, unless otherwise specified
      here:

     

    Counterparty:

    

    LaSalle
      Bank National Association

    135
      South
      LaSalle Street, Suite 1511

    Chicago,
      IL 60603

    Attention:
      Kimberly Sturm -- CBASS 2007-CB5

    Phone:
      312-904-4373

    Fax:
      312-904-1368

     

    (l) Addresses
      for Transfers.

     

    Counterparty:
      

     

    With
      respect to the Transaction referenced by the number 2000005092465:

     

    LaSalle
      Bank National Association

    ABA
      Number: 071000505

    Account
      Number: 724770.5

    Reference:
      C-BASS 2007-CB5 Supplemental Interest Trust - Cap Collateral
      Account

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    With
      respect to the Transaction referenced by the number
      6900037652779/0095008862:

    

    LaSalle
      Bank National Association

    ABA
      Number: 071000505

    Account
      Number: 724770.3

    Reference:
      C-BASS 2007-CB5 Supplemental Interest Trust - Swap Collateral
      Account

    Morgan:
      as set forth in notices to Counterparty from time to time.

    

    (m) Morgan
      as Pledgor and Counterparty as Secured Party.

     

    
      	 	
              (i)

            	
              Modification
                to Paragraph 1:
                The following subparagraph (b) is substituted for subparagraph (b)
                of this
                Annex:

            

    

     

    (b)
      Secured
      Party and Pledgor.
      All
      references in this Annex to the “Secured Party” will be to Counterparty and all
      corresponding references to the “Pledgor” will be to Morgan.

     

    
      	 	
              (ii)

            	
              Modification
                to Paragraph 2:
                The following Paragraph 2 is substituted for Paragraph 2 of this
                Annex:

            

    

     

    Paragraph
      2. Security Interest.
      The
      Pledgor hereby pledges to the Secured Party, as security for its Obligations,
      and grants to the Secured Party a first priority continuing security interest
      in, lien on and right of Set-Off against all Posted Collateral Transferred
      to or
      received by the Secured Party hereunder. Upon the Transfer by the Secured Party
      to the Pledgor of Posted Collateral, the security interest and lien granted
      hereunder on that Posted Collateral will be released immediately and, to the
      extent possible, without any further action by either party.

     

    
      	 	
              (iii)

            	
              Modification
                to Paragraph 9:
                The following first clause of Paragraph 9 is substituted for the
                first
                clause of Paragraph 9 of this
                Annex:

            

    

     

    Paragraph
      9. Representations.
      The
      Pledgor represents to the Secured Party (which representations will be deemed
      to
      be repeated as of each date on which it Transfers Eligible Collateral)
      that:

     

    (iv)
       Modification
      to Paragraph 10:
      Clauses
“10(a)” and “10(b)” are amended by adding the following sentence to the end of
      that paragraph:

     

    “Notwithstanding
      the preceding sentence, the Pledgor shall pay all reasonable costs incurred
      by the
      Secured Party in connection with any exchange pursuant to this Credit Support
      Annex.” 

    

    
      	 	
              (iv)

            	
              Modifications
                to Paragraph 12:
                The following definitions of “Pledgor” and “Secured Party” are substituted
                for the definitions of those terms contained in Paragraph 12 of this
                Annex:

            

    

     

    “Pledgor”
means
      Morgan 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    “Secured
      Party”
means
      Counterparty

     

    
      	 	
              (v)

            	
              Events
                of Default. Paragraph 7 will not apply to cause any Event of Default
                to
                exist with respect to Counterparty except that Paragraph 7(i) and
                7(ii)
                will apply to Counterparty solely in respect of Counterparty’s obligations
                under Paragraph 3(b) of the Credit Support
                Annex.

            

    

     

    
      	 	
              (vi)

            	
              Withholding.
                Paragraph 6(d)(ii) is hereby amended by inserting immediately after
“the
                Interest Amount” in the fourth line thereof the words “less any applicable
                withholding taxes.”

            

    

     

    (n) Independent
      Amounts

     

    (i) Addition
      to Paragraph 12:
      The
“S&P
      Independent Amount”
means,
      for any Valuation Date, (i) if a Ratings Event I with respect to S&P has not
      occured, zero, or (ii) otherwise, the sum of (x) the Secured Party’s Exposure
      for such Valuation Date and (y) the sum of the Volatility Buffers determined
      by
      the Valuation Agent with respect to each Transaction subject to the Agreement.
      

     

    “Volatility
      Buffer”
means,
      with respect to a Transaction, an amount equal to the product of (a) the Factor
      applicable to the Transaction and (b) the Notional Amount of such Transaction
      for the Calculation Period of such Transaction which includes such Valuation
      Date of the Transaction.

     

    “Factor”
means,
      with respect to a Transaction, a percentage dependent on Morgan’s Counterparty
      Rating by S&P, and the original maturity of the Transaction and determined
      by the Valuation Agent by reference to the following table:

     

    
      	
              S&P
                Counterparty Rating 

            	 	
              Maturities
                up to 5 years (%)

            	
               

            	
              Maturities
                up to 10 years (%)

            	
               

            	
              Maturities
                up to 30 years (%)

            	 
	
              A-2
                or higher

            	 	 	
              3.25

            	 	 	
              4.00

            	 	 	
              4.75

            	 
	
              A-3

            	 	 	
              4.00

            	 	 	
              5.00

            	 	 	
              6.25

            	 
	
              BB+
                or lower

            	 	 	
              4.50

            	 	 	
              6.75

            	 	 	
              7.50

            	 

    

    

    (ii)
      Addition
      to Paragraph 12:
      The
“Moody’s
      Independent Amount”
means,
      for any Valuation Date, 

     

    (i)
      for
      so long as the no Ratings Event I has occurred and is continuing, zero;

     

    (ii)
      If a
      Ratings Event I with respect to Moody’s has been continuing for at least 30
      Business Days and either:

    

    (a)
      no
      Ratings Downgrade Event II with respect to Moody’s has occurred and is
      continuing; or

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    (b)
      a
      Ratings Downgrade Event II with respect to Moody’s has been continuing for less
      than 30 Business Days, 

    

    then
      the
      Ratings Event I Collateral Amount specified in Appendix B hereto;
      and

    

    (iii)
      If
      neither (i) nor (ii) is applicable, the Ratings Event II Collateral Amount
      specified in Appendix C hereto.

    (o) Other
      Provisions

     

    
      	
            	(i)	
              Modification
                to Paragraph 7:
                Clause “(iii)” of Paragraph 7 shall be deleted in its
                entirety.

            

    

     

    
      	
            	(ii)	
              Modification
                to Paragraph 10:
                Clauses “10(a)” and “10(b)” are amended by adding the following sentence
                to the end of that paragraph:

            

    

     

    “Notwithstanding
      the preceding sentence, the Pledgor shall pay all reasonable costs incurred
      by
      the Secured Party in connection with any exchange pursuant to this Credit
      Support Annex.” 

     

    
      	 	
              (iii)

            	
              Modification
                to Paragraph 12:
                Clause “(B)” of the definition of “Value” will be substituted to read in
                its entirety as follows:

            

    

     

    “(B)
      a
      security, the bid price obtained by the Valuation Agent from one of the Pricing
      Sources multiplied by the applicable Valuation Percentage, if any;”

     

    
      	 	
              (iv)

            	
              Addition
                to Paragraph 12:
                The following definition of “Pricing Sources” shall be added immediately
                after the definition of the term “Posted Credit Support” and immediately
                prior to the definition of the term “Recalculation Date” in Paragraph 12
                of this Annex:

            

    

     

    “Pricing
      Sources”
means
      the sources of financial information commonly known as Bloomberg, Bridge
      Information Services, Data Resources Inc., Interactive Data Services,
      International Securities Market Association, Merrill Lynch Securities Pricing
      Service, Muller Data Corporation, Reuters, Wood Gundy, Trepp Pricing, JJ Kenny,
      S&P and Telerate.

     

    
      	 	
              (v)

            	
              Morgan
                and Counterparty agree that the text of the body of this Annex is
                intended
                to be the exact printed form of ISDA Credit Support Annex (Bilateral
                Form-ISDA Agreements Subject to New York Law Only) as published and
                Copyrighted by the International Swaps and Derivatives Association,
                Inc.

            

    

     

    
      	 	
              (vi)

            	
              “Notional
                Amount”
                means, with regard to an interest rate swap, the notional amount
                set forth
                in the confirmation thereof, and, with respect to a currency swap,
                including a cross-currency interest rate swap, the notional amount,
                as set
                forth in the confirmation, of that leg of the transaction that is
                denominated in the same currency as the relevant rated Certificates.
                

            

    

     

    
      	 	
              (vii)

            	
              “Transaction-Specific
                Hedge”
                means (A) any Transaction that is a cap, floor or swaption, or (B)
                any
                Swap Transaction in which (x) the Notional Amount of the Transaction
                is
                “balance guaranteed” or (y) the Notional Amount for any Calculation Period
                otherwise is not a specific dollar amount that is fixed at the inception
                of the Transaction.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (viii)

            	
              “Next
                Payment” means, in respect of each Next Payment Date, the greater of (i)
                the amount of any payments due to be made by Morgan under Section
                2(a) on
                such Next Payment Date less any payments due to be made by Counterparty
                under Section 2(a) on such Next Payment Date (in each case, after
                giving
                effect to any applicable netting under Section 2(c)) and (ii)
                zero.

            

    

     

    
      	 	
              (ix)

            	
              “Next
                Payment Date” means each date on which the next scheduled payment under
                any Transaction is due to be paid.

            

    

     

    
      	 	
              (x)

            	
              Form
                of Annex. Morgan and Counterparty hereby agree that the text of Paragraphs
                1 through 12, inclusive, of this Annex is intended to be the printed
                form
                of ISDA Credit Support Annex (Bilateral Form - ISDA Agreements Subject
                to
                New York Law Only version) as published and copyrighted in 1994 by
the
                International Swaps and Derivatives Association,
                Inc.

            

    

     

    [Remainder
      of Page Intentionally Blank]

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    Accepted
      and Agreed:

     

    JPMORGAN
      CHASE BANK, N. A.

     

     

    By: 
      /s/
      Robert Mock 

    
      

    

    Name:
      Robert Mock

    Title:
      Vice President

     

     

    LaSalle
      Bank National Association, not in its individual capacity but solely as
      Supplemental Interest Trust Trustee on behalf of the Supplemental Interest
      Trust
      with respect to C-BASS 2007-CB5 Trust, C-BASS Mortgage Loan Asset-Backed
      Certificates, Series 2007-CB5

     

     

    By: 
      /s/
      Susan
      L. Feld 

    
      

    

    Name:
      Susan L. Feld

    Title:
      Vice President

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Appendix
      A

    Valuation
      Percentages

     

    Applicable
      if the rated Certificates issued by the Counterparty are U.S.$
      Denominated

     

    
      	 	 	
               MOODY’S
                RATINGS EVENT I

            	 	
              MOODY’S
                RATINGS EVENT II

            	 	
              S&P  

            	 
	
              INSTRUMENT

            	 	 	 	 	 	 	 
	
              U.S.
                Dollar Cash

            	 	
              100%

            	 	
              100%

            	 	
              100

            	 
	
              EURO
                Cash

            	 	
              97%

            	 	
              93%

            	 	
              89.8

            	 
	
              Sterling
                Cash

            	 	
              97%

            	 	
              94%

            	 	
              91.9

            	 
	
              Fixed-Rate
                Negotiable Treasury Debt Issued by The U.S. Treasury Department with
                Remaining Maturity

            	 
	
              <1
                year

            	 	
              100%

            	 	
              100%

            	 	
              98.6

            	 
	
              1
                to 2 years

            	 	
              100%

            	 	
              99%

            	 	
              97.3

            	 
	
              2
                to 3 years

            	 	
              100%

            	 	
              98%

            	 	
              95.8

            	 
	
              3
                to 5 years

            	 	
              100%

            	 	
              97%

            	 	
              93.8

            	 
	
              5
                to 7 years

            	 	
              100%

            	 	
              95%

            	 	
              91.4

            	 
	
              7
                to 10 years

            	 	
              100%

            	 	
              94%

            	 	
              90.3

            	 
	
              10
                to 20 years

            	 	
              100%

            	 	
              89%

            	 	
              87.9

            	 
	
              >20
                years

            	 	
              100%

            	 	
              87%

            	 	
              84.6

            	 
	
              Floating-Rate
                Negotiable Treasury Debt Issued by The U.S. Treasury
                Department

            	 
	
              All
                Maturities

            	 	
              100%

            	 	
              99%

            	 	
              N/A

            	 
	
              Fixed-Rate
                U.S. Agency Debentures with Remaining Maturity

            	 
	
              <1
                year

            	 	
              100%

            	 	
              99%

            	 	
              98

            	 
	
              1
                to 2 years

            	 	
              100%

            	 	
              98%

            	 	
              96.8

            	 
	
              2
                to 3 years

            	 	
              100%

            	 	
              97%

            	 	
              96.3

            	 
	
              3
                to 5 years

            	 	
              100%

            	 	
              96%

            	 	
              94.5

            	 
	
              5
                to 7 years

            	 	
              100%

            	 	
              94%

            	 	
              90.3

            	 
	
              7
                to 10 years

            	 	
              100%

            	 	
              93%

            	 	
              86.9

            	 
	
              10
                to 20 years

            	 	
              100%

            	 	
              88%

            	 	
              82.6

            	 
	
              >20
                years

            	 	
              100%

            	 	
              86%

            	 	
              77.9

            	 
	
              Floating-Rate
                U.S. Agency Debentures -

            	 
	
              All
                Maturities

            	 	
              100%

            	 	
              98%

            	 	
              N/A

            	 
	
              Floating-Rate
                Euro-Zone Government Bonds Rated Aa3
                or
                Above and AAA by S&P with Remaining Maturity

            	 
	
              <1
                year

            	 	
              97%

            	 	
              93%

            	 	
              98

            	 
	
              1
                to 2 years

            	 	
              97%

            	 	
              92%

            	 	
              96.3

            	 
	
              2
                to 3 years

            	 	
              97%

            	 	
              91%

            	 	
              95.8

            	 
	
              3
                to 5 years

            	 	
              97%

            	 	
              89%

            	 	
              89.3

            	 
	
              5
                to 7 years

            	 	
              97%

            	 	
              87%

            	 	
              85.7

            	 
	
              7
                to 10 years

            	 	
              97%

            	 	
              86%

            	 	
              80.7

            	 
	
              10
                to 20 years

            	 	
              97%

            	 	
              82%

            	 	
              72.5

            	 
	
              >20
                years

            	 	
              97%

            	 	
              80%

            	 	 	 
	
              Floating-Rate
                Euro-Zone Government Bonds Rated Aa3
                or
                Above

            	 
	
              All
                Maturities

            	 	
              97%

            	 	
              92%

            	 	 	 
	
              Fixed-Rate
                United Kingdom Gilts with Remaining Maturity

            	 
	
              <1
                year

            	 	
              97%

            	 	
              93%

            	 	 	 
	
              1
                to 2 years

            	 	
              97%

            	 	
              92%

            	 	 	 
	
              2
                to 3 years

            	 	
              97%

            	 	
              91%

            	 	 	 
	
              3
                to 5 years

            	 	
              97%

            	 	
              90%

            	 	 	 
	
              5
                to 7 years

            	 	
              97%

            	 	
              89%

            	 	 	 
	
              7
                to 10 years

            	 	
              97%

            	 	
              88%

            	 	 	 
	
              10
                to 20 years

            	 	
              97%

            	 	
              84%

            	 	 	 
	
              >20
                years

            	 	
              97%

            	 	
              82%

            	 	 	 
	
              Floating-Rate
                United Kingdom Gilts

            	 
	
              All
                Maturities

            	 	
              97%

            	 	
              93%

            	 	 	 

    

     

    For
      purposes of Appendix A:

     

    (a)
      “Agency Debentures” means negotiable debt obligations which are fully guaranteed
      as to both principal and interest by the Federal National Mortgage Association,
      the Government National Mortgage Association or the Federal Home Loan Mortgage
      Corporation, but excluding (i) interest only and principal only securities
      and
      (ii) Collateralized Mortgage Obligations, Real Estate Mortgage Investment
      Conduits and similar derivative securities.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Appendix
      B

    Ratings
      Event I Collateral Amounts

     

    The
      Ratings Event I Collateral Amount will be equal to the greater of (A) zero
      and
      (B) the sum of (x) the Secured Party’s Exposure for such Valuation Date and (y)
      the aggregate of the Additional Ratings Event I Collateral Amounts for all
      Transactions.

     

    “Additional
      Ratings Event I Collateral Amount” means, for each Transaction, the Notional
      Amount for such Transaction (for the Calculation Period of such Transaction
      which includes such Valuation Date) multiplied by the applicable percentage
      as
      specified below. 

     

    
      	
              Potential
                Increase of Mid-Market Valuation of Swaps, Caps, Floors & Transaction
                Specific Hedges

            

    

     

    
      	
              Weighted
                Average 
                Life
                  of Hedge

                in
                  Years

              

            	 	
              Interest
                Rate Hedges

            	 	
              Currency
                Hedges

            	 
	
            	 	 	 	 	 
	
              1
                or less

            	 	 	
              0.25

            	
              %

            	 	
              2.20

            	
              %

            
	
              2
                or more but less than 3

            	 	 	
              0.50

            	
              %

            	 	
              2.40

            	
              %

            
	
              3
                or more but less than 4

            	 	 	
              0.70

            	
              %

            	 	
              2.60

            	
              %

            
	
              4
                or more but less than 5

            	 	 	
              1.00

            	
              %

            	 	
              2.80

            	
              %

            
	
              5
                or more but less than 6

            	 	 	
              1.20

            	
              %

            	 	
              2.90

            	
              %

            
	
              6
                or more but less than 7

            	 	 	
              1.40

            	
              %

            	 	
              3.10

            	
              %

            
	
              7
                or more but less than 8

            	 	 	
              1.60

            	
              %

            	 	
              3.30

            	
              %

            
	
              8
                or more but less than 9

            	 	 	
              1.80

            	
              %

            	 	
              3.40

            	
              %

            
	
              9
                or more but less than 10

            	 	 	
              2.00

            	
              %

            	 	
              3.60

            	
              %

            
	
              10
                or more but less than 11

            	 	 	
              2.20

            	
              %

            	 	
              3.80

            	
              %

            
	
              11
                or more but less than 12

            	 	 	
              2.30

            	
              %

            	 	
              3.90

            	
              %

            
	
              12
                or more but less than 13

            	 	 	
              2.50

            	
              %

            	 	
              4.00

            	
              %

            
	
              13
                or more but less than 14

            	 	 	
              2.70

            	
              %

            	 	
              4.10

            	
              %

            
	
              14
                or more but less than 15

            	 	 	
              2.80

            	
              %

            	 	
              4.30

            	
              %

            
	
              15
                or more but less than 16

            	 	 	
              3.00

            	
              %

            	 	
              4.40

            	
              %

            
	
              16
                or more but less than 17

            	 	 	
              3.20

            	
              %

            	 	
              4.50

            	
              %

            
	
              17
                or more but less than 18

            	 	 	
              3.30

            	
              %

            	 	
              4.60

            	
              %

            
	
              18
                or more but less than 19

            	 	 	
              3.50

            	
              %

            	 	
              4.80

            	
              %

            
	
              19
                or more but less than 20

            	 	 	
              3.60

            	
              %

            	 	
              4.905

            	 
	
              20
                or more but less than 21

            	 	 	
              3.70

            	
              %

            	 	
              5.00

            	
              %

            
	
              21
                or more but less than 22

            	 	 	
              3.90

            	
              %

            	 	
              5.00

            	
              %

            
	
              22
                or more but less than 23

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              23
                or more but less than 24

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              24
                or more but less than 25

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              25
                or more but less than 26

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              26
                or more but less than 27

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              27
                or more but less than 28

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              28
                or more but less than 29

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              29
                or more but less than 30

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            
	
              30
                or more

            	 	 	
              4.00

            	
              %

            	 	
              5.00

            	
              %

            

    

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    Appendix
      C

    Ratings
      Event II Collateral Amount

    

    The
      Ratings Event II Collateral Amount will be equal to the greater of (A) zero,
      (B)
      the sum, for each Transaction, of the Next Payment, owed by Morgan under each
      such Transaction or (C) the sum of (x) the Secured Party’s Exposure for such
      Valuation Date and (y) the aggregate of the Additional Ratings Event II
      Collateral Amounts for all Transactions.

     

    “Additional
      Ratings Event II Collateral Amount” means, for each Transaction, the Notional
      Amount for such Transaction for the Calculation Period of such Transaction
      which
      includes such Valuation Date, multiplied by the applicable percentage as
      specified below. 

     

    
      	 	 	
              Swaps
                Only 

            	 	
              Transaction
                Sepcific Hedges 

            	 
	
              Weighted
                Average 
                Life
                  of Hedge

                in
                  Years

              

            	 	
              Interest
                Rate Swap

            	 	
              Currency
                Swap

            	 	
              Interest
                Rate Swap

            	 	
              Currency
                Swap

            	 
	
            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	
              1
                or less

            	 	 	
              0.60

            	
              %

            	 	
              7.25

            	
              %

            	 	
              0.75

            	
              %

            	 	
              7.40

            	
              %

            
	
              2
                or more but less than 3

            	 	 	
              1.20

            	
              %

            	 	
              7.50

            	
              %

            	 	
              1.50

            	
              %

            	 	
              7.80

            	
              %

            
	
              3
                or more but less than 4

            	 	 	
              1.70

            	
              %

            	 	
              7.70

            	
              %

            	 	
              2.20

            	
              %

            	 	
              8.20

            	
              %

            
	
              4
                or more but less than 5

            	 	 	
              2.30

            	
              %

            	 	
              8.00

            	
              %

            	 	
              2.90

            	
              %

            	 	
              8.50

            	
              %

            
	
              5
                or more but less than 6

            	 	 	
              2.80

            	
              %

            	 	
              8.20

            	
              %

            	 	
              3.60

            	
              %

            	 	
              8.90

            	
              %

            
	
              6
                or more but less than 7

            	 	 	
              3.30

            	
              %

            	 	
              8.40

            	
              %

            	 	
              4.20

            	
              %

            	 	
              9.20

            	
              %

            
	
              7
                or more but less than 8

            	 	 	
              3.80

            	
              %

            	 	
              8.60

            	
              %

            	 	
              4.80

            	
              %

            	 	
              9.60

            	
              %

            
	
              8
                or more but less than 9

            	 	 	
              4.30

            	
              %

            	 	
              8.80

            	
              %

            	 	
              5.40

            	
              %

            	 	
              9.90

            	
              %

            
	
              9
                or more but less than 10

            	 	 	
              4.80

            	
              %

            	 	
              9.00

            	
              %

            	 	
              6.00

            	
              %

            	 	
              10.20

            	
              %

            
	
              10
                or more but less than 11

            	 	 	
              5.30

            	
              %

            	 	
              9.20

            	
              %

            	 	
              6.60

            	
              %

            	 	
              10.50

            	
              %

            
	
              11
                or more but less than 12

            	 	 	
              5.60

            	
              %

            	 	
              9.30

            	
              %

            	 	
              7.00

            	
              %

            	 	
              10.70

            	
              %

            
	
              12
                or more but less than 13

            	 	 	
              6.00

            	
              %

            	 	
              9.50

            	
              %

            	 	
              7.50

            	
              %

            	 	
              11.00

            	
              %

            
	
              13
                or more but less than 14

            	 	 	
              6.40

            	
              %

            	 	
              9.70

            	
              %

            	 	
              8.00

            	
              %

            	 	
              11.30

            	
              %

            
	
              14
                or more but less than 15

            	 	 	
              6.80

            	
              %

            	 	
              9.80

            	
              %

            	 	
              8.50

            	
              %

            	 	
              11.50

            	
              %

            
	
              15
                or more but less than 16

            	 	 	
              7.20

            	
              %

            	 	
              10.00

            	
              %

            	 	
              9.00

            	
              %

            	 	
              11.80

            	
              %

            
	
              16
                or more but less than 17

            	 	 	
              7.60

            	
              %

            	 	
              10.00

            	
              %

            	 	
              9.50

            	
              %

            	 	
              12.00

            	
              %

            
	
              17
                or more but less than 18

            	 	 	
              7.90

            	
              %

            	 	
              10.00

            	
              %

            	 	
              9.90

            	
              %

            	 	
              12.00

            	
              %

            
	
              18
                or more but less than 19

            	 	 	
              8.30

            	
              %

            	 	
              10.00

            	
              %

            	 	
              10.40

            	
              %

            	 	
              12.00

            	
              %

            
	
              19
                or more but less than 20

            	 	 	
              8.60

            	
              %

            	 	
              10.00

            	
              %

            	 	
              10.80

            	
              %

            	 	
              12.00

            	
              %

            
	
              20
                or more but less than 21

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              21
                or more but less than 22

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              22
                or more but less than 23

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              23
                or more but less than 24

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              24
                or more but less than 25

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              25
                or more but less than 26

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              26
                or more but less than 27

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              27
                or more but less than 28

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              28
                or more but less than 29

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              29
                or more but less than 30

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            
	
              30
                or more

            	 	 	
              9.00

            	
              %

            	 	
              10.00

            	
              %

            	 	
              11.00

            	
              %

            	 	
              12.00

            	
              %

            

    

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    Appendix
      D

    Item
      1115 Agreement

     

     

     

     

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    

      ITEM
        1115
        AGREEMENT

       

      Item
        1115
        Agreement (this “Agreement”), dated as of May 31, 2007, among Credit-Based Asset
        Servicing and Securitization LLC (“Sponsor”), Asset Backed Funding Corporation
        (“Depositor”) and JPMorgan Chase Bank, N.A. (the “Derivative
        Provider”).

       

      RECITALS

       

      WHEREAS,
        the Depositor has filed Registration Statement on Form S-3 (each, a
“Registration Statement”) with the U.S. 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 “Issuing Entity”);

       

      WHEREAS,
        from time to time, on or prior to the closing date of a securitization (the
        “Closing Date”) pursuant to which Securities are offered (each, a
“Securitization”), the Derivative Provider enters into certain derivative
        agreements with the Issuing Entity (or a trustee or securities or swap
        administrator or other person acting in a similar capacity in connection
        with
        such Securitization (each, an “Administrator”)), or the Derivative Provider
        enters into certain derivative agreements with Sponsor or an affiliate of
        the
        Sponsor and such derivative agreements are assigned to the Issuing Entity
        or
        Administrator (each, in either case, a “Derivative Agreement”);

       

      WHEREAS,
        the Derivative Provider agrees and acknowledges that the Depositor is required
        under Regulation AB (as defined herein) to disclose certain financial data
        and/or financial statements with respect to the Derivative Provider, depending
        on the applicable “significance percentage” for each Derivative Agreement as
        calculated from time to time in accordance with Item 1115 of Regulation
        AB;

       

      WHEREAS,
        the Sponsor, on behalf of itself and each Issuing Entity through which it
        effects Securitizations, the Depositor and the Derivative Provider, desire
        to
        set forth certain rights and obligations with regard to financial data and/or
        financial statements which the Sponsor and Depositor are required to disclose
        in
        accordance with Regulation AB (as defined herein) and certain related
        matters.

       

      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.

              

      

       

      Additional
        Termination Event: With respect to any Derivative Agreement, as defined in
        the
        related Master Agreement. 

       

      Affected
        Party: With respect to any Derivative Agreement, as defined in the related
        Master Agreement. 

       

      Company
        Information: As defined in Addendum A.

       

      Company
        Financial Information: With respect to each Securitization, the financial
        data
        described in Item 1115(b)(1) of Regulation AB or the financial statements
        described in Item 1115(b)(2) of Regulation AB, in either case with respect
        to
        the Derivative Provider and any affiliated entities providing derivative
        instruments to the related Issuing Entity and/or Administrator; provided,
        that
        the Derivative Provider shall not be required to calculate the “significance
        percentage” for purposes of this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      GAAP:
        As
        defined in Section 3(a)(ii).

       

      Exchange
        Act: The Securities Exchange Act of 1934, as amended, and the rules and
        regulations promulgated thereunder.

       

      Exchange
        Act Reports: With respect to an Issuing Entity, all Distribution Reports
        on Form
        10-D, Current Reports on Form 8-K and Annual Reports on Form 10-K and any
        amendments thereto, required to be filed by Depositor with respect to such
        Issuing Entity pursuant to the Exchange Act.

       

      Free
        Writing Prospectus: With respect to each Securitization, the free writing
        prospectus or prospectuses prepared in connection with the public offering
        and
        sale of the related Securities and used to price such Securities.

       

      Master
        Agreement: With respect to any Derivative Agreement, the ISDA Master Agreement
        referenced in such Derivative Agreement, together with any Schedule, Credit
        Support Annex and Confirmations forming a part thereof or incorporated therein,
        or, if no such ISDA Master Agreement exists, the ISDA Master Agreement deemed
        to
        apply to such Derivative Agreement pursuant to its terms, together with any
        Schedule, Credit Support Annex and Confirmations deemed to form a part thereof
        or to be incorporated therein.

       

      Prospectus
        Supplement: With respect to each Securitization, 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.
        §§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, 1,631 (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 Derivative
                  Provider.

              

      

       

      
        	 	
                (a)

              	
                Prior
                  to printing the Free Writing Prospectus and/or Prospectus Supplement
                  relating to each Securitization, the Derivative Provider, at its
                  own
                  expense, shall: 

              

      

       

      
        	 	
                (i)

              	
                provide
                  to the Depositor such information as is reasonably requested by
                  the
                  Depositor for the purpose of compliance with Item 1115(a)(1) of
                  Regulation
                  AB or the Securities Act in respect of such Securitization, which
                  information shall include, at a
                  minimum:

              

      

       

      
        	 	
                (A)

              	
                the
                  Derivative Provider’s legal name (and any
                  d/b/a),

              

      

       

      
        	 	
                (B)

              	
                the
                  organizational form of the Derivative Provider,

              

      

       

      
        	 	
                (C)

              	
                a
                  description of the general character of the business of the Derivative
                  Provider,

              

      

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        	 	
                (D)

              	
                a
                  description of any affiliation or relationship (as set forth in
                  Item
                  1119(a)) between the Derivative Provider and any of the following
                  parties:

              

      

       

      
        	 	
                (1)

              	
                the
                  Sponsor (or any other sponsor identified to the Derivative Provider
                  by
                  Sponsor),

              

      

       

      
        	 	
                (2)

              	
                the
                  Depositor,

              

      

       

      
        	 	
                (3)

              	
                the
                  Issuing Entity,

              

      

       

      
        	 	
                (4)

              	
                the
                  servicer (or other person acting in a similar capacity) identified
                  to the
                  Derivative Provider by Sponsor,

              

      

       

      
        	 	
                (5)

              	
                the
                  trustee (or other person acting in a similar capacity) identified
                  to the
                  Derivative Provider by Sponsor,

              

      

       

      
        	 	
                (6)

              	
                any
                  originator identified to the Derivative Provider by the
                  Sponsor,

              

      

       

      
        	 	
                (7)

              	
                any
                  enhancement or support provider identified to the Derivative Provider
                  by
                  the Sponsor, and

              

      

       

      
        	 	
                (8)

              	
                any
                  other material Securitization party identified to the Derivative
                  Provider
                  by the Sponsor; 

              

      

       

      
        	 	
                (E)

              	
                information
                  relating to any legal or governmental proceedings;
                  and

              

      

       

      
        	 	
                (F)

              	
                any
                  other information that is material or otherwise required for the
                  purpose
                  of compliance (as determined by the Depositor in its sole discretion)
                  with
                  the Securities Act; and

              

      

       

      
        	 	
                (ii)

              	
                if
                  reasonably requested by the Depositor for the purpose of compliance
                  with
                  Item 1115(b) of Regulation AB with respect to such Securitization,
                  provide
                  to the Depositor the Company Financial Information described in
                  Item
                  1115(b)(1) of Regulation AB or Item 1115(b)(2) of Regulation AB
                  (as
                  specified by the Depositor).

              

      

       

      
        	 	
                (b)

              	
                Following
                  the Closing Date with respect to each
                  Securitization:

              

      

       

      
        	 	
                (i)

              	
                for
                  so long as the Depositor is required to file Exchange Act Reports
                  in
                  respect of the related Issuing Entity, the Derivative Provider,
                  at its own
                  expense, shall no later than the 25th
                  calendar day of each month, notify the Depositor in writing of
                  any known
                  material affiliations or relationships that develop following the
                  Closing
                  Date between the Derivative Provider and any of the parties specified
                  in
                  Section 2(a)(i)(D) (and any other parties identified in writing
                  by the
                  Depositor), and provide to the Depositor a description of such
                  affiliations or relationships;

              

      

       

      
        	 	
                (ii)

              	
                if,
                  on any Business Day for so long as the Depositor is required to
                  file
                  Exchange Act Reports in respect of the related Issuing Entity,
                  the
                  Depositor provides written notice to the Derivative Provider that
                  the
                  “significance percentage” for any Derivative Agreement relating to such
                  Securitization (calculated separately or in the aggregate with
                  other
                  Derivative Agreements for such Securitization, such aggregation
                  as
                  determined by the Depositor in its sole discretion), is (x) 10%
                  or more
                  (but less than 20%) or (y) 20% or more, in each case based on a
                  reasonable
                  good-faith determination by the Depositor of the “significance percentage”
                  in accordance with Item 1115 of Regulation AB (the providing of
                  such
                  notice, a “Derivative Disclosure Event”), the Derivative Provider, at its
                  own expense, shall: 

              

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	 	
                (A)

              	
                provide
                  to the Depositor the Company Financial Information described in
                  (x) Item
                  1115(b)(1) of Regulation AB or (y) Item 1115(b)(2) of Regulation
                  AB,
                  respectively, 

              

      

       

      
        	 	
                (B)

              	
                with
                  respect to each Derivative Agreement entered into in connection
                  with such
                  Securitization, cause another entity to replace the Derivative
                  Provider as
                  a party to such Derivative Agreement or, if such replacement cannot
                  be
                  effected, to enter into a replacement derivative agreement on terms
                  substantially identical to such Derivative Agreement (as determined
                  by the
                  Depositor in its sole discretion), which entity (1) meets or exceeds
                  (or a
                  guarantor, as applicable, for such entity meets or exceeds) any
                  rating
                  agency criteria set forth in, or otherwise applicable to, such
                  Derivative
                  Agreement (as determined by the Depositor in its sole discretion),
                  (2) has
                  entered into an agreement with Sponsor and Depositor substantially
                  in the
                  form of this Agreement, (3) has
                  agreed to comply with the immediately preceding clause (A) and
                  Section
                  2(b)(iii), and
                  (4) has been approved by the Depositor (which approval shall not
                  be
                  unreasonably withheld),

              

      

       

      
        	 	
                (C)

              	
                obtain
                  a guaranty of the Derivative Provider’s obligations under the Derivative
                  Agreement from an affiliate of the Derivative Provider, which affiliate
                  (1) meets or exceeds any rating agency criteria set forth in, or
                  otherwise
                  applicable to, such Derivative Agreement (as determined by the
                  Depositor
                  in its sole discretion), (2) has entered into an agreement with
                  the
                  Sponsor and Depositor substantially in the form of this Agreement,
                  (3) has
                  agreed to comply with the immediately preceding clause (A) and
                  Section
                  2(b)(iii) such that the information provided in respect of such
                  affiliate
                  will satisfy any requirements under Item 1115 of Regulation AB
                  that are
                  applicable to the Derivative Provider (as determined by the Depositor
                  in
                  its sole discretion), and (4) has been approved by the Depositor
                  (which
                  approval shall not be unreasonably withheld),
                  or

              

      

       

      
        	 	
                (D)

              	
                post
                  collateral in an amount sufficient to reduce the “significance percentage”
                  for purposes of Item 1115 of Regulation AB with respect to any
                  Derivative
                  Agreement relating to such Securitization, calculated separately
                  or in the
                  aggregate with other Derivative Agreements for such Securitization
                  (such
                  aggregation and calculation of the “significance percentage” as determined
                  by the Depositor in its sole discretion) (1) to 8% if the Depositor
                  has
                  notified the Derivative Provider that the “significance percentage” is 10%
                  or more (but less than 20%) or (2) to 18% if the Depositor has
                  notified
                  the Derivative Provider that the “significance percentage” is 20% or more;
                  and

              

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        	 	
                (iii)

              	
                for
                  so long (A) as the Depositor is required to file Exchange Act Reports
                  in
                  respect of the related Issuing Entity and (B) the “significance
                  percentage” for any Derivative Agreement relating to such Securitization
                  (calculated separately or in the aggregate with other Derivative
                  Agreements for such Securitization) is (x) 10% or more (but less
                  than 20%)
                  or (y) 20% or more, in each case based on a reasonable good-faith
                  determination by the Depositor of the significance percentage in
                  accordance with Item 1115 of Regulation AB, if the Derivative Provider
                  has
                  provided Company Financial Information to the Depositor pursuant
                  to
                  Section 2(a)(ii) or Section 2(b)(ii), the Derivative Provider,
                  at its own
                  expense, shall within five (5) days of the release of any updated
                  Company
                  Financial Information, provide to the Depositor such updated Company
                  Financial Information.

              

      

       

      
        	 	
                (c)

              	
                The
                  Derivative Provider shall provide all Company Financial Information
                  provided pursuant to this Section 2 in Microsoft Word® format, Microsoft
                  Excel® format or another format suitable for conversion to the format
                  required for filing by the Depositor with the Commission via the
                  Electronic Data Gathering and Retrieval System (EDGAR) (for avoidance
                  of
                  doubt, Company Financial Information shall not be provided in .pdf
                  format); alternatively, if permitted by Regulation AB (as determined
                  by
                  the Sponsor in its sole discretion), the Derivative Provider may
                  provide
                  such Company Financial Information by providing to the Depositor
                  written
                  consent to incorporate by reference in Exchange Act Reports of
                  the
                  Depositor such Company Financial Information from reports filed
                  by the
                  Derivative Provider pursuant to the Exchange Act. In addition,
                  the
                  Derivative Provider shall also provide Company Financial Information
                  provided pursuant to Section 2(a)(ii) in a format appropriate for
                  use in
                  the related Free Writing Prospectus and Prospectus Supplement.
                  If any
                  Company Financial Information provided pursuant to this Section
                  2 has been
                  audited, the Derivative Provider shall cause its outside accounting
                  firm
                  to provide to the Depositor such accounting firm’s written consent to the
                  filing or incorporation by reference in the Exchange Act Reports
                  of the
                  Depositor of such accounting firm’s report relating to its audits of such
                  Company Financial Information. 

              

      

       

      
        	
                Section
                  3.

              	
                Representations
                  and Warranties of the Derivative
                  Provider.

              

      

       

      The
        Derivative Provider represents and warrants to the Depositor, as of the date
        on
        which the Derivative Provider first provides Company Financial Information
        to
        the Depositor under Section 2(a)(ii), Section 2(b)(ii) or Section 2(b)(iii),
        that, except as disclosed in writing to the Depositor prior to such date:
        

       

      
        	 	
                (a)

              	
                the
                  outside accounting firm that certifies the financial statements
                  and
                  supporting schedules included in Company Financial Information,
                  or which
                  provides a procedures and/or comfort letter with respect to such
                  Company
                  Financial Information, (as applicable) is an independent registered
                  public
                  accounting firm as required by the Securities
                  Act;

              

      

       

      
        	 	
                (b)

              	
                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 Derivative
                  Provider;

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        	 	
                (c)

              	
                the
                  financial statements included in the Company Financial Information
                  present
                  fairly the consolidated financial position of the Derivative Provider
                  and
                  its consolidated subsidiaries as of 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, such financial statements have been prepared in conformity
                  with United States 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; and
                  

              

      

       

      
        	 	
                (d)

              	
                the
                  Company Financial Information and other Company Information included
                  in
                  any Free Writing Prospectus or Prospectus Supplement or referenced
                  via a
                  website link 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.

              

      

       

      
        	
                Section
                  4.

              	
                Third
                  Party Beneficiaries.

              

      

       

      The
        Derivative Provider agrees that the terms of this Agreement shall be
        incorporated by reference into any Derivative Agreement so that each Issuing
        Entity or Administrator that is a party to a Derivative Agreement shall be
        an
        express third party beneficiary of this Agreement. 

       

      
        	
                Section
                  5.

              	
                Indemnification.

              

      

       

      The
        Derivative Provider indemnification set forth in Addendum A hereto is
        incorporated by reference herein.

       

      
        	
                Section
                  6.

              	
                Additional
                  Termination Events.

              

      

       

      
        	 	
                (a)

              	
                (i)
                  Any breach by the Derivative Provider of a representation or warranty
                  set
                  forth in Section 3 to the extent made as of a date prior to a Closing
                  Date, which is not cured by such Closing Date (or, in the case
                  of
                  information required under Section 2(a), the date of printing of
                  the Free
                  Writing Prospectus or Prospectus Supplement, as applicable), or
                  (ii) any
                  breach by the Derivative Provider of a representation or warranty
                  pursuant
                  to Section 3 to the extent made as of a date subsequent to such
                  Closing
                  Date, or (iii) any failure by the Derivative Provider to comply
                  with the
                  requirements of Section 2(a) or so much of Section 2(b)(iii) as
                  relates to
                  Section 2(a), shall immediately and automatically, without notice,
                  constitute an Additional Termination Event under each Derivative
                  Agreement, with respect to which the Derivative Provider shall
                  be the sole
                  Affected Party. 

              

      

       

      
        	 	
                (b)

              	
                Any
                  failure of the Derivative Provider to satisfy the requirements
                  of Section
                  2(b)(ii) or so much of Section 2(b)(iii) as relates to Section
                  2(b)(ii)
                  within ten (10) calendar days of any Derivative Disclosure Event
                  shall
                  constitute an Additional Termination Event under each Derivative
                  Agreement, which respect to which the Derivative Provider shall
                  be the
                  sole Affected Party. 

              

      

       

      
        	 	
                (c)

              	
                Following
                  a termination of a Derivative Agreement resulting from an Additional
                  Termination Event set forth in this Section 6, a termination payment
                  (if
                  any) shall be payable under such Derivative Agreement by the applicable
                  party as determined under Section 6(e)(ii) of the related Master
                  Agreement, with Market Quotation and Second Method being the applicable
                  method for determining such termination payment (notwithstanding
                  anything
                  in such Derivative Agreement to the contrary).

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	 	
                (d)

              	
                In
                  the event that a replacement entity or replacement derivative agreement
                  has been secured in accordance with Section 2(b)(ii)(B), or a guarantor
                  has been secured in accordance with Section 2(b)(ii)(C), the Derivative
                  Provider shall promptly reimburse the Issuing Entity for all reasonable
                  incidental expenses incurred by the Issuing Entity in connection
                  with the
                  replacement of the Derivative Provider or Derivative Agreement
                  or addition
                  of such guarantor. The provisions of this paragraph shall not limit
                  whatever rights the Issuing Entity may have under other provisions
                  of this
                  Agreement or otherwise, whether in equity or at law, such as an
                  action for
                  damages, specific performance or injunctive
                  relief.

              

      

       

      
        	
                Section
                  7.

              	
                Miscellaneous.

              

      

       

      
        	 	
                (a)

              	
                Construction.
                  Throughout this Agreement, as the context requires, (i) the singular
                  tense
                  and number includes the plural, and the plural tense and number
                  includes
                  the singular, (ii) the past tense includes the present, and the
                  present
                  tense includes the past, and (iii) 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.
                  No party to this Agreement may assign its rights under this Agreement
                  without the prior written consent of the other parties hereto.
                  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)

              	
                Notices.
                  All notices and other communications hereunder will be in writing
                  (including by facsimile) and effective only upon receipt, and,
                  if sent to
                  the Derivative Provider will be mailed or delivered to JPMorgan
                  Chase
                  Bank, N.A. 270 Park Avenue, 10th
                  Floor New York, New York 10017, Attn: Robert Mock, if sent to the
                  Sponsor
                  will be mailed or delivered to Credit-Based Asset Servicing and
                  Securitization LLC, 335 Madison Avenue, 19th
                  Floor, New York, New York 10017, Fax: (212) 850-7762, Attn: General
                  Counsel, and if sent to the Depositor will be mailed or delivered
                  to Asset
                  Backed Funding Corporation, 214 North Tryon Street, Charlotte,
                  North
                  Carolina 28255, Attn: Chris Schiavone.

              

      

       

      
        	 	
                (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 (other than Sections 5-1401 and 5-1402
                  of the
                  New York General Obligations Law).

              

      

       

      
        	 	
                (e)

              	
                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 necessary or expedient to effectuate and carry out this
                  Agreement.

              

      

       

      
        	 	
                (f)

              	
                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.

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	 	
                (g)

              	
                Counterparts.
                  This Agreement may be executed in one or more counterparts, each
                  of which
                  shall be deemed an original, all of which together shall constitute
                  one
                  and the same instrument.

              

      

       

      
        	 	
                (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 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.

              

      

       

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      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.

       

      CREDIT-BASED
        ASSET SERVICING AND SECURITIZATION LLC

       

      By: 
        /s/
        Chris Schiavone            
Name:
        Chris
        Schiavone
Title:
        Principal

       

      ASSET
        BACKED FUNDING CORPORATION

       

      By: 
        /s/
        Juanita L. Deane-Warner        
Name:
        Juanita
        L. Dean-Warner
Title:
        Vice
        President

       

      JPMORGAN
        CHASE BANK, N.A.

       

      By: 
        /s/
        Robert Mock              
Name:
        Robert
        Mock
Title:
        Vice
        President

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Addendum
        A

       

      [Insert
        Regulation AB indemnification language]

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