Document:

Exhibit 10.4.2

 

Execution
Version

 

SCHEDULE

to the

1992 MASTER AGREEMENT

 

Non-Guaranteed Put
Contract

 

dated as of June 30, 2009

 

among:                                                         DEXIA SA (“Dexia”),

 

DEXIA
CRÉDIT LOCAL S.A. (“DCL”
and, together with Dexia, the “Party A”), jointly and severally;

 

and                                                                            FSA ASSET MANAGEMENT LLC (“Party B”)

 

Part 1.           Termination Provisions

 

(a)                                  The “Failure
to Pay or Deliver” provisions of Section 5(a)(i)

 

(i)                                     will apply to Party A but are modified with
respect to Party A to read as follows:

 

“failure by the party to make, when due, either (I) any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or
(II) any payment or delivery under the Credit Support Annex required to be
made by it if such failure to make payments or deliveries  (taken together with any other outstanding
and uncured failures to make payments or deliveries by Party A or its
Affiliates in relation to Dexia Payment Obligations) exceeds the Default
Threshold and is not remedied within the Cure Period identified under and in
the manner described in the Pledge and Administration Agreement following
delivery of a Payment Failure Notice to Party A; and

 

(ii)                                  will not apply to Party B.

 

“Pledge and Administration Agreement” means
the Pledge and Administration Agreement, dated as of June 30, 2009, among
Dexia, DCL, Dexia Bank Belgium SA, Financial Security Assurance Inc.,
Party B, FSA Portfolio Asset Limited, Dexia FP Holdings Inc., FSA Capital
Markets Services LLC, FSA Capital Management Services LLC, FSA Capital Markets
Services (Caymans) Ltd. and The Bank of New York Mellon Trust Company, National
Association, as the same may be amended, supplemented or modified from time to
time.

 

“Priority of Payments” has the meaning
defined in the Pledge and Administration Agreement.

 

“Sovereign Guarantors” means the Belgian
State and the French State.

 

“Sovereign Guarantee” means the First Demand
Guarantee dated June 30, 2009, issued by the Sovereign Guarantors under
which the Sovereign Guarantors guarantee the joint and several payment
obligations of Dexia under this Agreement.

 

Capitalized terms
used and not defined herein have the meanings assigned in the Pledge and
Administration Agreement or if not defined therein, in the Confirmation dated
of even date herewith and captioned “Non-Guaranteed Put Contract” (the “Confirmation”).

 

(b)                                 The “Credit
Support Default” provisions of Section 5(a)(iii) will not
apply to Party A or to Party B (without prejudice to the application of Section 5(a)(i) as
amended hereby to payments or deliveries required to be made by Party A under
the Credit Support Annex).

 

 

(c)                                  Section 5(a)(vii) will not
apply to Party B and will apply to Party A only in the case of a Dexia
Voluntary/Involuntary Bankruptcy.

 

“Dexia Voluntary/Involuntary Bankruptcy”
means the occurrence with respect to Dexia of an event described in Section 5(a)(vii), provided, however, that subclause (4) of Section 5(a)(vii) shall
be amended so that the reference to “30 days” in subclause (4)(B) of Section 5(a)(vii) shall
refer to “60 days”.

 

For the avoidance
of doubt, the occurrence only with respect to DCL, and not with respect to
Dexia, of an event described in Section 5(a)(vii) does
not constitute a Dexia Voluntary/Involuntary Bankruptcy.

 

(d)                                 Section 5(a)(vi) (Cross Default) will not apply to Party B and will apply to
Party A, provided that with respect to Party A, Section 5(a)(vi) will
be deleted in its entirety and replaced with the following:

 

“the occurrence of any Dexia Event of Default (other than an
Event of Default under Section 5(a) as modified by the Schedule).

 

“Dexia Event of Default” has the meaning
specified in the Pledge and Administration Agreement.

 

(e)                                  Section 5(a)(ii) (Breach
of Agreement), Section 5(a)(iv) (Misrepresentation), Section 5(a)(v) (Default
Under Specified Transaction) and Section 5(a)(viii) (Merger Without
Assumption) will not apply to Party A or Party B.

 

(f)                                    “Specified Entity” will not apply in relation to either
Party A or Party B.

 

(g)                                 “Termination Events”.  The  provisions
of Section 5(b) will not apply to Party A or Party B.

 

(h)                                 The “Automatic Early
Termination” provision of Section 6(a) will apply to Party
A.  Section 6(a) will not apply
to Party B at any time.  Party B may not
declare an Early Termination Date without written consent from FSA permitting
it to do so, provided that Party B shall declare an Early Termination Date at
the direction of FSA in accordance with Section 5.2(a)(iv) of
the Pledge and Administration Agreement, and any purported declaration by Party
B without the prior written consent of FSA shall be void ab initio
and of no effect.

 

(i)                                     “Payments on Early
Termination.   Notwithstanding anything to the contrary in Section 6(e) of
this Agreement, the amount payable by Party A in respect of any Early
Termination Date shall be an amount equal to the sum of (x) all net Unpaid
Amounts (subject to the delivery to Party A of any Put Settlement Assets
corresponding to any Put Settlement Amounts included in Unpaid Amounts), plus
(y) the applicable Exposure as determined by the Valuation Agent under the
Credit Support Annex as of such Early Termination Date (without duplication of
any component of such Exposure paid as an early termination amount under Section 6(e) of
the Dexia Guaranteed Put Contract). 
Notwithstanding anything to the contrary in Section 6(e), no amounts
will be payable by Party B in respect of any Early Termination Date.

 

(j)                                     “Termination Currency” means U.S. Dollars.

 

(k)                                  “Additional Termination
Events” will not apply.

 

 

Part 2.           Tax Representations

 

Payer Representations. 
For the purpose of Section 3(e) of this Agreement, Party A and
Party B will each make the following Payer 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 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.

 

Payee Representations. 
For the purpose of Section 3(f) of this Agreement, (i) Dexia
represents that it is a company duly organized under the laws of Belgium, (ii) DCL
represents that it is a French share
Company licensed as a bank under French law, and (iii) Party B represents that it is a limited
liability company organized under the law of the State of Delaware.

 

Part 3.           Agreements to Deliver Documents

 

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

 

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

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date by which to be

  delivered

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A and Party B

  	
   

  	
  Any form, document or certificate reasonably
  required by the other party to enable it to pay free of or at a reduced rate
  of withholding tax

  	
   

  	
  As soon as practicable after written request is made

  

 

(b)                                 Other documents to be delivered are:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date by which

  to be delivered

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A and Party B

  	
   

  	
  Certificate or other documents evidencing the
  capacity of the party to enter into this Agreement and the Transaction
  hereunder and the authority of the person(s) executing this Agreement or
  a Confirmation, as the case may be.

  	
   

  	
  On or before execution of this Agreement.

  	
   

  	
  No

  

 

 

	
  Party A

  	
   

  	
  Consolidated annual financial statements of Dexia,
  prepared in accordance with generally accepted accounting principles in the
  country in which the party is organized.

  	
   

  	
  Promptly after request (unless publicly available on
  the website of Dexia)

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A

  	
   

  	
  Each Credit Support Document

  	
   

  	
  On or before execution of this Agreement

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A

  	
   

  	
  A legal opinion as to enforceability of this
  Agreement and the Confirmation evidencing the Transaction hereunder.

  	
   

  	
  On or before execution of this Agreement.

  	
   

  	
  No

  

 

Part 4.           Miscellaneous

 

(a)                                  Addresses for Notices. 
For the purpose of Section 12(a) of this Agreement:

 

Address for notices or communications to Party A:

 

Dexia Crédit Local, New York branch

445 Park Avenue

7th Floor

New York, New York 10022

 

And

 

Dexia SA

Place Rogier 11

B-1210 Brussels

Belgium

Attn.: Secretary
General

e-mail: secretarygeneral@dexia.com and
olivier.vanherstraeten@dexia.com

Tel.: +32-2-213.57.42 or
+32-2-213.50.43

Telecopy N°:
+32-2-213.58.90

 

with a copy to:

 

Dexia Crédit Local

Tour Dexia La Défense 2

1, Passerelle des Reflets

TSA 92202

92919 La Défense Cedex

Attention : Back-Office Department

Telephone No : + 00 33 1 58
58 68 92

Facsimile No : + 00 33 1 58 58
66 20

 

Address for notices or communications to Party B:

 

 

As set
forth in the Pledge and Administration Agreement.

 

Address for
notices or communications to FSA:

 

As set
forth in the Pledge and Administration Agreement.

 

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

 

	
  Party A appoint

  	
   

  
	
  as their Process Agent

  	
  Dexia Crédit Local, New York Branch

  
	
   

  	
   445 Park Avenue, 7th Floor, New
  York 10022

  

 

(c)                                  Offices. 
The provisions of Section 10(a) will apply to Party A and
Party B.  In furtherance, and not in
limitation, of Section 10(a) of this Agreement, DCL irrevocably
agrees that, if and to the extent that it enters into any Transaction or
Transactions hereunder through an Office other than its head or home office
(including, without limitation, its New York Branch), its obligations to Party
B in connection with such Transaction or Transactions shall be the same as if
it had entered into such Transaction or Transactions through its head or home
office; and if any or all of the claims of Party B against such other Office in
connection with such Transaction or Transactions are, in connection with any
insolvency, bankruptcy or other similar proceedings relating to such other
Office, disallowed as against such other Office by virtue of any law or rule disallowing,
or permitting the disallowance of, any such claim or claims in any such
proceedings by reason of the fact that Party B is (or was) an Affiliate of DCL
(including, without limitation, Section 606.4(a) of the New York
Banking Law), then such disallowance shall not affect the obligations of DCL
hereunder in relation to such Transaction or Transactions or the right of Party
B to enforce such obligations against the head or home office of DCL, or any
rights of Party B under the Credit Support Annex hereto.

 

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

 

DCL is a
Multibranch Party and may act through its New York branch or Paris Head Office.

 

Dexia and Party B
are not Multibranch Parties.

 

(e)                                  Calculation Agent. 
As specified in the Confirmation.

 

(f)                                    Credit Support Documents. 
Details of Credit Support Documents:

 

Party A:  The
Credit Support Annex hereto.

Party B:  Not applicable.

 

(g)                                 Credit Support Provider. 
Credit Support Provider means

 

in relation to Party A:  None

 

in relation to Party B:  None

 

(h)                                 Nontransferability.  Section 7 is replaced with the
following:

 

“Neither this Agreement
nor any interest or obligation in or under this Agreement may be transferred
(whether by way of security or otherwise) by Party B without the consent of
Party A 

 

 

and FSA, other than (x) to
pledge such rights to the Collateral Agent as part of the FSAM Collateral, or (y) pursuant
to a consolidation or amalgamation with, or merger with or into, or transfer of
all or substantially all its assets to, another entity (an “Party B Merger”)
where FSA has given its consent to such Party B Merger (but without prejudice
to any other right or remedy under this Agreement).

 

Neither this Agreement
nor any interest or obligation in or under this Agreement may be transferred
(whether by way of security or otherwise) by Dexia or DCL without the prior
written consent of Party B and FSA, other than pursuant to a consolidation
with, or merger with or into, or transfer of all or substantially all its
assets to, another entity (a “Corporate
Reorganization”), provided that
the Remedies Nonimpairment Condition (as defined in the Pledge and
Administration Agreement) is satisfied in relation to such Corporate
Reorganization.

 

FSA will not have
the right to transfer any of its rights under this Agreement without the
consent of Party A, except pursuant to a consolidation or amalgamation with, or
merger with or into, or transfer of all or substantially all FSA’s assets to,
another entity (but without prejudice to any other right or remedy under this
Agreement).

 

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

 

(i)                                     Governing Law; Exclusive
Jurisdiction.

 

(i)                                     THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK AND THE MANDATORY CHOICE OF
LAW RULES CONTAINED IN THE UCC.

 

(ii)                                  Section 13(b) is hereby deleted
and replaced by the following:

 

“Each of the parties hereto hereby irrevocably submits
to the exclusive jurisdiction of any U.S. federal or state court in The City of
New York for the purpose of any suit, action, proceeding or judgment arising
out of or relating to this Agreement. 
Each of the parties hereto hereby consents to the laying of venue in any
such suit, action or proceeding in New York County, New York, and hereby
irrevocably waives any claim that any such suit, action or proceeding brought
in such a court has been brought in an inconvenient forum and agrees not to
plead or claim the same.  Notwithstanding
the foregoing, nothing contained in this Agreement shall limit or affect the
rights of any party hereto to exercise remedies under this Agreement or any of
the other Transaction Documents (as defined in the Pledge and Administration
Agreement), or to enforce any judgment with respect thereto, in any
jurisdiction or venue.”

 

(j)                                     Netting of Payments.  Section 2(c) of
this Agreement will not apply.

 

(l)                                     “Affiliate” will have the meaning specified in Section 14
of this Agreement.

 

(m)                               Set-off.  The rights and
obligations of the parties hereunder shall not be subject to, and shall not
form the basis for, any rights of setoff arising from a transaction not subject
to this Agreement; provided, that if on any day there are amounts
in the same currency payable both by Party A to Party B and by Party B to Party
A, in accordance with the Priority of Payments, such amounts may be set off
against one another and only a single net amount transferred by Party A to
Party B, or by Party B to Party A, as the case may be.

 

 

(n)                                 Relationship
Between Parties.  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 is based upon its own
judgement 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 the 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.

 

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

 

Part 5.           Other Provisions.

 

(a)                                  No Agency. 
Each of Party A and Party B is entering into this Agreement and each
Transaction as principal (and not as agent or in any other capacity, fiduciary
or otherwise).

 

(b)                                 Assignment and Pledge Under the Pledge and Administration Agreement. Party A acknowledges and consents to
Party B’s grant of all its right, title and interest in, to and under, in each
case, whether now owned or existing, or hereafter acquired or arising, this
Agreement or any Transaction hereunder (including, without limitation, its
right to payments due to it hereunder or with respect hereto), to the
Collateral Agent pursuant to and in accordance with the terms of the Pledge and
Administration Agreement, for the benefit of the persons identified
therein.  Party B hereby irrevocably
appoints the Collateral Agent and FSA as its agents and attorneys-in-fact for
enforcing its rights hereunder upon the events and in the manner specified in
the Pledge and Administration Agreement, which appointment is coupled with an
interest, and Party B confirms that notice of such appointment has been
effectively given to the Collateral Agent and FSA.  Party A agrees that, unless notified in
writing by the Collateral Agent of other payment instructions (or as otherwise
provided in the Credit Support Annex with respect to transfers of Eligible
Collateral), any and all amounts payable by Party A to Party B under this
Agreement will be paid to the FSAM Cash Account, at such account as the
Collateral Agent specifies in writing to Party A.

 

Party A and Party
B acknowledge and agree that FSA may directly enforce the rights of Party B
under this Agreement (A) at any time that it is the Secured Party
Representative or (B) in the circumstances specified in this Agreement
(including the Schedule, Confirmation and Credit Support Annex), without
prejudice to or limitation of any rights given to FSA as a third party beneficiary
under this Agreement.  Party B hereby
irrevocably designates FSA its agent and attorney-in-fact for purposes of
enforcing such rights, which designation is coupled with an interest.

 

 

(c)                                  Amendments. 
No amendment, modification, supplement or termination of any provision
of this Agreement or any of the Schedule, the Confirmation or the Credit
Support Annex shall in any event be effective unless the same shall be in
writing and signed by Party A, Party B and FSA. 
No waiver of any provision of this Agreement or consent to any departure
by Party A or Party B herefrom shall in any event be effective unless the same
shall be in writing and signed by (x) in the case of a waiver or consent
to be granted by Party A, Party A, and (y) in the case of a waiver or
consent to be granted by Party B, Party B and FSA.  Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which
given.  No notice to or demand on a party
in any case shall, of itself, entitle such party to any other or further notice
or demand in similar or other circumstances. 
Notwithstanding the foregoing, any amendment, modification, supplement,
termination of any provision of this Agreement or any of the Schedule, the
Confirmation or the Credit Support Annex entered into by Party A and Party B,
or any waiver or consent to any departure by Party A from any provision of this
Agreement or any of the Schedule, the Confirmation or the Credit Support Annex
granted by Party B without the prior written consent of FSA shall be void ab initio.

 

(d)                                 Third Party Beneficiaries. 
Nothing in this Agreement expressed or implied, shall give to any
person, other than the parties hereto and their successors hereunder and FSA
(which shall be an express third party beneficiary of this Agreement), any
benefit or any legal or equitable right, remedy or claim under this Agreement.

 

(e)                                  Waiver of Jury Trial. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.  EACH PARTY
ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION
FOR THIS PROVISION.

 

(f)                                    Single Transaction. Each party acknowledges and agrees that
the Transaction evidenced by the Confirmation dated as of the date hereof will
be the only Transaction governed by this Agreement.

 

(g)                                 Non-Petition. 
DCL and Dexia each agrees that it will not, prior to the Senior Release
Date (as defined in the Pledge and Administration Agreement), acquiesce,
petition or otherwise institute against, or join any other person in
instituting against, Party B, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any federal
or state bankruptcy, or similar law, including without limitations proceedings
seeking to appoint a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of Party B or any substantial part of
its property; provided, that this provision shall not restrict or
prohibit Dexia or DCL from joining any such proceedings which shall have
already commenced under applicable laws and not in violation of this
provision.  This provision shall survive
the termination of this Agreement for any reason.

 

(h)                                 Limited Recourse.  The obligations of Party B in relation to this
Agreement and any Transaction hereunder are limited recourse obligations,
payable solely from the proceeds of the FSAM Collateral (as defined in the
Pledge and Administration Agreement) available under and applied in accordance
with the Priority of Payments set forth in the Pledge and Administration
Agreement.  Upon application of the FSAM
Collateral and proceeds thereof available to satisfy the obligations of Party B
hereunder in accordance with the Pledge and Administration Agreement, Dexia and
DCL shall not be entitled to take any further steps against Party B to recover
any sums due and shall not constitute a claim against Party B to the extent of
any insufficiency.  No recourse shall be
had for the payment of any amounts owing in respect of this Agreement against
any officer, director, employee, stockholder, member or incorporator of Party
B.  This provision shall survive the
termination of this Agreement for any reason.

 

 

(i)                                     Bankruptcy Code Acknowledgment.  Each of Party A and Party B agrees and
acknowledges that this Agreement is:

 

(A)                              intended to be a “securities contract,”
as such term is defined in Section 741(7) of the United States
Bankruptcy Code, with respect to which: (1) the contractual rights of
Party B hereunder to cause the liquidation, termination or acceleration of a
securities contract are intended to be among those protected under Section 555
of the United States Bankruptcy Code; (2) the termination, netting and collateral
liquidation provisions hereof are intended to be among those excepted from the
automatic stay under Section 362(b)(6) of the United States
Bankruptcy Code; and (3) each transfer, payment and delivery hereunder or
in connection herewith is intended to be a “margin payment”, as defined in Section 741(5) of
the United States Bankruptcy Code, and/or a “settlement payment” as defined in Section 741(8) of
the United States Bankruptcy Code, under a securities contract, and is
therefore, under Section 546(e) of the United States Bankruptcy Code,
not avoidable; and

 

(B)                                intended to be a “swap agreement,” as
such term is defined in Section 101(53B) of the Bankruptcy Code, with
respect to which: (1) the contractual rights of Party B hereunder to cause
the liquidation, termination or acceleration of a securities contract are
intended to be among those protected under Section 560 of the United
States Bankruptcy Code; (2) the termination, netting and collateral
liquidation provisions hereof are intended to be among those excepted from the
automatic stay under Section 362(b)(17) of the United States Bankruptcy
Code; and (3) each transfer, payment and delivery hereunder or in
connection herewith is intended to be a transfer under or in connection with a
swap agreement and is therefore, under Section 546(g) of the United
States Bankruptcy Code, not avoidable.

 

(j)                                     NY Banking Law Acknowledgment.  Each of Party A and Party B agrees and
acknowledges that this Agreement is intended to be a “qualified financial
contract” as such term is defined in Section 618-a of the New York Banking
Law (NYBL).

 

(k)                                  French Monetary and Financial
Code Acknowledgment. 
Each of Party A and Party B agrees and acknowledges that (A) this Agreement constitutes a financial
agreement (contrat financier) as such term is
defined under article L. 211-1 and D. 211-1 A of the French Monetary and
Financial Code, (B) each transaction contemplated by this Agreement
constitutes a transaction on financial instruments (opération
sur instruments financiers) within the meaning of article L.211-36
and L.211-1 of the French Monetary and Financial Code, (C) each of Party A
and Party B is an entity falling within the scope of article 211-36 1° of the
French Monetary and Financial Code.

 

(l)                                     Belgian Code Acknowledgment. 
Each of Party A and Party B agrees and acknowledges that the Collateral Support Annex and any
pledge agreement entered into with respect to the MPAA Account (as defined in
the Credit Support Annex) are financial collateral arrangements (zakelijke zekerheidsovereenkomsten/conventions
constitutives de sûreté réelle) and this Agreement and any
Transactions hereunder constitute a “netting agreement” (nettingovereenkomst/convention
de netting) as such terms are defined in Article 3 of the
Belgian Act of 15 December 2004 on financial collateral arrangements and
several tax dispositions in relation to security collateral arrangements and
loans of financial instruments.

 

(m)                               No Gross Up by Party B.

 

(i)                                     Section 2(d)(i)(4) is
hereby deleted and replaced by the following:

 

“(4)                            (A)                              If Party A is the party so required to deduct or
withhold, then Party A shall make such additional payment as is necessary
to ensure that the net amount actually

 

 

received by Party B (free and clear of all Taxes,
whether assessed against it or Party B) will equal the full amount
Party B would have received had no such deduction or withholding been
required; and

 

(B)                                if Party B is the party so required to
deduct or withhold, then Party B shall make the relevant payment subject
to such deduction or withholding and Party B will not be required to gross
up.

 

For the avoidance of doubt, the fact that any payment
is made by Party B subject to the provisions of (B) above shall at no
time affect the obligations of Party A under (A) above.”

 

(ii)                                  Indemnifiable Tax.  Notwithstanding the definition of “Indemnifiable Tax”
in Section 14 of this Agreement, all Taxes in relation to payments by
Party A shall be Indemnifiable Taxes and in relation to payments by
Party B, no Tax shall be an Indemnifiable Tax.

 

(n)                                 Payments by DCL.  Any cash payments (“Pre-Collateral Posting Payments”) required
to be made by Party A under this Agreement on or prior to the date on which (i) the
Collateral Replacement Date has occurred and (ii) Eligible Collateral
having a Value equal to the Delivery Amount determined on the Collateral
Replacement Date shall have been Transferred under the Credit Support Annex
shall be considered paid for purposes of this Agreement (including without
limitation Section 5(a)(i)) only if payment is made to Party B by DCL (and
not by Dexia), provided that (A) payments by the Sovereign Guarantors
under the Sovereign Guarantee shall always be considered to have been paid for
purposes of this Agreement (including without limitation Section 5(a)(i))
notwithstanding that they are made in respect of a guarantee of the obligations
of Dexia and (B) this provision shall not prejudice (i) any rights of
Party B to enforce Dexia’s obligation to make payment of Pre-Collateral Posting
Payments at Party B’s election, (ii) any rights of Party B against Dexia
or DCL arising from nonpayment of Pre-Collateral Posting Payments by DCL or (iii) any
rights and remedies as between Dexia and DCL in relation to their joint and
several obligations under this Agreement.

 

(o)                                 FSAM Lien Release Date. 
If an FSAM Lien Release Date has occurred as defined in the Pledge and
Administration Agreement, then pursuant to Section 2.5(d) of the Pledge
and Administration Agreement and notwithstanding the rights of FSA as third
party beneficiary hereunder or the other provisions of this Agreement or the
Confirmation relating to rights of the Collateral Agent and FSA, this Agreement
and the Confirmation may be amended by Party A and Party B to disapply
provisions relating to the rights of the Collateral Agent and FSA for purposes
of transactions occurring or rights accruing under this Agreement after the
FSAM Lien Release Date.

 

 

The parties executing the Schedule have executed the Master Agreement
and have agreed as to the contents of this Schedule.

 

Yours faithfully,

 

 

	
  FSA
  ASSET MANAGEMENT LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEXIA SA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEXIA
  CRÉDIT LOCAL S.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Non-Guaranteed Put
ScheduleExhibit 10.4.3

 

EXECUTION VERSION

 

PUT OPTION CONFIRMATION

Non-Guaranteed Put Contract

 

	
  DATE:

  	
  June 30, 2009

  
	
   

  	
   

  
	
  TO:

  	
  FSA Asset Management LLC

  
	
   

  	
   

  
	
  FROM:

  	
  Dexia SA  

  
	
   

  	
  Dexia Crédit Local S.A.

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Put Option Transaction

  

 

The purpose of this
communication is to set forth the terms and conditions of the above referenced
transaction entered into on the Trade Date specified below (the “Put Option Transaction”) between Dexia SA (“Dexia”) and  Dexia Crédit Local S.A., acting through its New York Branch (“DCL”), jointly and severally (“Party A”) and FSA Asset Management LLC (“Party B”). 
This communication constitutes a “Confirmation” as referred to in the
Agreement specified below.

 

This Confirmation supplements, forms a part of and is subject to the
ISDA Master Agreement dated as of June 30, 2009  (including the Schedule and Credit Support Annex thereto
(each captioned “Non-Guaranteed Put Contract”)
as amended and supplemented from time to time (the “Agreement”) between Party A and Party B.  Capitalized terms used and not defined herein
have the meanings set forth in the Agreement. 
All provisions contained in, or incorporated by reference to, the
Agreement shall govern this Confirmation except as expressly modified below.

 

This Confirmation is subject to, and incorporates the 2000 ISDA
Definitions (the “2000 Definitions”),
as published by the International Swaps and Derivatives Association, Inc.  Notwithstanding the foregoing, Articles 11
and 12 of the 2000 Definitions shall not apply. 
In the event of any inconsistency between this Confirmation, the 2000
Definitions, or the Agreement, as the case may be, this Confirmation will
control for purposes of this Put Option Transaction.

 

	
  1.

  	
  General
  Terms:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trade Date:

  	
  June 30, 2009

  
	
   

  	
   

  	
   

  
	
   

  	
  Effective Date:

  	
  June 30, 2009

  

 

1

 

	
   

  	
  Scheduled Termination Date:

  	
  The last to occur of:

   

  (a)                                 the expiration of any applicable preference period
  following the last Effective Maturity Date;

   

  (b)                                the expiration of any applicable preference period
  following the last Shortfall
  Payment Date;

   

  (c)                                 the expiration of any applicable preference period
  following the last Put Settlement Date;

   

  (d)                                the expiration of any applicable preference period
  following the date on which no Put Portfolio II Assets remain in the Put
  Portfolio II Annex; and

   

  (e)                                 the expiration of the applicable preference period
  after the date on which the last GIC Contract has been paid in full.

   

  The “Term” of this Transaction shall begin on
  and include the Effective Date and end on and include the Scheduled
  Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Calculation Agent:

  	
  The Calculation Agent will be HF Services,
  LLC, provided that if HF Services, LLC is no longer acting as Administrator,
  Party A, Party B and FSA shall agree in good faith on a successor Calculation
  Agent, and pending such agreement the Reporting Agent shall act as successor
  Calculation Agent.

  
	
   

  	
   

  	
   

  
	
   

  	
  Calculation Agent City:

  	
  New York

  
	
   

  	
   

  	
   

  
	
   

  	
  Business Day:

  	
  Brussels, New York and Paris.

  
	
   

  	
   

  	
   

  
	
   

  	
  Business Day Convention:

  	
  Following (which, with the exception of the Effective Date, any Final
  Amortization Date, each Put Portfolio II Asset Payment Date and the period
  end date of each Put Portfolio II Asset Calculation Period, shall apply to
  any date referred to in this Confirmation that falls on a day that is not a
  Business Day).

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Portfolio II Assets:

  	
  The assets identified in
  Annex 1 hereto (the “Put Portfolio II Annex”
  and each such asset a “Put Portfolio II
  Asset”).  The Put Portfolio
  II Assets shall consist of three categories:

   

  (I)                                   assets that
  were included in the total balance sheet assets of Party B as at September 30,
  2008, but are not Put Portfolio Assets under the Dexia Guaranteed Put
  Contract (each an “Excluded Asset”);

  

 

2

 

	
   

  	
   

  	
  (II)                               the other
  assets identified in Annex 1 hereto; provided that such Annex 1 shall be
  deemed amended from time to time to include any Permitted Investments
  purchased by Party B after the Effective Date (each an “Other Asset”);

   

  (III)                           any Put
  Portfolio Assets under the Dexia Guaranteed Put Contract which are in excess
  of the amounts eligible to be put to Party A under the Guaranteed Put
  Contract due to (i) expiration of the Sovereign Guarantee in relation to
  any Asset Default or (ii) limitations on the aggregate Put Settlement
  Amount that may be paid under the Dexia Guaranteed Put Contract following a
  Liquidity Default, Collateral Posting Default or Dexia Bankruptcy; provided
  that any principal amount of an asset can only be delivered once under either
  the Dexia Guaranteed Put Contract or this Transaction (such assets, “Excess Put Portfolio Assets”).

   

  The Put Portfolio II Annex
  shall identify the following information (if applicable) in relation to each
  Put Portfolio II Asset:  Issuer;
  CUSIP/ISIN; FSAM ID Number; Insurer; Put Portfolio II Asset; Applicable
  Percentage; Legal Final Maturity Date; Initial Face Amount; Original
  Principal Amount; Initial Factor; Underlying Policy.

   

  Each of (a) any Put
  Portfolio II Asset in relation to which a Put Settlement Date has occurred, (b) any
  Put Portfolio II Asset sold by Party B from time to time (other than under
  repurchase agreements as described in (ii) under “Representation as to
  Exposure” below) and (c) any Put Portfolio II Asset in relation to which
  a Call Settlement Date has occurred, will cease to constitute a Put Portfolio
  II Asset hereunder upon receipt of payment by or on behalf of Party B in
  respect of such Put Portfolio II Asset and (in the case of (a) and (c))
  delivery of such Put Portfolio II Asset pursuant to this Transaction, and
  will be deemed excluded from the Put Portfolio II Annex and cease to be
  eligible for further delivery by Party B under the Put Option or Call Option
  documented hereby, to the extent of the portion of the Outstanding Principal
  Amount of the Put Portfolio II Asset subject to such Put Settlement Date or
  sale or Call Settlement Date, effective as of such Put Settlement Date, date
  of such sale or such Call Settlement Date, as applicable. 

  

 

3

 

	
  2.

  	
  Put
  Premium Payments:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Premium Payer:

  	
  Party B

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Premium Rate:

  	
  .25% per annum.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Premium Period End Date:

  	
  Each June 30, September 30,
  December 31 or March 31.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Premium Calculation Periods:

  	
  Each period from (and
  including) a Put Premium Period End Date (or in the case of the first Put
  Premium Calculation Period, the Effective Date) to (but excluding) the next
  Put Premium Period End Date (or in the case of the last Put Premium
  Calculation Period, the Scheduled Termination Date).

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Premium Payment Dates:

  	
  The third Business Day
  after each Put Premium Period End Date.

   

  On each Put Premium
  Payment Date, Party B shall pay to Party A the Put Premium Amount determined
  for the Put Premium Calculation Period ending on the Put Premium Period End
  Date immediately preceding such Put Premium Payment Date, subject to funds
  being available for such distribution under the Priority of Payments.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Premium Amount:

  	
  With respect to any Put
  Premium Payment Date, an amount equal to the product of:

   

  (a)                                 the Put Premium Rate;

   

  (b)                                an amount determined by the Calculation Agent equal
  to:

   

  (i)                                    the aggregate Outstanding Principal Amount of the
  Put Portfolio II Assets as at 5:00 p.m. in the Calculation Agent City on
  each day in the applicable Put Premium Calculation Period; divided by

   

  (ii)                                 the actual number of days in the applicable Put
  Premium Calculation Period; and

   

  (c)                                 the actual number of days in the applicable Put
  Premium Calculation Period divided by 360.

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Put
  Triggers and Put Settlement

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Option:

  	
  Party A hereby grant Party
  B a put option in relation to each Put Portfolio II Asset exercisable in
  accordance with the terms hereof upon the occurrence of a relevant Put
  Trigger at any time during the Term

  

 

4

 

	
   

  	
   

  	
  of this Put Option
  Transaction (the “Put Option”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Triggers:

  	
  Party B (or FSA directly
  as third party beneficiary as provided in “Secured Party Exercise”) will have
  the right to cause exercise of the Put Option upon occurrence of any of the
  following events (each a “Put Trigger”)
  on any date during the Term of this Transaction:

   

  (a) if
  an Asset Default has occurred with respect to any Put Portfolio II Asset (an
  “Asset Default Trigger”);

   

  (b) if
  a Liquidity Default has occurred and is continuing (a “Liquidity Default Trigger”);

   

  (c) if
  a Collateral Posting Default has occurred and is continuing (a “Collateral Default Trigger”); or

   

  (d) if
  a Dexia Bankruptcy has occurred and is continuing (a “Bankruptcy Trigger”);

   

  (the date of any exercise
  of the Put Option a “Put Exercise Date”).  The Put Option may be exercised separately
  from time to time in relation to one or more separately occurring Put
  Triggers.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Exercise Amounts:

  	
  The Put Option may be
  exercised by Party B (or by FSA directly as third party beneficiary as
  provided in “Secured Party Exercise”):

   

  (a)                                  if the Put
  Option is exercised in relation to any Asset Default Trigger, with respect to
  the Outstanding Principal Amount of the Defaulted Asset;

   

  (b)                                 if the Put
  Option is exercised in relation to any Liquidity Default Trigger, with
  respect to an aggregate Outstanding Principal Amount of Put Portfolio II
  Assets selected by the Collateral Agent or by FSA directly as third party
  beneficiary as provided in “Secured Party Exercise”, equal to the relevant
  Defaulted Liquidity Amount, provided that in making such selection the
  Collateral Agent or FSA as third party beneficiary, as applicable, shall
  comply with the Maximum Asset Value Restriction;

   

  (c)                                  if the Put
  Option is exercised in relation to any Collateral Default Trigger, with
  respect to an aggregate Outstanding Principal Amount of Put Portfolio II
  Assets selected by the Collateral Agent or by FSA 

  

 

5

 

	
   

  	
   

  	
  directly
  as third party beneficiary as provided in “Secured Party Exercise”, equal to (x) 
  the relevant Defaulted Collateral Amount plus (y) the net Delivery
  Amount that would arise under the Credit Support Annex as a result of
  Delivery of the Put Settlement Assets on the Put Settlement Date, provided
  that in making such selection the Collateral Agent or FSA as third party
  beneficiary, as applicable, shall comply with the Maximum Asset Value
  Restriction; and

   

  (d)                                 if the Put
  Option is exercised in relation to a Bankruptcy Trigger, with respect to an
  Outstanding Principal Amount of Put Portfolio II Assets selected by the
  Collateral Agent or FSA directly as third party beneficiary as provided in
  “Secured Party Exercise”, equal to 100% of the aggregate Outstanding Principal
  Amount of all the Put Portfolio II Assets.

   

  (the relevant Outstanding
  Principal Amount of Put Portfolio II Assets with respect to which the Put
  Option has been exercised as described above on any date, subject to “Affected Collateral Delivery” below,  the “Put
  Settlement Assets”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Maximum Asset Value Restriction” means
  that the Collateral Agent or by FSA directly as third party beneficiary as
  provided in “Secured Party Exercise” shall select assets (which may or may
  not be Defaulted Assets) for which the weighted average of the most recently
  determined FSAM Asset Value is not more than 5% higher than the weighted
  average FSAM Asset Value of all remaining Put Portfolio  II Assets as a whole (provided that if it
  would not be possible to deliver Put Portfolio II Assets of such maximum
  average value due to minimum denomination restrictions, the Collateral Agent,
  or FSA directly as third party beneficiary as provided in “Secured Party
  Exercise,” shall only be required to select assets that comply with such
  limitation to the extent reasonably practicable).

  
	
   

  	
   

  	
   

  
	
   

  	
  Exercise
  Notice:

  	
  In relation to any exercise of the Put Option, Party B (or FSA
  directly as third party beneficiary as provided in “Secured Party Exercise”)
  will be required to provide to Party A and FSA at the notice addresses
  specified below, an exercise notice in the form of Annex 2 (the “Exercise Notice”) (which shall be
  delivered by email or facsimile, return receipt requested) which shall also
  include (i) in the case of an exercise of the Put Option in relation to
  an Asset Default Trigger, a servicer or trustee report, advice 

  

 

6

 

	
   

  	
   

  	
  from a paying agent, record of a clearance system, statement by a
  rating agency, or similar information documenting the relevant Interest
  Shortfall Amount, Principal Shortfall Amount or Writedown Amount (any a “Shortfall Amount”), (ii) in the case
  of an exercise of the Put Option in relation to an Liquidity Default Trigger,
  a calculation of the relevant Defaulted Liquidity Amount including evidence
  of the relevant notice or request for payment and confirmation by the
  Collateral Agent of nonreceipt of funds, (iii) in the case of an
  exercise of the Put Option in relation to a Collateral Default Trigger, a
  calculation of the relevant Defaulted Collateral Amount including evidence of
  the relevant demand for Transfer of a Delivery Amount and confirmation by the
  Collateral Agent of nonreceipt of such Delivery Amount, or (iv) in the
  case of an exercise of the Put Option in relation to a Bankruptcy Trigger, a
  calculation of the aggregate current Outstanding Principal Amount plus
  accrued interest of the Put Portfolio II Assets (each of (i), (ii), (iii) or
  (iv) in relation to any exercise of the Put Option the “Shortfall Information”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Secured Party Exercise:

  	
  Party A acknowledges and
  agrees that, without limitation of the rights of Party B hereunder:

   

  (a)                                  an Exercise
  Notice may be delivered by the Collateral Agent or by FSA directly as third
  party beneficiary under this Agreement (i) in relation to any Asset
  Default Trigger following a failure of Party B to deliver an Exercise Notice
  within five Business Days after the occurrence of the relevant Asset Default
  or (ii) in relation to any Liquidity Default Trigger, any Collateral Default
  Trigger or any Bankruptcy Trigger;

   

  (b)                                 the
  Collateral Agent or FSA directly as third party beneficiary under this
  Agreement may specify the related Put Exercise Amounts and select Put
  Portfolio II Assets in relation to any Liquidity Default Trigger, any
  Collateral Default Trigger or any Bankruptcy Trigger and deliver any
  Shortfall Information (whether or not it delivered the related Exercise
  Notice); and

   

  (c)                                  FSA directly
  as third party beneficiary under this Agreement may make demands and request
  and dispute valuations as set forth in the Credit Support Annex.

  
	
   

  	
   

  	
   

  
	
   

  	
  Defaulted
  Asset:

  	
  A Put Portfolio II Asset
  in relation to which an Asset Default has occurred.

  
	
   

  	
   

  	
   

  
	
   

  	
  Asset
  Default:

  	
  The occurrence of a
  Failure to Pay Principal, Interest Shortfall or Writedown.

  

 

7

 

	
   

  	
  Liquidity
  Default:

  	
  A payment default by Dexia
  or any of its Affiliates under any Guaranteed Liquidity Facility, including
  without limitation a failure to pay an Accelerated Downgrade Liquidity Draw
  by the Accelerated Downgrade Liquidity Draw Deadline on the relevant date (a
  “Deemed Downgrade Liquidity Default”).  The amount of any and all such failures to
  pay (i.e., the unpaid amount)
  on any date (net of any partial payments by Dexia or its Affiliates) is the “Defaulted Liquidity Amount II”; provided,
  however, that prior to 31 October 2011, the Defaulted Liquidity Amount
  II shall be decreased by any Defaulted Liquidity Amount applicable under the
  Dexia Guaranteed Put Contract on the same date (provided that no Event of
  Default has occurred under the Dexia Guaranteed Put Contract in relation to
  the payment of a Put Settlement Amount with respect to such Defaulted
  Liquidity Amount).

   

  To the extent that the
  occurrence of a default under any Guaranteed Liquidity Facility is subject to
  the expiration of a grace period for payment, such grace period shall be
  deemed to have expired on the earlier of (i) its stated expiration date
  or (ii) the Business Day immediately preceding the Liquidity and
  Collateral Trigger Expiration Date.

   

  “Guaranteed
  Liquidity Facilities”
  means each of (i) the Liquidity Facility and the Repurchase Agreement
  Facility, in accordance with their terms as of the Effective Date (the “Existing Facilities”) and (ii) any
  additional liquidity facilities between Party B and either DCL or Dexia Bank
  Belgium SA (including any successors thereto by reason of Corporate
  Reorganization or any Affiliates thereof to whom their obligations are
  transferred in accordance with the terms of such Existing Facilities) entered
  into from time to time after the Effective Date, that are in substantially
  the same form as the Existing Facilities and are entered into for the purpose
  of providing liquidity to meet Party B’s payment obligations (including
  obligations to meet collateral posting requirements under the GICs) under the
  Master Repurchase Agreement to the GIC Issuers to service the GICs, if the
  aggregate maximum commitment amount of such facilities, when added to the
  maximum commitment amount of the Existing Facilities, does not exceed the GIC
  Balance on the date any such additional facilities are entered into.

  
	
   

  	
   

  	
   

  
	
   

  	
  Collateral
  Posting  Default:

  	
  A failure to Transfer
  Eligible Collateral having a Value equal to a required Delivery Amount on any
  date, in each case within the time required under Paragraph 4(b) of the
  Credit Support Annex.  The 

  

 

8

 

	
   

  	
   

  	
  amount of any such failure
  to Transfer on any date (net of any partial amounts Transferred by Dexia or
  its Affiliates) is the “Defaulted
  Collateral Amount II”; provided, however, that prior to 31 October 2011,
  the Defaulted Collateral Amount II shall be decreased by any Defaulted
  Collateral Amount applicable under the Dexia Guaranteed Put Contract on the
  same date (provided that no Event of Default has occurred under the Dexia
  Guaranteed Put Contract in relation to the payment of a Put Settlement Amount
  with respect to such Defaulted Collateral Amount).

   

  With respect to any date
  which falls during a period which is (A) not on or after a Sovereign
  Guarantee Unenforceability Date (as defined in the Dexia Guaranteed Put
  Contract) and (B) (I) on and after the First Collateral Posting
  Date and prior to the Liquidity and Collateral Trigger Expiration Date or (II) during
  a period that a DCL Bankruptcy has occurred and is continuing (a “No DCL Collateral Period”), (i) any
  Eligible Collateral Transferred by DCL, whether at any time before or during
  such No DCL Collateral Period, will be deemed to have a Value of zero during
  such No DCL Collateral Period (any such Eligible Collateral on any date
  during the No DCL Collateral Period the “Affected
  DCL Collateral”) and (ii) only postings made by Dexia
  (whether made at any time before or during such No DCL Collateral Period, and
  including by substitution in accordance with the Credit Support Annex of
  Eligible Collateral posted by Dexia for Eligible Collateral posted by DCL)
  will be considered in calculating any applicable Delivery Amount and whether
  the obligation to Transfer Eligible Collateral with a Value equal to such
  Delivery Amount has been met during such No DCL Collateral Period; provided,
  that such Affected DCL Collateral shall be Transferred to DCL against the
  simultaneous delivery of replacement Eligible Collateral by Dexia.

   

  With respect to any date
  which falls during a period which is (A) on or after a Sovereign
  Guarantee Unenforceability Date and (B) not during a period that a DCL
  Bankruptcy has occurred and is continuing (a “No Dexia Collateral Period”), (i) any Eligible Collateral
  Transferred by Dexia, whether at any time before or during such No Dexia
  Collateral Period, will be deemed to have a Value of zero during such No
  Dexia Collateral Period (any such Eligible Collateral on any date during the
  No Dexia Collateral Period the “Affected
  Dexia Collateral”) and (ii) only postings made by DCL
  (whether made at any time before or during such No Dexia Collateral Period,
  and including by substitution in accordance with the Credit Support Annex of
  Eligible Collateral posted by DCL for

  

 

9

 

	
   

  	
   

  	
  Eligible
  Collateral posted by Dexia) will be considered in calculating any applicable
  Delivery Amount and whether the obligation to Transfer Eligible Collateral
  with a Value equal to such Delivery Amount has been met during such No Dexia
  Collateral Period; provided, that such Affected Dexia Collateral shall be
  Transferred to Dexia against the simultaneous delivery of replacement
  Eligible Collateral by DCL.

  
	
   

  	
   

  	
   

  
	
   

  	
  Affected
  Collateral Delivery:

  	
  In relation to any Put
  Settlement Date arising from a Collateral Default Trigger occurring during a
  No DCL Collateral Period or No Dexia Collateral Period, the Put Settlement
  Assets shall include, in addition to the Put Settlement Assets selected by
  the Collateral Agent or FSA as third party beneficiary, as applicable, under (c) of
  “Put Exercise Amount” above, the relevant Affected DCL Collateral or Affected
  Dexia Collateral as of the date of occurrence of the relevant Collateral
  Default Trigger.

  
	
   

  	
   

  	
   

  
	
   

  	
  Dexia
  Bankruptcy:

  	
  As defined in the Schedule
  to the Dexia Guaranteed Put Contract. 
  The exercise of the Put Option following a Bankruptcy Trigger is not
  to be construed as the designation of an Early Termination Date, nor does
  exercise of the Put Option following a Bankruptcy Trigger prejudice to the
  right of Party B to designate an Early Termination Date subsequent to the Put
  Settlement Date for such Bankruptcy Trigger in the event that any Event of
  Default has occurred or is continuing after such Put Settlement Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  First
  Collateral Posting Date:

  	
  29 September 2011.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Settlement:

  	
  On (x) the second
  Business Day after the relevant Put Exercise Date or (y) in the case of
  an Accelerated Downgrade Liquidity Default Exercise on the first Business Day
  after the Put Exercise Date (as applicable, the “Put Settlement Date”) and subject to “Deferred Settlement
  Election” below, Party B or the Collateral Agent on behalf of Party B will
  Deliver to DCL or Dexia, as applicable, the relevant Put Settlement Assets,
  against payment of the Put Settlement Amount to Party B by Party A (such
  payment to occur by the time specified in the last paragraph under “Put Settlement Amount”).  In the event that the Defaulted Liquidity
  Amount on the Put Exercise Date includes both amounts arising from an
  Accelerated Downgrade Liquidity Draw and other unpaid amounts under one or
  more Guaranteed Liquidity Facilities, separate Put Settlement Dates shall
  occur in relation to each relevant portion of the Put Exercise Amount.

   

  “Accelerated Downgrade Liquidity Default 

  

 

10

 

	
   

  	
   

  	
   

  	
  Exercise” means an
  exercise of the Put Option as a result of a Liquidity Default Trigger which
  occurs due to a Deemed Downgrade Liquidity Default.

   

  Delivery of Put Settlement
  Assets will be effected by an escrow, custody or similar arrangement with the
  Collateral Agent, such that the Put Settlement Assets will be Delivered by
  the Collateral Agent and the Put Settlement Amount will be paid to Party B,
  but the Put Settlement Assets will be Delivered (i) to Dexia if the Put
  Settlement Amount is paid to Party B by Dexia or, (ii) to DCL if the Put
  Settlement Amount is paid to Party B by DCL.

   

  “Deliver” means to
  deliver, novate, transfer, assign or sell, as appropriate, in the manner
  customary for the settlement of the applicable Put Settlement Assets (which
  shall include executing all necessary documentation and taking any other
  necessary actions), in order to convey all right, title and interest in the
  Put Settlement Assets to Dexia or DCL, as applicable, free and clear of any
  and all liens, charges, claims or encumbrances; provided that, Dexia and DCL
  each hereby waive any right to object to the Delivery of a Put Settlement
  Asset (i) as failing to be free and clear of liens, charges, claims or
  encumbrances or (ii) for breach of any implied or express representation
  or warranty hereunder, except in the case of a lien, charge, claim or
  encumbrance that is predominantly attributable to actions of FSA taken after
  the Effective Date.

   

  Without limitation of the
  foregoing, in relation to Put Settlement Assets which may be subject to a
  pledge or lien, Party A agrees that the settlement of the payment of the Put
  Settlement Amount by Party A and Delivery of the Put Settlement Assets by
  Party B may be effected by means of an undertaking by the Collateral Agent,
  acting as an escrow agent, custodian or in a similar capacity, to deliver
  such Put Settlement Assets to Party A following receipt of a payment
  hereunder (whether by treating such payment as a discharge of the relevant
  pledge or lien, as a substitution of cash collateral in place of such Put
  Settlement Assets for purposes of the relevant pledge agreement, or
  otherwise).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Delayed
  Delivery Following DCL Belgian Corporate Reorganization:

  	
   

  	
  In the event that a Put
  Settlement Date occurs (i) on or after a DCL Belgian Corporate
  Reorganization has occurred and (ii) on a date on which the relevant Put
  Settlement Amount would constitute a Pre-Collateral Posting Payment, and
  except in the case of a Put Settlement under which the Put Settlement Amount
  is paid to Party B by the Sovereign Guarantors, (A) Party A will be
  required to pay the Put Settlement 

  

 

11

 

	
   

  	
   

  	
   

  	
  Amount on the Put
  Settlement Date, (B) Party B will not be required to Deliver the related
  Put Settlement Assets until the date following the Put Settlement Date on
  which the Belgian Preference Period has expired and (C) pending such
  Delivery on the date referred to in (B), Party A will be deemed to have
  pledged the relevant Put Settlement Assets to Party B and Party B shall hold
  such Put Settlement Assets as additional Posted Collateral under the Credit
  Support Annex and treated as Repledged Assets thereunder.

   

  “DCL Belgian Corporate Reorganization”
  means any occurrence of a Corporate Reorganization (as defined in the
  Schedule) with respect to DCL such that Belgium is the jurisdiction of
  organization of DCL following such Corporate Reorganization.

   

  “Belgian Preference Period” means 6
  months, or if the period of time specified in Article 12 of the Belgian
  Bankruptcy Act of 8 August 1997 is amended, such amended period of time.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DCL Delivery:

  	
   

  	
  DCL agrees that any Put
  Settlement Assets delivered to DCL hereunder which may be required to be
  delivered outside the United States or to non- United States persons, or with
  respect to which for any other reason delivery of such Put Settlement Asset
  in New York is impracticable, may at Party B’s election be delivered to a
  registered office of Dexia
  Crédit Local S.A. outside of the United States.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Put Settlement Amount:

  	
   

  	
  An amount equal to 100% of
  the Outstanding Principal Amount of the Put Settlement Assets Delivered on
  the Put Settlement Date (other than any Affected DCL Collateral or Affected
  Dexia Collateral), plus (without duplication) (i) any Interest Shortfall
  Amount, Principal Shortfall Amount or Writedown Amount accrued but not yet
  paid hereunder as of the Put Settlement Date and (ii) accrued and unpaid
  interest (except to the extent already paid to Party B pursuant to a Deferred
  Settlement Election or under (i)) through the Put Settlement Date (in each
  case converted if applicable to USD at the Specified Currency Rate).

   

  The Put Settlement Asset
  Delivered on each Put Settlement Date will include the right to receive all
  accrued and unpaid interest in respect of the Outstanding Principal Amount of
  the Put Settlement Assets Delivered.

   

  The obligation to pay any
  Put Settlement Amount pursuant to an Exercise Notice delivered prior to the
  occurrence of the Scheduled Termination Date shall survive the occurrence of
  the Scheduled Termination 

  

 

12

 

	
   

  	
   

  	
   

  	
  Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  In the case of an
  Accelerated Downgrade Liquidity Default Exercise, Party A will pay the Put
  Settlement Amount to Party B not later than 9:00 am New York City time on the
  Put Settlement Date.  In all other
  cases, Party A will pay the Put Settlement Amount to Party B not later than
  4:00 pm Central European Time on the Put Settlement Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cure of Defaulted Liquidity Amount or Defaulted Collateral
  Amount:

  	
   

  	
  Notwithstanding exercise
  of the Put Option in relation to a Liquidity Default Trigger or Collateral
  Default Trigger, if the related Defaulted Liquidity Amount or Defaulted
  Collateral Amount has been cured in full on or prior to the relevant Put
  Settlement Date, the Put Settlement Date shall not occur and the Exercise
  Notice in relation thereto shall be deemed withdrawn.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Deferred Settlement Right:

  	
   

  	
  In relation to any Put
  Exercise Date arising from an Asset Default Trigger, Party A may give a
  notice to Party B (with a copy to FSA), on or before the Put Settlement Date,
  electing to defer the Put Settlement Date (a “Deferred Settlement Election”) for any period of time prior
  to the earliest of (i) the Final Amortization Date and (ii) the Legal
  Final Maturity Date of the Defaulted Asset, provided that during such period
  Party A shall periodically pay to Party B any Shortfall Amounts with respect
  to such Defaulted Asset on or before:

   

  (I) in
  the case of the Put Portfolio Asset Payment Date occurring on or immediately
  preceding the Asset Default Trigger, the third Business Day following the Put
  Exercise Date, and

   

  (II) in
  the case of each Put Portfolio Asset Payment Date occurring after the Put
  Portfolio Asset Payment Date in (I), (A) if a Dexia Event of Default has
  occurred and FSA is acting as the Secured Party Representative , the third
  Business Day after the later of (i) the date such amounts are determined
  under the provisions of the Underlying Instruments and holders of the
  Defaulted Asset have been notified of such determination or (ii) the
  date of receipt of the relevant Shortfall Information by Party A or (B) otherwise,
  the third Business Day after the earlier of (i) the date such amounts
  are determined under the provisions of the Underlying Instruments and holders
  of the Defaulted Asset have been notified of such determination or (ii) the
  date of receipt of the relevant Shortfall Information by Party A (each a “Shortfall Payment Date”).

   

  On any date after Dexia or
  DCL has made a payment 

  

 

13

 

	
   

  	
   

  	
   

  	
  of Shortfall Amounts pursuant to a Deferred
  Settlement Election, such Deferred Settlement Election shall continue in
  effect and need not be renewed or repeated in relation to subsequent Asset
  Default Triggers for the same Put Portfolio II Asset, provided that (a) Party
  A may cause the Put Settlement Date to occur with respect to the related
  Defaulted Asset upon two Business Days’ prior notice to Party B, the
  Collateral Agent and FSA, and (b) the Put Settlement Date shall occur
  immediately with respect to the related Defaulted Asset if (i) Dexia
  does not pay a Shortfall Amount (and DCL also does not pay such amount) and (ii) Dexia
  does not cure such failure within 2 Business Days after receipt of a notice
  from Party B requiring that the Put Settlement Date be accelerated.

   

  For the avoidance of
  doubt, no Deferred Settlement Election may be made with respect to any
  Defaulted Assets selected in connection with any Put Option related to a
  Liquidity Default Trigger, a Collateral Default Trigger or a Bankruptcy
  Trigger.

   

  The
  obligation to pay any Shortfall Amounts and Put Settlement Amount pursuant to
  a Deferred Settlement Election exercised prior to the occurrence of the
  Scheduled Termination Date shall survive the occurrence of the Scheduled
  Termination Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Currency
  Conversion:

  	
   

  	
  In
  relation to any Put Settlement Asset not denominated in USD, the Put
  Settlement Amount and any Shortfall Amount shall still be denominated in USD,
  such amount to be determined by conversion of the Outstanding Principal
  Amount plus accrued interest, or Shortfall Amount, as applicable, at the
  Specified Currency Rate.

  

 

14

 

	
  4.

  	
  Call Right

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Call Option:

  	
   

  	
  Party B hereby grants to
  Party A, a call option in relation to each Put Portfolio II Asset exercisable
  in accordance with the terms hereof on any Business Day (the “Call Option”).  The Call Option may be exercised by Party A
  only if there shall not have occurred any Dexia Event of Default, and, prior
  to the Liquidity and Collateral Expiration Date, only by DCL.  In any event, no purported exercise of the
  Call Option shall be valid unless Party A shall deliver to Party B
  information from the Valuation Agent demonstrating that Party A has
  Transferred Eligible Collateral to the Custodian in an amount sufficient that
  no Delivery Amount would result or be outstanding after the exercise and
  settlement of the Call Option.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exercise
  Notice:

  	
   

  	
  In relation to any exercise of the Call Option, Party A will be
  required to provide to Party B, an exercise notice in the form of Annex 3
  (the “Call Notice”).  The
  Call Notice shall specify the Put Portfolio II Assets proposed to be
  purchased by Party A (the “Call Settlement Assets”). 
  Delivery of a Call Notice is irrevocable and shall constitute an
  indefeasible agreement to purchase the related Call Settlement Assets.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Call
  Settlement:

  	
   

  	
  Settlement of the Call
  Option shall occur on the second Business Day after the delivery to Party B of
  the Call Notice (such date, the “Call
  Settlement Date”).  On the
  Call Settlement Date, the Collateral Agent will Deliver to DCL or Dexia, as
  applicable, the relevant Call Settlement Assets against payment of the Call
  Settlement Amount to Party B by Party A. 
  If Party A fails to pay the Call Settlement Amount, the Call Option
  will fail and the related Call Settlement Assets will not be delivered to
  Party A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Call
  Settlement Amount:

  	
   

  	
  At the election of Party
  A, in respect of the Call Settlement Asset, an amount equal to (A) either
  (x) 100% of the Outstanding Principal Amount or (y) the Mark to
  Market Value of the Call Settlement Assets Delivered on the Call Settlement
  Date (provided that if a DCL Belgian Corporate Reorganization has occurred,
  clause (x) shall not apply), plus (B) (i) any Interest
  Shortfall Amount, Principal Shortfall Amount or Writedown Amount accrued but
  not yet paid hereunder as of the Call Settlement Date plus, without
  duplication (ii) accrued and unpaid interest through the Call Settlement
  Date (in each case converted if applicable to USD at the Specified Currency
  Rate).

   

  The Call Settlement Asset
  Delivered on each Call Settlement Date will include the right to receive all 

  

 

15

 

	
   

  	
   

  	
   

  	
  accrued and unpaid
  interest in respect of the Outstanding Principal Amount of the Call
  Settlement Assets Delivered.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Currency
  Conversion:

  	
   

  	
  In relation to any Call
  Settlement Asset not denominated in USD, the Call Settlement Amount shall
  still be denominated in USD, such amount to be determined by conversion of
  the Outstanding Principal Amount or Value, as the case may be, plus accrued
  interest at the Specified Currency Rate.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Multiple Exercise:

  	
   

  	
  For the avoidance of doubt, the parties agree that with respect to this Call
  Option Transaction and notwithstanding anything to the contrary in the 2000
  Definitions, multiple Call Settlement Dates may occur and multiple Call
  Settlement Amounts may be payable by Party A.

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Additional Provisions:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Representation as to Exposure:

  	
   

  	
  Party
  B represents to Party A in relation to the Excluded Assets that on the
  Effective Date Party B either (i) beneficially owns the relevant
  Excluded Asset or (ii) is obligated to purchase such Excluded Asset
  under a repurchase agreement through which the purchase of the Excluded Asset
  by Party B has been financed (or refinanced), with the result that (x) such
  Excluded Asset is included in Party B’s balance sheet assets and (y) any
  income deriving from the Excluded Asset accrues to Party B.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Obligations of Party A Unconditional:

  	
   

  	
  In
  relation to its payment obligations under this Put Option Transaction each of Dexia and DCL waives
  all rights (whether by counterclaim, setoff or otherwise) and defenses
  (including, without limitation, the defense of fraud), to the extent that
  such rights and defenses may be available to Party A to avoid payment of
  their respective obligations under this Put Option Transaction in accordance
  with its terms (but subject to Party A’s right to receive Delivery of the Put
  Settlement Assets on any Put Settlement Date and the Call Settlement Assets
  on any Call Settlement Date).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subrogation Rights:

  	
   

  	
  Subject
  to and conditioned upon payment by DCL or Dexia, as applicable, in connection
  with a Deferred Settlement Election, DCL or Dexia, as applicable, shall be
  subrogated to the rights of Party B to receive reimbursement from the Issuer
  of the relevant Put Settlement Asset for the relevant Interest Shortfall,
  Principal Shortfall or Writedown Amount and to exercise any right, power or
  the like of Party B with respect thereto, provided that DCL or Dexia (as the
  case may be) may not exercise such subrogation rights unless at such time the
  Subordinated Claims Payment 

  

 

16

 

	
   

  	
   

  	
   

  	
  Condition
  is satisfied.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Multiple Exercise:

  	
   

  	
  For the avoidance of doubt, the parties agree that with respect to this Put
  Option Transaction and notwithstanding anything to the contrary in the 2000
  Definitions, multiple Put Settlement Dates may occur and multiple Put
  Settlement Amounts may be payable by Party A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Calculation Agent
  Determinations:

  	
   

  	
  The Calculation Agent shall be responsible
  for determining and calculating (i) the Put Premium Amount payable on
  each Put Premium Payment Date; and (ii) the determination of Shortfall
  Amounts and providing the Shortfall Information; provided that
  notwithstanding the above, each of FSA, the Collateral Agent, Party B and
  Party A shall be entitled to determine and calculate the above amounts to the
  extent that FSA, the Collateral Agent, Party B or Party A, as applicable,
  have the right to deliver a notice to the other party demanding payment of
  such amount.  The Calculation Agent,
  FSA, the Collateral Agent, Party B or Party A, as applicable, shall make such
  determinations and calculations based solely on the basis of the Servicer
  Reports, to the extent such Servicer Reports are reasonably available to the
  Calculation Agent, FSA, the Collateral Agent, Party B or Party A, as
  applicable.  The Calculation Agent,
  FSA, the Collateral Agent, Party B or Party A, as applicable, shall, as soon
  as practicable after making any of the determinations or calculations
  specified in (i) and (ii) above, notify FSA and the parties or the
  other party, as applicable, of such determinations and calculations. For the
  avoidance of doubt, if an Interest Shortfall Amount is not explicitly set out
  in the Servicer Report but the Calculation Agent determines that an Interest
  Shortfall has occurred on the basis of information in such Servicer Report,
  then the relevant Interest Shortfall Amount shall be calculated and reported
  by the Calculation Agent on the basis of such information.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Adjustment
  of Calculation Agent Determinations

  	
   

  	
  To the extent that a Servicer furnishes any
  Servicer Reports correcting information contained in previously issued
  Servicer Reports, and such corrections impact calculations pursuant to this
  Put Option Transaction, the calculations relevant to this Put Option
  Transaction shall be adjusted retroactively by the Calculation Agent to
  reflect the corrected information (provided that, for the avoidance of doubt,
  no amounts in respect of interest shall be payable by either party and
  provided that the Calculation Agent in performing the calculations pursuant
  to this paragraph will assume that no interest has accrued on any adjusted
  amount), and the Calculation Agent shall promptly notify both parties and FSA
  of any corrected payments required by either party. Any required corrected
  payments shall be 

  

 

17

 

	
   

  	
   

  	
   

  	
  made within five Business Days of the day on
  which such notification by the Calculation Agent is effective.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Excluded
  Asset Reporting:

  	
   

  	
  On any Put Settlement Date or Shortfall
  Payment Date, the Calculation Agent shall determine and report to Party A (i) the
  portion of any Shortfall Amounts payable on such Shortfall Payment Date which
  are related to Excluded Assets (each an “Excluded
  Asset Shortfall Amount”) and (ii) the portion of any Put Settlement
  Amounts payable on such Put Settlement Date which are related to Excluded
  Assets (each any “Excluded Asset Put
  Settlement Amount”).  For
  the avoidance of doubt the determination or allocation of Excluded Asset
  Shortfall Amounts and Excluded Asset Put Settlement Amounts shall have no
  effect on the payment obligations of Party A hereunder in relation to any
  Other Assets, Excess Put Portfolio Assets or otherwise.

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Notices and Account Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notices to Party B:

  	
   

  	
  As set forth in the Schedule

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notices to Party A:

  	
   

  	
  As set forth in the Schedule

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Account Details of
  Party B:

  	
   

  	
  The FSAM Cash Account (as defined in the
  Pledge and Administration Agreement)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Account Details of
  Party A:

  	
   

  	
  To be advised in writing by Party A

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Additional Definitions:

  	
   

  	
   

  

 

For the purposes of this Put
Option Transaction only, the following terms have the meanings given below:

 

“Accelerated Downgrade Liquidity Draw”
has the meaning specified in the relevant Guaranteed Liquidity Facility.

 

“Accelerated Downgrade Liquidity Draw
Deadline” means 9:00 am, New York City time on the first Business
Day after the date on which the relevant Accelerated Downgrade Liquidity Draw
is deemed requested (under the terms of the relevant Guaranteed Liquidity Facility).

 

“Actual Interest Amount” means, with respect
to any Put Portfolio II Asset Payment Date, payment by or on behalf of the
Issuer of an amount in respect of interest due under the Put Portfolio II Asset
(including, without limitation, any deferred interest or default interest but
excluding payments in respect of prepayment penalties, yield maintenance
provisions or principal, except that the Actual Interest Amount shall include
any payment of principal representing capitalized interest) to the holder(s) of
the Put Portfolio II Asset in respect of the Put Portfolio II Asset.

 

“Actual Principal Amount” means, with
respect to the Final Amortization Date, Principal Installment Date or the Legal
Final Maturity Date, an amount paid on such day by or on behalf of the Issuer
in respect of principal (excluding any amount representing capitalized
interest) to the holder(s)

 

18

 

of the Put Portfolio
II Asset in respect of the Put Portfolio II Asset.

 

“Applicable Percentage” means in relation to
any Put Portfolio II Asset the percentage indicated as such in the Put
Portfolio II Annex.

 

“Collateral Agent” has the meaning specified in the Pledge
and Administration Agreement.

 

“DCL Bankruptcy” means the occurrence with
respect to DCL of an event described in Section 5(a)(vii), provided,
however, that subclause (4) of Section 5(a)(vii) shall be
amended so that the reference to “30 days” in subclause (4)(B) of Section 5(a)(vii) shall
refer to “60 days”.

 

“Effective Maturity Date” in relation to any
Put Portfolio II Asset means the earlier of the Legal Final Maturity Date or
Final Amortization Date, each as subject to adjustment in accordance with the
Following Business Day Convention, in relation to such Put Portfolio II Asset.

 

“Expected Interest Amount” means, with
respect to any Put Portfolio II Asset Payment Date, the amount of current
interest that would accrue during the related Put Portfolio II Asset
Calculation Period calculated using the Put Portfolio II Asset Coupon on a
principal balance of the Put Portfolio II Asset equal to (measured as of the
first day of the related Put Portfolio II Asset Calculation Period) the
Outstanding Principal Amount taking into account any reductions due to a
principal deficiency balance or realized loss amount (however described in the
Underlying Instruments) that are attributable to the Put Portfolio II Asset,
and that will be payable on the related Put Portfolio II Asset Payment Date
assuming for this purpose that sufficient funds are available therefor in
accordance with the Underlying Instruments.

 

Except as provided in
the previous sentence, the Expected Interest Amount shall be determined without
regard to (i) unpaid amounts in respect of accrued interest on prior Put
Portfolio II Asset Payment Dates; (ii) any prepayment penalties or yield
maintenance provisions; or (iii) the effect of any provisions (however
described) of such Underlying Instruments that otherwise permit the limitation
of due payments to distributions of funds available from proceeds of the
Underlying Assets, or that provide for the capitalization or deferral of
interest on the Put Portfolio II Asset, or that provide for the extinguishing
or reduction of such payments or distributions or (iv) any “available
funds cap” or “net WAC cap” or similar provision of the Underlying Instruments
(each a “Limitation Provision”)
(but, for the avoidance of doubt, taking account of any Writedown within the
definition of “Writedown” occurring in accordance with the Underlying
Instruments).

 

For the purposes of
calculating the Expected Interest Amount, and notwithstanding any other
provision herein, the Put Portfolio II Asset Coupon shall be deemed to include
any cap stated in the Underlying Instrument that is not a Limitation Provision
(but any “available funds cap” or “net WAC cap” or similar provision of the
Underlying Instruments shall be deemed to constitute a Limitation Provision and
not a cap as described in this sentence).

 

“Expected Principal Amount” means (A) with
respect to the Final Amortization Date or the Legal Final Maturity Date, an
amount equal to (i) the Outstanding Principal Amount of the Put Portfolio
II Asset payable on such day (excluding any amount representing capitalized
interest) assuming for this purpose that sufficient funds are available for
such payment, where such amount shall be determined in accordance with the
Underlying Instruments, minus (ii) the net aggregate principal deficiency
balance or realized loss amounts (however described in the Underlying
Instruments) that are attributable to the Put Portfolio II Asset and (B) with
respect to any Principal Installment Date, the Principal Installment Amount for
such Principal Installment Date.  The
Expected Principal Amount shall be determined without regard to the effect of
any provisions (however described) of the Underlying Instruments that permit
the limitation of due payments or distributions of funds in accordance with the
terms of such Put Portfolio II Asset or that provide for the extinguishing or
reduction of such payments or distributions.

 

“Failure to Pay Principal” means (i) a
failure by the Issuer (and any applicable Insurer) to pay an 

 

19

 

Expected Principal
Amount on the Final Amortization Date, the Legal Final Maturity Date or a Principal
Installment Date, as the case may be, or (ii) payment on any such day of
an Actual Principal Amount that is less than the Expected Principal Amount;
provided that the failure by the Issuer (and any applicable Insurer) to pay any
such amount in respect of principal in accordance with the foregoing shall not
constitute a Failure to Pay Principal if such failure has been remedied within
any grace period applicable to such payment obligation under the Underlying
Instruments or, if no such grace period is applicable, within five Business
Days after the day on which the Expected Principal Amount was scheduled to be
paid.

 

“Final Amortization Date” means the first to
occur of (i) the date on which the Put Portfolio II Asset Principal Amount
is reduced to zero and (ii) the date on which the Underlying Assets owned
or held by the Issuer are liquidated, distributed or otherwise disposed of in
full and the proceeds thereof are distributed or otherwise disposed of in full.

 

“GICs” means the guaranteed investment
contracts (including guaranteed investment contracts in the form of repurchase
agreements) entered into by the GIC Issuers on or prior to the Effective Date
and listed on Annex 4 hereto.

 

“GIC Balance” means on any date of
determination the aggregate outstanding principal balance of the GICs as most
recently reported under the Pledge and Administration Agreement on such date.

 

“GIC Issuers” means FSA Capital Markets
Services (Caymans) Limited, FSA Capital Management Services LLC and FSA Capital
Markets Services LLC.

 

“Initial Face Amount” means in relation to
any Put Portfolio II Asset the amount indicated as such in the Put Portfolio II
Annex.

 

“Initial Factor” means in relation to any
Put Portfolio II Asset the factor indicated as such in the Put Portfolio II
Annex.

 

“Interest Shortfall” means, with respect to
any Put Portfolio II Asset Payment Date, either (a) the non-payment of an Expected
Interest Amount or (b) the payment of an Actual Interest Amount that is
less than the Expected Interest Amount. 
For the avoidance of doubt, the occurrence of an event within (a) or
(b) shall be determined taking into account any payment made under the
Underlying Policy, if applicable.

 

“Interest Shortfall Amount” means with
respect to any Put Portfolio II Asset Payment Date, an amount equal to the
greater of:

 

(a)                                  zero; and

 

(b)                                 the amount equal to
the product of:

 

(i)                                     (A)                              the Expected Interest
Amount;

 

minus

 

(B)                                the Actual Interest Amount;
and

 

(ii)                                  the Applicable
Percentage.

 

“Insurer” means in relation to any Put
Portfolio II Asset the entity indicated as such, if any, in the Put Portfolio
II Annex.

 

“Issuer” means in relation to any Put Portfolio
II Asset the entity indicated as such in the Put Portfolio II Annex.

 

“Legal Final Maturity Date” means in
relation to any Put Portfolio II Asset the date set out in the

 

20

 

Put Portfolio II Annex
(subject, for the avoidance of doubt, to any business day convention applicable
to the legal final maturity date of the Put Portfolio II Asset), provided that
if the legal final maturity date of the Put Portfolio II Asset is amended, the
Legal Final Maturity Date shall be such date as amended.

 

“Liquidity
Facility” has the meaning specified in the Pledge and Administration
Agreement.

 

“Master Repurchase Agreement” means the
Master Repurchase Agreement, dated as of June 30, 2009, among Party B,
each GIC Issuer and FSA as third party beneficiary, as the same may be
replaced, refinanced, or amended, supplemented or otherwise modified from time
to time.

 

“Original
Principal Amount” means in relation to any Put Portfolio II Asset
the amount indicated as such in the Put Portfolio II Annex.

 

“Outstanding Principal Amount” means, as of
any date of determination with respect to the Put Portfolio II Asset, the
outstanding principal balance of the Put Portfolio II Asset as of such date,
which shall take into account:

 

(i)                                     all payments of
principal;

 

(ii)                                  all writedowns or
applied losses (however described in the Underlying Instruments) resulting in a
reduction in the outstanding principal balance of the Put Portfolio II Asset
(other than as a result of a scheduled or unscheduled payment of principal);

 

(iii)                               forgiveness of any
amount by the holders of the Put Portfolio II Asset pursuant to an amendment to
the Underlying Instruments resulting in a reduction in the outstanding
principal balance of the Put Portfolio II Asset;

 

(iv)                              any payments reducing
the amount of any reductions described in (ii) and (iii) of this
definition; and

 

(v)                                 any increase in the
outstanding principal balance of the Put Portfolio II Asset that reflects a
reversal of any prior reductions described in (ii) and (iii) of this
definition; and

 

(vi)                              any increase in the
outstanding principal balance of the Put Portfolio II Asset that is
attributable to the deferral or capitalization of interest prior to the
Effective Date.

 

For the avoidance of doubt, the Outstanding
Principal Amount shall not include any portion of the outstanding principal
balance of the Put Portfolio II Asset that is attributable to the deferral or
capitalization of interest on or after the Effective Date.

 

“Principal
Installment Amount” means, with respect to any Put Portfolio II
Asset having scheduled installment dates for the repayment of principal, and a
Principal Installment Date, the amount of the relevant installment of principal
payable on such Principal Installment Date.

 

“Principal
Installment Date” means, with respect to any Put Portfolio II Asset
having scheduled installment dates for the repayment of principal, each such
scheduled installment date (other than any Legal Final Maturity Date or Final
Amortization Date).

 

“Principal Payment” means, with respect to
any Put Portfolio II Asset Payment Date, the occurrence of a payment of an
amount to the holders of the Put Portfolio II Asset in respect of principal
(scheduled or unscheduled) in respect of the Put Portfolio II Asset other than
a payment in respect of principal representing capitalized interest.

 

“Principal Payment Amount” means, with
respect to any Put Portfolio II Asset Payment Date, an amount equal to the
product of (i) the amount of any Principal Payment on such date and (ii) the
Applicable Percentage.

 

21

 

“Principal Shortfall Amount” means, in
respect of a Failure to Pay Principal, an amount equal to the greater of:

 

(i)                                     zero; and

 

(ii)                                  the amount
equal to the product of:

 

(A)                              the Expected
Principal Amount minus the Actual Principal Amount; and

 

(B)                                the Applicable
Percentage.

 

If the Principal Shortfall Amount would be
greater than the Put Portfolio II Asset Principal Amount immediately prior to
the occurrence of such Failure to Pay Principal, then the Principal Shortfall
Amount shall be deemed to be equal to the Put Portfolio II Asset Principal
Amount at such time.

 

“Put Portfolio II Asset Calculation Period”
means, with respect to each Put Portfolio II Asset Payment Date, a period
corresponding to the interest accrual period relating to such Put Portfolio II
Asset Payment Date pursuant to the Underlying Instruments.

 

“Put Portfolio II Asset Coupon” means the
periodic interest rate applied in relation to each Put Portfolio II Asset
Calculation Period on the related Put Portfolio II Asset Payment Date
(including any scheduled step-up or similar scheduled adjustment to such
interest rate from time to time provided under the terms of the Underlying
Instruments), as determined in accordance with the terms of the Underlying
Instruments as at the Effective Date, without regard to any subsequent
amendment to which Party A has not given it’s prior written consent (other than
an amendment with respect to which the consent of the holder of the Put
Portfolio II Asset is not required).

 

“Put Portfolio II Asset Payment Date” means
each scheduled distribution date for the Put Portfolio II Asset occurring on or
after the Effective Date and on or prior to the Legal Final Maturity Date for
such Put Portfolio II Asset, determined in accordance with the Underlying
Instruments.

 

“Put Portfolio II Asset Principal Amount”
means the following:

 

On the Effective Date,
the product of:

 

(a)                                  the Original Principal
Amount;

 

(b)                                 the Initial Factor;
and

 

(c)                                  the Applicable
Percentage.

 

Following the
Effective Date, each Put Portfolio II Asset Principal Amount will be:

 

(i)                                     decreased on each day
on which a Principal Payment is made by the relevant Principal Payment Amount;

 

(ii)                                  decreased on the day,
if any, on which a Failure to Pay Principal occurs by the relevant Principal
Shortfall Amount; and

 

(iii)                               decreased on each day
on which a Writedown occurs by the relevant Writedown Amount.

 

For the avoidance of
doubt, the Put Portfolio II Asset Principal Amount shall not be increased by
any deferral or capitalization of interest or decreased by payment of any
portion of the principal balance of the Put Portfolio II Asset that is
attributable to the deferral or capitalization of interest.

 

“Repurchase
Agreement Facility” has the meaning specified in the Pledge and
Administration Agreement.

 

22

 

“Servicer” means any trustee, servicer,
sub-servicer, master servicer, fiscal agent, paying agent or other similar
entity responsible for calculating payment amounts or providing reports
pursuant to the Underlying Instruments.

 

“Servicer Report” means a periodic statement
or report regarding the Put Portfolio II Asset provided by the Servicer to
holders of the Put Portfolio II Asset.

 

“Shortfall Amount” means any Interest Shortfall Amount,
Principal Shortfall Amount or Writedown Amount.

 

“Specified Currency Rate” means in relation
to any Put Settlement Asset (i) if Party A or the Sovereign
Guarantors assume all of the rights and obligations of Party B under the a
currency hedge identified as related to such Put Settlement Asset in the Hedge Agreement Register under the Pledge
and Administration Agreement such that Party B has no further rights or
obligations under such currency hedge, the rate of exchange specified under
such currency hedge or (ii) if (i) is not applicable, by reference to
the Federal Reserve Bank of New York 10:00 a.m. (New York City time)
mid-point rate as displayed on Reuters Page FEDSPOT on the second Business
Day preceding the relevant Put Settlement Date, or if such rate is unavailable,
in such other commercially reasonable manner as the Calculation Agent shall
determine after consultation with the parties.

 

“Subordinated Claims
Payment Condition” has the meaning specified in the Pledge and
Administration Agreement.

 

“Underlying
Assets” means the assets securing the Put Portfolio II Asset for the
benefit of the holders of the Put Portfolio II Asset and which are expected to
generate the cashflows required for the servicing and repayment (in whole or in
part) of the Put Portfolio II Asset, or the assets which secure and/or support
the Issuer’s obligations to the holder of such Put Portfolio II Asset where
such exposure is created synthetically.

 

“Underlying
Instruments” means the indenture, trust agreement, pooling and
servicing agreement or other relevant agreement(s) setting forth the terms
of the Put Portfolio II Asset.

 

“Underlying
Policy” means in relation to any Put Portfolio II Asset the
guarantee or insurance policy, if any, indicated as such in the Put Portfolio
II Annex.

 

“Writedown”
means the occurrence at any time on or after the Effective Date of:

 

(A) 
a writedown or applied loss (however described in the Underlying Instruments)
resulting in a reduction in the Outstanding Principal Amount (other than as a
result of a scheduled or unscheduled payment of principal); or

 

(B)  the attribution of
a principal deficiency or realized loss (however described in the Underlying
Instruments) to the Put Portfolio II Asset resulting in a reduction or
subordination of the current interest payable on the Put Portfolio II Asset.

 

“Writedown Amount” means, with respect to
any day, the product of (i) the amount of any Writedown on such day and (ii) the
Applicable Percentage.

 

23

 

Please confirm your agreement to be bound by
the terms of the foregoing by executing a copy of this Confirmation and
returning it to us.

 

Yours faithfully,

 

 

	
  FSA ASSET MANAGEMENT LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  DEXIA SA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  DEXIA CRÉDIT LOCAL  S.A., acting through
  its New York Branch

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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Non-Guaranteed Put Confirmation

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