Document:

Exhibit
10.1

 

EXECUTION VERSION

 

AMENDED
AND RESTATED REVOLVING CREDIT AGREEMENT dated as of June 30,
2009 (this “Agreement”) among FSA Asset Management LLC, a Delaware
limited liability company (with its successors, the “Company”), Dexia
Crédit Local S.A., a French share Company licensed as a bank under French law,
acting through its head office located at 1, Passerelle des Reflets, Tour Dexia
La Défense 2, 92913 La Défense Cedex, France (with its successors “DCL”)
and Dexia Bank Belgium SA, a Belgian bank acting through its head office
located at Boulevard Pachéco 44, 1000 Brussels, Belgium (with its successors “DBB”
and, together with DCL, the “Banks”).

 

WHEREAS, the Company
and the Banks have entered into a Revolving Credit Agreement, dated as of June 30,
2008 and a Second Revolving Credit Agreement dated February 20, 2009
(together, as amended, restated, supplemented or otherwise modified prior to
the date hereof, including by the letter agreement dated February 20,
2009, the “Existing Agreements”);

 

WHEREAS, the Company
has requested that the Existing Agreements be consolidated, amended and
restated in their entirety to reflect the terms of this Agreement, and the
Banks have agreed to amend and restate the Existing Agreements in their
entirety to read as set forth in this Agreement with the intent that the terms
of this Agreement shall supersede the terms of the Existing Agreements (each of
which shall hereafter have no further effect upon the parties thereto, other
than those that remain herein and other than for accrued fees and expenses, and
indemnification obligations (if any) accrued and owing under the terms of the
Existing Agreements on or prior to the date hereof, in each case to the extent
provided for in the Existing Agreements); and

 

WHEREAS, upon the
terms and subject to the conditions set forth herein, the Banks are willing to
make loans and advances to the Company.

 

NOW,
THEREFORE, the Company and the Banks hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01         Definitions.  Capitalized terms used but not defined herein
have the meaning provided to them under the Pledge and Administration
Agreement.  The following terms, as used
herein, have the following meanings:

 

“Accelerated Downgrade Liquidity Draw” means a
Liquidity Draw Request for the purpose of paying, or reserving funds for
payment of, the
maximum amount potentially payable under the Accelerated Termination GICs as a
result of a GIC Credit Event which has made one or more Accelerated Termination Downgrade
Provisions applicable under the relevant Accelerated Termination GICs.

 

“Accelerated Downgrade
Liquidity Draw Deadline” means 9:00 A.M. (New York City time) on the
first Business Day after the date on which the relevant Accelerated Downgrade
Liquidity Draw is deemed requested.

 

1

 

“Accelerated Termination
Downgrade Provision” means a provision that requires the termination and
repayment of an FSA GIC Contract either automatically, or assuming immediate
notice from the relevant GIC Holder electing such termination and repayment,
upon a relevant GIC Credit Event, and which becomes applicable six “business
days” (as defined in the relevant FSA GIC Contract) or sooner after a downgrade
of the rating of FSA’s financial strength to below a threshold of “A-” by
S&P or “A3” by Moody’s (or to below a lower threshold).

 

“Accelerated Termination
GIC” means an FSA GIC Contract which is subject to an Accelerated Termination
Downgrade Provision and which is identified as an Accelerated
Termination GIC in Appendix 3 to the Sovereign Guarantee.

 

“Additional Costs”
means amounts due and payable pursuant to Sections 2.05 and 2.06.

 

“Agent” shall mean
DCL (New York Branch) unless otherwise noticed by DCL and DBB.

 

“Agreement” shall
have the meaning specified in the preamble.

 

“Authorized Account”
means the FSAM Cash Account.

 

“Authorized Signatory”
means any person designated by the Company, the Collateral Agent or FSA on Exhibit B,
as applicable.  Changes to the authorized
signatories list require the signature of two authorized signatories except
that the authorized signatories list for the Collateral Agent and FSA may be
changed upon instruction of an authorized officer of the Collateral Agent or
FSA, as applicable.

 

“Base Rate” means,
for any day, the Federal Funds Rate for such day.

 

“Business Day” means,
in respect of any date, a day that is not a Saturday or Sunday or a day on
which commercial banks and foreign exchange markets settle payments and are
open for general business (including dealings in foreign exchange) in the
Cities of New York, London, Brussels and Paris.

 

“Commitment” means
either the First Tranche Commitment or the Second Tranche Commitment, as the
context requires.

 

“Dollars” or “$”
means the lawful currency of the United States of America.

 

“Existing Agreements”
shall have the meaning specified in first recital.

 

“Federal Funds Rate”
means, for any period, a fluctuating interest rate equal for each day during
such period to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged by Federal
Funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business Day,
the average rate quoted to the Banks at approximately 11:00 a.m. (New York
City time) on such day (or, if such day is not a Business Day, on the next
preceding Business Day) for 

 

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overnight
Federal Funds transactions arranged by New York Federal Funds brokers of
recognized standing selected by the Banks.

 

“First Tranche Commitment”
means $5 billion, or such lesser amount to which the Commitment shall be
reduced from time to time in accordance with the terms of this Agreement.

 

“FSA” means Financial
Security Assurance Inc., a New York stock insurance company, and its successors
and assigns.

 

“GIC Credit Event”
means with respect to any FSA GIC Contract, the downgrade, qualification or
withdrawal of the credit ratings of FSA by one or more of Moody’s, Fitch or
S&P, as specified in that FSA GIC Contract.

 

“Interest Period”
means, with respect to any LIBO Rate Loan, the one-, two-, three- or six-month
maturity applicable to such Loan, as specified by the Company at the time of
its request for such Loan in accordance with Section 2.01(b).

 

“LIBO Rate” shall
have the meaning specified in Section 2.01(g).

 

“LIBO Rate Loan”
shall have the meaning specified in Section 2.01(g).

 

“Loan” means any loan
made by the Banks to the Company pursuant to Section 2.01.

 

“Maturity Date” means
the earlier of (i) any date following a Dexia Event of Default on which
funds are available for payments to the Banks under the Priority of Payments
and subject to the satisfaction of the Subordinated Claims Payment Condition
specified therein, and (ii) the date on which all of the FSA GIC Contracts
are Paid in Full or terminated and there are no outstanding amounts owed by the
Company under the FSAM Insurance Agreement, the FSAM Administrative Services
Agreement, or the Master Repurchase Agreement. 
Where clause (i) of the foregoing sentence applies, outstanding
Loans shall be repaid to the extent permitted in accordance with the Priority
of Payments and (other than with respect to Dexia Reimbursement Payments)
subject to the satisfaction of the Subordinated Claims Payment Condition
specified therein.

 

“Note” shall have the
meaning specified in Section 2.01(i).

 

“Pledge and
Administration Agreement” means the pledge and administration agreement,
dated as of June 30, 2009, among DCL, DBB, Dexia SA, Dexia FP Holdings
Inc. (“Dexia FP”), the Company, FSA Portfolio Asset Limited, FSA Capital
Markets LLC, FSA Capital Management Services LLC, FSA Capital Markets Services
(Caymans) Ltd., FSA and The Bank of New York Mellon Trust Company, National
Association as Collateral Agent (the “Collateral Agent”), as amended, restated,
supplemented or otherwise modified from time to time.

 

“Reference Banks”
shall mean banks each of which shall (i) be a leading bank engaged in
transactions in Eurodollar deposits in the international Eurocurrency market
and (ii) have an established place of business in London.  Initially, the sole Reference Bank shall be
JPMorgan Chase Bank.  If any Reference
Bank should be unwilling or unable to act as such or if the Banks shall
terminate the appointment of any Reference Bank or if any Reference Bank should
be 

 

3

 

removed
from the Reuters Monitor Money Rates Service or in any other way fail to meet
the qualifications of a Reference Bank, the Banks in the exercise of their good
faith business judgment may designate one or more alternative banks meeting the
criteria specified in clauses (i) and (ii) above as
Reference Banks for purposes of this Annex.

 

“Second Tranche
Commitment” means $3 billion, or such lesser amount to which the Commitment
shall be reduced from time to time in accordance with the terms of this
Agreement.

 

“Termination Date”
means the earliest to occur of the following: (a) the date on which all of
the FSA GIC Contracts are Paid in Full or terminated and there are no
outstanding amounts owed by the Company under the FSAM Insurance Agreement, the
Master Repurchase Agreement or the FSAM Administrative Services Agreement that
have not been Paid in Full, (b) the date which is (x) in the case of
a Dexia Event of Default occurring at least 10 Business Days prior to the
Liquidity and Collateral Trigger Expiration Date, the Liquidity and Collateral
Expiration Date and (y) in the case of a Dexia Event of Default occurring
on or after the tenth Business Day preceding the Liquidity and Collateral
Trigger Expiration Date, 30 calendar days following such Dexia Event of Default
(or if such day is not a Business Day, the next Business Day), and (c) 
the Business Day immediately following funding of the one-time draw permitted
under Section 2.03.

 

“Total Commitment”
means the sum of the First Tranche Commitment and the Second Tranche Commitment.

 

“Weekly Assessment Point”
means the first Business Day of each calendar week, when FSAM will evaluate the
balance of cash in the FSAM Cash Account at the opening of business on such
day, the payments expected to be received over the next seven calendar days
and, with respect to collateral posting requirements, the amount of qualifying
assets otherwise available to satisfy such posting requirements and compare
such required amount to the Senior Priority Payments required to be paid during
the next seven calendar days.

 

ARTICLE II

THE LOANS

 

Section 2.01         Loans.

 

(a)   At the request of the
Company (or of the Collateral Agent or FSA as described in Section 2.01(d) below),
the Banks shall, each up to the part of the Total Commitment specified for such
Bank from time to time in Schedule A (with respect to any Bank the “Bank
Commitment” of such Bank) and subject to the terms and conditions of this
Agreement, from time to time on Business Days during the period from and
including the date hereof to and including the Termination Date, make one or
more Loans to the Company pursuant to the terms of paragraph (b) below
such that, at the time of the making of any such Loan, the aggregate principal
amount of all Loans outstanding hereunder at such time (including such Loan)
shall not exceed the Total Commitment. 
As of close of business on June 29, $4.2 billion in aggregate principal amount of the Loans has been
advanced and is outstanding under the Existing Agreements and will be continued
as Loans outstanding under this Agreement.

 

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(b)   The Company (or the
Collateral Agent or FSA as described in Section 2.01(d) below) may
request a Loan only by written notice to the Agent made by an Authorized
Signatory, specifying the amount to be borrowed (which must be in a minimum principal amount of
$5,000,000 or any larger amount in increments of $1,000,000 unless such request
represents the remainder of the Total Commitment) and the
Interest Period to be applicable to the proposed Loan.  Except as provided in Sections 2.01(c) and
(d), such notice must be delivered to the Agent at or before 4:30 P.M.
(Paris time) (the “Notice Deadline”) on the Business Day prior to the
date of the proposed borrowing.  Any
requests for a Loan will be made by email
or facsimile, return receipt requested, in accordance with the address
information set forth in Section 5.03 below.
 The Banks shall advance funds
with respect to such Loan or Loans by 2:00 P.M. (New York City time) on
the date of the proposed borrowing unless such notice is delivered after the
Notice Deadline except as provided in Sections 2.01(c) and (d), in which
case the Banks will be required to advance funds with respect to such Loan or
Loans by 2:00 P.M. (New York City time) on the Business Day following the
date of the proposed borrowing.

 

(c)   Notwithstanding the
foregoing, an Accelerated Downgrade Liquidity Draw will be deemed to have been
made on the day of the GIC Credit Event without regard to whether such GIC
Credit Event occurred before or after close of business on that day.  The Banks will be required to advance funds
with respect to such Loan or Loans by the Accelerated Downgrade Liquidity Draw
Deadline, notwithstanding any failure of the Company to comply with Sections
2.01(b), 2.02(a) and 4.01(c) in connection with such deemed
request.  Without conditioning the
obligations of the Banks to provide funds under this paragraph, FSA shall
provide notice of such GIC Credit Event on the date such event occurs.

 

(d)   In the event that FSA has
given written notice to the Company with a copy to the Agent and the Banks that
(i) the Company has failed to comply with the Company’s obligation to
request a Loan under this Agreement as set forth in Section 11.2 of the
Pledge and Administration Agreement by 4:30 P.M. (Paris time) on any
Business Day or that (ii) Senior Priority Payments cannot be paid on any
Business Day and the Company has not requested a Loan as set forth in Section 11.2
of the Pledge and Administration Agreement in an amount equal to such unpaid
Senior Priority Payments or the remaining amount available under the Total
Commitment (if less) by 4:30 P.M. (Paris time), then the Collateral Agent
or FSA shall be authorized to request a Loan on behalf of the Company, and such
request, if made no later than 4:30 P.M. (Paris time) on the Business Day
immediately following the Business Day on which the Company fails to request a
Loan pursuant to Section 11.2 of the Pledge and Administration Agreement,
will be deemed to have been made by 4:30 P.M. (Paris time) on the
preceding Business Day and the Banks shall advance funds with respect to such
Loan or Loans by 2:00 P.M. (New York City time) on the Business Day
following the failure by the Company to make the request notwithstanding any failure
of the Company to comply with Sections 2.01(b) (with respect to the Notice
Deadline), 2.02(a) and 4.01(c).  Any
such request by the Collateral Agent or FSA must be accompanied by the
certificate described in Section 2.02(d). 
In the event that a Dexia Event of Default has occurred and FSA has
elected to become Secured Party Representative, the Collateral Agent or FSA
shall be authorized to request a Loan on behalf of the Company, and such
request shall be effective hereunder as if made by the Company.

 

5

 

(e)   The proceeds of any Loan
shall be paid by wire transfer of immediately available funds to either (i) the
Authorized Account or (ii) the relevant account for any Senior Priority
Payment identified by FSAM under Section 11.2 of the Pledge and
Administration Agreement in relation to which a Loan is requested hereunder.

 

(f)    The First Tranche
Commitment shall be drawn in full before any amounts are drawn under the Second
Tranche Commitment.  Any amounts repaid
or prepaid under this Agreement shall be applied by the Banks in accordance
with Section 11.1(b)(viii) of the Pledge and Administration
Agreement, with each subclause being allocated first to the First Tranche
Commitment and second to the Second Tranche Commitment.  The Banks shall fund any Loan as notified by
the Agent.  The Bank Commitments and
other obligations of the Banks under this Agreement are several and not joint.

 

(g)   If the Company, the
Collateral Agent or FSA has effected a Liquidity Draw Offset (as defined in the
Credit Support Annex to the Dexia Guaranteed Put Contract) in relation to any
Loan not yet funded by the relevant Bank(s) in relation to any Liquidity
Draw Request hereunder, the amount to be funded by the relevant Bank(s) in
relation to such Loan shall be reduced by the relevant Liquidity Draw
Offset.  DBB shall reimburse DCL or Dexia
for any Liquidity Draw Offset to the extent that any Loan that would otherwise
have been required to be funded by DBB is funded through such Liquidity Draw
Offset.

 

Loans will be only “LIBO
Rate Loans”, each of which shall be denominated in Dollars and have an
Interest Period as selected by or on behalf of the Company, subject to standard
market conventions as to adjustments for non-Business Days and month-ends (but
in no event extending beyond the Maturity Date), and shall bear a per annum
interest rate equal to 1.40% over the applicable LIBO Rate.  For purposes hereof, the applicable “LIBO
Rate” shall be the Dollar LIBO Rate for the applicable Interest Period
determined by reference to Reuters Screen LIBOR01 (the “Telerate Service”)
as of 11:00 A.M., London time, two Business Days prior to the first day of
such Interest Period or (if such rate does not so appear on the Telerate
Service) on the basis of the arithmetic mean of the rates at which deposits in
Dollars are offered by the Reference Banks at approximately 11:00 A.M.,
London time, to prime banks in the London interbank market.  All percentages resulting from any
calculations or determinations referred to in the definition of “LIBO Rate”
will be rounded upwards, if necessary, to the nearest multiple of 1/100th of 1% and all Dollar amounts used in or
resulting from such calculations will be rounded to the nearest cent (with
one-half cent or more being rounded upwards). 
Loans on one Business Day’s notice shall bear a per annum interest rate
equal to 1.75% over the applicable LIBO Rate.

 

(h)   Each Loan will bear interest
from its date until the Maturity Date on the basis specified to the Company (or
the Collateral Agent or FSA as described in Section 2.01(d)) by the Agent
(subject to subsection (b) above) contemporaneously with the making of
such Loan, payable on the last day of each Interest Period, subject to the
Priority of Payments and (other than with respect to Dexia Reimbursement
Payments) satisfaction of the Subordinated Claims Payment Condition specified
therein.  Overdue payments of principal,
interest and other amounts payable hereunder shall bear interest, payable,
subject to the Priority of Payments and satisfaction of the Subordinated Claims
Payment Condition specified therein, at a rate for each day equal to the Base
Rate for such day plus 1% per annum.  The
Company must repay all loans, together with accrued and unpaid 

 

6

 

interest
thereon, on the Maturity Date, subject to the Priority of Payments and (other
than with respect to Dexia Reimbursement Payments) satisfaction of the
Subordinated Claims Payment Condition specified therein.

 

The Company may prepay a
Loan in whole or in part on any date provided it shall give the Agent notice of
the prepayment not later than the second Business Day before the date it wishes
to designate for the prepayment, specifying the date on which the prepayment is
to be made and the amount to be prepaid on that date.  Subject to the Priority of Payments and
(other than with respect to Dexia Reimbursement Payments) satisfaction of the
Subordinated Claims Payment Condition specified therein, the notice shall constitute
the Company’s irrevocable commitment to prepay that amount on that date,
together with interest accrued on the amount prepaid to but excluding the
prepayment date and any costs required to be reimbursed in accordance with Section 2.07(d).

 

(i)    All Loans shall be
evidenced by a promissory note appropriately completed, executed and delivered
by or on behalf of the Company in the form of Exhibit A hereto (the “Note”).  The Agent will endorse on the Note (on behalf
of and at the direction of the Banks) or the Banks will otherwise record in
their internal records the amount of each Loan, the interest rate applicable
thereto and each payment of principal or interest made in respect thereof;
provided that neither the failure of the Agent to do so nor any error by the
Agent or the Banks in doing so shall affect the obligations of the Company
hereunder or under the Note.  All
existing notes under the Existing Agreement will be returned and cancelled
against delivery of an amended and restated Note.  Upon request by the Agent, the Company will
execute restated or amended Notes to evidence the Company’s obligations
hereunder to the Banks.

 

Section 2.02         Conditions to
Borrowing.

 

(a)   The obligations of the Bank
to make a Loan will be unconditional and subject only (except as provided in Section 2.01(c))
to receipt by the Agent of the written notice contemplated by Section 2.01(b) and
the certificate described in 2.02(d) within the time period contemplated
thereby or by Section 2.01(d).

 

(b)   Without limitation of Section 2.10
below, no breach by the Company (or by the Collateral Agent, FSA, any other
party to the Pledge and Administration Agreement or any other Person) of any
representation, warranty, covenant or other term or condition of this
Agreement, the Pledge and Administration Agreement, or any other Transaction
Document or any other agreement described in or contemplated in the Purchase
Agreement shall constitute a defense to or otherwise limit or impair the
obligation of the Bank to fund a Loan requested hereunder in accordance with
the terms and conditions described in Section 2.02(a) above.

 

(c)   Notwithstanding Section 2.02(b) above,
the Agent and the Banks will be indemnified by the Company for any losses
incurred by them in connection with the making of any Loan to the Company if
the representations and warranties of the Company are inaccurate or the Company
has breached its obligations under this Agreement to the Banks, provided that
any such indemnification or any other claim or recourse of the Agent or the
Bank for a breach by the Company of any representation, warranty, covenant or
other term or condition of this agreement (other than as set forth in Section 2.02(a) above)
will be payable only subject to the Priority of 

 

7

 

Payments
and (without prejudice to any claims for Dexia Reimbursement Payments in
accordance with the terms of the Pledge and Administration Agreement)
satisfaction of the Subordinated Claims Payment Condition specified therein.

 

(d)   At the time of any request
for a Loan, the Administrator (or if the Administrator has failed to make the
relevant evaluation and comparison, FSA) shall deliver a certificate to the
Agent, setting out the evaluation and comparison contemplated to be made by the
Administrator under Sections 9.1 and 11.2(a) and (b) of the Pledge
and Administration Agreement (and may also include any updates to such
information) and stating that the proceeds of the relevant Loan will be used as
contemplated by Section 4.01(c).  Notwithstanding
the foregoing, if the proceeds of any Loan give rise to a Dexia Reimbursement
Payment, such portion of any Loan shall be repaid promptly, together with any
interest accrued thereon (but excluding any Additional Costs) and such
repayment shall not be subject to the Subordinated Claims Payment Condition.

 

Section 2.03         Default
Termination Loan.  If a Dexia
Event of Default has occurred, the Company (or the Collateral Agent or FSA as
described in Section 2.01(d)) is permitted to request, on or before the
Termination Date, a single Loan (a “Default Termination Loan”) in an
amount that, together with any Default Repo Termination Request (as defined in
the Repurchase Facility Agreement), does not exceed (i) the Exposure as
calculated under the Credit Support Annex to the Dexia Guaranteed Put Contract
(as most recently determined on or prior to the date of such Loan request),
provided that for such purpose the “GIC Business Costs Amount” shall be
deemed increased by 25% minus (ii) (A) the “Value” as of all “Posted
Collateral” held by the Collateral Agent under the Dexia CSAs (as such
terms are defined in the relevant Dexia CSA and as most recently determined on
or prior to the date of such Loan request) plus (B) the cash proceeds of
the liquidation of any FSAM Collateral which has been sold or liquidated in
accordance with an exercise of creditor’s remedies by the Collateral Agent upon
such Dexia Event of Default.  For the
avoidance of doubt, the amount of any Loan requested by the Company (or the
Collateral Agent or FSA as described in Section 2.01(d)) shall not exceed
the unused amount of the Commitment at the time of the request.

 

Section 2.04         Commitment Fees.  The Company agrees to pay, subject to the
Priority of Payments and satisfaction of the Subordinated Claims Payment
Condition specified therein, to the Banks a commitment fee at the rate of 0.40%
per annum on the unused amount of the Commitment as determined by calculating
the average unused amount of the Commitment for each day of the fiscal quarter
on the Weekly Assessment Point immediately following the end of each fiscal
quarter.  Such fee shall be payable
quarterly in arrears three (3) Business Days following each Weekly
Assessment Point, if such fee was considered in making the calculations on such
day, in accordance with the preceding sentence, and on the date on which the
Commitment terminates.

 

Section 2.05         Taxes; Increased Costs.

 

(a)   Except
as otherwise expressly agreed by the parties, all payments under this Agreement
(including, without limitation, payments of interest and principal) will be
payable, subject to the Priority of Payments and
satisfaction of the Subordinated Claims Payment Condition specified therein, to the Banks free and clear
of any and all present and future taxes, levies, imposts, duties, deductions,
withholdings, fees, liabilities and similar charges other than those imposed on
the 

 

8

 

overall net income of the Banks (“Taxes”).  If any Taxes are required to be withheld or
deducted from any amount payable under this Agreement, then the amount payable
under this Agreement will be increased (but the payment of such increase shall
be due and payable three (3) Business Days after the first Weekly
Assessment Point on which such increase was considered in making the
calculations on such day) to the amount which, after deduction from such
increased amount of all Taxes required to be withheld or deducted therefrom,
will yield to the Banks the amount stated to be payable under this Agreement,
and the Company will promptly provide to the Banks tax receipts evidencing the
payment of such Taxes.  If any of the
Taxes specified in this subsection (a) are paid by the Banks, the Company
will, on notice from the Banks, reimburse the Banks for such payments three (3) Business
Days after the first Weekly Assessment Point on which such amounts were
considered in making the calculations on such day, together with any interest
and penalties which may be imposed by the governmental agency or taxing authority
in respect thereof.

 

(b)   If,
after the date hereof, the adoption of any law, rule or regulation, or any
change therein, or any change in the interpretation or administration thereof
by any Governmental Authority charged with the interpretation or administration
thereof or compliance by the Banks with any request or directive (whether or
not having the force of law) of any such authority, central bank or comparable
agency (i) subjects the Banks to any charge with respect to any Loan or
the Commitment or changes the basis of taxation of payments to the Banks
hereunder or under the Note (except for changes in the rate of tax on the
overall net income of the Banks) or (ii) imposes, modifies or makes
applicable any reserve, special deposit, deposit insurance assessment or
similar requirement against loans made by the Banks, and the result of any of
the foregoing is to increase the cost to the Banks of making or maintaining
such Loan or to reduce any amount received or receivable by the Banks hereunder
or under the Note, then, upon demand by the Banks, the Company shall pay, subject to
the Priority of Payments and satisfaction of the Subordinated Claims Payment
Condition specified therein, to the Agent such additional amount or amounts as will
compensate the Banks for such increased cost or reduction; provided that
the Banks shall have provided to the Company thirty days’ prior written advice
of any such additional amounts (and the basis for calculation
thereof).  In determining such additional amounts, the Banks will act
reasonably and in good faith.  A
certificate of the Banks as to the additional amount or amounts payable to the
Banks under this subsection (b) shall be conclusive absent manifest error.

 

Section 2.06         Capital Adequacy.  If
the adoption after the date hereof of any applicable law, rule or
regulation regarding capital adequacy, or any change therein, or any change in
the interpretation or administration thereof by any Governmental Authority
charged with the interpretation or administration thereof, or compliance by the
Banks with any request or directive regarding capital adequacy (whether or not
having the force of law) of any such authority, central bank or other agency,
has or would have the effect of reducing the rate of return on a Banks’ capital
as a consequence of a Banks’ obligations hereunder or under any Loan to a level
below that which the Banks could have achieved but for such adoption, change or
compliance by an amount deemed by the Banks to be material, the Company shall
pay on the third Business Day after the first Weekly Assessment Point on which
such increase was considered in making the calculations on such day, subject to
the Priority of Payments and satisfaction of the Subordinated Claims Payment
Condition specified therein, to the Banks, on demand, such additional amount or
amounts as will compensate the Banks for such reduction; provided that
the Banks shall have provided to the Company thirty days’ prior written advice
of any such additional amounts (and the basis for 

 

9

 

calculation thereof).  In
determining such additional amounts, the Banks will act reasonably and in good
faith.  A certificate of the Banks as to
the additional amount or amounts payable to the Banks under this Section 2.06
shall be conclusive absent manifest error.

 

Section 2.07         Payments and Computations.

 

(a)   Subject to the terms and
provisions of this Agreement, all amounts of principal, interest, fees and
other obligations payable by the Company hereunder or under the Note shall be
made, subject to the Priority of Payments and (other than with respect to Dexia
Reimbursement Payments) satisfaction of the Subordinated Claims Payment
Condition specified therein, by 4:30 P.M. (Paris time) on the date when
due to the Banks by wire transfer of immediately available funds to (i) the
account of Dexia Crédit Local at Citibank, N.A., New York (swift code:
CITIUS33), ABA No. 021000089, favour Dexia Crédit Local, Paris (swift
code: CLFRFRPP) account no.:  36125091,
Ref.:  Revolving Credit Agreement FSAM;
or (ii) such other account or at such other location as may otherwise from
time to time be notified to the Company by the Agent in writing.

 

(b)   All computations of interest
and fees shall be made on the basis of a year of 360 days, for the actual
number of days elapsed (including the first day but excluding the last
day).  Notwithstanding anything to the
contrary set forth herein or in the Note, interest shall in no event accrue hereunder
or under the Note at a rate in excess of the maximum rate permitted under
applicable law.

 

(c)   Whenever any payment to be
made hereunder shall be stated to be due on a day which is not a Business Day,
such payment shall be made on the next succeeding Business Day, and such
extension of time shall be included in the computation of payment of interest
or fees, as the case may be.

 

(d)   If for any reason the
principal of any LIBO Rate Loan, or any portion thereof, is paid on a date
other than an applicable interest rollover date or if any LIBO Rate Loan is not
borrowed after notice thereof shall have been received by the Banks, the
Company will reimburse the Banks, on demand, subject to the Priority of
Payments and satisfaction of the Subordinated Claims Payment Condition
specified therein, for any resulting loss or expense incurred by the Banks,
including without limitation any loss or expense incurred in obtaining,
liquidating or employing deposits from third parties.

 

(e)   The Banks are hereby
authorized to charge the account, if any, of the Company maintained with the
Banks for each payment of principal, interest and fees due from the Company as
it becomes due hereunder, to the extent such amounts are due and payable to the
Banks and which the Company has failed to pay such amounts to the Banks despite
the availability of funds to make such payment in accordance with the Priority
of Payments and satisfaction of the Subordinated Claims Payment Condition
specified therein.

 

Section 2.08         Optional
Reduction of Commitment by the Company.  With the prior written consent of FSA, the
Company may reduce the unused portion of the Commitment at any time in whole,
or from time to time in part by an amount equal to $5,000,000 or any larger
amount 

 

10

 

in
increments of $1,000,000 (or any reduction that reduces the Total Commitment to
the amount outstanding), by delivering to the Banks and the Agent written
notice specifying the amount of such reduction and the date on which such
reduction is to become effective (which date may not be earlier than the date
of delivery of such notice).  Any such
reduction shall be applied first to the First Tranche Commitment and second to
the Second Tranche Commitment.  Any such
reduction shall be irrevocable and shall reduce the Commitment as specified by
Company, and Schedule A to this Agreement shall be accordingly amended to
reflect such reduction.  Any such
reduction without the prior written consent of FSA shall be void ab initio.

 

Section 2.09         Waiver of
Setoff.  Without prejudice to the Liquidity Draw Offset provision set forth in Section 2.01(g), 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 a Bank to the Company and by the Company to a Bank, in accordance with the
Priority of Payments, such amounts may be set off against one another and only
a single net amount transferred by a Bank to the Company, or by the Company to
a Bank, as the case may be.

 

Section 2.10         Subordination. Each Bank
agrees any and all amounts payable to it (including all amounts outstanding as
of the date of this Agreement) by the Company under this Agreement and any
Transaction Documents shall be paid to a Bank only in accordance with the
Priority of Payments and (other than with respect to Dexia Reimbursement
Payments) satisfaction of the Subordinated Claims Payment Condition specified
therein.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.01         Representations and
Warranties.  The Company represents and warrants to the
Banks as follows:

 

(a)   The Company is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Delaware, and has all requisite power and authority, corporate and otherwise,
to conduct its business as now conducted and to own its properties.  The Company has full power and authority to
enter into this Agreement and the Note and to incur its obligations provided
for herein and therein, all of which have been duly authorized by all proper
and necessary corporate action on the part of the Company.  This Agreement has been duly executed and
delivered by the Company and constitutes the valid and legally binding
agreement of the Company, enforceable against the Company in accordance with
its terms, except as enforceability may be affected by bankruptcy, insolvency
and other laws relating to or affecting creditors’ rights generally and by
general principles of equity.  Upon
execution and delivery thereof, the Note will constitute a valid and legally
binding obligation of the Company, enforceable in accordance with its terms,
except as enforceability may be affected by bankruptcy, insolvency and other
laws relating to or affecting creditors’ rights generally and by general
principles of equity.

 

(b)   All
consents and approvals of, and all notices to and filings with, any
governmental entities or regulatory bodies required as a condition to the valid
execution, delivery or performance

 

11

 

by the Company of this Agreement and the Note have been obtained or
made.  Neither the execution and delivery
of this Agreement and the Note nor compliance with the terms and provisions
hereof and thereof will conflict with, result in a breach of or constitute a
default under (i) any of the terms, conditions or provisions of the
limited liability company agreement of the Company, (ii) any law,
regulation or order, writ, judgment, injunction, decree, determination or award
of any court or governmental instrumentality or (iii) any agreement or
instrument to which the Company is a party or by which it is bound.

 

(c)   The
consolidated financial statements of the Company and its consolidated
subsidiaries (if any) furnished or made available to the Banks on or prior to
the date on which this representation is made or deemed repeated are complete
and correct and fairly present the consolidated financial condition of the
Company and its consolidated subsidiaries as at the dates thereof and the
results of operations for the periods covered thereby (subject, in the case of
quarterly statements, to normal, year-end audit adjustments).  Such financial statements were prepared in
accordance with International Financial Reporting Standards as promulgated by
the International Standards Accounting Board or U.S. generally accepted
accounting principles, in each case consistently applied.

 

(d)   Except
as disclosed in the manner described in Section 3.1(a)(v) of the
Pledge and Administration Agreement, there is no action, suit or proceeding
pending against, or to the Company’s knowledge threatened against or affecting,
the Company before any court or arbitrator or any governmental body, agency or
official which, if adversely determined, would have a material adverse effect
(actual or prospective) on the Company’s business, properties or financial
position or which seeks to terminate or calls into question the validity or
enforceability of this Agreement or the Note.

 

(e)   The Company is not (i) a “holding company,” or a “subsidiary
company” of a “holding company,” or of a “subsidiary company” of a “holding
company,” within the meaning of the Public Utility Holding Company Act of 1935,
or (ii) required to be registered as an “investment company” as defined in
(or subject to regulation under) the Investment Company Act of 1940.  Neither the making of the Loans, or the
application of the proceeds or repayment thereof by the Company, nor the
consummation of other transactions contemplated hereunder, will violate any
provision of the Public Utility Holding Company Act of 1935, the Investment
Company Act of 1940 or any rule, regulation or order of the SEC.

 

ARTICLE IV

COVENANTS

 

Section 4.01         Covenants of the Company.  The
Company covenants and agrees that until the later to occur of (i) the Maturity
Date and (ii) the performance of all obligations of the Company hereunder
and under the Note:

 

(a)   General
Affirmative Covenants.  The Company
will maintain its existence as a limited liability company in good standing,
will comply in all material respects with all applicable laws, rules,
regulations and orders of any governmental authority noncompliance with which
would have a material adverse effect on its financial condition or operations
or on its ability to meet its 

 

12

 

obligations hereunder, and will continue to engage in business of the
same general type as that engaged in by the Company on the date hereof.  The Company will pay and discharge, at or
before maturity, all its obligations and liabilities, including, without
limitation, tax liabilities, where failure to satisfy such obligations or
liabilities in the aggregate would have a material adverse effect on its
financial condition, operations or ability to meet its obligations hereunder.  The Company’s obligations hereunder and under
the Note will rank pari passu with all other unsecured and
unsubordinated obligations of the Company.

 

(b)   Financial
Statements.  Upon request of the
Agent, provided reasonable advanced notice to the Company, the Company will
furnish to the Agent, unless a Transition Date has occurred,

 

(1)           a copy of all financial statements
provided by the Company to FSA or any other party to the Pledge and
Administration Agreement from time to time; and

 

(2)           from time to time, such further
information regarding the business, affairs and financial condition of the
Company and its subsidiaries as the Agent shall reasonably request.

 

(c)   Use of Proceeds.  The proceeds of any Loan may be used
only (x) in the case of any Loan other than the Default Termination Loan,
to satisfy a Senior Priority Payment identified by FSAM or FSA in accordance
with the provisions Section 11.2(a) or (b) of the Pledge and
Administration Agreement at or prior to the request for such Loan or (y) in
the case of the Default Termination Loan, to be applied to Senior Priority
Payments or to purchase Permitted Investments to be held by the Collateral
Agent under the Pledge and Administration Agreement and subsequently applied to
Senior Priority Payments.

 

(d)   Margin
Stock.  None of the proceeds of the
Loans will be used directly or indirectly for the purpose (whether immediate,
incidental or ultimate) of buying or carrying any “margin stock” within the
meaning of Regulation U of the Board of Governors of the Federal Reserve
System.

 

(e)   Maintenance
of Properties.  The Company shall (a) maintain,
preserve and protect all of its material properties and equipment necessary in
the operation of its business in good working order and condition, ordinary
wear and tear excepted; and (b) use the standard of care typical in the
industry in the operation and maintenance of its facilities, except where the
failure to do so could not reasonably be expected to have a material adverse
effect on the Company.

 

(f)    Maintenance
of Insurance.  The Company shall
maintain with financially sound and reputable insurance companies or with a
captive insurance company that is an affiliate of the Company as to which the
Banks may request reasonable evidence of financial responsibility, insurance
with respect to its properties in such amounts with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Company or any
of its subsidiaries operates.

 

13

 

ARTICLE V

MISCELLANEOUS

 

Section 5.01         Amendments and
Waivers.  No failure or delay on the
part of the Banks in exercising any power or right hereunder or under the Note
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power preclude any other or further exercise thereof or the
exercise of any other right or power hereunder. 
No amendment, modification, supplement, termination or waiver of any
provision of this Agreement or the Note nor consent to any departure by the
Company herefrom or therefrom shall in any event be effective unless the same
shall be in writing and signed by the Agent, the Banks, the Company 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 the
Company in any case shall, of itself, entitle the Company to any other or
further notice or demand in similar or other circumstances.  Notwithstanding the foregoing, any amendment,
modification, supplement, termination or waiver of any provision of this
Agreement or the Note entered into by the Banks and the Company without the
prior written consent of FSA shall be void ab initio.

 

Section 5.02         Third Party
Beneficiary.  Each of FSA
and the Collateral Agent shall be a third party beneficiary of the provisions
of this Agreement setting forth rights of FSA or the Collateral Agent,
respectively.

 

Section 5.03         Notices.  Any communication, demand, or notice to be
given to a person hereunder will be duly given and deemed to have been received
when actually delivered (or 72 hours after having been deposited in the mails
with first class postage prepaid) to such person at the address specified in
this Section 5.03 or on the signature pages hereof (or at such other
address as such person shall specify to the other notice parties in writing),
including delivery by telex, telecopier, e-mail or other telecommunication
device capable of transmitting or creating a written record.  The Agent may (but shall not be required to)
accept and act upon oral, telephonic or other forms of notices or instructions
hereunder that the Banks reasonably believe in good faith to have been given by
a person authorized to do so on behalf of the person delivering such notice or
instruction.  The Banks shall be fully
protected and held harmless by the Company, and shall have no liability, for
acting on any such notice or instruction that the Banks reasonably believe in
good faith to have been given by a person authorized to do so.  The Agent and the Company shall send a copy
of any notice hereunder to Assured at 1325 Avenue of the Americas, New
York, New York 10019, Attention: General Counsel, Re: Dexia FP Liquidity,
Email: generalcounsel@assuredguaranty.com, Fax: (212) 445-8705, to Financial
Security Assurance Inc., 31 West 52nd Street, New
York, New York 10019; Attention: General Counsel; Re: Dexia FP Liquidity;
Email: generalcounsel@fsa.com, Fax: (212) 339-3529, to the Collateral Agent
at The Bank of New York Mellon Trust Company, National Association, 601 Travis
Street, 16th Floor, Houston, TX  77002, Attention: Global Corporate Trust -
Dexia Financial Products Collateral Agent, Telephone: (713) 483-6000, Telecopy
No.: (713) 483-6656, Email: FSA_Dexia_Assured@bnymellon.com, to DCL at
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 72 70, Email:
dominique.brossard@dexia.com and Dexia Crédit
Local S.A., 1, Passerelle des Reflets, Tour Dexia La Défense 2, 92919 La
Défense Cedex, France, Attention: Francois Laugier, 

 

14

 

Finance
Department, Facsimile: +33 1 58 58 58 60, Email: francois.laugier@dexia.com, DBB
at Dexia Bank Belgium SA, Boulevard Pachéco 44, 1000 Brussels, Belgium, Attn.:
Back Office — Operations Derivatives FX — MM, Telecopy: +32-2-222.81.45, Email:
TLX-USXAV.BE@dexia.com; Patrick.VanUytvanck@dexia.com;
Sandra.Clement@dexia.com, with copies to (i) TFM — Cash &
Liquidity Management, Attn. Peter De Poorter, Telecopy: +32-2-222.28.92, E-mail: Peter.Depoorter@dexia.com and (ii) TFM — GFI,
Attn. Vincent De Caluwe, Telecopy:
+32-2-285.14.42, E-mail: Vincent.DeCaluwe@dexia.com and to the Administrator
at HF Services LLC, 445 Park Avenue, 5th Floor, New
York, New York 10022, Attention: FP — Operations; Re: Dexia FP Liquidity;
Email: ops@hfservicesllc.com, Fax: (212) 893-2717.  Any communication, demand, or notice to be
given to the Agent shall be sent to each of (i) Dexia Crédit Local New York Branch, 445
Park Avenue, 8th floor, New York, New York 10022, Attention:
Back Office Operations; Re: Dexia FP Liquidity; Email: backoffice@dexia-us.com,
Fax: (212) 753-7522 and (ii) HF Services LLC, prior to July 27,
2009 to 31 West 52nd Street, New York, NY 
10019, Attention:  FP Operations,
Telephone:  (212) 893-2700, Fax: (212)
893-2717, Email:  gicops@fsa.com, and on
and after July 27, 2009 to 445 Park Avenue, 5th Floor, New York, NY 10022,
Attention:  FP Operations,
Telephone:  (212) 893-2700, Fax: (212)
893-2717, Email: 
ops@hfservicesllc.com.  Any
communication, demand, or notice to be given to the Company shall be
sent c/o HF Services LLC, prior to July 27, 2009 to 31 West 52nd Street,
New York, NY  10019, Attention:  FP Operations, Telephone:  (212) 893-2700, Fax: (212) 893-2717, Email:  gicops@fsa.com, and on and after July 27,
2009 to 445 Park Avenue, 5th Floor, New York, NY 10022, Attention:  FP Operations, Telephone:  (212) 893-2700, Fax: (212) 893-2717,
Email:  ops@hfservicesllc.com.

 

Section 5.04         Successors and Assigns.  This
Agreement shall inure to the benefit of, and shall be enforceable by, the
parties hereto and their respective successors and permitted assigns.  Neither this Agreement nor
any interest or obligation in or under this Agreement may be assigned or
transferred (whether by way of security or otherwise) by the Banks (other than
for  DBB to make an assignment and
transfer to DCL or DCL to make an assignment and transfer to DBB) without the
consent of the Company and FSA, other than

 

(I) 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; or

 

(II)  pursuant to an assignment of its rights and obligations
hereunder in whole or in part by any Bank (the “Assigning Bank”) to an
Affiliate of such Bank (a “Transferee Bank”) where (i)(a) such
Transferee Bank has a rating assigned by Moody’s to its long-term indebtedness
and its short-term indebtedness at least as high as the rating assigned by
Moody’s to the long-term indebtedness and short-term indebtedness of the
Assigning Bank, and (b) such Transferee Bank has a rating assigned by
S&P to its long-term indebtedness and its short-term indebtedness at least
as high as the rating assigned by S&P to the long-term indebtedness and
short-term indebtedness of the Assigning Bank, in each case on the date of the
proposed assignment, (ii) the Assigning Bank receives confirmation from
Moody’s and S&P that none of the ratings of the Transferee Bank referred to
in clause (i) above will be reduced or withdrawn after giving effect to
the proposed assignment (or if reduced, will 

 

15

 

be
reduced to a rating subcategory not lower than the corresponding rating
subcategory of the Assigning Bank (and for this purpose a rating of the same
subcategory which is on negative watch or watch for downgrade shall be
considered lower than a rating of the same subcategory that is not on negative
watch or watch for downgrade)), (iii) if the Transferee Bank would be
located in a different jurisdiction than the Assigning Bank (and is not located
in Belgium or France), the Remedies Nonimpairment Condition is satisfied in
relation to such assignment, (iv) the relevant Bank Commitment of the
Assigning Bank is $1.5 billion or less at the time of such assignment and (v) after
giving effect to such assignment there would be no more than three different
Banks having a separate Bank Commitment hereunder.

 

Upon
any assignment contemplated by (II), Schedule A will be amended to reflect such
assignment.  The Company may not assign
or otherwise transfer any of its rights or obligations under this Agreement or
the Note without the prior written consent of the Banks, and any purported
assignment without such consent shall be void. 
The Agent may assign its rights and obligations hereunder to any Bank
upon notice to the Banks, the Company and FSA.

 

Section 5.05         Costs, Expenses and Taxes.  The
Company agrees to pay on demand all costs and expenses of the Banks, including
reasonable fees and expenses of counsel, in connection with the enforcement
against it of this Agreement and the Note and the protection of the Banks’
rights hereunder and thereunder, including any bankruptcy, insolvency,
enforcement proceedings or restructuring with respect to the Company, in each
case subject to the Priority of Payments and satisfaction of the Subordinated
Claims Payment Condition specified therein. 
In addition, the Company shall pay any and all stamp and other taxes and
fees payable or determined to be payable in connection with the execution,
delivery, filing and recording of this Agreement and the Note, and agrees to
save the Banks harmless from and against any and all liabilities with respect
to or resulting from any delay in paying or omission to pay such taxes and
fees, in each case subject to the Priority of Payments and satisfaction of the
Subordinated Claims Payment Condition specified therein.

 

Section 5.06         Acknowledgement
of Security Interests.  Each
of the Agent and the Banks hereby acknowledge that the Company is granting a
security interest in its rights under this Agreement to the Collateral Agent on
behalf of the Secured Parties (including FSA) to secure its obligations under
the Pledge and Administration Agreement and the Transactions Documents, and
each of the Banks hereby consents to any transfer of any or all of such rights
in connection with the enforcement of such security interests.

 

Section 5.07         Governing Law.  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.  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 

 

16

 

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, or to enforce any judgment with respect thereto, in any jurisdiction
or venue.  Any process in any such action
shall be duly served if mailed by registered mail, postage prepaid, with
respect to (i) the Company, at its address designated pursuant to Section 5.03
and (ii) with respect to the Banks, each of DBB and DCL hereby irrevocably
appoints Dexia Crédit Local New York Branch (the “Process Agent”), with
an office at 445 Park Avenue, 5th Floor, New
York, NY 10022, as their agent to receive, on behalf of the Banks and their
respective property, service of copies of the summons and complaint and any
other process which may be served in any such action or proceeding.  Such service may be made by mailing or
delivering a copy of such process to the Banks in care of the Process Agent at
the Process Agent’s above address, and DBB and DCL hereby irrevocably
authorizes and directs the Process Agent to accept such service on their
behalf.  The Banks may appoint a
replacement Process Agent with an office in the State of New York by notice to
FSA.

 

Section 5.08         Counterparts.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
all signatures thereon were upon the same instrument.  This Agreement and the Note constitute the
entire agreement and understanding between the Company and the Banks with
respect to the subject matter hereof, and supersede any prior agreements and
understandings with respect thereto.

 

Section 5.09         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.

 

Section 5.10         Sovereign Immunity. To the extent
that the parties hereto, or any of their respective properties, assets or
revenues may have or may hereafter become entitled to, or have attributed to
them, any right of immunity, on the grounds of sovereignty or otherwise, from
any legal action, suit or proceeding, from the giving of any relief in any
respect thereof, from setoff or counterclaim, from the jurisdiction of any
court, from service of process, from attachment upon or prior to judgment, from
attachment in aid of execution of judgment, or from execution of judgment, or
other legal process or proceeding for the giving of any relief or for the
enforcement of any judgment, in any jurisdiction in which proceedings may at
any time be commenced, with respect to its obligations, liabilities or any
other matter under or arising out of or in connection with this Agreement, the
parties hereto hereby irrevocably and unconditionally waive, and agree not to
plead or claim, to the fullest extent permitted by applicable law, any such
immunity and consent to such relief and enforcement.

 

Section 5.11         PATRIOT ACT.  The Banks hereby notify the Company that,
pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it is
required to obtain, verify and record information that identifies the 

 

17

 

Company,
which information includes the name and address of the Company and other
information that will allow the Banks to identify the Company in accordance
with the Act.

 

Section 5.12         Non-Petition.  Each Bank agrees that it will not, prior to
the Senior Release Date, acquiesce, petition or otherwise institute against, or
join any other person in instituting against, the Company, 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 the
Company or any substantial part of its property; provided, that this
provision shall not restrict or prohibit the Banks 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.

 

Section 5.13         Limited
Recourse.  The
obligations of the Company in relation to this Agreement and any Loan hereunder
are limited recourse obligations, payable solely from the proceeds of the FSAM
Collateral available under and applied in accordance with the Priority of
Payments and (other than with respect to Dexia Reimbursement Payments) subject
to the satisfaction of the Subordinated Claims Payment Condition specified
therein.  Upon application of the FSAM Collateral
and proceeds thereof available to satisfy the obligations of the Company
hereunder in accordance with the Pledge and Administration Agreement, the Banks
shall not be entitled to take any further steps against the Company to recover
any sums due and shall not constitute a claim against the Company 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
the Company. The Banks shall have no right to commence or maintain any action,
suit or proceeding against the Company arising out of any breach of this
Agreement by the Company for any reason, but such provision shall be without
prejudice to the rights of the Banks, at any time FSA is the Secured Party
Representative, to its rights to indemnification in accordance with Section 2.02(c).

 

[Remainder of Page Intentionally
Left Blank]

 

18

 

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

 

	
   

  	
  FSA
  Asset Management LLC

  
	
   

  	
  445
  Park Avenue, 5th Floor

  
	
   

  	
  New
  York, NY 10022

  
	
   

  	
  Attn.:

  	
  FP
  – Operations

  
	
   

  	
  Telephone:

  	
  (212)
  893-2700

  
	
   

  	
  Fax:

  	
  (212)
  893-2717

  
	
   

  	
  Email:

  	
  ops@hfservicesllc.com

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

A&R Revolving Credit Agreement

 

 

	
   

  	
  In
  its capacity as a Bank and, with respect to its New York Branch, as Agent
  under the Agreement:

  
	
   

  	
   

  
	
   

  	
  Dexia
  Crédit Local S.A.

  
	
   

  	
  1,
  Passerelle des Reflets

  
	
   

  	
  Tour
  Dexia La Défense 2

  
	
   

  	
  92913
  La Défense Cedex

  
	
   

  	
  France

  
	
   

  	
  Attn.:

  	
  Back Office Operations

  
	
   

  	
  Telephone:

  	
  33 1 58 58 72 09

  
	
   

  	
   

  	
  33 1 58 58 68 92

  
	
   

  	
  Telecopy:

  	
  33 1 58 58 72 90

  
	
   

  	
  Email:

  	
  laurent.fritsch@dexia.com

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

A&R Revolving Credit Agreement

 

 

	
   

  	
  In
  its capacity as a Bank:

  
	
   

  	
   

  
	
   

  	
  Dexia Bank Belgium SA

  
	
   

  	
  Boulevard Pachéco 44

  
	
   

  	
  1000 Brussels

  Belgium

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A&R Revolving Credit Agreement

 

 

SCHEDULE A

 

First
Tranche Commitment

 

	
  Bank

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dexia Crédit Local S.A.

  	
   

  	
  $

  	
  600,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dexia Bank Belgium SA

  	
   

  	
  $

  	
  4,400,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Second Tranche Commitment

  	
   

  	
   

  	
   

  

 

	
  Bank

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dexia Crédit Local S.A.

  	
   

  	
  $

  	
  3,000,000,000

  	
   

  
					

 

S-1Exhibit 10.2.1

 

	
  

  	
  Master
  Repurchase Agreement

  

 

September 1996 Version

 

	
  Dated as of

  	
  June 30,
  2009

  
	
   

  	
   

  
	
  Between:

  	
  Dexia
  Crédit Local S.A.

  
	
   

  	
   

  
	
  and

  	
  FSA
  Asset Management LLC

  

 

1.             Applicability

 

From time to time the parties hereto may enter into
transactions in which one party (“Seller”) agrees to transfer to the other (“Buyer”)
securities or other assets (“Securities”) against the transfer of funds by
Buyer, with a simultaneous agreement by Buyer to transfer to Seller such
Securities at a date certain or on demand, against the transfer of funds by
Seller. Each such transaction shall be referred to herein as a “Transaction”
and, unless otherwise agreed in writing, shall be governed by this Agreement,
including any supplemental terms or conditions contained in Annex I hereto and
in any other annexes identified herein or therein as applicable hereunder.

 

2.             Definitions

 

(a)         “Act of
Insolvency”, with respect to any party, (i) the commencement by such party
as debtor of any case or proceeding under any bankruptcy, insolvency,
reorganization, liquidation, moratorium, dissolution, delinquency or similar
law, or such party seeking the appointment or election of a receiver,
conservator, trustee, custodian or similar official for such party or any
substantial part of its property, or the convening of any meeting of creditors
for purposes of commencing any such case or proceeding or seeking such an
appointment or election, (ii) the commencement of any such case or
proceeding against such party, or another seeking such an appointment or
election, or the filing against a party of an application for a protective
decree under the provisions of the Securities Investor Protection Act of 1970,
which (A) is consented to or not timely contested by such party, (B) results
in the entry of an order for relief, such an appointment or election, the
issuance of such a protective decree or the entry of an order having a similar
effect, or (C) is not dismissed within 15 days, (iii) the making by
such party of a general assignment for the benefit of creditors, or (iv) the
admission in writing by such party of such party’s inability to pay such party’s
debts as they become due;

 

(b)        “Additional
Purchased Securities”, Securities provided by Seller to Buyer pursuant to
Paragraph 4(a) hereof;

 

 

(c)         “Buyer’s
Margin Amount”, with respect to any Transaction as of any date, the amount
obtained by application of the Buyer’s Margin Percentage to the Repurchase
Price for such Transaction as of such date;

 

(d)        “Buyer’s
Margin Percentage”, with respect to any Transaction as of any date, a
percentage (which may be equal to the Seller’s Margin Percentage) agreed to by
Buyer and Seller or, in the absence of any such agreement, the percentage
obtained by dividing the Market Value of the Purchased Securities on the
Purchase Date by the Purchase Price on the Purchase Date for such Transaction;

 

(e)         “Confirmation”,
the meaning specified in Paragraph 3(b) hereof;

 

(f)           “Income”, with respect to any Security at any time, any principal thereof
and all interest, dividends or other distributions thereon;

 

(g)        “Margin
Deficit”, the meaning specified in Paragraph 4(a) hereof;

 

(h)        “Margin
Excess”, the meaning specified in Paragraph 4(b) hereof;

 

(i)            “Margin Notice Deadline”, the time agreed to by the parties in the
relevant Confirmation, Annex I hereto or otherwise as the deadline for giving
notice requiring same-day satisfaction of margin maintenance obligations as
provided in Paragraph 4 hereof (or, in the absence of any such agreement, the
deadline for such purposes established in accordance with market practice);

 

(j)            “Market Value”, with respect to any Securities as of any date, the price
for such Securities on such date obtained from a generally recognized source
agreed to by the parties or the most recent closing bid quotation from such a
source, plus accrued Income to the extent not included therein (other than any
Income credited or transferred to, or applied to the obligations of, Seller
pursuant to Paragraph 5 hereof) as of such date (unless contrary to market
practice for such Securities);

 

(k)         “Price
Differential”, with respect to any Transaction as of any date, the aggregate
amount obtained by daily application of the Pricing Rate for such Transaction
to the Purchase Price for such Transaction on a 360 day per year basis for the
actual number of days during the period commencing on (and including) the
Purchase Date for such Transaction and ending on (but excluding) the date of
determination (reduced by any amount of such Price Differential previously paid
by Seller to Buyer with respect to such Transaction);

 

(l)            “Pricing Rate”, the per annum percentage rate for determination of the
Price Differential;

 

(m)      “Prime
Rate”, the prime rate of U.S. commercial banks as published in The Wall Street
Journal (or, if more than one such rate is published, the average of such
rates);

 

(n)        “Purchase
Date”, the date on which Purchased Securities are to be transferred by Seller
to Buyer;

 

2

 

(o)        “Purchase
Price”, (i) on the Purchase Date, the price at which Purchased Securities
are transferred by Seller to Buyer, and (ii) thereafter, except where
Buyer and Seller agree otherwise, such price increased by the amount of any
cash transferred by Buyer to Seller pursuant to Paragraph 4(b) hereof and
decreased by the amount of any cash transferred by Seller to Buyer pursuant to
Paragraph 4(a) hereof or applied to reduce Seller’s obligations under
clause (ii) of Paragraph 5 hereof;

 

(p)        “Purchased
Securities”, the Securities transferred by Seller to Buyer in a Transaction
hereunder, and any Securities substituted therefor in accordance with Paragraph
9 hereof. The term “Purchased Securities” with respect to any Transaction at
any time also shall include Additional Purchased Securities delivered pursuant
to Paragraph 4(a) hereof and shall exclude Securities returned pursuant to
Paragraph 4(b) hereof;

 

(q)        “Repurchase
Date”, the date on which Seller is to repurchase the Purchased Securities from
Buyer, including any date determined by application of the provisions of
Paragraph 3(c) or 11 hereof;

 

(r)           “Repurchase Price”, the price at which Purchased Securities are to be
transferred from Buyer to Seller upon termination of a Transaction, which will
be determined in each case (including Transactions terminable upon demand) as
the sum of the Purchase Price and the Price Differential as of the date of such
determination;

 

(s)         “Seller’s
Margin Amount”, with respect to any Transaction as of any date, the amount
obtained by application of the Seller’s Margin Percentage to the Repurchase
Price for such Transaction as of such date;

 

(t)           “Seller’s Margin Percentage”, with respect to any Transaction as of any
date, a percentage (which may be equal to the Buyer’s Margin Percentage) agreed
to by Buyer and Seller or, in the absence of any such agreement, the percentage
obtained by dividing the Market Value of the Purchased Securities on the
Purchase Date by the Purchase Price on the Purchase Date for such Transaction.

 

3.             Initiation; Confirmation; Termination

 

(a)         An
agreement to enter into a Transaction may be made orally or in writing at the
initiation of either Buyer or Seller. On the Purchase Date for the Transaction,
the Purchased Securities shall be transferred to Buyer or its agent against the
transfer of the Purchase Price to an account of Seller.

 

(b)        Upon
agreeing to enter into a Transaction hereunder, Buyer or Seller (or both), as
shall be agreed, shall promptly deliver to the other party a written
confirmation of each Transaction (a “Confirmation”). The Confirmation shall
describe the Purchased Securities (including CUSIP number, if any), identify
Buyer and Seller and set forth (i) the Purchase Date, (ii) the
Purchase Price, (iii) the Repurchase Date, unless the Transaction is to be
terminable on demand, (iv) the Pricing Rate or Repurchase Price applicable
to the Transaction, and (v) any additional terms or conditions of the
Transaction not inconsistent with this Agreement. The Confirmation, together
with this Agreement, shall constitute conclusive evidence of the terms agreed
between Buyer and Seller with respect to the Transaction to which the
Confirmation relates, unless with

 

3

 

respect to the Confirmation specific objection is made
promptly after receipt thereof. In the event of any conflict between the terms
of such Confirmation and this Agreement, this Agreement shall prevail.

 

(c)         In the
case of Transactions terminable upon demand, such demand shall be made by Buyer
or Seller, no later than such time as is customary in accordance with market
practice, by telephone or otherwise on or prior to the business day on which
such termination will be effective. On the date specified in such demand, or on
the date fixed for termination in the case of Transactions having a fixed term,
termination of the Transaction will be effected by transfer to Seller or its
agent of the Purchased Securities and any Income in respect thereof received by
Buyer (and not previously credited or transferred to, or applied to the obligations
of, Seller pursuant to Paragraph 5 hereof) against the transfer of the
Repurchase Price to an account of Buyer.

 

4.             Margin Maintenance

 

(a)         If at
any time the aggregate Market Value of all Purchased Securities subject to all
Transactions in which a particular party hereto is acting as Buyer is less than
the aggregate Buyer’s Margin Amount for all such Transactions (a “Margin
Deficit”), then Buyer may by notice to Seller require Seller in such
Transactions, at Seller’s option, to transfer to Buyer cash or additional
Securities reasonably acceptable to Buyer (“Additional Purchased Securities”),
so that the cash and aggregate Market Value of the Purchased Securities,
including any such Additional Purchased Securities, will thereupon equal or
exceed such aggregate Buyer’s Margin Amount (decreased by the amount of any
Margin Deficit as of such date arising from any Transactions in which such
Buyer is acting as Seller).

 

(b)        If at
any time the aggregate Market Value of all Purchased Securities subject to all
Transactions in which a particular party hereto is acting as Seller exceeds the
aggregate Seller’s Margin Amount for all such Transactions at such time (a “Margin
Excess”), then Seller may by notice to Buyer require Buyer in such
Transactions, at Buyer’s option, to transfer cash or Purchased Securities to
Seller, so that the aggregate Market Value of the Purchased Securities, after
deduction of any such cash or any Purchased Securities so transferred, will
thereupon not exceed such aggregate Seller’s Margin Amount (increased by the
amount of any Margin Excess as of such date arising from any Transactions in
which such Seller is acting as Buyer).

 

(c)         If any
notice is given by Buyer or Seller under subparagraph (a) or (b) of
this Paragraph at or before the Margin Notice Deadline on any business day, the
party receiving such notice shall transfer cash or Additional Purchased
Securities as provided in such subparagraph no later than the close of business
in the relevant market on such day. If any such notice is given after the
Margin Notice Deadline, the party receiving such notice shall transfer such
cash or Securities no later than the close of business in the relevant market
on the next business day following such notice.

 

(d)        Any cash
transferred pursuant to this Paragraph shall be attributed to such Transactions
as shall be agreed upon by Buyer and Seller.

 

4

 

(e)         Seller
and Buyer may agree, with respect to any or all Transactions hereunder, that
the respective rights of Buyer or Seller (or both) under subparagraphs (a) and
(b) of this Paragraph may be exercised only where a Margin Deficit or
Margin Excess, as the case may be, exceeds a specified dollar amount or a
specified percentage of the Repurchase Prices for such Transactions (which
amount or percentage shall be agreed to by Buyer and Seller prior to entering
into any such Transactions).

 

(f)           Seller and Buyer may agree, with respect to any or all Transactions
hereunder, that the respective rights of Buyer and Seller under subparagraphs (a) and
(b) of this Paragraph to require the elimination of a Margin Deficit or a
Margin Excess, as the case may be, may be exercised whenever such a Margin
Deficit or Margin Excess exists with respect to any single Transaction hereunder
(calculated without regard to any other Transaction outstanding under this
Agreement).

 

5.             Income Payments

 

Seller shall be entitled to receive an amount equal to all
Income paid or distributed on or in respect of the Securities that is not
otherwise received by Seller, to the full extent it would be so entitled if the
Securities had not been sold to Buyer. Buyer shall, as the parties may agree
with respect to any Transaction (or, in the absence of any such agreement, as
Buyer shall reasonably determine in its discretion), on the date such Income is
paid or distributed either (i) transfer to or credit to the account of
Seller such Income with respect to any Purchased Securities subject to such
Transaction or (ii) with respect to Income paid in cash, apply the Income
payment or payments to reduce the amount, if any, to be transferred to Buyer by
Seller upon termination of such Transaction. Buyer shall not be obligated to
take any action pursuant to the preceding sentence (A) to the extent that
such action would result in the creation of a Margin Deficit, unless prior
thereto or simultaneously therewith Seller transfers to Buyer cash or
Additional Purchased Securities sufficient to eliminate such Margin Deficit, or
(B) if an Event of Default with respect to Seller has occurred and is then
continuing at the time such Income is paid or distributed.

 

6.             Security Interest

 

Although the parties intend that all Transactions
hereunder be sales and purchases and not loans, in the event any such
Transactions are deemed to be loans, Seller shall be deemed to have pledged to
Buyer as security for the performance by Seller of its obligations under each
such Transaction, and shall be deemed to have granted to Buyer a security
interest in, all of the Purchased Securities with respect to all Transactions
hereunder and all Income thereon and other proceeds thereof.

 

7.             Payment and Transfer

 

Unless otherwise mutually agreed, all transfers of funds
hereunder shall be in immediately available funds. All Securities transferred
by one party hereto to the other party (i) shall be in suitable form for
transfer or shall be accompanied by duly executed instruments of transfer or
assignment in blank and such other documentation as the party receiving
possession may reasonably request, (ii) shall be transferred on the
book-entry system of a Federal Reserve Bank, or (iii) shall be transferred
by any other method mutually acceptable to Seller and Buyer.

 

5

 

8.             Segregation of Purchased Securities

 

To the extent required by applicable law, all Purchased
Securities in the possession of Seller shall be segregated from other
securities in its possession and shall be identified as subject to this
Agreement. Segregation may be accomplished by appropriate identification on the
books and records of the holder, including a financial or securities
intermediary or a clearing corporation. All of Seller’s interest in the
Purchased Securities shall pass to Buyer on the Purchase Date and, unless
otherwise agreed by Buyer and Seller, nothing in this Agreement shall preclude
Buyer from engaging in repurchase transactions with the Purchased Securities or
otherwise selling, transferring, pledging or hypothecating the Purchased
Securities, but no such transaction shall relieve Buyer of its obligations to
transfer Purchased Securities to Seller pursuant to Paragraph 3, 4 or 11
hereof, or of Buyer’s obligation to credit or pay Income to, or apply Income to
the obligations of, Seller pursuant to Paragraph 5 hereof.

 

Required Disclosure for Transactions in
Which the Seller Retains Custody of the Purchased Securities

 

Seller is not permitted to substitute other securities for
those subject to this Agreement and therefore must keep Buyer’s securities
segregated at all times, unless in this Agreement Buyer grants Seller the right
to substitute other securities. If Buyer grants the right to substitute, this
means that Buyer’s securities will likely be commingled with Seller’s own
securities during the trading day. Buyer is advised that, during any trading
day that Buyer’s securities are commingled with Seller’s securities, they
[will]* [may]** be subject to liens granted by Seller to [its clearing bank]*
[third parties]** and may be used by Seller for deliveries on other securities
transactions. Whenever the securities are commingled, Seller’s ability to
resegregate substitute securities for Buyer will be subject to Seller’s ability
to satisfy [the clearing]* [any]** lien or to obtain substitute securities.

 

* Language
to be used under 17 C.F.R. ß403.4(e) if Seller is a government securities
broker or dealer other than a financial institution.

** Language
to be used under 17 C.F.R. ß403.5(d) if Seller is a financial institution.

 

9.             Substitution

 

(a)         Seller
may, subject to agreement with and acceptance by Buyer, substitute other
Securities for any Purchased Securities. Such substitution shall be made by
transfer to Buyer of such other Securities and transfer to Seller of such
Purchased Securities. After substitution, the substituted Securities shall be
deemed to be Purchased Securities.

 

(b)        In
Transactions in which Seller retains custody of Purchased Securities, the
parties expressly agree that Buyer shall be deemed, for purposes of
subparagraph (a) of this Paragraph, to have agreed to and accepted in this
Agreement substitution by Seller of other Securities for Purchased Securities;
provided, however, that such other Securities shall have a Market Value at
least equal to the Market Value of the Purchased Securities for which they are
substituted.

 

6

 

10.      Representations

 

Each of Buyer and Seller represents and warrants to the
other that (i) it is duly authorized to execute and deliver this
Agreement, to enter into Transactions contemplated hereunder and to perform its
obligations hereunder and has taken all necessary action to authorize such
execution, delivery and performance, (ii) it will engage in such
Transactions as principal (or, if agreed in writing, in the form of an annex hereto
or otherwise, in advance of any Transaction by the other party hereto, as agent
for a disclosed principal), (iii) the person signing this Agreement on its
behalf is duly authorized to do so on its behalf (or on behalf of any such
disclosed principal), (iv) it has obtained all authorizations of any
governmental body required in connection with this Agreement and the
Transactions hereunder and such authorizations are in full force and effect and
(v) the execution, delivery and performance of this Agreement and the
Transactions hereunder will not violate any law, ordinance, charter, bylaw or rule applicable
to it or any agreement by which it is bound or by which any of its assets are
affected. On the Purchase Date for any Transaction Buyer and Seller shall each
be deemed to repeat all the foregoing representations made by it.

 

11.      Events of Default

 

In the event that (i) Seller fails to transfer or
Buyer fails to purchase Purchased Securities upon the applicable Purchase Date,
(ii) Seller fails to repurchase or Buyer fails to transfer Purchased
Securities upon the applicable Repurchase Date, (iii) Seller or Buyer
fails to comply with Paragraph 4 hereof, (iv) Buyer fails, after one
business day’s notice, to comply with Paragraph 5 hereof, (v) an Act of
Insolvency occurs with respect to Seller or Buyer, (vi) any representation
made by Seller or Buyer shall have been incorrect or untrue in any material
respect when made or repeated or deemed to have been made or repeated, or (vii) Seller
or Buyer shall admit to the other its inability to, or its intention not to,
perform any of its obligations hereunder (each an “Event of Default”):

 

(a)         The
nondefaulting party may, at its option (which option shall be deemed to have
been exercised immediately upon the occurrence of an Act of Insolvency),
declare an Event of Default to have occurred hereunder and, upon the exercise
or deemed exercise of such option, the Repurchase Date for each Transaction
hereunder shall, if it has not already occurred, be deemed immediately to occur
(except that, in the event that the Purchase Date for any Transaction has not
yet occurred as of the date of such exercise or deemed exercise, such
Transaction shall be deemed immediately canceled). The nondefaulting party
shall (except upon the occurrence of an Act of Insolvency) give notice to the
defaulting party of the exercise of such option as promptly as practicable.

 

(b)        In all
Transactions in which the defaulting party is acting as Seller, if the
nondefaulting party exercises or is deemed to have exercised the option
referred to in subparagraph (a) of this Paragraph, (i) the defaulting
party’s obligations in such Transactions to repurchase all Purchased
Securities, at the Repurchase Price therefor on the Repurchase Date determined
in accordance with subparagraph (a) of this Paragraph, shall thereupon
become immediately due and payable, (ii) all Income paid after such
exercise or deemed exercise shall be retained by the nondefaulting party and
applied to the aggregate unpaid Repurchase Prices and any other amounts owing
by the defaulting party hereunder, and (iii) the defaulting party shall
immediately deliver to the nondefaulting party any Purchased Securities subject
to such Transactions then in the defaulting party’s possession or control.

 

7

 

(c)         In all
Transactions in which the defaulting party is acting as Buyer, upon tender by
the nondefaulting party of payment of the aggregate Repurchase Prices for all
such Transactions, all right, title and interest in and entitlement to all
Purchased Securities subject to such Transactions shall be deemed transferred
to the nondefaulting party, and the defaulting party shall deliver all such
Purchased Securities to the nondefaulting party.

 

(d)        If the
nondefaulting party exercises or is deemed to have exercised the option
referred to in subparagraph (a) of this Paragraph, the nondefaulting
party, without prior notice to the defaulting party, may:

 

(i)            as to Transactions in which the defaulting party is acting as Seller, (A) immediately
sell, in a recognized market (or otherwise in a commercially reasonable manner)
at such price or prices as the nondefaulting party may reasonably deem
satisfactory, any or all Purchased Securities subject to such Transactions and
apply the proceeds thereof to the aggregate unpaid Repurchase Prices and any
other amounts owing by the defaulting party hereunder or (B) in its sole
discretion elect, in lieu of selling all or a portion of such Purchased
Securities, to give the defaulting party credit for such Purchased Securities
in an amount equal to the price therefor on such date, obtained from a
generally recognized source or the most recent closing bid quotation from such
a source, against the aggregate unpaid Repurchase Prices and any other amounts
owing by the defaulting party hereunder; and

 

(ii)         as to
Transactions in which the defaulting party is acting as Buyer, (A) immediately
purchase, in a recognized market (or otherwise in a commercially reasonable
manner) at such price or prices as the nondefaulting party may reasonably deem
satisfactory, securities (“Replacement Securities”) of the same class and
amount as any Purchased Securities that are not delivered by the defaulting
party to the nondefaulting party as required hereunder or (B) in its sole
discretion elect, in lieu of purchasing Replacement Securities, to be deemed to
have purchased Replacement Securities at the price therefor on such date,
obtained from a generally recognized source or the most recent closing offer quotation
from such a source.

 

Unless otherwise provided in Annex I, the parties
acknowledge and agree that (1) the Securities subject to any Transaction
hereunder are instruments traded in a recognized market, (2) in the
absence of a generally recognized source for prices or bid or offer quotations
for any Security, the nondefaulting party may establish the source therefor in
its sole discretion and (3) all prices, bids and offers shall be
determined together with accrued Income (except to the extent contrary to
market practice with respect to the relevant Securities).

 

(e)         As to
Transactions in which the defaulting party is acting as Buyer, the defaulting
party shall be liable to the nondefaulting party for any excess of the price
paid (or deemed paid) by the nondefaulting party for Replacement Securities
over the Repurchase Price for the Purchased Securities replaced thereby and for
any amounts payable by the defaulting party under Paragraph 5 hereof or
otherwise hereunder.

 

(f)           For purposes of this Paragraph 11, the Repurchase Price for each
Transaction hereunder in respect of which the defaulting party is acting as
Buyer shall not increase above the

 

8

 

amount of such Repurchase Price for such Transaction determined
as of the date of the exercise or deemed exercise by the nondefaulting party of
the option referred to in subparagraph (a) of this Paragraph.

 

(g)        The
defaulting party shall be liable to the nondefaulting party for (i) the
amount of all reasonable legal or other expenses incurred by the nondefaulting
party in connection with or as a result of an Event of Default, (ii) damages
in an amount equal to the cost (including all fees, expenses and commissions)
of entering into replacement transactions and entering into or terminating
hedge transactions in connection with or as a result of an Event of Default,
and (iii) any other loss, damage, cost or expense directly arising or
resulting from the occurrence of an Event of Default in respect of a
Transaction.

 

(h)        To the
extent permitted by applicable law, the defaulting party shall be liable to the
nondefaulting party for interest on any amounts owing by the defaulting party
hereunder, from the date the defaulting party becomes liable for such amounts
hereunder until such amounts are (i) paid in full by the defaulting party
or (ii) satisfied in full by the exercise of the nondefaulting party’s
rights hereunder. Interest on any sum payable by the defaulting party to the
nondefaulting party under this Paragraph 11(h) shall be at a rate equal to
the greater of the Pricing Rate for the relevant Transaction or the Prime Rate.

 

(i)            The nondefaulting party shall have, in addition to its rights hereunder,
any rights otherwise available to it under any other agreement or applicable
law.

 

12.      Single Agreement

 

Buyer and Seller acknowledge that, and have entered
hereinto and will enter into each Transaction hereunder in consideration of and
in reliance upon the fact that, all Transactions hereunder constitute a single
business and contractual relationship and have been made in consideration of
each other. Accordingly, each of Buyer and Seller agrees (i) to perform
all of its obligations in respect of each Transaction hereunder, and that a
default in the performance of any such obligations shall constitute a default
by it in respect of all Transactions hereunder, (ii) that each of them
shall be entitled to set off claims and apply property held by them in respect
of any Transaction against obligations owing to them in respect of any other
Transactions hereunder and (iii) that payments, deliveries and other
transfers made by either of them in respect of any Transaction shall be deemed
to have been made in consideration of payments, deliveries and other transfers
in respect of any other Transactions hereunder, and the obligations to make any
such payments, deliveries and other transfers may be applied against each other
and netted.

 

13.      Notices and Other Communications

 

Any and all notices, statements, demands or other
communications hereunder may be given by a party to the other by mail,
facsimile, telegraph, messenger or otherwise to the address specified in Annex
II hereto, or so sent to such party at any other place specified in a notice of
change of address hereafter received by the other. All notices, demands and
requests hereunder may be made orally, to be confirmed promptly in writing, or
by other communication as specified in the preceding sentence.

 

9

 

14.      Entire Agreement; Severability

 

This Agreement shall supersede any existing agreements
between the parties containing general terms and conditions for repurchase
transactions. Each provision and agreement herein shall be treated as separate
and independent from any other provision or agreement herein and shall be
enforceable notwithstanding the unenforceability of any such other provision or
agreement.

 

15.      Non-assignability; Termination

 

(a)         The
rights and obligations of the parties under this Agreement and under any
Transaction shall not be assigned by either party without the prior written
consent of the other party, and any such assignment without the prior written
consent of the other party shall be null and void. Subject to the foregoing,
this Agreement and any Transactions shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns. This
Agreement may be terminated by either party upon giving written notice to the
other, except that this Agreement shall, notwithstanding such notice, remain
applicable to any Transactions then outstanding.

 

(b)        Subparagraph
(a) of this Paragraph 15 shall not preclude a party from assigning,
charging or otherwise dealing with all or any part of its interest in any sum
payable to it under Paragraph 11 hereof.

 

16.      Governing Law

 

This Agreement shall be governed by the laws of the State
of New York without giving effect to the conflict of law principles thereof.

 

17.      No Waivers, Etc.

 

No express or implied waiver of any Event of Default by
either party shall constitute a waiver of any other Event of Default and no
exercise of any remedy hereunder by any party shall constitute a waiver of its
right to exercise any other remedy hereunder. No modification or waiver of any
provision of this Agreement and no consent by any party to a departure
here-from shall be effective unless and until such shall be in writing and duly
executed by both of the parties hereto. Without limitation on any of the
foregoing, the failure to give a notice pursuant to Paragraph 4(a) or 4(b) hereof
will not constitute a waiver of any right to do so at a later date.

 

18.      Use of Employee Plan Assets

 

(a)         If
assets of an employee benefit plan subject to any provision of the Employee
Retirement Income Security Act of 1974 (“ERISA”) are intended to be used by
either party hereto (the “Plan Party”) in a Transaction, the Plan Party shall
so notify the other party prior to the Transaction. The Plan Party shall
represent in writing to the other party that the Transaction does not constitute
a prohibited transaction under ERISA or is otherwise exempt therefrom, and the
other party may proceed in reliance thereon but shall not be required so to
proceed.

 

10

 

(b)        Subject
to the last sentence of subparagraph (a) of this Paragraph, any such
Transaction shall proceed only if Seller furnishes or has furnished to Buyer
its most recent available audited statement of its financial condition and its
most recent subsequent unaudited statement of its financial condition.

 

(c)         By
entering into a Transaction pursuant to this Paragraph, Seller shall be deemed (i) to
represent to Buyer that since the date of Seller’s latest such financial
statements, there has been no material adverse change in Seller’s financial
condition which Seller has not disclosed to Buyer, and (ii) to agree to
provide Buyer with future audited and unaudited statements of its financial
condition as they are issued, so long as it is a Seller in any outstanding
Transaction involving a Plan Party.

 

19.      Intent

 

(a)         The
parties recognize that each Transaction is a “repurchase agreement” as that
term is defined in Section 101 of Title 11 of the United States Code, as
amended (except insofar as the type of Securities subject to such Transaction
or the term of such Transaction would render such definition inapplicable), and
a “securities contract” as that term is defined in Section 741 of Title 11
of the United States Code, as amended (except insofar as the type of assets
subject to such Transaction would render such definition inapplicable).

 

(b)        It is
understood that either party’s right to liquidate Securities delivered to it in
connection with Transactions hereunder or to exercise any other remedies
pursuant to Paragraph 11 hereof is a contractual right to liquidate such
Transaction as described in Sections 555 and 559 of Title 11 of the United
States Code, as amended.

 

(c)         The
parties agree and acknowledge that if a party hereto is an “insured depository
institution,” as such term is defined in the Federal Deposit Insurance Act, as
amended (“FDIA”), then each Transaction hereunder is a “qualified financial
contract,” as that term is defined in FDIA and any rules, orders or policy
statements thereunder (except insofar as the type of assets subject to such
Transaction would render such definition inapplicable).

 

(d)        It is
understood that this Agreement constitutes a “netting contract” as defined in
and subject to Title IV of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment
obligation under any Transaction hereunder shall constitute a “covered
contractual payment entitlement” or “covered contractual payment obligation”,
respectively, as defined in and subject to FDICIA (except insofar as one or
both of the parties is not a “financial institution” as that term is defined in
FDICIA).

 

20.      Disclosure Relating to Certain Federal Protections

 

The parties acknowledge that they have been advised that:

 

(a)         in the
case of Transactions in which one of the parties is a broker or dealer
registered with the Securities and Exchange Commission (“SEC”) under Section 15
of the Securities Exchange Act of 1934 (“1934 Act”), the Securities Investor
Protection Corporation has

 

11

 

taken
the position that the provisions of the Securities Investor Protection Act of
1970 (“SIPA”) do not protect the other party with respect to any Transaction
hereunder;

 

(b)        in the case of Transactions in
which one of the parties is a government securities broker or a government
securities dealer registered with the SEC under Section 15C of the 1934
Act, SIPA will not provide protection to the other party with respect to any
Transaction hereunder; and

 

(c)         in the case of Transactions in
which one of the parties is a financial institution, funds held by the
financial institution pursuant to a Transaction hereunder are not a deposit and
therefore are not insured by the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund, as applicable.

 

 

	
  Dexia
  Crédit Local S.A.

  	
   

  	
  FSA
  Asset Management LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    By:

  	
   

  	
   

  	
    By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Title:

  	
   

  	
   

  	
    Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Date:

  	
   

  	
   

  	
    Date:

  	
   

  

 

Committed
Term Repo Annex

 

12

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