Document:

ex101.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	Exhibit 10.1

EXECUTION COPY

	

     SECOND AMENDMENT, dated as of December 18, 2006 (this “Amendment”), to the CREDIT AGREEMENT dated as of July 8, 2005, as amended by the First Amendment dated as of December 7, 2006 (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among EXPEDIA, INC., a Delaware corporation; EXPEDIA, INC., a Washington corporation; TRAVELSCAPE, LLC, a Nevada limited liability company (successor to TRAVELSCAPE, INC., a Nevada corporation); HOTELS.COM, a Delaware corporation; HOTWIRE, INC., a Delaware corporation; the other Borrowing Subsidiaries from time to time party thereto; the Lenders from time to time party thereto; JPMORGAN CHASE BANK, N.A., as Administrative Agent; and J.P. Morgan Europe Limited, as London Agent. 

	WITNESSETH:

     WHEREAS, the Lenders have agreed to extend credit to the Borrowers under the Credit Agreement on the terms and subject to the conditions set forth therein; and 

     WHEREAS, the Company has requested that the Lenders amend certain provisions of the Credit Agreement and the Lenders under the Credit Agreement whose signatures appear below, constituting at least the Required Lenders, are willing to amend the Credit Agreement on the terms and subject to the conditions set forth herein; 

     NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows: 

     SECTION 1. Defined Terms. Capitalized terms used but not otherwise defined herein (including in the preamble hereto) have the meanings assigned to them in the Credit Agreement. 

     SECTION 2. Amendment of Section 6.11. Section 6.11 of the Credit Agreement is hereby amended in its entirety to read as follows: 

               “SECTION 6.11. Consolidated Net Worth. The Company will not at any time permit Consolidated Net Worth to be less than the sum at such time of (a) US$4,500,000,000 and (b) commencing with the fiscal quarter beginning on January 1, 2007, 50% of the Company’s Consolidated Net Income for each fiscal quarter of the Company for which Consolidated Net Income is positive and for which financial statements shall have been delivered under Section 5.01(a) or (b).” 

     SECTION 3. Representations, Warranties and Agreements. The Company, as to itself and each of the Subsidiaries, hereby represents and warrants to and agrees with each Lender and the Agents that: 

	2

     (a) The representations and warranties set forth in Article III of the Credit Agreement, as amended hereby, are true and correct in all material respects on and as of the Amendment Effective Date (as defined below) and after giving effect to this Amendment, with the same effect as if made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case they were true and correct as of such earlier date. 

     (b) As of the Amendment Effective Date, after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing. 

     SECTION 4. Effectiveness. This Amendment shall become effective as of the date (the “Amendment Effective Date”) on which the Administrative Agent shall have received duly executed counterparts hereof that, when taken together, bear the authorized signatures of the Company and Lenders constituting at least the Required Lenders. 

     SECTION 5. Credit Agreement. Except as specifically stated herein, the Credit Agreement shall continue in full force and effect in accordance with the provisions thereof. As used therein, the terms “Agreement”, “herein”, “hereunder”, “hereto”, “hereof” and words of similar import shall, unless the context otherwise requires, refer to the Credit Agreement as modified hereby. 

     SECTION 6. Applicable Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 

     SECTION 7. Counterparts. This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which, when taken together, shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy shall be effective as delivery of a manually executed counterpart hereof. 

     SECTION 8. Expenses. The Company agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment, including the reasonable fees, charges and disbursements of Cravath, Swaine & Moore LLP, counsel for the Administrative Agent.

	3

     IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed by their respective authorized officers as of the date first above written.

	EXPEDIA, INC., a Delaware corporation,
	 
	by: /s/ Bret Myers                          
	         Name: Bret Myers
	         Title: Vice President and Treasurer
	 
	 
	JPMORGAN CHASE BANK, N.A., individually
	and as Administrative Agent,
	 
	by: /s/ Peter B. Thauer                    
	         Name: Peter B. Thauer
	         Title: Vice President

	To approve the Second Amendment to the Expedia, Inc. Credit Agreement:
	 
	Name of Institution:
	Fifth Third Bank

	by:	 	/s/ Gary S. Losey                    
	 	 	Name: Gary S. Losey
	 	 	Title: Vice President
	 
	by:	 	_______________________1
	 	 	Name:
	 	 	Title:
	 
	1	 	For any institution requiring a second signature line.

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	Wachovia Bank, N.A.
	 
	by:	 	/s/ Scott Suddreth                    
	 	 	Name: Scott Suddreth
	 	 	Title: Vice President

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	The Royal Bank of Scotland, plc
	 
	by:	 	/s/ William McGinty                    
	 	 	Name: William McGinty
	 	 	Title: Senior Vice President

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	Bank of America, N.A.
	 
	by:	 	/s/ John Margetanski        
	 	 	Name: John Margetanski
	 	 	Title: Vice President
	 
	by:	 	____________________1
	 	 	Name:
	 	 	Title:
	 
	1	 	For any institution requiring a second signature line.

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	U.S. BANK NATIONAL ASSOCIATION
	 
	by:	 	/s/ Kurban H. Merchant                     
	 	 	Name: Kurban H. Merchant
	 	 	Title: Vice President

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:	 
	BNP Paribas	 
	 
	by:	 	/s/ Nuala Marley                   	 
	 	 	Name: Nuala Marley	 
	 	 	Title: Managing Director	 
	 
	by:	 	/s/ Nanette Baudon               1
	 	 	Name: Nanette Baudon	 
	 	 	Title: Vice President	 
	 
	1	 	     For any institution requiring a second signature line.

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	Societe Generale
	 
	by:	 	/s/ Nigel Elvey                      
	 	 	Name: Nigel Elvey
	 	 	Title: Vice President

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	BARCLAYS BANK PLC
	 
	by:	 	/s/ David Barton                    
			Name: David Barton
	 	 	Title: Associate Director

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	Sumitomo Mitsui Banking Corporation
	 
	by:	 	/s/ Leo E. Pagarigan          
	 	 	Name: Leo E. Pagarigan
	 	 	Title: Joint General Manager
	 
	by:	 	____________________1
	 	 	Name:
	 	 	Title:
	 
	1	 	     For any institution requiring a second signature line.

To approve the Second Amendment to the Expedia, Inc. Credit Agreement: 

	Name of Institution: 
	HSBC Bank USA, National Association 
	  
	by: 	  	/s/ Darren Pinsker                    
	  	  	Name: Darren Pinsker  
			Title: Senior Vice President 

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	 	Name of Institution: 

Mizuho Corporate Bank, Ltd.

	by:	 	/s/ Leon Mo                                           
	 	 	Name: Leon Mo
	 	 	Title: Senior Vice President
	 
	by:	 	____________________1
	 	 	Name:
	 	 	Title:
	 
	1	 	     For any institution requiring a second signature line.

To approve the Second Amendment to the Expedia, Inc. Credit Agreement:

	Name of Institution:
	United Overseas Bank Limited, New York Agency
	 
	by:	 	/s/ George Lim                     
	 	 	Name: George Lim
	 	 	Title: FVP and General Manager
	 
	by:	 	/s/ Mario Sheng                   
	 	 	Name: Mario Sheng
	 	 	Title: AVP[BARCLAYS CAPITAL LOGO]

                                                         Barclay Capital
                                                         5 The North Colonnade
                                                         Canary Wharf
                                                         London E14 4BB

                                                         Tel +44 (0)20 7623 2323

To:         Wells Fargo Bank, N.A., not individually but solely as trustee for
            BCAP 2006-RR1 (the "Counterparty" or "Party B")
Attn:       Client Manager - BCAP 2006-RR1
Tel No:     (410) 884-2000
From:       BARCLAYS BANK PLC (LONDON HEAD OFFICE) ("Barclays" or "Party A")
Date:       November 30, 2006
Reference:  1475807B/1475808B

The purpose of this Confirmation is to confirm the terms and conditions of the
Transaction entered into between us on the Trade Date specified below (the
"Transaction").

The definitions and provisions contained in the 2000 ISDA Definitions (the "2000
Definitions"), as published by the International Swaps and Derivatives
Association, Inc. ("ISDA") are incorporated into this Confirmation. In the event
of any inconsistency between the 2000 Definitions and this Confirmation, this
Confirmation will govern for the purposes of the Transaction. References herein
to a "Transaction" shall be deemed to be references to a "Swap Transaction" for
the purposes of the 2000 Definitions. Capitalized terms used in this
Confirmation and not defined in this Confirmation or the 2000 Definitions shall
have the respective meaning assigned in the Agreement (as defined below). Terms
capitalized but not defined in this Confirmation, the 2000 Definitions or the
Agreement shall have the meanings attributed to them in the Trust Agreement
dated as of November 30, 2006 (the "Trust Agreement") among BCAP LLC, as
depositor and Wells Fargo Bank, N.A., as trustee. Each party hereto agrees to
make payment to the other party hereto in accordance with the provisions of this
Confirmation and of the Agreement. In this Confirmation, "Party A" means
Barclays and "Party B" means the Counterparty.

This Confirmation evidences a complete and binding agreement between you and us
as to the terms of the Transaction to which this Confirmation relates. This
Confirmation (including the schedule hereto) will constitute a Confirmation that
supplements, forms a part of, and is subject to, an agreement (the "Agreement")
in the form of the 1992 Multicurrency - Cross Border Master Agreement in the
form published by the International Swaps and Derivatives Association, Inc. (the
"ISDA Form"), as if on the Trade Date we had executed an agreement in such form,
but without any Schedule except for the elections made herein.
In the event of any inconsistency between the provisions of the ISDA Form and
this Confirmation, this Confirmation will prevail for purposes of this
Transaction.

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

--------------------------------------------------------------------------------
2.                                           TRADE DETAILS
--------------------------------------------------------------------------------
Notional Amount:                            The amount set forth for such period
                                            in Schedule A attached hereto.
--------------------------------------------------------------------------------
Trade Date:                                 November 30, 2006.
--------------------------------------------------------------------------------
Effective Date:                             December 25, 2006.
--------------------------------------------------------------------------------
Termination Date:                           March 25, 2032
--------------------------------------------------------------------------------
Fixed Amounts:
--------------------------------------------------------------------------------
        Fixed Rate Payer:                   Counterparty.

        Fixed Rate Payer Payment Date(s):   November 30, 2006; subject to
                                            adjustment in accordance with the
                                            Following Business Day Convention.

        Fixed Amount:                       USD675,000; provided that the
                                            payment of the Fixed Amount to
                                            Barclays has been made on behalf of
                                            the Counterparty by Barclays Capital
                                            Inc. from the proceeds of the sale
                                            of the Certificates.
--------------------------------------------------------------------------------
Floating Amounts:                           To be determined in accordance with
                                            the following formula:

                                            Greater of (i) (Floating Rate minus
                                            Cap Rate) * Notional Amount *
                                            Floating Rate Day Count Fraction,
                                            and (ii) zero.
--------------------------------------------------------------------------------
        Floating Rate Payer:                Barclays.

        Cap Rate                            4.36%

        Floating Rate Payer Period End      The 25th of each month in each year
        Date(s):                            from (and including) January 25,
                                            2007 to (and including) the
                                            Termination Date with no adjustment
                                            to Period End Dates.

        Floating Rate Option.               USD-LIBOR-BBA, provided, however,
                                            that if the Floating Rate determined
                                            from such Floating Rate Option for
                                            any Calculation Period is greater
                                            than 9.86% per annum for such
                                            Calculation Period, then the
                                            Floating Rate for such Calculation
                                            Period shall be deemed to be equal
                                            to 9.86% per annum.

        Floating Rate Day Count Fraction:   30 / 360.

        Designated Maturity:                1 Month.
--------------------------------------------------------------------------------
        Reset Dates:                        The first day of each Calculation
                                            Period.
--------------------------------------------------------------------------------
        Early Payment:                      Applicable. The Floating Rate Payer
                                            Payment Date shall be the first
                                            Business Day prior to each related
                                            Floating Rate Payer Period End
                                            Date.
--------------------------------------------------------------------------------
Business Days:                              New York.
--------------------------------------------------------------------------------
3.                                          ACCOUNT DETAILS
--------------------------------------------------------------------------------
Payments to Barclays:                       Correspondent: BARCLAYS BANK PLC NEW
                                            YORK
                                            FEED: 026002574
                                            Beneficiary: BARCLAYS SWAPS
                                            Beneficiary Account: 050-01922-8
--------------------------------------------------------------------------------
Payments to Counterparty:                   Wells Fargo Bank, N.A.
                                            New York, NY
                                            ABA: 121000248
                                            Account No: 3970771416
                                            FFC: 17214200
                                            REF: BCAP 2006-RR1 Cap Account
--------------------------------------------------------------------------------
4.                                          OFFICES
--------------------------------------------------------------------------------
Barclays:                                   Address for Notices:
                                            5 The North Colonnade
                                            Canary Wharf
                                            E14 4 BB
                                            Tel: 44(20) 7773 6461
                                            Fax: 44(20) 777 36810
--------------------------------------------------------------------------------
Counterparty:                               Address for Notices:
                                            Wells Fargo Bank, N.A.
                                            9062 Old Annapolis Road
                                            Columbia, Maryland 21045
                                            Attention: Client Manager - BCAP
                                            2006-RR1
--------------------------------------------------------------------------------

5. Provisions Deemed Incorporated into this Agreement:

The following provisions (i) through (vii) will be deemed to be incorporated
into the Agreement:

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

    ii) Termination Provisions. For purposes of the Agreement:

        (a) "Specified Entity" means in relation to Party A for the purpose of
            the Agreement:

            Section 5(a)(v): None;
            Section 5(a)(vi): None;
            Section 5(a)(vii): None;
            Section 5(b)(iv): None;

            and in relation to Party B for the purpose of this Agreement:

            Section 5(a)(v): None;
            Section 5(a)(vi): None;
            Section 5(a)(vii): None;
            Section 5(b)(iv): None.

        (b) "Specified Transaction" shall be inapplicable to Party A and Party
            B.

        (c) The "Breach of Agreement" provisions of Section 5(a)(ii) of the
            Agreement will be inapplicable to Party A and Party B.

        (d) The "Credit Support Default" provisions of Section 5(a)(iii) of the
            Agreement will be inapplicable to Party A and Party B.

        (e) The "Misrepresentation" provisions of Section 5(a)(iv) of the
            Agreement will be inapplicable to Party A and Party B.

        (f) The "Default Under Specified Transaction" provisions of Section
            5(a)(v) of the Agreement will be inapplicable to Party A and Party
            B.

        (g) The "Cross Default" provisions of Section 5(a)(vi) of the Agreement
            will be inapplicable to Party A and Party B.

        (h) The "Credit Event Upon Merger" provisions of Section 5(b)(iv) of the
            Agreement will be inapplicable to Party A and Party B.

        (i) The "Bankruptcy" provision of Section 5(a)(vii)(2) will not apply to
            Party B.

        (j) The "Automatic Early Termination" provision of Section 6(a) of the
            Agreement will be inapplicable to Party A and Party B.

        (k) Payments on Early Termination. For the purpose of Section 6(e) of
            the Agreement:

            (i) Market Quotation will apply.

            (ii) The Second Method will apply.

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

    iii) Tax Representations.

        Payer Tax Representations. For the purpose of Section 3(e), each of
        Barclays and the Counterparty 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
            representation 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) by reason of material prejudice to
            its legal or commercial position.

        Barclays Payee Tax Representations. For the purpose of Section 3(f),
        Barclays makes the following representations:

            With respect to payments made to Barclays which are not effectively
            connected to the U.S.: It is a non-U.S. branch of a foreign person
            for U.S. federal income tax purposes.

            With respect to payments made to Barclays which are effectively
            connected to the U.S.: Each payment received or to be received by it
            in connection with this Agreement will be effectively connected with
            its conduct of a trade or business in the U.S.

        Counterparty Payee Tax Representations. For the purpose of Section 3(f),
        Counterparty makes the following representation:

            Counterparty represents that it is a "United States person" as such
            term is defined in Section 7701(a)(30) of the Internal Revenue Code
            of 1986, as amended.

    iv) Documents to be Delivered. For the purpose of Section 4(a):

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

Party required to deliver     Form/Document/Certificate     Date by which to be
document                                                    delivered
--------------------------------------------------------------------------------
Barclays and Counterparty    Any document required or      Promptly after the
                             reasonably requested to       earlier of (i)
                             allow the other party to      reasonable demand by
                             make payments under this      either party or (ii)
                             Agreement without any         within 30 days of the
                             deduction or withholding      Closing Date.
                             for or on the account of
                             any Tax or with such
                             deduction or withholding
                             at a reduced rate.

        (b) Other Documents to be delivered are:

Party required to    Form/Document/Certificate    Date by which   Covered by
deliver document                                  to be           Section 3(d)
                                                  delivered       representation
--------------------------------------------------------------------------------
Barclays and the     Any documents required or        Closing Date.     Yes
Counterparty         reasonably requested by the
                     receiving party to evidence
                     authority of the delivering
                     party or its Credit Support
                     Provider, if any, to execute
                     and deliver this Agreement,
                     any Confirmation, and any
                     Credit Support Documents to
                     which it is a party, and to
                     evidence the authority of the
                     delivering party to its
                     Credit Support Provider to
                     perform its obligations under
                     this Agreement, such Confirmation
                     and/or Credit Support
                     Document, as the case may be.
--------------------------------------------------------------------------------
Barclays and the     A certificate of an authorized    Closing Date      Yes
Counterparty         officer of the party, as to the
                     incumbency and authority of the
                     respective officers of the party
                     signing this agreement, any
                     relevant Credit Support Document,
                     or any Confirmation, as the case
                     may be.
--------------------------------------------------------------------------------

      v)    Miscellaneous.

      (a)   [RESERVED]

      (b)   Process Agent. For the purpose of Section 13(c):

            Barclays appoints as its Process Agent: Barclays Bank PLC, New York
            Branch.

            Counterparty appoints as its Process Agent: Not Applicable.

      (c)   Offices. The provisions of Section 10(a) will apply to this
            Agreement.

      (d)   Multibranch Party. For the purpose of Section 10(c) of this
            Agreement:

                  Barclays is a Multibranch Party and may act through its London
                  and New York offices.

                  Counterparty is not a Multibranch Party.

      (e)   Calculation Agent. The Calculation Agent is Barclays; provided,
            however, that if an Event of Default occurs with respect to
            Barclays, then the Counterparty shall be entitled to appoint a
            financial institution which would qualify as a Reference
            Market-maker to act as Calculation Agent.

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

      (g)   Credit Support Provider.

            With respect to Barclays: Not Applicable.

            With respect to Counterparty: Not Applicable.

      (h)   Governing Law. This Agreement shall be governed by, and construed in
            accordance with the laws of the State of New York (without reference
            to choice of law doctrine except Section 5-1401 and Section 5-1402
            of the New York General Obligation Law).

      (i)   Consent to Recording. Each party hereto consents and agrees to the
            monitoring or recording, at any time and from time to time, by the
            other party of any and all communications between officers or
            employees of the parties, waives any further notice of such
            monitoring or recording, and agrees to notify its officers and
            employees of such monitoring or recording.

      (j)   Waiver of Jury Trial. To the extent permitted by applicable law,
            each party irrevocably waives any and all right to trial by jury in
            any legal proceeding in connection with this Agreement, any Credit
            Support Document to which it is a Party, or any Transaction. Each
            party also acknowledges that this waiver is a material inducement to
            the other party's entering into this Agreement.

      (k)   "Affiliate" Counterparty shall be deemed to not have any Affiliates
            for purposes of this Agreement.

      (l)   Severability. If any term, provision, covenant, or condition of this
            Agreement, or the application thereof to any party or circumstance,
            shall be held to be invalid or unenforceable (in whole or in part)
            for any reason, the remaining terms, provisions, covenants, and
            conditions hereof shall continue in full force and effect as if this
            Agreement had been executed with the invalid or unenforceable
            portion eliminated, so long as this Agreement as so modified
            continues to express, without material change, the original
            intentions of the parties as to the subject matter of this Agreement
            and the deletion of such portion of this Agreement will not
            substantially impair the respective benefits or expectations of the
            parties.

            The parties shall endeavor to engage in good faith negotiations to
            replace any invalid or unenforceable term, provision, covenant or
            condition with a valid or enforceable term, provision, covenant or
            condition, the economic effect of which comes as close as possible
            to that of the invalid or unenforceable term, provision, covenant or
            condition

      vi)   Additional Representations:

            Each party represents to the other party that (absent a written
            agreement between the parties that expressly imposes affirmative
            obligations to the contrary):-

            (a)   Non-Reliance. It is acting for its own account, and it has
                  made its own independent decisions to enter into the
                  Transaction and as to whether the Transaction is appropriate
                  or proper 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 the
                  Transaction: it being understood that information and
                  explanations related to the terms and conditions of the
                  Transaction shall not be considered investment advice or a
                  recommendation to enter into the 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 the Transaction.

            (b)   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 the Transaction. It is also
                  capable of assuming, and assumes, the risks of the
                  Transaction.

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

            (d)   Purpose. It is entering into the Transaction for the purposes
                  of hedging its assets or liabilities or in connection with a
                  line of business.

            (e)   Eligible Contract Participant Representation. It is an
                  "eligible contract participant" within the meaning of Section
                  1(a)(12) of the Commodity Exchange Act, as amended, including
                  as amended by the Commodity Futures Modernization Act of 2000.

      vii)  Other Provisions.

            (a)   Fully-Paid Party Protected. Notwithstanding the terms of
                  Sections 5 and 6 of the Agreement if Party B has satisfied in
                  full all of its payment obligations under Section 2(a)(i) of
                  the Agreement, then unless Party A is required pursuant to
                  appropriate proceedings to return to Party B or otherwise
                  returns to Party B upon demand of Party B any portion of such
                  payment, (a) the occurrence of an event described in Section
                  5(a) of the Agreement with respect to Party B shall not
                  constitute an Event of Default or Potential Event of Default
                  with respect to Party B as the Defaulting Party and (b) Party
                  A shall be entitled to designate an Early Termination Event
                  pursuant to Section 6 of the Agreement only as a result of a
                  Termination Event set forth in either Section 5(b)(i) or
                  Section 5(b)(ii) of the Agreement with respect to Party A as
                  the Affected Party or Section 5(b)(iii) of the Agreement with
                  respect to Party A as the Burdened Party. For purposes of the
                  Transaction to which this Confirmation relates, Party B's only
                  obligation under Section 2(a)(i) of the Agreement is to pay
                  the Fixed Amount on the Fixed Rate Payer Payment Date.

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

            (c)   Proceedings. Party A shall not institute against or cause any
                  other person to institute against, or join any other person in
                  instituting against, the Trust, any bankruptcy,
                  reorganization, arrangement, insolvency or liquidation
                  proceedings, or other proceedings under any federal or state
                  bankruptcy, dissolution or similar law, for a period of one
                  year and one day (or, if longer, the applicable preference
                  period) following indefeasible payment in full of the
                  Certificates; provided, however, that nothing will preclude,
                  or be deemed to stop, Party A (i) from taking any action prior
                  to the expiration of the aforementioned one year and one day
                  period, or if longer the applicable preference period then in
                  effect, in (A) any case or proceeding voluntarily filed or
                  commenced by Party B or (B) any involuntary insolvency
                  proceeding filed or commenced by a Person other than Party A,
                  or (ii) from commencing against Party B or any of the
                  Collateral any legal action which is not a bankruptcy,
                  reorganization, arrangement, insolvency, moratorium,
                  liquidation or similar proceeding.

            (d)   Limitation on Liability: Barclays and Counterparty agree to
                  the following: (a) the sole recourse in respect of the
                  obligations of Counterparty hereunder shall be to the Trust
                  Fund (as defined in the Trust Agreement), (b)Wells Fargo Bank,
                  N.A. is entering into this Agreement solely in its capacity as
                  trustee of the Trust and not in its individual capacity under
                  the Trust Agreement and (c) in no case shall Wells Fargo Bank,
                  N.A. (or any person acting as successor trustee under the
                  Trust Agreement) be personally liable for or on account of any
                  of the statements, representations, warranties, covenants or
                  obligations stated to be those of the Counterparty under the
                  terms of this Confirmation, all such liability, if any, being
                  expressly waived by Barclays and any person claiming by,
                  through or under Barclays.

The time of dealing will be confirmed by Barclays upon written request. Barclays
is regulated by the Financial Services Authority. Barclays is acting for its own
account in respect of this Transaction.

Please confirm that the foregoing correctly sets forth all the terms and
conditions of our agreement with respect to the Transaction by responding within
three (3) Business Days by promptly signing in the space provided below and both
(i) faxing the signed copy to Incoming Transaction Documentation, Barclays
Capital Global OTC Transaction Documentation & Management, Global Operations,
Fax +(44) 20-7773-6810/6857, Tel +(44) 20-7773-6901/6904/6965, and (ii) mailing
the signed copy to Barclays Bank PLC, 5 The North Colonnade, Canary Wharf,
London E14 4BB, Attention of Incoming Transaction Documentation, Barclays
Capital Global OTC Transaction Documentation & Management, Global Operation.
Your failure to respond within such period shall not affect the validity or
enforceability of the Transaction against you. This facsimile shall be the only
documentation in respect of the Transaction and accordingly no hard copy
versions of this Confirmation for this Transaction shall be provided unless the
Counterparty requests.

For and on behalf of                         For and on behalf of
BARCLAYS BANK PLC                            WELLS FARGO BANK, N.A., NOT
                                             INDIVIDUALLY BUT SOLELY AS TRUSTEE
                                             FOR BCAP 2006-RR1
--------------------------------------------------------------------------------

/s/ Andrew Douglas                           /s/ Carla S. Walker
------------------                           -------------------
Name:  Andrew Douglas                         Name:  Carla S. Walker
Title: Authorised Signatory                   Title: Vice President
Date:  November 30, 2006                      Date:  November 30, 2006

Barclays Bank PLC and its Affiliates, including Barclays Capital Inc., may share
with each other information, including non-public credit information, concerning
its clients and prospective clients. If you do not want such information to be
shared, you must write to the Director of Compliance, Barclays Bank PLC, 200
Park Avenue, New York, NY 10166.

<PAGE>

Schedule A to the Confirmation dated as of November 30, 2006
Re: Reference Number: 1475807B/1475808B

   Period Start Date        Period End Date          Notional Amount
       2006-12-25              2007-01-25             25,000,000.00
       2007-01-25              2007-02-25             25,000,000.00
       2007-02-25              2007-03-25             25,000,000.00
       2007-03-25              2007-04-25             25,000,000.00
       2007-04-25              2007-05-25             25,000,000.00
       2007-05-25              2007-06-25             25,000,000.00
       2007-06-25              2007-07-25             25,000,000.00
       2007-07-25              2007-08-25             25,000,000.00
       2007-08-25              2007-09-25             25,000,000.00
       2007-09-25              2007-10-25             25,000,000.00
       2007-10-25              2007-11-25             25,000,000.00
       2007-11-25              2007-12-25             25,000,000.00
       2007-12-25              2008-01-25             25,000,000.00
       2008-01-25              2008-02-25             25,000,000.00
       2008-02-25              2008-03-25             25,000,000.00
       2008-03-25              2008-04-25             25,000,000.00
       2008-04-25              2008-05-25             25,000,000.00
       2008-05-25              2008-06-25             25,000,000.00
       2008-06-25              2008-07-25             25,000,000.00
       2008-07-25              2008-08-25             25,000,000.00
       2008-08-25              2008-09-25             25,000,000.00
       2008-09-25              2008-10-25             25,000,000.00
       2008-10-25              2008-11-25             25,000,000.00
       2008-11-25              2008-12-25             25,000,000.00
       2008-12-25              2009-01-25             11,799,834.49
       2009-01-25              2009-02-25             11,415,882.31
       2009-02-25              2009-03-25             11,042,245.09
       2009-03-25              2009-04-25             10,678,745.35
       2009-04-25              2009-05-25             10,325,204.53
       2009-05-25              2009-06-25              9,981,446.93
       2009-06-25              2009-07-25              9,647,299.61
       2009-07-25              2009-08-25              9,322,592.40
       2009-08-25              2009-09-25              9,007,157.85
       2009-09-25              2009-10-25              8,700,831.16
       2009-10-25              2009-11-25              8,403,450.16
       2009-11-25              2009-12-25              8,114,855.28
       2009-12-25              2010-01-25              7,834,889.47
       2010-01-25              2010-02-25              7,563,398.22
       2010-02-25              2010-03-25              7,300,229.46
       2010-03-25              2010-04-25              7,045,233.59
       2010-04-25              2010-05-25              6,798,263.34
       2010-05-25              2010-06-25              6,559,173.87
       2010-06-25              2010-07-25              6,327,822.61
       2010-07-25              2010-08-25              6,104,069.29
       2010-08-25              2010-09-25              5,887,775.88
       2010-09-25              2010-10-25              5,678,806.60
       2010-10-25              2010-11-25              5,477,027.81
       2010-11-25              2010-12-25              5,282,308.02
       2010-12-25              2011-01-25              5,094,517.90
       2011-01-25              2011-02-25              4,913,530.14
       2011-02-25              2011-03-25              4,739,219.51
       2011-03-25              2011-04-25              4,571,462.81
       2011-04-25              2011-05-25              4,410,138.79
       2011-05-25              2011-06-25              4,255,128.20
       2011-06-25              2011-07-25              4,106,313.68
       2011-07-25              2011-08-25              3,963,579.78
       2011-08-25              2011-09-25              3,826,812.92
       2011-09-25              2011-10-25              3,695,901.35
       2011-10-25              2011-11-25              3,570,735.13
       2011-11-25              2011-12-25              3,455,960.65
       2011-12-25              2012-01-25              3,346,672.37
       2012-01-25              2012-02-25              3,242,765.78
       2012-02-25              2012-03-25              3,144,138.07
       2012-03-25              2012-04-25              3,050,688.11
       2012-04-25              2012-05-25              2,962,316.41
       2012-05-25              2012-06-25              2,878,925.11
       2012-06-25              2012-07-25              2,800,417.93
       2012-07-25              2012-08-25              2,726,700.18
       2012-08-25              2012-09-25              2,657,678.71
       2012-09-25              2012-10-25              2,593,261.90
       2012-10-25              2012-11-25              2,533,359.60
       2012-11-25              2012-12-25              2,479,326.00
       2012-12-25              2013-01-25              2,429,605.30
       2013-01-25              2013-02-25              2,384,111.99
       2013-02-25              2013-03-25              2,342,761.94
       2013-03-25              2013-04-25              2,305,472.45
       2013-04-25              2013-05-25              2,272,162.15
       2013-05-25              2013-06-25              2,242,751.01
       2013-06-25              2013-07-25              2,217,160.34
       2013-07-25              2013-08-25              2,195,312.74
       2013-08-25              2013-09-25              2,177,132.09
       2013-09-25              2013-10-25              2,162,543.53
       2013-10-25              2013-11-25              2,149,406.16
       2013-11-25              2013-12-25              2,135,658.39
       2013-12-25              2014-01-25              2,121,677.32
       2014-01-25              2014-02-25              2,107,474.83
       2014-02-25              2014-03-25              2,093,062.45
       2014-03-25              2014-04-25              2,078,451.42
       2014-04-25              2014-05-25              2,063,652.65
       2014-05-25              2014-06-25              2,048,676.76
       2014-06-25              2014-07-25              2,033,534.07
       2014-07-25              2014-08-25              2,018,234.60
       2014-08-25              2014-09-25              2,002,788.09
       2014-09-25              2014-10-25              1,987,204.02
       2014-10-25              2014-11-25              1,971,491.58
       2014-11-25              2014-12-25              1,955,393.59
       2014-12-25              2015-01-25              1,939,199.48
       2015-01-25              2015-02-25              1,922,917.27
       2015-02-25              2015-03-25              1,906,554.70
       2015-03-25              2015-04-25              1,890,119.29
       2015-04-25              2015-05-25              1,873,618.35
       2015-05-25              2015-06-25              1,857,058.96
       2015-06-25              2015-07-25              1,840,447.97
       2015-07-25              2015-08-25              1,823,792.03
       2015-08-25              2015-09-25              1,807,097.60
       2015-09-25              2015-10-25              1,790,370.91
       2015-10-25              2015-11-25              1,773,618.03
       2015-11-25              2015-12-25              1,756,666.91
       2015-12-25              2016-01-25              1,739,715.22
       2016-01-25              2016-02-25              1,722,767.92
       2016-02-25              2016-03-25              1,705,693.71
       2016-03-25              2016-04-25              1,688,634.51
       2016-04-25              2016-05-25              1,671,594.81
       2016-05-25              2016-06-25              1,654,578.96
       2016-06-25              2016-07-25              1,637,591.15
       2016-07-25              2016-08-25              1,620,635.44
       2016-08-25              2016-09-25              1,603,715.73
       2016-09-25              2016-10-25              1,586,834.83
       2016-10-25              2016-11-25              1,569,997.35
       2016-11-25              2016-12-25              1,553,206.80
       2016-12-25              2017-01-25              1,536,466.57
       2017-01-25              2017-02-25              1,519,779.89
       2017-02-25              2017-03-25              1,503,149.93
       2017-03-25              2017-04-25              1,486,579.68
       2017-04-25              2017-05-25              1,470,072.06
       2017-05-25              2017-06-25              1,453,629.84
       2017-06-25              2017-07-25              1,437,255.72
       2017-07-25              2017-08-25              1,420,952.26
       2017-08-25              2017-09-25              1,404,721.94
       2017-09-25              2017-10-25              1,388,567.13
       2017-10-25              2017-11-25              1,372,490.10
       2017-11-25              2017-12-25              1,356,493.01
       2017-12-25              2018-01-25              1,340,577.96
       2018-01-25              2018-02-25              1,324,746.92
       2018-02-25              2018-03-25              1,309,001.82
       2018-03-25              2018-04-25              1,293,344.45
       2018-04-25              2018-05-25              1,277,776.56
       2018-05-25              2018-06-25              1,262,299.79
       2018-06-25              2018-07-25              1,246,915.70
       2018-07-25              2018-08-25              1,231,625.80
       2018-08-25              2018-09-25              1,216,431.51
       2018-09-25              2018-10-25              1,201,334.16
       2018-10-25              2018-11-25              1,186,335.03
       2018-11-25              2018-12-25              1,171,435.32
       2018-12-25              2019-01-25              1,156,636.17
       2019-01-25              2019-02-25              1,141,938.65
       2019-02-25              2019-03-25              1,127,343.76
       2019-03-25              2019-04-25              1,112,852.46
       2019-04-25              2019-05-25              1,098,465.62
       2019-05-25              2019-06-25              1,084,184.08
       2019-06-25              2019-07-25              1,070,008.59
       2019-07-25              2019-08-25              1,055,939.88
       2019-08-25              2019-09-25              1,041,978.61
       2019-09-25              2019-10-25              1,028,125.38
       2019-10-25              2019-11-25              1,014,380.76
       2019-11-25              2019-12-25              1,000,745.24
       2019-12-25              2020-01-25               987,219.29
       2020-01-25              2020-02-25               973,803.33
       2020-02-25              2020-03-25               960,497.72
       2020-03-25              2020-04-25               947,302.80
       2020-04-25              2020-05-25               934,218.84
       2020-05-25              2020-06-25               921,246.10
       2020-06-25              2020-07-25               908,384.76
       2020-07-25              2020-08-25               895,635.00
       2020-08-25              2020-09-25               882,996.95
       2020-09-25              2020-10-25               870,470.69
       2020-10-25              2020-11-25               858,056.29
       2020-11-25              2020-12-25               845,753.76
       2020-12-25              2021-01-25               833,563.09
       2021-01-25              2021-02-25               821,358.24
       2021-02-25              2021-03-25               809,267.03
       2021-03-25              2021-04-25               797,289.35
       2021-04-25              2021-05-25               785,425.07
       2021-05-25              2021-06-25               773,674.00
       2021-06-25              2021-07-25               762,035.96
       2021-07-25              2021-08-25               750,510.73
       2021-08-25              2021-09-25               739,098.05
       2021-09-25              2021-10-25               727,797.65
       2021-10-25              2021-11-25               716,609.25
       2021-11-25              2021-12-25               705,532.52
       2021-12-25              2022-01-25               694,567.13
       2022-01-25              2022-02-25               683,712.70
       2022-02-25              2022-03-25               672,968.86
       2022-03-25              2022-04-25               662,335.22
       2022-04-25              2022-05-25               651,811.34
       2022-05-25              2022-06-25               641,396.80
       2022-06-25              2022-07-25               631,091.14
       2022-07-25              2022-08-25               620,893.89
       2022-08-25              2022-09-25               610,804.55
       2022-09-25              2022-10-25               600,822.64
       2022-10-25              2022-11-25               590,947.62
       2022-11-25              2022-12-25               581,178.97
       2022-12-25              2023-01-25               571,516.15
       2023-01-25              2023-02-25               561,958.58
       2023-02-25              2023-03-25               552,505.72
       2023-03-25              2023-04-25               543,156.97
       2023-04-25              2023-05-25               533,911.73
       2023-05-25              2023-06-25               524,769.42
       2023-06-25              2023-07-25               515,729.40
       2023-07-25              2023-08-25               506,791.06
       2023-08-25              2023-09-25               497,953.76
       2023-09-25              2023-10-25               489,216.87
       2023-10-25              2023-11-25               480,583.96
       2023-11-25              2023-12-25               472,050.06
       2023-12-25              2024-01-25               463,614.52
       2024-01-25              2024-02-25               455,276.66
       2024-02-25              2024-03-25               447,035.81
       2024-03-25              2024-04-25               438,891.27
       2024-04-25              2024-05-25               430,842.35
       2024-05-25              2024-06-25               422,888.38
       2024-06-25              2024-07-25               415,028.63
       2024-07-25              2024-08-25               407,282.67
       2024-08-25              2024-09-25               399,629.18
       2024-09-25              2024-10-25               392,067.43
       2024-10-25              2024-11-25               384,596.72
       2024-11-25              2024-12-25               377,216.32
       2024-12-25              2025-01-25               369,925.52
       2025-01-25              2025-02-25               362,723.58
       2025-02-25              2025-03-25               355,609.80
       2025-03-25              2025-04-25               348,583.43
       2025-04-25              2025-05-25               341,643.75
       2025-05-25              2025-06-25               334,790.03
       2025-06-25              2025-07-25               328,021.54
       2025-07-25              2025-08-25               321,337.53
       2025-08-25              2025-09-25               314,737.28
       2025-09-25              2025-10-25               308,220.05
       2025-10-25              2025-11-25               301,785.10
       2025-11-25              2025-12-25               295,431.70
       2025-12-25              2026-01-25               289,159.11
       2026-01-25              2026-02-25               282,966.59
       2026-02-25              2026-03-25               276,853.42
       2026-03-25              2026-04-25               270,818.84
       2026-04-25              2026-05-25               264,862.13
       2026-05-25              2026-06-25               258,982.56
       2026-06-25              2026-07-25               253,179.39
       2026-07-25              2026-08-25               247,451.89
       2026-08-25              2026-09-25               241,799.32
       2026-09-25              2026-10-25               236,220.97
       2026-10-25              2026-11-25               230,716.11
       2026-11-25              2026-12-25               225,284.01
       2026-12-25              2027-01-25               219,923.95
       2027-01-25              2027-02-25               214,635.20
       2027-02-25              2027-03-25               209,417.05
       2027-03-25              2027-04-25               204,268.79
       2027-04-25              2027-05-25               199,189.69
       2027-05-25              2027-06-25               194,179.06
       2027-06-25              2027-07-25               189,236.17
       2027-07-25              2027-08-25               184,360.34
       2027-08-25              2027-09-25               179,550.85
       2027-09-25              2027-10-25               174,807.00
       2027-10-25              2027-1125                170,128.10
       2027-11-25              2027-12-25               165,513.46
       2027-12-25              2028-01-25               160,962.39
       2028-01-25              2028-02-25               156,474.20
       2028-02-25              2028-03-25               152,048.20
       2028-03-25              2028-04-25               147,683.73
       2028-04-25              2028-05-25               143,380.11
       2028-05-25              2028-06-25               139,136.66
       2028-06-25              2028-07-25               134,953.39
       2028-07-25              2028-08-25               130,828.94
       2028-08-25              2028-09-25               126,762.67
       2028-09-25              2028-10-25               122,753.91
       2028-10-25              2028-11-25               118,802.01
       2028-11-25              2028-12-25               114,906.33
       2028-12-25              2029-01-25               111,066.22
       2029-01-25              2029-02-25               107,281.04
       2029-02-25              2029-03-25               103,550.16
       2029-03-25              2029-04-25               99,872.95
       2029-04-25              2029-05-25               96,248.78
       2029-05-25              2029-06-25               92,677.02
       2029-06-25              2029-07-25               89,157.07
       2029-07-25              2029-08-25               85,688.30
       2029-08-25              2029-09-25               82,270.11
       2029-09-25              2029-10-25               78,901.89
       2029-10-25              2029-11-25               75,583.04
       2029-11-25              2029-12-25               72,312.97
       2029-12-25              2030-01-25               69,091.09
       2030-01-25              2030-02-25               65,916.81
       2030-02-25              2030-03-25               62,789.54
       2030-03-25              2030-04-25               59,708.72
       2030-04-25              2030-05-25               56,673.76
       2030-05-25              2030-06-25               53,684.10
       2030-06-25              2030-07-25               50,739.17
       2030-07-25              2030-08-25               47,838.43
       2030-08-25              2030-09-25               44,981.30
       2030-09-25              2030-10-25               42,167.24
       2030-10-25              2030-11-25               39,395.72
       2030-11-25              2030-12025               36,666.17
       2030-12-25              2031-01-25               33,978.09
       2031-01-25              2031-02-25               31,330.91
       2031-02-25              2031-03-25               28,724.13
       2031-03-25              2031-04-25               26,157.22
       2031-04-25              2031-05-25               23,629.67
       2031-05-25              2031-06-25               21,140.95
       2031-06-25              2031-07-25               18,690.58
       2031-07-25              2031-08-25               16,278.03
       2031-08-25              2031-09-25               13,902.80
       2031-09-25              2031-10-25               11,564.42
       2031-10-25              2031-11-25                9,262.38
       2031-11-25              2031-12-25                6,996.20
       2031-12-25              2032-01-25                4,765.40
       2032-01-25              2032-02-25                2,569.51
       2032-02-25              2032-03-25                 408.06
       2032-03-25                                           0

                     [Rest of Page Left Intentionally Blank]

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