Document:

Exhibit
10.1

 

(Multicurrency — Cross
Border)

 

ISDA®

 

International
Swap Dealers Association, Inc.

 

MASTER
AGREEMENT

 

dated
as of August 6, 2004

 

between

 

	
  Deutsche Bank AG, New York (“Party A”)

  	
   and

  	
  CRIIMI Financing Co., Inc. (“Party B”)

  

 

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

 

Accordingly, the parties agree as follows: —

 

1.             Interpretation

 

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

 

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

 

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

 

2.             Obligations

 

(a)           General Conditions.

 

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

 

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

 

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

 

 

Copyright © 1992 by
International Swap Dealers Association, Inc.

 

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

 

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

 

(i)            in the same currency; and

 

(ii)           in respect of the same Transaction,

 

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

 

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

 

(d)           Deduction or Withholding for Tax.

 

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

 

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

 

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

 

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

 

(4)           if
such Tax is an Indemnifiable Tax, pay to Y, in
addition to the payment to which Y is otherwise entitled under this Agreement,
such additional amount as is necessary to ensure that the net amount actually
received by Y (free and clear of Indemnifiable Taxes.
whether assessed against X or Y) will equal ft 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.

 

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(ii)           Liability.  If: —

 

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

 

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

 

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

 

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

 

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

 

3.             Representations

 

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

 

(a)           Basic Representations.

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

4.             Agreements

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)           Payment of Stamp Tax.  Subject to Section 11, it will pay any Stamp
Tax levied or imposed upon it or in respect of its execution or performance of
this Agreement by a jurisdiction in which it is incorporated,

 

4

 

organised,
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
or Default and Termination Events

 

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

 

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

 

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

 

(iii)          Credit Support Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

6.             Early
Termination

 

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

 

(b)           Right to Terminate Following Termination Event.

 

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

 

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

 

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

 

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

 

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

 

(iv)          Right to
Terminate.  If:—

 

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

 

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

 

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

 

8

 

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

 

(c)           Effect of Designation.

 

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

 

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

 

(d)           Calculations.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

7.             Transfer

 

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

 

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

 

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

 

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

 

8.             Contractual
Currency

 

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

 

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

 

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

 

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

 

11

 

9.             Miscellaneous

 

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

 

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

 

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

 

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

 

(e)           Counterparts and Confirmations.

 

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

 

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

 

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

 

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

 

10.          Offices;
Multibranch Parties

 

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

 

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

 

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

 

11.          Expenses

 

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

 

12

 

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

 

12.          Notices

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13.          Governing
Law and Jurisdiction

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

14.          Definitions

 

As used in this Agreement: —

 

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

 

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

 

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

 

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

 

“Applicable Rate”
means: —

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Loss” means,
with respect to this Agreement or one or more Terminated Transactions, as the
case may be, and a party, the Termination Currency Equivalent of an amount that
party reasonably determines in good faith to be its total losses and costs (or
gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions,
as the case may be, including any loss of bargain, cost of funding or, at the
election of such party but without duplication, loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge
or related trading position (or any gain resulting from any of them). Loss
includes losses and costs (or gains) in respect of any payment or delivery
required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made,
except, so as to avoid duplication, if Section 6(c)(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 each applicable condition precedent) by the parties under
Section 2(a)(i) in respect of such Terminated
Transaction or group of Terminated Transactions that would, but for the
occurrence of the relevant Early Termination Date, have

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

 

	
  DEUTSCHE BANK AG, New York
  (“Party A”)

  	
  CRIIMI FINANCING CO., INC.
  (“Party B”)

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kathleen Yohe

  	
   

  	
  By:

  	
  /s/ Cynthia O. Azzara

  	
   

  
	
  Name: Kathleen Yohe 

  	
  Name: Cynthia O. Azzara 

  
	
  Title: Vice President 

  	
  Title: Executive Vice
  President/CFO

  
	
  Date:

  	
  Date: 9-30-04

  
	
   

  	
   

  
	
  By:

  	
  /s/ Carlo-Edoardo  Carlon

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name: Carlo-Edoardo  Carlon

  	
  Name:

  
	
  Title: Vice President
  & Counsel 

  	
  Title:

  
	
  Date:

  	
  Date:

  

 

18Exhibit 10.2

 

(Multicurrency-
Cross Border)

 

 

SCHEDULE

to the

ISDA
Master Agreement

 

dated as of August 6,
2004

between

Deutsche Bank AG, New York Branch (“Party A”)

and

CRIIMI Financing Co., Inc. (“Party B”)

 

Part 1.  Termination
Provisions.

 

(a)                                  “Specified Entity” means:

 

(i)                                     in relation to Party A: Not Applicable

 

(ii)                                  in relation to Party B: Not Applicable

 

(b)                                 “Specified Transaction” shall have
the meaning specified in Section 14 of this Agreement save that Section 14
shall be hereby amended by adding the text “commodity transaction, credit
derivative transaction, repurchase or reverse repurchase transaction,
securities lending transaction” after the words “foreign exchange transaction”
in the sixth line thereof.

 

(c)                                  The
“Cross Default” provisions of Section 5(a)(vi) will apply to Party A and will apply to Party B
subject to amendment by adding at the end thereof the following words:

 

“provided,
however, that, notwithstanding the foregoing, an Event of Default shall not
occur under either (1) or (2) above if (A) (I) the default, or other similar
event or condition referred to in (1) or the failure to pay referred to in (2)
is a failure to pay or deliver caused by an error or omission of an
administrative or operational nature, and (II) funds or the asset to be
delivered were available to such party to enable it to make the relevant
payment or delivery when due and (III) such payment or delivery is made within
three (3) Local Business Days following receipt of written notice from an
interested party of such failure to pay, or (B) such party was precluded from paying, or was unable to pay, using reasonable
means, through the office of the party through which it was acting for purposes
of the relevant Specified Indebtedness, by reason of force majeure, act of
State, illegality or impossibility.”

 

If
such provisions apply:

 

 

“Specified Indebtedness”
shall mean any obligation (whether present or future, contingent or otherwise,
as principal or surety or otherwise) in respect of borrowed money other than
indebtedness in respect of bank deposits received in the ordinary course of
business.

 

With
regard to Party A, “Threshold Amount” means 1% of its
shareholders’ equity (i.e., the sum of its capital and disclosed reserves.)

 

With
regard to Party B, “Threshold Amount” means $10,000,000.

 

(d)                                 The  “Credit Event Upon Merger”
provision in Section 5(b)(iv) will not apply to
Party A and will not apply to Party B.

 

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

 

(f)                                    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.

 

(g)           “Termination Currency” means United
States Dollars.

 

(h)                                 “Additional Termination Event” The
following shall constitute an Additional Termination Event with respect to
Party B: the occurrence of (i) a Change of Control, as such term is defined in
the Master Repurchase Agreement dated as of June 30, 2004 entered into
between Party A (acting through its Cayman Islands Branch) and Party B (the “Repurchase
Agreement”), to Party B, (ii) a termination of the Repurchase Agreement, in
which case the provisions of Section 6 will be automatically applied, or
(iii) an uncured Event of Default (as defined in the Repurchase Agreement)
under the Repurchase Agreement, in which case, either Party A or Party B has
given notice under Section 6 of the Agreement to the extent required
thereunder.  Party B shall be the
Affected Party for purposes of calculating the payments due under Section 6(e)
of the Agreement with respect to any Additional Termination Event.

 

Part 2.  Tax
Representations.

 

(a)                                  Payer Tax Representations.  For the purposes of Section 3(e) of this
Agreement, Party A and Party B will each make the following representations to
the other:

 

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, each party may rely on:

 

2

 

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

 

(ii)                                  the
satisfaction of the agreement 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) of this Agreement, and

 

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

 

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

 

(b)                                 Payee Tax Representations.

 

(i)                                     For purposes of Section 3(f) of this
Agreement, Party A makes the following representations:

 

(A)                              It is a “foreign person” within the
meaning of the applicable U.S. Treasury Regulations concerning information
reporting and backup withholding tax (as in effect on January 1, 2001),
unless Party A provides written notice to Party B that it is no longer a
foreign person.  In respect of each
Transaction it enters into through an office or discretionary agent in the
United States or which otherwise is allocated for United States federal income
tax purposes to such United States trade or business, each payment received or
to be received by it under such Transaction will be effectively connected with
its conduct of a trade or business in the United States.

 

(B)                                In respect
of all Transactions (other than those described in (A) above), no payment
received or to be received by it in connection with this Agreement is
attributable to a trade or business carried on by it through a permanent
establishment in the United States.

 

(ii)                                  For
the purpose of Section 3(f) of this Agreement, Party B represents
that it is a corporation organized and existing under the laws of the State of
Maryland and its taxpayer identification number is:  20-1316052.

 

Each
payment received or to be received by Party B in connection with this Agreement
will be treated as effectively connected with the conduct of a trade or
business in the United States of America by Party B.

 

3

 

Party
B is a “United States person” for U.S. federal tax purposes as that term is
defined in Section 7701(a) (30) (or any applicable successor provision) of
the U.S. Internal Revenue Code of 1986, as amended.

 

Part 3.  Documents to
be delivered.

 

(a)                                  For
the purpose of Section 4(a)(i), the documents to
be delivered are:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date by which to be

  delivered

  	
   

  	
  Section

  3(d) Representation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A

  	
   

  	
  An executed
  United States Internal Revenue Service Form W-8ECI (or any successor thereto)
  and an executed United States Internal Revenue Service Form W-8BEN (or any
  successor thereto).

  	
   

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party B

  	
   

  	
  An executed
  United States Internal Revenue Service Form W-8ECI (or any successor
  thereto), Form W-8BEN (or any successor thereto), or W-9 (or any successor
  thereto), as applicable.

  	
   

  	
  (i) Promptly
  upon reasonable demand by Party A and (ii) promptly upon learning that any
  such form previously provided by Party B has become obsolete or incorrect.

  	
   

  	
   

  

 

(b)                         For the
purposes of Section 4(a)(ii), the other documents
to be delivered are as follows:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date by which to be

  delivered

  	
   

  	
  Section 3(d)

  representation:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A and
  Party B

  	
   

  	
  Evidence of the
  authority, incumbency and specimen signature of each person executing this
  Agreement or any Confirmation or other document entered into in connection
  with this Agreement on its behalf or on behalf of a Credit Support Provider
  or otherwise, as the case may be.

  	
   

  	
  Upon or prior to
  the delivery of each such document by any such person.

  	
   

  	
  Applicable

  

 

4

 

	
  Party A and
  Party B

  	
   

  	
  A copy of the
  most recent annual report containing consolidated financial statements of
  each party or its Credit Support Provider, if any, and such other public information
  respecting the condition or operations, financial or otherwise of such party
  or its Credit  Support Provider, if any, as
  the other party may reasonably request from time to time.

  	
   

  	
  Promptly after
  request by the other party.

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party B

  	
   

  	
  A copy of the
  resolution of Party B’s Board of Directors approving the entering into of
  this Agreement and each subsequent Transaction hereunder, and a board
  resolution delegating the powers to named individuals to enter into any
  Transactions under this Agreement. Party B shall also deliver to Party A a
  copy of its constituent documents, each certified by an appropriately
  authorized officer of Party B to the effect that such documents are up to
  date and in full force and effect and that Party A may continue to rely
  thereon.

  	
   

  	
  As of execution
  of this Agreement

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party B

  	
   

  	
  A legal opinion
  in a form satisfactory to Party A with respect to itself and its Credit
  Support Provider, if any.

  	
   

  	
  As of execution
  of this Agreement and any Credit Support Document.

  	
   

  	
  Applicable

  

 

5

 

Part 4.  Miscellaneous.

 

(a)                                  Address for Notices.  For the purpose of Section 12(a) of
this Agreement, the addresses for notices and communications to Party A and
Party B shall be as follows:

 

TO PARTY
A:

 

(i)                                     All
notices to Party A under Sections 5 or 6 of the Agreement (other than notices
under Section 5(a)(i)) shall be sent to:

 

Deutsche
Bank AG, Head Office

Taunusanlage
12

60262
Frankfurt

GERMANY

Attention:  Legal Department

Telex
No:  411836 or 416731 or 41233

Answerback:   DBF-D

Fax No.:(49)(69) 910-38406

 

(ii)                                  All
notices to Party A (other than those provided for in paragraph (i) above) shall
be sent directly to the office through which Party A is acting for the relevant
Transaction, using the address and contact particulars specified in the
Confirmation for the purposes of confirming that Transaction. If no such
particulars are so specified, such notices shall be sent to:

 

Deutsche
Bank AG, New York Branch

60
Wall Street

New
York, New York 10005

USA

Attn:  Swap Group

Tel:  (1)(212) 469-4338

Fax:  (1)(212) 469-4654

Telex:  429166

Answerback:  DEUTNYK

 

TO PARTY
B:

 

CRIIMI Financing
Co., Inc.

11200 Rockville Pike, 4th Floor,

Rockville, MD  20852

Attn:  General Counsel

Tel:  301-255-0676

Fax: 301-255-0620

 

6

 

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

 

Party
A appoints as its Process Agent:        Not
applicable.

 

Party
B appoints as its Process Agent:        Not
applicable

 

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

 

(d)                                 Multibranch Party.  For purposes of Section 10(c) of this
Agreement:

 

(i)  Party A is not a Multibranch Party and may
act through the New York Branch.

 

(ii)  Party B is not a Multibranch Party.

 

(e)                                  The
Calculation Agent shall be Party A
unless otherwise specified in the relevant Confirmation in relation to a
particular Transaction or unless an Event of Default has occurred and is
continuing with respect to Party A, in which case the Calculation Agent shall
be a recognized dealer designated by Party B to be the Calculation Agent.

 

(f)                                    Credit Support Document. Details of
any Credit Support Document:

 

Credit
Support Annex and Master Netting Agreement, each dated as of the date hereof,
between Party A and Party B, as the same may be amended, modified,
supplemented, restated or replaced from time to time by agreement between Party
A and Party B.

 

(g)                                 Credit Support Provider.  Credit Support Provider means in relation to
Party A or Party B:

 

Not
applicable

 

(h)                                 Governing Law. 
This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York (without
reference to its choice of law doctrine).

 

(i)                                     Netting of Payments.   Subparagraph (ii) of Section 2(c) of this
Agreement will apply to all Transactions.

 

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

 

Part 5.  Other
Provisions.

 

1.                                       Representations. 
Section 3(a) is amended by adding the following
paragraphs (vi), (vii), (viii), (ix) and(x):

 

7

 

“(vi)                        Non-Reliance, Etc.  Each party will be deemed to represent to the
other party on the date that it enters into a Transaction that (absent a
written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction):

 

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

 

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

 

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

 

(vii)                           Commodity
Exchange Act.  Each party
represents to the other party on and as of the date hereof and on each date on
which a Transaction is entered into between them that:

 

(a)                                  each
Transaction is intended to be exempt from, or otherwise not subject to
regulation under, the Commodity Exchange Act; and

 

(b)                                 such party is an “eligible contract participant” within the
meaning of the Commodity Exchange Act, Section 1a(12).

 

(viii)                        No Agency. It is entering into this Agreement and each
Transaction as principal (and not as agent or in any other capacity, fiduciary
or otherwise).

 

(ix)                                Negotiated. The material terms of this Agreement and
each Transaction have been and will be individually tailored and negotiated.”

 

8

 

2.                                       Consent to Recording.

 

Each party (i) consents to the recording of the
telephone conversations of trading and marketing and/or other personnel of the
parties and their Affiliates in connection with this Agreement or any potential
Transaction (ii) agrees to obtain any necessary consent of and give notice of
such recording to such personnel of it and its Affiliates; and (iii) agrees
that recordings may be submitted in evidence in any Proceedings relating to
this Agreement.

 

3.                                 Tax Provisions.

 

(a)                                  The
definition of Tax Event, Section 5(b)(ii), is hereby modified by (i)
adding the following provision at the end thereof: “provided, however, that the
parties acknowledge that the proposal of laws, regulations or guidelines, shall
not, prior to the actual adoption or enactment thereof, constitute a
Termination Event hereunder;” and (ii) adding before the words “there is a
substantial likelihood that” the following words: “in the written opinion of
tax counsel of recognized standing”.

 

(b)                                 The
definition of term “Indemnifiable Tax” is amended by adding the following
provisions at the end thereof:

 

“Notwithstanding the foregoing, “Indemnifiable Tax”
also means any Tax imposed in respect of a payment under this Agreement by
reasons of a Change in Tax Law by a government or taxing authority of a
Relevant Jurisdiction of the party making such payment, unless the other party
is incorporated, organized, managed and controlled or considered to have its
seat in such jurisdiction, or is acting for purposes of this Agreement through
a branch or office located in such jurisdiction.”

 

4.                                       Set Off.

 

Section 6 of this Agreement is amended by the
addition of the following Section 6(f):

 

“(f)                              Upon
the designation of any Early Termination Date, the party that is not the
Defaulting Party or Affected Party (“X”) may, without prior notice to the
Defaulting or Affected Party (“Y”), set off any sum or obligation (whether or
not arising under this Agreement, whether matured or unmatured, whether or not
contingent and irrespective of the currency, place of payment or booking office
of the sum or obligation) owed by Y to X or any Affiliate of X (the “X Set Off
Amount”) against any sum or obligation (whether or not arising under this
Agreement, whether matured or unmatured, whether or not contingent and
irrespective of the currency, place of payment or booking office of the sum or
obligation) owed by X or any Affiliate of X to Y (the “Y Set Off Amount”).  X will give notice to the other party of any
set off effected under this Section 6(f).

 

For
this purpose, either the X Set Off Amount or the Y Set Off Amount (or the
relevant portion of such set off amounts) may be converted by X into the currency
in which the other set off amount is denominated at the rate of exchange at
which X would be able,

 

9

 

acting in a reasonable manner and
in good faith, to purchase the relevant amount of such currency.

 

If a
sum or obligation is unascertained, X may in good faith estimate that
obligation and set-off in respect of the estimate, subject to the relevant
party accounting to the other when the obligation is ascertained.

 

Nothing in this Section 6(f) shall be effective
to create a charge or other security interest. 
This Section 6(f) shall be without prejudice and in addition to any
right of set-off, combination of accounts, lien or other rights to which any
party is at any time otherwise entitled (whether by operation of law, contract
or otherwise).”

 

5.                                       Escrow.

 

On any date on which both parties are required to make
payments hereunder, either party may at its option and in its sole discretion
notify the other party that payments on that date are to be made in escrow.  In this case deposit of the payment due
earlier on that date shall be made by 2:00 p.m. (local time at the place for
the earlier payment if there is a time difference between the cities in which
payments are to be made) on that date with an escrow agent selected by the
party giving the notice and reasonably acceptable to the other party,
accompanied by irrevocable payment instructions (a) to release the deposited
payment to the intended recipient upon receipt by the escrow agent of the
required deposit of the corresponding payment from the other party on the same
date accompanied by irrevocable payment instructions to the same effect or (b)
if the required deposit of the corresponding payment is not made on that same
date, to return the payment deposited to the party that paid it into escrow at
such party’s request.  The party that
elects to have payments made in escrow shall pay the costs of the escrow
arrangements and shall cause those arrangements to provide that the intended
recipient of the payment due to be deposited first shall be entitled to
interest on that deposited payment for each day in the period of its deposit at
the rate offered by the escrow agent for that day for overnight deposits in the
relevant currency in the office where it holds that deposited payment (at 11:00
a.m. local time on that day) if that payment is not released by 5:00 p.m. local
time on the date it is deposited for any reason other than the intended
recipient’s failure to make the escrow deposit it is required to make hereunder
in a timely fashion.

 

6.                                       Transfer.

 

Notwithstanding Section 7 of this Agreement, this
Agreement, any interest or obligation in or under this Agreement or any
Transaction may not be transferred by (a) Party A without the written consent
from Party B, provided however that (i) Party A may transfer all, but not less
than all, of its interests and obligations in and under this Agreement and all
Transactions without such consent to an affiliate of Party A if no Event of
Default with respect to Party A is then continuing or will result from such
transfer and the obligations and rights of Party B are not increased or
diminished, respectively, as a result of such transfer, (ii) Party A agrees to
only transfer to a transferee in a ‘netting” jurisdiction in which netting
under this Agreement shall be enforceable, (iii) it would not

 

10

 

as of the date of such transfer be unlawful for either
party to perform any obligation under this Agreement as a result of such
transfer and ((iv) the rights and obligations of Party A under the Repurchase
Agreement are transferred to the same entity to which Party A transferred this
Agreement; or (b) by Party B without the written consent from Party A, in
either case, such written consent not to be unreasonably withheld or delayed
and any transfer without such required written consent shall be void and of no
force or effect .

 

7.                                       Additional Acknowledgments and Agreements of the
Parties.

 

(a)                                  Deutsche Bank Securities Inc.  Each party acknowledges and
agrees that (i) Deutsche Banc Alex. Brown Inc. or another designated Affiliate
of Party A (the “Designated Agent”) will act as agent for Party A in connection
with certain Transactions when so specified in the Transaction Confirmation;
and (ii) the Designated Agent is acting solely as agent and shall have no
liability for the performance of either party’s obligations under this
Agreement or any Transaction, or for costs, expenses, damages or claims arising
out of the failure of either party to perform any such obligation.

 

(b)           Bankruptcy Code.  Without limiting the applicability if
any, of any other provision of the U.S. Bankruptcy Code as amended (the “Bankruptcy
Code”) (including without limitation Sections 362, 546, 556, and 560 thereof
and the applicable definitions in Section 101 thereof), the parties
acknowledge and agree that all Transactions entered into hereunder will
constitute “forward contracts” or “swap agreements” as defined in Section 101
of the Bankruptcy Code or “commodity contracts” as defined in Section 761
of the Bankruptcy Code, that the rights of the parties under Section 6 of
this Agreement will constitute contractual rights to liquidate Transactions,
that any margin or collateral provided under any margin, collateral, security,
pledge, or similar agreement related hereto will constitute a “margin payment”
as defined in Section 101 of the Bankruptcy Code, and that the parties are
entities entitled to the rights under, and protections afforded by, Sections
362, 546, 556, and 560 of the Bankruptcy Code.

 

(c)                                  Waiver of Right to Trial by Jury.  Each of the parties hereby
irrevocably waives any and all right to a trial by jury with respect to any
legal proceeding arising out of or relating to this Agreement or any Transaction.

 

8.                                       Change
of Account. Section 2(b) is hereby amended by
adding the following at the end thereof:

 

“and provided that, unless
the other party consents (which consent shall not be unreasonably be withheld),
such new account shall be in the same tax jurisdiction as the original account.”

 

11

 

9.                                       Default
under Specified Transactions. The provisions of Section 5(a)(v)
of this Agreement are modified by adding, immediately prior to the semicolon at
the end thereof, the following:  “provided,
however, that it shall not constitute an Event of Default under Section 5(a)(v)
if (A) such event of default or failure to pay arises in the ordinary course of
business by mistake, oversight, or transfer difficulties, (B) funds were
available to such party to enable it to make the relevant payment when due, and
(C) such event of default or failure to pay is remedied on or before the fifth
Business Day after the occurrence or existence of such event of default or
failure to pay.”

 

10.                                 Cross
Default. The provisions of Section 5(a)(vi)
of this Agreement are modified by adding, immediately prior to the semicolon at
the end thereof, the following:  “provided,
however, that it shall not constitute an Event of Default under Section 5(a)(vi)
if (A) such event of default or failure to pay arises in the ordinary course of
business by mistake, oversight, or transfer difficulties, (B) funds were
available to such party to enable it to make the relevant payment when due and
(C) such event of default or failure to pay is remedied on or before the fifth
Business Day after the occurrence or existence of such event of default or
failure to pay.”

 

11.                                 Payment
Date During Transfer Period. If the
parties are required by Section 6(b)(ii) to make efforts to transfer
certain obligations under this Agreement in connection with a Termination
Event, and a Payment Date (as defined in the related Confirmation) will occur
under the relevant Affected Transaction during the period specified in Section 6(b)
for those efforts, then the payment(s) due to be made on that Payment Date
shall be postponed until the earlier of (i) the Business Day following the day
on which a transfer is affected in consequence of such efforts; (ii) the
Business Day following the day on which such period ends, if an Early
Termination Date is not designated by a party on such day; and (iii) the Early
Termination Date for the relevant Affected Transaction, with such postponed
amounts then being treated as Unpaid Amounts. 
In either case, the postponed payment(s) shall bear interest (before as
well as after judgment) at the Applicable Rate from (and including) such
Payment Date to (but excluding) the date of actual payment.

 

12.                                 All Confirmations. Promptly after
the Trade Date of each Transaction, the parties will confirm the terms and
conditions of any Transaction entered into between them pursuant to the terms
of this Agreement by means of an exchange of telexes or facsimile transmissions
in substantially the form set out as Exhibit I to the Definitions (or such
other form as may be agreed by the parties). The parties hereby agree that any
such exchange of telexes or facsimile transmissions shall constitute a
Confirmation for all purposes hereunder. 
For the avoidance of doubt, this Agreement relates to all Confirmations,
whether by telex, facsimile or letter, entered between Party A and
Party B on or after the date of this Agreement, including, without
limitation, those entered into prior to actual execution of this Agreement.

 

12

 

	
  DEUTSCHE BANK
  AG,

  	
  CRIIMI FINANCING
  CO., INC.

  
	
  NEW YORK BRANCH

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kathleen
  Yohe

  	
   

  	
  By:

  	
  /s/ Mark A.
  Libera

  	
   

  
	
  Name: Kathleen
  Yohe

  	
  Name: Mark A.
  Libera

  
	
  Title: Vice
  President

  	
  Title: Acting
  General Counsel/VP

  
	
  Date:

  	
  Date:

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Carlo-Edoardo Carlon

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:
  Carlo-Edoardo Carlon

  	
  Name:

  
	
  Title: Vice
  President & Counsel

  	
  Title:

  
	
  Date:

  	
  Date:

  
										

 

13

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