ON ANY DATE, THE CATEGORIES OF ASSETS DENOMINATED IN U.S. DOLLARS OR EUROS AND
DESIGNATED AS "CSA ELIGIBLE" ON SCHEDULE A TO THE CREDIT SUPPORT ANNEX OF THE
DEXIA GUARANTEED PUT CONTRACT QUALIFY AS "ELIGIBLE COLLATERAL" AND THE VALUATION
PERCENTAGE FOR EACH SUCH CATEGORY SHALL BE THE PERCENTAGE CORRESPONDING TO THE
CURRENT RATING FOR SUCH CATEGORY ON THE RELEVANT VALUATION DATE.
FOR THE
AVOIDANCE OF DOUBT, ANY ASSET THAT IS NOT ELIGIBLE COLLATERAL SHALL HAVE A VALUE
OF ZERO FOR ALL PURPOSES UNDER THIS CREDIT SUPPORT ANNEX.
CASH IN U.S. DOLLARS
SHALL ALSO CONSTITUTE ELIGIBLE COLLATERAL.
(II)
OTHER ELIGIBLE SUPPORT.
THE FOLLOWING ITEMS WILL QUALIFY AS "OTHER ELIGIBLE SUPPORT" FOR THE PARTY
SPECIFIED:
NOT APPLICABLE.
(III)
THRESHOLD.
(A)
"INDEPENDENT AMOUNT"
1
With respect to Party A: (i) prior to the Swap Amendment Cut-Off Date (as
defined in the Hedging Letter Agreement referred to in the Pledge and
Administration Agreement), not applicable and (ii) on or after the Swap
Amendment Cut-Off Date, any amount that is applicable under the Hedging Letter
Agreement (and otherwise zero).
WITH RESPECT TO PARTY B: NOT APPLICABLE.
(B)
"THRESHOLD" MEANS, WITH RESPECT TO PARTY A,
USD 5,000,000, UNLESS THE SUBORDINATED CLAIMS PAYMENT CONDITION IS NOT MET, IN
WHICH CASE IT WILL BE ZERO.
"THRESHOLD", WITH RESPECT TO PARTY B AND ANY VALUATION DATE IS NOT APPLICABLE.
(C)
"MINIMUM TRANSFER AMOUNT" MEANS, WITH RESPECT
TO PARTY A AND PARTY B, USD 5,000,000, UNLESS THE SUBORDINATED CLAIMS PAYMENT
CONDITION IS NOT MET, IN WHICH CASE IT WILL BE ZERO WITH RESPECT TO PARTY A, AND
INFINITY WITH RESPECT TO PARTY B.
(D)
ROUNDING: THE DELIVERY AMOUNT WILL BE ROUNDED
UP TO THE NEAREST INTEGRAL MULTIPLE OF USD 10,000. THE RETURN AMOUNT WILL BE
ROUNDED DOWN TO THE NEAREST INTEGRAL MULTIPLE OF USD 10,000.
(C)
VALUATION AND TIMING.
(I)
"VALUATION AGENT" MEANS THE REPORTING
AGENT (AS DEFINED IN THE PLEDGE AND ADMINISTRATION AGREEMENT).
(II)
"VALUATION DATE" MEANS (A) EACH DAY WHICH
IS THE LAST BUSINESS DAY IN A CALENDAR WEEK, (EACH, A "SCHEDULED VALUATION
DATE") AND (B) ANY ADDITIONAL BUSINESS DAY REQUESTED TO BE A VALUATION DATE BY
FSA OR PARTY A FROM TIME TO TIME WHICH IS NOT A SCHEDULED VALUATION DATE AND IS
NOTIFIED TO PARTY A OR PARTY B AND FSA, AS APPLICABLE AND THE VALUATION AGENT AT
LEAST ONE BUSINESS DAY IN ADVANCE OF THE PROPOSED ADDITIONAL VALUATION DATE
(EACH AN "ADDITIONAL VALUATION DATE"), PROVIDED THAT THE NUMBER OF ADDITIONAL
VALUATION DATES REQUESTED BY FSA SHALL NOT EXCEED 10 IN ANY CALENDAR YEAR (AND
THE NUMBER OF ADDITIONAL VALUATION DATES REQUESTED BY PARTY A IS NOT LIMITED).
(III)
"VALUATION TIME" MEANS THE CLOSE OF BUSINESS
IN THE CITY OF THE VALUATION AGENT ON THE LOCAL BUSINESS DAY IMMEDIATELY
PRECEDING THE VALUATION DATE OR DATE OF CALCULATION, AS APPLICABLE; PROVIDED
THAT THE CALCULATIONS OF VALUE AND EXPOSURE WILL BE MADE AS OF APPROXIMATELY THE
SAME TIME ON THE SAME DATE.
(IV)
"NOTIFICATION TIME" MEANS 11:00A.M., NEW YORK
CITY TIME, ON A LOCAL BUSINESS DAY.
(V)