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Exhibit 10.2

 

ISDA®

International Swaps and Derivatives Association, Inc.

2002 MASTER AGREEMENT

 

dated as of November 16, 2021

 

	
			KeyBank National Association

			(“Party A”)

				
			and

				
			Bel Fuse Inc.

			(“Party B”)

			
	 	 	 

have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be

governed by this 2002 Master Agreement, which includes the schedule (the “Schedule”), and the documents and

other confirming evidence (each a “Confirmation”) exchanged between the parties or otherwise effective for the

purpose of confirming or evidencing those Transactions. This 2002 Master Agreement and the Schedule are together

referred to as this “Master Agreement”.

 

Accordingly, the parties agree as follows:—

 

1.         Interpretation

 

(a)        Definitions. The terms defined in Section 14 and elsewhere in this Master Agreement 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, 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.

 

 

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(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 condition specified in this Agreement to be a

condition precedent for the purpose of this Section 2(a)(iii).

 

(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 Settlement 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 of Payments. 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 which 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 and payment obligation will be

determined in respect of all amounts payable on the same date in the same currency in respect of those Transactions,

regardless of whether such amounts are payable in respect of the same Transaction. The election may be made in the

Schedule or any Confirmation by specifying that “Multiple Transaction Payment Netting” applies to the Transactions

identified as being subject to the election (in which case clause (ii) above will not apply to such Transactions). If

Multiple Transaction Payment Netting is applicable to Transactions, it will apply to those Transactions with effect

from the starting date specified in the Schedule or such Confirmation, or, if a starting date is not specified in the

Schedule or such Confirmation, the starting date otherwise agreed by the parties in writing.  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:—

 

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(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, after 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.

 

(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)).

 

3.         Representations

 

Each party makes the representations contained in Sections 3(a), 3(b), 3(c), 3(e) and 3(f) and, if specified in the

Schedule as applying, 3(g) 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).  If any “Additional Representation” is specified in the Schedule or any

Confirmation as applying, the party or parties specified for such Additional Representation will make and, if

applicable, be deemed to repeat such Additional Representation at the time or times specified for such Additional Representation.

 

(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)).

 

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(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 Credit

Support Providers or any of its applicable Specified Entities 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.

 

(g)        No Agency. It is entering into this Agreement, including each Transaction, as principal and not as agent of

any person or entity.

 

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 clause (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.

 

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(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 where an Office through 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 (subject to

Sections 5(c) and 6(e)(iv)) 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 9(h)(i)(2) or (4) required to be made by it if such failure is

not remedied on or before the first Local Business Day in the case of any such payment or the first Local

Delivery Day in the case of any such delivery after, in each case, notice of such failure is given to the party;

 

(ii)   Breach of Agreement; Repudiation of Agreement..

 

(1)     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 9(h)(i)(2)

or (4) 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 within 30 days after notice of such failure is given to the party; or

 

(2)     the party disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges

the validity of, this Master Agreement, any Confirmation executed and delivered by that party or any

Transaction evidenced by such a Confirmation (or such action is taken by any person or entity

appointed or empowered to operate it or act on its behalf);

 

(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, or any security interest granted by such party or such Credit

Support Provider to the other party pursuant to any 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 (or such action is

taken by any person or entity appointed or empowered to operate it or act on its behalf);

 

(iv)  Misrepresentation. A representation (other than a representation under Section 3(e) or 3(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 (other than by failing to make a delivery) under a Specified Transaction or any

credit support arrangement relating to a Specified Transaction and, after giving effect to any

applicable notice requirement or grace period, such default results in a liquidation of, an

acceleration of obligations under, or an early termination of, that Specified Transaction;

 

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(2)        defaults, after giving effect to any applicable notice requirement or grace period, in making

any payment due on the last payment or exchange date of, or any payment on early termination of, a

Specified Transaction (or, if there is no applicable notice requirement or grace period, such default

continues for at least one Local Business Day);

 

(3)        defaults in making any delivery due under (including any delivery due on the last delivery

or exchange date of) a Specified Transaction or any credit support arrangement relating to a

Specified Transaction and, after giving effect to any applicable notice requirement or grace period,

such defaults result in a liquidation of, an acceleration of obligations under, or any early termination

of, all transactions outstanding under the documentation applicable to that Specified Transaction; or

 

(4)        disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity

of, a Specified Transaction or any credit support arrangement relating to a Specified Transaction

that is, in either case, confirmed or evidenced by a document or other confirming evidence executed

and delivered by that party, Credit Support Provider or Specified Entity (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 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) where the aggregate principal amount of such agreements

or instruments, either alone or together with the amount, if any, referred to in clause (2) below is

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 under such agreements or

instruments on the due date for payment (after giving effect to any applicable notice requirement or

grace period) in an aggregate amount, either alone or together with the amount, if any, referred to in

clause (1) above, of not less than the applicable Threshold Amount;

 

(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)(A) institutes or has instituted against it, by a regulator, supervisor or

any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the

jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, 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, by it or such regulator, supervisor or similar official, or

(B) 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 such proceeding or petition is

instituted or presented by a person or entity not described in clause (A) above and either (I) 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 (II) is not dismissed, discharged, stayed or restrained

in each case within 15 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 15 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) above

(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

 

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(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, or reorganises,

reincorporates or reconstitutes into or as, another entity and, at the time of such consolidation,

amalgamation, merger, transfer, reorganisation, reincorporation or reconstitution:—

 

(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; 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 (subject

to Section 5(c)) an Illegality if the event is specified in clause (i) below, a Force Majeure Event if the event is

specified in clause (ii) below, a Tax Event if the event is specified in clause (iii) below, a Tax Event Upon Merger if

the event is specified in clause (iv) below, and, if specified to be applicable, a Credit Event Upon Merger if the event

is specified pursuant to clause (v) below or an Additional Termination Event if the event is specified pursuant to

clause (vi) below:—

 

(i)    Illegality. After giving effect to any applicable provision, disruption fallback or remedy specified

in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, due to an event or circumstance

(other than any action taken by a party or, if applicable, any Credit Support Provider of such party)

occurring after a Transaction is entered into, it becomes unlawful under any applicable law (including

without limitation the laws of any country in which payment, delivery or compliance is required by either

party or any Credit Support Provider, as the case may be), on any day, or it would be unlawful if the relevant

payment, delivery or compliance were required on that day (in each case, other than as a result of a breach

by the party of Section 4(b)):—

 

(1)     for the Office through which such party (which will be the Affected Party) makes and

receives payments or deliveries with respect to such Transaction to perform any absolute or

contingent obligation to make a payment or delivery or in respect of such Transaction, 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)     for such party or any credit Support Provider of such party (which will be the Affected

Party) to perform any absolute or contingent obligation to make a payment or delivery which such

party or Credit Support Provider has under any Credit Support Document relating to such

Transaction, to receive a payment or delivery under such Credit Support Document or to comply

with any other material provision of such Credit Support Document;

 

(ii)   Force Majeure Event. After giving effect to any applicable provision, disruption fallback or

remedy specified in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, by reason of

force majeure or act of state occurring after a Transaction is entered into, on any day:—

 

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(1)     the Office through which such party (which will be the Affected Party) makes and receives

payments or deliveries with respect to such Transaction is prevented from performing any absolute

or contingent obligation to make a payment or delivery in respect of such Transaction, from

receiving a payment or delivery in respect of such Transaction or from complying with any other

material provision of this Agreement relating to such Transaction (or would be so prevented if such

payment, delivery or compliance were required on that day), or it becomes impossible or

impracticable for such Office so to perform, receive or comply (or it would be impossible or

impracticable for such Office so to perform, receive or comply if such payment, delivery or

compliance were required on that day); or

 

(2)     such party or any Credit Support Provider of such party (which will be the Affected Party)

is prevented from performing any absolute or contingent obligation to make a payment or delivery

which such party or Credit Support Provider has under any Credit Support Document relating to

such Transaction, from receiving a payment or delivery under such Credit Support Document or

from complying with any other material provision of such Credit Support Document (or would be

so prevented if such payment, delivery or compliance were required on that day), or it becomes

impossible or impracticable for such party or Credit Support Provider so to perform, receive or

comply (or it would be impossible or impracticable for such party or Credit Support Provider so to

perform, receive or comply if such payment, delivery or compliance were required on that day),

so long as the force majeure or act of state is beyond the control of such Office, such party or such Credit

Support Provider, as appropriate, and such Office, party or Credit Support Provider could not, after using all

reasonable efforts (which will not require such party or Credit Support Provider to incur a loss, other than

immaterial, incidental expenses), overcome such prevention, impossibility or impracticability;

 

(iii)  Tax Event.  Due to (1) any action taken by a taxing authority, or brought in a court of competent

jurisdiction, after a Transaction is entered into (regardless of whether such action is taken or brought with

respect to a party to this Agreement) or (2) 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 Settlement Date

(A) 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 9(h) or (B) 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 9(h) 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));

 

(iv)  Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled

Settlement 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 9(h)) or 2 receive a payment from

which an amount has been deducted or withheld for or on account of any 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 (or any substantial part of the assets comprising the business conducted by it

as of the date of this Master Agreement) to or reorganising, reincorporating or reconstituting into or as,

another entity (which will be the Affected Party) where such action does not constitute a Merger Without

Assumption;

 

(v)   Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as

applying to the party, a Designated Event (as defined below) occurs with respect to such party, any Credit

Support Provider of such party or any applicable Specified Entity of such party (in each case, “X”) and such

Designated Event does not constitute a Merger Without Assumption, and the creditworthiness of X or, if

applicable, the successor, surviving or transferee entity of X, after taking into account any applicable Credit

Support Document, is materially weaker immediately after the occurrence of such Designated Event than

that of X immediately prior to the occurrence of such Designated Event (and, in any such event, such party

or its successor, surviving or transferee entity, as appropriate, will be the Affected party). A “Designated

Event” with respect to X means that:—

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(1)     X consolidates or amalgamates with, or merges with or into, or transfers all or substantially

all its assets (or any substantial part of the assets comprising the business conducted by X as of the

date of this Master Agreement) to, or reorganises, reincorporates or reconstitutes into or as, another

entity;

 

(2)     any person, related group of persons or entity acquires directly or indirectly the beneficial

ownership of (A) equity securities having the power to elect a majority of the board of directors (or

its equivalent) of X or (B) any other ownership interest enabling it to exercise control of X; or

 

(3)     X effects any substantial change in its capital structure by means of the issuance,

incurrence or guarantee of debt or the issuance of (A) preferred stock or other securities convertible

into or exchangeable for debt or preferred stock or (B) in the case of entities other than

corporations, any other form of ownership interest; or

 

(vi)       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 will be as specified for such Additional Termination Event in the Schedule or such

Confirmation).

 

(c)        Hierarchy of Events.. 

 

(i)         An event or circumstance that constitutes or gives rise to an Illegality or a Force Majeure Event will

not , for so long as that is the case, also constitute or give rise to an Event of Default under Section 5(a)(i),

5(a)(ii)(1) or 5(a)(iii)(1) insofar as such event or circumstance relates to the failure to make any payment or

delivery or a failure to comply with any other material provision of this Agreement or a Credit Support

Document, as the case may be.

 

(ii)        Except in circumstances contemplated by clause (i) above, if an event or circumstance which would

otherwise constitute or give rise to an Illegality or a Force Majeure Event also constitutes an Event of

Default or any other Termination Event, it will be treated as an Event of Default or such other Termination

Event, as the case may be, and will not constitute or give rise to an Illegality or a Force Majeure Event.

 

(iii)       If an event or circumstance  which would otherwise constitute or give rise to a Force Majeure Event

also constitutes an Illegality, it will be treated as an Illegality, except as described in clause (ii) above, and

not a Force Majeure Event.

 

(d)        Deferral of Payments and Deliveries During Waiting Period.  If an Illegality or a Force Majeure Event has

occurred and is continuing with respect to a Transaction, each payment or delivery which would otherwise be

required to be made under that Transaction will be deferred to, and will not be due until:—

 

(i)         the first Local Business Day or, in the case of a delivery, the first Local Delivery Day (or the first

day that would have been a Local Business Day or Local Delivery Day, as appropriate, but for the

occurrence of the event or circumstance constituting or giving rise to that Illegality or Force Majeure Event)

following the end of any applicable Waiting Period in respect of that Illegality or Force Majeure Event, as

the case may be; or

 

(ii)        if earlier, the date on which the event or circumstance constituting or giving rise to that Illegality or

Force Majeure Event ceases to exist or, if such date is not a Local Business Day or, in the case of a delivery,

a Local Delivery Day, the first following day that is a Local Business Day or Local Delivery Day, as

appropriate.

 

(e)        Inability of Head or Home Office to Perform Obligations of Branch. If (i) an Illegality or a Force

Majeure Event occurs under Section 5(b)(i)(1) or 5(b)(ii)(1) and the relevant Office is not the Affected Party’s head

or home office, (ii) Section 10(a) applies, (iii) the other party seeks performance of the relevant obligation or

compliance with the relevant provision by the Affected Party’s head or home office and (iv) the Affected Party’s head

or home office fails so to perform or comply due to the occurrence of an event or circumstance which would, if that

head or home office were the Office through which the Affected Party makes and receives payments and deliveries

with respect to the relevant Transaction, constitute or give rise to an Illegality or a Force Majeure Event, and such

failure would otherwise constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(1) with respect to such party

then, for so long as the relevant event or circumstance continues to exist with respect to both the Office referred to in

Section 5(b)(i)(1) or 5(b)(ii)(1), as the case may be, and the Affected Party’s head or home office, such failure will

not constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(1).

 

8

 

 

6.         Early Termination; Close-Out Netting

 

(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 other than a Force Majeure 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 the other party such other information about that

Termination Event as the other party may reasonably require. If a Force Majeure Event occurs, each party

will, promptly upon becoming aware of it, use all reasonable efforts to notify the other party, specifying the

nature of that Force Majeure Event, and will also give the other party such other information about that

Force Majeure Event as the other party may reasonably require.

 

(ii)   Transfer to Avoid Termination Event.  If 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, other than 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 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 of such occurrence is given under

Section 6(b)(i) to avoid that Termination Event.

 

(iv)  Right to Terminate.

 

(1)           If:—

 

(A)    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

 

(B)    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,

9

 

 

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 are two Affected Parties, or the Non-

affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if

there is only one Affected Party may, if the relevant Termination Event is then continuing, by not

more than 20 days notice to the other party, designate a day not earlier than the day such notice is

effective as an Early Termination Date in respect of all Affected Transactions.

 

(2)   If at any time an Illegality or Force Majeure Event has occurred and is then continuing

and any applicable Waiting Period has expired:—

 

(A)      Subject to clause (B) below, either party may, by not more than 20 days notice to

the other party, designate (I) a day not earlier than the day on which such notice becomes

effective as an Early Termination Date in respect of all Affected Transactions or (II) by

specifying in that notice the Affected Transactions in respect of which it is designating the

relevant day as an Early Termination Date, a day not earlier than two Local Business Days

following the day on which such notice becomes effective as an Early Termination Date in

respect of less than all Affected Transactions.  Upon receipt of a notice designating an

Early Termination Date in respect of less than all Affected Transactions, the other party

may, by notice to the designating party, if such notice is effective on or before the day so

designated, designate that same day as an Early Termination Date in respect of any or all

other Affected Transactions.

 

(b)      An Affected Party (if the Illegality or Force Majeure Event relates to performance

by such party or any Credit Support Provider of such party of an obligation to make any

payment or delivery under, or to compliance with any other material provision of, the

relevant Credit Support Document) will only have the right to designate an Early

Termination Date under Section 6(b)(iv)(2)(A) as a result of an Illegality under

Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2) following the prior

designation by the other party of an Early Termination Date, pursuant to

Section 6(b)(iv)(2)(A), in respect of less than 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 9(h)(i) 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 Sections 6(e) and 9(h)(ii).

 

(d)        Calculations; Payment Date.

 

(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 any

quotations, market data or information from internal sources used in making such calculations),

 

(2) specifying (except where there are two Affected Parties) any Early Termination Amount payable and

 

(3) 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 or market data obtained in determining a Close-out

Amount, the records of the party obtaining such quotation or market data will be conclusive evidence of the

existence and accuracy of such quotation or market data.

 

(ii)   Payment Date. An Early Termination Amount due in respect of any Early Termination Date will,

together with any amount of interest payable pursuant to Section 9(h)(ii)(2), be payable (1) on the day on

which 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 (2) on the day which is two Local Business Days after the

day on which notice of the amount payable is effective (or if there are two Affected Parties, after the day on

which the statement provided pursuant to clause (i) above by the second party to provide such a statement is

effective) in the case of an Early Termination Date which is designated as a result of a Termination Event.

 

10

 

 

(e)        Payments on Early Termination. If an Early Termination Date occurs, the amount, if any, payable in

respect of that Early Termination Date (the “Early Termination Amount”) will be determined pursuant to this

Section 6(e) and will be subject to Section 6(f).

 

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

Termination Amount will be an amount equal to (1) the sum of (A) the Termination Currency Equivalent of

the Close-out Amount or Close-out Amounts (whether positive or negative) determined by the Non-

defaulting Party for each Terminated Transaction or group of Terminated Transactions, as the case may be,

and (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less

 

(2) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If the Early

Termination 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 the Early Termination Amount

to the Defaulting Party.

 

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

 

(1)    One Affected Party. Subject to clause (3) below, if there is one Affected Party, the Early

Termination Amount will be determined in accordance with Section 6(e)(i), except that references

to the Defaulting Party and to the Non-defaulting Party will be deemed to be references to the

Affected Party and to the Non-affected Party, respectively.

 

(2)    Two Affected Parties. Subject to clause (3) below, if there are two Affected Parties, each

party will determine an amount equal to the Termination Currency Equivalent of the sum of the

Close-out Amount or Close-out Amounts (whether positive or negative) for each Terminated

Transaction or group of Terminated Transactions, as the case may be, and the Early Termination

Amount will be an amount equal to (A) the sum of (I) one-half of the difference between the higher

amount so determined (by party “X”) and the lower amount so determined (by party “Y”) and

(II) the Termination Currency Equivalent of the Unpaid Amounts owing to X less (B) the

Termination Currency Equivalent of the Unpaid Amounts owing to Y.  If the Early Termination

Amount is a positive number, Y will pay it to X, if it is a negative number, X will pay the absolute

value of the Early Termination Amount to Y.

 

(3)    Mid-Market Events. If that Termination is an Illegality or a Force Majeure Event,

then the Early Termination Amount will be determined in accordance with clause (1) or (2) above,

as appropriate, except that, for the purpose of determining a Close-out Amount or Close-out

Amounts, the Determining Party will:—

 

(A) if obtaining quotations from one or more third parties (or from any of the

Determining Party’s Affiliates), ask each third party or Affiliate (I) not to take account of

the current creditworthiness of the Determining Party or any existing Credit Support

Document and (II) to provide mid-market quotations; and

 

(B) in any other case, use mid market values without regard to the creditworthiness of

the Determining Party.

 

(iii)  Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because

“Automatic Early Termination” applies in respect of a party, the Early Termination Amount 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)  Adjust for Illegality or Force Majeure Event. The failure by a party or any Credit Support

Provider of such party to pay, when due, any Early Termination Amount will not constitute an Event of

Default under Section 5(a)(i) or 5(a)(iii)(1) if such failure is due to the occurrence of an event or

circumstance which would, if it occurred with respect to payment, delivery or compliance related to a

Transaction, constitute or give rise to an Illegality or a Force Majeure Event.  Such amount will (1) accrue

interest and otherwise be treated as an Unpaid Amount owing to the other party if subsequently an Early

Termination Date results from an Event of Default, a Credit Event Upon Merger or an Additional

Termination Event in respect of which all outstanding Transactions are Affected Transactions and

(2) otherwise accrue interest in accordance with Section 9(h)(ii)(2).

 

11

 

 

(v)   Pre‐Estimate. The parties agree that 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 the termination of the Terminated

Transactions.

 

(f)        Set-Off.  Any Early Termination Amount payable to one party (the “Payee”) by the other party (the

“Payer”), in circumstances where there is a Defaulting Party or where there is one Affected Party in the case where

either a Credit Event Upon Merger has occurred or any other Termination Event in respect of which all outstanding

Transactions are Affected Transactions has occurred, will, at the option of the Non-defaulting Party or the Non-

affected Party, as the case may be (“X”) (and without prior notice to the Defaulting Party or the Affected Party, as the

case may be), be reduced by its set-off against any other amounts (“Other Amounts”) payable by the Payee to the

Payer (whether or not arising under this Agreement, matured or contingent and irrespective of the currency, place of

payment or place of booking of the obligation).  To the extent that any Other Amounts are so set off, those Other

Amounts will be discharged promptly and in all respects.  X will give notice to the other party of any set-off effected

under this Section 6(f).

 

For this purpose, either the Early Termination Amount or the Other Amounts (or the relevant portion of such

amounts) may be converted by X into the currency in which the other is denominated at the rate of exchange at which

such party would be able, in good faith and using commercially reasonable procedures, to purchase the relevant

amount of such currency.

 

If an obligation is unascertained, X may in good faith estimate that obligation and set off in respect of the estimate,

subject to the relevant party accounting to the other when the obligation is ascertained.

Nothing in this Section 6(f) will be effective to create a charge or other security interest.  This Section 6(f) will be

without prejudice and in addition to any right of set-off, offset, combination of accounts, lien, right of retention or

withholding or similar right or requirement to which any party is at any time otherwise entitled or subject (whether by

operation of law, contract or otherwise).

 

7.         Transfer

Subject to Section 6(b)(ii), and to the extent permitted by applicable law, 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 Early Termination Amount payable

to it by a Defaulting Party, together with any amounts payable on or with respect to that interest and any other rights

associated with that interest pursuant to Sections 8, 9(h) and 11.

 

Any purported transfer that is not in compliance with this Section 7 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 good faith and using

commercially reasonable procedures 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.

 

12

 

 

(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 purpose

of such judgment or order and the rate of exchange at which such party is able, acting in good faith and using

commercially reasonable procedures 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.

 

(c)       Separate Indemnities. To the extent permitted by applicable law, the indemnities in this Section 8

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.

 

9.         Miscellaneous

 

(a)        Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties with

respect to its subject matter. Each of the parties acknowledges that in entering into this Agreement it has not relied

on any oral or written representation, warranty or other assurance (except as provided for or referred to in this

Agreement) and waives all rights and remedies which might otherwise be available to it in respect thereof, except that

nothing in this Agreement will limit or exclude any liability of a party for fraud.

 

(b)        Amendments. An amendment, modification or waiver in respect of this Agreement will only be effective if

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 and by electronic messaging system), 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

or by an exchange of e-mails, 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  or e-mail constitutes a Confirmation.

 

13

 

 

(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.

 

(h)        Interest and Compensation. 

 

(i)         Prior to Early Termination. Prior to the occurrence or effective designation of an Early

Termination Date in respect of the relevant Transaction:—

 

(1)        Interest on Defaulted Payments. If a party defaults in the performance of any payment

obligation, it will, to the extent permitted by applicable law and subject to Section 6(c), pay interest

(before as well as after judgment) on the overdue amount to the other party on demand in the same

currency as the overdue amount, for the period from (and including) the original due date for

payment to (but excluding) the date of actual payment (and excluding any period in respect of

which interest or compensation in respect of the overdue amount is due pursuant to clause (3)(B) or

(C) below), at the Default Rate.

 

(2)        Compensation for Defaulted Deliveries. If a party defaults in the performance of any

obligation required to be settled by delivery, it will on demand (A) compensate the other party to

the extent provided for in the relevant Confirmation or elsewhere in this Agreement and (B) unless

otherwise provided in the relevant Confirmation or elsewhere in this Agreement, to the extent

permitted by applicable law and subject to Section 6(c), pay to the other party interest (before as

well as after judgment) on an amount equal to the fair market value of that which was required to be

delivered in the same currency as that amount, for the period from (and including) the originally

scheduled date for delivery to (but excluding) the date of actual delivery (and excluding any period

in respect of which interest or compensation in respect of that amount is due pursuant to clause (4)

below), at the Default Rate. The fair market value of any obligation referred to above will be

determined as of the originally scheduled date for delivery, in good faith and using commercially

reasonable procedures, by the party that was entitled to take delivery.

 

(3)        Interest on Deferred Payment. If:—

 

(A)       a party does not pay any amount that, but for Section 2(a)(iii), would have been

payable, it will, to the extent permitted by applicable law and subject to Section 6(c) and

clauses (B) and (C) below, pay interest (before as well as after judgment) on that amount

to the other party on demand (after such amount becomes payable) in the same currency as

that amount, for the period from (and including) the date the amount would, but for

Section 2(a)(iii), have been payable to (but excluding) the date the amount actually

becomes payable, at the Applicable Deferral Rate;

 

(B)       a payment is deferred pursuant to Section 5(d), the party which would otherwise

have been required to make that payment will, to the extent permitted by applicable law,

subject to Section 6(c) and for so long as no Event of Default or Potential Event of Default

with respect to that party has occurred and is continuing, pay interest (before  as well as

after judgment) on the amount of the deferred payment to the other party on demand (after

such amount becomes payable) in the same currency as the deferred payment, for the

period from (and including) the date the amount would, but for Section 5(d), have been

payable to (but excluding) the earlier of the date the payment is not longer deferred

pursuant to Section 5(d) and the date during the deferral period upon which an Event of

Default or Potential Event of Default with respect to that party occurs, at the Applicable

Deferral Rate; or

 

14

 

 

(C)       a party fails to make any payment due to the occurrence of an Illegality or a Force

Majeure Event (after giving effect to any deferral period contemplated by clause (B)

above), it will, to the extent permitted by applicable law, subject to Section 6(c) and for so

long as the event or circumstance giving rise to that Illegality or Force Majeure Event

continues and no Event of Default or Potential Event of Default with respect to that party

has occurred and is continuing, pay interest (before as well as after judgment) on the

overdue amount to the other party on demand in the same currency as the overdue amount,

for the period from (and including) the date the party fails to make the payment due to the

occurrence of the relevant Illegality or Force Majeure Event (or, if later, the date the

payment is no longer deferred pursuant to Section 5(d)) to (but excluding) the earlier of the

date the event or circumstance giving rise to that Illegality or Force Majeure Event ceases

to exist and the date during the period upon which an Event of Default or Potential Event

of Default with respect to that party occurs (and excluding any period in respect of which

interest or compensation in respect of the overdue amount is due pursuant to clause (B)

above), at the Applicable Deferral Rate.

 

(4)        Compensation for Deferred Deliveries. If:—

 

(A)       a party does not perform any obligation that, but for Section 2(a)(iii), would have

been required to be settled by delivery;

 

(B)       a delivery is deferred pursuant to Section 5(d); or

 

(C)       a party fails to make a delivery due to the occurrence of an Illegality or a Force

Majeure Event at a time when any applicable Waiting Period has expired,

the party required (or that would otherwise have been required) to make the delivery will, to the

extent permitted by applicable law and subject to Section 6(c), compensate and pay interest to the

other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required) if

and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement

 

(ii)        Early Termination. Upon the occurrence or effective designation of an Early Termination Date in

respect of a Transaction:—

 

(1)        Unpaid Amounts. For the purpose of determining an Unpaid Amount in respect of the

relevant Transaction, and to the extent permitted by applicable law, interest will accrue on the

amount of any payment obligation or the amount equal to the fair market value of any obligation

required to be settled by delivery included in such determination the same currency as that

amount, for the period from (and including) the date the relevant obligation was (or would have

been but for Section 2(a)(iii) or 5(d)) required to have been performed to (but excluding) the

relevant Early Termination Date, at the Applicable Close-out Rate.

 

(2)        Interest on Early Termination Amounts. If an Early Termination Amount is due in respect

of such Early Termination Date, that amount will, to the extent permitted by applicable law, be paid

together with interest (before as well as after judgment) on that amount in the Termination

Currency, for the period from (and including) such Early Termination Date to (but excluding) the

date the amount is paid, at the Applicable Close-out Rate.

 

(iii)       Interest Calculation. Any interest pursuant to this Section 9(h) will be calculated on the basis of

daily compounding and the actual number of days elapsed.

 

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 and agrees with the other party that, notwithstanding the place

of booking office or its jurisdiction of incorporation or organisation, its obligations are the same in terms of recourse against

it as if it had entered into the Transaction through its head or home office, except that a party will not have recourse

to the head or home office of the other party in respect of any payment or delivery deferred pursuant to Section 5(d)

for so long as the payment or delivery is so deferred. This representation and agreement will be deemed to be

repeated by each party on each date on which the parties enter into a Transaction.

 

15

 

 

(b)       If a party is specified as a Multibranch Party in the Schedule, such party may, subject to clause (c) below,

enter into a Transaction through, book a Transaction in and make and receive payments and deliveries with respect to

a Transaction through any Office listed in respect of that party in the Schedule (but not any other Office unless

otherwise agreed by the parties in writing).

 

(c)        The Office through which a party enters into a Transaction will be the Office specified for that party in the

relevant Confirmation or as otherwise agreed by the parties in writing, and, if an Office for that party is not specified

in the Confirmation or otherwise agreed by the parties in writing, its head or home office. Unless the parties

otherwise agree in writing, the Office through which a party enters into a Transaction will also be the Office in which

it books the Transaction and the Office through which it makes and receives payments and deliveries with respect to

the Transaction. Subject to Section 6(b)(ii), neither party may change the Office in which it books the Transaction or

the Office through which it makes and receives payments or deliveries with respect to a Transaction without the prior

written consent of the other party.

 

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, execution 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 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

described below (except that a notice or other communication under Section 5 or 6 may not be given by electronic

messaging system or e-mail) to the address or number or in accordance with the electronic messaging system or

e-mail 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 it 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 it is delivered or its delivery is attempted;

 

(v)   if sent by electronic messaging system, on the date it is received, or

 

(vi)  if sent by e-mail, on the date it is delivered,

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 will be deemed given and effective on the first following day that is

a Local Business Day.

 

(b)        Change of Details. Either party may by notice to the other change the address, telex or facsimile number or

electronic messaging system or e-mail 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.

 

 

16

 

 

(b)        Jurisdiction. With respect to any suit, action or proceedings relating to any dispute arising out of or in

connection with this Agreement (“Proceedings”), each party irrevocably:—

 

(i)    submits:—

 

(1)      if this Agreement is expressed to be governed by English law, to (A) the non‐exclusive

jurisdiction of the English courts if the Proceedings do not involve a Convention Court and (B) the

exclusive jurisdiction of the English courts if the Proceedings do involve a Convention Court; or

 

(2)      if this Agreement is expressed to be governed by the laws of the State of New York, 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.

 

(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; and

 

(iii)  agrees, to the extent permitted by applicable law, that the bringing of Proceedings in any one or

more jurisdictions will not 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 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.(a)(i), 12(a)(iii) or 12(a)(iv). Nothing in this Agreement will

affect the right of either party to serve process in any other manner permitted by applicable law.

 

(d)        Waiver of Immunities. Each party irrevocably waives, to the 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, or

order for specific performance or 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 Representation” has the meaning specified in Section 3.

 

“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, Force Majeure

Event Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event

(which, in the case of an Illegality under Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2), means

all Transactions unless the relevant Credit Support Document references only certain Transactions, in which case

those Transactions and, if the relevant Credit Support Document constitutes a Confirmation for a Transaction, that

Transaction) 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.

 

“Agreement” has the meaning specified in Section 1(c).

17

 

 

“Applicable Close-out Rate” means:—

 

(a)    in respect of the determination of an Unpaid Amount:—

 

(i)       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;

 

(ii)      in respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii))

by a Non-defaulting Party, the Non-default Rate;

 

(iii)     in respect of obligations deferred pursuant to Section 5(d), if there is no Defaulting Party and for so

long as the deferral period continues, the Applicable Deferral Rate; and

 

(iv)     in all other cases following the occurrence of a Termination Event (except where interest accrues

pursuant to clause (iii) above), the Applicable Deferral Rate; and

 

(b)   in respect of an Early Termination Amount:—

 

(i)       for the period from (and including) the relevant Early Termination Date to (but excluding) the date

(determined in accordance with Section 6(d)(ii)) on which that amount is payable:—

 

(1)        if the Early Termination Amount is payable by a Defaulting Party, the Default Rate;

 

(2)        if the Early Termination Amount is payable by a Non-defaulting Party, the Non-default

Rate; and

 

(3)        in all other cases, the Applicable Deferral Rate; and

 

(ii)      for the period from (and including) the date (determined in accordance with Section 6(d)(ii) on

which that amount is payable to (but excluding) the date of actual payment:—

 

(1)        if a party fails to pay the Early Termination Amount due to the occurrence of an event or

circumstance which would, if it occurred with respect to a payment or delivery under a Transaction,

constitute or give rise to an Illegality or a Force Majeure Event, and for so long as the Early

Termination Amount remains unpaid due to the continuing existence of such event or circumstance,

the Applicable Deferral Rate;

 

(2)        if the Early Termination Amount is payable by a Defaulting Party (but excluding any

period in respect of which clause (1) above applies), the Default Rate;

 

(3)        if the Early Termination Amount is payable by a Non-defaulting Party (but excluding any

period in respect of which clause (1) above applies), the Non-default Rate; and

 

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

 

“Applicable Deferral Rate” means:—

 

(a)        for the purpose of Section 9(h)(i)(3)(A), the rate certified by the relevant payer to be a rate offered to the

payer by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to

be selected in good faith by the payer for the purpose of obtaining a representative rate that will reasonably reflect

conditions prevailing at the time in that relevant market;

 

(b)        for purposes of Section 9(h)(i)(3)(B) and clause (a)(iii) of the definition of Applicable Close-out Rate, the

rate certified by the relevant payer to be a rate offered to prime banks by a major bank in a relevant interbank market

for overnight deposits in the applicable currency, such bank to be selected in good faith by the payer after

consultation with the other party, if practicable, for the purpose of obtaining a representative rate that will reasonably

reflect conditions prevailing at the time in that relevant market; and

 

(c)        for purposes of Section 9(h)(i)(3)(C) and clauses (a)(iv), (b)(i)(3) and (b)(i)(3) and (b)(ii)(1) of the definition of

Applicable Close-out Rate, a rate equal to the arithmetic mean of the rate determined pursuant to clause (a) above and 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.

 

18

 

 

“Automatic Early Termination” has the meaning specified in Section 6(a).

 

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

 

“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 parties enter

into the relevant Transaction.

 

“Close-out Amount” means, with respect to each Terminated Transaction or each group of Terminated Transactions

and a Determining Party, the amount of the losses or costs of the Determining Party that are or would be incurred

under then prevailing circumstances (expressed as a positive number) or gains of the Determining Party that are or

would be realised under then prevailing circumstances (expressed as a negative number) in replacing, or in providing

for the Determining Party the economic equivalent of, (a) the material terms of that Terminated Transaction or group

of Terminated Transactions, including the payments and deliveries by the parties under Section 2(a)(i) in respect of

that Terminated Transaction or group of Terminated Transactions that would, but for the occurrence of the relevant

Early Termination Date, have been required after that date (assuming satisfaction of the conditions precedent in

Section 2(a)(iii) and (b) the option rights of the parties in respect of that Terminated Transaction or group of

Terminated Transactions.

 

Any Close-out Amount will be determined by the Determining Party (or its agent), which will act in good faith and

use commercially reasonable procedures in order to produce a commercially reasonable result. The Determining

Party may determine a Close-out Amount for any group of Terminated Transactions or any individual Terminated

Transaction but, in the aggregate, for not less than all Terminated Transactions. Each Close-out Amount will be

determined as of the Early Termination Date or, if that would not be commercially reasonable, as of the date or dates

following the Early Termination Date as would be commercially reasonable.

 

Unpaid Amounts in respect of a Terminated Transaction or group of Terminated Transactions and legal fees and out-

of-pocket expenses referred to in Section 11 are to be excluded in all determinations of Close-out Amounts.

In determining a Close-out Amount, the Determining Party may consider any relevant information, including, without

limitation, one or more of the following types of information:—

 

(i)         quotations (either firm or indicative) for replacement transactions supplied by one or more third parties that

may take into account the creditworthiness of the Determining Party at the time the quotation is provided and the

terms of any relevant documentation, including credit support documentation, between the Determining Party and the

third party providing the quotation;

 

(ii)        information consisting of relevant market data in the relevant market supplied by one or more third parties

including, without limitation, relevant rates, prices, yields, yield curves, volatilities, spreads, correlations or other

relevant market data in the relevant market; or

 

(iii)       information of the types described in clause (i) or (ii) above from internal sources (including any of the

Determining Party’s Affiliates) if that information is of the same type used by the Determining Party in the regular

course of its business for the valuation of similar transactions.

The Determining Party will consider, taking into account the standards and procedures described in this definition,

quotations pursuant to clause (i) above or relevant market data pursuant to clause (ii) above unless the Determining

Party reasonably believes in good faith that such quotations or relevant market data are not readily available or would

produce a result that would not satisfy those standards. When considering information described in clause (i), (ii) or

(iii) above, the Determining Party may include costs of funding, to the extent costs of funding are not and would not

be a component of the other information being utilised. Third parties supplying quotations pursuant to clause (i)

above or market data pursuant to clause (ii) above may include, without limitation, dealers in the relevant markets,

end-users of the relevant product, information vendors, brokers and other sources of market information.

 

Without duplication of amounts calculated based on information described in clause (i), (ii) or (ii) above, or other

relevant information, and when it is commercially reasonable to do so, the Determining Party may in addition

consider in calculating a Close-out Amount any loss or cost incurred in connection with its terminating, liquidating or

re-establishing any hedge related to a Terminated Transaction or group of Terminated Transactions (or any gain

resulting from any of them).

 

19

 

 

Commercially reasonable procedures used in determining a Close-out Amount may include the following:—

 

(1)        application to relevant market data from third parties pursuant to clause (ii) above or information from

internal sources pursuant to clause (iii) above of pricing or other valuation models that are, at the time of the

determination of the Close-out Amount, used by the Determining Party in the regular course of its business in pricing

or valuing transactions between the Determining Party and unrelated third parties that are similar to the Terminated

Transaction or group of Terminated Transactions; and

 

(2)        application of different valuation methods to Terminated Transactions or groups of Terminated Transactions

depending on the type, complexity, size or number of the Terminated Transactions or group of Terminated

Transactions.

 

“Confirmation” has the meaning specified in the preamble.

 

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

control consent.

 

“Contractual Currency” has the meaning specified in Section 8(a).

 

“Convention Court” means any court which is bound to apply to the Proceedings either Article 17 of the 1968

Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters or

Article 17 of the 1988 Lugano Convention on Jurisdiction and the Enforcement of Judgments in Civil and

Commercial Matters.

 

“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.

 

“Cross-Default” means the event specified in Section 5(a)(vi).

 

“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.

 

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

 

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

 

“Determining Party” means the party determining a Close-out Amount.

 

“Early Termination Amount” has the meaning specified in Section 6(e).

 

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

 

“electronic messages” does not include e-mails but does include documents expressed in markup languages, and

 

“electronic messaging system” will be construed accordingly.

 

“English Law” means the law of England and Wales, and “English” will be construed accordingly.

 

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

 

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

 

“General Business Day” means a day on which commercial banks are open for general business (including dealings

in foreign exchange and foreign currency deposits).

 

“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).

 

20

 

 

“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 “unlawful” will be construed accordingly.

 

“Local Business Day” means, (a) in relation to any obligation under Section 2(a)(i), a General Business Day in the

place or places specified in the relevant Confirmation and a day on which a relevant settlement system is open or

operating as specified in the relevant Confirmation or, if a place or a settlement system is 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) for the purpose of determining when a Waiting Period expires, a General Business

Day in the place where the event or circumstance that constitutes or gives rise to the Illegality or Force Majeure

Event, as the case may be, occurs, (c) in relation to any other payment, a General Business Day 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,

and, if that currency does not have a single recognised principal financial centre, a day on which the settlement

system necessary to accomplish such payment is open, (d) in relation to any notice or other communication, including

notice contemplated under Section 5(a)(i), a General Business Day (or a day that would have been a General

Business Day but for the occurrence of an event or circumstance which would, if it occurred with respect to payment,

delivery or compliance related to a Transaction, constitute or give rise to an Illegality or a Force Majeure Event) in

the place 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 (e) in relation to Section 5(a)(v)(2), a

General Business Day in the relevant locations for performance with respect to such Specified Transaction.

 

“Local Delivery Day” means, for purposes of Sections 5(a)(i) and 5(d), a day on which settlement systems necessary

to accomplish the relevant delivery are generally open for business so that the delivery is capable of being

accomplished in accordance with customary market price, in the place specified in the relevant Confirmation or, if

not so specified, in a location as determined in accordance with customary market practice for the relevant delivery.

 

“Master Agreement” has the meaning specified in the preamble.

 

“Merger Without Assumption” means the event specified in Section 5(a)(viii).

 

“Multiple Transaction Pay Netting” has the meaning specified in Section 2(c).

 

“Non-affected Party” means, so long as there is one Affected Party, the other party.

 

“Non‐default Rate” means the rate certified by the Non-defaulting Party to be rate offered to the Non-defaulting

Party by a major bank in a relevant interbank market for overnight deposits in the applicable currency, such bank to

be selected in good faith by the Non-defaulting Party for the purpose of obtaining a representative rate that will

reasonably reflect conditions prevailing at the time in that relevant market.

 

“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.

 

“Other Amounts” has the meaning specified in Section 6(f).

 

“Payee” has the meaning specified in Section 6(f).

 

“Payer” has the meaning specified in Section 6(f).

 

“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.

 

“Proceedings” has the meaning specified in Section 13(b).

 

“Process Agent” has the meaning specified in the Schedule.

 

“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.

 

21

 

 

“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.

 

“Schedule” has the meaning specified in the preamble.

 

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

respect to a Transaction.

 

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

 

“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 to

any such transaction) 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

not a Transaction under this Agreement but (i) which is a rate swap transaction, swap option, 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, credit protection transaction, credit

swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction,

reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, weather index transaction or

forward purchase or sale of a security, commodity or other financial instrument or interest (including any option with

respect to any of these transactions) or (ii) which is a type of transaction that is similar to any transaction referred to

in clause (i) above that is currently, or in the future becomes, recurrently entered into in the financial markets

(including terms and conditions incorporated by reference in such agreement) and which is a forward, swap, future,

option or other derivative on one or more rates, currencies, commodities, equity securities or other equity

instruments, debt securities or other debt instruments, economic indices or measures of economic risk or value, or

other benchmarks against which payments or deliveries are to be made, (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.

 

“Stamp Tax Jurisdiction” has the meaning specified in Section 4(e).

 

“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 an Illegality or

a Force Majeure Event, all Affected Transactions specified in the notice given pursuant to Section 6(b)(iv), (b) if

resulting from any other Termination Event, all Affected Transactions and (c) if resulting from an Event of Default,

all Transactions in effect either 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” means (a) if a Termination Currency is specified in the Schedule and that currency is freely

available, that currency, and (b) otherwise, euro if this Agreement is expressed to be governed by English law or

United States Dollars if this Agreement is expressed to be governed by the laws of the State of New York.

 

“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 Close-out Amount 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.

 

22

 

 

“Termination Event” means an Illegality, a Force Majeure Event, a Tax Event, 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.

 

“Threshold Amount” means the amount, if any, specified as such in the Schedule.

 

“Transaction” has the meaning specified in the preamble.

 

“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)) or due but for Section 5(d)) to such party under Section 2(a)(i) or 2(d)(i)(4) 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)) or

5(d)) 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 value of that which was (or

would have been) required to be delivered and (c) if the Early Termination Date results from an Event of Default, a

Credit Event Upon Merger or an Additional Termination Event in respect of which all outstanding Transactions are

Affected Transactions, any Early Termination Amount due prior to such Early Termination Date and which remains

unpaid as of such Early Termination Date, in each case together with any amount of interest accrued or other

compensation in respect of that obligation or deferred obligation, as the case may be, pursuant to Section 9(h)(ii)(1)

or (2), as appropriate.  The fair market value of any obligation referred to in clause (b) above will be determined as of

the originally scheduled date for delivery, in good faith and using commercially reasonable procedures, by the party

obliged to make the determination under section 6(e) or, if each party is so obliged, it will be the average of the

Termination Currency Equivalents of the fair market values so determined by both parties.

 

“Waiting Period” means:—

 

(a)        in respect of an event or circumstance under Section 5(b)(i), other than in the case of Section 5(b)(i)(2)

where the relevant payment, delivery or compliance is actually required on the relevant day (in which case no

Waiting period will apply), a period of three Local Business Days (or days that would have been Local Business

Days but for the occurrence of that event or circumstance) following the occurrence of that event or circumstance; and

 

(b)        in respect of an event or circumstance under Section 5(b)(ii), other than in the case of Section 5(b)(ii)(2)

where the relevant payment, delivery or compliance is actually required on the relevant day (in which case no

Waiting Period will apply), a period of three Local Business Days (or days that would have been Local Business

Days but for the occurrence of that event or circumstance) following the occurrence of that event or circumstance.

23

 

 

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.

 

	
			KeyBank National Association

				 	
			Bel Fuse Inc

			
	 	 	 
	
			By: /s/ Linda Maraldo     

			 Name:  Linda Maraldo      

			 Title:    Assistant Vice President   

			 Date:   11-23-2021       

				 	
			By: /s/ Farouq Tuweiq     

			 Name:   Farouq Tuweiq

			 Title:  CFO

			 Date:  11/23/2021

			

 

 

 

24

 

 

ISDA

International Swaps and Derivatives Association. Inc.

 

SCHEDULE

to the

2002 Master Agreement

 

dated as of November 16, 2021

between

 

KeyBank National Association,

a national banking association organized and existing

under the laws of the United States of America

("Party A"),

 

and

 

BEL FUSE INC.,

a corporation

organized and existing under the laws of the State of New Jersey

("Party B")

 

This Agreement will amend, restate and supersede any ISDA Master Agreement and Schedule between Party A (or any predecessor entity) and party B (or any predecessor entity) and any similar agreements, including the KeyBank National Association Foreign Exchange Terms and Conditions, governing transactions that have been entered into between the parties that would otherwise constitute a “Transaction” for purposes of this Agreement (collectively, the “Prior Agreements”) whereupon all such Prior Agreements shall terminate; provided that all transactions under the Prior Agreements shall hereafter be deemed to be a Transaction governed by, subject to, and construed in accordance with this Agreement.

 

Part 1

Termination Provisions

 

	 	
			a.

				
			"Specified Entity" means in relation to Party A for the purposes of Sections 5(a)(v), 5(a)(vi), 5(a)(vii) and 5(b)(v):

			

 

None.

 

"Specified Entity" means in relation to Party B for the purposes of Sections 5(a)(v), 5(a)(vi), 5(a)(vii) and 5(b)(v):

 

Any Affiliate of Party B.

 

	 	
			b.

				
			"Specified Transaction" will have the meaning specified in Section 14 as amended by inserting the words, "or any Affiliate of Party A" immediately after "Agreement" in the second line thereof.

			

 

25

 

 

	 	
			c.

				
			The "Cross-Default" provisions of Section 5(a)(vi) will apply to Party A and will apply to Party B. Section 5(a)(vi) of this Agreement is hereby amended by (i) deleting the phrase ", or becoming capable at such time of being declared," from clause (1); and (ii) adding the following after the semicolon at the end thereof:

			

 

"provided, however, that, notwithstanding the foregoing, an Event of Default shall not occur under either (1) or (2) above if (I) the default, or other similar event or condition referred to in (I ) or the failure to pay referred to in (2) is a failure to pay or deliver caused by an error or omission of an administrative or operational nature, and (II) funds or the asset to be delivered were available to such party to enable it to make the relevant payment or delivery when due and (III) such payment or delivery is made within three (3) Local Business Days following receipt of written notice from an interested party of such failure to pay."

 

In connection therewith, "Specified Indebtedness" will have the meaning specified in Section 14, except that such term shall not include obligations in respect of deposits received in the ordinary course of a party's banking business.

 

"Threshold Amount" means with respect to Party A, with respect to Party A, three percent (3%) of its Total Equity Capital as reported on Schedule RC of its most recent Consolidated Report of Condition and Income as filed with its U.S. federal bank regulatory authorities (Call Report) and with respect to Party B, USD 10,000,000.

 

"Credit Agreement" means the Amended and Restated Credit and Security Agreement dated as of September 2, 2021, by and among Party B, Party A and the other lenders party thereto from time to time, and KeyBank National Association as administrative agent (as amended, extended, supplemented or otherwise modified in writing from time to time).

 

With respect to Party B, an Event of Default (as such term is defined in the Credit Agreement) under the Credit Agreement shall be an Event of Default under this Agreement.

 

	 	
			d.

				
			The "Credit Event Upon Merger" provisions of Section 5(b)(v): will apply to Party A and will apply to Party B.

			

 

(e)       The "Automatic Early Termination" provision of Section 6(a): will not apply to Party A and will not apply to Party B.

 

(f)       "Termination Currency" means United States Dollars ("USD").

 

(g)        Additional Termination Event will apply. The following will constitute Additional Termination Events:-

 

	 	
			i.

				
			It shall be an Additional Termination Event, with respect to which Party B shall be the sole Affected Party, if for any reason either (A) Party A's obligation to lend under the Credit Agreement is terminated or (B) Party A ceases to be a party to the Credit Agreement, or have any commitments under the Credit Agreement.

			

 

	 	
			ii.

				
			It shall be an Additional Termination Event, with respect to which Party B shall be the sole Affected Party, if (A) Party A ceases to be a Secured Party under the Credit Agreement, (B) the guarantee obligations of the loan parties under the Credit Agreement do not extend to the obligations of Party B hereunder, (C) all or substantially all of the collateral under the Credit Agreement and related loan documents is released without the prior written consent of Party A or (D) the obligations and liabilities of Party B hereunder fail to be senior secured, pari passu and equal in right and priority of payment with the Loans under the Credit Agreement.

			

	 	
			 

				 

26

 

 

 

Part 2

Tax Representations

 

	 	
			a.

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

			

 

It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 9(h) of this Agreement) to be made by it to the other party under this Agreement. In making this representation, it may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, except that it will not be a breach of this representation where reliance is placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position.

 

	 	
			b.

				
			Payee Tax Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B make the representations specified below, if any:

			

 

(i)            The following representations will apply to Party A:

 

	 	
			1.

				
			Party A is a national banking association organized and existing under the laws of the United States of America, is an exempt recipient under Treasury Regulation Section 1.6049-4(c)(1)(ii)(M).

			

 

	 	
			2.

				
			It is a "U.S. person" (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes.

			

 

(ii)           The following representations will apply to Party B:

 

	 	
			1.

				
			Party B is a corporation for U.S. federal income tax purposes and is organized under the laws of the State of New Jersey.

			

 

	 	
			2.

				
			It is a "U.S. person" (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes and an exempt recipient under Treasury Regulation Section l .6049-4(c)(1)(ii).

			

27

 

 

 

Part 3

Agreement to Deliver Documents

 

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

 

	 	
			a.

				
			Tax forms, documents or certificates to be delivered are:

			

 

	
			Party required to deliver document

				
			Document

				
			Date by which to be delivered

			
	
			Party A

				
			A valid U.S. Internal Revenue Service Form W-9 or any successor thereto.

				
			i.         Upon execution and delivery of this Agreement, (ii) promptly upon reasonable demand by Party B, and (iii) promptly upon learning that any such tax form previously provided by

			ii.         Party A has become obsolete or incorrect.

			
	
			Party B

				
			A valid U.S. Internal Revenue Service Form W-9 or any successor thereto.

				
			(i) Upon execution and delivery of this Agreement, (ii) promptly upon reasonable demand by Party B, and (iii) promptly upon learning that any such tax form previously provided by Party B has become obsolete or incorrect.

			

 

28

 

 

	
			Party required to deliver document

				
			Form/Document/Certificate

				
			Date by which to be delivered

				Covered by Section 3(d) Representation
	
			Party A

				 A copy of the Call Report filed by Party A with the Office of the Comptroller of the Currency for the most recently ended quarter accordance with generally accepted accounting principles in the country in which such party is organized.	
			Upon request if not available at https://cdr.ffiec.gov/public/ManageFacsimiles.aspx 

				Yes
	
			Party B

				
			Annual Report of Party B and of any Credit Support Provider thereof containing audited, consolidated financial statements

				
			 As soon as available and in any event within 90 days after the end of each fiscal year of Party B and of the Credit Support Provider

				Yes
	Party B	Quarterly Financial Statements of Party B and any Credit Support Provider thereof containing unaudited, consolidated financial statements of such party's fiscal quarter prepared in accordance with generally accepted accounting principles in the country in which such party and such Credit Support Provider is organized.	 As soon as available and in any event within 45 days after the end of each fiscal quarter of Party B and of the Credit Support Provider.	Yes

 

29

 

 

	
			Part 4

			

Miscellaneous

 

	 	
			a.

				
			Address for Notices. For the purpose of Section 12(a) of this Agreement: Address for notices or communications to Party A:-

			

 

KeyBank National Association

127 Public Square, OH-01-27-0405

Cleveland, Ohio  44114-1306                                                                                  

Attention:  Interest Rate & Commodity Derivatives                                                  

Facsimile No.:  (216) 689-4737

Telephone No.:  (216) 689-3635

 

Additional address for notices and communications to Party A for the purpose of Sections 5 and 6 of this Agreement:-

 

 

KeyBank National Association

127 Public Square, OH-01-27-0200

Cleveland, Ohio 44114-1306

Attention:  Derivatives Attorney

Facsimile No.:  (216) 689-5681

Telephone No.:  (216) 689-0509

 

 

Address for notices or communications to Party B:-

 

Bel Fuse Inc.

206 Van Vorst St.

Jersey City NJ 07302

 

Attention: Marc Pryor

Telephone No.: 201-432-0463

Emai1: Marc.Pryor@belf.com

 

Any notice, demand or other communication to be provided by Party A pursuant to this Agreement (including, without limitation, any notice, demand or communication pursuant to Section 6(a) or Section 6(b)(iv) of this Agreement) shall be effective when sent to the address of Party B provided in this Part 4(a) without regard to the delivery to any other persons required to be copied on distributions to Party B. Any failure by Party A to provide copies to such other entities or persons shall in no way abrogate, invalidate or otherwise affect the validity or enforceability of the notice, demand or communication or the matters set forth therein, including, without limitation, the designation of an Event of Default, Termination Event, Early Termination Date or any other such matter.

 

	 	
			b.

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

			Party A appoints as its Process Agent: Not Applicable.

			Party B appoints as its Process Agent: Not Applicable.

			

 

	 	
			c.

				
			Offices. The provisions of Section 10(a) will apply to this Agreement.

			

 

	 	
			d.

				
			Multibranch Party. For the purpose of Section 10(b) of this Agreement:

			

 

Party A is not a Multibranch Party.

 

Party B is not a Multibranch Party.

 

30

 

 

	 	
			e.

				
			Calculation Agent. The Calculation Agent is Party A unless an Event of Default has occurred and is continuing with respect to Party A, in which case Party B may appoint a “Leading Dealer” in the

			

relevant market to act as Calculation Agent for so long as such Event of Default is continuing. A “Leading Dealer” means a financial institution of national repute that is a “swap dealer” (as defined in the Commodity Exchange Act, as amended, and the related regulations issued by the U.S. Commodity Futures Trading Commission) in the relevant market that is not an Affiliate of either of the parties.

 

	 	
			f.

				
			Credit Support Document. Details of any Credit Support Document:

			

 

Each of the following, as amended, extended, supplemented or otherwise modified in writing from time to time, is a "Credit Support Document":

 

In relation to Party A, not applicable.

 

In relation to Party B, the Credit Agreement and the other applicable Loan Documents, including without limitation, the Guaranty of Payment and the Security Documents, (as each such term is defined in the Credit Agreement).

 

Party B agrees that the security interests in collateral granted to Party A under the foregoing Credit Support Documents shall secure the obligations of Party B to Party A under this Agreement.

 

	 	
			g.

				
			Credit Support Provider.

			

 

Credit Support Provider means in relation to Party A: Not Applicable.

 

Credit Support Provider means in relation to Party B: Each grantor of a pledge, security interest or other form of hypothecation under any Credit Support Document, and any Guarantor (as such term

 

is defined in the Credit Agreement) is a Credit Support Provider.

 

Notwithstanding the foregoing, with respect to any guarantee deemed, pursuant to its terms, to cover the obligations of Party B under this Agreement (the "Swap Obligations") that is provided by a guarantor which is not an "Eligible Contract Participant" (as defined in Section 1a(18) of the Commodity Exchange Act, as amended) (as such, a "Non-ECP") at the time a Transaction under this Agreement is entered into, the Parties hereto agree that such guarantee shall not be effective against any such Non-ECP with respect to Party B's Swap Obligations hereunder relating to such Transaction.

 

	 	
			h.

				
			Governing Law; Jurisdiction. This Agreement and any and all controversies arising out of or in relation to this Agreement shall be governed by and construed in accordance with the laws of the

			

State of New York (without reference to its conflict of laws doctrine).

 

Section 13 is amended by (i) deleting in Section 13(b)(i)(2) the word "non-exclusive" and replacing it with "exclusive" and (ii) deleting Section 13(b)(iii) in its entirety.

 

	 	
			i.

				
			Netting of Payments. Unless the parties otherwise so agree, "Multiple Transaction Payment Netting" will apply for the purpose of Section 2(c) of this Agreement to all Transactions, starting

			

 

as of the date of this Agreement.

 

31

 

 

	 	
			j.

				
			"Affiliate" will have the meaning specified in Section 14 of this Agreement.

			

 

	 	
			k.

				
			Absence of Litigation. For the purpose of Section 3(c):

			

 

"Specified Entity" means in relation to Party A, none;

 

"Specified Entity" means in relation to Party B, any Affiliate of Party B.

 

(l)         No Agency. The provisions of Section 3(g) will apply to this Agreement.

 

(m)       Additional Representation will apply. For the purpose of Section 3 of this Agreement, each of the following will constitute an Additional Representation, which will be made by the party indicated below at the times specified below:

 

	 	
			i.

				
			Mutual Representations. Each party makes the following representations 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):

 

(A)   Relationship Between Parties. Absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction:

 

	 	
			1.

				
			Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisors as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that Transaction, it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. No communication (written or oral) received from the other party will be deemed to be an assurance or guarantee as to the expected results of that Transaction.

			

 

	 	
			2.

				
			Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the risks of that Transaction.

			

 

	 	
			3.

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

			

 

(B)       Eligible Contract Participant. It is an "eligible contract participant" and that each guarantor of its Swap Obligations (as defined below), if any, is an "eligible contract participant," as such term is defined in the U.S. Commodity Exchange Act, as amended. "Swap Obligation" means any obligation incurred with respect to a transaction that is a "swap" as defined in the Section l a(47) of the Commodity Exchange Act and CFTC Regulation 1.3(xxx).

 

(ii)        Municipal Advisor Rule. Party B hereby represents, and will be deemed to represent at all times until the termination of the Agreement, that it is not, and does not act on behalf of, either a "municipal entity" or "obligated person" (in each case as defined in Section 15B of the Securities Exchange Act of 1934 and the rules adopted by the SEC with respect to municipal advisor registration).

 

32

 

 

(n)          Recording of Conversations. Each party to this Agreement acknowledges and agrees to the recording of conversations between trading and marketing personnel of the parties to this Agreement whether by one or the other or both of the parties or their agents.

 

Part 5

Other Provisions

 

(a)         Financial Statements. Section 3(d) is hereby amended by adding in the third line thereof after the word "respect" and before the period: "or, in the case of financial statements, a fair presentation of the financial condition of the relevant party".

 

	 	
			b.

				
			2002 Master Agreement Protocol. Annexes I to 18 and Section 6 of the ISDA 2002 Master Agreement Protocol as published by the International Swaps and Derivatives Association, Inc. on July 15, 2003 are incorporated into and apply to this Agreement. References in those definitions and provisions to any ISDA Master Agreement will be deemed to be references to this Master Agreement.

			

 

	 	
			c.

				
			Consent to Disclosure.

			

 

(i)           (A) Party B consents to the disclosure to Party A's Affiliates, as Party A may deem appropriate, of records and information disclosed to or otherwise provided to Party A by Party B for the purpose of processing and executing Party B's instructions, or in pursuance of Party A's or Party B's commercial interest, and (B) for the avoidance of doubt, such consent gives Party A the right to allow any intended recipient of such Party B information access, by any means, to such Party B information.

 

(ii)          Each party hereby consents to the disclosure of information:

 

	 	
			A.

				
			to the extent required or permitted under, or made in accordance with, the provisions of any applicable law, rule or regulation, including the European Market Infrastructure Regulation ("EMIR") and the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd Frank") and any applicable supporting law, rule or regulation ("Reporting Regulation"), which mandate reporting and/or retention of transaction and similar information or to the extent required or permitted under, or made in accordance with, any order or directive in relation to (and including) such Reporting Regulation regarding reporting and/or retention of transaction and similar information issued by any authority or body or agency in accordance with which the other party is required or accustomed to act ("Reporting Requirements"); and

			

 

	 	
			B.

				
			to and between the other party's head office, branches or Affiliates, or any persons or entities who provide services to such other party or its head office, branches or Affiliates, in each case, in connection with such Reporting Requirements. Each party acknowledges that pursuant to the relevant Reporting Regulation, regulators require reporting of trade data to increase market transparency and enable regulators to monitor systemic risk to ensure safeguards are implemented globally.

			

 

(iii)       Each party acknowledges that:

 

33

 

 

(A)       disclosures made pursuant to this Part 5(c) may include, without limitation, the disclosure of trade information including a party's identity (by name, address, corporate affiliation, identifier or otherwise) to any trade repository registered or recognized in accordance with the relevant Reporting Regulation, including Article 55 of EMIR, Article 77 of EMIR or with CFTC Rule published on September 1, 2011 with respect to Swap Data Repositories (76 FR 54538) or one or more systems or services operated by any such trade repository ("TR") and any relevant regulators (including without limitation, the U.S. Commodity Futures Trading Commission or other U.S. regulators in the case of trade reporting under applicable U.S. laws, the European Securities and Markets Authority and national regulators in the European Union) under the Reporting Regulation; such disclosures could result in certain anonymous transaction and pricing data becoming available to the public;

 

	 	
			B.

				
			for purposes of complying with regulatory reporting obligations, a party may use a third party service provider to transfer trade information into a TR and any such TR may engage the services of a global trade repository regulated by one or more governmental regulators; and

			

 

	 	
			C.

				
			disclosures made pursuant hereto may be made to recipients in a jurisdiction other than that of the disclosing party or a jurisdiction that may not necessarily provide an equivalent or adequate level of protection for personal data as the counterparty's home jurisdiction.

			

 

(iv)       For the avoidance of doubt, (A) to the extent that applicable non-disclosure, confidentiality, bank secrecy, data privacy or other law imposes non-disclosure requirements on transaction and similar information required or permitted to be disclosed as contemplated herein but permits a party to waive such requirements by consent, the consent and acknowledgements provided herein shall be a consent by each party for purposes of such law; (B) any agreement between the parties to maintain confidentiality of information contained herein or in any non-disclosure, confidentiality or other agreement shall continue to apply to the extent that such agreement is not inconsistent with the disclosure of information in connection with the Reporting Requirements as set out herein; and (C) nothing herein is intended to limit the scope of any other consent to disclosure separately given by each party to the other party.

 

	 	
			d.

				
			Transfer. Notwithstanding the provisions of Section 7, Party A may assign and delegate its rights and obligations subject to the consent of Party B (not to be unreasonably withheld), under (i) any one or more Transactions or (ii) this Agreement and all Transactions hereunder (the "Transferred Obligations") to any direct or indirect affiliate of Party A (the "Assignee") by notice specifying the effective date of such transfer ("Effective Date") and including an executed acceptance and assumption by the Assignee of the Transferred Obligations.

			

 

On the Effective Date, (a) Party A shall be released from all obligations and liabilities arising under the Transferred Obligations; and (b) if Party A has not assigned and delegated its rights and obligations under this Agreement and all Transactions hereunder, the Transferred Obligations shall cease to be Transaction(s) under this Agreement and shall be deemed to be Transaction(s) under the master agreement, if any, between Assignee and Party B, provided that, if at such time Assignee and Party B have not entered into a master agreement, Assignee and Party B shall be deemed to have entered into an ISDA 2002 form of Master Agreement with a Schedule substantially in the form hereof but amended to reflect the name of the Assignee and the address for notices and any amended representations under Part 2 hereof as may be specified in the notice of transfer.

 

34

 

 

	 	
			e.

				
			Intentionally omitted.

			

 

(f)         WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY CREDIT SUPPORT DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

	 	
			g.

				
			Method of Notice. Section 12(a)(ii) of the Master Agreement is deleted in its entirety and replaced with "(ii) [RESERVED];".

			

 

	 	
			h.

				
			Withholding Tax imposed on payments to non-US counterparties under the United States Foreign Account Tax Compliance Act. "Tax" as used in Part 2(a) of this Schedule (Payer Tax Representation) and "Indemnifiable Tax" as defined in Section 14 of this Agreement shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a "FATCA Withholding Tax"). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section 2(d) of this Agreement.

			

 

This Part 5(h) shall replace any "Express Provisions" where "Express Provisions" means any provisions expressly set out in any confirmation of a Transaction that supplements, forms a part of, and is subject to, this ISDA Master Agreement; that provide for amendments to (i) any Payer Tax Representation contained in this ISDA Master Agreement, (ii) Section 2(d) of this ISDA Master Agreement, or (iii) the definition of "Indemnifiable Tax" in this ISDA Master Agreement, in each case, only in relation to FATCA Withholding Tax.

 

	 	
			i.

				
			HIRE Act. Notwithstanding Section 1(b) of this Agreement and any provision that is inconsistent or to the contrary in any Confirmation, to the extent that either party to this Agreement is not an adhering party to the ISDA 2015 Section 871(m) Protocol published by the International Swaps and Derivatives Association, Inc. on November 2, 2015 and available at www.isda.org, as may be amended, supplemented, replaced or superseded from time to time (the "871(m) Protocol"), the parties agree that the provisions and amendments contained in the Attachment to the 871(m) Protocol are incorporated into and apply to this Agreement as if set forth in full herein, and each Confirmation dated prior to the date hereof or on or subsequent to the date hereof is hereby amended to reflect such provisions and amendments. The parties further agree that, solely for purposes of applying such provisions and amendments to this Agreement, references to "each Covered Master Agreement" in the 871(m) Protocol will be deemed to be references to this Agreement, and references to the "Implementation Date" in the 871(m) Protocol will be deemed to be references to the date of this Agreement.

			

 

	 	
			j.

				
			Intentionally omitted.

			

 

(k)        Incorporation by Reference of Terms of Credit Agreement. The covenants, terms and provisions of, including all representations and warranties of Party B contained in the Credit Agreement, as in effect as of the date of this Agreement, are hereby incorporated by reference in, and made part of, this Agreement to the same extent as if such covenants, terms, and provisions were set forth in full herein. Party B hereby agrees that, during the period commencing with the date of this Agreement through and including such date on which all of Party B's obligations under this Agreement are fully performed, Party B will (i) observe, perform, and fulfill each and every such covenant, term, and provision applicable to Party B, as such covenants, terms, and provisions, may be amended from time to time after the date of this Agreement with the consent of Party A and (ii) deliver to Party A at the address for notices to Party A provided in Part 4 each notice, document, certificate or other writing as Party B is obligated to furnish to any other party to the Credit Agreement. In the event the Credit Agreement terminates or becomes no longer binding on Party B prior to the termination of this Agreement, such covenants, terms, and provisions (other than those requiring payments in respect of amounts owed under the Credit Agreement) will remain in force and effect for purposes of this Agreement as though set forth in full herein until the date on which all of Party B's obligations under this Agreement are fully performed, and this Agreement is terminated.

 

35

 

 

(l)         Hedge Agreement. Party B represents to Party A (which representation will be deemed to be repeated by Party B on each date on which a Transaction is entered into) that this Agreement is a Hedge Agreement (as such term is defined in the Credit Agreement).

 

Part 6

Additional Terms for Foreign Exchange and Foreign Exchange Option Transactions

 

(a)     Incorporation of Definitions. The 1998 FX and Currency Option Definitions (the "FX Definitions"), published by the International Swaps and Derivatives Association, Inc., the Emerging Markets Traders Association and The Foreign Exchange Committee, are hereby incorporated by reference with respect to FX Transactions (as defined in the FX Definitions) and Currency Option Transactions (as defined in the FX Definitions). Terms defined in the FX Definitions shall have the same meanings in this Part 6. Unless otherwise amended herein, this Agreement incorporates, and is subject to and governed by, the FX Definitions.  In the event of any inconsistency between the Definitions and the FX Definitions, the FX Definitions shall prevail with respect to an FX Transaction or a Currency Option Transaction.  In the event of any inconsistency between the provisions of this Agreement and the Definitions or the FX Definitions, the provisions of this Agreement shall prevail.

 

	 	
			b.

				
			Scope. Unless otherwise agreed in writing by the parties, each FX Transaction and Currency Option Transaction entered into between the parties before, on or after the date of this Agreement shall be a Transaction under this Agreement and shall (to the extent not otherwise provided for in this Agreement) (i) constitute a “Confirmation” as referred to in this Agreement  even where not so specified in such confirmation and (ii) supplement form a part of, and be subject to this Agreement, and all provisions in this Agreement will govern such Confirmation except as modified therein.

			

 

When an FX Transaction or a Currency Option is confirmed by means of exchange of electronic messages on an electronic messaging system or other document or other confirming evidence exchanged between the parties confirming such Transaction, such messages, document or evidence will constitute a Confirmation for the purposes of this Agreement even where not so specified therein.

 

	 	
			c.

				
			Modifications to FX Definitions. Section 3.4 of the FX Definitions is hereby amended by adding a new paragraph (c) as follows:--

			

 

“(c)  Terms Relating to Payment of Premiums. 

 

36

 

 

(i)         Unless otherwise agreed in writing by the parties, the Premium for any Currency Option Transaction shall be paid on its Premium Payment Date.

 

(ii)        If the Premium is not paid on its Premium Payment Date, the Seller may elect:

 

	 	
			A.

				
			to accept a late payment of such Premium;

			

 

(B)       to give written notice of such non-payment and, if such payment shall not be received within three (3) Local Business Days of such notice, treat the related Currency Option as void; or

 

(C)       to give written notice of such non-payment and, if such payment shall not be received within three (3) Local Business Days of such notice, treat such non-payment as an Event of Default under Section 5(a)(i) of the Agreement.

 

(iii)       If the Seller elects to act under either (A) or (B) above, the Buyer shall pay all out-of-pocket costs and actual damages incurred in connection with such unpaid or late Premium or void Currency Option, including, without limitation, interest on such Premium from and including the Premium Payment Date to but excluding the late payment date in the same currency as such Premium at the prevailing market rate and any other losses, costs or expenses incurred by the Seller in connection with such terminated Currency Option Transaction, for the loss of its bargain, its cost of funding, or the loss incurred as a result of terminating, liquidating, obtaining or re-establishing a delta hedge or related trading position with respect to such Currency Option.”

 

	 	
			d.

				
			Potential Event of Default. Subject to Section 2(a)(iii) of the Agreement, if an Event of Default or Potential Event of Default has occurred and is continuing, and an Early Termination Date has not been designated by the Non-defaulting Party, the Non-defaulting Party may, by written notice, specify that any or all Currency Options being settled while such Event of Default or Potential Event of Default is continuing shall be settled in accordance with Article 3, Section 3.7 of the FX Definitions and upon such notice becoming effective, the parties shall be deemed to have elected to have the specified Currency Options settle at the In-the-Money Amount unless and until the Event of Default or Potential Event of Default is no longer continuing.

			

 

	 	
			e.

				
			Netting Discharge and Termination of Currency Option Transactions.  Section 2(c) of this Agreement is amended by adding the following language at the end of the section:--

			

 

From a date to be mutually agreed by the parties, any Call or any Put written by a party will automatically be terminated and discharged, in whole or in part, as applicable, and unless otherwise agreed, against a Call or a Put, respectively written by the other party, such discharge and termination to occur automatically upon the payment in full of the last Premium payable in respect of such Currency Option Transaction in accordance with standard payment instructions; provided that such discharge and termination may only occur in respect of Currency Option Transaction:

 

	 	
			i.

				
			each being with respect to the same Put Currency and the same Call Currency;

			

 

	 	
			ii.

				
			each having the same Expiration Date and Expiration Time;

			

 

37

 

 

	 	
			iii.

				
			each being of the same style, i.e. either both being American Style Option or both being European Style Options;

			

 

	 	
			iv.

				
			each having the same Strike Price;

			

 

	 	
			v.

				
			each having been transacted by the same Offices of Party A and Party B; and

			

 

	 	
			vi.

				
			neither of which shall have been exercised by delivery of a Notice of Exercise;

			

 

and, upon the occurrence of such discharge and termination, neither party shall have any obligation to the other party in respect of the relevant Currency Option Transactions or, as the case may be, parts thereof so discharged and terminated.  Such discharge and termination shall be effective notwithstanding that either party may fail to record such discharge and termination on its books.  In the case of a partial discharge and termination (i.e. where the relevant Currency Option Transactions are for different amounts of the Currency Pair), the remaining portion of the Currency Option Transactions that is partially discharged and terminated shall continue to be a Currency Option Transaction for all purposes of the Agreement, including this Section 2(c).

 

(f)         Payment Instructions. All payments to be made hereunder in respect of FX and Currency Option Transactions shall be made in accordance with standing payment instructions provided by the parties from time to time in writing (or as otherwise specified in a Confirmation).

 

(g)        Notice of Exercise. Article 3, Section 3.5(g) of the FX Definitions is amended by the deletion of the word "facsimile," in the fourth line thereof.

 

(h)        Terms Relating to Premium. Article 3, Section 3.4 of the FX Definitions is hereby amended by the addition of the following as a new paragraph (c) of the FX Definitions.

 

"(c)        Premium: Failure to Pay on Premium Payment Date. If any Premium is not received on the Premium Payment Date, the Seller may elect: (i) to accept a late payment of such Premium; (ii) to give written notice of such non- payment and, if such payment shall not be received within one (1) Local Business Day of such notice, treat the related Currency Option as void; or (iii) to give written notice of such non-payment and, if such payment shall not be received within one (1) Local Business Day of such notice, treat such non-payment as an Event of Default under Section 5(a)(i). If the Seller elects to act under either clause (i) or (ii) of the preceding sentence, the Buyer shall pay all out-of-pocket costs and actual damages incurred in connection with such unpaid or late Premium or void Currency Option, including, without limitation, interest on such Premium in the same currency as such Premium at the then prevailing-market rate and any other costs or expenses incurred by the Seller in covering its obligations (including, without limitation, a delta hedge) with respect to such Currency Option."

 

	 	
			i.

				
			Successor Currency. Section 4.3 of the FX Definitions is hereby amended by the addition of the following new paragraph immediately after the first paragraph:-

			

 

"The foregoing provisions shall not apply where the Original Currency is the Euro, provided the Euro remains a lawful currency in one or more participating member states of the European Union".

 

(j)          Confirmations. For each FX Transaction or Currency Option Party A and Party B agree to enter into hereunder, Party A shall promptly send to Party B, an Electronic Confirmation setting forth the terms of such Transaction. Party B shall either, (a) confirm to KeyBank that the trade data set forth in the Electronic Confirmation is correct with respect to the relevant transaction or (b) notify KeyBank promptly of any discrepancies. Failure of Party B to respond within forty-eight (48) hours of receipt of such Confirmation shall not affect the validity or enforceability of such Transaction and shall be deemed to be an affirmation of such terms, absent manifest error.

 

38

 

 

(k)         Additional Acknowledgements.  In relation to FX Transactions and Currency Options Transactions entered into pursuant to the terms of this Agreement:--

 

(i)          Party B hereby acknowledges and agrees that all payments to be made to Party A by Party B must be in immediately available funds.  Party A may in its sole discretion require payment of amounts due to it on any day to be made simultaneously with or prior to payment of amounts due from Party A to Party B on such day.

 

(ii)         Party A expressly makes no warranties, representations or promises that the foreign exchange rate quoted by Party A and accepted by Party B is the lowest rate available in the market.

 

[Signature page follows]

 

 

39

 

 

 

IN WITNESS WHEREOF, the parties have executed this Schedule by their duly authorized officers as of the date hereof.

 

KEYBANK NATIONAL ASSOCIATION.                  BEL FUSE INC.

 

By:  /s/ Linda Maraldo                                                  By:  /s/ Farouq Tuweiq     

     Name: Linda Maraldo                                                   Name:  Farouq Twweiq 

     Title:   Assistant Vice President                                    Title:  CFO           

              

40HTML Editor

Exhibit 10.3

 

December 6, 2021

 

 

	
			BEL FUSE INC

			
	
			206 VAN VORST ST

			
	
			JERSEY CITY, NJ  07302-4421

			
	 
	
			Attn:

				
			Marc Pryor, Farouq Tuweiq

			
	
			Email:

				
			Marc.pryor@belf.com; Farouq.Tuweiq@belf.com

			
	 
	
			From:

				
			Matthew Gelles

			
	
			Phone:

				
			215-585-1434

			
	 
	
			Reference:

				
			MX_306526

			
	
			USI:

				
			1030450478MX_306526

			

 

 

	
			The purpose of this letter agreement is to confirm the terms and conditions of the Interest Rate Swap transaction (the "Transaction") entered into between BEL FUSE INC ("COUNTERPARTY") and PNC Bank, National Association ("PNC") on the Trade Date specified below.

			
	
			1.

				
			The definitions and provisions contained in the 2006 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc.) and any addenda or revisions thereto, are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

			
	
			2.

				
			This Confirmation constitutes a “Confirmation” as referred to in, and supplements, forms part of and is subject to, that certain ISDA Master Agreement and related Schedule between COUNTERPARTY and PNC, dated as of November 10, 2021 (as amended, modified, supplemented, renewed or restated from time to time, the "ISDA Master Agreement"). All provisions contained in or incorporated by reference in the ISDA Master Agreement shall supersede all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof, and the ISDA Master Agreement shall govern this Confirmation and the Transaction evidenced hereby, except as modified expressly below. In the event of any inconsistency between the provisions of the ISDA Master Agreement and this Confirmation, this Confirmation will govern for purposes of the Transaction.

			
	
			3.

				
			Each party represents to the other party that:

			
	 	
			(a)

				
			It is acting for its own account as principal, and it has made its own independent decisions to enter into the ISDA Master Agreement and the Transaction and as to whether the ISDA Master Agreement and the Transaction each is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary to permit it to evaluate the merits and risks of the ISDA Master Agreement and the Transaction. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into the ISDA Master Agreement or the Transaction; it being understood that information and explanations related to the terms and conditions of the ISDA Master Agreement or the Transaction shall not be considered investment advice or a recommendation to enter into the ISDA Master Agreement or the Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of the ISDA Master Agreement or the Transaction.

			

1

 

 

 

	 	
			(b)

				
			It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of the ISDA Master Agreement and the Transaction. It is also capable of assuming, and assumes, the risks of the ISDA Master Agreement and the Transaction.

			
	 	
			(c)

				
			The other party is not acting as a fiduciary for or an adviser to it in respect of the ISDA Master Agreement or the Transaction.

			
	 	
			(d)

				
			It has entered into the Transaction in connection with a line of its business and for purposes of hedging and not for the purpose of speculation.

			
	 	
			(e)

				
			It is an “eligible contract participant”, as that term is defined in Section 1a(18) of the Commodity Exchange Act and applicable regulations there under.

			

 

	
			4.

				
			The terms of the Transaction to which this Confirmation relates are as follows:

			
	 	
			Type Of Transaction:

				
			Interest Rate Swap

			
	 	
			Notional Amount:

				
			USD 30,000,000.00

			
	 	
			Trade Date:

				
			December 6, 2021

			
	 	
			Effective Date:

				
			December 31, 2021

			
	 	
			Termination Date:

				
			August 31, 2026, subject to adjustment in accordance with the Modified Following Business Day Convention.

			

 

	 	
			Fixed Amounts:

			
	 	
			Fixed Rate Payer:

				
			COUNTERPARTY

			
	 	
			Fixed Rate Calculation Periods:

				
			The initial Calculation Period will be from and including the Effective Date to but excluding January 31, 2022. Thereafter, from and including the last day of each month to but excluding the last day of the following month. With the final Calculation Period being from and including July 31, 2026, to but excluding the Termination Date. Each calculation period subject to adjustment in accordance with the Modified Following Business Day Convention.

			
	 	
			Fixed Rate Payer Payment Dates:

				
			The initial payment will commence on January 31, 2022, and thereafter on the last day of each month, and ending on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.

			
	 	
			Fixed Rate:

				
			1.3055%

			
	 	
			Fixed Rate Day Count Fraction:

				
			Actual/360

			
	 	
			Business Days:

				
			New York and London

			

 

	 	
			Floating Amounts:

			
	 	
			Floating Rate Payer:

				
			PNC

			
	 	
			Floating Rate Calculation Periods:

				
			The initial Calculation Period will be from and including the Effective Date to but excluding January 31, 2022. Thereafter, from and including the last day of each month to but excluding the last day of the following month. With the final Calculation Period being from and including July 31, 2026, to but excluding the Termination Date. Each calculation period subject to adjustment in accordance with the Modified Following Business Day Convention.

			

2

 

 

 

	 	
			Floating Rate Payer Payment Dates:

				
			The initial payment will commence on January 31, 2022, and thereafter on the last day of each month, and ending on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.

			
	 	
			Floating Rate for Initial Calculation Period:

				
			TBD

			
	 	
			Reset Dates:

				
			The first day of each Floating Rate Calculation Period, with Period End Dates subject to adjustment in accordance with the Modified Following Business Day Convention.

			
	 	
			Floating Rate Option:

				
			USD-LIBOR-BBA-Bloomberg; provided, however, that the reference to “London Banking Days" that appears in the 4th line of the definition of “USD-LIBOR-BBA-Bloomberg” is replaced with “New York and London Banking Days" (which for purposes of the Transaction means any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required by law to be closed for business in New York, New York and London, England). Where in no event shall Floating Rate Option be below 0.0%.

			
	 	
			Designated Maturity:

				
			One (1) Month

			
	 	
			Spread:

				
			Inapplicable

			
	 	
			Floating Rate Day Count Fraction:

				
			Actual/360

			
	 	
			Business Days:

				
			New York and London

			
	 	
			Compounding:

				
			Inapplicable

			

 

	 	
			General Terms:

			
	 	
			Calculation Agent:

				
			As set forth by the ISDA Master Agreement.

			
	 	
			Jury Waiver:

				
			EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE ISDA MASTER AGREEMENT, ANY CREDIT SUPPORT DOCUMENT, THIS CONFIRMATION OR THE TRANSACTION EVIDENCED HEREBY.

			
	 	
			Governing Law:

				
			The Transaction shall be governed by and construed in accordance with the laws of the State of New York, without reference to the choice of law doctrine.

			
	 	
			Execution in Counterparts:

				
			This Confirmation may be executed in counterparts, each of which shall be an original and both of which when taken together shall constitute the same agreement. Transmission by facsimile, e-mail or other form of electronic transmission of an executed counterpart of this Confirmation shall be deemed to constitute due and sufficient delivery of such counterpart.

			
	 	
			Electronic Records and Signatures:

				
			It is agreed by the parties that the use of electronic signatures and the keeping of records in electronic form be granted the same legal effect, validity and enforceability as a signature affixed by hand or the use of a paper-based record keeping system (as the case may be) to the extent and as provided for in any applicable law.

			

 

3

 

 

	
			Periodic Interest Rate Swap Payment 

			
	
			Pay by Automatic Debit or Credit

			
	
			I hereby Authorize PNC Bank to deposit or withdraw any amounts owed to me or by me by initiating credit or debit entries to my account at the Financial Institution indicated below. Further, I authorize my Financial Institution to accept and to credit or debit any entries initiated by PNC Bank to my account. In the event that PNC Bank deposits funds erroneously into my account, I authorize PNC Bank to debit my account for an amount not to exceed the original amount of the credit.

			
	
			Bank Name:

				 	 
	
			ABA:

				 	 
	
			Account #:

				 	 
	
			Checking or Savings:

				 	 
	
			This authorization is to remain in full force and effect until PNC Bank and/or my Financial Institution has received written notice from me of its termination in such time and in such manner as to afford PNC Bank and/or my Financial Institution a reasonable opportunity to act on it.

			

 

	
			PNC Contact Information and Counterparty Contact Information for securing Web Portal Access:

			
	
			Payments:

				
			derivatives.payments@pnc.com

				
			412-237-0529

			
	
			Audit Confirmation Requests:

				
			brokerconf@pnc.com

				
			412-237-0544

			
	
			Web Portal Access and Customer Onboarding:

				
			cam.derivatives@pnc.com

				
			412-237-0537

			

 

	
			PNC will provide access to a secure website for the individuals listed below.  Access to the site will include the ability to view the Interest Payment Advice, as well as two documents required by Dodd Frank as follows: i) Mid-market Mark Report; and ii) Portfolio Reconciliation Report. Unless you notify PNC in writing that you do not agree to receive these Dodd Frank required documents through the website, you agree that the posting of them on the Website is an acceptable and reliable manner of disclosure to you.  Logon credentials will be provided after confirmation has been executed and returned to PNC.  Please provide additional names as required.

			
	
			First Name

				
			Last Name

				
			Email address

				
			Telephone

			
	
			Marc

				
			Pryor

				
			Marc.pryor@belf.com

				
			201-432-0463

			
	
			Farouq

				
			Tuweiq

				
			Farouq.Tuweiq@belf.com

				 

 

	
			Please confirm that the foregoing correctly sets forth the terms of our agreement concerning the transaction by signing this Confirmation where indicated below and returning a signed copy to Matthew Close either by email (derivatives.operations@pnc.com) or fax (1-855-568-4533) or by overnight delivery (c/o PNC Investment Operations 249 Fifth Avenue, P1-POPP-11-A, Pittsburgh, PA 15222, Attn: Matthew Close). By signing below, COUNTERPARTY acknowledges that it has consented to receive this Confirmation via electronic mail.

			

4

 

 

 

	
			Please retain a signed copy of this Confirmation for your records.  Should you have any questions, please call Matthew Close at 412-237-0532.

			
	 	 	 
	
			Yours Sincerely,

				 	
			Accepted and agreed as of the date first above written:

			
	 	 	 
	
			PNC BANK, NATIONAL ASSOCIATION

				 	
			BEL FUSE INC

			
	 	By:  /s/ Brandon A. Mayo   	 	
			By:  /s/ Farouq Tuweiq   

				 
	 	Name:  Brandon A. Mayo	 	
			Name:  Farouq Tuweiq

				 
	 	Title: AVP	 	
			Title:   CFO

				 
	 	 	 
	 	 	 	
			By:  /s/ Marc W. Pryor   

				 
	 	 	 	
			Name:  Marc W. Pryor

				 
	 	 	 	
			Title:  Corporate Treasurer

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