Document:

RAX_EX 10.2_09.26.11

GUARANTEE AGREEMENT
THIS GUARANTEE AGREEMENT (this “Guarantee”) dated as of September 26, 2011, made by each of the undersigned Subsidiaries of the Borrower (as defined below) (each, a “Guarantor,” and collectively, the “Guarantors”), in favor of JPMorgan Chase Bank, N.A. as Administrative Agent (the “Agent”) for the benefit of the Lenders pursuant to that certain Revolving Credit Agreement dated as of even date herewith (as amended, modified and supplemented from time to time, the “Credit Agreement”), by and among the Borrower, the Agent and the Lenders.
W I T N E S S E T H
WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make Loans and other extensions of credit to Rackspace Hosting, Inc., a Delaware corporation (the “Borrower”) in a manner and upon the terms and conditions set forth therein;
WHEREAS, in accordance with the Credit Agreement, the Agent requires that the Guarantors execute a guarantee agreement guaranteeing the obligations of the Borrower under the Credit Agreement;
NOW, THEREFORE, in consideration of the premises and agreements herein and in order to induce the Lenders to make the Loans and other extensions of credit pursuant to the Credit Agreement, the Guarantors hereby agree as follows:
Section 1.Definitions.  Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned thereto in the Credit Agreement.  

Section 2.Guarantee of Payment.  Each Guarantor (not merely as a surety or guarantor of collection) hereby jointly, severally, unconditionally and irrevocably, guarantees the punctual payment and performance when due, whether at stated maturity, as an installment, by prepayment or by demand, acceleration or otherwise, of all Obligations of the Borrower heretofore or hereafter existing.  If any or all of the Obligations become due and payable under the Credit Agreement, the Guarantors jointly and severally and unconditionally promise to pay such Obligations, on demand, together with any and all expenses (including reasonable counsel fees and expenses), which may be incurred by the Agent in collecting any of the Obligations and in connection with the protection, defense and enforcement of any rights under the Credit Agreement or under any other Loan Document (the “Expenses”).  The Guarantors guarantee that the Obligations shall be paid strictly in accordance with the terms of the Credit Agreement.  The Obligations include, without limitation, interest accruing after the commencement of a proceeding under bankruptcy, insolvency or similar laws of any jurisdiction at the rate or rates provided in the Credit Agreement.  The Agent shall not be required to exhaust any right or remedy or take any action against the Borrower or any other Person or any collateral prior to any demand or other action hereunder against the Guarantors.  The Guarantors agree that, as between the Guarantors and the Agent, the Obligations may be declared to be due and payable for the purposes of this Guarantee at any time when the Loans may be declared due under Article VII of the Credit Agreement, notwithstanding any stay, injunction or other prohibition which may prevent, delay or vitiate any declaration as regards the Borrower and that in the event of a declaration or attempted declaration, the Obligations shall immediately become due and payable by the Guarantors for the purposes of this Guarantee and each Guarantor shall forthwith pay the Obligations specified by the Agent to be paid as provided in the Credit Agreement without further notice or demand.  Notwithstanding anything contained herein or in the Credit Agreement, any Loan Document or any other document or any other agreement, security document or instrument relating hereto or thereto to the contrary, the maximum liability of each Guarantor hereunder shall never exceed the maximum amount that said Guarantor could pay without having such payment set aside as a fraudulent transfer or fraudulent conveyance or similar action under the U.S. 

Bankruptcy Code or applicable state or foreign law.

Section 3.Guarantee Absolute.  The liability of each Guarantor under this Guarantee is absolute and unconditional irrespective of:  (a) any change in the time, manner or place of payment of, or in any other term of, the Credit Agreement or the Obligations, or any other amendment or waiver of or any consent to departure from any of the terms of the Credit Agreement or the Obligations, including any increase or decrease in the rate of interest thereon; (b) any release or amendment or waiver of, or consent to departure from, any other guarantee or support document, or any exchange, release or non‐perfection of any collateral, for the Credit Agreement or the Obligations; (c) any present or future law, regulation or order of any jurisdiction or of any agency thereof purporting to reduce, amend, restructure or otherwise affect any term of the Credit Agreement or the Obligations; (d) without being limited by the foregoing, any lack of validity or enforceability of the Credit Agreement or the Obligations; (e) any other setoff, defense or counterclaim whatsoever (in any case, whether based on contract, tort or any other theory) with respect to the Credit Agreement or the transactions contemplated thereby which might constitute a legal or equitable defense available to, or discharge of, the Borrower or other Guarantors and (f) any claim or assertion that any payment by any Guarantor hereunder should be set aside pursuant to Section 2 in connection with any stay, injunction or other prohibition or event, in which case each Guarantor shall be unconditionally required to pay all amounts demanded of it hereunder prior to any determination of the maximum liability of each Guarantor hereunder in accordance with Section 2 and the recipient of such payment, if so required by a final non-appealable court of competent jurisdiction by a final and non-appealable judgment, shall then be liable for the refund of any excess amounts.  If any such rebate or refund is ever required, all other Guarantors shall be fully liable for the repayment thereof to the maximum extent allowed by applicable law.

Section 4.Guarantee Irrevocable.  This Guarantee is a continuing guarantee of the payment of all Obligations now or hereafter existing under the Credit Agreement and shall remain in full force and effect until payment in full of all Obligations and other amounts payable under this Guarantee and until all Commitments of the Lenders to make Loans under the Credit Agreement shall be terminated in accordance with the terms thereof and the Credit Agreement is no longer in effect.

Section 5.Reinstatement.  This Guarantee shall continue to be effective, or be automatically reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by the Agent on the insolvency, bankruptcy, dissolution, liquidation or reorganization of any of the Borrower, any Guarantor, or any Person that is a party to the Loan Documents, or upon or as a result of the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to any of the Borrower, any Guarantor or any other Person that is a party to the Loan Documents, or otherwise, all as though the payment had not been made.  

Section 6.Subrogation.  Each Guarantor hereby agrees that it shall not exercise any rights which it may acquire by way of subrogation, by any payment made under this Guarantee or otherwise, until all the Obligations have been paid in full and the Credit Agreement is no longer in effect.  Any amounts paid to a Guarantor on account of subrogation rights under this Guarantee at any time when all the Obligations have not been paid in full, shall be held in trust for the benefit of the Agent and shall promptly be paid to the Agent to be credited and applied to the Obligations, whether matured or unmatured or absolute or contingent, in accordance with the terms of the Credit Agreement.  If a Guarantor has made a payment to the Agent hereunder of all or any part of the Obligations and all the Obligations are paid in full (other than unasserted indemnity obligations) and the Commitments have been terminated, the Agent shall, at such Guarantor's request, execute and deliver to the Guarantor the appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to the Guarantor of an interest in the Obligations resulting from the payment.

Section 7.Subordination.  Any liabilities owed by the Borrower to the Guarantors in connection with any extension of credit or financial accommodation by the Guarantors to or for the account of the Borrower, including but not limited to interest accruing at the agreed contract rate after the commencement of a bankruptcy or similar proceeding, are hereby subordinated to the Obligations, and such liabilities of the Borrower to the Guarantors, if the Agent so requests, shall be collected, enforced and received by the Guarantors as trustee for the Agent and shall be paid over to the Agent on account of the Obligations.

Section 8.Certain Taxes.  The Guarantors further agree that all payments to be made hereunder shall be made without setoff or counterclaim and free and clear of, and without deduction for Indemnified Taxes or Other Taxes.  If any Indemnified Taxes or Other Taxes are required to be withheld from any amounts payable to the Agent hereunder, the amounts so payable to the Agent shall be increased to the extent necessary to yield to the Agent (after payment of all Indemnified Taxes or Other Taxes) the amounts payable hereunder in the full amounts so to be paid.  Whenever any Indemnified Tax or Other Tax is paid by a Guarantor, as promptly as possible thereafter, such Guarantor shall send the Agent evidence of payment thereof, together with such additional documentary evidence as may be reasonably required from time to time by the Agent.

Section 9.Representations and Warranties.  Each of the Guarantors represents and warrants that:  (a) this Guarantee (i) has been authorized by all necessary action; (ii) does not violate any agreement, instrument, law, regulation or order applicable to it; (iii) does not require the consent or approval of any Person, or any filing or registration of any kind; and (iv) is the legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors' rights generally; and (b) in executing and delivering this Guarantee, such Guarantor has not relied and will not rely upon any representations or warranties of the Agent not embodied herein or any acts heretofore or hereafter taken by the Agent (including but not limited to any review by the Agent of the affairs of the Borrower).

Section 10.Remedies Generally.  The remedies provided in this Guarantee are cumulative and not exclusive of any remedies provided by law.

Section 11.Setoff.  Each Guarantor agrees that, in addition to (and without limitation of) any right of setoff, banker's lien or counterclaim the Agent or the Lenders may otherwise have, the Agent and each of the Lenders shall be entitled, at their option, if an Event of Default shall have occurred and be continuing, to offset balances (general or special, time or demand, provisional or final, but excluding deposits held in a fiduciary capacity for a third party) held by them for the accounts of the Guarantors at any of the Agent's or any Lender's offices, in U.S. dollars or in any other currency, against any amount payable by the Guarantors under this Guarantee which is not paid when due, in which case it shall promptly notify the Guarantors thereof; provided that the Agent's or any Lender's failure to give such notice shall not affect the validity thereof.

Section 12.Formalities.  Each Guarantor hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any of the Obligations, the Credit Agreement and this Guarantee and any liability to which the Credit Agreement and this Guarantee applies or may apply, and waives presentment, demand of payment, notice of intent to accelerate, notice of acceleration, notice of dishonor or nonpayment, and any requirement that the Agent institute suit, collection proceedings or take any other action to collect the Obligations, including any requirement that the Agent protect, secure, perfect or insure any security interest or Lien against any property subject thereto or exhaust any right or take any action against the Borrower or any other Person (including the other Guarantors) or any collateral (it being 

the intention of the Agent and each Guarantor that the obligations of such Guarantor under this Guarantee are to be a guarantee of payment and not of collection) or that the Borrower or any other Person (including the other Guarantors) be joined in any action hereunder.  Each Guarantor hereby waives marshaling of assets and liabilities, notice by the Agent of the creation of any Indebtedness or liability to which it applies or may apply, notice of disposition or substitution of collateral and of the creation, advancement, increase, existence, extension, renewal, rearrangement and/or modification of the Obligations.

Section 13.Amendments and Waivers.  No amendment or waiver of any provision of this Guarantee, nor consent to any release by any Guarantor therefrom, shall be effective unless it is in writing and signed by the Agent and such Guarantor, and then the waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  No failure on the part of the Agent to exercise, and no delay in exercising, any right under this Guarantee shall operate as a waiver or preclude any other or further exercise thereof or the exercise of any other right.

Section 14.Expenses.  The Guarantors shall reimburse the Agent on demand for all Expenses without duplication of any reimbursements effected under the Credit Agreement.  The obligations of the Guarantors under this Section shall survive the termination of this Guarantee.

Section 15.Assignment.  This Guarantee shall be binding on, and shall inure to the benefit of the Guarantors, the Agent and their respective successors and assigns; provided that the Guarantors may not assign or transfer their respective rights or obligations under this Guarantee.  Without limiting the generality of the foregoing:  (a) the obligations of the Guarantors under this Guarantee shall continue in full force and effect and shall be binding on any successor partnership and on previous partners and their respective estates if any of the Guarantors is a partnership, regardless of any change in the partnership as a result of death, retirement or otherwise; and (b) the Agent may assign, or otherwise transfer its rights under the Credit Agreement to any other Person in accordance with the terms and conditions thereof, and the other Person shall then become vested with all the rights granted to the Agent in this Guarantee.  Any Guarantor may merge into the Borrower or another Guarantor as provided in the Credit Agreement.

Section 16.Captions.  The headings and captions in this Guarantee are for convenience only and shall not affect the interpretation or construction of this Guarantee.

Section 17.Governing Law, Etc.  THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS.  EACH GUARANTOR CONSENTS TO THE NONEXCLUSIVE JURISDICTION AND VENUE OF THE STATE OR FEDERAL COURTS LOCATED IN THE CITY OF HOUSTON.  SERVICE OF PROCESS BY THE AGENT IN CONNECTION WITH ANY SUCH DISPUTE SHALL BE BINDING ON EACH GUARANTOR IF SENT TO SUCH GUARANTOR BY REGISTERED MAIL AT THE ADDRESS SPECIFIED BELOW OR AS OTHERWISE SPECIFIED BY SUCH GUARANTOR FROM TIME TO TIME.  EACH GUARANTOR WAIVES ANY RIGHT IT MAY HAVE TO JURY TRIAL IN ANY ACTION RELATED TO THIS GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY AND FURTHER WAIVES ANY RIGHT TO INTERPOSE ANY COUNTERCLAIM RELATED TO THIS GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY SUCH ACTION.  TO THE EXTENT THAT ANY GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR OTHERWISE), EACH SUCH GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTEE.

Section 18.Integration; Effectiveness.  This Guarantee alone sets forth the entire understanding of the Guarantors and the Agent relating to the guarantee of the Obligations and constitutes the entire contract between the parties relating to the subject matter hereof and supersedes any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This Guarantee shall become effective when it shall have been executed and delivered by the Guarantors to the Agent.  Delivery of an executed signature page of this Guarantee by telecopy shall be effective as delivery of a manually executed signature page of this Guarantee.

Section 19.Automatic Release.  As provided in Section 9.02 of the Credit Agreement, a Guarantor shall be automatically released from its obligations under this Guarantee upon the satisfaction of the conditions set forth therein.

END OF TEXTUnassociated Document

Exhibit 10.5

 

(Multicurrency—Cross Border)

 

Form of ISDA®

International Swap Dealers Association, Inc.

 

MASTER AGREEMENT

 

dated as of

 

	
[*]

(ABN [*]) (“Party A”)

	
 

 

 

and

	
[*]

(ABN [*])

in its capacity as trustee of the Series [*]-[*]G WST Trust (in that capacity, “Party B”)

 

	  	  	  

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

 

Accordingly, the parties agree as follows:—

 

1.  Interpretation

 

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

 

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

 

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

 

2.  Obligations

 

(a)  General Conditions.

 

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

  

1

  

 

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

 

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

 

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

 

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

 

(i)  in the same currency; and

 

(ii)  in respect of the same Transaction,

 

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

 

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

 

(d)  Deduction or Withholding for Tax.

 

(i)  Gross-Up. All payments under this Agreement will be made without any deduction or withholding for or on account of any Tax unless such deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental 

  

2

  

 

revenue authority, then in effect. If a party is so required to deduct or withhold, then that party (“X”) will:—

 

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

 

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

 

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

 

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

 

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

 

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

 

(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

  

 

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

 

3.  Representations

 

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

 

(a)  Basic Representations.

 

(i)  Status.  It is duly organized and validly existing under the laws of the jurisdiction of its organization 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 authorize 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, reorganization, 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)).

  

4

  

 

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

 

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

 

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

 

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

 

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

 

4.  Agreements

 

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

 

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

 

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

 

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

 

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

  

5

  

 

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

 

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

 

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

 

(e)  Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is incorporated, organized, managed and controlled, or considered to have its seat, or in which a branch or 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 an event of default (an “Event of Default”) with respect to such party:—

 

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

 

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

 

(iii)  Credit Support Default.

 

(1)  Failure by the party or any Credit Support Provider of such party to comply with or perform any agreement or obligation to be complied with or performed by it in

  

6

  

 

 

accordance with any Credit Support Document if such failure is continuing after any applicable grace period has elapsed;

 

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

 

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

 

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

 

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

 

(vi)  Cross Default.  If “Cross Default” is specified in the Schedule as applying to the party, the occurrence or existence of (1) a default, event of default or other similar condition or event (however described) in respect of such party, any Credit Support Provider of such party or any applicable Specified Entity of such party under one or more agreements or instruments relating to Specified Indebtedness of any of them (individually or collectively) in an aggregate amount of not less than the applicable Threshold Amount (as specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such agreements or instruments, before it would otherwise have been due and payable or (2) a default by such party, such Credit Support Provider or such Specified Entity (individually or collectively) in making one or more payments on the due date thereof in an aggregate amount of not less than the applicable Threshold Amount under such agreements or instruments (after giving effect to any applicable notice requirement or grace period);

  

7

  

 

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

 

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

 

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

 

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

 

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

 

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

  

8

  

 

(iii) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination Event if the event is specified pursuant to (v) below:—

 

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

 

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

 

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

 

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

 

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

 

(iv)  Credit Event Upon Merger.  If “Credit Event Upon Merger” is specified in the Schedule as applying to the party, such party (“X”), any Credit Support Provider of X or any applicable Specified Entity of X consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, another entity and such action does not constitute an event described in Section 5(a)(viii) but the creditworthiness of the resulting,

  

9

  

 

surviving or transferee entity is materially weaker than that of X, such Credit Support Provider or such Specified Entity, as the case may be, immediately prior to such action (and, in such event, X or its successor or transferee, as appropriate, will be the Affected Party); or

 

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

 

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

 

6.  Early Termination

 

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

 

(b)  Right to Terminate Following Termination Event.

 

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

 

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

  

10

  

 

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

 

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

 

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

 

(iv)  Right to Terminate. If:—

 

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

 

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

 

either party in the case of an Illegality, the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination Event if there is more than one Affected Party, or the party which is not the Affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one Affected Party may, by not more than 20 days notice to the other party and provided that the relevant Termination Event is then continuing, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all Affected Transactions.

 

(c)  Effect of Designation.

 

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

 

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

  

11

  

 

(d)  Calculations.

 

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

 

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

 

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

 

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

 

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

 

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

  

12

  

 

(3)  Second Method and Market Quotation.  If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting Party.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)  Adjustment for Bankruptcy.  In circumstances where an Early Termination Date occurs because “Automatic Early Termination” applies in respect of a party, the amount determined

  

13

  

   

under this Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect any payments or deliveries made by one party to the other under this Agreement (and retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under Section 6(d)(ii).

 

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

 

7.  Transfer

 

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

 

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

 

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

 

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

 

8.  Contractual Currency

 

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

(b)  Judgments.  To the extent permitted by applicable law, if any judgment or order expressed in a currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in respect of this Agreement, (ii) for the payment of any amount relating to any early

  

14

  

   

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

 

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

 

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

 

9.  Miscellaneous

 

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

 

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

 

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

 

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

  

15

  

 

(e)  Counterparts and Confirmations.

 

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

 

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

 

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

 

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

 

10.  Offices; Multibranch Parties

 

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

 

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

 

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

 

11.  Expenses

 

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

  

16

  

 

12.  Notices

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13.  Governing Law and Jurisdiction

 

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

 

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

 

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

   

(ii)  waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have

  

17

  

 

been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party.

 

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

 

(c)  Service of Process. Each party irrevocably appoints the Process Agent (if any) specified opposite its name in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will promptly notify the other party and within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably consent to service of process given in the manner provided for notices in Section 12. Nothing in this Agreement will affect the right of either party to serve process in any other manner permitted by law.

 

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

 

14.  Definitions

 

As used in this Agreement:—

 

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

 

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

 

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

 

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

 

“Applicable Rate” means:—

  

18

  

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

  

19

  

 

but excluding a connection arising solely from such recipient or related person having executed, delivered, performed its obligations or received a payment under, or enforced, this Agreement or a Credit Support Document).

   

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

 

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

 

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

   

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

  

20

  

 

 

each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that date. For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of Terminated Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early Termination Date is to be included. The Replacement Transaction would be subject to such documentation as such party and the Reference Market-maker may, in good faith, agree. The party making the determination (or its agent) will request each Reference Market-maker to provide its quotation to the extent reasonably practicable as of the same day and time (without regard to different time zones) on or as soon as reasonably practicable after the relevant Early Termination Date. The day and time as of which those quotations are to be obtained will be selected in good faith by the party obligated to make a determination under Section 6(e), and, if each party is so obliged, after consultation with the other. If more than three quotations are provided, the Market Quotation will be the arithmetic mean of the quotations, without regard to the quotations having the highest and lowest values. If exactly three such quotations are provided, the Market Quotation will be the quotation remaining after disregarding the highest and lowest quotations. For this purpose, if more than one quotation has the same highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of such Terminated Transaction or group of Terminated Transactions cannot be determined.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

  

21

  

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

  

22

  

 

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

 

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

 

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

 

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

 

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

 

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or prior to such Early Termination Date and which has not been so settled as at such Early Termination Date, an amount equal to the fair market value of that which was (or would have been) required to be delivered as of the originally scheduled date for delivery, in each case together with (to the extent permitted under applicable law) interest, in the currency of such amounts, from (and including) the date such amounts or obligations were or would have been required to have been paid or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the basis of daily compounding and the actual number of days elapsed. The fair market value of any obligation referred to in clause (b) above shall be reasonably determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it shall be the average of the

  

23

  

 

 

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

 

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

 

	
PARTY A

	  	  
	  	  	  
	
SIGNED on behalf of

	
)

	  
	
[*]

	
)

	  
	
by its attorney under power of attorney

	
)

	
Signature

	
in the presence of:

	
)

	  
	  	  	  
	  	  	
Print name

	 	 	 
	  	  	  
	
Witness

	  	  
	 	 	 
	  	  	  
	
Print name

	  	  
	  	  	  
	
PARTY B

	  	  
	  	  	  
	
SIGNED on behalf of

	
)

	  
	
[*]

	
)

	  
	
by its attorney under power of attorney

	
)

	
Signature

	
in the presence of:

	
)

	  
	  	  	  
	  	  	
Print name

	 	 	 
	  	  	  
	
Witness

	  	  
	 	 	 
	  	  	  
	
Print name

	  	  

  

24

  

 

	
Schedule to the Basis Swaps

 

SCHEDULE

 

to the

 

ISDA Master Agreement

 

dated as of [*]

 

between [*] ("Party A")

 

and

 

[*] ("Party B")

 

 

Part 1

 

Termination Provisions

 

In this Agreement:

 

	
(a)

	
"Specified Entity" is not applicable in relation to Party A and Party B.

 

	
(b)

	
The “Breach of Agreement”, "Credit Support Default” and “Misrepresentation” provisions of Sections 5(a)(ii), (iii) and (iv) will not apply to Party B.  In respect of Party A, Section 5(a)(iv) is amended to include the words “and such failure is not remedied on or before the thirtieth day after notice is given to the party“ at the end of that Section.

 

	
(c)

	
The "Default under Specified Transaction" and “Cross Default” provisions of Sections 5(a)(v) and (vi) will not apply to Party A and Party B.

 

	
(d)

	
"Termination Currency" means Australian Dollars.

 

	
(e)

	
The “Bankruptcy” provisions of Section 5(a)(vii) are replaced by “An Insolvency Event has occurred in respect of the party”. The occurrence of an Insolvency Event in respect of Party B in its personal capacity will not constitute an Event of Default provided that within thirty Business Days of that occurrence, Party A and Party B are able to procure the novation of this Agreement and all Transactions to a third party and the Trust Manager has delivered a Rating Notification in respect of that novation.

 

	
(f)

	
Section 5(a)(i) is amended to replace “third” with “tenth”.

 

	
(g)

	
The “Merger Without Assumption” provisions of Section 5(a)(viii) will not apply to Party B. The provisions of Sections 5(b)(ii) (“Tax Event”) and 5(b)(iii) (“Tax Event Upon Merger”) will not apply to Party A and Party B. The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will not apply to Party A and Party B.

 

	
(h)

	
An “Additional Termination Event”, set out in Section 15A(j), will apply.

 

	
(i)

	
The "Automatic Early Termination" provision of Section 6(a) will not apply to Party A and Party B.  Any event which, upon its occurrence, constitutes an Event of Default, is deemed not to be an essential term of the Transaction so that the occurrence of any Event of Default shall not be implied to constitute a repudiation of the Agreement.  This does not in any way restrict or limit the right of a Non-Defaulting Party under Section 6(a) to terminate following an Event of Default.

 

  

Page 1

  

 

	
(j)

	
In the “Transfer to Avoid Termination Event” provision of Section 6(b)(ii), after the words “another of its Offices or Affiliates” on the seventh line add “(in respect of which the Trust Manager has given a Rating Notification)”.

 

	
(k)

	
Payments on Early Termination For the purpose of Section 6(e) of this Agreement:-

 

	 	
(i)

	
Market Quotation will apply.

 

	 	
(ii) 

	
The Second Method will apply.

 

	
(l)

	
In the “Transfer” provision of Section 7, add at the end of paragraph (a) after the closing parenthesis following the word “Agreement”:

 

“provided, in respect of Party A, that such other entity is an entity in respect of which the Trust Manager has given a Rating Notification”;

 

and add a new paragraph (c):

 

	
  

	
“(c)

	
Party B may transfer to a Successor Trustee (as defined below) or to avoid an Illegality as specified in Section 5(b)(i)”.

 

	
(m)

	
Add a new paragraph to Section 7, immediately below paragraph (c):

 

In the event that a trustee is appointed as a successor to Party B under the Trust Deed (“Successor Trustee”), Party A undertakes that it shall (unless, at the time the Successor Trustee is so appointed, Party A is entitled to terminate the Transaction under Section 6, in which case it may) novate to the Successor Trustee the Transaction on the same terms or on other terms to be agreed between Party A, the Trust Manager and the Successor Trustee, and give written notice to the Designated Rating Agencies of such novation.

 

	
(n)

	
Add a new Section 2(f) Trustee Provisions:

 

Party B enters into this Agreement in its capacity as Trustee of the Trust. Clause 3.3 of the Series Notice applies to this Agreement as if set out in full, except that references to this Series Notice are references to this Agreement.  Clause 15 of the Security Trust Deed shall apply to govern Party A’s priority to moneys received from the sale of Assets or other enforcement of the Charge under the Security Trust Deed (each as defined in the Security Trust Deed).

 

	
(o)

	
In the “Amendments” provision of Section 9(b) add at the end “, and notified in writing to the Designated Rating Agencies ”.

 

	
(p)

	
Without prejudice to any Event of Default resulting from Party A’s failure to post collateral in accor­dance with the criteria of S&P, any failure by Party A to comply with or perform any obligation to be complied with or performed by Party A under the Credit Support Annex shall not be an Event of Default unless:

 

	 	
(i) 

	
the Second Moody's Rating Trigger Requirements (as defined in Section 15A) apply and at least 30 Business Days have elapsed since the last time the Second Moody's Rating Trigger Require­ments did not apply; and

 

	 	
(ii) 

	
such failure is not remedied on or before the third Business Day after notice of such failure is given to Party A.

 

  

Page 2

  

 

Part 2

 

Tax Representations

 

	
(a)

	
Deduction or Withholding for Tax.  Section 2(d) is replaced with the following:

 

All payments under this Agreement will be made subject to deduction or withholding for or on account of any Tax.  If a party is so required to deduct or withhold, then that party (“X”) will:

 

	
  

	
(i)

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

 

	
  

	
(ii)

	
pay to the relevant authorities the full amount required to be deducted or withheld promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed against Y;

 

	
  

	
(iii)

	
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

 

	
  

	
(iv)

	
pay to Y the amount Y would have received had no deduction or withholding been required less the amount of the deduction or withholding paid by X under Section 2(d)(ii).

 

	
(b)

	
Payer Tax Representation.  For the purpose of Section 3(e), Party A and Party B 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 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement.  In making this representation, it may rely on:-

 

	
  

	
(i)

	
the accuracy of any representations made by the other party pursuant to Section 3(f);

 

	
  

	
(ii)

	
the satisfaction of the agreement of the other party 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); and

 

	
  

	
(iii)

	
the satisfaction of the agreement of the other party contained in Section 4(d),

 

provided that it shall not be a breach of this representation where reliance is placed on clause (ii) and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position.

 

	
(c)

	
Payee Tax Representation.  For the purpose of Section 3(f), Party A and Party B each makes the representation specified below:-

 

"It is an Australian resident and does not derive the payments under this Agreement in part or whole in carrying on business in a country outside Australia at or through a permanent establishment of itself in that country".

 

  

Page 3

  

 

Part 3

 

Documents to be delivered

 

	
(a)

	
For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to deliver to the other as soon as reasonably practicable following a request by the other party, any document or certificate reasonably required by a party in connection with its obligations to make a payment under this Agreement which would enable that party to make the payment free from any deduction or withholding for or on account of Tax or as would reduce the rate at which the deduction or withholding for or on account of Tax is applied to that payment.

 

	
(b) 

	
Other documents to be delivered are:

 

	
Party required to deliver document

	
Form/Document/Certificate

	
Date by which document to be delivered

	
Covered by Section 3(d) Representation

	
Party A and Party B

	
A legal opinion as to the validity and enforceability of that party’s obligations under this Agreement in form and substance reasonably acceptable to the other party.

	
The date of this Agreement.

	
No

	
Party A and Party B

	
A list of the authorised signatories for a party and evidence satisfactory in form and substance to the other party of the authority of the authorised signatories of the party to execute this Agreement and any Confirmation on behalf of the party.

	
On the execution of this Agreement, and if requested by the other party, on the execution of any Confirmation but only if the evidence of the authority, incumbency and specimen signature of any person executing the Confirmation has changed from that previously delivered.

	
Yes

 

Part 4

 

Miscellaneous

 

	
(a)

	
Address for Notices.  For the purpose of Section 12(a):-

 

Address for notices or communications to Party A to each of the following for all purposes:-

 

	
Address

	
:

	
[*]

	  
	 	 	 	 
	
 

	  	
[*]

	 
	  	  	  	  
	
Attention

	
:

	
[*]

	  
	 	 	 	 
	
Fax No

	
:

	

[*]

	 

 

  

Page 4

  

 

Address for notices or communications to Party B:

 

	
Address:

	

[*]

	 	  

 

	
Attention:

	

[*]

	 	  

 

	
Fax No:

	

[*]

	 	  

 

For all purposes

 

And a copy to the Trust Manager to the address below.

 

Trust Manager:

 

	 	
Address:

	
[Level 2, 275 Kent Street 

Sydney NSW 2000]

 

	 	
Attention:

	
[Senior Manager Securitisation, Specialist Services]

 

	 	
Fax No:

	
[02 8254 6945]

 

	
(b)

	
Process Agent.   Party A and Party B do not appoint any Process Agents.

 

	
(c)

	
Offices.  The provisions of Section 10(a) will not apply to this Agreement.

 

	
(d)

	
Multibranch Party.  Party A is [not] a Multibranch Party and Party B is [not] a Multibranch Party.

 

	
(e)

	
Calculation Agent.  The Calculation Agent is Party A.

 

	
(f)

	
Credit Support Document. - Details of any Credit Support Document:-

 

In relation to Party A: Nil

 

In relation to Party B: Security Trust Deed

 

	
(g)

	
Credit Support Provider. - Nil.

 

	
(h)

	
Governing Law.  This Agreement is governed by and construed in accordance with the laws of the State of New South Wales, and Section 13(b)(i) is deleted and replaced with the following: "submits to the non-exclusive jurisdiction of the courts of New South Wales and courts of appeal from them."

 

	
(i)

	
Netting of Payments.  Section 2(c)(ii) of this Agreement will apply to all Transactions but, for the avoidance of doubt, Section 2(c)(ii) does not permit netting between a Transaction described in its Confirmation as a "Fixed Rate Basis Swap" and a Transaction described in its Confirmation as a "Variable Rate Basis Swap".

 

	
(j)

	
"Affiliate" will have the meaning specified in Section 14. For the purpose of Section 3(c), neither party is deemed to have any Affiliates.

 

	
(k)

	
Single Agreement. Section 1(c) shall be amended by the addition of the words “, the Credit Support Annex" after the words “Master Agreement”.

 

  

Page 5

  

 

Part 5

 

Other Provisions

 

	
(a)

	
The following definitions are incorporated into this Master Agreement and any Confirmation:

 

	 	
· 

	
the 2000 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc.) (as amended and supplemented from time to time) (known as the “ISDA Definitions”).

 

	
(b)

	
In the event of any inconsistency between any two or more of the following documents, they shall take precedence over each other in the following descending order:

 

	
  

	
(i)

	
any Confirmation;

 

	
  

	
(ii)

	
the Schedule to the Master Agreement;

 

	
  

	
(iii)

	
the other provisions of the Master Agreement; and

 

	
  

	
(iv)

	
the ISDA Definitions.

 

	
(c)

	
The parties acknowledge that telephone conversations between them may be recorded and each party consents to such recordings being used as evidence in court proceedings.

 

	
(d)

	
In Section 2(a)(i) add the following sentence:

 

"Each payment will be by way of exchange for the corresponding payment or payments payable by the other party".

 

	
(e)

	
A new Section 2(a)(iv) is inserted as follows:

 

	
  

	
"(iv)

	
The condition precedent in Section 2(a)(iii)(1) does not apply to a payment due to be made to a party if it has satisfied all its payment and delivery obligations under Section 2(a)(i) and has no future payment or delivery obligations, whether absolute or contingent under Section 2(a)(i)."

 

	
(f)

	
The parties agree that, for the purpose of Section 2(b) of the Agreement, "Change of Account", any new account so designated shall be in the same tax jurisdiction as the original account.

 

	
(g)

	
Additional Representations: In Section 3 add the following immediately after paragraph (f):

 

	
  

	
“(g)

	
Non Assignment. It has not assigned (whether absolutely, in equity or otherwise) or declared any trust over any of its rights under any Transaction (other than, in respect of Party B, the trusts created pursuant to the Trust Deed) and has not given any charge over the assets of the Trust (other than as provided in the Security Trust Deed), in the case of Party B.

 

	
  

	
(h)

	
Contracting as principal. Each existing Transaction has been entered into by Party A as principal and not otherwise and each existing Transaction has been entered into by Party B in its capacity as trustee of the Trust and not otherwise."

 

Party B also represents to Party A (which representations will be deemed to be repeated by Party B on each date on which a Transaction is entered into) that:

 

	
  

	
(i)

	
Trust Validly Created. The Trust has been validly created and is in existence at the date of this Agreement.

 

  

Page 6

  

 

	
  

	
(ii)

	
Sole Trustee. Party B has been validly appointed as trustee of the Trust and is presently the sole trustee of the Trust.

 

	
  

	
(iii)

	
No Proceedings to remove. No notice has been given to Party B and to Party B’s knowledge no resolution has been passed, or direction or notice has been given, removing Party B as trustee of the Trust.

 

	
  

	
(iv)

	
Power. Party B has power under the Trust Deed to enter into and perform its obligations under this Agreement and the Security Trust Deed in its capacity as trustee of the Trust.

 

	
  

	
(v)

	
Good Title. Party B is the owner of the assets of the Trust and has power under the Trust Deed to mortgage or charge them in the manner provided in the Security Trust Deed, and, subject only to the Trust Deed, the Security Trust Deed and any Security Interest (as defined in the Security Trust Deed) permitted under the Security Trust Deed, those assets are free from all other Security Interests.

 

	
(h)

	
Additional Covenant: In Section 4 add a new paragraph as follows:

 

	
  

	
“(f)

	
Contracting as Principal. Party A will enter into all Transactions as principal and not otherwise and Party B will enter into all Transactions in its capacity as trustee of the Trust and not otherwise.”

 

	
(i)

	
Section 12 is amended as follows:-

 

	
  

	
(i)

	
In Section 12(a), insert "and settlement instructions" after "Section 5 or 6" in line 2.

 

	
  

	
(ii)

	
Section 12(a)(iii) is replaced with:

 

	
  

	
"(iii)

	
if sent by facsimile transmission, on the date a transmission report is produced by the machine from which the facsimile was sent which indicates that the facsimile was sent in its entirety to the facsimile number of the recipient notified for the purpose of this Section, unless the recipient notifies the sender within one Business Day of the facsimile being sent that the facsimile was not received in its entirety and in legible form."

 

	
(j)

	
(i)

	
In Section 14, add the following new definitions:

 

Approved Bank means a Bank which has credit ratings which at the relevant time are not lower than:

 

(i)            long term – A (S&P) and A2 (Moody's); and

 

(ii)            short term – A-1 (S&P) and P-1 (Moody's).

 

Series Notice means the Series [*] WST Trust Series Notice dated on or about the date of this Agreement between, amongst others, Party B, the Trust Manager and Party A.

 

Trust Deed means the Master Trust Deed dated 14 February 1997 initially made between Westpac Securities Administration Limited and the Mortgage Company Pty Limited, as amended and adopted by BNY Trust Company of Australia Limited.

 

S&P Counterparty Criteria means the criteria for the rating of structured finance securities published by S&P dated December 6, 2010, entitled Counterparty And Supporting Obligations Methodology and Assumptions, as amended and supplemented by the update entitled Counterparty And Supporting Obligations Update dated January 13, 2011.

 

  

Page 7

  

 

Swap Collateral Account means an account established by Party B with an Approved Bank.

 

	
  

	
(ii)

	
Unless otherwise defined in this Agreement, words defined in the Series Notice (including by incorporation) shall have the same meanings used in this Agreement.

 

	
(k)

	
New Sections 15A and 15B are added as follows:

 

	 	
15A. 

	
Downgrade of Fixed Rate Basis Swap Provider

 

	 	
(a) 

	
In this Section 15A, the following additional definitions have the following meanings:

 

Collateral Agreement has the meaning given to it in Section 15A(b)(i).

 

Eligible Guarantee means an unconditional and irrevocable guarantee in respect of all of Party A's or, as the case may be, the Eligible Replacement's present and future obligations under this Agreement that is provided by a guarantor as principal debtor rather than surety and is directly enforceable by Party B, where:

 

	
  

	
(A)

	
a law firm has given a legal opinion confirming that none of the guarantor's payments to Party B under such guarantee will be subject to deduction or withholding for Tax and such opinion has been disclosed to Moody's;

 

	
  

	
(B)

	
such guarantee provides that, in the event that any of such guarantor's payments to Party B are subject to deduction or withholding for Tax, such guarantor is required to pay such additional amount as is necessary to ensure that the net amount actually received by Party B (free and clear of any tax) will equal the full amount Party B would have received had no such deduction or withholding been required; or

 

	
  

	
(C)

	
in the event that any payment under such guarantee is made net of deduction or withholding for Tax, Party A or, as the case may be, the Eligible Replacement is required to make such additional payment as is necessary to ensure that the net amount actually received by Party B from the guarantor will equal the full amount Party B would have received had no such deduction or withholding been required.

 

Eligible Replacement means an entity that could lawfully perform the obligations owing to Party B under this Agreement or its replacement (as applicable):

 

	
  

	
(a)

	
with a rating not less than the Minimum S&P Without Collateral Credit Rating and the First Moody's Trigger Required Ratings; or

 

	
  

	
(b)

	
whose present and future obligations owing to Party B under this Agreement (or its replacement, as applicable) are guaranteed pursuant to an Eligible Guarantee provided by a guarantor with the Minimum S&P Without Collateral Credit Rating and the First Moody's Trigger Required Ratings.

 

Firm Offer means an offer which, when made, was capable of becoming legally binding upon acceptance.

 

  

Page 8

  

 

The First Moody's Rating Trigger Requirements shall apply so long as no Relevant Entity has the First Moody's Trigger Required Ratings.

 

An entity shall have the First Moody's Trigger Required Ratings where such entity:

 

	
  

	
(A)

	
is the subject of a Moody's Short-term Rating, if such rating is Prime-1 and its long-term, unsecured and unsubordinated debt or counterparty obligations are rated A2 or above by Moody's; and

 

	
  

	
(B)

	
is not the subject of a Moody's Short-term Rating, if its long-term, unsecured and unsubordinated debt or counterparty obligations are rated A1 or above by Moody's.

 

Initial Lodgment Period means a period of 10 Business Days following Party A ceasing to have the relevant Minimum S&P Without Collateral Credit Rating or the relevant Minimum S&P With Collateral Credit Rating (as the case may be).

 

Initial Remedy Period means a period of 60 days following Party A ceasing to have the relevant Minimum S&P With Collateral Credit Rating.

 

Minimum S&P With Collateral Credit Rating means:

 

	
  

	
(a)

	
during the S&P AAA Rating Period, the S&P AA+ Rating Period or the S&P AA Rating Period, a long term credit rating by S&P of BBB+ (or above); or

 

	
  

	
(b)

	
during the S&P AA- Rating Period, a long term credit rating by S&P of BBB (or above).

 

Minimum S&P Without Collateral Credit Rating means:

 

	
  

	
(a)

	
during the S&P AAA Rating Period or the S&P AA+ Rating Period:

 

	
  

	
(i)

	
if Party A has a short term credit rating by S&P, a short term credit rating by S&P of A-1 (or above) and a long term credit rating by S&P of A (or above); or

 

	
  

	
(ii)

	
if Party A does not have a short term credit rating by S&P, a long term credit rating by S&P of A+ (or above); or

 

	 	
(b) 

	
during the S&P AA Rating Period or the S&P AA- Rating Period:

 

	
  

	
(i)

	
if Party A has a short term credit rating by S&P, a short term credit rating by S&P of A-2 (or above) and a long term credit rating by S&P of A- (or above); or

 

	
  

	
(ii)

	
if Party A does not have a short term credit rating by S&P, a long term credit rating of A (or above).

 

Moody's Short-term Rating means a rating assigned by Moody's under its short-term rating scale in respect of an entity's short-term, unsecured and unsubordinated debt obligations.

 

Relevant Entities means Party A and any guarantor (each a Relevant Entity)  under an Eligible Guarantee in respect of all of Party A's present and future obligations under this Agreement.

 

  

Page 9

  

 

Relevant Transaction means a Transaction which is described in its Confirmation as a "Fixed Rate Basis Swap".

 

Replacement Transaction has the meaning given to it in Section 15A(j)(B).

 

S&P AA Rating Period means any period when any of the Class A Notes or Class B Notes are the subject of a long term rating by S&P of:

 

	 	
(a) 

	
AA; or

 

	
  

	
(b)

	
less than AA by reason of a downgrade of Party A that would otherwise give rise to an obligation under Section 15A.

 

S&P AA+ Rating Period means any period when any of the Class A Notes or Class B Notes are the subject of a long term rating by S&P of:

 

	 	
(a) 

	
AA+; or

 

	
  

	
(b)

	
less than AA+ by reason of a downgrade of Party A that would otherwise give rise to an obligation under Section 15A.

 

S&P AA- Rating Period means any period when any of the Class A Notes or Class B Notes are the subject of a long term rating by S&P of:

 

	 	
(a) 

	
AA-; or

 

	
  

	
(b)

	
less than AA- by reason of a downgrade of Party A that would otherwise give rise to an obligation under Section 15A.

 

S&P AAA Rating Period means any period when any of the Class A Notes are the subject of a long term rating by S&P of:

 

	 	
(a) 

	
AAA; or

 

	
  

	
(b)

	
less than AAA by reason of a downgrade of Party A that would otherwise give rise to an obligation under Section 15A.

 

The Second Moody's Rating Trigger Requirements shall apply so long as no Relevant Entity has the Second Moody's Trigger Required Ratings.

 

An entity shall have the Second Moody's Trigger Required Ratings where such entity:

 

	
  

	
(A)

	
is the subject of a Moody's Short-term Rating, if such rating is Prime-2 or above and its long-term, unsecured and unsubordinated debt or counterparty obligations are rated A3 or above by Moody's; and

 

	
  

	
(B)

	
is not the subject of a Moody's Short-term Rating, if its long-term, unsecured and unsubordinated debt or counterparty obligations are rated A3 or above by Moody's.

 

	 	
(b) 

	
If, at any time during any S&P AAA Rating Period, S&P AA+ Rating Period, S&P AA Rating Period or S&P AA- Rating Period, as a result of the withdrawal or downgrade of Party A's credit rating by S&P, Party A does not have the relevant Minimum S&P Without Collateral Credit Rating but does have the Minimum S&P With Collateral Credit Rating, Party A shall, at its cost, within the Initial Lodgment Period either:

 

  

Page 10

  

 

	 	
(i) 

	
lodge an amount, or additional amount, as applicable, into the Swap Collateral Account such that the amount standing to the credit of the Swap Collateral Account is not less than the Credit Support Amount calculated according to the S&P Criteria (as defined in the 1995 ISDA Credit Support Annex (Bilateral Form – Transfer) that relates to this Agreement) (“Collateral Agreement”); or

 

	 	
(ii) 

	
before the expiry of the Initial Lodgment Period provide written plans to S&P for the posting by Party A to the Swap Collateral Account of an amount or additional amount referred to in sub-paragraph (i). If such written plans are in form and substance acceptable to S&P, Party A shall lodge such amount specified under sub-paragraph (i) above in accordance with such written plans (in any case no later than 10 Business Days after the expiry of the Initial Lodgment Period).

 

	 	
(c) 

	
If, at any time during any S&P AAA Rating Period, S&P AA+ Rating Period, S&P AA Rating Period or S&P AA- Rating Period, as a result of the withdrawal or downgrade of Party A's credit rating by S&P, Party A does not have the relevant Minimum S&P With Collateral Credit Rating, Party A shall, at its cost:

 

	 	
(i) 

	
to the extent it has not already done so under Section 15A(b), lodge an amount into the Swap Collateral Account in accordance with Section 15A(b); and

 

	 	
(ii) 

	
either:

 

	 	
(A) 

	
use commercially reasonable endeavours to procure that within the Initial Remedy Period:

 

	 	
(1) 

	
Party A has novated all its rights and obligations under this Agreement to an Eligible Replacement; or

 

	 	
(2) 

	
a guarantor with the Minimum S&P Without Collateral Credit Rating has issued an Eligible Guarantee; or

 

	 	
(B) 

	
before the expiry of the Initial Remedy Period provide written plans to S&P on its remedial actions (which may include draft documentation or letter of intent from an Eligible Replacement as to novation or the issue of an Eligible Guarantee). If such written plans are in form and substance acceptable to S&P, Party A shall use commercially reasonable endeavours to undertake the relevant action specified under sub-paragraph (A) in accordance with such written plans (in any case no later than 30 days after the expiry of the Initial Remedy Period).

 

	 	
(d) 

	
If, at any time, the First Moody's Rating Trigger Requirements or the Second Moody's Rating Trigger Requirements (as the case may be) apply, Party A shall (at its own cost) within 30 Business Days following the First Moody's Rating Trigger Requirements, or (subject to paragraph (l)) the Second Moody's Rating Trigger Requirements, commencing to apply:

 

	 	
(i) 

	
lodge an amount, or additional amount, as applicable, into the Swap Collateral Account such that the amount standing to the credit of the Swap Collateral Account is not less than the Credit Support Amount calculated according to the Moody's Requirements (as defined in the Collateral Agreement); or

 

  

Page 11

  

 

	 	
(ii) 

	
either:

 

	 	
(A) 

	
novate all its rights and obligations under this Agreement to an Eligible Replacement; or

 

	 	
(B) 

	
arrange for the provision of an Eligible Guarantee by a guarantor with the Second Moody's Trigger Required Ratings.

 

	 	
(e) 

	
Where Party A procures an Eligible Replacement in accordance with Section 15A(c)(ii)(A)(1) or 15A(d)(ii)(A), each party to this Agreement shall, at the cost of Party A, do all things necessary to novate the relevant obligations to the Eligible Replacement.

 

	 	
(f) 

	
If, at any time:

 

	 	
(i) 

	
Party A is assigned a long term credit rating by S&P at least equal to the relevant Minimum S&P Without Collateral Credit Rating and Party A has the First Moody's Trigger Required Ratings; or

 

	
  

	
(ii)

	
Party A's obligations under this Agreement are novated to a replacement counterparty in accordance with Section 15A(c)(ii)(A)(1) or 15A(d)(ii)(A) above; or

 

	
  

	
(iii)

	
a guarantor provides an Eligible Guarantee in accordance with Section 15A(c)(ii)(A)(2) or 15A(d)(ii)(B) above; or

 

	
  

	
(iv)

	
during any period:

 

	
  

	
(A)

	
which is not during any S&P AAA Rating Period, S&P AA+ Rating Period, S&P AA Rating Period or S&P AA- Rating Period; and

 

	
  

	
(B)

	
in which none of the Class A Notes or the Class B Notes is rated by Moody's,

 

Party B agrees to repay (and the Trust Manager agrees to direct Party B to repay) to Party A the amount then credited to the Swap Collateral Account together with any accrued interest which has not been paid to Party A or deposited in the Swap Collateral Account.

 

	 	
(g) 

	
All interest on the Swap Collateral Account will accrue and be payable to Party A in accordance with the Collateral Agreement.  However, if at any time the balance of the money credited to the Swap Collateral Account is less than the amount of collateral Party A is required to maintain at that time in accordance with Section 15A(b)(i), 15A(c)(i) or 15A(d)(i) above, all or part of any interest paid at any such time, up to an amount equal to the shortfall in the amount of the collateral, must be deposited directly into the Swap Collateral Account and must not be paid to Party A.

 

	 	
(h) 

	
Party B may make withdrawals from the Swap Collateral Account only for the purpose of:

 

  

Page 12

  

 

	 	
(i) 

	
novating obligations under this Agreement in accordance with Section 15A(c)(ii)(A)(1) or 15A(d)(ii)(A) above;

 

	 	
(ii) 

	
refunding to Party A the amount of any reduction in the Credit Support Amount, from time to time and providing that the Trust Manager has given a Rating Notification in respect of such refund;

 

	 	
(iii) 

	
withdrawing any amount which has been incorrectly deposited into the Swap Collateral Account;

 

	 	
(iv) 

	
paying any applicable bank account taxes or equivalent payable in respect of the Swap Collateral Account; or

 

	 	
(v) 

	
funding the amount of any payment due to be made by Party A under this Agreement following the failure by Party A to make that payment;

 

or as otherwise permitted by Section 15B.

 

	 	
(i) 

	
Party A’s obligations under this Section 15A shall terminate upon the termination or novation of this Agreement in accordance with this Agreement.

 

	 	
(j) 

	
Additional Termination Events

 

Each of the following shall constitute an Additional Termination Event with Party A as the sole Affected Party:

 

	 	
(i) 

	
Party A has failed to comply with or perform any obligation to be complied with or performed by Party A under:

 

	 	
(A) 

	
Section 15A(b), 15A(c)(i) or 15A(m); or

 

	 	
(B) 

	
15A(d) and either (1) the Second Moody's Rating Trigger Requirements do not apply or (2) less than 30 Business Days have elapsed since the last time the Second Moody's Rating Trigger Requirements did not apply;

 

	 	
(ii) 

	
Party A has ceased to have the Minimum S&P Without Collateral Credit Rating and has not, within 60 days or, if it has complied with Section 15A(c)(ii)(B), within 90 days following such cessation either:

 

	 	
(A) 

	
novated all its rights and obligations under this Agreement to an Eligible Replacement; or

 

	 	
(B) 

	
arranged for the provision of an Eligible Guarantee by a guarantor with the Minimum S&P Without Collateral Credit Rating; or

 

	 	
(iii) 

	
(A) The Second Moody's Rating Trigger Requirements apply and 30 or more Business Days have elapsed since the last time the Second Moody's Rating Trigger Requirements did not apply and (B) at least one Eligible Replacement has made a Firm Offer that would, assuming the occurrence of an Early Termination Date, qualify as a Market Quotation and which remains capable of becoming legally binding upon acceptance.

 

For the purposes of each of the Additional Termination Events specified in this paragraph (j), Market Quotation means, with respect to one or more Terminated Transactions, a Firm Offer which is:

 

  

Page 13

  

 

	 	
(A) 

	
made by a Reference Market-maker that is an Eligible Replacement;

 

	 	
(B) 

	
for an amount that would be paid to Party B (expressed as a negative number) or by Party B (expressed as a positive number) in consideration of an agreement between Party B and such Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for Party B the economic equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under this Agreement in respect of such Terminated Transactions or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that date;

 

	 	
(C) 

	
made on the basis that Unpaid Amounts in respect of the Terminated Transaction or group of Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early Termination Date is to be included; and

 

	 	
(D) 

	
made in respect of a Replacement Transaction with terms that are, in all material respects, no less beneficial for Party B than those of this Agreement (save for the exclusion of provisions relating to Transactions that are not Terminated Transactions), as determined by Party B. In determining whether or not a Firm Offer satisfies this sub-paragraph (D), Party B (acting on the direction of the Trust Manager) shall act in a commercially reasonable manner.

 

	 	
(k) 

	
The provision of collateral by Party A under this Section 15A is not intended to create a charge.

 

	 	
(l) 

	
Where the Second Moody's Rating Trigger Requirements apply, and Party A elects to take the action referred to in Section 15A(d)(i) above, Party A must also take one of the actions referred to in Section 15A(d)(ii) as soon as is reasonably practicable using commercially reasonable efforts to do so following the relevant withdrawal or downgrade of Party A's rating.

 

	 	
(m) 

	
If Party A has lodged collateral pursuant to Section 15A(b) above, it shall, for so long as Party A is required to lodge such collateral, obtain and provide S&P with:

 

	 	
(i) 

	
no less frequently than semi-annually, a Market Quotation in relation to each Relevant Transaction (assuming that Relevant Transaction to be a Terminated Transaction) from an independent Eligible Replacement (as Reference Market-maker); and

 

	 	
(ii) 

	
no less frequently than required in order to comply with the S&P Counterparty Criteria so as not to affect the credit rating of any Notes rated by S&P, a Market Quotation in relation to each Relevant Transaction (assuming that Relevant Transaction to be a Terminated Transaction) which may be provided by Party A (as Reference Market-maker) using such pricing services or internal pricing models as are from time to time consistent with the S&P Counterparty Criteria.

 

  

Page 14

  

 

	 	
15B. 

	
Downgrade of Variable Rate Swap Provider

 

	 	
(a) 

	
In this Section 15B, the following additional definitions have the following meanings:

 

Downgrade means Party A’s rating by a Designated Rating Agency has been withdrawn or reduced resulting in Party A having a short term credit rating of less than A-2 by S&P or ratings of less than P-1 (short-term) and A2 (long-term) by Moody’s.

 

Relevant Transaction means a Transaction described in its Confirmation as a "Variable Rate Basis Swap".

 

	 	
(b) 

	
If, on any Determination Date, Party A is Downgraded and the Threshold Rate is greater than the Weighted Average Customer Rate (as defined in the Confirmation for a Relevant Transaction), Party A shall immediately (in any event no later than 3 Business Days) deposit into a Swap Collateral Account and maintain in the Swap Collateral Account (whilst the relevant Downgrade subsists and the Threshold Rate is greater than the Weighted Average Customer Rate) the amount of the next payment that is due to be paid by Party A to Party B under the Relevant Transactions (the "Swap Collateral Amount”).

 

	 	
(c) 

	
All interest on the Swap Collateral Account will accrue and be payable monthly to Party A.

 

	 	
(d) 

	
Party B may make withdrawals from the Swap Collateral Account only for the purpose of:

 

	 	
(i) 

	
refunding to Party A the amount of any reduction in the Swap Collateral Amount, from time to time;

 

	 	
(ii) 

	
withdrawing any amount which has been incorrectly deposited into the Swap Collateral Account;

 

	 	
(iii) 

	
paying any applicable bank account taxes or equivalent payable in respect of the Swap Collateral Account; or

 

	 	
(iv) 

	
funding the amount of any payment due to be made by Party A under this Agreement following the failure by Party A to make that payment;

 

or as otherwise permitted by Section 15A.

 

	 	
(e) 

	
If a Downgrade no longer applies to Party A, Party A shall be immediately entitled to any cash collateral amount which it has deposited in the Swap Collateral Account, less any amounts used or to be used by Party B under paragraph (d)(iii) or (d)(iv).

 

The failure by Party A to comply with Section 15B(b) shall constitute an Additional Termination Event with Party A as the sole Affected Party.

 

  

Page 15

  

 

	
(l)

	
A new Section 16 is added as follows:

 

	
16.

	
References and Remedies

 

	 	
(a) 

	
Any reference to a:

 

	 	
(i) 

	
"Swap Transaction" in the 2000 ISDA Definitions is deemed to be a reference to a "Transaction" for the purpose of interpreting this Agreement or any Confirmation; and

 

	 	
(ii) 

	
"Transaction" in this Agreement or any Confirmation is deemed to be a reference to a "Swap Transaction" for the purpose of interpreting the 2000 ISDA Definitions.

 

	
  

	
(b)

	
Trust Deed: The parties acknowledge and agree that for the purposes of the Trust Deed and the Series Notice, this Agreement is a “Hedge Agreement” and Party A is a “Swap Provider” and “Support Facility Provider”.

 

	
(m) 

	
Distribution of Payments.

 

Each party agrees and acknowledges that any payments under this Agreement shall be applied in accordance with the cashflow allocation methodology set out under clause 5 of the Series Notice.

 

  

Page 16

  

 

PARTY A

 

 

	
SIGNED on behalf of

	
)

	 
	
WESTPAC BANKING CORPORATION

	
)

	 
	
by its attorneys under power of attorney

	
)

	
 

	 
	
in the presence of:

	
)

	 	 
	  	  	
Signature

	 
	  	  	 
	  	  	
Print name

	 
	
Witness

	  	   	 
	  	
 

	 
	  	  	
Signature

	 
	  	  	  	 
	
Print name

	  	
Print name

	 

 

 

 

TRUST MANAGER

 

 

	
SIGNED on behalf of

	
)

	 
	
WESTPAC SECURITISATION MANAGEMENT PTY LIMITED

	
)

	 
	
by its attorney under power of attorney

	
)

	 	 
	
in the presence of:

	
)

	
Signature

	 
	  	  	  	 
	  	
Print name

	 
	  	  	  	 
	
Witness

	  	  	 
	  	  	 
	  	  	  	 
	  	  	  	 
	
Print name

	  	  	 

 

  

Page 17

  

 

PARTY B

 

 

	
SIGNED on behalf of

	
)

	 
	
BNY TRUST COMPANY OF AUSTRALIA 

LIMITED as trustee of the Series 2011-3 WST Trust

	
)

	 
	
by its attorney under power of attorney

	
)

	 	 
	
in the presence of:

	
)

	
Signature

	 
	  	  	  	 
	  	
Print name

	 
	  	  	 	 
	
Witness

	  	  	 
	  	  	 
	  	  	  	 
	
Print name

	  	  	 

 

  

Page 18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]