EXHIBIT 10.21

 

GUARANTEE RELEASE AGREEMENT

 

Dexia Crédit Local

Dexia Bank Belgium SA

 

FSA Asset Management LLC

 

and

 

Financial Security Assurance Inc.

 

February 20, 2009

 

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GUARANTEE RELEASE AGREEMENT

 

This guarantee release agreement (the “Agreement”) is dated as of February 20,
2009, and entered into by and among Dexia Crédit Local (“DCL”), Dexia Bank
Belgium SA (“DBB”, together with DCL, the “Banks”), FSA Asset Management LLC
(the “Company”), and Financial Security Assurance Inc. (the “Guarantor”).  Each
of the Banks, the Company and the Guarantor are sometimes referred to herein
individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, on June 30, 2008, DCL entered into a Revolving Credit Agreement (the
“Credit Agreement”) providing for loans to the Company of up to US$5 billion at
any one time outstanding;

 

WHEREAS, effective August 22, 2008, DCL assigned part of its interest in the
Credit Agreement to DBB, as a result of which assignment DBB became a “Bank” as
defined under the Credit Agreement;

 

WHEREAS, the Guarantor guarantees the repayment of borrowings by the Company
under the Credit Agreement pursuant to a Financial Guaranty Insurance Policy
(Policy No.: 90908-N) issued on June 30, 2008 (the “Policy”); and

 

WHEREAS, in connection with the reorganization of the business of Financial
Security Assurance Holdings Ltd. and certain of its affiliates (including the
Company), the Banks have each deemed it to be in their best interests to release
the Guarantor from any and all obligations that it may have under the Policy,
and to make appropriate amendments to the Credit Agreement reflecting such
release and eliminating any requirement on the part of the Company to provide or
maintain the Policy (or any substitution therefor or replacement thereof);

 

NOW, THEREFORE, in consideration of the premises and the representations,
warranties, covenants and agreements herein contained, and intending to be
legally bound hereby, the Parties hereby agree as follows:

 

Article I

Surrender of Policy and Release of Guarantor

 

Section 1.1             Surrender of Policy.  Each of the Banks, in their
capacity as “Holders” as defined under the Policy, hereby surrender the Policy
to the Guarantor, irrevocably release and waive any and all rights they may have
under the Policy, and agree to hold the Guarantor harmless against any claims
they (or any third party claiming rights through such Party) may make under the
Policy.  DCL agrees to return the original Policy to the Guarantor on behalf of
the Holders as soon as reasonably practicable following the execution of this
Agreement.

 

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Article II

Amendments to Revolving Credit Agreement

 

Section 2.1.  Amendments to Credit Agreement.  Each of the Banks and the Company
agree that the Credit Agreement is hereby amended as follows:

 

1.     The term “FSA Policy” is deleted in its entirety from Section 1.01.

 

2.     Section 2.02(iii) is deleted in its entirety and the remaining provisions
in Section 2.02 are renumbered accordingly.  In the last sentence in
Section 2.02, “(iii)” is replaced with “(ii)”.

 

3.     Section 3.01(e) is deleted in its entirety and the remaining provisions
in Section 3.01 are relabeled accordingly.

 

4.     Each instance of “FSA or” appearing in Section 5.01(a)(v) shall be
deleted.

 

5.     Section 5.01(a)(vi) is deleted in its entirety and, for the avoidance of
doubt, the surrender of the Policy shall not constitute an Event of Default (as
defined in the Credit Agreement).

 

Section 2.2.  Reference to and Effect on the Credit Agreement.  On and after the
date of this Agreement, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the notes to “the Revolving Credit
Agreement”, “Agreement”, “therein”, or words of like import referring to the
Credit Agreement, shall mean and be a reference to the Credit Agreement, as
amended by this Agreement.  The Credit Agreement and the notes, as specifically
amended by this Agreement, are and shall continue to be in full force and effect
and are hereby in all respects ratified and confirmed.  The execution, delivery
and effectiveness of this Agreement shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of any Bank under the
Credit Agreement, nor constitute a waiver of any provision of the Credit
Agreement.

 

Article III

Other Provisions

 

Section 3.1.  Entire Agreement.  This Agreement contains, and is intended as, a
complete statement of all of the terms of the agreement among the Parties with
respect to the matters provided for herein.

 

Section 3.2  Further Assurances.  The Parties will from time to time and at all
times hereafter make, do, execute, or cause or procure to be made, done and
executed such further acts, deeds, conveyances, consents and assurances without
further consideration, which may reasonably be required to effect the
transactions contemplated by this Agreement.

 

Section 3.3  Counterparts.  This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so

 

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executed shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement.  Delivery of an executed counterpart
of a signature page to this Agreement by email or facsimile shall be effective
as delivery of a manually executed counterpart of this Agreement.

 

Section 3.4 Governing Law.  The provisions of Section 6.06 of the Credit
Agreement shall apply to this Agreement (mutatis mutandis).

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
by their respective authorized signatories as of the date first written above.

 

 

 

DEXIA CREDIT LOCAL

 

 

 

 

 

By:

 

/s/ Pascal Poupelle

 

Name:

Pascal Poupelle

 

Title:

Chief Executive Officer

 

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DEXIA BANK BELGIUM SA

 

 

 

 

 

By:

 

/s/ Jean-François Martin

 

Name:

Jean-François Martin

 

Title:

Member of the Management Board

 

 

 

 

 

By:

 

/s/ Luc van Thielen

 

Name:

Luc van Thielen

 

Title:

Member of the Management Board

 

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FSA ASSET MANAGEMENT LLC

 

 

 

 

 

By:

 

/s/ Guy Cools

 

Name:

Guy Cools

 

Title:

Managing Director

 

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FINANCIAL SECURITY ASSURANCE INC.

 

 

 

 

 

By:

 

/s/ Robert P. Cochran

 

Name:

Robert P. Cochran

 

Title:

Chairman & CEO

 

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