Document:

Exhibit
10.3.4

 

	
  (Bilateral
  Form)

  	
   

  	
  (ISDA Agreements Subject to New York Law Only)

  

 

ISDA®

International
Swaps and Derivatives Association, Inc.

 

CREDIT SUPPORT ANNEX

to the Schedule to
the ISDA Master Agreement

 

dated as of June 30,
2009

 

between

 

	
  DEXIA CRÉDIT LOCAL S.A., acting 

  through its New York Branch, and DEXIA
  

  SA, jointly and severally;

  	
   

  	
  and

  	
   

  	
  FSA ASSET MANAGEMENT LLC

  

 

This
Annex supplements, forms part of, and is subject to, the above-referenced
Agreement, is part of its Schedule and is a Credit Support Document under this
Agreement with respect to each party.

 

Accordingly, the parties agree as follows:—

 

Paragraph 1.  Interpretation

 

(a)                                  Definitions and
Inconsistency.  Capitalized terms not otherwise defined herein or
elsewhere in this Agreement have the meanings specified pursuant to Paragraph
12, and all references in this Annex to Paragraphs are to Paragraphs of this
Annex.  In the event of any inconsistency
between this Annex and the other provisions of this Schedule, this Annex will
prevail, and in the event of any inconsistency between Paragraph 13 and the
other provisions of this Annex, Paragraph 13 will prevail.

 

(b)                                 Secured Party and Pledgor. 
All
references in this Annex to the “Secured Party” will be to either party when
acting in that capacity and all corresponding references to the “Pledgor” will
be to the other party when acting in that capacity; provided,
however, that if Other Posted Support is held by a party to this
Annex, all references herein to that party as the Secured Party with respect to
that Other Posted Support will be to that party as the beneficiary thereof and
will not subject that support or that party as the beneficiary thereof to
provisions of law generally relating to security interests and secured parties.

 

Paragraph 2.  Security Interest

 

Each
party, as the Pledgor, hereby pledges to the other party, as the Secured Party,
as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against
all Posted Collateral Transferred to or received by the Secured Party
hereunder.  Upon the Transfer by the
Secured Party to the Pledgor of Posted Collateral, the security interest and
lien granted hereunder on that Posted Collateral will be released immediately
and, to the extent possible, without any further action by either party.

 

Paragraph 3.  Credit Support
Obligations

 

(a)                                  Delivery Amount. 
Subject to
Paragraphs 4 and 5, upon a demand made by the Secured Party on or promptly
following a Valuation Date, if the Delivery Amount for that Valuation Date
equals or exceeds the 

 

 

Pledgor’s
Minimum Transfer Amount, then the Pledgor will Transfer to the Secured Party
Eligible Credit Support having a Value as of the date of Transfer at least
equal to the applicable Delivery Amount (rounded pursuant to Paragraph
13).  Unless otherwise specified in
Paragraph 13, the “Delivery Amount”  applicable to the Pledgor for any Valuation Date will equal
the amount by which:

 

(i)            the
Credit Support Amount

 

exceeds

 

(ii)           the Value as of
that Valuation Date of all Posted Credit Support held by the Secured Party.

 

(b)                                 Return Amount. 
Subject to
Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly following
a Valuation Date, if the Return Amount for that Valuation Date equals or
exceeds the Secured Party’s Minimum Transfer Amount, then the Secured Party
will Transfer to the Pledgor Posted Credit Support specified by the Pledgor in
that demand having a Value as of the date of Transfer as close as practicable
to the applicable Return Amount (rounded pursuant to Paragraph 13).  Unless otherwise specified in Paragraph 13,
the “Return Amount”  applicable
to the Secured Party for any Valuation Date will equal the amount by which:

 

(i)            the Value as of
that Valuation Date of all Posted Credit Support held by the Secured Party
exceeds

 

(ii)           the
Credit Support Amount.

 

“Credit Support Amount”  means, unless otherwise specified in Paragraph 13, for
any Valuation Date (i) the Secured Party’s Exposure for that Valuation
Date plus (ii) the aggregate of all Independent Amounts applicable to the
Pledgor, if any, minus (iii) all Independent Amounts applicable to the
Secured Party, if any, minus (iv) the Pledgor’s Threshold; provided, however, that the Credit Support Amount will be deemed
to be zero whenever the calculation of Credit Support Amount yields a number
less than zero.

 

Paragraph 4.  Conditions Precedent, Transfer Timing,
Calculations and Substitutions

 

(a)                                  Conditions Precedent. 
Each
Transfer obligation of the Pledgor under Paragraphs 3 and 5 and of the Secured
Party under Paragraphs 3, 4(d)(ii), 5 and 6(d) is subject to the
conditions precedent that:

 

(i)            no Event of
Default, Potential Event of Default or Specified Condition has occurred and is
continuing with respect to the other party; and

 

(ii)           no Early
Termination Date for which any unsatisfied payment obligations exist has
occurred or been designated as the result of an Event of Default or Specified
Condition with respect to the other party.

 

(b)                                 Transfer Timing. 
Subject to
Paragraphs 4(a) and 5 and unless otherwise specified, if a demand for the
Transfer of Eligible Credit Support or Posted Credit Support is made by the
Notification Time, then the relevant Transfer will be made not later than the
close of business on the next Local Business Day; if a demand is made after the
Notification Time, then the relevant Transfer will be made not later than the
close of business on the second Local Business Day thereafter.

 

(c)                                  Calculations. 
All
calculations of Value and Exposure for purposes of Paragraphs 3 and 6(d) will
be made by the Valuation Agent as of the Valuation Time.  The Valuation Agent will notify each party
(or the other party, if the Valuation Agent is a party) of its calculations not
later than the Notification Time on the Local Business Day following the
applicable Valuation Date (or in the case of Paragraph 6(d), following the date
of calculation).

 

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(d)                                 Substitutions.

 

(i)                                     Unless otherwise specified in Paragraph
13, upon notice to the Secured Party specifying the items of Posted Credit
Support to be exchanged, the Pledgor may, on any Local Business Day, Transfer
to the Secured Party substitute Eligible Credit Support (the “Substitute Credit
Support”); and

 

(ii)                                  subject to Paragraph 4(a), the Secured
Party will Transfer to the Pledgor the items of Posted Credit Support specified
by the Pledgor in its notice not later than the Local Business Day following
the date on which the Secured Party receives the Substitute Credit Support,
unless otherwise specified in Paragraph 13 (the “Substitution Date”); provided that the Secured Party will only be obligated to
Transfer Posted Credit Support with a Value as of the date of Transfer of that
Posted Credit Support equal to the Value as of that date of the Substitute
Credit Support.

 

Paragraph 5.  Dispute Resolution

 

If a
party (a “Disputing Party”) disputes (I) the Valuation Agent’s calculation
of a Delivery Amount or a Return Amount or (II) the Value of any Transfer
of Eligible Credit Support or Posted Credit Support, then (1) the
Disputing Party will notify the other party and the Valuation Agent (if the
Valuation Agent is not the other party) not later than the close of business on
the Local Business Day following (X) the date that the demand is made
under Paragraph 3 in the case of (I) above or (Y) the date of
Transfer in the case of (II) above, (2) subject to Paragraph 4(a),
the appropriate party will Transfer the undisputed amount to the other party
not later than the close of business on the Local Business Day following (X) the
date that the demand is made under Paragraph 3 in the case of (I) above or
(Y) the date of Transfer in the case of (II) above, (3) the
parties will consult with each other in an attempt to resolve the dispute and (4) if
they fail to resolve the dispute by the Resolution Time, then:

 

(i)                                     In the case of a dispute involving a
Delivery Amount or Return Amount, unless otherwise specified in Paragraph 13,
the Valuation Agent will recalculate the Exposure and the Value as of the
Recalculation Date by:

 

(A)          utilizing any calculations of Exposure
for the Transactions (or Swap Transactions) that the parties have agreed are
not in dispute;

 

(B)           calculating the Exposure for the
Transactions (or Swap Transactions) in dispute by seeking four actual
quotations at mid-market from Reference Market-makers for purposes of
calculating Market Quotation, and taking the arithmetic average of those
obtained; provided that if four quotations are not
available for a particular Transaction (or Swap Transaction), then fewer than
four quotations may be used for that Transaction (or Swap Transaction); and if
no quotations are available for a particular Transaction (or Swap Transaction),
then the Valuation Agent’s original calculations will be used for that
Transaction (or Swap Transaction); and

 

(C)           utilizing the procedures specified in
Paragraph 13 for calculating the Value, if disputed, of Posted Credit Support.

 

(ii)                                  In the case of a dispute involving the
Value of any Transfer of Eligible Credit Support or Posted Credit Support, the
Valuation Agent will recalculate the Value as of the date of Transfer pursuant
to Paragraph 13.

 

Following
a recalculation pursuant to this Paragraph, the Valuation Agent will notify
each party (or the other party, if the Valuation Agent is a party) not later
than the Notification Time on the Local Business Day following the Resolution
Time.  The appropriate party will, upon
demand following that notice by the 

 

3

 

Valuation
Agent or a resolution pursuant to (3) above and subject to Paragraphs 4(a) and
4(b), make the appropriate Transfer.

 

Paragraph 6.  Holding and Using Posted Collateral

 

(a)                                  Care of Posted Collateral.  
Without
limiting the Secured Party’s rights under Paragraph 6(c), the Secured Party
will exercise reasonable care to assure the safe custody of all Posted
Collateral to the extent required by applicable law, and in any event the
Secured Party will be deemed to have exercised reasonable care if it exercises
at least the same degree of care as it would exercise with respect to its own
property.  Except as specified in the
preceding sentence, the Secured Party will have no duty with respect to Posted
Collateral, including, without limitation, any duty to collect any
Distributions, or enforce or preserve any rights pertaining thereto.

 

(b)                                 Eligibility to Hold Posted
Collateral; Custodians.

 

(i)            General.  Subject to the satisfaction of any
conditions specified in Paragraph 13 for holding Posted Collateral, the Secured
Party will be entitled to hold Posted Collateral or to appoint an agent (a “Custodian”)
to hold Posted Collateral for the Secured Party.  Upon notice by the Secured Party to the
Pledgor of the appointment of a Custodian, the Pledgor’s obligations to make
any Transfer will be discharged by making the Transfer to that Custodian.  The holding of Posted Collateral by a
Custodian will be deemed to be the holding of that Posted Collateral by the
Secured Party for which the Custodian is acting.

 

(ii)           Failure to Satisfy Conditions.  If the Secured Party
or its Custodian fails to satisfy any conditions for holding Posted Collateral,
then upon a demand made by the Pledgor, the Secured Party will, not later than
five Local Business Days after the demand, Transfer or cause its Custodian to
Transfer all Posted Collateral held by it to a Custodian that satisfies those
conditions or to the Secured Party if it satisfies those conditions.

 

(iii)          Liability.  The Secured Party will be liable
for the acts or omissions of its Custodian to the same extent that the Secured
Party would be liable hereunder for its own acts or omissions.

 

(c)                                  Use of Posted Collateral. 
Unless
otherwise specified in Paragraph 13 and without limiting the rights and
obligations of the parties under Paragraphs 3, 4(d)(ii), 5, 6(d) and 8, if
the Secured Party is not a Defaulting Party or an Affected Party with respect
to a Specified Condition and no Early Termination Date has occurred or been
designated as the result of an Event of Default or Specified Condition with
respect to the Secured Party, then the Secured Party will, notwithstanding Section 9-207
of the New York Uniform Commercial Code, have the right to:

 

(i) sell, pledge, rehypothecate, assign, invest, use, commingle or
otherwise dispose of, or otherwise use in its business any Posted Collateral it
holds, free from any claim or right of any nature whatsoever of the Pledgor,
including any equity or right of redemption by the Pledgor; and

 

(ii) register any Posted Collateral in the name of the Secured
Party, its Custodian or a nominee for either.

 

For
purposes of the obligation to Transfer Eligible Credit Support or Posted Credit
Support pursuant to Paragraphs 3 and 5 and any rights or remedies authorized
under this Agreement, the Secured Party will be deemed to continue to hold all
Posted Collateral and to receive Distributions made thereon, regardless of
whether the Secured Party has exercised any rights with respect to any Posted
Collateral pursuant to (i) or (ii) above.

 

4

 

(d)                                 Distributions and Interest
Amount.

 

(i)            Distributions.  Subject to Paragraph 4(a), if the
Secured Party receives or is deemed to receive Distributions on a Local
Business Day, it will Transfer to the Pledgor not later than the following
Local Business Day any Distributions it receives or is deemed to receive to the
extent that a Delivery Amount would not be created or increased by that
Transfer, as calculated by the Valuation Agent (and the date of calculation
will be deemed to be a Valuation Date for this purpose).

 

(ii)           Interest Amount.  Unless otherwise specified in
Paragraph 13 and subject to Paragraph 4(a), in lieu of any interest, dividends
or other amounts paid or deemed to have been paid with respect to Posted
Collateral in the form of Cash (all of which may be retained by the Secured
Party), the Secured Party will Transfer to the Pledgor at the times specified
in Paragraph 13 the Interest Amount to the extent that a Delivery Amount would
not be created or increased by that Transfer, as calculated by the Valuation
Agent (and the date of calculation will be deemed to be a Valuation Date for
this purpose).  The Interest Amount or
portion thereof not Transferred pursuant to this Paragraph will constitute Posted
Collateral in the form of Cash and will be subject to the security interest
granted under Paragraph 2.

 

Paragraph 7.  Events of Default

 

For
purposes of Section 5(a)(iii)(1) of this Agreement, an Event of
Default will exist with respect to a party if:

 

(i)            that party fails
(or fails to cause its Custodian) to make, when due, any Transfer of Eligible
Collateral, Posted Collateral or the Interest Amount, as applicable, required
to be made by it and that failure continues for two Local Business Days after
notice of that failure is given to that party;

 

(ii)           that party fails to
comply with any restriction or prohibition specified in this Annex with respect
to any of the rights specified in Paragraph 6(c) and that failure
continues for five Local Business Days after notice of that failure is given to
that party; or

 

(iii)          that party fails to
comply with or perform any agreement or obligation other than those specified
in Paragraphs 7(i) and 7(ii) and that failure continues for 30 days
after notice of that failure is given to that party.

 

Paragraph 8.  Certain Rights and Remedies

 

(a)                                  Secured Party’s Rights and
Remedies.  If at any time (1) an Event of Default or
Specified Condition with respect to the Pledgor has occurred and is continuing
or (2) an Early Termination Date has occurred or been designated as the
result of an Event of Default or Specified Condition with respect to the
Pledgor, then, unless the Pledgor has paid in full all of its Obligations that
are then due, the Secured Party may exercise one or more of the following
rights and remedies:

 

(i)            all rights and
remedies available to a secured party under applicable law with respect to
Posted Collateral held by the Secured Party;

 

(ii)           any other rights
and remedies available to the Secured Party under the terms of Other Posted
Support, if any;

 

(iii)          the right to
Set-off any amounts payable by the Pledgor with respect to any Obligations
against any Posted Collateral or the Cash equivalent of any Posted Collateral
held by the Secured Party (or any obligation of the Secured Party to Transfer
that Posted Collateral); and

 

(iv)          the right to
liquidate any Posted Collateral held by the Secured Party through one or more
public or private sales or other dispositions with such notice, if any, as may
be required under applicable law, free from any claim or right of any nature
whatsoever of the Pledgor, including any equity or right of redemption by the
Pledgor (with the Secured Party having the right to purchase any 

 

5

 

or all of the Posted Collateral to be sold) and to apply the proceeds
(or the Cash equivalent thereof) from the liquidation of the Posted Collateral
to any amounts payable by the Pledgor with respect to any Obligations in that
order as the Secured Party may elect.

 

Each
party acknowledges and agrees that Posted Collateral in the form of securities
may decline speedily in value and is of a type customarily sold on a recognized
market, and, accordingly, the Pledgor is not entitled to prior notice of any sale
of that Posted Collateral by the Secured Party, except any notice that is
required under applicable law and cannot be waived.

 

(b)                                 Pledgor’s Rights and
Remedies.  If at any time an Early Termination Date has occurred
or been designated as the result of an Event of Default or Specified Condition
with respect to the Secured Party, then (except in the case of an Early
Termination Date relating to less than all Transactions (or Swap Transactions)
where the Secured Party has paid in full all of its obligations that are then
due under Section 6(e) of this Agreement):

 

(i)                                     the Pledgor may exercise all rights and
remedies available to a pledgor under applicable law with respect to Posted
Collateral held by the Secured Party;

 

(ii)                                  the Pledgor may exercise any other rights
and remedies available to the Pledgor under the terms of Other Posted Support,
if any;

 

(iii)                               the Secured Party will be obligated
immediately to Transfer all Posted Collateral and the Interest Amount to the
Pledgor; and

 

(iv)                              to the extent that Posted Collateral or
the Interest Amount is not so Transferred pursuant to (iii) above, the
Pledgor may:

 

(A)          Set-off any amounts payable by the
Pledgor with respect to any Obligations against any Posted Collateral or the
Cash equivalent of any Posted Collateral held by the Secured Party (or any
obligation of the Secured Party to Transfer that Posted Collateral); and

 

(B)           to the extent that the Pledgor does
not Set-off under (iv)(A) above, withhold payment of any remaining amounts
payable by the Pledgor with respect to any Obligations, up to the Value of any
remaining Posted Collateral held by the Secured Party, until that Posted
Collateral is Transferred to the Pledgor.

 

(c)                                  Deficiencies and Excess
Proceeds.  The Secured Party will Transfer to the Pledgor any
proceeds and Posted Credit Support remaining after liquidation, Set-off and/or
application under Paragraphs 8(a) and 8(b) after satisfaction in full
of all amounts payable by the Pledgor with respect to any Obligations; the
Pledgor in all events will remain liable for any amounts remaining unpaid after
any liquidation, Set-off and/or application under Paragraphs 8(a) and
8(b).

 

(d)                                 Final Returns. 
When no
amounts are or thereafter may become payable by the Pledgor with respect to any
Obligations (except for any potential liability under Section 2(d) of
this Agreement), the Secured Party will Transfer to the Pledgor all Posted
Credit Support and the Interest Amount, if any.

 

Paragraph 9.  Representations

 

Each
party represents to the other party (which representations will be deemed to be
repeated as of each date on which it, as the Pledgor, Transfers Eligible
Collateral) that:

 

(i) it has the power to grant a security interest in and lien on
any Eligible Collateral it Transfers as the Pledgor and has taken all necessary
actions to authorize the granting of that security interest and lien;

 

6

 

(ii) it is the sole owner of or otherwise has the right to
Transfer all Eligible Collateral it Transfers to the Secured Party hereunder,
free and clear of any security interest, lien, encumbrance or other
restrictions other than the security interest and lien granted under Paragraph
2,

 

(iii) upon the Transfer of any Eligible Collateral to the Secured
Party under the terms of this Annex, the Secured Party will have a valid and
perfected first priority security interest therein (assuming that any central
clearing corporation or any third-party financial intermediary or other entity
not within the control of the Pledgor involved in the Transfer of that Eligible
Collateral gives the notices and takes the action required of it under
applicable law for perfection of that interest); and

 

(iv) the performance by it of its obligations under this Annex
will not result in the creation of any security interest, lien or other
encumbrance on any Posted Collateral other than the security interest and lien
granted under Paragraph 2.

 

Paragraph 10.  Expenses

 

(a)                               General. 
Except as
otherwise provided in Paragraphs 10(b) and 10(c), each party will pay its
own costs and expenses in connection with performing its obligations under this
Annex and neither party will be liable for any costs and expenses incurred by
the other party in connection herewith.

 

(b)                                 Posted Credit Support. 
The
Pledgor will promptly pay when due all taxes, assessments or charges of any
nature that are imposed with respect to Posted Credit Support held by the
Secured Party upon becoming aware of the same, regardless of whether any
portion of that Posted Credit Support is subsequently disposed of under
Paragraph 6(c), except for those taxes, assessments and charges that result
from the exercise of the Secured Party’s rights under Paragraph 6(c).

 

(c)                                  Liquidation/Application of
Posted Credit Support.  All reasonable costs and expenses incurred by or on
behalf of the Secured Party or the Pledgor in connection with the liquidation
and/or application of any Posted Credit Support under Paragraph 8 will be
payable, on demand and pursuant to the Expenses Section of this Agreement,
by the Defaulting Party or, if there is no Defaulting Party, equally by the
parties.

 

Paragraph 11.  Miscellaneous

 

(a)                                  Default Interest. 
A Secured
Party that fails to make, when due, any Transfer of Posted Collateral or the
Interest Amount will be obligated to pay the Pledgor (to the extent permitted
under applicable law) an amount equal to interest at the Default Rate
multiplied by the Value of the items of property that were required to be
Transferred, from (and including) the date that Posted Collateral or Interest
Amount was required to be Transferred to (but excluding) the date of Transfer
of that Posted Collateral or Interest Amount. 
This interest will be calculated on the basis of daily compounding and
the actual number of days elapsed.

 

(b)                                 Further Assurances. 
Promptly
following a demand made by a party, the other party will execute, deliver, file
and record any financing statement, specific assignment or other document and
take any other action that may be necessary or desirable and reasonably requested
by that party to create, preserve, perfect or validate any security interest or
lien granted under Paragraph 2, to enable that party to exercise or enforce its
rights under this Annex with respect to Posted Credit Support or an Interest
Amount or to effect or document a release of a security interest on Posted
Collateral or an Interest Amount.

 

(c)                                  Further Protection. 
The
Pledgor will promptly give notice to the Secured Party of, and defend against,
any suit, action, proceeding or lien that involves Posted Credit Support
Transferred by the Pledgor or that could adversely affect the security interest
and lien granted by it under Paragraph 2, unless that suit, action, proceeding
or lien results from the exercise of the Secured Party’s rights under Paragraph
6(c).

 

7

 

(d)                                 Good Faith and
Commercially Reasonable Manner.  Performance of all obligations under this
Annex, including, but not limited to, all calculations, valuations and
determinations made by either party, will be made in good faith and in a
commercially reasonable manner.

 

(e)                                  Demands and Notices. 
All
demands and notices made by a party under this Annex will be made as specified
in the Notices Section of this Agreement, except as otherwise provided in
Paragraph 13.

 

(f)                                    Specifications of Certain
Matters.  Anything referred to in this Annex as being specified
in Paragraph 13 also may be specified in one or more Confirmations or other
documents and this Annex will be construed accordingly.

 

Paragraph 12.  Definitions

 

As used in this Annex:—

 

“Cash”  means the lawful currency of the United States of
America.

 

“Credit Support Amount”  has the meaning specified in Paragraph 3

 

“Custodian”  has the meaning specified in Paragraphs 6(b)(i) and
13.

 

“Delivery Amount”  has the meaning specified in Paragraph 3(a).

 

“Disputing Party”  has the meaning specified in Paragraph 5.

 

“Distributions”  means with respect to Posted Collateral other than
Cash, all principal, interest and other payments and distributions of cash or
other property with respect thereto, regardless of whether the Secured Party
has disposed of that Posted Collateral under Paragraph 6(c).  Distributions will not include any item of
property acquired by the Secured Party upon any disposition or liquidation of
Posted Collateral or, with respect to any Posted Collateral in the form of
Cash, any distributions on that collateral, unless otherwise specified herein.

 

“Eligible Collateral”  means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 13.

 

“Eligible Credit Support”  means Eligible Collateral and Other Eligible Support.

 

“Exposure”  means
for any Valuation Date or other date for which Exposure is calculated and
subject to Paragraph 5 in the case of a dispute, the amount, if any, that would
be payable to a party that is the Secured Party by the other party (expressed
as a positive number) or by a party that is the Secured Party to the other
party (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of
this Agreement as if all Transactions (or Swap Transactions) were being
terminated as of the relevant Valuation Time; provided that
Market Quotation will be determined by the Valuation Agent using its estimates
at mid-market of the amounts that would be paid for Replacement Transactions
(as that term is defined in the definition of “Market Quotation”).

 

“Independent Amount”  means, with respect to a party, the amount specified
as such for that party in Paragraph 13; if no amount is specified, zero.

 

“Interest Amount”  means, with respect to an Interest Period, the
aggregate sum of the amounts of interest calculated for each day in that
Interest Period on the principal amount of Posted Collateral in the form of
Cash held by the Secured Party on that day, determined by the Secured Party for
each such day as follows:

 

(x) the amount of that Cash on that day;
multiplied by

 

8

 

(y) the Interest Rate in effect for that day;
divided by

 

(z) 360.

 

“Interest Period”  means the period from (and including) the last Local
Business Day on which an Interest Amount was Transferred (or, if no Interest
Amount has yet been Transferred, the Local Business Day on which Posted
Collateral in the form of Cash was Transferred to or received by the Secured
Party) to (but excluding) the Local Business Day on which the current Interest
Amount is to be Transferred.

 

“Interest Rate”  means the rate specified in Paragraph 13.

 

“Local Business Day”, unless otherwise specified in Paragraph 13, has the
meaning specified in the Definitions Section of this Agreement, except
that references to a payment in clause (b) thereof will be deemed to
include a Transfer under this Annex.

 

“Minimum Transfer Amount”  means, with respect to a party, the amount specified
as such for that party in Paragraph 13; if no amount is specified, zero.

 

“Notification Time”  has the meaning specified in Paragraph 13.

 

“Obligations”  means,
with respect to a party, all present and future obligations of that party under
this Agreement and any additional obligations specified for that party in
Paragraph 13.

 

“Other Eligible Support”  means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 13.

 

“Other Posted Support”  means all Other Eligible Support Transferred to the
Secured Party that remains in effect for the benefit of that Secured Party.

 

“Pledgor”  means
either party, when that party (i) receives a demand for or is required to
Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has Transferred
Eligible Credit Support under Paragraph 3(a).

 

“Posted Collateral”  means all Eligible Collateral, other property,
Distributions, and all proceeds thereof that have been Transferred to or
received by the Secured Party under this Annex and not Transferred to the
Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or 6(d)(i) or released
by the Secured Party under Paragraph 8. 
Any Interest Amount or portion thereof not Transferred pursuant to
Paragraph 6(d)(ii) will constitute Posted Collateral in the form of Cash.

 

“Posted Credit Support”  means Posted Collateral and Other Posted Support.

 

“Recalculation Date”  means the Valuation Date that gives rise to the
dispute under Paragraph 5; provided, however, that
if a subsequent Valuation Date occurs under Paragraph 3 prior to the resolution
of the dispute, then the “Recalculation Date” means the most recent Valuation
Date under Paragraph 3.

 

“Resolution Time”  has the meaning specified in Paragraph 13.

 

“Return Amount”  has the meaning specified in Paragraph 3(b).

 

“Secured Party”  means either party, when that party (i) makes a
demand for or is entitled to receive Eligible Credit Support under Paragraph 3(a) or
(ii) holds or is deemed to hold Posted Credit Support.

 

“Specified Condition”  means, with respect to a party, any event specified as
such for that party in Paragraph 13.

 

9

 

“Substitute Credit Support”  has the meaning specified in Paragraph 4(d)(i).

 

“Substitution Date”  has the meaning specified in Paragraph 4(d)(ii).

 

“Threshold”  means,
with respect to a party, the amount specified as such for that party in
Paragraph 13; if no amount is specified, zero.

 

“Transfer”  means,
with respect to any Eligible Credit Support, Posted Credit Support or Interest
Amount, and in accordance with the instructions of the Secured Party, Pledgor
or Custodian, as applicable:

 

(i)                                     in the case of Cash, payment or delivery
by wire transfer into one or more bank accounts specified by the recipient;

 

(ii)                                  in the case of certificated securities
that cannot be paid or delivered by book-entry, payment or delivery in
appropriate physical form to the recipient or its account accompanied by any
duly executed instruments of transfer, assignments in blank, transfer tax
stamps and any other documents necessary to constitute a legally valid transfer
to the recipient;

 

(iii)                               in the case of securities that can be
paid or delivered by book-entry, the giving of written instructions to the
relevant depository institution or other entity specified by the recipient,
together with a written copy thereof to the recipient, sufficient if complied
with to result in a legally effective transfer of the relevant interest to the
recipient; and

 

(iv)                              in the case of Other Eligible Support or
Other Posted Support, as specified in Paragraph 13.

 

“Valuation Agent”  has the meaning specified in Paragraph 13.

 

“Valuation Date”  means each date specified in or otherwise determined
pursuant to Paragraph 13.

 

“Valuation Percentage”  means, for any item of Eligible Collateral, the percentage
specified in Paragraph 13.

 

“Valuation Time”  has the meaning specified in Paragraph 13.

 

“Value”  means
for any Valuation Date or other date for which Value is calculated and subject
to Paragraph 5 in the case of a dispute, with respect to:

 

(i)                                     Eligible Collateral or Posted Collateral
that is:

 

(A)          Cash,
the amount thereof, and

 

(B)           a security, the bid price obtained by
the Valuation Agent multiplied by the applicable Valuation Percentage, if any;

 

(ii)                                  Posted Collateral that consists of items
that are not specified as Eligible Collateral, zero; and

 

(iii)                               Other Eligible Support and Other Posted
Support, as specified in Paragraph 13.

 

10

 

Execution
Version

 

ISDA®

CREDIT SUPPORT ANNEX

(New York Law)

to the Schedule to the

ISDA Master Agreement

Guaranteed Put Contract

dated as of June 30, 2009 between

 

DEXIA CRÉDIT LOCAL S.A., acting through its New York Branch, and DEXIA SA (jointly and 

severally) (hereinafter together referred to as “Party
A” or “Pledgor”)

and

FSA ASSET MANAGEMENT LLC,  (hereinafter referred to as “Party B”
or “Secured Party”).

 

Paragraph
13.  Elections and Variables.

 

(a)           Security Interest for “Obligations”.

 

(i)            Paragraph
2 is amended by adding, immediately after the words “lien on and right of
Set-off against”, the words “the Dexia Collateral Account, and all the property
from time to time credited thereto or carried therein, and the proceeds
thereof, including without limitation”.

 

(ii)           The term “Obligations” as used in this Annex includes
the following additional obligations:

With
respect to Party A: not applicable.

With
respect to Party B: not applicable.

 

(b)           Credit Support Obligations.

 

(i)            Eligible
Collateral.

 

On any date, the categories
of assets denominated in U.S. Dollars or Euros and designated as “CSA Eligible”
on Schedule A hereto qualify as “Eligible Collateral” and the Valuation
Percentage for each such category shall be the percentage corresponding to the
current rating for such category on the relevant Valuation Date.  For the avoidance of doubt, any asset that is
not Eligible Collateral shall have a Value of zero for all purposes under this
Credit Support Annex.  Cash in U.S.
Dollars shall also constitute Eligible Collateral.

 

(ii)           Other
Eligible Support.

 

The following items will
qualify as “Other Eligible Support” for
the party specified:

 

Not applicable.

 

(iii)          Threshold.

 

(A)          “Independent
Amount”  with respect to Party A or to Party B, is not applicable.

 

(B)           “Threshold” means, with respect to Party A, USD
5,000,000, unless the Subordinated Claims Payment Condition is not met, in
which case it will be zero.

 

 

“Threshold”, with respect to Party B and any
Valuation Date is not applicable.

 

(C)           “Minimum
Transfer Amount” means, with respect to Party A and Party B,
USD 5,000,000, unless
the Subordinated Claims Payment Condition is not met, in which case it will be
zero with respect to Party A, and infinity with respect to Party B.

 

(D)          Rounding: The Delivery Amount will be rounded up to the nearest
integral multiple of USD 10,000. The Return Amount will be rounded down to the
nearest integral multiple of USD 10,000.

 

(c)                                  Valuation and Timing.

 

(i)            “Valuation
Agent” means the Reporting Agent (as defined in the Pledge
and Administration Agreement).

 

(ii)           “Valuation
Date” means each of (A) the earlier of (x) September 28,
2011 and (y) any Sovereign Guarantee Unenforceability Date (the “First Valuation Date”), (B) each day
after the First Valuation Date which is the last Business Day in a calendar
week, (each of the days in (A) and (B) a “Scheduled Valuation Date”) and (C) any additional
Business Day requested to be a Valuation Date by FSA or Party A from time to
time which is not a Scheduled Valuation Date (and is after the First Valuation
Date) and is notified to Party A or Party B and FSA, as applicable and the
Valuation Agent at least one Business Day in advance of the proposed additional
Valuation Date (each an “Additional Valuation
Date”), provided that the number of Additional Valuation Dates
requested by FSA shall not exceed 10 in any calendar year (and the number of
Additional Valuation Dates requested by Party A is not limited).

 

(iii)          “Valuation
Time” means the close of business in the city of the
Valuation Agent on the Local Business Day immediately preceding the Valuation
Date or date of calculation, as applicable; provided that
the calculations of Value and Exposure will be made as of approximately the
same time on the same date.

 

(iv)          “Notification Time” means 11:00 a.m.,
New York City time, on a Local Business Day.

 

(v)           Deemed Demand.  Paragraph 3(a) is
amended by adding, immediately following the words “upon a demand made by the
Secured Party” in Paragraph 3(a), the words “(which demand shall be deemed as
having been validly made automatically upon receipt of notice from the
Valuation Agent of a Delivery Amount resulting from the Valuation Agent’s
calculations on any Valuation Date)”.

 

(vi)          “Value” means FSAM Asset Value.

 

(vii)         No DCL
Collateral Period and No Dexia Collateral Period.

 

(A)          With respect to any date which falls
during a period which is (A) not on or after a Sovereign Guarantee
Unenforceability Date and (B) (I) on and after the First Collateral
Posting Date and prior to the Liquidity and Collateral Trigger Expiration Date
or (II) during a period that a DCL Bankruptcy has occurred and is
continuing (a “No DCL Collateral Period”),
(i) any Eligible Collateral Transferred by DCL, whether at any time before
or during such No DCL Collateral Period, will be deemed to have a Value of zero
during such No DCL Collateral Period (any such Eligible Collateral on any date
during 

 

2

 

the No DCL Collateral
Period the “Affected DCL Collateral”)
and (ii) only postings made by Dexia (whether made at any time before or
during such No DCL Collateral Period, and including by substitution in
accordance with the Credit Support Annex of Eligible Collateral posted by Dexia
for Eligible Collateral posted by DCL) will be considered in calculating any
applicable Delivery Amount and whether the obligation to Transfer Eligible
Collateral with a Value equal to such Delivery Amount has been met during such
No DCL Collateral Period; provided, that such Affected DCL Collateral shall be
Transferred to DCL against the simultaneous delivery of replacement Eligible
Collateral by Dexia.

 

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

 

(C)           In relation to any Put Settlement
Date arising from a Collateral Default Trigger occurring during a No DCL
Collateral Period or No Dexia Collateral Period, Party B shall Transfer to
Party A the relevant Affected DCL Collateral or Affected Dexia Collateral as of
the date of occurrence of the relevant Collateral Default Trigger as part of
the Put Settlement Assets delivered to Party A on such Put Settlement Date
(unless Party A has already effected a substitution for such Affected DCL Collateral
or Affected Dexia Collateral as described in Paragraph 13(c)(vii)).

 

(viii)        In the event that a Put Settlement Date
occurs (i) on or after a DCL Belgian Corporate Reorganization has occurred
and (ii) prior to the date on which (1) the Collateral Replacement
Date has occurred and (2) Eligible Collateral having a Value equal to the
Delivery Amount determined on the Collateral Replacement Date shall have been
Transferred under the Credit Support Annex, and except in the case of a Put
Settlement under which the Put Settlement Amount is paid to Party B by the
Sovereign Guarantors, (A) Party A will be required to pay the Put
Settlement Amount on the Put Settlement Date, (B) Party B will not be
required to Deliver the related Put Settlement Assets until the date following
the Put Settlement Date on which the Belgian Preference Period has expired and (C) pending
such Delivery on the date referred to in (B), Party A will be deemed to have
pledged the relevant Put Settlement Assets to Party B and Party B shall hold
such Put Settlement Assets as additional Posted Collateral hereunder (“Repledged Assets”).

 

(d)                                 Substitution.

 

(i)            “Substitution Date” has the meaning
specified in Paragraph 4(d)(ii).

 

3

 

(ii)           Consent.  If specified here as applicable, then the
Pledgor must obtain the Secured Party’s consent for any substitution pursuant
to Paragraph 4(d):  Inapplicable.

 

(e)                                  Dispute Resolution.

 

(i)            “Resolution
Time” means 1:00 p.m. New
York time on the Local Business Day following the date on which the notice of
the dispute is given under Paragraph 5.

 

(ii)           Value.  The provisions of Paragraph 5
will apply, provided, however, that any dispute as to the Indicative Market
Value of any FSAM Asset shall be resolved as set forth in the definition of “FSAM
Asset Value” and, to such extent, the provisions of Paragraph 5 shall not
apply.

 

(f)                                    Holding and Using Posted Collateral.

 

(i)            Eligibility to Hold Posted
Collateral; Custodians.  Party B
(through the Custodian) will be entitled to hold Posted Collateral pursuant to
Paragraph 6(b).

 

The Custodian for
Party B is: Wells Fargo Bank, National Association.

 

Party A and Party B agree that (x) Posted Collateral that is
denominated in USD, or that is Cash that is USD, will be credited to the Dexia
Collateral Account and held in the United States of America, and (y) all
other Posted Collateral will either be deposited in the Dexia Collateral
Account or granted to the Custodian directly acting as representative for the
benefit of Party B and held by the Custodian in a special designated pledged
account opened in its name in the Euroclear System with Euroclear Bank NV/SA in
accordance with Euroclear’s Multi Pledgor Pledged Account Terms and Conditions
(the “MPAA Account”).  The Custodian may use
agents and affiliates for purposes of opening, managing and operating the MPAA
Account.

 

Notwithstanding the
foregoing, if both a DCL Belgian Corporate Reorganization and a Sovereign
Guarantee Unenforceability Date have occurred, all Transfers of Eligible
Collateral will be made through, and all Posted Collateral will be held in, the
MPAA Account or another account (or subaccount or subcustody arrangement)
maintained in the Euroclear System.

 

(ii)           Use of Posted Collateral.  The provisions of Paragraph 6(c)(i) will
not apply to Party B, and the provisions of Paragraph 6(c)(ii) will apply to Party B;
provided, however, that

 

(A)          on any date on which the Collateral
Agent or FSA has delivered a Payment Failure Notice (as defined in the Pledge
and Administration Agreement) and the payment failure identified in such
Payment Failure Notice has not been cured on the third Business Day following
the Collateral Agent or FSA’s delivery of such Payment Failure Notice Paragraph 6(c)(i) will apply to Party B
such that the Collateral Agent and/or FSA shall have the rights, subject to the
terms and limitations of the Pledge and Administration Agreement, to (x) enter
into a Temporary Funding Transaction (as defined in the Pledge and
Administration Agreement) in relation to any Posted Collateral held by the
Collateral Agent hereunder or (y) solely in the circumstances described in
Section 11.2(b)(i)(C) of the Pledge and Administration Agreement, to
effect a Liquidation of Posted Collateral by sale for its obtainable market value,
and in each case apply the proceeds of such transaction in (x) or (y) to
satisfy one or more scheduled or expected Senior Priority Payments identified
in accordance with the provisions Section 11.2(b) of the Pledge and 

 

4

 

Administration Agreement
at or prior to the time when such Payment Failure Notice was sent (“Required Senior Priority Payments”), and
any such application of the proceeds of such transaction in (x) or (y) shall
also be deemed to satisfy (to the extent of such proceeds) any Liquidity Draw
Request which is outstanding and has not been funded on the date such proceeds
are applied;

 

(B) on any date on
or after the Collateral Replacement Date on which the Administrator, the
Collateral Agent or FSA has delivered a GIC Termination Liquidity Draw and the
relevant Bank under (and as defined in) the Liquidity Facility or Buyer under
(and as defined in) the Repurchase Facility Agreement, as applicable, has not
performed its payment obligations within the time required under the Liquidity
Facility or Repurchase Facility Agreement, as applicable, Paragraph 6(c)(i) will apply to Party B
such that the Collateral Agent and/or FSA shall have the rights to enter into a
Temporary Funding Transaction in relation to any Posted Collateral held by the
Collateral Agent hereunder, and apply the proceeds of such transaction to
satisfy the relevant GIC Termination Liquidity Draw; and

 

(C)           Party B or, if a Dexia Event of
Default has occurred, the Collateral Agent or FSA directly as third party
beneficiary, may instruct the transfer of any Posted Collateral which is
eligible to be posted as collateral to secure either (x) a FSA GIC
Contract or (y) a Third Party Hedge Agreement which is not a Subordinated
Hedge Agreement to the collateral account for such FSA GIC Contract or Third
Party Hedge Agreement, as applicable, and Paragraph 6(c)(i) will apply to Party B to the extent
necessary to permit such actions in (x) or (y); and

 

(D) If on any date
the “Offset of Collateral” provision is applicable under the Confirmation to
this Agreement, FSA as the Secured Party Representative shall identify one or
more items of Eligible Collateral having a Value equal to the Deemed Return
Amount that will be released to Party B in consideration for the corresponding
reduction of the Put Settlement Amount in relation to such Deemed Return
Amount.

 

Any use of Posted
Collateral (or the cash proceeds thereof) provided for under (A) through (C) shall
not be considered a Set-off under Paragraph 8(a)(iii) or otherwise affect
the inclusion of the Value of such Posted Collateral as Posted Credit Support
held by the Secured Party for purposes of Paragraph 3 or the determination of
any Delivery Amount or Return Amount thereunder, provided that (x) the
Value of any Posted Collateral Liquidated under (ii)(A)(y) above, or
Liquidated in connection with the termination of a Temporary Funding
Transaction, shall be fixed at the FSAM Asset Value thereof as most recently
determined hereunder at the time of such Liquidation (in connection with the
Collateral Sale Deficiency Amount and Collateral Sale Excess Amount adjustments
referred to below) and (y) to the extent that the Liquidation Proceeds of
any sale or cash obtained in a Temporary Financing Transaction have been
applied to satisfy a Qualifying Liquidity Payment (a “Liquidity Draw Offset”), the portion of the
FSAM Asset Value of the relevant Eligible Collateral obtained by multiplying (i) such
FSAM Asset Value times (ii) the relevant Liquidity Offset Fraction, shall
be no longer be included in determining the Value of Posted Credit Support held
by the Secured Party for purposes of Paragraph 3 or the determination of any
Delivery Amount or Return Amount hereunder.

 

(g)                                 Distributions and
Interest Amount.

 

(i)            Distributions. The
provisions of Paragraph 6(d)(i) will not apply.  The Custodian shall credit all Distributions
received to the Dexia Collateral Account or the MPAA Account, 

 

5

 

as applicable.  “Dexia Collateral Account” has the
meaning set forth in the Pledge and Administration Agreement.

 

(ii)                                  Interest Amount.  The provisions of Paragraph 6(d)(ii) will
apply, provided that (I) Posted Collateral in the form of Cash may be
invested only in cash equivalent investments eligible under the ALM Procedures
and agreed between the Custodian and the Administrator from time to time and (II) the
amount of interest on Posted Collateral in the form of Cash on any date will be
calculated by the Custodian based on the relevant investments in (I).

 

(h)                                 Additional Representation(s).  There are no additional representations by
either party.

 

(i)                                     Other Eligible Support
and Other Posted Support.

 

(i)                                     “Value” with respect
to Other Eligible Support and Other Posted Support means: not applicable.

 

(ii)                                  “Transfer” with respect to Other Eligible Support and Other
Posted Support means: not applicable.

 

(j)                                     Demands and Notices.  All demands, specifications and
notices under this Annex will be made pursuant to the Notices Section of
this Agreement, except that any demand, specification or notice shall be given
to or made at the following addresses, or at such other address as the relevant
party may from time to time designate by giving notice (in accordance with the
terms of this paragraph) to the other party:

 

If
to Party A, at the address specified pursuant to the Notices Section of
this Agreement.

 

If
to Party B, at the address specified pursuant to the Notices Section of
this Agreement.

 

If to Party B’s
Custodian:  Same address as if to Party B
pursuant to the Notices Section of this Agreement.

 

(k)                                 Address for Transfers.   Each Transfer hereunder
shall be made to the address specified in writing from time to time by the
party to which such Transfer will be made.

 

Party A account details  — To be
provided.

 

Party B account details  — To be
provided.

 

(l)                                     Additional Transfers.  On
any date, whether or not a Valuation Date, Party A may at its option  Transfer additional Eligible Collateral to the Dexia Collateral Account  for the purpose of making the resulting Posted Collateral available for
use by Party B in the manner contemplated by (f)(ii)(B) above.

 

(m)                               Other Provisions.

 

(i)            Collateral
Account.  Party A and Party B acknowledge and agree that
the Custodian shall hold, record and identify all Posted Collateral in the Dexia
Collateral Account or the MPAA Account.

 

(ii)           Agreement as to Single
Secured Party and Single Pledgor.
Party A and Party B hereby agree that, notwithstanding anything to the
contrary in this Annex, (a) the term “Secured Party” as used in this Annex
means only Party B, (b) the term “Pledgor” as used in this 

 

6

 

Annex means only Party A, (c) only
Party A makes the pledge and grant in Paragraph 2, the acknowledgement in the
final sentence of Paragraph 8(a) and the representations in Paragraph 9.

 

(iii)                               Events
of Default.

 

Paragraph 7 shall not apply.  Any failure by Party A to
comply with or perform any obligation to be complied with or performed by Party
A under this Credit Support Annex shall only be an Event of Default if Section 5(a)(i) of
the Agreement (as amended by the Schedule) is or becomes applicable thereto.

 

(iv)                              Additional
Definitions.  As used in this Annex:

 

“ALM Noncompliance Amount” means on any date of determination on which a
Dexia Event of Default has not occurred, the sum of (i) the aggregate of
the ALM Noncompliance Derivative Amounts plus (ii) the ALM Noncompliance
Operational Amount.

 

“ALM
Noncompliance Derivative Amount” means on any date of determination on which a
Dexia Event of Default has not occurred, and in relation to any interest rate,
currency or other derivative transaction (whether such transaction would be
classified as an Asset Swap or a Liability Swap) which (1) either (A) Party
A has agreed, following an objection by FSA, was required to have been effected
in order to comply with the ALM Procedures or (B) the ALM Arbiter has
concluded was required to have been effected in order to comply with the ALM
Procedures, as applicable, and (2) has not yet been effected by Party B,
an amount equal to the FSAM Liability Swap Benefit or FSAM Asset Swap Benefit,
as applicable, that would result from such transaction having been effected on
the date the ALM Arbiter determines (or that Party A agrees with FSA) that it
should have been effected and currently being in effect on such date of
determination.  In determining such FSAM
Liability Swap Benefit or FSAM Asset Swap Benefit the Valuation Agent may rely
on the determination of FSAM’s swap counterparty under any Third Party Hedge
Agreement or on the determination of the ALM Arbiter.

 

“ALM
Noncompliance Operational Amount” means on any date of determination on which (A) either
(i) the ALM Arbiter has concluded (or Party A has agreed, following an
objection by FSA) that Party B has failed to comply with a requirement of the
ALM Procedures or (ii) the ALM Arbiter has concluded (or Party A has
agreed, following an objection by FSA) that Party B has adopted an amendment or
modification to the ALM Procedures (other than a Dexia Policy Amendment) such
that the amended ALM Procedures do not constitute a reasonable and prudent
asset and liability management policy in accordance with prevailing market
standards for portfolio management activities of the same type, (B) FSA
has not consented to the relevant noncompliance, amendment or modification and (C) Party
B has failed to remedy the relevant noncompliance or rescind the relevant
amendment or modification to the ALM Procedures, an amount equal to 25% times
the Spread Component of the GIC Business Costs Amount as most recently
determined on such date.

 

“Collateral Replacement Date” means
the earlier to occur of (i) the First Collateral Posting Date, and (ii) any
Sovereign Guarantee Unenforceability Date.

 

7

 

“Collateral Sale
Excess Amount”
means in relation to each item of Eligible Collateral Liquidated by Party B or
the Collateral Agent in the circumstances set forth in Paragraph
13(f)(ii)(A)(y), (A) one minus the Liquidity Offset Fraction times (B) the
excess, if any, of (i) the relevant Liquidation Proceeds over (ii) the
FSAM Asset Value of such item of Eligible Collateral as most recently
determined hereunder at the time of such Liquidation.

 

“Collateral Sale
Deficiency Amount” means in relation to each item of Eligible Collateral sold by Party B
or the Collateral Agent in the circumstances set forth in Paragraph
13(f)(ii)(A)(y), (A) one minus the Liquidity Offset Fraction times (B) the
excess, if any, of (i) the FSAM Asset Value of such item of Eligible
Collateral as most recently determined hereunder at the time of such
Liquidation over (ii) the applicable Liquidation Proceeds.

 

“Collateral Value”
means, with respect to each Hedge Agreement, the Value of the Posted Collateral
held by the Collateral Agent on behalf of FSAM (and, for the avoidance of
doubt, not merely held by DCL as Credit Support Provider of FSAM under the
relevant Hedge Agreement) in relation to each Hedge Agreement, as determined by
the Valuation Agent.  For purpose of the
foregoing, with respect to any Hedge Agreement, “Value” and “Posted Collateral”
shall have the meanings set forth in Hedge Agreement, and the Valuation Agent
may rely on the determination of such Value by the Valuation Agent (as defined in
the relevant Hedge Agreement) in accordance with the terms of the relevant
Hedge Agreement.

 

“Dexia Policy Amendment”
means an amendment or modification to the ALM Procedures that is necessary, as
reasonably evidenced to FSA by Party A, to conform such ALM Procedures to
generally applicable risk management policies within the Dexia group.

 

“Exposure” means on any date of
determination:

 

Prior to the Collateral
Replacement Date, zero.

 

On the Collateral
Replacement Date and from time to time thereafter, an amount equal to the sum,
which shall not be less than zero, of:

 

(1)                                  the sum of

 

(A)        the aggregate GIC Redemption Balance of
the FSA GIC Contracts as of such date, plus

 

(B)         the GIC Business Costs Amount most
recently calculated on or prior to such date, plus

 

(C)         the aggregate sum of the FSAM Exposure
to each of its Hedge Counterparties as of such date; plus

 

(D)        the aggregate of all the FSAM Asset Swap
Costs and all the FSAM Liability Swap Costs, in each case in relation to Third
Party Hedge Agreements other than Third Party Hedge Agreements which are
Qualifying Hedge Agreements on such date; plus

 

8

 

(E)         to the extent that (x) the “Credit
Support Amount” applicable to FSAM  in
relation to any Third Party Hedge Agreement that is not a Qualifying
Hedge Agreement as of
such date, plus or minus any “unpaid amounts” that are outstanding between the
parties exceeds (y) the
amount determined in relation to such Third Party Hedge Agreement under (D),
the aggregate of such excess of (x) over (y) in relation to all such
Third Party Hedge Agreements; plus

 

(F)         the ALM Noncompliance Amount (if any); plus

 

(G)         the Lien Creditor Amount (if any); plus

 

(H)        the Principal Forgiveness Amount (if
any); plus

 

(I)          the aggregate of the Collateral Sale
Deficiency Amounts determined on or prior to such date, if any;

 

minus

 

(2)                                  the sum of

 

(A)          the aggregate FSAM Asset
Value of the Put
Portfolio Assets, plus

 

(B)           the aggregate FSAM Asset
Value of the Excluded
Assets and Other Assets (including without duplication (I) cash proceeds
of any Defaulted Collateral Amount that has been paid by the Sovereign
Guarantors as a Put Settlement Amount under the Sovereign Guarantee and not
invested in Permitted Investments constituting Other Assets or applied under
the Priority of Payments, (II) Repledged Assets, (III) any other cash
held in respect of the Required Reserve and (IV) all other amounts
standing to the credit of the FSAM Cash Account or other accounts maintained by
the Collateral Agent under the Pledge and Administration Agreement), plus

 

(C)           the aggregate FSAM Asset Value of any
Posted Collateral held by the Collateral Agent under the Dexia Non-Guaranteed
Put Contract, plus

 

(D)          the aggregate of the Collateral Values
related to Hedge Agreements, plus

 

(E)           the aggregate of all the FSAM Asset
Swap Benefits in relation to Hedge Agreements; plus

 

(F)           the aggregate of the Collateral Sale
Excess Amounts determined on or prior to such date, if any.

 

“Eligible Dealers”
means  JP Morgan Securities Inc.,
Goldman Sachs & Co., Deutsche Bank Securities, Inc., Morgan
Stanley & Co., Bank of America Securities LLC, Citigroup Global
Markets Inc. and Credit Suisse Securities (USA) LLC, and such other dealers as
may be reasonably agreed among Party A, the Administrator and FSA from time to
time.

 

“FSAM Asset Swap Benefit”
means in relation to each derivative transaction that is identified as an Asset
Swap in the Hedge Agreement Register, the mark to market value of such
derivative transaction (if any) in favor of FSAM as determined by the Valuation

 

9

 

Agent
hereunder in accordance with the definition of Exposure applicable under the
relevant Hedge Agreement (but disregarding any transactions other than such Asset
Swap that would otherwise be included in the determination of Exposure
thereunder as defined therein), where the Valuation Agent hereunder may rely
for this purposes on the determination of Exposure (or the components thereof)
by the relevant Third Party Valuation Agent.

 

“FSAM Asset Swap Cost”
means in relation to each derivative transaction that is identified as an Asset
Swap in the Hedge Agreement Register, the mark to market value of such
derivative transaction (if any) in favor of FSAM’s Hedge Counterparty as
determined by the Valuation Agent hereunder in accordance with the definition
of Exposure applicable under the relevant Hedge Agreement (but disregarding any
transactions other than such Asset Swap that would otherwise be included in the
determination of Exposure thereunder as defined therein), plus or minus any “unpaid
amounts” that are outstanding between the parties, where the Valuation Agent
hereunder may rely for this purposes on the determination of Exposure (or the
components thereof) by the relevant Third Party Valuation Agent.

 

“FSAM Assets Valuation Percentage”
means in relation to each category of FSAM Asset, the valuation percentage
corresponding to the current rating of such FSAM Asset as set forth under the
heading “Collateral Rating” on Schedule A hereto.

 

“FSAM Asset Value”
means in relation to each FSAM Asset or item of Eligible Collateral, on any
date of determination, the product of (i) (A) in the case of an FSAM
Asset, the Outstanding Principal Amount thereof times the indicative market
price (as a percentage of par) of such FSAM Asset determined by the Valuation
Agent in accordance with the procedures attached as Schedule C, and (B) in
the case of an item of Eligible Collateral, the unpaid principal balance
thereof times the indicative market price (as a percentage of par) of such item
of Eligible Collateral, determined in accordance with generally applicable
procedures used by the Custodian for valuing similar types of assets (each of (A) and
(B), the “Indicative Market Value”)
and (ii) the FSAM Assets Valuation Percentage corresponding to the
relevant category of FSAM Asset (or item of Eligible Collateral, as
applicable).  The FSAM
Asset Value with respect to FSAM Assets that are not Put Portfolio Assets,
Excluded Assets, Permitted Investments or cash will be zero.

 

Either
the Pledgor or FSA (a “Disputing Party”)
may dispute the determination of any FSAM Asset Value on the basis of the
Indicative Market Value by the Valuation Agent; provided that in relation to
any single Valuation Date neither the Pledgor nor the Secured Party may dispute
the Valuation Agent’s determination of the FSAM Asset Value in relation to more
than 10% of the FSAM Assets (by principal amount, with such 10% permitted
amount to be determined separately for the Pledgor or Secured Party, as
applicable).  If a Disputing Party
disputes the Valuation Agent’s calculation of an FSAM Asset Value in accordance
with the foregoing restriction, then (1) the Disputing Party will notify
the other party, FSA and the Valuation Agent not later than the close of
business on the Local Business Day that the date that a demand is made or
deemed to have been made under Paragraph 3 (if such demand was made or
deemed to have been made at or prior to the Notification Time), or by 12:00
noon (New York City time) on the next Local Business Day (if such demand was
made or deemed to have been made at after the Notification Time), (2) subject
to Paragraph 4(a), the appropriate party will Transfer the full amount demanded
or deemed to have been demanded to the other party 

 

10

 

in
accordance with the timing set forth in Paragraph 4(b), (3) the parties
will consult with each other in an attempt to resolve the dispute and (4) if
they fail to resolve the dispute by the Resolution Time, then in relation to
each FSAM Asset for which one of the parties has initiated a dispute within the
required time, the Valuation Agent shall request bids from at least three
Eligible Dealers, one of which shall be identified by the Pledgor, one of which
shall be identified by FSA and the remainder of which shall be selected by the
Valuation Agent.  For any bid to be
eligible for use in calculating the FSAM Asset Value (each an “Eligible Bid”), it (i) must be
received from the Eligible Dealer at or before 1:00 p.m. on the business
day following the Resolution Time, and (ii) must be a firm bid at which
the Eligible Dealer is ready and willing to purchase assets determined by the
Valuation Agent to be comparable, in an amount determined by the Valuation
Agent to be representative, at such price (provided, that in obtaining such
bid, the Valuation Agent shall not be required to commit to actually deliver
and sell the asset to any bidder).  On
the basis of the Eligible Bids received the Valuation Agent shall determine the
FSAM Asset Value as follows:

 

(i)                                     In the event
that the Valuation Agent receives any Eligible Bid that is equal to or greater
than the Indicative Market Value for any FSAM Asset, the Indicative Market
Value determination for such FSAM Asset shall prevail without consideration of
any other Eligible Bid; or

 

(ii)                                  If the
Valuation Agent does not receive any Eligible Bid that is equal to or greater
than the Indicative Market Value for any FSAM Asset, then:

 

(a)           if the Valuation Agent receives three
or more Eligible Bids, the Valuation Agent shall calculate the arithmetic mean
of the three lowest Eligible Bids received (the “Bid Average”), and if such Bid Average is more than 105% or
less than 95% of the Indicative Market Value, the Valuation Agent shall adjust
the determination of the FSAM Asset Value so as to be within the range that is
not more than 105% or less than 95% of the Indicative Market Value (but by no
more than the amount necessary to be within such range), which adjusted FSAM
Asset Value shall be binding; or

 

(b)           if the Valuation Agent receives only
two Eligible Bids, the Valuation Agent shall use the Indicative Market Value as
one of the three bids used to calculate the Bid Average, and the Valuation Agent
shall determine FSAM Asset Value in accordance with sub-clause (a) above;
or

 

(c)           in the event that fewer than two
Eligible Bids are received, the Indicative Market Value determination shall
prevail without consideration of any Eligible Bid.

 

“FSAM Exposure” means
in relation to each Hedge Agreement the aggregate Exposure (if any) of FSAM to
the relevant Hedge Counterparty determined by the Valuation Agent in accordance
with the definition of Exposure applicable under the relevant Hedge Agreement
(where the Valuation Agent may rely for this purposes on the determination of
Exposure by the valuation agent or calculation agent under such Hedge
Agreement).  For the avoidance of doubt,
the determination of FSAM Exposure shall not be reduced by any Threshold
applicable to collateral postings under the relevant Hedge Agreement.

 

11

 

“FSAM Liability Swap Benefit”
means in relation to each derivative transaction that would be identified as a
Liability Swap in the Hedge Agreement Register, the mark to market value of
such derivative transaction (if any) in favor of FSAM that would be determined
by the Valuation Agent in accordance with the definition of Exposure applicable
under any Hedge Agreement selected by the Administrator (but disregarding any
transactions other than such transaction that would otherwise be included in
such determination of Exposure); or if such derivative transaction would not be
documented under an ISDA Master Agreement, the current market value of such
transaction in the relevant futures market or similar market as reasonably
estimated by the Administrator.

 

“FSAM Liability Swap Cost”
means in relation to each derivative transaction that is identified as a
Liability Swap in the Hedge Agreement Register, the mark to market value of
such derivative transaction (if any) in favor of FSAM’s Hedge Counterparty as
determined by the Valuation Agent hereunder in accordance with the definition
of Exposure applicable under the relevant Hedge Agreement (but disregarding any
transactions other than such Liability Swap that would otherwise be included in
such determination of Exposure), plus or minus any “unpaid amounts” that are
outstanding between the parties, where the Valuation Agent hereunder may rely
for this purposes on the determination of Exposure (or the components thereof)
by the relevant Third Party Valuation Agent.

 

“GIC Business Costs Amount”
means on any date of determination the amount applicable under the terms set
forth in Schedule B in relation to such date, as most recently determined by
the Calculation Agent.

 

“GIC Redemption Balance”
means the outstanding principal balance of a GIC or, if a GIC accretes a
redemption value based on a fixed series of payments, such accreted redemption
value, provided, however that any component of such redemption value that is
attributable to a makewhole or prepayment premium payable upon redemption of
the relevant GIC in respect of changes in interest rates shall be excluded in
determining such redemption value.

 

“GIC
Termination Liquidity Draw” means a Liquidity Draw Request for
the purpose of paying, or reserving funds for payment of, the maximum amount potentially payable
under one or more GICs due to mandatory terminations, or terminations at the
option of the GIC Holder under the GIC Contracts, as a result of a GIC Credit
Event (as defined in the Liquidity Facility or Repurchase Agreeement Facility,
as applicable) which has made one or more GIC Termination Downgrade
Provisions become applicable under the relevant GIC Contracts.

 

“GIC Termination Downgrade Provision”
means a provision that requires (i) the termination and repayment of a GIC
Contract either automatically, or assuming notice from the relevant GIC Holder
electing such termination and repayment (notwithstanding any posting of
collateral) and (ii) becomes applicable upon a specified downgrade of the
rating of FSA’s financial strength.

 

“Lien” means, with respect to any
asset, any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance,
charge or security interest in, on or of such asset.

 

“Lien Creditor Amount” means, as of
any date, an amount equal to the sum of (x) the amount of any judgment,
tax claim or claim under the Employee Retirement Income 

 

12

 

Security
Act of 1974 or equivalent laws under non-U.S. jurisdictions (including any
interest and/or penalties on any such amounts) which is secured by a Lien on
any Posted Collateral or FSAM Assets, plus (y) an amount equal to the
aggregate amount of obligations (including any interest on such obligations
accrued up to and including such date) which are secured by a Lien on any
Posted Collateral or by FSAM Assets (other than the Lien of the Collateral
Agent or any Secured Party under the Pledge and Administration Agreement as
contemplated by the terms of such Agreement) which has not been discharged and
with respect to which Party A has received 30 days’ prior notice from Party B
of the existence of such Lien.

 

“Liquidation” means
either (i) the sale for cash of Eligible Collateral or (ii) the
termination of a Temporary Funding Transaction in relation to Eligible
Collateral on terms whereby the repurchase agreement buyer retains such
Eligible Collateral and the repurchase agreement seller retains the Liquidation
Proceeds.

 

“Liquidation Proceeds”
means the cash sale proceeds from a sale of Eligible Collateral or the cash proceeds of the financing
obtained in connection with such Temporary Funding Transaction.

 

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

 

“Liquidity Offset Fraction”
means in the case of a Liquidity Draw Offset, the fraction obtained by dividing
(i) the amount of the Liquidity Draw Offset by (ii) the full
Liquidation Proceeds of any sale or cash amount of the relevant Temporary
Financing Transaction.

 

“Local Business Day” means any day on
which (A) commercial banks are open for business (including dealings in
foreign exchange and foreign currency deposits) in New York and the location of
Party A, Party B and any Custodian, and (B) in relation to a Transfer of
Eligible Collateral, any day on which the clearance system agreed between the
parties for the delivery of Eligible Collateral is open for acceptance and
execution of settlement instructions (or in the case of a Transfer of Cash or
other Eligible Collateral for which delivery is contemplated by other means a
day on which commercial banks are open for business (including dealings in
foreign exchange and foreign deposits) in New York and the location of Party A,
Party B and any Custodian).

 

“Principal Forgiveness Amount” means
an amount equal to the aggregate of all amounts of principal forgiven by the
holders of any Put Portfolio Assets, Excluded Assets or Other Assets pursuant
to amendments to the Underlying Instruments which result in a reduction of the
Outstanding Principal Amount of the related Put Portfolio Assets, Excluded
Assets or Other Assets (except to the extent that either (A) such amount
of principal forgiven has been separately paid by Party A to Party B as a
Writedown Amount under this Agreement or (B) a Put Settlement Date has
occurred and the Put Settlement Amounts in relation thereto have already been
paid in relation to the relevant Put Portfolio Assets, Excluded Assets or Other
Assets prior to the relevant forgiveness of principal).

 

“Qualifying Hedge Agreement”
means a Third Party Hedge Agreement that (i) is a Subordinated Hedge Agreement and (ii) with respect to which on
the date of determination, Dexia or its Affiliates have posted all collateral
required to be posted in relation to such Third Party Hedge Agreement under the
credit support annex for such 

 

13

 

Third Party Hedge
Agreement (including by satisfying such requirements through the credit support
annex for the Dexia Affiliate guaranteeing such Third Party Hedge Agreement) as
of such date.  For the avoidance of
doubt, collateral posted by Dexia or its Affiliates in relation to any Hedge
Agreement that is treated as a Qualifying Hedge Agreement shall be deemed not
to constitute a Put Portfolio Asset, Excluded Asset or Other Asset, or to have
any FSAM Asset Value for purposes of the determination of Exposure hereunder,
whether or not the relevant Hedge Counterparty treats Party B as the pledgor or
beneficial owner of such collateral for purposes of the relevant Hedge
Agreement.

 

“Qualifying Liquidity Payment”
means (i) if any undrawn or unutilized commitments remaining outstanding
with respect to the Guaranteed Liquidity Facilities and such Guaranteed
Liquidity Facilities have not been terminated, a payment with respect to a Liquidity
Draw Request and (ii) if no undrawn or unutilized commitments remain
outstanding under the Guaranteed Liquidity Facilities or such Guaranteed
Liquidity Facilities have been terminated, a payment of principal or redemption
amount in relation to an FSA GIC Contract that if not otherwise paid would be
required to be paid by Party A as an “Obligation” under the Dexia FP Guarantee.

 

“Subordinated Hedge Agreement”
means each Third Party Hedge Agreement in relation to which Party A, FSAM and
the relevant Hedge Counterparty have entered into an amendment substantially in
the form set forth in Schedule D, provided that Party A, Party B and FSA
acknowledge and agree that variations in the terms of individual amendments
based on such form either (i) that do not impair in any material respect
the direct or indirect benefits to Party B and FSA of the amendment
contemplated by such form or (ii) to which FSA has given its consent not
to be unreasonably withheld or delayed, shall not prevent a Third Party Hedge
Agreement from qualifying as a Subordinated Hedge Agreement.

 

“Third Party Valuation Agent”
means the “Valuation Agent” as defined in a Hedge Agreement.

 

Other terms.  Capitalized terms used and not defined herein
have the meanings set forth in the Pledge and Administration Agreement or the
Confirmation to this Agreement.

 

(v)                                 Rating
Agency Revisions.  Notwithstanding the provisions for the calculation of
Exposure and Value set forth above, if each of Moody’s Investors Service,
Standard and Poor’s Rating Services and Fitch Ratings Inc. (the “Rating Agencies”) confirm that the GIC
Issuers’ obligations in relation to the FSA GIC Contracts will continue to be
rated at least “Aa2/AA/AA” (without giving effect to the Retained FSA Policies
other than Secondary Policies) with a lesser Exposure being collateralized by
Party A or different FSAM Assets Valuation Percentage being applicable, then
the calculation of Exposure or FSAM Asset Value described above shall be
revised accordingly pursuant to Section 9(b) of this Agreement, and
when such amendment is effective Party A may post such lesser Credit Support
Amount as results from such amendment and/or receive a Return Amount of any
resulting excess Credit Support Amount (any such change a “Required Collateral Reduction”); provided,
further, that no Return Amount shall apply unless, prior to any Transfer of
such Return Amount, each Rating Agency confirms that the credit rating assigned
to the financial strength of FSA would not be downgraded or withdrawn as a
result of such Transfer.  Any rating
issued in accordance with the preceding sentence must be a monitored rating
(with the related costs and expenses being borne by Party A).

 

14

 

If after being obtained
any rating of the GIC Issuers is subsequently downgraded below “Aa3” by Moody’s
or “AA-” by S&P or Fitch or withdrawn, the definitions of Exposure and FSAM
Assets Valuation Percentage will be reinstated to require the Credit Support
Amount initially set forth herein prior to any Required Collateral Reductions,
and Party A shall be required to Transfer Eligible Collateral to the extent of
any resulting increase in the Credit Support Amount resulting from such
reinstatement within five Business Days of receiving notice of such downgrade.  Provided Party A satisfies such Transfer
obligations, the FSAM Assets Valuation Percentage shall thereafter be amended
as necessary in consultation with the Rating Agencies such that the rating of
the GIC Issuers will be at least “Aa3” by Moody’s, “AA-” by S&P and “AA-”
by Fitch, provided that in no event shall the definitions of Exposure and FSAM
Assets Valuation Percentage be reinstated to require a higher Credit Support
Amount than initially set forth herein prior to any Required Collateral Reductions.

 

(m)                               Remedies, Waiver.

 

(i)                                     In addition to
the rights and remedies of the Secured Party or its designee under Paragraph
8(a), and subject in each case to the provisions of Section 5.3 of the
Pledge and Administration Agreement, the Pledgor agrees that if at any time (1) an
Event of Default with respect to the Pledgor has occurred and is continuing and
FSA has become the Secured Party Representative, or (2) an Early
Termination Date has occurred or been designated as the result of an Event of
Default with respect to the Pledgor, then, unless the Pledgor has paid in full
all of its Obligations that are then due, the Collateral Agent (as assignee of
the Secured Party and at the direction of the Secured Party Representative) may
exercise any of its rights or remedies afforded under any agreement, by law, at
equity or otherwise, including the rights and remedies of a secured party under
the Uniform Commercial Code as in effect in any applicable jurisdiction, or
under other applicable law, without further notice, demand or presentment.  Such rights and remedies include the rights
to use self-help or other remedies, including without limitation (i) taking possession of any Posted Collateral,
wherever situate; (ii) entering any premises or obtain sole control of any
account where Posted Collateral is located; and (iii) selling or otherwise
disposing of any Posted Collateral “as is” without representation or warranty
of any kind, at public or private sale, with such notice as may be required by
applicable law, in lots or in bulk, at such locations, all as the
Collateral Agent (as assignee of the Secured Party and at the direction of the
Secured Party Representative), in its
sole discretion, deems advisable.  The
Collateral Agent (as assignee of the Secured Party and at the direction of the
Secured Party Representative) shall
have the right to sell, lease or otherwise dispose of any Posted Collateral for
cash, credit or any combination thereof, and the Collateral Agent (as
assignee of the Secured Party and at the direction of the Secured Party
Representative) may purchase any Posted
Collateral at public or, if permitted by law, private sale and, in lieu of
actual payment of the purchase price, may set off the amount of such price
against the Obligations.  The
rights and remedies of the Collateral Agent are cumulative, may be exercised at
any time and from time to time, concurrently or in any order, and are not
exclusive of any other rights or remedies available by agreement, by law, at
equity or otherwise.

 

(ii)                                  Paragraph 8(b) shall
not apply.

 

15

 

IN
WITNESS WHEREOF, the parties have executed this Annex by their duly authorized
representatives as of the date of the Agreement.

 

	
  DEXIA CRÉDIT LOCAL S.A.

  	
   

  	
  FSA ASSET MANAGEMENT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEXIA SA

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

 

Schedule A – Categories and Valuation Percentages

 

	
  VALUATION PERCENTAGE AS % OF MARK TO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  COLLATERAL RATING

  	
   

  
	
  MARKET VALUE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AAA

  	
   

  	
  AA

  	
   

  	
  A

  	
   

  	
  BBB

  	
   

  	
  BIG

  	
   

  
	
  (“CSA” = CSA Eligible)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Government

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Maturity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  USA (issued after July 18, 1984)

  	
   

  	
  Bills / Notes/ Bonds /Inflation indexes

  	
   

  	
  0 to 5

  	
   

  	
  98

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  USA (issued after July 18, 1984)

  	
   

  	
  Bills / Notes/ Bonds /Inflation indexes

  	
   

  	
  >5 to 10

  	
   

  	
  97

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  USA (issued after July 18, 1984)

  	
   

  	
  Bills / Notes/ Bonds /Inflation indexes

  	
   

  	
  >10

  	
   

  	
  93

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USA (issued after July 18, 1984)

  	
   

  	
  Zero Coupons / STRIPS

  	
   

  	
  0 to 5

  	
   

  	
  98

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USA (issued after July 18, 1984)

  	
   

  	
  Zero Coupons / STRIPS

  	
   

  	
  >5 to 10

  	
   

  	
  95

  	
  %

  	
  95

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USA (issued after July 18, 1984)

  	
   

  	
  Zero Coupons / STRIPS

  	
   

  	
  >10

  	
   

  	
  90

  	
  %

  	
  90

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  FRANCE/ BELGIUM/ GERMANY / UK / NETHERLANDS

  	
   

  	
  USD Denominated

  	
   

  	
  0 to 5

  	
   

  	
  97

  	
  %

  	
  97

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  FRANCE/ BELGIUM/ GERMANY / UK / NETHERLANDS

  	
   

  	
  USD Denominated

  	
   

  	
  >5 to 10

  	
   

  	
  95

  	
  %

  	
  95

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  FRANCE/ BELGIUM/ GERMANY / UK / NETHERLANDS

  	
   

  	
  USD Denominated

  	
   

  	
  >10

  	
   

  	
  90

  	
  %

  	
  90

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  FRANCE/ BELGIUM/ GERMANY / UK / NETHERLANDS

  	
   

  	
  Local Currency

  	
   

  	
  0 to 5

  	
   

  	
  92

  	
  %

  	
  92

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  FRANCE/ BELGIUM/ GERMANY / UK / NETHERLANDS

  	
   

  	
  Local Currency

  	
   

  	
  >5 to 10

  	
   

  	
  90

  	
  %

  	
  90

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

	
  VALUATION PERCENTAGE AS % OF MARK TO 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  COLLATERAL RATING

  	
   

  
	
  MARKET VALUE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AAA

  	
   

  	
  AA

  	
   

  	
  A

  	
   

  	
  BBB

  	
   

  	
  BIG

  	
   

  
	
  CSA

  	
   

  	
  FRANCE/ BELGIUM/ GERMANY / UK / NETHERLANDS

  	
   

  	
  Local Currency

  	
   

  	
  >10

  	
   

  	
  85

  	
  %

  	
  85

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Government
  Agency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
  US Agency

  	
   

  	
  GNMA

  	
   

  	
  0 to 5

  	
   

  	
  92

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
   

  	
   

  	
  GNMA

  	
   

  	
  >5 to 10

  	
   

  	
  90

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
   

  	
   

  	
  GNMA

  	
   

  	
  >10

  	
   

  	
  85

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
   

  	
   

  	
  FDIC

  	
   

  	
  0 to 5

  	
   

  	
  92

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSA

  	
   

  	
   

  	
   

  	
  FNM RMBS /FHM RMBS

  	
   

  	
  ALL

  	
   

  	
  82

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Municipal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  75

  	
  %

  	
  70

  	
  %

  	
  60

  	
  %

  	
  50

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  Military Housing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60

  	
  %

  	
  50

  	
  %

  	
  40

  	
  %

  	
  30

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UK
  Regulated Utility

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
  60

  	
  %

  	
  50

  	
  %

  	
  40

  	
  %

  	
  0

  	
   

  
	
  Trust
  Preferreds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  25

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SF

  	
   

  	
  Non-Agency RMBS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Prime Mtg

  	
   

  	
   

  	
   

  	
  25

  	
  %

  	
  20

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Alt-A Front

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Alt-A LCF

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Alt-A Mezz

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Alt-A Mid

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Alt-A Pass Thru

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Subprime Auto

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Subprime Front

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Subprime LCF

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Subprime Mezz

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Subprime Mid

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Subprime Pass Thru

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  

 

2

 

	
  VALUATION PERCENTAGE AS % OF MARK TO 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  COLLATERAL RATING

  	
   

  
	
  MARKET VALUE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AAA

  	
   

  	
  AA

  	
   

  	
  A

  	
   

  	
  BBB

  	
   

  	
  BIG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Option ARM Front

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Option ARM Mid

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Option ARM Pass Thru

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  HELOCs

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  CES

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  ABS CDO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  CLO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
  CMBS/CRE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CMBS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60

  	
  %

  	
  50

  	
  %

  	
  40

  	
  %

  	
  30

  	
  %

  	
  0

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Demutualization

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  FSA Refi

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  Other NIM

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  Radian NIM

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  Triple-X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  Domestic IOU

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  5

  	
  %

  	
  0

  	
   

  
	
   

  	
   

  	
  Westlake Funding (Auto)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60

  	
  %

  	
  55

  	
  %

  	
  50

  	
  %

  	
  40

  	
  %

  	
  0

  	
   

  

 

3

 

Schedule
B — Calculation of GIC Business Costs Amount

 

The
Calculation Agent shall, within five (5) Business Days after the last day
of each calendar month (each such last day of a calendar month, a “Monthly
Valuation Date), calculate the “GIC Business Costs Amount” as of such Monthly Valuation Date.  The GIC Business Costs Amount for each
Monthly Valuation Date shall be the sum of the “Expenses Component” and the “Spread
Component”, each calculated in accordance with this Schedule B.

 

I.                                         Expenses
Component

 

1.                                       The Expenses
Component for any Monthly Valuation Date shall be the amount set forth in the
table below (as amended from time to time in accordance with paragraphs I.2,
and plus or minus any items identified pursuant to paragraph I.3 below, the “Expenses
Component Table”) for the relevant year of determination in which such Monthly
Valuation Date falls:

 

	
  Year

  	
   

  	
  Expenses Component

  ($ mm)

  	
   

  
	
  2009

  	
   

  	
  249.4

  	
   

  
	
  2010

  	
   

  	
  230.7

  	
   

  
	
  2011

  	
   

  	
  222.1

  	
   

  
	
  2012

  	
   

  	
  213.7

  	
   

  
	
  2013

  	
   

  	
  205.7

  	
   

  
	
  2014

  	
   

  	
  197.9

  	
   

  
	
  2015

  	
   

  	
  190.3

  	
   

  
	
  2016

  	
   

  	
  182.8

  	
   

  
	
  2017

  	
   

  	
  175.2

  	
   

  
	
  2018

  	
   

  	
  167.6

  	
   

  
	
  2019

  	
   

  	
  160.0

  	
   

  
	
  2020

  	
   

  	
  152.4

  	
   

  
	
  2021

  	
   

  	
  147.1

  	
   

  
	
  2022

  	
   

  	
  141.8

  	
   

  
	
  2023

  	
   

  	
  136.5

  	
   

  
	
  2024

  	
   

  	
  131.2

  	
   

  
	
  2025

  	
   

  	
  125.8

  	
   

  
	
  2026

  	
   

  	
  120.5

  	
   

  
	
  2027

  	
   

  	
  115.1

  	
   

  
	
  2028

  	
   

  	
  109.7

  	
   

  
	
  2029

  	
   

  	
  104.3

  	
   

  
	
  2030

  	
   

  	
  98.9

  	
   

  
	
  2031

  	
   

  	
  93.5

  	
   

  
	
  2032

  	
   

  	
  88.1

  	
   

  
	
  2033

  	
   

  	
  82.7

  	
   

  
	
  2034

  	
   

  	
  77.3

  	
   

  
	
  2035

  	
   

  	
  71.8

  	
   

  
	
  2036

  	
   

  	
  66.3

  	
   

  
	
  2037

  	
   

  	
  60.9

  	
   

  
	
  2038

  	
   

  	
  55.4

  	
   

  
	
  2039

  	
   

  	
  49.9

  	
   

  
	
  2040

  	
   

  	
  44.4

  	
   

  
	
  2041

  	
   

  	
  38.9

  	
   

  
	
  2042

  	
   

  	
  33.4

  	
   

  
	
  2043

  	
   

  	
  27.8

  	
   

  
	
  2044

  	
   

  	
  22.3

  	
   

  
	
  2045

  	
   

  	
  16.7

  	
   

  
	
  2046

  	
   

  	
  11.2

  	
   

  
	
  2047

  	
   

  	
  5.6

  	
   

  

 

1

 

2.                                       If for any
projected year (i) the Fixed Maturity GICs and Other GICs (which are
limited, for the avoidance of doubt, to FSA GIC Contracts) are scheduled to
have matured, and (ii) the Modeled Balances referred to in paragraph II.2(a) below
show an expected GIC Balance of zero for all Structured GICs (which are
limited, for the avoidance of doubt, to FSA GIC Contracts) (such projected
year, a “Zero Year”), within two Local Business Days of determining that a Zero
Year exists, the Calculation Agent shall:

 

(a)                                  revise the
table of Budgeted Expenses to reflect a value of zero for each year following
the Zero Year, through 2047.  The initial
table of “Budgeted Expenses” is set forth on Exhibit A to this
Schedule B, as such Exhibit may be amended from time to time pursuant
to this paragraph I.2(a), or pursuant to paragraph I.3 below; and

 

(b)                                 prepare a
revised Expenses Component Table for each year through the Zero Year, and enter
a value of zero for each year after the Zero Year.  The revised Expenses Component Table shall be
a calculation of the present value of the Budgeted Expenses as amended from
time to time pursuant to paragraph I.2(a), or pursuant to paragraph I.3 below,
and assuming inflation at 3% per annum, and a discount rate of 2.8% per
annum.  The Calculation Agent shall
provide a draft of the revised Expenses Component Table, together with
reasonable evidence to support its calculations, to Party A and FSA.  In the absence of manifest error or written
dispute by Party A or FSA within ten Local Business Days of receipt, such
revised Expenses Component Table shall be binding on the parties, and the
Calculation Agent shall provide written notice thereof to the Valuation Agent.

 

3.                                       (a)                                  If in any year
the Administrator incurs one or more expenses (“Unanticipated Recurring Expenses”) or realizes one or more savings
(“Unanticipated Recurring Savings”)
which (i) in good faith, the Board of Directors of the Administrator has
identified as being a net cash additional expense or saving, as applicable,
that in their estimation is expected to recur annually while any FSA GIC
Contract is outstanding and therefore justifies a permanent alteration of the
budget for the Administrator, (ii) has been discussed with FSA and, prior
to a Dexia Event of Default, the Dexia Guarantors, and reasonable supporting
documentation has been submitted demonstrating both the expense or saving, as
applicable, and the reasons for the Board of Directors’ belief that such
expense or saving, as applicable, will recur annually and therefore justifies a
permanent alteration of the budget for the Administrator, and following a Dexia
Event of Default, FSA consents to the proposed alteration of the Budgeted
Expenses, and (iii) together with all other actual expenses incurred or
savings realized the resulting overall actual expenses of the Administrator
during such year exceed or are less than, as applicable, the Budgeted Expenses
specified in Exhibit A to this Schedule B for that year (as adjusted
pursuant to paragraph I.2(a), or this paragraph I.3 on any prior occasion) by
more than 25%, the Budgeted Expenses amount for each following year will be
deemed increased (or decreased, as applicable) by the amount of such
Unanticipated Recurring Expense or Unanticipated Recurring Saving.  In the case of this subparagraph (a), the
designation of one or more such expenses or savings as Unanticipated Recurring
Expenses or Unanticipated Recurring Savings shall be made as of the end of the
applicable year in which such expenses are incurred or savings are realized.

 

(b)                                 In addition to (a) above,
if the Administrator shall during the course of any year revise the budget of
the Administrator in accordance with Section 7(a) of the
Administrative Services Agreement and (i) in good faith, the Board of
Directors of the Administrator has identified a net cash additional expense
that in their estimation is expected to recur annually while any FSA GIC
Contract is outstanding and therefore justifies a permanent 

 

2

 

alteration
of the budget for the Administrator, (ii) has been discussed with FSA and,
prior to a Dexia Event of Default, the Dexia Guarantors, and reasonable
supporting documentation has been submitted demonstrating the expense, and the
reasons for the Board of Directors’ belief that such expense will recur annually
and therefore justifies a permanent alteration of the budget for the
Administrator, and following a Dexia Event of Default, FSA consents to the
proposed alteration of the Budgeted Expenses, and (iii) together with all
other actual expenses incurred, expected to be incurred based on other Budgeted
Expenses (or expected to be incurred as Unanticipated Recurring Expenses and
adjusted by projected Unanticipated Recurring Savings, if any, for that year)
the resulting known and projected overall actual expenses of the Administrator
during such year exceed the Budgeted Expenses specified in Exhibit A to
this Schedule B for that year (as adjusted pursuant to paragraph I.2(a), or
this paragraph I.3 on any prior occasion) by more than 25%, the Budgeted
Expenses amount for the current year and each following year will be deemed
increased by the amount of such Unanticipated Recurring Expense.

 

(c)                                  In the case of (a) or
(b), the Calculation Agent shall prepare a present value calculation of such
Unanticipated Recurring Expense or Unanticipated Recurring Saving, assuming
inflation at 3% per annum, and a discount rate of 2.8% per annum.  The Calculation Agent shall provide a draft
of this calculation, together with reasonable evidence to support its
calculations, to Party A and FSA.  In the
absence of manifest error or written dispute by Party A or FSA within ten Local
Business Days of receipt, such calculation shall be binding on the parties, and
the Calculation Agent shall provide written notice thereof to the Valuation Agent.  The resulting amounts shall be added to, or
subtracted from, the amounts in the Expenses Component Table for all purposes
going forward from the time such calculation is agreed or deemed applicable.

 

II             Spread Component

 

To calculate the Spread Component
for any Monthly Valuation Date, the Calculation Agent shall:

 

1.                                       Identify and
categorize, using the designation on Annex 4 to the Confirmation to this
Agreement, each FSA GIC Contract then outstanding as either:

 

(a)                                  a “Fixed
Maturity GIC”, if such GIC is designated on such Annex 4 as being a Debt
Service Reserve Fund GIC and while the beneficiary of such GIC is rated at
least A- or A3 (and if such beneficiary is at any time not so rated, such GIC
shall be an “Other GIC” for purposes hereof);

 

(b)                                 a “Structured
GIC”, if such GIC is designated on such Annex 4 as being an ABS CDO GIC or CDO/CLO GIC; or

 

(c)                                  an “Other GIC”
if such GIC has any other designation, or no designation, on such Annex 4,
or at any time fails to qualify as a Fixed Maturity GIC because of the rating
(or lack thereof) of the related beneficiary of such GIC.

 

2.                                       For each Fixed
Maturity GIC, determine a “Permitted Investment Spread” as follows:

 

(a)                                  calculate the
remaining weighted average life of such Fixed Maturity GIC as of such Monthly
Valuation Date, assuming no unscheduled draws thereunder are made after such
Monthly Valuation Date;

 

3

 

(b)                                 map such Fixed
Maturity GIC into the appropriate “WAL Bucket” as set forth in the table below:

 

	
  GIC WAL:

  	
   

  	
  <3 mo

  	
   

  	
  3 mo – 1 yr

  	
   

  	
  1 – 2 yrs

  	
   

  	
  2 – 3 yrs

  	
   

  	
  3 – 5 yrs

  	
   

  	
  5 – 7 yrs

  	
   

  	
  7 – 10 yrs

  	
   

  	
  10 – 30 yrs

  	
   

  	
  30 yrs +

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WAL Bucket:

  	
   

  	
  1 mo

  	
   

  	
  3 mo

  	
   

  	
  1 yr

  	
   

  	
  2 yr

  	
   

  	
  3 yr

  	
   

  	
  5 yr

  	
   

  	
  7 yr

  	
   

  	
  10 yr

  	
   

  	
  30 yr

  

 

(c)                                  identify each
type of Permitted Investment from the table below that corresponds with the WAL
Bucket for such Fixed Maturity GIC (e.g., if the WAL Bucket for a Fixed
Maturity GIC is determined to be 2 years, then the USSP2 Index and the C5342Y Index will be Permitted Investments for such GIC):

 

	
  Name

  	
   

  	
  Description

  	
   

  	
  Bloomberg instruction

  
	
  1-Month LIBOR T-Bill Spread

  	
   

  	
  1 month Treasury Bill spread to 1 month swap

  	
   

  	
  USGG1M Index <go> - US0001m Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3-Month LIBOR T-Bill Spread

  	
   

  	
  3 month Treasury Bill spread to 3 month swap

  	
   

  	
  USGG3M Index <go> - US0003m Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP1 Index

  	
   

  	
  1 yr Treasury spread to swap

  	
   

  	
  USSP1 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP2 Index

  	
   

  	
  2 yr Treasury spread to swap

  	
   

  	
  USSP2 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP3 Index

  	
   

  	
  3 yr Treasury spread to swap

  	
   

  	
  USSP3 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP5 Index

  	
   

  	
  5 yr Treasury spread to swap

  	
   

  	
  USSP5 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP7 Index

  	
   

  	
  7 yr Treasury spread to swap

  	
   

  	
  USSP7 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP10 Index

  	
   

  	
  10 yr Treasury spread to swap

  	
   

  	
  USSP10 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USSP30 Index

  	
   

  	
  30 yr Treasury spread to swap

  	
   

  	
  USSP30 Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOASFGLM Index

  	
   

  	
  Freddie Mortgage Current Coupon OAS (for all
  5,7 and 10 yr buckets)

  	
   

  	
  NOASFGLM Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOASFNCL Index

  	
   

  	
  FNMA Mortgage Current Coupon OAS (for all 5,7
  and 10 yr buckets)

  	
   

  	
  NOASFNCL Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOASGNSF Index

  	
   

  	
  GNMA Mortgage Current Coupon OAS (for all 5,7
  and 10 yr buckets)

  	
   

  	
  NOASGNSF Index <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C5342Y Index

  	
   

  	
  US FDIC Temporary Liquidity Guarantee 2 yr

  	
   

  	
  C5342Y Index <go> - USSWAP2 index
  <go>

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C5343Y Index

  	
   

  	
  US FDIC Temporary Liquidity Guarantee 3 yr

  	
   

  	
  C5343Y Index <go> - USSWAP3 index
  <go>

  

 

4

 

(d)                                 for each such
type of Permitted Investment identified pursuant to subparagraph (c) above,
determine, using Bloomberg as the data source, the swap spread relating thereto
as of the close of business in the principal markets in the United States
relating thereto on each of the 90 consecutive calendar days ending on such
Monthly Valuation Date (it being understood that the swap spread as of the
close of business on a day that is not a Business Day shall be deemed to be the
swap spread in effect as of the close of business on the last day prior thereto
that was a Business Day), and, based thereon, the average such swap spread over
such period for each such type of Permitted Investment (for each such type of
Permitted Investment, the “Average Swap Spread”); and

 

(e)                                  the “Permitted
Investment Spread” for such Fixed Maturity GIC shall be deemed to be the
highest positive Average Swap Spread determined in relation to such GIC
pursuant to subparagraph (d) above or, if the determination performed
pursuant to such subparagraph (d) does not yield any positive Average Swap
Spread, the “Permitted Investment Spread” for such Fixed Maturity GIC shall be
deemed to be the least negative Average Swap Spread determined in relation to
such GIC pursuant to subparagraph (d) above.

 

3.                                       For each
Structured GIC and Other GIC, the “Permitted Investment Spread” shall be deemed
to be negative 100 basis points per annum.

 

4.                                       For each FSA
GIC Contract, determine a “GIC Spread” for each Monthly Valuation Date, which
shall be equal to the Permitted Investment Spread for such FSA GIC Contract for
such Monthly Date pursuant to paragraph 2 or paragraph 3 above, as applicable,
increased by the absolute value of any negative funding spread to LIBOR
applicable to such FSA GIC Contract as of such Monthly Valuation Date or
decreased by the value of any positive funding spread to LIBOR applicable to
such FSA GIC Contract as of such Monthly Valuation Date.  For example, if the Permitted Investment Spread
applicable to a Fixed Maturity GIC on a Monthly Valuation Date were determined
to be negative 60 basis points per annum and the funding spread to LIBOR
applicable to such FSA GIC Contract as of such Monthly Valuation Date were
negative 20 basis points per annum, the “GIC Spread” for such FSA GIC Contract
for such Monthly Valuation Date would equal negative 40 basis points per annum
(i.e., such Permitted Investment Spread of negative 60 basis points per annum “increased”
by the absolute value of such negative funding spread of 20 basis points per
annum).

 

5.                                       For each
Structured GIC for any Monthly Valuation Date, calculate an “Adjusted Modeled
Balance” to be applicable thereto for such Monthly Valuation Date by dividing
the actual balance of such Structured GIC on such Monthly Valuation Date by its
Modeled Balance for such Monthly Valuation Date, to produce an “Adjustment
Factor”, and then multiplying its Modeled Balance for such Monthly Valuation
Date and all future Monthly Valuation Dates by such Adjustment Factor to derive
an “Adjusted Modeled Balance”.

 

6.                                       For each Other
GIC for any Monthly Valuation Date, if so advised by Dexia that it wishes in
its reasonable judgment (and irrespective of actual draw experience) to revise
the expected draw schedule set forth on Exhibit C to this Schedule B for
such Monthly Valuation Date and all future Monthly Valuation Dates (unless and
until adjusted again pursuant to this paragraph 6), make such revisions (as
revised, the “Expected Draw Schedule”).

 

5

 

7.                                       For each Fixed
Maturity GIC for each Monthly Valuation Date, the “Spread Component” applicable
thereto shall equal the sum of the present values, based on the then current
swap curve (as derived from market data reported by recognized pricing
information service providers and using recognized systems-based curve-building
models), of a series of projected payments on each scheduled interest payment
date for the relevant Fixed Maturity GIC each equal to (i) the projected
outstanding principal balance of such FSA GIC Contract (assuming no unscheduled
draws under such FSA GIC Contract) during the period ending on (but excluding)
such scheduled interest payment date times (ii) the applicable GIC Spread
for such FSA GIC Contract for such Monthly Valuation Date determined as
provided above (it being understood that such Spread Component will be negative
if the applicable GIC Spread is positive) times (iii) the day count
fraction applicable to payments of interest under the relevant Fixed Maturity
GIC.  If a Fixed Maturity GIC does not
pay current interest it will be deemed to have interest payment dates, and
other payment terms, the same as those under the related swap, and accretion to
the projected outstanding principal balance will be disregarded for purposes of
this calculation.

 

8.                                       For each
Structured GIC for each Monthly Valuation Date, the “Spread Component”
applicable thereto shall equal the sum of the present values, based on the then
current swap curve (as derived from market data reported by recognized pricing
information service providers and using recognized systems-based curve-building
models), of a series of projected payments on each scheduled interest payment
date for the relevant Structured GIC each equal to (i) the projected
Modeled Balance or Adjusted Modeled Balance, as applicable of such FSA GIC
Contract during the period ending on (but excluding) such scheduled interest
payment date times (ii) the applicable GIC Spread for such FSA GIC
Contract for such Monthly Valuation Date determined as provided above (it being
understood that such Spread Component will be negative if the applicable GIC
Spread is positive) times (iii) the day count fraction applicable to
payments of interest under the relevant Structured GIC.

 

9.                                       For each Other
GIC for each Monthly Valuation Date, the “Spread Component” applicable thereto
shall equal the sum of the present values, based on the then current swap curve
(as derived from market data reported by recognized pricing information service
providers and using recognized systems-based curve-building models), of a
series of projected payments on each scheduled interest payment date for the
relevant Other GIC each equal to (i) the projected outstanding principal
balance of such FSA GIC Contract, based on its Expected Draw Schedule as of
such Monthly Valuation Date, during the period ending on (but excluding) such
scheduled interest payment date times (ii) the applicable GIC Spread for
such FSA GIC Contract for such Monthly Valuation Date determined as provided
above (it being understood that such Spread Component will be negative if the
applicable GIC Spread is positive) times (iii) the day count fraction
applicable to payments of interest under the relevant Other GIC.  If an Other GIC does not pay current interest
it will be deemed to have interest payment dates, and other payment terms, the
same as those under the related swap, and accretion to the projected
outstanding principal balance will be disregarded for purposes of this
calculation.

 

10.                                 The “Spread
Component” hereunder for any Monthly Valuation Date shall equal the sum of the “Spread
Components” determined for each Fixed Maturity GIC, Structured GIC and Other
GIC for such Monthly Valuation Date pursuant to paragraph 7, 8 or 9 above, as
applicable.

 

The
Calculation Agent shall provide to Party A, Party B and FSA a copy of its
calculation of the GIC Business Costs Amount, as of each Monthly Valuation
Date, together with reasonable information demonstrating the calculations
referenced in this Schedule B.

 

6

 

III           Annual
Adjustment

 

1.                                       Dexia and FSA
have agreed that during July of each year, beginning 2010, they will
conduct an annual re-evaluation of the reasonableness of the Modeled Balance
for each Structured GIC.

 

2.                                       Each June 30th, beginning 2010, the
Calculation Agent shall collect the Adjustment Factors, calculated under
paragraph II.5 above, for all Monthly Valuation Dates from and including the
prior July through and including such June (or, in the case of the
first adjustment pursuant to this Section III, from an including the first
Monthly Valuation Date through and including the June, 2010 Monthly Valuation
Date).

 

3.                                       The Calculation
Agent shall, no later than July 5th of each year,
beginning 2010, calculate and report to Dexia and FSA, the weighted average
Adjustment Factor for the Structured GICs for the abovementioned range
(weighted based on the outstanding principal amount of such Structured GICs as
at the date the related Adjustment Factor was determined).

 

4.                                       If such
weighted average Adjustment Factor is greater than or equal to 0.95 and less
than or equal to 1.05, the Modeled Balances shall remain unchanged.

 

5.                                       If such
weighted average Adjustment Factor is less than 0.95 or greater than 1.05:

 

(a)                                  Dexia and FSA
shall revisit the Amortization Assumptions attached as Exhibit D to this
Schedule B, and negotiate in good faith to agree a revised set of Amortization
Assumptions and the related Modeled Balances for the Structured GICs, or agree
that the current Amortization Assumptions and the related Modeled Balances for
the Structured GICs should remain in place.

 

(b)                                 If Dexia and FSA do not agree on the matters set forth in (a) above
by July 31st of such year, then Dexia will select an
investment bank or asset manager (the “Advisor”)
that is not an Affiliate of either Dexia or FSA, to validate the existing set
of Amortization Assumptions or specify a new set of Amortization Assumptions as
such Advisor’s best estimate of the projected amortization experience of the
Structured GICs.  The Advisor’s
determination of the Amortization Assumptions will be binding on both parties
and will be used to produce new Modeled Balances for the Structured GICs until
the next June 30th.  FSA and Dexia will share equally the costs of
the Advisor retained in connection with this Section III, and FSA’s share
of such costs will not be indemnifiable or reimbursable to FSA by Party B or
Dexia.

 

6.                                       Upon agreement
by Dexia and FSA as to revised Amortization Assumptions and Modeled Balances
pursuant to paragraph III.5(a), or upon the determination of the Advisor as to
revised Amortization Assumptions and Modeled Balance pursuant to paragraph
III.5(b), the Modeled Balances in Exhibit B to this Schedule B and the
Amortization Assumptions in Exhibit D to this Schedule B shall be deemed
deleted and replace by such revised versions thereof.

 

7

 

Exhibit A to Schedule B —
Initial Budgeted Expenses

 

	
  Year

  	
   

  	
  Amount (in millions of 

  USD)

  	
   

  
	
  2009

  	
   

  	
  23

  	
   

  
	
  2010

  	
   

  	
  32

  	
   

  
	
  2011

  	
   

  	
  29

  	
   

  
	
  2012

  	
   

  	
  27

  	
   

  
	
  2013

  	
   

  	
  26

  	
   

  
	
  2014

  	
   

  	
  26

  	
   

  
	
  2015

  	
   

  	
  21

  	
   

  
	
  2016

  	
   

  	
  20

  	
   

  
	
  2017

  	
   

  	
  20

  	
   

  
	
  2018

  	
   

  	
  18

  	
   

  
	
  2019

  	
   

  	
  18

  	
   

  
	
  2020

  	
   

  	
  18

  	
   

  
	
  2021

  	
   

  	
  18

  	
   

  
	
  2022

  	
   

  	
  18

  	
   

  
	
  2023

  	
   

  	
  18

  	
   

  
	
  2024

  	
   

  	
  18

  	
   

  
	
  2025

  	
   

  	
  18

  	
   

  
	
  2026

  	
   

  	
  19

  	
   

  
	
  2027

  	
   

  	
  19

  	
   

  
	
  2028

  	
   

  	
  19

  	
   

  
	
  2029

  	
   

  	
  20

  	
   

  
	
  2030

  	
   

  	
  20

  	
   

  
	
  2031

  	
   

  	
  20

  	
   

  
	
  2032

  	
   

  	
  21

  	
   

  
	
  2033

  	
   

  	
  21

  	
   

  
	
  2034

  	
   

  	
  22

  	
   

  
	
  2035

  	
   

  	
  22

  	
   

  
	
  2036

  	
   

  	
  23

  	
   

  
	
  2037

  	
   

  	
  23

  	
   

  
	
  2038

  	
   

  	
  24

  	
   

  
	
  2039

  	
   

  	
  25

  	
   

  
	
  2040

  	
   

  	
  25

  	
   

  
	
  2041

  	
   

  	
  26

  	
   

  
	
  2042

  	
   

  	
  27

  	
   

  
	
  2043

  	
   

  	
  27

  	
   

  
	
  2044

  	
   

  	
  28

  	
   

  
	
  2045

  	
   

  	
  29

  	
   

  
	
  2046

  	
   

  	
  30

  	
   

  
	
  2047

  	
   

  	
  30

  	
   

  

 

1

 

Exhibit B to Schedule B —
Modeled Balances for Structured GIC

 

	
  Date

  	
   

  	
  Balance (in millions 

  of USD)

  	
   

  
	
  6/25/2009

  	
   

  	
  5,522

  	
   

  
	
  6/30/2009

  	
   

  	
  5,000

  	
   

  
	
  7/31/2009

  	
   

  	
  4,734

  	
   

  
	
  8/31/2009

  	
   

  	
  4,351

  	
   

  
	
  9/30/2009

  	
   

  	
  3,706

  	
   

  
	
  10/31/2009

  	
   

  	
  3,706

  	
   

  
	
  11/30/2009

  	
   

  	
  3,699

  	
   

  
	
  12/31/2009

  	
   

  	
  2,971

  	
   

  
	
  1/31/2010

  	
   

  	
  2,971

  	
   

  
	
  2/28/2010

  	
   

  	
  2,971

  	
   

  
	
  3/31/2010

  	
   

  	
  2,483

  	
   

  
	
  4/30/2010

  	
   

  	
  2,483

  	
   

  
	
  5/31/2010

  	
   

  	
  2,483

  	
   

  
	
  6/30/2010

  	
   

  	
  2,449

  	
   

  
	
  7/31/2010

  	
   

  	
  2,449

  	
   

  
	
  8/31/2010

  	
   

  	
  2,429

  	
   

  
	
  9/30/2010

  	
   

  	
  2,252

  	
   

  
	
  10/31/2010

  	
   

  	
  2,252

  	
   

  
	
  11/30/2010

  	
   

  	
  2,252

  	
   

  
	
  12/31/2010

  	
   

  	
  2,182

  	
   

  
	
  1/31/2011

  	
   

  	
  2,053

  	
   

  
	
  2/28/2011

  	
   

  	
  2,053

  	
   

  
	
  3/31/2011

  	
   

  	
  2,017

  	
   

  
	
  4/30/2011

  	
   

  	
  2,017

  	
   

  
	
  5/31/2011

  	
   

  	
  2,017

  	
   

  
	
  6/30/2011

  	
   

  	
  2,001

  	
   

  
	
  7/31/2011

  	
   

  	
  2,001

  	
   

  
	
  8/31/2011

  	
   

  	
  2,001

  	
   

  
	
  9/30/2011

  	
   

  	
  1,986

  	
   

  
	
  10/31/2011

  	
   

  	
  1,986

  	
   

  
	
  11/30/2011

  	
   

  	
  1,986

  	
   

  
	
  12/31/2011

  	
   

  	
  1,941

  	
   

  
	
  1/31/2012

  	
   

  	
  1,879

  	
   

  
	
  2/28/2012

  	
   

  	
  1,879

  	
   

  
	
  3/31/2012

  	
   

  	
  1,819

  	
   

  
	
  4/30/2012

  	
   

  	
  1,807

  	
   

  
	
  5/31/2012

  	
   

  	
  1,807

  	
   

  
	
  6/30/2012

  	
   

  	
  1,528

  	
   

  

 

2

 

	
  Date

  	
   

  	
  Balance (in millions 

  of USD)

  	
   

  
	
  7/31/2012

  	
   

  	
  1,391

  	
   

  
	
  8/31/2012

  	
   

  	
  1,391

  	
   

  
	
  9/30/2012

  	
   

  	
  1,315

  	
   

  
	
  10/31/2012

  	
   

  	
  1,312

  	
   

  
	
  11/30/2012

  	
   

  	
  1,312

  	
   

  
	
  12/31/2012

  	
   

  	
  1,305

  	
   

  
	
  1/31/2013

  	
   

  	
  1,305

  	
   

  
	
  2/28/2013

  	
   

  	
  1,305

  	
   

  
	
  3/31/2013

  	
   

  	
  1,288

  	
   

  
	
  4/30/2013

  	
   

  	
  1,248

  	
   

  
	
  5/31/2013

  	
   

  	
  1,206

  	
   

  
	
  6/30/2013

  	
   

  	
  1,204

  	
   

  
	
  7/31/2013

  	
   

  	
  1,203

  	
   

  
	
  8/31/2013

  	
   

  	
  1,203

  	
   

  
	
  9/30/2013

  	
   

  	
  987

  	
   

  
	
  10/31/2013

  	
   

  	
  987

  	
   

  
	
  11/30/2013

  	
   

  	
  987

  	
   

  
	
  12/31/2013

  	
   

  	
  985

  	
   

  
	
  1/31/2014

  	
   

  	
  640

  	
   

  
	
  2/28/2014

  	
   

  	
  640

  	
   

  
	
  3/31/2014

  	
   

  	
  638

  	
   

  
	
  4/30/2014

  	
   

  	
  638

  	
   

  
	
  5/31/2014

  	
   

  	
  608

  	
   

  
	
  6/30/2014

  	
   

  	
  586

  	
   

  
	
  7/31/2014

  	
   

  	
  586

  	
   

  
	
  8/31/2014

  	
   

  	
  586

  	
   

  
	
  9/30/2014

  	
   

  	
  536

  	
   

  
	
  10/31/2014

  	
   

  	
  536

  	
   

  
	
  11/30/2014

  	
   

  	
  536

  	
   

  
	
  12/31/2014

  	
   

  	
  505

  	
   

  
	
  1/31/2015

  	
   

  	
  505

  	
   

  
	
  2/28/2015

  	
   

  	
  505

  	
   

  
	
  3/31/2015

  	
   

  	
  504

  	
   

  
	
  4/30/2015

  	
   

  	
  502

  	
   

  
	
  5/31/2015

  	
   

  	
  502

  	
   

  
	
  6/30/2015

  	
   

  	
  501

  	
   

  
	
  7/31/2015

  	
   

  	
  501

  	
   

  
	
  8/31/2015

  	
   

  	
  421

  	
   

  
	
  9/30/2015

  	
   

  	
  413

  	
   

  
	
  10/31/2015

  	
   

  	
  372

  	
   

  

 

3

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  11/30/2015

  	
   

  	
  372

  	
   

  
	
  12/31/2015

  	
   

  	
  370

  	
   

  
	
  1/31/2016

  	
   

  	
  370

  	
   

  
	
  2/28/2016

  	
   

  	
  370

  	
   

  
	
  3/31/2016

  	
   

  	
  369

  	
   

  
	
  4/30/2016

  	
   

  	
  328

  	
   

  
	
  5/31/2016

  	
   

  	
  328

  	
   

  
	
  6/30/2016

  	
   

  	
  259

  	
   

  
	
  7/31/2016

  	
   

  	
  255

  	
   

  
	
  8/31/2016

  	
   

  	
  255

  	
   

  
	
  9/30/2016

  	
   

  	
  235

  	
   

  
	
  10/31/2016

  	
   

  	
  235

  	
   

  
	
  11/30/2016

  	
   

  	
  235

  	
   

  
	
  12/31/2016

  	
   

  	
  235

  	
   

  
	
  1/31/2017

  	
   

  	
  235

  	
   

  
	
  2/28/2017

  	
   

  	
  235

  	
   

  
	
  3/31/2017

  	
   

  	
  235

  	
   

  
	
  4/30/2017

  	
   

  	
  235

  	
   

  
	
  5/31/2017

  	
   

  	
  235

  	
   

  
	
  6/30/2017

  	
   

  	
  205

  	
   

  
	
  7/31/2017

  	
   

  	
  205

  	
   

  
	
  8/31/2017

  	
   

  	
  205

  	
   

  
	
  9/30/2017

  	
   

  	
  184

  	
   

  
	
  10/31/2017

  	
   

  	
  184

  	
   

  
	
  11/30/2017

  	
   

  	
  184

  	
   

  
	
  12/31/2017

  	
   

  	
  184

  	
   

  
	
  1/31/2018

  	
   

  	
  184

  	
   

  
	
  2/28/2018

  	
   

  	
  184

  	
   

  
	
  3/31/2018

  	
   

  	
  184

  	
   

  
	
  4/30/2018

  	
   

  	
  184

  	
   

  
	
  5/31/2018

  	
   

  	
  184

  	
   

  
	
  6/30/2018

  	
   

  	
  184

  	
   

  
	
  7/31/2018

  	
   

  	
  184

  	
   

  
	
  8/31/2018

  	
   

  	
  184

  	
   

  
	
  9/30/2018

  	
   

  	
  184

  	
   

  
	
  10/31/2018

  	
   

  	
  184

  	
   

  
	
  11/30/2018

  	
   

  	
  184

  	
   

  
	
  12/31/2018

  	
   

  	
  183

  	
   

  
	
  1/31/2019

  	
   

  	
  183

  	
   

  
	
  2/28/2019

  	
   

  	
  183

  	
   

  

 

4

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  3/31/2019

  	
   

  	
  180

  	
   

  
	
  4/30/2019

  	
   

  	
  180

  	
   

  
	
  5/31/2019

  	
   

  	
  180

  	
   

  
	
  6/30/2019

  	
   

  	
  180

  	
   

  
	
  7/31/2019

  	
   

  	
  180

  	
   

  
	
  8/31/2019

  	
   

  	
  180

  	
   

  
	
  9/30/2019

  	
   

  	
  180

  	
   

  
	
  10/31/2019

  	
   

  	
  180

  	
   

  
	
  11/30/2019

  	
   

  	
  180

  	
   

  
	
  12/31/2019

  	
   

  	
  180

  	
   

  
	
  1/31/2020

  	
   

  	
  180

  	
   

  
	
  2/28/2020

  	
   

  	
  180

  	
   

  
	
  3/31/2020

  	
   

  	
  180

  	
   

  
	
  4/30/2020

  	
   

  	
  180

  	
   

  
	
  5/31/2020

  	
   

  	
  180

  	
   

  
	
  6/30/2020

  	
   

  	
  180

  	
   

  
	
  7/31/2020

  	
   

  	
  180

  	
   

  
	
  8/31/2020

  	
   

  	
  180

  	
   

  
	
  9/30/2020

  	
   

  	
  180

  	
   

  
	
  10/31/2020

  	
   

  	
  180

  	
   

  
	
  11/30/2020

  	
   

  	
  180

  	
   

  
	
  12/31/2020

  	
   

  	
  180

  	
   

  
	
  1/31/2021

  	
   

  	
  180

  	
   

  
	
  2/28/2021

  	
   

  	
  180

  	
   

  
	
  3/31/2021

  	
   

  	
  173

  	
   

  
	
  4/30/2021

  	
   

  	
  173

  	
   

  
	
  5/31/2021

  	
   

  	
  173

  	
   

  
	
  6/30/2021

  	
   

  	
  158

  	
   

  
	
  7/31/2021

  	
   

  	
  158

  	
   

  
	
  8/31/2021

  	
   

  	
  158

  	
   

  
	
  9/30/2021

  	
   

  	
  144

  	
   

  
	
  10/31/2021

  	
   

  	
  144

  	
   

  
	
  11/30/2021

  	
   

  	
  144

  	
   

  
	
  12/31/2021

  	
   

  	
  130

  	
   

  
	
  1/31/2022

  	
   

  	
  130

  	
   

  
	
  2/28/2022

  	
   

  	
  130

  	
   

  
	
  3/31/2022

  	
   

  	
  116

  	
   

  
	
  4/30/2022

  	
   

  	
  116

  	
   

  
	
  5/31/2022

  	
   

  	
  116

  	
   

  
	
  6/30/2022

  	
   

  	
  103

  	
   

  

 

5

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  7/31/2022

  	
   

  	
  103

  	
   

  
	
  8/31/2022

  	
   

  	
  103

  	
   

  
	
  9/30/2022

  	
   

  	
  91

  	
   

  
	
  10/31/2022

  	
   

  	
  91

  	
   

  
	
  11/30/2022

  	
   

  	
  91

  	
   

  
	
  12/31/2022

  	
   

  	
  80

  	
   

  
	
  1/31/2023

  	
   

  	
  80

  	
   

  
	
  2/28/2023

  	
   

  	
  80

  	
   

  
	
  3/31/2023

  	
   

  	
  70

  	
   

  
	
  4/30/2023

  	
   

  	
  70

  	
   

  
	
  5/31/2023

  	
   

  	
  70

  	
   

  
	
  6/30/2023

  	
   

  	
  61

  	
   

  
	
  7/31/2023

  	
   

  	
  61

  	
   

  
	
  8/31/2023

  	
   

  	
  61

  	
   

  
	
  9/30/2023

  	
   

  	
  53

  	
   

  
	
  10/31/2023

  	
   

  	
  53

  	
   

  
	
  11/30/2023

  	
   

  	
  53

  	
   

  
	
  12/31/2023

  	
   

  	
  46

  	
   

  
	
  1/31/2024

  	
   

  	
  46

  	
   

  
	
  2/28/2024

  	
   

  	
  46

  	
   

  
	
  3/31/2024

  	
   

  	
  41

  	
   

  
	
  4/30/2024

  	
   

  	
  41

  	
   

  
	
  5/31/2024

  	
   

  	
  41

  	
   

  
	
  6/30/2024

  	
   

  	
  36

  	
   

  
	
  7/31/2024

  	
   

  	
  36

  	
   

  
	
  8/31/2024

  	
   

  	
  36

  	
   

  
	
  9/30/2024

  	
   

  	
  32

  	
   

  
	
  10/31/2024

  	
   

  	
  32

  	
   

  
	
  11/30/2024

  	
   

  	
  32

  	
   

  
	
  12/31/2024

  	
   

  	
  28

  	
   

  
	
  1/31/2025

  	
   

  	
  28

  	
   

  
	
  2/28/2025

  	
   

  	
  28

  	
   

  
	
  3/31/2025

  	
   

  	
  25

  	
   

  
	
  4/30/2025

  	
   

  	
  25

  	
   

  
	
  5/31/2025

  	
   

  	
  25

  	
   

  
	
  6/30/2025

  	
   

  	
  22

  	
   

  
	
  7/31/2025

  	
   

  	
  22

  	
   

  
	
  8/31/2025

  	
   

  	
  22

  	
   

  
	
  9/30/2025

  	
   

  	
  19

  	
   

  
	
  10/31/2025

  	
   

  	
  19

  	
   

  

 

6

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  11/30/2025

  	
   

  	
  19

  	
   

  
	
  12/31/2025

  	
   

  	
  16

  	
   

  
	
  1/31/2026

  	
   

  	
  16

  	
   

  
	
  2/28/2026

  	
   

  	
  16

  	
   

  
	
  3/31/2026

  	
   

  	
  14

  	
   

  
	
  4/30/2026

  	
   

  	
  14

  	
   

  
	
  5/31/2026

  	
   

  	
  14

  	
   

  
	
  6/30/2026

  	
   

  	
  11

  	
   

  
	
  7/31/2026

  	
   

  	
  11

  	
   

  
	
  8/31/2026

  	
   

  	
  11

  	
   

  
	
  9/30/2026

  	
   

  	
  9

  	
   

  
	
  10/31/2026

  	
   

  	
  9

  	
   

  
	
  11/30/2026

  	
   

  	
  9

  	
   

  
	
  12/31/2026

  	
   

  	
  8

  	
   

  
	
  1/31/2027

  	
   

  	
  8

  	
   

  
	
  2/28/2027

  	
   

  	
  8

  	
   

  
	
  3/31/2027

  	
   

  	
  6

  	
   

  
	
  4/30/2027

  	
   

  	
  6

  	
   

  
	
  5/31/2027

  	
   

  	
  6

  	
   

  
	
  6/30/2027

  	
   

  	
  6

  	
   

  
	
  7/31/2027

  	
   

  	
  6

  	
   

  
	
  8/31/2027

  	
   

  	
  6

  	
   

  
	
  9/30/2027

  	
   

  	
  5

  	
   

  
	
  10/31/2027

  	
   

  	
  5

  	
   

  
	
  11/30/2027

  	
   

  	
  5

  	
   

  
	
  12/31/2027

  	
   

  	
  4

  	
   

  
	
  1/31/2028

  	
   

  	
  4

  	
   

  
	
  2/28/2028

  	
   

  	
  4

  	
   

  
	
  3/31/2028

  	
   

  	
  4

  	
   

  
	
  4/30/2028

  	
   

  	
  4

  	
   

  
	
  5/31/2028

  	
   

  	
  4

  	
   

  
	
  6/30/2028

  	
   

  	
  4

  	
   

  
	
  7/31/2028

  	
   

  	
  4

  	
   

  
	
  8/31/2028

  	
   

  	
  4

  	
   

  
	
  9/30/2028

  	
   

  	
  4

  	
   

  
	
  10/31/2028

  	
   

  	
  4

  	
   

  
	
  11/30/2028

  	
   

  	
  4

  	
   

  
	
  12/31/2028

  	
   

  	
  4

  	
   

  
	
  1/31/2029

  	
   

  	
  4

  	
   

  
	
  2/28/2029

  	
   

  	
  4

  	
   

  

 

7

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  3/31/2029

  	
   

  	
  4

  	
   

  
	
  4/30/2029

  	
   

  	
  4

  	
   

  
	
  5/31/2029

  	
   

  	
  4

  	
   

  
	
  6/30/2029

  	
   

  	
  4

  	
   

  
	
  7/31/2029

  	
   

  	
  4

  	
   

  
	
  8/31/2029

  	
   

  	
  4

  	
   

  
	
  9/30/2029

  	
   

  	
  4

  	
   

  
	
  10/31/2029

  	
   

  	
  4

  	
   

  
	
  11/30/2029

  	
   

  	
  4

  	
   

  
	
  12/31/2029

  	
   

  	
  4

  	
   

  
	
  1/31/2030

  	
   

  	
  4

  	
   

  
	
  2/28/2030

  	
   

  	
  4

  	
   

  
	
  3/31/2030

  	
   

  	
  4

  	
   

  
	
  4/30/2030

  	
   

  	
  4

  	
   

  
	
  5/31/2030

  	
   

  	
  4

  	
   

  
	
  6/30/2030

  	
   

  	
  4

  	
   

  
	
  7/31/2030

  	
   

  	
  4

  	
   

  
	
  8/31/2030

  	
   

  	
  4

  	
   

  
	
  9/30/2030

  	
   

  	
  4

  	
   

  
	
  10/31/2030

  	
   

  	
  4

  	
   

  
	
  11/30/2030

  	
   

  	
  4

  	
   

  
	
  12/31/2030

  	
   

  	
  4

  	
   

  
	
  1/31/2031

  	
   

  	
  4

  	
   

  
	
  2/28/2031

  	
   

  	
  4

  	
   

  
	
  3/31/2031

  	
   

  	
  4

  	
   

  
	
  4/30/2031

  	
   

  	
  4

  	
   

  
	
  5/31/2031

  	
   

  	
  4

  	
   

  
	
  6/30/2031

  	
   

  	
  4

  	
   

  
	
  7/31/2031

  	
   

  	
  4

  	
   

  
	
  8/31/2031

  	
   

  	
  4

  	
   

  
	
  9/30/2031

  	
   

  	
  4

  	
   

  
	
  10/31/2031

  	
   

  	
  4

  	
   

  
	
  11/30/2031

  	
   

  	
  4

  	
   

  
	
  12/31/2031

  	
   

  	
  4

  	
   

  
	
  1/31/2032

  	
   

  	
  4

  	
   

  
	
  2/28/2032

  	
   

  	
  4

  	
   

  
	
  3/31/2032

  	
   

  	
  4

  	
   

  
	
  4/30/2032

  	
   

  	
  4

  	
   

  
	
  5/31/2032

  	
   

  	
  4

  	
   

  
	
  6/30/2032

  	
   

  	
  4

  	
   

  

 

8

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  7/31/2032

  	
   

  	
  4

  	
   

  
	
  8/31/2032

  	
   

  	
  4

  	
   

  
	
  9/30/2032

  	
   

  	
  4

  	
   

  
	
  10/31/2032

  	
   

  	
  4

  	
   

  
	
  11/30/2032

  	
   

  	
  4

  	
   

  
	
  12/31/2032

  	
   

  	
  4

  	
   

  
	
  1/31/2033

  	
   

  	
  4

  	
   

  
	
  2/28/2033

  	
   

  	
  4

  	
   

  
	
  3/31/2033

  	
   

  	
  4

  	
   

  
	
  4/30/2033

  	
   

  	
  4

  	
   

  
	
  5/31/2033

  	
   

  	
  4

  	
   

  
	
  6/30/2033

  	
   

  	
  4

  	
   

  
	
  7/31/2033

  	
   

  	
  4

  	
   

  
	
  8/31/2033

  	
   

  	
  4

  	
   

  
	
  9/30/2033

  	
   

  	
  4

  	
   

  
	
  10/31/2033

  	
   

  	
  4

  	
   

  
	
  11/30/2033

  	
   

  	
  4

  	
   

  
	
  12/31/2033

  	
   

  	
  4

  	
   

  
	
  1/31/2034

  	
   

  	
  4

  	
   

  
	
  2/28/2034

  	
   

  	
  4

  	
   

  
	
  3/31/2034

  	
   

  	
  4

  	
   

  
	
  4/30/2034

  	
   

  	
  4

  	
   

  
	
  5/31/2034

  	
   

  	
  4

  	
   

  
	
  6/30/2034

  	
   

  	
  4

  	
   

  
	
  7/31/2034

  	
   

  	
  4

  	
   

  
	
  8/31/2034

  	
   

  	
  4

  	
   

  
	
  9/30/2034

  	
   

  	
  4

  	
   

  
	
  10/31/2034

  	
   

  	
  4

  	
   

  
	
  11/30/2034

  	
   

  	
  4

  	
   

  
	
  12/31/2034

  	
   

  	
  4

  	
   

  
	
  1/31/2035

  	
   

  	
  4

  	
   

  
	
  2/28/2035

  	
   

  	
  4

  	
   

  
	
  3/31/2035

  	
   

  	
  4

  	
   

  
	
  4/30/2035

  	
   

  	
  4

  	
   

  
	
  5/31/2035

  	
   

  	
  4

  	
   

  
	
  6/30/2035

  	
   

  	
  4

  	
   

  
	
  7/31/2035

  	
   

  	
  4

  	
   

  
	
  8/31/2035

  	
   

  	
  4

  	
   

  
	
  9/30/2035

  	
   

  	
  4

  	
   

  
	
  10/31/2035

  	
   

  	
  4

  	
   

  

 

9

 

	
  Date

  	
   

  	
  Balance (in millions

  of USD)

  	
   

  
	
  11/30/2035

  	
   

  	
  4

  	
   

  

 

10

 

Exhibit C to Schedule B —
Expected Draw Schedule for Other GICs

 

	
  Date

  	
   

  	
  Balance (in millions of

  USD)

  	
   

  
	
  6/25/2009

  	
   

  	
  4,580

  	
   

  
	
  6/30/2009

  	
   

  	
  4,524

  	
   

  
	
  7/31/2009

  	
   

  	
  4,261

  	
   

  
	
  8/31/2009

  	
   

  	
  4,201

  	
   

  
	
  9/30/2009

  	
   

  	
  4,060

  	
   

  
	
  10/31/2009

  	
   

  	
  3,995

  	
   

  
	
  11/30/2009

  	
   

  	
  3,916

  	
   

  
	
  12/31/2009

  	
   

  	
  3,794

  	
   

  
	
  1/31/2010

  	
   

  	
  3,761

  	
   

  
	
  2/28/2010

  	
   

  	
  3,599

  	
   

  
	
  3/31/2010

  	
   

  	
  3,412

  	
   

  
	
  4/30/2010

  	
   

  	
  3,336

  	
   

  
	
  5/31/2010

  	
   

  	
  3,301

  	
   

  
	
  6/30/2010

  	
   

  	
  3,192

  	
   

  
	
  7/31/2010

  	
   

  	
  3,090

  	
   

  
	
  8/31/2010

  	
   

  	
  2,957

  	
   

  
	
  9/30/2010

  	
   

  	
  2,871

  	
   

  
	
  10/31/2010

  	
   

  	
  2,881

  	
   

  
	
  11/30/2010

  	
   

  	
  2,793

  	
   

  
	
  12/31/2010

  	
   

  	
  2,759

  	
   

  
	
  1/31/2011

  	
   

  	
  2,747

  	
   

  
	
  2/28/2011

  	
   

  	
  2,630

  	
   

  
	
  3/31/2011

  	
   

  	
  2,595

  	
   

  
	
  4/30/2011

  	
   

  	
  2,566

  	
   

  
	
  5/31/2011

  	
   

  	
  2,548

  	
   

  
	
  6/30/2011

  	
   

  	
  2,505

  	
   

  
	
  7/31/2011

  	
   

  	
  2,515

  	
   

  
	
  8/31/2011

  	
   

  	
  2,450

  	
   

  
	
  9/30/2011

  	
   

  	
  2,411

  	
   

  
	
  10/31/2011

  	
   

  	
  2,423

  	
   

  
	
  11/30/2011

  	
   

  	
  2,428

  	
   

  
	
  12/31/2011

  	
   

  	
  2,399

  	
   

  
	
  1/31/2012

  	
   

  	
  2,380

  	
   

  
	
  2/28/2012

  	
   

  	
  2,301

  	
   

  
	
  3/31/2012

  	
   

  	
  2,236

  	
   

  
	
  4/30/2012

  	
   

  	
  2,230

  	
   

  
	
  5/31/2012

  	
   

  	
  2,201

  	
   

  
	
  6/30/2012

  	
   

  	
  2,175

  	
   

  

 

1

 

	
  Date

  	
   

  	
  Balance (in millions of

  USD)

  	
   

  
	
  7/31/2012

  	
   

  	
  2,092

  	
   

  
	
  8/31/2012

  	
   

  	
  2,073

  	
   

  
	
  9/30/2012

  	
   

  	
  2,037

  	
   

  
	
  10/31/2012

  	
   

  	
  1,947

  	
   

  
	
  11/30/2012

  	
   

  	
  1,951

  	
   

  
	
  12/31/2012

  	
   

  	
  1,927

  	
   

  
	
  1/31/2013

  	
   

  	
  1,920

  	
   

  
	
  2/28/2013

  	
   

  	
  1,839

  	
   

  
	
  3/31/2013

  	
   

  	
  1,811

  	
   

  
	
  4/30/2013

  	
   

  	
  1,777

  	
   

  
	
  5/31/2013

  	
   

  	
  1,785

  	
   

  
	
  6/30/2013

  	
   

  	
  1,748

  	
   

  
	
  7/31/2013

  	
   

  	
  1,590

  	
   

  
	
  8/31/2013

  	
   

  	
  1,537

  	
   

  
	
  9/30/2013

  	
   

  	
  1,518

  	
   

  
	
  10/31/2013

  	
   

  	
  1,541

  	
   

  
	
  11/30/2013

  	
   

  	
  1,435

  	
   

  
	
  12/31/2013

  	
   

  	
  1,414

  	
   

  
	
  1/31/2014

  	
   

  	
  1,426

  	
   

  
	
  2/28/2014

  	
   

  	
  1,326

  	
   

  
	
  3/31/2014

  	
   

  	
  1,331

  	
   

  
	
  4/30/2014

  	
   

  	
  1,342

  	
   

  
	
  5/31/2014

  	
   

  	
  1,323

  	
   

  
	
  6/30/2014

  	
   

  	
  1,288

  	
   

  
	
  7/31/2014

  	
   

  	
  1,303

  	
   

  
	
  8/31/2014

  	
   

  	
  1,309

  	
   

  
	
  9/30/2014

  	
   

  	
  1,288

  	
   

  
	
  10/31/2014

  	
   

  	
  1,328

  	
   

  
	
  11/30/2014

  	
   

  	
  1,337

  	
   

  
	
  12/31/2014

  	
   

  	
  1,313

  	
   

  
	
  1/31/2015

  	
   

  	
  1,315

  	
   

  
	
  2/28/2015

  	
   

  	
  1,223

  	
   

  
	
  3/31/2015

  	
   

  	
  1,230

  	
   

  
	
  4/30/2015

  	
   

  	
  1,237

  	
   

  
	
  5/31/2015

  	
   

  	
  1,251

  	
   

  
	
  6/30/2015

  	
   

  	
  1,142

  	
   

  
	
  7/31/2015

  	
   

  	
  1,166

  	
   

  
	
  8/31/2015

  	
   

  	
  1,180

  	
   

  
	
  9/30/2015

  	
   

  	
  1,141

  	
   

  
	
  10/31/2015

  	
   

  	
  1,181

  	
   

  

 

2

 

	
  Date

  	
   

  	
  Balance (in millions of

  USD)

  	
   

  
	
  11/30/2015

  	
   

  	
  1,210

  	
   

  
	
  12/31/2015

  	
   

  	
  1,176

  	
   

  
	
  1/31/2016

  	
   

  	
  1,180

  	
   

  
	
  2/28/2016

  	
   

  	
  1,114

  	
   

  
	
  3/31/2016

  	
   

  	
  1,115

  	
   

  
	
  4/30/2016

  	
   

  	
  1,124

  	
   

  
	
  5/31/2016

  	
   

  	
  1,139

  	
   

  
	
  6/30/2016

  	
   

  	
  1,138

  	
   

  
	
  7/31/2016

  	
   

  	
  1,122

  	
   

  
	
  8/31/2016

  	
   

  	
  1,145

  	
   

  
	
  9/30/2016

  	
   

  	
  1,131

  	
   

  
	
  10/31/2016

  	
   

  	
  1,157

  	
   

  
	
  11/30/2016

  	
   

  	
  1,179

  	
   

  
	
  12/31/2016

  	
   

  	
  1,181

  	
   

  
	
  1/31/2017

  	
   

  	
  1,183

  	
   

  
	
  2/28/2017

  	
   

  	
  1,112

  	
   

  
	
  3/31/2017

  	
   

  	
  1,120

  	
   

  
	
  4/30/2017

  	
   

  	
  1,115

  	
   

  
	
  5/31/2017

  	
   

  	
  1,135

  	
   

  
	
  6/30/2017

  	
   

  	
  1,142

  	
   

  
	
  7/31/2017

  	
   

  	
  1,159

  	
   

  
	
  8/31/2017

  	
   

  	
  1,144

  	
   

  
	
  9/30/2017

  	
   

  	
  1,132

  	
   

  
	
  10/31/2017

  	
   

  	
  1,163

  	
   

  
	
  11/30/2017

  	
   

  	
  1,188

  	
   

  
	
  12/31/2017

  	
   

  	
  1,177

  	
   

  
	
  1/31/2018

  	
   

  	
  1,188

  	
   

  
	
  2/28/2018

  	
   

  	
  1,126

  	
   

  
	
  3/31/2018

  	
   

  	
  1,125

  	
   

  
	
  4/30/2018

  	
   

  	
  1,112

  	
   

  
	
  5/31/2018

  	
   

  	
  1,128

  	
   

  
	
  6/30/2018

  	
   

  	
  1,122

  	
   

  
	
  7/31/2018

  	
   

  	
  1,154

  	
   

  
	
  8/31/2018

  	
   

  	
  1,155

  	
   

  
	
  9/30/2018

  	
   

  	
  1,099

  	
   

  
	
  10/31/2018

  	
   

  	
  1,083

  	
   

  
	
  11/30/2018

  	
   

  	
  1,111

  	
   

  
	
  12/31/2018

  	
   

  	
  1,118

  	
   

  
	
  1/31/2019

  	
   

  	
  1,125

  	
   

  
	
  2/28/2019

  	
   

  	
  1,059

  	
   

  

 

3

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  3/31/2019

  	
   

  	
  1,046

  	
   

  
	
  4/30/2019

  	
   

  	
  1,057

  	
   

  
	
  5/31/2019

  	
   

  	
  1,081

  	
   

  
	
  6/30/2019

  	
   

  	
  1,072

  	
   

  
	
  7/31/2019

  	
   

  	
  1,108

  	
   

  
	
  8/31/2019

  	
   

  	
  1,108

  	
   

  
	
  9/30/2019

  	
   

  	
  1,098

  	
   

  
	
  10/31/2019

  	
   

  	
  1,103

  	
   

  
	
  11/30/2019

  	
   

  	
  1,132

  	
   

  
	
  12/31/2019

  	
   

  	
  1,139

  	
   

  
	
  1/31/2020

  	
   

  	
  1,148

  	
   

  
	
  2/28/2020

  	
   

  	
  1,053

  	
   

  
	
  3/31/2020

  	
   

  	
  1,070

  	
   

  
	
  4/30/2020

  	
   

  	
  1,089

  	
   

  
	
  5/31/2020

  	
   

  	
  1,096

  	
   

  
	
  6/30/2020

  	
   

  	
  1,096

  	
   

  
	
  7/31/2020

  	
   

  	
  1,138

  	
   

  
	
  8/31/2020

  	
   

  	
  1,143

  	
   

  
	
  9/30/2020

  	
   

  	
  1,116

  	
   

  
	
  10/31/2020

  	
   

  	
  1,158

  	
   

  
	
  11/30/2020

  	
   

  	
  1,155

  	
   

  
	
  12/31/2020

  	
   

  	
  1,157

  	
   

  
	
  1/31/2021

  	
   

  	
  1,158

  	
   

  
	
  2/28/2021

  	
   

  	
  1,099

  	
   

  
	
  3/31/2021

  	
   

  	
  1,058

  	
   

  
	
  4/30/2021

  	
   

  	
  1,083

  	
   

  
	
  5/31/2021

  	
   

  	
  1,096

  	
   

  
	
  6/30/2021

  	
   

  	
  1,087

  	
   

  
	
  7/31/2021

  	
   

  	
  1,114

  	
   

  
	
  8/31/2021

  	
   

  	
  1,132

  	
   

  
	
  9/30/2021

  	
   

  	
  1,115

  	
   

  
	
  10/31/2021

  	
   

  	
  1,147

  	
   

  
	
  11/30/2021

  	
   

  	
  1,184

  	
   

  
	
  12/31/2021

  	
   

  	
  1,156

  	
   

  
	
  1/31/2022

  	
   

  	
  1,161

  	
   

  
	
  2/28/2022

  	
   

  	
  1,100

  	
   

  
	
  3/31/2022

  	
   

  	
  1,083

  	
   

  
	
  4/30/2022

  	
   

  	
  1,097

  	
   

  
	
  5/31/2022

  	
   

  	
  1,112

  	
   

  
	
  6/30/2022

  	
   

  	
  1,092

  	
   

  

 

4

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  7/31/2022

  	
   

  	
  1,105

  	
   

  
	
  8/31/2022

  	
   

  	
  1,122

  	
   

  
	
  9/30/2022

  	
   

  	
  1,115

  	
   

  
	
  10/31/2022

  	
   

  	
  1,144

  	
   

  
	
  11/30/2022

  	
   

  	
  1,174

  	
   

  
	
  12/31/2022

  	
   

  	
  1,175

  	
   

  
	
  1/31/2023

  	
   

  	
  1,185

  	
   

  
	
  2/28/2023

  	
   

  	
  1,087

  	
   

  
	
  3/31/2023

  	
   

  	
  1,105

  	
   

  
	
  4/30/2023

  	
   

  	
  1,099

  	
   

  
	
  5/31/2023

  	
   

  	
  1,108

  	
   

  
	
  6/30/2023

  	
   

  	
  1,102

  	
   

  
	
  7/31/2023

  	
   

  	
  1,117

  	
   

  
	
  8/31/2023

  	
   

  	
  1,119

  	
   

  
	
  9/30/2023

  	
   

  	
  1,116

  	
   

  
	
  10/31/2023

  	
   

  	
  1,135

  	
   

  
	
  11/30/2023

  	
   

  	
  1,146

  	
   

  
	
  12/31/2023

  	
   

  	
  1,143

  	
   

  
	
  1/31/2024

  	
   

  	
  1,162

  	
   

  
	
  2/28/2024

  	
   

  	
  1,145

  	
   

  
	
  3/31/2024

  	
   

  	
  1,131

  	
   

  
	
  4/30/2024

  	
   

  	
  1,122

  	
   

  
	
  5/31/2024

  	
   

  	
  1,122

  	
   

  
	
  6/30/2024

  	
   

  	
  1,112

  	
   

  
	
  7/31/2024

  	
   

  	
  1,122

  	
   

  
	
  8/31/2024

  	
   

  	
  1,133

  	
   

  
	
  9/30/2024

  	
   

  	
  1,129

  	
   

  
	
  10/31/2024

  	
   

  	
  1,139

  	
   

  
	
  11/30/2024

  	
   

  	
  1,147

  	
   

  
	
  12/31/2024

  	
   

  	
  1,155

  	
   

  
	
  1/31/2025

  	
   

  	
  1,171

  	
   

  
	
  2/28/2025

  	
   

  	
  1,179

  	
   

  
	
  3/31/2025

  	
   

  	
  1,195

  	
   

  
	
  4/30/2025

  	
   

  	
  1,153

  	
   

  
	
  5/31/2025

  	
   

  	
  1,157

  	
   

  
	
  6/30/2025

  	
   

  	
  1,133

  	
   

  
	
  7/31/2025

  	
   

  	
  1,156

  	
   

  
	
  8/31/2025

  	
   

  	
  1,149

  	
   

  
	
  9/30/2025

  	
   

  	
  1,140

  	
   

  
	
  10/31/2025

  	
   

  	
  1,156

  	
   

  

 

5

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  11/30/2025

  	
   

  	
  1,165

  	
   

  
	
  12/31/2025

  	
   

  	
  1,157

  	
   

  
	
  1/31/2026

  	
   

  	
  1,169

  	
   

  
	
  2/28/2026

  	
   

  	
  1,154

  	
   

  
	
  3/31/2026

  	
   

  	
  1,156

  	
   

  
	
  4/30/2026

  	
   

  	
  1,146

  	
   

  
	
  5/31/2026

  	
   

  	
  1,144

  	
   

  
	
  6/30/2026

  	
   

  	
  1,112

  	
   

  
	
  7/31/2026

  	
   

  	
  1,132

  	
   

  
	
  8/31/2026

  	
   

  	
  1,123

  	
   

  
	
  9/30/2026

  	
   

  	
  1,110

  	
   

  
	
  10/31/2026

  	
   

  	
  1,124

  	
   

  
	
  11/30/2026

  	
   

  	
  1,130

  	
   

  
	
  12/31/2026

  	
   

  	
  1,112

  	
   

  
	
  1/31/2027

  	
   

  	
  1,117

  	
   

  
	
  2/28/2027

  	
   

  	
  1,125

  	
   

  
	
  3/31/2027

  	
   

  	
  1,127

  	
   

  
	
  4/30/2027

  	
   

  	
  1,131

  	
   

  
	
  5/31/2027

  	
   

  	
  1,130

  	
   

  
	
  6/30/2027

  	
   

  	
  1,119

  	
   

  
	
  7/31/2027

  	
   

  	
  1,140

  	
   

  
	
  8/31/2027

  	
   

  	
  1,133

  	
   

  
	
  9/30/2027

  	
   

  	
  1,136

  	
   

  
	
  10/31/2027

  	
   

  	
  1,152

  	
   

  
	
  11/30/2027

  	
   

  	
  1,174

  	
   

  
	
  12/31/2027

  	
   

  	
  1,172

  	
   

  
	
  1/31/2028

  	
   

  	
  1,183

  	
   

  
	
  2/28/2028

  	
   

  	
  1,194

  	
   

  
	
  3/31/2028

  	
   

  	
  1,205

  	
   

  
	
  4/30/2028

  	
   

  	
  1,187

  	
   

  
	
  5/31/2028

  	
   

  	
  1,188

  	
   

  
	
  6/30/2028

  	
   

  	
  1,082

  	
   

  
	
  7/31/2028

  	
   

  	
  1,092

  	
   

  
	
  8/31/2028

  	
   

  	
  1,097

  	
   

  
	
  9/30/2028

  	
   

  	
  1,047

  	
   

  
	
  10/31/2028

  	
   

  	
  1,062

  	
   

  
	
  11/30/2028

  	
   

  	
  1,082

  	
   

  
	
  12/31/2028

  	
   

  	
  1,052

  	
   

  
	
  1/31/2029

  	
   

  	
  1,077

  	
   

  
	
  2/28/2029

  	
   

  	
  1,092

  	
   

  

 

6

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  3/31/2029

  	
   

  	
  1,097

  	
   

  
	
  4/30/2029

  	
   

  	
  1,103

  	
   

  
	
  5/31/2029

  	
   

  	
  1,103

  	
   

  
	
  6/30/2029

  	
   

  	
  1,045

  	
   

  
	
  7/31/2029

  	
   

  	
  1,035

  	
   

  
	
  8/31/2029

  	
   

  	
  1,038

  	
   

  
	
  9/30/2029

  	
   

  	
  1,033

  	
   

  
	
  10/31/2029

  	
   

  	
  1,040

  	
   

  
	
  11/30/2029

  	
   

  	
  1,057

  	
   

  
	
  12/31/2029

  	
   

  	
  1,031

  	
   

  
	
  1/31/2030

  	
   

  	
  1,031

  	
   

  
	
  2/28/2030

  	
   

  	
  1,043

  	
   

  
	
  3/31/2030

  	
   

  	
  1,063

  	
   

  
	
  4/30/2030

  	
   

  	
  1,040

  	
   

  
	
  5/31/2030

  	
   

  	
  1,034

  	
   

  
	
  6/30/2030

  	
   

  	
  994

  	
   

  
	
  7/31/2030

  	
   

  	
  1,001

  	
   

  
	
  8/31/2030

  	
   

  	
  1,005

  	
   

  
	
  9/30/2030

  	
   

  	
  965

  	
   

  
	
  10/31/2030

  	
   

  	
  969

  	
   

  
	
  11/30/2030

  	
   

  	
  972

  	
   

  
	
  12/31/2030

  	
   

  	
  969

  	
   

  
	
  1/31/2031

  	
   

  	
  983

  	
   

  
	
  2/28/2031

  	
   

  	
  988

  	
   

  
	
  3/31/2031

  	
   

  	
  1,009

  	
   

  
	
  4/30/2031

  	
   

  	
  998

  	
   

  
	
  5/31/2031

  	
   

  	
  992

  	
   

  
	
  6/30/2031

  	
   

  	
  939

  	
   

  
	
  7/31/2031

  	
   

  	
  947

  	
   

  
	
  8/31/2031

  	
   

  	
  953

  	
   

  
	
  9/30/2031

  	
   

  	
  831

  	
   

  
	
  10/31/2031

  	
   

  	
  812

  	
   

  
	
  11/30/2031

  	
   

  	
  820

  	
   

  
	
  12/31/2031

  	
   

  	
  610

  	
   

  
	
  1/31/2032

  	
   

  	
  616

  	
   

  
	
  2/28/2032

  	
   

  	
  625

  	
   

  
	
  3/31/2032

  	
   

  	
  646

  	
   

  
	
  4/30/2032

  	
   

  	
  636

  	
   

  
	
  5/31/2032

  	
   

  	
  638

  	
   

  
	
  6/30/2032

  	
   

  	
  581

  	
   

  

 

7

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  7/31/2032

  	
   

  	
  600

  	
   

  
	
  8/31/2032

  	
   

  	
  587

  	
   

  
	
  9/30/2032

  	
   

  	
  596

  	
   

  
	
  10/31/2032

  	
   

  	
  597

  	
   

  
	
  11/30/2032

  	
   

  	
  601

  	
   

  
	
  12/31/2032

  	
   

  	
  614

  	
   

  
	
  1/31/2033

  	
   

  	
  592

  	
   

  
	
  2/28/2033

  	
   

  	
  601

  	
   

  
	
  3/31/2033

  	
   

  	
  608

  	
   

  
	
  4/30/2033

  	
   

  	
  612

  	
   

  
	
  5/31/2033

  	
   

  	
  610

  	
   

  
	
  6/30/2033

  	
   

  	
  537

  	
   

  
	
  7/31/2033

  	
   

  	
  553

  	
   

  
	
  8/31/2033

  	
   

  	
  544

  	
   

  
	
  9/30/2033

  	
   

  	
  490

  	
   

  
	
  10/31/2033

  	
   

  	
  491

  	
   

  
	
  11/30/2033

  	
   

  	
  494

  	
   

  
	
  12/31/2033

  	
   

  	
  450

  	
   

  
	
  1/31/2034

  	
   

  	
  436

  	
   

  
	
  2/28/2034

  	
   

  	
  442

  	
   

  
	
  3/31/2034

  	
   

  	
  449

  	
   

  
	
  4/30/2034

  	
   

  	
  452

  	
   

  
	
  5/31/2034

  	
   

  	
  449

  	
   

  
	
  6/30/2034

  	
   

  	
  317

  	
   

  
	
  7/31/2034

  	
   

  	
  335

  	
   

  
	
  8/31/2034

  	
   

  	
  322

  	
   

  
	
  9/30/2034

  	
   

  	
  207

  	
   

  
	
  10/31/2034

  	
   

  	
  201

  	
   

  
	
  11/30/2034

  	
   

  	
  213

  	
   

  
	
  12/31/2034

  	
   

  	
  81

  	
   

  
	
  1/31/2035

  	
   

  	
  86

  	
   

  
	
  2/28/2035

  	
   

  	
  100

  	
   

  
	
  3/31/2035

  	
   

  	
  106

  	
   

  
	
  4/30/2035

  	
   

  	
  106

  	
   

  
	
  5/31/2035

  	
   

  	
  100

  	
   

  
	
  6/30/2035

  	
   

  	
  76

  	
   

  
	
  7/31/2035

  	
   

  	
  77

  	
   

  
	
  8/31/2035

  	
   

  	
  77

  	
   

  
	
  9/30/2035

  	
   

  	
  80

  	
   

  
	
  10/31/2035

  	
   

  	
  69

  	
   

  

 

8

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  11/30/2035

  	
   

  	
  82

  	
   

  
	
  12/31/2035

  	
   

  	
  67

  	
   

  
	
  1/31/2036

  	
   

  	
  67

  	
   

  
	
  2/28/2036

  	
   

  	
  69

  	
   

  
	
  3/31/2036

  	
   

  	
  75

  	
   

  
	
  4/30/2036

  	
   

  	
  72

  	
   

  
	
  5/31/2036

  	
   

  	
  72

  	
   

  
	
  6/30/2036

  	
   

  	
  65

  	
   

  
	
  7/31/2036

  	
   

  	
  67

  	
   

  
	
  8/31/2036

  	
   

  	
  68

  	
   

  
	
  9/30/2036

  	
   

  	
  70

  	
   

  
	
  10/31/2036

  	
   

  	
  66

  	
   

  
	
  11/30/2036

  	
   

  	
  78

  	
   

  
	
  12/31/2036

  	
   

  	
  63

  	
   

  
	
  1/31/2037

  	
   

  	
  64

  	
   

  
	
  2/28/2037

  	
   

  	
  66

  	
   

  
	
  3/31/2037

  	
   

  	
  81

  	
   

  
	
  4/30/2037

  	
   

  	
  66

  	
   

  
	
  5/31/2037

  	
   

  	
  66

  	
   

  
	
  6/30/2037

  	
   

  	
  68

  	
   

  
	
  7/31/2037

  	
   

  	
  69

  	
   

  
	
  8/31/2037

  	
   

  	
  69

  	
   

  
	
  9/30/2037

  	
   

  	
  72

  	
   

  
	
  10/31/2037

  	
   

  	
  66

  	
   

  
	
  11/30/2037

  	
   

  	
  65

  	
   

  
	
  12/31/2037

  	
   

  	
  66

  	
   

  
	
  1/31/2038

  	
   

  	
  67

  	
   

  
	
  2/28/2038

  	
   

  	
  67

  	
   

  
	
  3/31/2038

  	
   

  	
  82

  	
   

  
	
  4/30/2038

  	
   

  	
  65

  	
   

  
	
  5/31/2038

  	
   

  	
  66

  	
   

  
	
  6/30/2038

  	
   

  	
  68

  	
   

  
	
  7/31/2038

  	
   

  	
  70

  	
   

  
	
  8/31/2038

  	
   

  	
  71

  	
   

  
	
  9/30/2038

  	
   

  	
  73

  	
   

  
	
  10/31/2038

  	
   

  	
  68

  	
   

  
	
  11/30/2038

  	
   

  	
  67

  	
   

  
	
  12/31/2038

  	
   

  	
  66

  	
   

  
	
  1/31/2039

  	
   

  	
  67

  	
   

  
	
  2/28/2039

  	
   

  	
  68

  	
   

  

 

9

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  3/31/2039

  	
   

  	
  83

  	
   

  
	
  4/30/2039

  	
   

  	
  65

  	
   

  
	
  5/31/2039

  	
   

  	
  67

  	
   

  
	
  6/30/2039

  	
   

  	
  67

  	
   

  
	
  7/31/2039

  	
   

  	
  82

  	
   

  
	
  8/31/2039

  	
   

  	
  69

  	
   

  
	
  9/30/2039

  	
   

  	
  71

  	
   

  
	
  10/31/2039

  	
   

  	
  63

  	
   

  
	
  11/30/2039

  	
   

  	
  62

  	
   

  
	
  12/31/2039

  	
   

  	
  63

  	
   

  
	
  1/31/2040

  	
   

  	
  65

  	
   

  
	
  2/28/2040

  	
   

  	
  68

  	
   

  
	
  3/31/2040

  	
   

  	
  64

  	
   

  
	
  4/30/2040

  	
   

  	
  61

  	
   

  
	
  5/31/2040

  	
   

  	
  60

  	
   

  
	
  6/30/2040

  	
   

  	
  59

  	
   

  
	
  7/31/2040

  	
   

  	
  72

  	
   

  
	
  8/31/2040

  	
   

  	
  61

  	
   

  
	
  9/30/2040

  	
   

  	
  65

  	
   

  
	
  10/31/2040

  	
   

  	
  65

  	
   

  
	
  11/30/2040

  	
   

  	
  64

  	
   

  
	
  12/31/2040

  	
   

  	
  63

  	
   

  
	
  1/31/2041

  	
   

  	
  60

  	
   

  
	
  2/28/2041

  	
   

  	
  58

  	
   

  
	
  3/31/2041

  	
   

  	
  60

  	
   

  
	
  4/30/2041

  	
   

  	
  58

  	
   

  
	
  5/31/2041

  	
   

  	
  57

  	
   

  
	
  6/30/2041

  	
   

  	
  58

  	
   

  
	
  7/31/2041

  	
   

  	
  72

  	
   

  
	
  8/31/2041

  	
   

  	
  60

  	
   

  
	
  9/30/2041

  	
   

  	
  63

  	
   

  
	
  10/31/2041

  	
   

  	
  60

  	
   

  
	
  11/30/2041

  	
   

  	
  72

  	
   

  
	
  12/31/2041

  	
   

  	
  56

  	
   

  
	
  1/31/2042

  	
   

  	
  59

  	
   

  
	
  2/28/2042

  	
   

  	
  64

  	
   

  
	
  3/31/2042

  	
   

  	
  65

  	
   

  
	
  4/30/2042

  	
   

  	
  61

  	
   

  
	
  5/31/2042

  	
   

  	
  62

  	
   

  
	
  6/30/2042

  	
   

  	
  57

  	
   

  

 

10

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  7/31/2042

  	
   

  	
  58

  	
   

  
	
  8/31/2042

  	
   

  	
  60

  	
   

  
	
  9/30/2042

  	
   

  	
  57

  	
   

  
	
  10/31/2042

  	
   

  	
  55

  	
   

  
	
  11/30/2042

  	
   

  	
  68

  	
   

  
	
  12/31/2042

  	
   

  	
  52

  	
   

  
	
  1/31/2043

  	
   

  	
  53

  	
   

  
	
  2/28/2043

  	
   

  	
  57

  	
   

  
	
  3/31/2043

  	
   

  	
  59

  	
   

  
	
  4/30/2043

  	
   

  	
  57

  	
   

  
	
  5/31/2043

  	
   

  	
  57

  	
   

  
	
  6/30/2043

  	
   

  	
  53

  	
   

  
	
  7/31/2043

  	
   

  	
  54

  	
   

  
	
  8/31/2043

  	
   

  	
  55

  	
   

  
	
  9/30/2043

  	
   

  	
  56

  	
   

  
	
  10/31/2043

  	
   

  	
  50

  	
   

  
	
  11/30/2043

  	
   

  	
  63

  	
   

  
	
  12/31/2043

  	
   

  	
  48

  	
   

  
	
  1/31/2044

  	
   

  	
  48

  	
   

  
	
  2/28/2044

  	
   

  	
  48

  	
   

  
	
  3/31/2044

  	
   

  	
  62

  	
   

  
	
  4/30/2044

  	
   

  	
  45

  	
   

  
	
  5/31/2044

  	
   

  	
  45

  	
   

  
	
  6/30/2044

  	
   

  	
  49

  	
   

  
	
  7/31/2044

  	
   

  	
  49

  	
   

  
	
  8/31/2044

  	
   

  	
  50

  	
   

  
	
  9/30/2044

  	
   

  	
  52

  	
   

  
	
  10/31/2044

  	
   

  	
  44

  	
   

  
	
  11/30/2044

  	
   

  	
  43

  	
   

  
	
  12/31/2044

  	
   

  	
  41

  	
   

  
	
  1/31/2045

  	
   

  	
  42

  	
   

  
	
  2/28/2045

  	
   

  	
  43

  	
   

  
	
  3/31/2045

  	
   

  	
  56

  	
   

  
	
  4/30/2045

  	
   

  	
  40

  	
   

  
	
  5/31/2045

  	
   

  	
  41

  	
   

  
	
  6/30/2045

  	
   

  	
  41

  	
   

  
	
  7/31/2045

  	
   

  	
  42

  	
   

  
	
  8/31/2045

  	
   

  	
  43

  	
   

  
	
  9/30/2045

  	
   

  	
  44

  	
   

  
	
  10/31/2045

  	
   

  	
  36

  	
   

  

 

11

 

	
  Date

  	
   

  	
  Balance (in millions of 

  USD)

  	
   

  
	
  11/30/2045

  	
   

  	
  36

  	
   

  
	
  12/31/2045

  	
   

  	
  37

  	
   

  
	
  1/31/2046

  	
   

  	
  37

  	
   

  
	
  2/28/2046

  	
   

  	
  38

  	
   

  
	
  3/31/2046

  	
   

  	
  52

  	
   

  
	
  4/30/2046

  	
   

  	
  35

  	
   

  
	
  5/31/2046

  	
   

  	
  36

  	
   

  
	
  6/30/2046

  	
   

  	
  37

  	
   

  
	
  7/31/2046

  	
   

  	
  50

  	
   

  
	
  8/31/2046

  	
   

  	
  37

  	
   

  
	
  9/30/2046

  	
   

  	
  38

  	
   

  
	
  10/31/2046

  	
   

  	
  27

  	
   

  
	
  11/30/2046

  	
   

  	
  3

  	
   

  
	
  12/31/2046

  	
   

  	
  3

  	
   

  
	
  1/31/2047

  	
   

  	
  3

  	
   

  
	
  2/28/2047

  	
   

  	
  3

  	
   

  
	
  3/31/2047

  	
   

  	
  3

  	
   

  
	
  4/30/2047

  	
   

  	
  3

  	
   

  
	
  5/31/2047

  	
   

  	
  3

  	
   

  
	
  6/30/2047

  	
   

  	
  3

  	
   

  

 

12

 

Exhibit D to Schedule B —
Amortization Assumptions

 

For
Structured GICs:

 

·                  ABS CDO
GICs:

 

For
the ABS CDO GICs, 10 of the ABS CDO transactions in our GIC portfolio,
representing approximately 65% of the outstanding notional amount, are modeled
in Intex.  We applied subprime and Alt-A
default and severity curves to the respective portions of the underlying assets
consistent with the average rates used in our impairment analysis.  For the subprime assets, the CDR plateau was
28.84% which remained constant for 21 months followed by a 12 month linear
decline to 7.21%.  For the Alt-A assets,
a CDR plateau of 19.62% was used for the first 21 months followed by a 12 month
linear decline to 4.91%.  Severities for
subprime are assumed to increase from 50% to 60% over the first 15 months after
which they remained constant at 60% for the remaining life.  For the Alt-A assets, severities were assumed
to increase from 40% to 50% over the first 15 months after which they remained
constant at 50% for the remaining life. 
Prepayments were assumed to be 5% for the first 21 months followed by a
12 month linear ramp up to 15% after which the rate remained constant at 15%
for the remaining life.  For the
transactions that we were unable to model, the average of the modeled schedules
was used to project the GIC balance.

 

·                  CDO/CLO
GICs:

 

We
use Moody’s average historical default rates, applied to the underlying
collateral of each CDO/CLO deal.  The
loss severity is 50% for loans and 70% for senior unsecured bonds.  The Moody’s historical default rates are
rating dependent.

 

For other GICs, the schedules are reviewed
periodically by risk management according to the process and procedure
specified in the ALM guidelines

 

1

 

Schedule C — Valuation
Procedures

 

I.  For assets other than FSA PAL bonds and the
Private Placement Securities specified in III. below (“Private Placement
Securities”), The Bank of New York Mellon and Wells Fargo Bank, National
Association (each, an “Account Bank”) will determine the Indicative Market
Value of each FSAM Asset or item of Eligible Collateral (for purposes of this
Schedule C, an “Asset”) each in accordance with the market prices provided to
the Account Bank by one or more nationally-recognized third party pricing
services which the Account Bank uses generally for pricing assets of a similar
type to the Assets, and in any event in accordance with the standard procedure
and methodology utilized by the Account Bank in valuing securities held by it
(including such procedures it generally adopts in the absence of data available
from its preferred third-party pricing services), whether for its own account
or the accounts of other customers, as such procedure and methodology may be
amended by the Account Bank from time to time for general application with
respect to securities held by it, whether for its own account or the accounts
of other customers.

 

II. 
Valuation of FSA PAL bonds will be reported by the Administrator to the
Valuation Agent based on the valuation of Royal Bank of Scotland (RBS), a
dealer in UK Inflation-Indexed bonds. 
Prices are determined by RBS based on prices observed on trades of
similar fixed rate bonds which are relatively liquid, and spreads from the
inflation swap yield curve.  In the case
of bonds with tenors of greater than 30 years, such inputs are modified by an
additional spread premium from market sources, including bid and offer lists,
and the prices on observed trades are combined with the swap spreads to arrive
at a yield used to derive a price for the Asset/Swap.

 

III. 
With respect to the Private Placement Securities, the Administrator will determine the
prices of these assets as follows: 
1.  On each Valuation Date obtain
FSA’s 5-year CDS spread from Bloomberg using the ticker “FSA INS CDS USD SR 5Y”
and add 200 basis points (the spread so obtained the “FSA Spread”).  2. Calculate the present values, based on
the then current swap curve rate (as derived from market data reported by
recognized pricing information service providers and using recognized
systems-based curve-building models) plus the FSA Spread, of the projected
payments of principal and interest on the relevant Private Placement Security
based on the projections thereof determined by FSA and as most recently advised
to the Administrator by FSA. 3.  Express the sum of the
values in 2 as a percentage of the current principal balance of such Private
Placement Security.  The percentage price so determined will be
reported by the Administrator to the Valuation Agent.

 

The Private Placement
Securities are listed below:

 

	
  ID

  	
   

  	
  Balance

  	
   

  	
  WAL

  	
   

  	
  Price (5/31)

  	
   

  
	
  BAY_VEIW_FMAC_1998_D_REFI_SERIES_15

  	
   

  	
  16.9

  	
   

  	
  8.3

  	
   

  	
  45.3

  	
   

  
	
  BAY_VIEW_FMAC_1998_D_REFI_SERIES_10

  	
   

  	
  1.3

  	
   

  	
  3.3

  	
   

  	
  69.4

  	
   

  
	
  BAY_VIEW_FMAC_1998_D_REFI_SERIES_11

  	
   

  	
  15.5

  	
   

  	
  4.3

  	
   

  	
  62.5

  	
   

  
	
  BAY_VIEW_FMAC_1998_D_REFI_SERIES_12

  	
   

  	
  8

  	
   

  	
  5.3

  	
   

  	
  56.8

  	
   

  
	
  BAY_VIEW_FMAC_1998_D_REFI_SERIES_13

  	
   

  	
  4

  	
   

  	
  6.3

  	
   

  	
  52.1

  	
   

  
	
  BAY_VIEW_FMAC_1998_D_REFI_SERIES_14

  	
   

  	
  4

  	
   

  	
  7.3

  	
   

  	
  48.3

  	
   

  
	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_10

  	
   

  	
  15.3

  	
   

  	
  3.4

  	
   

  	
  66.7

  	
   

  
	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_11

  	
   

  	
  14.6

  	
   

  	
  4.4

  	
   

  	
  59.7

  	
   

  
	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_12

  	
   

  	
  6.5

  	
   

  	
  5.3

  	
   

  	
  54

  	
   

  
	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_13

  	
   

  	
  2

  	
   

  	
  6.3

  	
   

  	
  49.3

  	
   

  
	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_14

  	
   

  	
  2

  	
   

  	
  7.4

  	
   

  	
  45.6

  	
   

  

 

1

 

	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_15

  	
   

  	
  31.3

  	
   

  	
  8.4

  	
   

  	
  42.7

  	
   

  
	
  BAY_VIEW_FMAC_2000_A_REFI_SERIES_9

  	
   

  	
  6.4

  	
   

  	
  2.3

  	
   

  	
  76.7

  	
   

  
	
  IMC_97-7_REFI_NOTES

  	
   

  	
  20.8

  	
   

  	
  1.8

  	
   

  	
  78.4

  	
   

  
	
  MLN_1999_2_REFI

  	
   

  	
  11.6

  	
   

  	
  3.3

  	
   

  	
  64.6

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_A

  	
   

  	
  0.004

  	
   

  	
  0.1

  	
   

  	
  100

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL10

  	
   

  	
  0.8

  	
   

  	
  0.3

  	
   

  	
  95.8

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL11

  	
   

  	
  1

  	
   

  	
  0.3

  	
   

  	
  95.7

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL12

  	
   

  	
  1.6

  	
   

  	
  0.4

  	
   

  	
  95.3

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL13

  	
   

  	
  3.3

  	
   

  	
  0.4

  	
   

  	
  94.6

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL14

  	
   

  	
  2.2

  	
   

  	
  0.4

  	
   

  	
  94.7

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL15

  	
   

  	
  2.7

  	
   

  	
  0.4

  	
   

  	
  94.1

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL16

  	
   

  	
  3.6

  	
   

  	
  0.5

  	
   

  	
  93.3

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL17

  	
   

  	
  4.1

  	
   

  	
  0.5

  	
   

  	
  92.8

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL18

  	
   

  	
  5.7

  	
   

  	
  0.5

  	
   

  	
  93

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL19

  	
   

  	
  9.1

  	
   

  	
  0.6

  	
   

  	
  91.9

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL2

  	
   

  	
  0.02

  	
   

  	
  0.1

  	
   

  	
  99.6

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL20

  	
   

  	
  5.7

  	
   

  	
  0.6

  	
   

  	
  91.8

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL21

  	
   

  	
  5.2

  	
   

  	
  0.7

  	
   

  	
  90.7

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL22

  	
   

  	
  5.7

  	
   

  	
  0.7

  	
   

  	
  91.2

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL23

  	
   

  	
  4.9

  	
   

  	
  0.8

  	
   

  	
  90

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL24

  	
   

  	
  5.3

  	
   

  	
  0.8

  	
   

  	
  89.4

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL25

  	
   

  	
  5.9

  	
   

  	
  0.9

  	
   

  	
  88.8

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL26

  	
   

  	
  6.7

  	
   

  	
  0.8

  	
   

  	
  89

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL3

  	
   

  	
  0.04

  	
   

  	
  0.1

  	
   

  	
  98.7

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL4

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  	
  98.2

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL5

  	
   

  	
  0.03

  	
   

  	
  0.2

  	
   

  	
  97.9

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL6

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  97.4

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL7

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  97.2

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL8

  	
   

  	
  0.4

  	
   

  	
  0.3

  	
   

  	
  96.5

  	
   

  
	
  WESTLAKE_FUNDING_II_LLC_POOL9

  	
   

  	
  1

  	
   

  	
  0.3

  	
   

  	
  96.3

  	
   

  

 

In Principia (a pricing
information service provider), principal amortization for the Westlake transactions are ratio
stripped (see definition below) monthly and re-projected (as defined below)
periodically, when new projections are provided by Financial Security Assurance
Inc.  In the future, the Westlake
transactions will be re-projected quarterly. 
Principal amortization for the MLN and IMC transactions have generally
not been re-projected, but will be re-projected quarterly going forward in
addition to being ratio stripped monthly. 
The Bayview FMAC transactions are tranched into fixed-rate bullets,
which are not re-projected in Principia because of make-whole provisions.  However, on a monthly basis, Financial
Security Assurance Inc. provides and will continue to provide a statement
detailing the distribution of interest, principal and any make-whole payment if
applicable.

 

“Ratio
Stripping” is the
process by which principal amortization that is either greater or less than the
projected amount is evenly distributed over the remaining principal payment
dates.

 

2

 

“Re-projection” is the process of recalculating
principal amortization based on updating assumptions for interest rates and
underlying loan characteristics such as prepayments, defaults, and loss
severity.

 

3

 

Schedule D — Forms of Subordinated
Hedge Arrangements

 

 

AMENDMENT
AGREEMENT

 

dated as of [      ], 2009

 

	
  among:

  	
  [COUNTERPARTY] (“Party A”)

  
	
   

  	
   

  
	
  and

  	
  FSA ASSET MANAGEMENT LLC  (“FSAM” or “Party B”)

  
	
   

  	
   

  
	
  and

  	
  DEXIA CRÉDIT LOCAL S.A. (“DCL”);

  
	
   

  	
   

  
	
  and

  	
  FINANCIAL SECURITY ASSURANCE INC. (“FSA”)

  

 

W I T N E S S E T H

 

WHEREAS, Party A and Party B are parties to an ISDA Master Agreement,
dated as of [     ], as amended and
supplemented from time to time, including pursuant to any Schedule and Credit
Support Annex thereto (any such Credit Support Annex, the “FSAM Credit Support Annex”) (collectively,
the “FSAM Master Agreement”);

 

WHEREAS, FSA has issued a financial guaranty insurance policy (the “FSA Policy”) in respect of the obligations
of Party B pursuant to the FSAM Master Agreement;

 

WHEREAS, Party A and DCL are parties to an ISDA Master Agreement, dated
as of [     ], as amended and
supplemented from time to time, including pursuant to any Schedule and Credit
Support Annex thereto (any such Credit Support Annex, the “DCL Credit Support Annex”) (collectively,
the “DCL Master Agreement”);

 

WHEREAS, the parties wish to amend the FSAM Master Agreement and DCL
Master Agreement as set forth below; and

 

WHEREAS, reference is made to a certain Pledge and Administration
Agreement (the “Pledge and Administration
Agreement”), dated as of June 30, 2009, among Dexia SA, DCL, Dexia
Bank Belgium SA, FSA, Party B, FSA Portfolio Asset Limited, FSA Capital Markets
Services LLC, FSA Capital Management Services LLC, FSA Capital Markets Services
(Caymans) Ltd., and The Bank of New York Mellon Trust Company, as the same may
be amended, supplemented or modified from time to time.

 

NOW, THEREFORE, in consideration of the premises and
agreements contained herein and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties hereto,
the parties hereto hereby agree to the following:

 

ARTICLE I

AMENDMENTS TO FSAM MASTER AGREEMENT

 

The parties agree that the FSAM Master Agreement shall
be amended, as of the Amendment Effective Date defined below, as follows:

 

SECTION 1.1.  DCL
Guarantee.  Subject to the delivery
by Party A of an executed counterpart of this Amendment Agreement, DCL shall
guarantee the full and punctual payment when due of the Obligations as set
forth in a guarantee issued in favor of Party A in the form attached as Exhibit
A hereto (the “DCL Guarantee”).  The DCL Guarantee shall be a “Credit Support
Document” for purposes of the FSAM Master Agreement, and DCL shall be the “Credit
Support Provider” of Party B thereunder. 
Any 

 

 

references
to Party B’s Credit Support Provider in the FSAM Master Agreement shall
hereafter be deemed to be references to DCL.

 

SECTION 1.2.  Termination
of FSA Policy.  Party A hereby
consents to the cancellation of the Financial Guaranty Insurance Policy of FSA
(Policy No. [        ]) (the “FSA Policy”) with effect from the Amendment
Effective Date, and irrevocably agrees that all of Party A’s rights in respect
of the FSA Policy shall be irrevocably terminated and cancelled, and all of FSA’s
duties and obligations thereunder, whether arising before, on or after the
Amendment Effective Date, shall be deemed fully and finally released and
discharged.  Party A agrees to promptly
surrender the FSA Policy to FSA, and covenants that it shall not submit any
claims thereunder (any such claim being void ab initio).  This Section 1.2 shall survive any
termination of this Amendment Agreement.

 

SECTION 1.3.  Modifications
to FSAM Agreement in respect of FSA.

 

(a)                                  References to the FSA Policy and any “FSA
Event of Default” in the FSAM Master Agreement, or any other Credit Support
Default or Termination Event referencing an event or circumstance with respect
to FSA, shall be deemed deleted.  Any
Events of Default or Termination Events, or limitations on the exercise of
Party A’s rights under the FSAM Master Agreement, in each case, that would be
conditioned on the occurrence or non-occurrence of an FSA Event of Default
shall have no further effect.

 

(b)                                 FSA shall have no further obligations under
or in relation to the FSAM Master Agreement, shall be deemed deleted as a party
to the FSAM Master Agreement, and shall have no further rights to receive
payments under the FSAM Master Agreement (whether directly or by rights of
subrogation, reimbursement or otherwise). 
FSA shall continue to be a third party beneficiary of the FSAM Master
Agreement in relation to (i) any rights to inspect or receive notices and
information in relation to the FSAM Master Agreement and (ii) any rights of
consent to the exercise of, or to exercise directly, the rights of Party B in
relation to the FSAM Master Agreement (as amended by this Amendment Agreement
and subject to (c) below).

 

(c)                                  Any rights of FSAM under the FSAM Master
Agreement which may be or are required to be exercised directly by FSA will be
exercisable directly by DCL, unless and until FSA gives notice to Party A that
a GIC Program Default has occurred. 
Following delivery of such notice, such rights of FSAM under the FSAM
Master Agreement may or shall be exercised by the Collateral Agent under the
Pledge and Administration Agreement. 
Party A may accept without further investigation or inquiry any notice
from FSA that a GIC Program Default has occurred.

 

(d)                                 Any requirements to deliver financial
statements of FSA or its Affiliates previously applicable under Part 3 of the
Schedule shall no longer apply.

 

(e)                                  Party A shall continue to deliver to FSA
copies of notices to Party B, at the address indicated in the FSAM Master
Agreement or such other address as FSA may request from time to time.

 

(f)                                    All notices
delivered by or to Party A from time to time under the FSAM Master Agreement
shall additionally be copied to the following address for DCL:

 

Address:                                               Dexia Crédit Local S.A.

Tour
Dexia La Défense 2

1,
Passerelle des Reflets

TSA
92202

92919
La Défense Cedex

France

 

2

 

Attention:                                         Back-Office
Department

Telephone:                                    + 00 33 1 58 58
68 92

Facsimile:                                         + 00 33 1 58 58
66 20

 

In addition, all notices in respect of Section 5 and Section
6 shall be copied to:

 

Attention : Tax and Legal Director

Telephone:                                    + 00 33 1 58 58
58 70

Facsimile:                                         + 00 33 1 58 58
69 90

 

SECTION 1.4.  Transfers
under the FSAM Credit Support Annex.

 

(a)                                  Each obligation of FSAM to Transfer (i) a
Delivery Amount to Party A from time to time under Paragraph 3(a) of the FSAM
Credit Support Annex, (ii) a Return Amount to Party A from time to time under
Paragraph 3(b) of the FSAM Credit Support Annex (iii) any amount from time to
time under Paragraph 5 of the FSAM Credit Support Annex (a “Disputed Amount”), or (iv) a Transfer under
Paragraph 8(d) of the FSAM Credit Support Annex (a “Final Return Amount”), as applicable, shall be considered to
have been performed by FSAM, and FSAM shall have no responsibility or liability
therefor, to the extent DCL shall have performed its obligations under the DCL
Credit Support Annex in relation to such Delivery Amount, Return Amount,
Disputed Amount or Final Return Amount, as applicable (each a “Guarantor Transfer Amount”).

 

(b)                                 Each obligation of Party A to Transfer (i)
a Delivery Amount to FSAM from time to time under Paragraph 3(a) of the FSAM
Credit Support Annex, (ii) a Return Amount to FSAM from time to time under
Paragraph 3(b) of the FSAM Credit Support Annex (iii) any amount from time to
time under Paragraph 5 of the FSAM Credit Support Annex (a “Disputed Amount”), or (iv) a Final Return
Amount owed by Party A under Paragraph 8(d) of the FSAM Credit Support Annex,
as applicable, shall be made to DCL on behalf of FSAM by Party A, and shall be
considered to have been performed by Party A, and Party A shall have no
responsibility or liability therefor, to the extent Party A shall have made a
Transfer to DCL of such Delivery Amount, Return Amount, Disputed Amount or Final
Return Amount, as applicable.

 

(c)                                  For the avoidance of doubt, the
calculation of the Exposure of FSAM as Secured Party to Party A shall not be
reduced, netted or set off against any Exposure of Party A to DCL under the DCL
Master Agreement.

 

(d)                                 Any rights or obligations of FSAM as
Secured Party under Paragraph 4(d) (Substitutions)
or Paragraph 6 (Holding and Using Posted
Collateral) shall be enforceable by DCL directly and performed
directly on behalf of FSAM by DCL, as applicable.

 

SECTION 1.5.  Modification to Events of Default.

 

(a)                                  The occurrence of a Potential Event of
Default with respect to which DCL is the Defaulting Party under the DCL Master
Agreement shall constitute a Potential Event of Default with respect to which
FSAM would be the Defaulting Party under the FSAM Master Agreement.

 

(b)                                 The occurrence of an Event of Default
with respect to which DCL is the Defaulting Party under the DCL Master
Agreement shall constitute an Event of Default with respect to which FSAM is
the Defaulting Party under the FSAM Master Agreement.

 

3

 

(c)                                  Unless a Potential Event of Default with
respect to which DCL would be the Defaulting Party under the DCL Master
Agreement has occurred and is continuing, no event or circumstance with respect
to FSAM under the FSAM Master Agreement shall constitute a Potential Event of
Default with respect to which Party B would be the Defaulting Party.

 

(d)                                 Unless an Event of Default with respect
to which DCL is the Defaulting Party under the DCL Master Agreement has
occurred and is continuing, no event or circumstance with respect to FSAM under
the FSAM Master Agreement shall constitute an Event of Default with respect to
which Party B is the Defaulting Party.

 

SECTION 1.6.  Payments
by Party B under FSAM Master Agreement. 
All payment obligations of Party B under the FSAM Master Agreement,
including, without limitation, the obligation to pay any Interest Amount on
Posted Collateral, or to pay any amount pursuant to Section 6(d)(ii), shall be
subject to the Priority of Payments set forth in Section 11.1(b) of the Pledge
and Administration Agreement and payment of such amounts by FSAM shall be
further subject to satisfaction of the Subordinated Claims Payment Condition
specified in the Pledge and Administration Agreement.  For the avoidance of doubt, the limitations
set out in the Priority of Payments shall not prejudice Party A’s rights as
against DCL under the DCL Guarantee or the DCL Credit Support Annex as provided
in Section 1.4 above.

 

Upon any request by Party A from time to time, DCL (if
no GIC Program Default has occurred) and FSA (if a GIC Program Default has
occurred) each agree to use commercially reasonable efforts to inform Party A
in accordance with the notice provisions of the FSAM Master Agreement whether
the Subordinated Claims Payment Condition is satisfied.

 

SECTION 1.7.  Transfer.  The FSAM Master Agreement shall be amended to
include the following provisions in Part 5 thereof and shall replace in its
entirety any similar operative provision therein:

 

“Transfer. 
Section 7 of the Agreement shall be replaced with the following:

 

Subject to Section
6(b)(ii), neither this Agreement nor any interest or obligation in or under
this Agreement may be transferred (whether by way of security or otherwise) by
a party without the prior written consent of the other party and DCL (such
consent not to be unreasonably withheld or delayed), except that:

 

(a) If FSA gives
notice to Party A that a GIC Program Default has occurred, Party B may (with
the prior written consent of FSA) and at the direction of FSA shall

 

(I) transfer all
of its rights and obligations under this Agreement to DCL such that FSAM shall
be released from any liability under this Agreement and all Transactions under
this Agreement shall become Transactions subject to the DCL Master Agreement
(such transfer a “DCL Novation”),
without the consent of Party A (provided that no Event of Default with respect
to DCL has occurred and is continuing under the DCL Master Agreement); or

 

(II) transfer all
of its rights and obligations under this Agreement (including each Credit
Support Document) to a Successor Swap Entity, such that FSAM shall be released
from any liability under this Agreement (a “DCL
Guaranteed SPV Novation”), without the consent of Party A;

 

(b) If a GIC
Program Default has occurred and FSA has not exercised either of the rights
under (a)(I) or (II) within 90 days thereof, Party B may, and at the direction
of DCL shall, 

 

4

 

effect a DCL
Novation without the consent of Party A (provided that no Event of Default with
respect to DCL has occurred and is continuing under the DCL Master Agreement);

 

(c) In connection
with any FSAM Refinancing, Party B may, and at the direction of DCL shall,
effect a DCL Guaranteed SPV Novation, without the consent of Party A;

 

(d) Party B may
grant a security interest over all of its right, title and interest in, to and
under, in each case, whether now owned or existing, or hereafter acquired or
arising, this Agreement and each Transaction hereunder (including, without
limitation, its right to payments due to it hereunder or with respect hereto),
to the Collateral Agent (as defined in the Pledge and Administration Agreement)
pursuant to and in accordance with the terms of the Pledge and Administration
Agreement, for the benefit of the persons identified therein.

 

(e) A party may
make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

 

(f) A party may
make such a transfer of all or any part of its interest in any amount payable
to it from a Defaulting Party under Section 6(e), provided that any
transferee of a claim for such amounts payable by FSAM shall expressly
acknowledge in connection with such transfer that such transferee will be
subject to the provisions of Sections 1.6 and 1.9.

 

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

 

“FSAM Refinancing” means completion of the
transactions effected to refinance the intercompany repurchase agreement
financing of FSAM with secured indebtedness issued to one or more third parties
in connection with, and subject to the satisfaction of the conditions for, the
occurrence of a Lien Release Date under the Pledge and Administration Agreement
in accordance with Section 2.6(d) of the Pledge and Administration Agreement.

 

“Successor Swap Entity”
means any of (i) FSA Capital Markets Services LLC, FSA Capital Management
Services LLC or (ii) any special purpose entity or similar bankruptcy-remote
entity that is organized in Party B’s jurisdiction of organization and is
either (x) an Affiliate of DCL or (y) an Affiliate of FSA to which DCL has
given its consent not to be unreasonably withheld, the obligations of which
under the FSAM Master Agreement as transferred are (A) in the case of a DCL
Guaranteed SPV Novation following a GIC Program Default, secured (subject to
the Priority of Payments and satisfaction of the Subordinated Claims Payment
Condition in the Pledge and Administration Agreement) under the Pledge and
Administration Agreement by the FSAM Collateral and/or the proceeds thereof
following an exercise of creditor’s remedies in relation thereto as a result of
the relevant GIC Program Default and (B) in the case of a DCL Guaranteed SPV
Novation occurring in connection with an FSAM Refinancing, secured by the same
assets of FSAM which secure the third party indebtedness issued in connection
with such FSAM Refinancing.  In the case
of a DCL Guaranteed SPV Novation arising under Section 7(a)(II), the Successor
Swap Entity shall be identified by FSA, and in the case of a DCL Guaranteed SPV
Novation arising under Section 7(b), the Successor Swap Entity shall be
identified by DCL.”

 

SECTION 1.8  DCL Subrogation and Termination Claims.

 

(a)                                  Subject to and conditioned upon payment
of any amount owed under this Agreement by or on behalf of DCL and subject to
DCL having performed all its obligations under the DCL Guarantee 

 

5

 

which have become due and
payable prior to such date, Party A shall assign to DCL all rights to the
payment of amounts owed to it under this Agreement (other than any amounts owed
to Party A pursuant to the DCL Guarantee) to the extent of all payments made by
DCL and, subject to the Priority of Payments set forth in Section 11.1(b) of
the Pledge and Administration Agreement and satisfaction of the Subordinated
Claims Payment Condition, DCL may exercise any right, power or the like of
Party A with respect thereto.  Party A
and Party B agree that without the need for any further action on the part of
DCL, DCL shall be fully subrogated to all of the rights to payment of Party A
(other than any amounts owed to Party A pursuant to the DCL Agreement) or in
relation thereto to the extent that payments are made under the DCL Guarantee
by or on behalf of DCL; provided that DCL’s right of recovery from Party
B shall be subject to the Priority of Payments set forth in Section 11.1(b) of
the Pledge and Administration Agreement and to satisfaction of the Subordinated
Claims Payment Condition.

 

(b)                                 If FSA or DCL, as applicable, exercises
its right to cause Party B to effect a DCL Novation, then in consideration for
such DCL Novation, FSA shall in relation to each Transaction under the FSAM
Master Agreement specify either that (x) DCL shall have a claim against FSAM
for the greater of (I) zero and (II) the termination value of such Transaction
in favor of DCL determined as if DCL were Party A under the FSAM Master
Agreement, an Additional Termination Event had occurred in relation to which
Party B was the Affected Party and such Transaction was an Affected
Transaction, and an Early Termination Date were designated in relation to such
Transaction on the date the DCL Novation is effected (and for the avoidance of
doubt DCL’s right of recovery from FSAM for such claim shall be subject to the
Priority of Payments set forth in Section 11.1(b) of the Pledge and
Administration Agreement and to the Subordinated Claims Payment Condition) or (y)
DCL shall be deemed to have entered into an Offsetting Transaction with a
Successor Swap Entity.  If FSA fails to
make such election and specify the application of (x) or (y) within 30 days
after the DCL Novation, then clause (x) will be deemed to apply.  For purposes hereof, “Offsetting Transaction” means in relation
to any Transaction under the FSAM Master Agreement outstanding at the time of a
DCL Novation, a corresponding transaction between DCL and a Successor Swap
Entity, having substantially identical terms to such Transaction, with DCL in
the position of Party A and the Successor Swap Entity in the position of Party
B, where the obligations of the Successor Swap Entity and DCL shall be subject
to the terms of the ISDA Master Agreement between DCL and FSAM on the date of
such DCL Novation, including without limitation the Nonpetition and Limited
Recourse provisions set forth in Section 1.9 below.

 

SECTION 1.9.  Non-Petition;
Limited Recourse.  The FSAM Master
Agreement shall be amended to include the following provisions in Part 5
thereof and shall replace in its entirety any similar operative provision
therein:

 

“Non-Petition.  Party A agrees that it will not, prior to the date
that is six months (or such longer preference period as may be in effect at
such time) after the GIC Contracts (as defined in the Pledge and Administration
Agreement) have been paid in full, acquiesce, petition or otherwise institute
against, or join any other person in instituting against, Party B, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any federal or state bankruptcy, or similar law,
including without limitations proceedings seeking to appoint a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar
official of Party B or any substantial part of its property; provided
that this provision shall not restrict or prohibit Party A 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.  This provision shall be without any prejudice
to any rights of Party A with respect to the DCL Guarantee.”

 

“Limited
Recourse.  The obligations of
Party B in relation to this Agreement and any Transaction hereunder are limited
recourse obligations, payable solely from the proceeds of the 

 

6

 

FSAM Collateral (as defined in the Pledge and
Administration Agreement) available under and applied in accordance with the
Priority of Payments set forth in Section 11.1(b) of the Pledge and
Administration Agreement.  Upon
application of the FSAM Collateral and proceeds thereof available to satisfy
the obligations of Party B hereunder in accordance with the Pledge and
Administration Agreement, Party A shall not be entitled to take any further
steps against Party B to recover any sums due and shall not constitute a claim
against Party B to the extent of any insufficiency.  No recourse shall be had for the payment of
any amounts owing in respect of this Agreement against any officer, director,
employee, stockholder or incorporator of Party B.  This provision (x) shall be without any
prejudice to any rights of Party A with respect to the DCL Guarantee and (y) shall
survive the termination of this Agreement for any reason.”

 

SECTION 1.10.  Definitions.  The FSAM Master Agreement shall be amended to
include the following definitions:

 

“GIC Program Default”
means a “Dexia Event of Default” as defined in the Pledge and Administration
Agreement.

 

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

 

SECTION 1.11.  No FSAM-DCL Setoff.  Notwithstanding any rights of Party A under
the DCL Master Agreement or DCL Credit Support Annex, no payment obligations
owed or other amounts due by Party A to FSAM under the FSAM Master Agreement
(whether matured or unmatured, whether or not contingent and irrespective of
the currency, place of payment or booking office of the sum or obligation) may
be reduced by or setoff or counterclaim against any payment obligations owed or
other amounts due (whether or not arising under the FSAM Master Agreement,
whether matured or unmatured, whether or not contingent and irrespective of the
currency, place of payment or booking office of the sum or obligation) by DCL
or its Affiliates to Party A or its Affiliates.

 

For the avoidance of
doubt, the foregoing shall not restrict any rights of setoff applicable in
relation to the DCL Master Agreement.

 

SECTION 1.12.  Payment Netting.   If not previously applicable, Section 2(c)(ii)
shall hereafter be applicable.

 

SECTION 1.13.  Change in Control Events.   In the event that the FSAM Master Agreement
or any Transaction thereunder is subject to a provision specifying that an
Additional Termination Event shall occur if FSAM is no longer an Affiliate of
or otherwise controlled by Financial Security Assurance Holdings Ltd., such
Additional Termination Event shall no longer be applicable or be of any force
or effect.

 

SECTION 1.14.  Amendment Consents.  No further amendment, waiver or modification
of the FSAM Master Agreement shall be effective without the prior written
consent of each of DCL and FSA.

 

7

 

ARTICLE II

AMENDMENT TO DCL MASTER AGREEMENT

 

SECTION 2.1. 
DCL Credit Support Annex.

 

Each Guarantor Transfer Amount arising from the FSAM
Credit Support Annex on any date shall be considered to constitute an
Independent Amount (in addition to any Independent Amount otherwise applicable
on any date) with respect to DCL under the DCL Credit Support Annex.

 

SECTION 2.2. 
DCL Novation.

 

Upon a DCL Novation, each outstanding Transaction
under the FSAM Master Agreement shall become a Transaction subject to the DCL
Master Agreement.

 

ARTICLE III

REPRESENTATIONS

 

SECTION 3.1.  Representations.

 

(a)                                  Party A repeats and remakes as of the
date hereof the representations of Party A set forth in Section 3 of the
FSAM Master Agreement with respect to the FSAM Master Agreement and its
obligations thereunder as representations with respect to this Amendment
Agreement and its obligations hereunder and the FSAM Master Agreement as
amended hereby.

 

(b)                                 FSAM repeats and remakes as of the date
hereof the representations of FSAM set forth in Section 3 of the FSAM
Master Agreement with respect to the FSAM Master Agreement and FSAM’s
obligations thereunder as representations with respect to this Amendment
Agreement and its obligations hereunder and the FSAM Master Agreement as amended
hereby (including the DCL Guarantee as a Credit Support Document).

 

(c)                                  DCL makes as of the date hereof the
representations set forth in Section 3 of the FSAM Master Agreement with
respect to itself, this Amendment Agreement and its obligations hereunder and
the FSAM Master Agreement as amended hereby (including the DCL Guarantee as a
Credit Support Document).

 

ARTICLE IV

MISCELLANEOUS

 

SECTION 4.1  Capitalized Terms.  Capitalized terms used and not otherwise
defined herein shall have the meanings assigned to such terms in the FSAM
Master Agreement and the DCL Master Agreement. 
Where capitalized terms are used in the context of provisions set out in
or relating to the FSAM Master Agreement or the DCL Master Agreement, such
terms shall have the meanings assigned to them in the relevant Master Agreement
to which they relate.

 

SECTION 4.2  Entire Agreement; References to Master
Agreements.  This Amendment Agreement
constitutes the entire agreement and understanding of the parties with respect
to its subject matter and supersedes all oral communication and prior writings
with respect specifically thereto. 
Except as expressly amended herein, all of the provisions of the FSAM
Master Agreement or DCL Master Agreement and each Transaction thereunder, as
applicable, shall remain in full force and effect, and all references to the
FSAM Master Agreement or DCL Master Agreement, as applicable, in the FSAM
Master Agreement, DCL Master Agreement or any other document or instrument
entered into in connection therewith shall be deemed to be references to the
FSAM Master Agreement or DCL Master Agreement as amended hereby.

 

8

 

SECTION 4.3  Non-Reliance.  Each
party represents to each other party that, in connection with entering into
this Amendment Agreement, (i) neither the other party nor any of its
affiliates or agents are acting as a fiduciary for it and (ii) it has
consulted with its own legal, regulatory, tax, business, investment, financial,
and accounting advisors to the extent that it has deemed necessary, and has
made its own decisions based upon its own judgments and upon any advice from
such advisors as it has deemed necessary and not upon any view expressed by the
other party or any of its affiliates or agents.

 

SECTION 4.4  Counterparts.  This Amendment Agreement may be executed in
counterparts by the parties hereto, each of which counterparts when executed
and delivered shall be an original, but all of which together shall constitute
one and the same instrument.

 

SECTION 4.5  Governing Law.  This Amendment Agreement will be governed by
and construed in accordance with the laws of the State of New York, including Section 5-1401
of the General Obligations Law of New York, but otherwise without regard to
conflicts of laws principles.

 

SECTION 4.6.  Effectiveness.  This Amendment Agreement and the termination
of the FSA Policy contemplated hereby will become effective upon (i) delivery
to FSAM (with a copy to FSA) of an executed Guarantee, as contemplated by Section 1.1
of this Amendment Agreement, (ii) surrender of the FSA Policy terminated
pursuant to Section 1.2 to FSA, and (iii) DCL’s confirmation to Party
A that the Closing Date as defined in the Pledge and Administration Agreement
has occurred (the date of such confirmation the “Amendment Effective Date”).

 

9

 

In Witness
Whereof, the undersigned has executed this Amendment Agreement as of the date
first above written.

 

 

	
  [COUNTERPARTY]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FSA ASSET MANAGEMENT LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DEXIA CRÉDIT LOCAL S.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FINANCIAL SECURITY ASSURANCE
  INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

10

 

Exhibit A

 

FORM OF GUARANTEE

 

GUARANTEE, dated as of
[      ], 2009, of DEXIA CRÉDIT LOCAL S.A. (the “Guarantor”), in favor of [Swap
Counterparty] (the “Beneficiary”).

 

1.                                       Guarantee. 
In order to induce the Beneficiary to enter into the Amendment Agreement,
dated [      ], 2009 (the “Amendment Agreement”), among the
Beneficiary, the Guarantor, FSA Asset Management LLC (“Primary Obligor”) and Financial Security
Assurance Inc. (“FSA”), pursuant
to the [identify relevant agreement]
(as the same may be amended, modified or supplemented from time to time) (the “Master Agreement”) between the Beneficiary,
the Primary Obligor and FSA, from and after the date hereof the Guarantor
irrevocably, absolutely and unconditionally guarantees to the Beneficiary, its
successors and permitted assigns, as primary obligor and not as a surety, and
the Guarantor undertakes and agrees to pay and discharge when and where due
(whether at the scheduled payment dates, upon maturity, upon early termination
or acceleration or otherwise), all payment or delivery obligations of the
Primary Obligor to the Beneficiary arising out of or in connection with the
Master Agreement or any Transaction thereunder (the “Obligations”).  The
Guarantor agrees to make any payment or perform any obligation due by the
Primary Obligor under the Master Agreement on or before the time such payment
or performance would be due by the Primary Obligor under the Master Agreement,
to the extent such payment is not made or will be unable to be made, or such
obligation is not performed or will be unable to be performed, as applicable,
by the Primary Obligor.  Any capitalized
term used and not otherwise defined herein shall have the meaning assigned to
it in the Master Agreement.

 

2.                                       Successor Swap Entity. 
In the event that Obligations are assigned and transferred to a
Successor Swap Entity as contemplated by the Amendment Agreement, this
Guarantee shall apply to the obligations of the Successor Swap Entity to the
Beneficiary and the Successor Swap Entity shall be considered the Primary
Obligor hereunder for all purposes.

 

3.                                       Nature of Guarantee. 
This Guarantee is a guarantee of payment and performance and not of
collection.  The Beneficiary shall not be
obligated, as a condition precedent to performance by the Guarantor hereunder,
to file any claim relating to the Obligations in the event that the Primary
Obligor becomes subject to a bankruptcy, reorganization or similar proceeding,
and the failure of the Beneficiary to file a claim shall not affect the
Guarantor’s obligations hereunder.  This
Guarantee is a continuing guarantee and shall continue to be effective or be
reinstated if any payment or delivery to the Beneficiary by the Primary Obligor
on account of any Obligation is returned to the Primary Obligor or is rescinded
upon the occurrence of any circumstance, including, but not limited to, the
insolvency, bankruptcy or reorganization of the Primary Obligor.

 

4.                                       Waivers. 
The Guarantor hereby irrevocably waives for the benefit of the
Beneficiary any defenses the Guarantor may now or hereafter have arising from (i) the
failure of any of the representations of the Primary Obligor set forth in Section 3(a) of
the Master Agreement to be true and correct; (ii) any indulgence,
concession, waiver or consent given to the Primary Obligor; (iii) any
taking, exchange, release, amendment, non-perfection, realization or
application of or on any security for or guarantee of the Primary Obligor’s
performance of the Master Agreement; (iv) any defect as to the valid
creation or existence of the Primary Obligor or any change, restructuring, or
termination in or of the corporate structure or existence of the Primary
Obligor; (v) any other rights (whether by counterclaim, setoff, recoupment
or otherwise) or defenses (including without limitation the defense of fraud or
fraud in the inducement), whether acquired by subrogation, assignment or
otherwise, to the extent that such rights and defenses may be available to the
Guarantor to avoid payment of its obligations under this Guaranty in accordance
with the express provisions of this Guaranty or might otherwise constitute a
legal or equitable 

 

 

discharge or defense of a
surety or guarantor, other than (a) a defense based on prior payment or
performance of the Obligations in full or (b) a defense based on the
failure of a condition precedent set forth in Section 2(a)(iii) of
the Master Agreement to be satisfied in relation to the Obligations.

 

The Beneficiary may at
all times agree to amend or modify any obligations of the Primary Obligor under
the Master Agreement in accordance with the terms thereof; grant any time or
indulgence; abstain from perfecting or enforcing any security or right which
the Beneficiary may now or hereafter have from or against the Primary Obligor;
and waive any provision of the Master Agreement in accordance with the terms
thereof, without prejudice to this Guarantee and without discharging or in any
way affecting the Guarantor’s liability hereunder.  Without limitation of the foregoing, the
obligations of the Guarantor hereunder shall not be discharged or impaired or
otherwise affected by the failure of the Beneficiary to assert any claim or
demand or to enforce any remedy under the Master Agreement, any guarantee or
any other agreement or instrument, by any such amendment, waiver or
modification of any provision of the Master Agreement or any other agreement or
instrument, or by any default, failure or delay, willful or otherwise, of the
Primary Obligor in the performance of the Obligations, or by any other act, omission
or delay to do any other act that may or might in any manner or to any extent
vary the risk of the Guarantor.

 

The liability of the
Guarantor is not affected by liquidation (which includes without limitation
official management, compromise, arrangement, merger, amalgamation,
reconstruction, winding-up and dissolution, assignment for the benefit of
creditors, bankruptcy or any similar procedure) of the Primary Obligor, merger
or consolidation or the Primary Obligor with another entity or the Primary Obligor
dissolving or ceasing to have legal existence for any other reason.

 

No notice to the
Guarantor shall be required with respect to entering into new Transactions
under the Master Agreement subsequent to the date hereof, and this Guarantee
shall remain in full force and effect irrespective of the term or amount of
obligations of the Primary Obligor in relation to the Master Agreement.

 

5.                                       Termination.  This Guarantee is a continuing guarantee and
shall remain in full force and effect until all amounts payable or deliverable
by the Primary Obligor under the Master Agreement have been paid or delivered
in full and the Transactions thereunder have been terminated, provided
that this Guarantee will be reinstated if any payment or delivery to the
Beneficiary by the Primary Obligor on account of any Primary Obligation is
returned to the Primary Obligor, is rescinded upon the occurrence of any
circumstance, including, but not limited to, the insolvency, bankruptcy or
reorganization of the Primary Obligor, or otherwise becomes the subject of any
claim that could result in the return or disgorgement of such payment or
delivery.

 

6.                                       Notices. 
Any notice or communication required or permitted to be made hereunder
shall be made in the same manner and with the same effect, unless otherwise
specifically provided herein, as set forth in the Master Agreement.

 

Address for notices or communications to the
Beneficiary:

 

Address:                                       [      ]

 

With a copy to: [      ]

 

Address for notices or communications to the
Guarantor:

 

2

 

Address:                                               Dexia Crédit Local S.A.

Tour
Dexia La Défense 2

1,
Passerelle des Reflets

TSA
92202

92919
La Défense Cedex

France

 

Deduction or Withholding for Tax.

 

A.                                   All payments under this Guarantee will be
made without any deduction or withholding for or on account of any Tax unless
such deduction or withholding is required by any applicable law, as modified by
the practice of any relevant governmental revenue authority, then in effect.  If the Guarantor is so required to deduct or
withhold, then the Guarantor will

 

(i)                                     promptly notify the Beneficiary of such
requirement;

 

(ii)                                  pay to the relevant authorities the full
amount required to be deducted or withheld (including the full amount required
to be deducted or withheld from any additional amount paid by the Guarantor to
the Beneficiary under this Section 7 promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice
that such amount has been assessed against the Beneficiary;

 

(iii)                               promptly forward to the Beneficiary an
official receipt (or a certified copy), or other documentation reasonably
acceptable to the Beneficiary, evidencing such payment to such authorities; and

 

(iv)                              if such Tax is an Indemnifiable Tax, pay
to the Beneficiary, in addition to the payment to which the Beneficiary is
otherwise entitled under this Guarantee, such additional amount as is necessary
to ensure that the net amount actually received by the Beneficiary (free and
clear of Indemnifiable Taxes, whether assessed against the Guarantor or the
Beneficiary) will equal the full amount the Beneficiary would have received had
no such deduction or withholding been required. 
However, the Guarantor will not be required to pay any additional amount
to the Beneficiary to the extent that it would not be required to be paid but
for:

 

(X)                               the failure by the Beneficiary to comply
with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d) of the Master Agreement; or

 

(Y)                                the failure of a representation made by
the Beneficiary pursuant to Section 3(f) of the Master Agreement to
be accurate and true unless such failure would not have occurred but for (I) any
action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into under
the Master Agreement (regardless of whether such action is taken or brought
with respect to a party to the Master Agreement) or (II) a Change in Tax
Law as defined in the Master Agreement.

 

B.                                     If

 

(i)                                     The Guarantor is required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, to make any deduction or withholding in respect of which the
Guarantor would not be required to pay an additional amount to the Beneficiary
under Section 7(A)(iv);

 

3

 

(ii)                                  the Guarantor does not so deduct or
withhold; and

 

(iii)                               a liability resulting from such Tax is
assessed directly against the Guarantor, then, except to the extent the
Beneficiary has satisfied or then satisfies the liability resulting from such
Tax, the Beneficiary will promptly pay to the Guarantor the amount of such
liability (including any related liability for interest, but including any
related liability for penalties only if the Beneficiary has failed to comply
with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d)) of the Master Agreement.

 

8.                                      Amendment; Assignment. 
This Guarantee shall not be amended, supplemented or otherwise modified
except by a writing signed by both the Guarantor and the Beneficiary.  The Guarantor may not assign its rights nor
delegate its obligations under this Guaranty, in whole or in part, without
prior written consent of the Beneficiary,
and any purported assignment or delegation absent such consent is void, except
for an assignment and delegation of all of the Guarantor’s rights and
obligations hereunder in whatever form the Guarantor determines may be
appropriate to a partnership, corporation, trust or other organization in
whatever form that succeeds to all or substantially all of the Guarantor’s
assets and business and that assumes such obligations by contract, operation of
law or otherwise.  Upon any such
delegation and assumption of obligations, the Guarantor shall be relieved of
and fully discharged from all obligations hereunder, whether such obligations
arose before or after such delegation and assumption.

 

9.                                       Governing Law; Jurisdiction. 
This Guarantee shall be governed by and construed in accordance with the
laws of the State of New York. The Guarantor hereby irrevocably consents to,
for the purposes of any proceeding arising out of this Guarantee, the exclusive
jurisdiction of the courts of the State of New York and the United States District
Court located in the borough of Manhattan in New York City, and to the courts
of its own corporate domicile, in respect of actions brought against it as a
defendant.  The Guarantor also waives any
objection to the laying of venue in, and any claim of inconvenient forum with
respect to these courts.

 

10.                                 Waiver of Immunity and Other
Waivers.  To the extent that the Guarantor has or
hereafter may acquire any immunity from jurisdiction of any court or from any
legal process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to the
Guarantor or the Guarantor’s property, the Guarantor hereby irrevocably waives
such immunity in respect of the Guarantor’s obligations under this Guarantee.  The Guarantor hereby irrevocably waives any
right to which it may be entitled on account of place of residence or domicile.

 

11.                                 Waiver of Jury Trial.  The
Guarantor here by irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Guarantee or the negotiation, administration
or enforcement hereof.

 

12.                                 Miscellaneous. 
Each reference herein to the Guarantor, the Beneficiary or the Primary
Obligor shall be deemed to include their respective successors and
assigns.  The provisions hereof shall
inure in favor of each such successor or assign, including any Successor Swap
Entity to which the Master Agreement has been transferred.  This Guarantee shall supersede any prior or
contemporaneous representations, statements or agreements, oral or written,
made by or between the parties with regard to the subject matter hereof.

 

4

 

In
Witness Whereof, the undersigned has executed this Guarantee as of the date
first above written.

 

 

	
   

  	
  DEXIA CRÉDIT LOCAL S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

5Exhibit 10.4.1

 

(Multicurrency—Cross Border)

 

ISDAÒ

International Swap Dealers Association, Inc.

 

MASTER AGREEMENT

 

dated as of June 30, 2009

 

	
  DEXIA SA and DEXIA CRÉDIT
  LOCAL 

  S.A., jointly and severally;

  	
   

  	
  and

  	
   

  	
  FSA ASSET
  MANAGEMENT LLC

  

 

have entered and/or anticipate
entering into one or more transactions (each a “Transaction”) that are or will be
governed by this Master Agreement, which includes the schedule (the “Schedule”),
and the documents and other confirming evidence (each a “Confirmation”)
exchanged between the parties confirming those Transactions.

 

Accordingly, the parties agree as
follows:—

 

1.                                      Interpretation

 

(a)                                  Definitions. The terms defined in Section 14 and in the
Schedule will have the meanings therein specified for the purpose of this Master
Agreement.

 

(b)                                 Inconsistency. In the event of any inconsistency between the
provisions of the Schedule and the other provisions of this Master Agreement,
the Schedule will prevail.  In the event
of any inconsistency between the provisions of any Confirmation and this Master
Agreement (including the Schedule), such Confirmation will prevail for the
purpose of the relevant Transaction.

 

(c)                                  Single Agreement. All Transactions are entered into in reliance on the
fact that this Master Agreement and all Confirmations form a single agreement
between the parties (collectively referred to as this “Agreement”), and the
parties would not otherwise enter into any Transactions.

 

2.                                      Obligations

 

(a)                                  General Conditions.

 

(i)             Each party will make
each payment or delivery specified in each Confirmation to be made by it,
subject to the other provisions of this Agreement.

 

(ii)          Payments under this Agreement will
be made on the due date for value on that date in the place of the account
specified in the relevant Confirmation or otherwise pursuant to this Agreement,
in freely transferable funds and in the manner customary for payments in the
required currency. Where settlement is by delivery (that is, other than by
payment), such delivery will be made for receipt on the due date in the manner
customary for the relevant obligation unless otherwise specified in the relevant
Confirmation or elsewhere in this Agreement.

 

(iii)        Each obligation of each party under
Section 2(a)(i) is subject to (1) the condition precedent that
no Event of Default or Potential Event of Default with respect to the other
party has occurred and is continuing, (2) the condition precedent that no
Early Termination Date in respect of the relevant Transaction has occurred or
been effectively designated and (3) each other applicable condition
precedent specified in this Agreement.

 

Copyright © 1992 by International
Swap Dealers Association, Inc.

 

 

(b)                                 Change of Account. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

 

(c)                                  Netting. If on any date amounts would otherwise be payable:—

 

(i)              in the same currency; and

 

(ii)           in respect of the same Transaction,

 

by each party to the other, then, on such date, each
party’s obligation to make payment of any such amount will be automatically
satisfied and discharged and, if the aggregate amount that would otherwise have
been payable by one party exceeds the aggregate amount that would otherwise
have been payable by the other party, replaced by an obligation upon the party
by whom the larger aggregate amount would have been payable to pay to the other
party the excess of the larger aggregate amount over the smaller aggregate
amount.

 

The parties may elect in respect of two or more
Transactions that a net amount will be determined in respect of all amounts
payable on the same date in the same currency in respect of such Transactions,
regardless of whether such amounts are payable in respect of the same
Transaction. The election may be made in the Schedule or a Confirmation by
specifying that subparagraph (ii) above will not apply to the Transactions
identified as being subject to the election, together with the starting date
(in which case subparagraph (ii) above will not, or will cease to, apply to
such Transactions from such date). This election may be made separately for
different groups of Transactions and will apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

 

(d)                                 Deduction or Withholding
for Tax.

 

(i)              Gross-Up. All payments under
this Agreement will be made without any deduction or withholding for or on
account of any Tax unless such deduction or withholding is required by any applicable
law, as modified by the practice of any relevant governmental revenue
authority, then in effect. If a party is so required to deduct or withhold,
then that party (“X”) will:—

 

(1)     promptly notify the
other party (“Y”) of such requirement;

 

(2)     pay to the relevant
authorities the full amount required to be deducted or withheld (including the
full amount required to be deducted or withheld from any additional amount paid
by X to Y under this Section 2(d)) promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice
that such amount has been assessed against Y;

 

(3)     promptly forward to Y
an official receipt (or a certified copy), or other documentation reasonably
acceptable to Y, evidencing such payment to such authorities; and

 

(4)     if such Tax is an
Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise
entitled under this Agreement, such additional amount as is necessary to ensure
that the net amount actually received by Y (free and
clear of Indemnifiable Taxes, whether assessed against X or Y)
will equal the full amount Y would have received had no such deduction or withholding
been required. However, X will not be required to pay any additional amount to Y
to the extent that it would not be required to be paid but for:—

 

(A)          the failure by Y to
comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d); or

 

(B)            the failure of a
representation made by Y pursuant to Section 3(f) to be accurate and true
unless such failure would not have occurred but for (I) any action taken
by a taxing authority, or brought in a court of competent jurisdiction, on or
after the date on which a Transaction is entered into (regardless of whether
such action is taken or brought with respect to a party to this Agreement) or (II) a
Change in Tax Law.

 

2

 

(ii)          Liability. If:—

 

(1)                   X is required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, to make any deduction or withholding in respect of which X would
not be required to pay an additional amount to Y under Section 2(d)(i)(4);

 

(2)                   X does not so deduct
or withhold; and

 

(3)                   a liability resulting
from such Tax is assessed directly against X,

 

then, except to the extent Y has
satisfied or then satisfies the liability resulting from such Tax, Y will
promptly pay to X the amount of such liability (including any related liability
for interest, but including any related liability for penalties only if Y has
failed to comply with or perform any agreement contained in Section 4(a)(i),
4(a)(iii) or 4(d)).

 

(e)                                  Default Interest; Other
Amounts.
Prior to the occurrence or effective designation of an Early Termination Date
in respect of the relevant Transaction, a party that defaults in the
performance of any payment obligation will, to the extent permitted by law and
subject to Section 6(c), be required to pay interest (before as well as
after judgment) on the overdue amount to the other party on demand in the same
currency as such overdue amount, for the period from (and including) the
original due date for payment to (but excluding) the date of actual payment, at
the Default Rate. Such interest will be calculated on the basis of daily
compounding and the actual number of days elapsed. If, prior to the occurrence
or effective designation of an Early Termination Date in respect of the
relevant Transaction, a party defaults in the performance of any obligation
required to be settled by delivery, it will compensate the other party on
demand if and to the extent provided for in the relevant Confirmation or
elsewhere in this Agreement.

 

3.                                      Representations

 

Each party represents to the other party (which
representations will be deemed to be repeated by each party on each date on
which a Transaction is entered into and, in the case of the representations in Section 3(f),
at all times until the termination of this Agreement) that:—

 

(a)                                  Basic Representations.

 

(i)                  Status. It is duly organised
and validly existing under the laws of the jurisdiction of its organisation or
incorporation and, if relevant under such laws, in good standing;

 

(ii)               Powers. It has the power to
execute this Agreement and any other documentation relating to this Agreement
to which it is a party, to deliver this Agreement and any other documentation
relating to this Agreement that it is required by this Agreement to deliver and
to perform its obligations under this Agreement and any obligations it has
under any Credit Support Document to which it is a party and has taken all
necessary action to authorise such execution, delivery and performance;

 

(iii)            No Violation or Conflict. Such execution,
delivery and performance do not violate or conflict with any law applicable to
it, any provision of its constitutional documents, any order or judgment of any
court or other agency of government applicable to it or any of its assets or
any contractual restriction binding on or affecting it or any of its assets;

 

(iv)           Consents. All governmental and
other consents that are required to have been obtained by it with respect to
this Agreement or any Credit Support Document to which it is a party have been obtained
and are in full force and effect and all conditions of any such consents have
been complied with; and

 

(v)              Obligations Binding.  Its obligations under
this Agreement and any Credit Support Document to which it is a party constitute
its legal, valid and binding obligations, enforceable in accordance  with their respective terms (subject to
applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws
affecting creditors’ rights generally and subject, as to enforceability, to equitable
principles of general application (regardless of whether enforcement is sought
in a proceeding in equity or at law)).

 

3

 

(b)                                 Absence of Certain Events. No Event of Default or Potential Event
of Default or, to its knowledge, Termination Event with respect to it has
occurred and is continuing and no such event or circumstance would occur as a
result of its entering into or performing its obligations under this Agreement
or any Credit Support Document to which it is a party.

 

(c)                                  Absence of Litigation. There is not pending or, to its knowledge, threatened
against it or any of its Affiliates any action, suit or proceeding at law or in
equity or before any court, tribunal, governmental body, agency or official or
any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

 

(d)                                 Accuracy of Specified
Information. All
applicable information that is furnished in writing by or on behalf of it to
the other party and is identified for the purpose of this Section 3(d) in
the Schedule is, as of the date of the information, true, accurate and complete
in every material respect.

 

(e)                                  Payer Tax Representation. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(e) is accurate and
true.

 

(f)                                    Payee Tax Representations. Each representation specified in the Schedule as
being made by it for the purpose of this Section 3(f) is accurate and
true.

 

4.                                      Agreements

 

Each party agrees with the other that, so long as
either party has or may have any obligation under this Agreement or under any
Credit Support Document to which it is a party:—

 

(a)                                  Furnish Specified
Information.
It will deliver to the other party or, in certain cases under subparagraph (iii) below,
to such government or taxing authority as the other party reasonably directs:—

 

(i)                  any forms, documents or
certificates relating to taxation specified in the Schedule or any Confirmation;

 

(ii)               any other documents specified in
the Schedule or any Confirmation; and

 

(iii)            upon reasonable demand by such
other party, any form or document that may be required or reasonably requested
in writing in order to allow such other party or its Credit Support Provider to
make a payment under this Agreement or any applicable Credit Support Document
without any deduction or withholding for or on account of any Tax or with such
deduction or withholding at a reduced rate (so long as the completion,
execution or submission of such form or document would not materially prejudice
the legal or commercial position of the party in receipt of such demand), with
any such form or document to be accurate and completed in a manner reasonably
satisfactory to such other party and to be executed and to be delivered with
any reasonably required certification,

 

in each case by the date specified in the Schedule or
such Confirmation or, if none is specified, as soon as reasonably practicable.

 

(b)                                 Maintain Authorisations.  It will
use all reasonable efforts to maintain in full force and effect all consents of
any governmental or other authority that are required to be obtained by it with
respect to this Agreement or any Credit Support Document to which it is a party
and will use all reasonable efforts to obtain any that may become necessary in
the future.

 

(c)                                  Comply with Laws. It will comply in all material respects
with all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

 

(d)                                 Tax Agreement. It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true
promptly upon learning of such failure.

 

(e)                                  Payment of Stamp Tax. Subject to Section 11, it will pay
any Stamp Tax levied or imposed upon it or in respect of its execution or
performance of this Agreement by a jurisdiction in which it is incorporated, organised,
managed and controlled, or considered to have its seat, or in which a branch or
office through 

 

4

 

which it is acting for the purpose of this Agreement
is located (“Stamp Tax Jurisdiction”) and will indemnify the other party
against any Stamp Tax levied or imposed upon the other party or in respect of
the other party’s execution or performance of this Agreement by any such Stamp
Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the
other party.

 

5.                                      Events of Default and
Termination Events

 

(a)                                  Events of Default. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified
Entity of such party of any of the following events constitutes an event of
default (an “Event of Default”) with respect to such party:—

 

(i)             Failure
to Pay or Deliver. Failure by the party
to make, when due, any payment under this Agreement or delivery under Section 2(a)(i) or
2(e) required to be made by it if such failure is not remedied on or
before the third Local Business Day after notice of such failure is given to
the party;

 

(ii)          Breach
of Agreement. Failure by the party to comply with
or perform any agreement or obligation (other than an obligation to make any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or
to give notice of a Termination Event or any agreement or obligation under Section 4(a)(i),
4(a)(iii) or 4(d)) to be complied with or performed by the party in
accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

 

(iii)       Credit
Support Default.

 

(1)                   Failure by the party
or any Credit Support Provider of such party to comply with or perform any
agreement or obligation to be complied with or performed by it in accordance with
any Credit Support Document if such failure is continuing after any applicable
grace period has elapsed;

 

(2)                   the expiration or
termination of such Credit Support Document or the failing or ceasing of such
Credit Support Document to be in full force and effect for the purpose of this
Agreement (in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to which
such Credit Support Document relates without the written consent of the other
party; or

 

(3)                   the party or such
Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole
or in part, or challenges the validity of, such Credit Support Document;

 

(iv)           Misrepresentation. A representation
(other than a representation under Section 3(e) or (f)) made or
repeated or deemed to have been made or repeated by the party or any Credit
Support Provider of such party in this Agreement or any Credit Support Document
proves to have been incorrect or misleading in any material respect when made
or repeated or deemed to have been made or repeated;

 

(v)              Default under Specified
Transaction.  The party, any
Credit Support Provider of such party or any applicable Specified Entity of
such party (1) defaults under a Specified Transaction and, after giving
effect to any applicable notice requirement or grace period, there occurs a
liquidation of, an acceleration of obligations under, or an early termination
of, that Specified Transaction, (2) defaults, after giving effect to any
applicable notice requirement or grace period, in making any payment or delivery
due on the last payment, delivery or exchange date of, or any payment on early
termination of, a Specified Transaction (or such default continues for at least
three Local Business Days if there is no applicable notice requirement or grace
period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or
in part, a Specified Transaction (or such action is taken by any person or
entity appointed or empowered to operate it or act on its behalf);

 

(vi)           Cross Default.  If “Cross Default” is specified in
the Schedule as applying to the party, the occurrence or existence of (1) a
default, event of default or other similar condition or event (however

 

5

 

described) in respect of such
party, any Credit Support Provider of such party or any applicable Specified
Entity of such party under one or more agreements or instruments relating to
Specified Indebtedness of any of them (individually or collectively) in an
aggregate amount of not less than the applicable Threshold Amount (as specified
in the Schedule) which has resulted in such Specified Indebtedness becoming, or
becoming capable at such time of being declared, due and payable under such
agreements or instruments, before it would otherwise have been due and payable
or (2) a default by such party, such Credit Support Provider or such
Specified Entity (individually or collectively) in making one or more payments
on the due date thereof in an aggregate amount of not less than the applicable
Threshold Amount under such agreements or instruments (after giving effect to
any applicable notice requirement or grace period);

 

(vii)   Bankruptcy. The party, any Credit
Support Provider of such party or any applicable Specified Entity of such
party:—

 

(1) is dissolved (other than pursuant to a
consolidation, amalgamation or merger); (2) becomes insolvent or is unable
to pay its debts or fails or admits in writing its inability generally to pay its
debts as they become due; (3) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (4) institutes or
has instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other similar
law affecting creditors’ rights, or a petition is presented for its winding-up
or liquidation, and, in the case of any such proceeding or petition instituted
or presented against it, such proceeding or petition (A) results in a
judgment of insolvency or bankruptcy or the entry of an order for relief or the
making of an order for its winding-up or liquidation or (B) is not
dismissed, discharged, stayed or restrained in each case within 30 days  of the institution or presentation thereof; (5) has
a resolution passed for its winding-up, official management or liquidation
(other than pursuant to a consolidation, amalgamation or merger); (6) seeks
or becomes subject to the appointment of an administrator, provisional
liquidator, conservator, receiver, trustee, custodian or other similar official
for it or for all or substantially all its assets; (7) has a secured party
take possession of all or substantially all its assets or has a distress,
execution, attachment, sequestration or other legal process levied, enforced or
sued on or against all or substantially all its assets and such secured party
maintains possession, or any such process is not dismissed, discharged, stayed
or restrained, in each case within 30 days thereafter; (8) causes or is
subject to any event with respect to it which, under the applicable laws of any
jurisdiction, has an analogous effect to any of the events specified in clauses
(1) to (7) inclusive); or (9) takes any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of the
foregoing acts; or

 

(viii) Merger
Without Assumption. The party or
any Credit Support Provider of such party consolidates or amalgamates with, or
merges with or into, or transfers all or substantially all its assets to, another
entity and, at the time of such consolidation, amalgamation, merger or
transfer:—

 

(1)                   the resulting,
surviving or transferee entity fails to assume all the obligations of such
party or such Credit Support Provider under this Agreement or any Credit Support
Document to which it or its predecessor was a party by operation of law or
pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

 

(2)                   the benefits of any
Credit Support Document fail to extend (without the consent of the other party)
to the performance by such resulting, surviving or transferee entity of its
obligations under this Agreement.

 

(b)                                 Termination Events. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified
Entity of such party of any event specified below constitutes an Illegality if
the event is specified in (i) below, a Tax Event if the event is specified
in (ii) below or a Tax Event Upon Merger if the event is specified in (iii) below,
and, if specified to be applicable, a Credit Event 

 

6

 

Upon Merger if the event is specified pursuant to (iv) below
or an Additional Termination Event if the event is specified pursuant to (v) below:—

 

(i)             Illegality.  Due to the adoption of, or any
change in, any applicable law after the date on which a Transaction is entered
into, or due to the promulgation of, or any change in, the interpretation by any
court, tribunal or regulatory authority with competent jurisdiction of any
applicable law after such date, it becomes unlawful (other than as a result of
a breach by the party of Section 4(b)) for such party (which will be the
Affected Party):—

 

(1)                   to perform any
absolute or contingent obligation to make a payment or delivery or to receive a
payment or delivery in respect of such Transaction or to comply with any other material
provision of this Agreement relating to such Transaction; or

 

(2)                   to perform, or for any
Credit Support Provider of such party to perform, any contingent or other
obligation which the party (or such Credit Support Provider) has under any
Credit Support Document relating to such Transaction;

 

(ii)          Tax
Event. Due to (x) any action taken by a taxing authority, or
brought in a court of competent jurisdiction, on or after the date on which a
Transaction is entered into (regardless of whether such action is taken or
brought with respect to a party to this Agreement) or (y) a Change in Tax
Law, the party (which will  be the
Affected Party) will, or there is a substantial likelihood that it will, on the
next succeeding Scheduled Payment Date (1) be required to pay to the other
party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except
in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount is required to be deducted or withheld for or on
account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or
6(e)) and no additional amount is required to be paid in respect of such Tax
under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or
(B));

 

(iii)       Tax
Event Upon Merger. The party (the “Burdened Party”)
on the next succeeding Scheduled Payment Date will either (1) be required
to pay an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except
in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount has been deducted or withheld for or on account
of any Indemnifiable Tax in respect of which the other party is not required to
pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with,
or merging with or into, or transferring all or substantially all its assets
to, another entity (which will be the Affected Party) where such action does
not constitute an event described in Section 5(a)(viii);

 

(iv)      Credit
Event Upon Merger. If “Credit Event Upon Merger” is
specified in the Schedule as applying to the party, such party (“X”), any
Credit Support Provider of X or any applicable Specified Entity of X consolidates
or amalgamates with, or merges with or into, or transfers all or substantially
all its assets to, another entity and such action does not constitute an event
described in Section 5(a)(viii) but the  creditworthiness of the resulting, surviving
or transferee entity is materially weaker than that of X, such Credit Support
Provider or such Specified Entity, as the case may be, immediately prior to
such action (and, in such event, X or its successor or transferee, as
appropriate, will be the Affected Party); or

 

(v)         Additional
Termination Event. If any “Additional Termination
Event” is specified in the Schedule or any Confirmation as applying, the
occurrence of such event (and, in such event, the Affected Party or Affected
Parties shall be as specified for such Additional Termination Event in the
Schedule or such Confirmation).

 

(c)                                  Event of Default and
Illegality. If an
event or circumstance which would otherwise constitute or give rise to an Event
of Default also constitutes an Illegality, it will be treated as an Illegality
and will not constitute an Event of Default.

 

7

 

6.                                      Early Termination

 

(a)                                  Right to Terminate
Following Event of Default.  If at
any time an Event of Default with respect to a party (the “Defaulting Party”)
has occurred and is then continuing, the other party (the “Non-defaulting Party”
may, by not more than 20 days notice to the Defaulting Party specifying the
relevant Event of Default, designate a day not earlier than the day such notice
is effective as an Early Termination Date in respect of all outstanding
Transactions. If, however, “Automatic Early Termination” is specified in the
Schedule as applying to a party, then an Early Termination Date in respect of
all outstanding Transactions will occur immediately upon the occurrence with
respect to such party of an Event of Default specified in Section 5(a)(vii)(1),
(3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
immediately preceding the institution of the relevant proceeding or the
presentation of the relevant petition upon the occurrence with respect to such
party of an Event of Default specified in Section 5(a)(vii)(4) or, to
the extent analogous thereto, (8).

 

(b)                                 Right to Terminate
Following Termination Event.

 

(i)             Notice. If a Termination
Event occurs, an Affected Party will, promptly upon becoming aware of it,
notify the other party, specifying the nature of that Termination Event and
each Affected Transaction and will also give such other information about that
Termination Event as the other party may reasonably require.

 

(ii)          Transfer
to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(1) or
a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon
Merger occurs and the Burdened Party is the Affected Party, the Affected Party
will, as a condition to its right to designate an Early Termination Date under Section 6(b)(iv),
use all reasonable efforts (which will not require  such party to incur a loss, excluding
immaterial, incidental expenses) to transfer within 20 days after it gives
notice under Section 6(b)(i) all its rights and obligations under
this Agreement in respect of the Affected Transactions to another of its
Offices or Affiliates so that such Termination Event ceases to exist.

 

If the Affected Party is not able
to make such a transfer it will give notice to the other party to that effect
within such 20 day period, whereupon the other party may effect such a transfer
within 30 days after the notice is given under Section 6(b)(i).

 

Any such transfer by a party under
this Section 6(b)(ii) will be subject to and conditional upon the prior
written consent of the other party, which consent will not be withheld if such
other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed.

 

(iii)       Two
Affected Parties. If an Illegality under Section 5(b)(i)(1) or a
Tax Event occurs and there are two Affected Parties, each party will use all
reasonable efforts to reach agreement within 30 days after notice thereof is
given under Section 6(b)(i) on action to avoid that Termination
Event.

 

(iv)      Right
to Terminate. If:—

 

(1)                   a transfer under Section 6(b)(ii) or
an agreement under Section 6(b)(iii), as the case may be, has not been
effected with respect to all Affected Transactions within 30 days after an Affected
Party gives notice under Section 6(b)(i); or

 

(2)                   an Illegality under Section 5(b)(i)(2),
a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax
Event Upon Merger occurs and the Burdened Party is not the Affected Party,

 

either party in the case of an
Illegality, the Burdened Party in the case of a Tax Event Upon Merger, any
Affected Party in the case of a Tax Event or an Additional Termination Event if
there is more than one Affected Party, or the party which is not the Affected
Party in the case of a Credit Event Upon Merger or an Additional Termination
Event if there is only one Affected Party may, by not more than 20 days notice
to the other party and provided that the relevant Termination Event is then 

 

8

 

continuing, designate a day not
earlier than the day such notice is effective as an Early Termination Date in
respect of all Affected Transactions.

 

(c)                                  Effect of Designation.

 

(i)             If notice designating
an Early Termination Date is given under Section 6(a) or (b), the
Early Termination Date will occur on the date so designated, whether or not the
relevant Event of Default or Termination Event is then continuing.

 

(ii)          Upon the occurrence or effective
designation of an Early Termination Date, no further payments or deliveries
under Section 2(a)(i) or 2(e) in respect of the Terminated
Transactions will be required to be made, but without prejudice to the other
provisions of this Agreement. The amount, if any, payable in respect of an
Early Termination Date shall be determined pursuant to Section 6(e).

 

(d)                                 Calculations.

 

(i)             Statement.  On
or as soon as reasonably practicable following the occurrence of an Early Termination
Date, each party will make the calculations on its part, if any, contemplated
by Section 6(e) and will provide to the other party a statement (1) showing,
in reasonable detail, such calculations (including all relevant quotations and
specifying any amount payable under Section 6(e)) and (2) giving details
of the relevant account to which any amount payable to it is to be paid. In the
absence of written confirmation from the source of a quotation obtained in
determining a Market Quotation, the records of the party obtaining such
quotation will be conclusive evidence of the existence and accuracy of such quotation.

 

(ii)          Payment
Date. An amount calculated as being due in respect of any Early
Termination Date under Section 6(e) will be payable on the day that
notice of the amount payable is effective (in the case of an Early Termination
Date which is designated or occurs as a result of an Event of Default) and on
the day which is two Local Business Days after the day on which notice of the
amount payable is effective (in the case of an Early Termination Date which is
designated as a result of a Termination Event). Such amount will be paid
together with (to the extent permitted under applicable law) interest thereon
(before as well as after judgment) in the Termination Currency, from (and
including) the relevant Early Termination Date to (but excluding) the date such
amount is paid, at the Applicable Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed.

 

(e)                                  Payments on Early
Termination. If an
Early Termination Date occurs, the following provisions shall apply based on
the parties’ election in the Schedule of a payment measure, either “Market
Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second
Method”. If the parties fail to designate a payment measure or payment method
in the Schedule, it will be deemed that “Market Quotation” or the “Second
Method”, as the case may be, shall apply. The amount, if any, payable in
respect of an Early Termination Date and determined pursuant to this Section will
be subject to any Set-off.

 

(i)             Events
of Default. If the Early Termination Date
results from an Event of Default:—

 

(1)                   First Method
and Market Quotation. If the First Method and Market Quotation apply, the
Defaulting Party will pay to the Non-defaulting Party the excess, if a positive
number, of (A) the sum of the Settlement Amount (determined by the
Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party over (B) the Termination Currency Equivalent of the
Unpaid Amounts owing to the Defaulting Party.

 

(2)                   First Method
and Loss. If the First Method and Loss apply, the Defaulting Party
will pay to the Non-defaulting Party, if a positive number, the Non-defaulting
Party’s Loss in respect of this Agreement.

 

(3)                   Second Method
and Market Quotation. If the Second Method and Market Quotation apply, an
amount will be payable equal to (A) the sum of the Settlement Amount
(determined by the 

 

9

 

Non-defaulting Party) in respect of the Terminated
Transactions and the Termination Currency Equivalent of the Unpaid Amounts
owing to the Non-defaulting Party less (B) the Termination Currency
Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount
is a positive number, the Defaulting Party will pay it to the Non-defaulting
Party; if it is a negative number, the Non-defaulting Party will pay the
absolute value of that amount to the Defaulting Party.

 

(4)               Second Method
and Loss. If the Second Method and Loss apply, an amount will be
payable equal to the Non-defaulting Party’s Loss in respect of this Agreement.
If that amount is a positive number, the Defaulting Party will pay it to the
Non-defaulting Party; if it is a negative number, the Non-defaulting Party will
pay the absolute value of that amount to the Defaulting Party.

 

(ii)          Termination
Events. If the Early Termination Date results from a Termination
Event:—

 

(1)             One Affected Party. If there is one Affected
Party, the amount payable will be determined in accordance with Section 6(e)(i)(3),
if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and
the party which is not the Affected Party, respectively, and, if Loss applies
and fewer than all the Transactions are being terminated, Loss shall be
calculated in respect of all Terminated Transactions.

 

(2)             Two Affected Parties. If there are two
Affected Parties:—

 

(A)          if Market Quotation
applies, each party will determine a Settlement Amount in respect of the
Terminated Transactions, and an amount will be payable equal to (I) the sum
of (a) one-half of the difference between the Settlement Amount of the
party with the higher Settlement Amount (“X”) and the Settlement Amount of the
party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the
Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

 

(B)            if Loss applies, each
party will determine its Loss in respect of this Agreement (or, if fewer than
all the Transactions are being terminated, in respect of all Terminated Transactions)
and an amount will be payable equal to one-half of the difference between the
Loss of the party with the higher Loss (“X”) and the Loss of the party with the
lower Loss (“Y”).

 

If the amount payable is a positive number, Y will pay it
to X; if it is a negative number, X will pay the absolute value of that amount
to Y.

 

(iii)       Adjustment
for Bankruptcy. In circumstances where an Early
Termination Date occurs because “Automatic Early Termination” applies in
respect of a party, the amount determined under this Section 6(e) will
be subject to such adjustments as are appropriate and permitted by law to reflect
any payments or deliveries made by one party to the other under this Agreement
(and retained by such other party) during the period from the relevant Early
Termination Date to the date for payment determined under Section 6(d)(ii).

 

(iv)      Pre-Estimate. The parties agree
that if Market Quotation applies an amount recoverable under this Section 6(e) is
a reasonable pre-estimate of loss and not a penalty. Such amount is payable for
the loss of bargain and the loss of protection against future risks and except
as otherwise provided in this Agreement neither party will be entitled to
recover any additional damages as a consequence of such losses.

 

10

 

7.                                      Transfer

 

Subject to Section 6(b)(ii),
neither this Agreement nor any interest or obligation in or under this
Agreement may be transferred (whether by way of security or otherwise) by
either party without the prior written consent of the other party, except
that:—

 

(a)                                  a party may make such a transfer of this
Agreement pursuant to a consolidation or amalgamation with, or merger with or
into, or transfer of all or substantially all its assets to, another entity
(but without prejudice to any other right or remedy under this Agreement); and

 

(b)                                 a party may make such a transfer of all
or any part of its interest in any amount payable to it from a Defaulting Party
under Section 6(e).

 

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

 

8.                                      Contractual Currency

 

(a)                                  Payment in the Contractual
Currency. Each
payment under this Agreement will be made in the relevant currency specified in
this Agreement for that payment (the  “Contractual
Currency”). To the extent permitted by applicable law, any obligation to make
payments under this Agreement in the Contractual Currency will not be
discharged or satisfied by any tender in any currency other than the
Contractual Currency, except to the extent such tender results in the actual
receipt by the party to which payment is owed, acting in a reasonable manner
and in good faith in converting the currency so tendered into the Contractual Currency,
of the full amount in the Contractual Currency of all amounts payable in
respect of this Agreement. If for any reason the amount in the Contractual
Currency so received falls short of the amount in the Contractual Currency
payable in respect of this Agreement, the party required to make the payment will,
to the extent permitted by applicable law, immediately pay such additional
amount in the Contractual Currency as may be necessary to compensate for the
shortfall. If for any reason the amount in the Contractual Currency so received
exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of
such excess.

 

(b)                                 Judgments. To the extent permitted by applicable law, if any
judgment or order expressed in a currency other than the Contractual Currency
is rendered (i) for the payment of any amount owing in respect of this
Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment
or order of another court for the payment of any amount described in (i) or
(ii) above, the party seeking recovery, after recovery in full of the
aggregate amount to which such party is entitled pursuant to the judgment or
order, will be entitled to receive immediately from the other party the amount
of any shortfall of the Contractual Currency received by such party as a
consequence of sums paid in such other currency and will refund promptly to the
other party any excess of the Contractual  Currency received by such party as a
consequence of sums paid in such other currency if such shortfall or such
excess arises or results from any variation between the rate of exchange at
which the Contractual Currency is converted into the currency of the judgment
or order for the purposes of such judgment or order and the rate of exchange at
which such party is able, acting in a reasonable manner and in good faith in converting
the currency received into the Contractual Currency, to purchase the
Contractual Currency with the amount of the currency of the judgment or order
actually received by such party. The term “rate of exchange” includes, without
limitation, any premiums and costs of exchange payable in connection with the purchase
of or conversion into the Contractual Currency.

 

(c)                                  Separate Indemnities. To the extent permitted by applicable
law, these indemnities constitute separate and independent obligations from the
other obligations in this Agreement, will be enforceable as separate and
independent causes of action, will apply notwithstanding any indulgence granted
by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

 

(d)                                 Evidence of Loss. For the purpose of this Section 8,
it will be sufficient for a party to demonstrate that it would have suffered a
loss had an actual exchange or purchase been made.

 

11

 

9.                                      Miscellaneous

 

(a)                                  Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

 

(b)                                 Amendments. No amendment, modification or waiver in respect of
this Agreement will be effective unless in writing (including a writing
evidenced by a facsimile transmission) and executed by each of the parties or
confirmed by an exchange of telexes or electronic messages on an electronic
messaging system.

 

(c)                                  Survival of Obligations. Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

 

(d)                                 Remedies Cumulative. Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

 

(e)                                  Counterparts and
Confirmations.

 

(i)                  This Agreement (and each amendment,
modification and waiver in respect of it) may be executed and delivered in
counterparts (including by facsimile transmission), each of which will be deemed
an original.

 

(ii)               The parties intend that they are
legally bound by the terms of each Transaction from the moment they agree to
those terms (whether orally or otherwise). A Confirmation shall be entered into
as soon as practicable and may be executed and delivered in counterparts
(including by facsimile transmission) or be created by an exchange of telexes
or by an exchange of electronic messages on an electronic messaging system,
which in each case will be sufficient for all purposes to evidence a binding
supplement to this Agreement. The parties will specify therein or through
another effective means that any such counterpart, telex or electronic message
constitutes a Confirmation.

 

(f)                                    No Waiver of Rights. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a waiver,
and a single or partial exercise of any right, power or privilege will not be
presumed to preclude any subsequent or further exercise, of that right, power
or privilege or the exercise of any other right, power or privilege.

 

(g)                                 Headings. The headings used in this Agreement are for
convenience of reference only and are not to affect the construction of or to
be taken into consideration in interpreting this Agreement.

 

10.                               Offices; Multibranch
Parties

 

(a)                                  If Section 10(a) is specified
in the Schedule as applying, each party that enters into a Transaction through
an Office other than its head or home office represents to the other party
that, notwithstanding the place of booking office or jurisdiction of
incorporation or organisation of such party, the obligations of such party are
the same as if it had entered into the Transaction through its head or home
office. This representation will be deemed to be repeated by such party on each
date on which a Transaction is entered into.

 

(b)                                 Neither party may change the Office
through which it makes and receives payments or deliveries for the purpose of a
Transaction without the prior written consent of the other party.

 

(c)                                  If a party is specified as a Multibranch
Party in the Schedule, such Multibranch Party may make and receive payments or
deliveries under any Transaction through any Office listed in the Schedule, and
the Office through which it makes and receives payments or deliveries with
respect to a Transaction will be specified in the relevant Confirmation.

 

11.                               Expenses

 

A Defaulting Party will, on demand,
indemnify and hold harmless the other party for and against all reasonable
out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such
other party by reason of the enforcement and protection of its rights under
this Agreement or any Credit Support Document 

 

12

 

to which the Defaulting Party is a
party or by reason of the early termination of any Transaction, including, but
not limited to, costs of collection.

 

12.                               Notices

 

(a)                                  Effectiveness. Any notice or other communication in respect of this
Agreement may be given in any manner set forth below (except that a notice or
other communication under Section 5 or 6 may not be given by facsimile
transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:—

 

(i)                  if in writing and delivered in
person or by courier, on the date it is delivered;

 

(ii)               if sent by telex, on the date the
recipient’s answerback is received;

 

(iii)            if sent by facsimile transmission,
on the date that transmission is received by a responsible employee of the
recipient in legible form (it being agreed that the burden of proving receipt
will be on the sender and will not be met by a transmission report generated by
the sender’s facsimile machine);

 

(iv)           if sent by certified or registered
mail (airmail, if overseas) or the equivalent (return receipt requested), on
the date that mail is delivered or its delivery is attempted; or

 

(v)              if sent by electronic messaging
system, on the date that electronic message is received,

 

unless the date of that delivery
(or attempted delivery) or that receipt, as applicable, is not a Local Business
Day or that communication is delivered (or attempted) or received, as
applicable, after the close of business on a Local Business Day, in which case
that communication shall be deemed given and effective on the first following
day that is a Local Business Day.

 

(b)                                 Change of Addresses. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it.

 

13.                               Governing Law and
Jurisdiction

 

(a)                                  Governing Law. This Agreement will be governed by and construed in
accordance with the law specified in the Schedule.

 

(b)                                 Jurisdiction. With respect to any suit, action or proceedings
relating to this Agreement (“Proceedings”), each party irrevocably:—

 

(i)                  submits to the jurisdiction of the
English courts, if this Agreement is expressed to be governed by English law,
or to the non-exclusive jurisdiction of the courts of the State of New York and
the United States District Court located in the Borough of Manhattan in New
York City, if this Agreement is expressed to be governed by the laws of the
State of New York; and

 

(ii)               waives any objection which it may
have at any time to the laying of venue of any Proceedings brought in any such
court, waives any claim that such Proceedings have been brought in an inconvenient
forum and further waives the right to object, with respect to such Proceedings,
that such court does not have any jurisdiction over such party.

 

Nothing in this Agreement precludes
either party from bringing Proceedings in any other jurisdiction (outside, if
this Agreement is expressed to be governed by English law, the Contracting
States, as defined in Section 1(3) of the Civil Jurisdiction and
Judgments Act 1982 or any modification, extension or re-enactment thereof for
the time being in force) nor will the bringing of Proceedings in any one or
more jurisdictions preclude the bringing of Proceedings in any other
jurisdiction.

 

(c)                                  Service of Process. Each party irrevocably appoints the Process Agent (if
any) specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any 

 

13

 

reason any party’s Process Agent is unable to act as
such, such party will promptly notify the other party and within 30 days
appoint a substitute process agent acceptable to the other party. The parties
irrevocably consent to service of process given in the manner provided for
notices in Section 12. Nothing in this Agreement will affect the right of
either party to serve process in any other manner permitted by law.

 

(d)                                 Waiver of Immunities. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction
of any court, (iii) relief by way of injunction, order for specific
performance or for recovery of property, (iv) attachment of its assets (whether
before or after judgment) and (v) execution or enforcement of any judgment
to which it or its revenues or assets might otherwise be entitled in any Proceedings
in the courts of any jurisdiction and irrevocably agrees, to the extent
permitted by applicable law, that it will not claim any such immunity in any Proceedings.

 

14.                               Definitions

 

As used in this Agreement:—

 

“Additional Termination
Event” has the meaning specified in Section 5(b).

 

“Affected Party” has the meaning
specified in Section 5(b).

 

“Affected Transactions” means (a) with
respect to any Termination Event consisting of an Illegality, Tax Event or Tax
Event Upon Merger, all Transactions affected by the occurrence of such
Termination Event and (b) with respect to any other Termination Event, all
Transactions.

 

“Affiliate” means, subject to the
Schedule, in relation to any person, any entity controlled, directly or indirectly,
by the person, any entity that controls, directly or indirectly, the person or
any entity directly or indirectly under common control with the person. For
this purpose, “control” of any entity or person means ownership of a majority
of the voting power of the entity or person.

 

“Applicable Rate” means:—

 

(a)                in respect of obligations payable or deliverable (or
which would have been but for Section 2(a)(iii)) by a Defaulting Party,
the Default Rate;

 

(b)               in respect of an obligation to pay an amount under Section 6(e) of
either party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

 

(c)                in respect of all other obligations payable or
deliverable (or which would have been but for Section 2(a)(iii)) by a Non-defaulting
Party, the Non-default Rate; and

 

(d)               in all other cases, the Termination Rate.

 

“Burdened Party” has the meaning
specified in Section 5(b).

 

“Change in Tax Law” means the enactment,
promulgation, execution or ratification of, or any change in or amendment to,
any law (or in the application or official interpretation of any law) that
occurs on or after the date on which the relevant Transaction is entered into.

 

“consent” includes a consent,
approval, action, authorisation, exemption, notice, filing, registration or exchange
control consent.

 

“Credit Event Upon Merger” has the meaning
specified in Section 5(b).

 

“Credit Support Document” means any agreement
or instrument that is specified as such in this Agreement.

 

“Credit Support Provider” has the meaning
specified in the Schedule.

 

“Default Rate” means a rate per
annum equal to the cost (without proof or evidence of any actual cost) to the
relevant payee (as certified by it) if it were to fund or of funding the
relevant amount plus 1 % per annum.

 

14

 

“Defaulting Party” has the meaning
specified in Section 6(a).

 

“Early Termination Date” means the date
determined in accordance with Section 6(a) or 6(b)(iv).

 

“Event of Default” has the meaning specified
in Section 5(a) and, if applicable, in the Schedule.

 

“Illegality” has the meaning
specified in Section 5(b).

 

“Indemnifiable Tax” means any Tax other
than a Tax that would not be imposed in respect of a payment under this
Agreement but for a present or former connection between the jurisdiction of
the government or taxation authority imposing such Tax and the recipient of
such payment or a person related to such recipient (including, without
limitation, a connection arising from such recipient or related person being or
having been a citizen or resident of such jurisdiction, or being or having been
organised, present or engaged in a trade or business in such jurisdiction, or
having or having had a permanent establishment or fixed place of business in such
jurisdiction, but excluding a connection arising solely from such recipient or
related person having executed, delivered, performed its obligations or
received a payment under, or enforced, this Agreement or a Credit Support
Document).

 

“law” includes any treaty,
law, rule or regulation (as modified, in the case of tax matters, by the
practice of any relevant governmental revenue authority) and “lawful” and “unlawful”
will be construed accordingly.

 

“Local Business Day” means, subject to the
Schedule, a day on which commercial banks are open for business (including
dealings in foreign exchange and foreign currency deposits) (a) in
relation to any obligation under Section 2(a)(i), in the place(s) specified
in the relevant Confirmation or, if not so specified, as otherwise agreed by
the parties in writing or determined pursuant to provisions contained, or
incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different,
in the principal financial centre, if any, of the currency of such payment, (c) in
relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice
provided by the recipient and, in the case of a notice contemplated by Section 2(b),
in the place where the relevant new account is to be located and (d) in
relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

 

“Loss” means, with respect
to this Agreement or one or more Terminated Transactions, as the case may be,
and a party, the Termination Currency Equivalent of an amount that party
reasonably determines in good faith to be its total losses and costs (or gain,
in which case expressed as a negative number) in connection with this Agreement
or that Terminated Transaction or group of Terminated Transactions, as the case
may be, including any loss of bargain, cost of funding or, at the election of
such party but without duplication, loss or cost incurred as a result of its
terminating, liquidating, obtaining or reestablishing any hedge or related
trading position (or any gain resulting from any of them). Loss includes losses
and costs (or gains) in respect of any payment or delivery required to have
been made (assuming satisfaction of each applicable condition precedent) on or
before the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section 6(e)(i)(1) or (3) or 6(c)(ii)(2)(A) applies.
Loss does not include a party’s legal fees and out-of-pocket expenses referred
to under Section 11. A party will determine its Loss as of the relevant
Early Termination Date, or, if that is not reasonably practicable, as of the
earliest date thereafter as is reasonably practicable. A party may (but need
not) determine its Loss by reference to quotations of relevant rates or prices
from one or more leading dealers in the relevant markets.

 

“Market Quotation” means, with respect
to one or more Terminated Transactions and a party making the determination, an
amount determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party
(expressed as a negative number) or by such party (expressed as a positive
number) in consideration of an agreement between such party (taking into
account any existing Credit Support Document with respect to the obligations of
such party) and the quoting Reference Market-maker to enter into a transaction
(the “Replacement Transaction”) that would have the effect of preserving for
such party the economic equivalent of any payment or delivery (whether the
underlying obligation was absolute or contingent and assuming the satisfaction
of each applicable condition precedent) by the parties under Section 2(a)(i) in
respect of such Terminated Transaction or group of Terminated Transactions that
would, but for the occurrence of the relevant Early Termination Date, have

 

15

 

been required after that date. For
this purpose, Unpaid Amounts in respect of the Terminated Transaction or group
of Terminated Transactions are to be excluded but, without limitation, any
payment or delivery that would, but for the relevant Early Termination Date,
have been required (assuming satisfaction of each applicable condition
precedent) after that Early Termination Date is to be included. The Replacement
Transaction would be subject to such documentation as such party and the
Reference Market-maker may, in good faith, agree. The party making the
determination (or its agent) will request each Reference Market-maker to
provide its quotation to the extent reasonably practicable as of the same day
and time (without regard to different time zones) on or as soon as reasonably
practicable after the relevant Early Termination Date. The day and time as of
which those quotations are to be obtained will be selected in good faith by the
party obliged to make a determination under Section 6(e), and, if each
party is so obliged, after consultation with the other. If more than three
quotations are provided, the Market Quotation will be the arithmetic mean of
the quotations, without regard to the quotations having the highest and lowest
values. If exactly three such quotations are provided, the Market Quotation
will be the quotation remaining after disregarding the highest and lowest
quotations. For this purpose, if more than one quotation has the same highest
value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market
Quotation in respect of such Terminated Transaction or group of Terminated
Transactions cannot be determined.

 

“Non-default Rate” means a rate per
annum equal to the cost (without proof or evidence of any actual cost) to the
Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

 

“Non-defaulting Party” has the meaning
specified in Section 6(a).

 

“Office” means a branch or
office of a party, which may be such party’s head or home office.

 

“Potential Event of
Default” means any event which, with the giving of notice or the
lapse of time or both, would constitute an Event of Default.

 

“Reference Market-makers” means four leading
dealers in the relevant market selected by the party determining a Market
Quotation in good faith (a) from among dealers of the highest credit
standing which satisfy all the criteria that such party applies generally at
the time in deciding whether to offer or to make an extension of credit and (b) to
the extent practicable, from among such dealers having an office in the same city.

 

“Relevant Jurisdiction” means, with respect
to a party, the jurisdictions (a) in which the party is incorporated,
organised, managed and controlled or considered to have its seat, (b) where
an Office through which the party is acting for purposes of this Agreement is
located, (c) in which the party executes this Agreement and (d) in
relation to any payment, from or through which such payment is made.

 

“Scheduled Payment Date” means a date on which
a payment or delivery is to be made under Section 2(a)(i) with
respect to a Transaction.

 

“Set-off” means set-off,
offset, combination of accounts, right of retention or withholding or similar
right or requirement to which the payer of an amount under Section 6 is
entitled or subject (whether arising under this Agreement, another contract,
applicable law or otherwise) that is exercised by, or imposed on, such payer.

 

“Settlement Amount” means, with respect
to a party and any Early Termination Date, the sum of:—

 

(a)                the Termination Currency Equivalent of the Market
Quotations (whether positive or negative) for each Terminated Transaction or
group of Terminated Transactions for which a Market Quotation is determined; and

 

(b)               such party’s Loss (whether positive or negative and
without reference to any Unpaid Amounts) for each Terminated Transaction or
group of Terminated Transactions for which a Market Quotation cannot be determined
or would not (in the reasonable belief of the party making the determination)
produce a commercially reasonable result.

 

“Specified Entity” has the meaning
specified in the Schedule.

 

16

 

“Specified Indebtedness” means, subject to the
Schedule, any obligation (whether present or future, contingent or otherwise,
as principal or surety or otherwise) in respect of borrowed money.

 

“Specified Transaction” means, subject to the
Schedule, (a) any transaction (including an agreement with respect thereto)
now existing or hereafter entered into between one party to this Agreement (or
any Credit Support Provider of such party or any applicable Specified Entity of
such party) and the other party to this Agreement (or any Credit Support
Provider of such other party or any applicable Specified Entity of such other
party) which is a rate swap transaction, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity
index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar
transaction (including any option with respect to any of these transactions), (b) any
combination of these transactions and (c) any other transaction identified
as a Specified Transaction in this Agreement or the relevant confirmation.

 

“Stamp Tax” means any stamp,
registration, documentation or similar tax.

 

“Tax” means any present or
future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any
government or other taxing authority in respect of any payment under this
Agreement other than a stamp, registration, documentation or similar tax.

 

“Tax Event” has the meaning
specified in Section 5(b).

 

“Tax Event Upon Merger” has the meaning
specified in Section 5(b).

 

“Terminated Transactions” means with respect to
any Early Termination Date (a) if resulting from a Termination Event, all
Affected Transactions and (b) if resulting from an Event of Default, all
Transactions (in either case) in effect immediately before the effectiveness of
the notice designating that Early Termination Date (or, if “Automatic Early
Termination” applies, immediately before that Early Termination Date).

 

“Termination Currency” has the meaning
specified in the Schedule.

 

“Termination Currency
Equivalent” means, in respect of any amount denominated in the
Termination Currency, such Termination Currency amount and, in respect of any
amount denominated in a currency other than the Termination Currency (the “Other
Currency”), the amount in the Termination Currency determined by the party making
the relevant determination as being required to purchase such amount of such
Other Currency as at the relevant Early Termination Date, or, if the relevant
Market Quotation or Loss (as the case may be), is determined as of a later
date, that later date, with the Termination Currency at the rate equal to the
spot exchange rate of the foreign exchange agent (selected as provided below)
for the purchase of such Other Currency with the Termination Currency at or
about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a
rate for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected
in good faith by that party and otherwise will be agreed by the parties.

 

“Termination Event” means an Illegality,
a Tax Event or a Tax Event Upon Merger or, if specified to be applicable, a
Credit Event Upon Merger or an Additional Termination Event.

 

“Termination Rate” means a rate per
annum equal to the arithmetic mean of the cost (without proof or  evidence of any actual cost) to each party (as
certified by such party) if it were to fund or of funding such amounts.

 

“Unpaid Amounts” owing to any party
means, with respect to an Early Termination Date, the aggregate of (a) in
respect of all Terminated Transactions, the amounts that became payable (or
that would have become payable but for Section 2(a)(iii)) to such party
under Section 2(a)(i) on or prior to such Early Termination Date and
which remain unpaid as at such Early Termination Date and (b) in respect
of each Terminated Transaction, for each obligation under Section 2(a)(i) which
was (or would have been but for Section 2(a)(iii)) required to be settled
by delivery to such party on or prior to such Early Termination Date and which
has not been so settled as at such Early Termination Date, an amount equal to
the fair market 

 

17

 

value of that which was (or would
have been) required to be delivered as of the originally scheduled date for
delivery, in each case together with (to the extent permitted under applicable
law) interest, in the currency, of such amounts, from (and including) the date
such amounts or obligations were or would have been required to have been paid
or performed to (but excluding) such Early Termination Date, at the Applicable
Rate. Such amounts of interest will be calculated on the basis of daily
compounding and the actual number of days elapsed. The fair market value of any
obligation referred to in clause (b) above shall be reasonably determined
by the party obliged to make the determination under Section 6(e) or,
if each party is so obliged, it shall be the average of the Termination
Currency Equivalents of the fair market values reasonably determined by both
parties.

 

IN WITNESS WHEREOF the parties have
executed this document on the respective dates specified below with effect from
the date specified on the first page of this document.

 

	
  DEXIA SA

  	
   

  	
  FSA
  ASSET MANAGEMENT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  DEXIA CRÉDIT LOCAL S.A.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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Non-
Guaranteed Put ISDA Master 

Agreement

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