Document:

Exhibit
10.3.2

 

Execution
Version

 

SCHEDULE

to the

1992 MASTER
AGREEMENT

 

Guaranteed Put
Contract

 

dated as of June 30,
2009

 

	
  among:

  	
  DEXIA
  SA (“Dexia”),

  
	
   

  	
   

  
	
   

  	
  DEXIA
  CRÉDIT LOCAL S.A. (“DCL”
  and, together with Dexia, the “Party A”), jointly and severally;

  
	
   

  	
   

  
	
  and

  	
  FSA ASSET MANAGEMENT LLC (“Party B”)

  

 

Part 1.           Termination Provisions

 

(a)                                  The “Failure
to Pay or Deliver” provisions of Section 5(a)(i)

 

(i)                                     will apply to Party A but are modified
with respect to Party A to read as follows:

 

“failure by the party to
make, when due, either (I) any payment under this Agreement or delivery
under Section 2(a)(i) or 2(e) or (II) any payment or
delivery under the Credit Support Annex required to be made by it if (A) such
failure to make payments or deliveries (taken together with any other
outstanding and uncured failures to make payments or deliveries by Party A or
its Affiliates in relation to Dexia Payment Obligations) exceeds the Default
Threshold and is not remedied within the Cure Period identified under and in
the manner described in the Pledge and Administration Agreement following
delivery of a Payment Failure Notice to Party A and (B) (x) the
relevant payment failed to be made by Party A (or a payment for the Value of
any failed delivery of Eligible Collateral) cannot be claimed from the
Sovereign Guarantors under the Sovereign Guarantee, (y) the Sovereign
Guarantors have failed to perform their payment obligations in relation thereto
in a timely manner pursuant to the terms of the Sovereign Guarantee or (z) a
Sovereign Guarantee Unenforceability Date has occurred”; and

 

(ii)                                  will not apply to Party B.

 

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

 

“Priority of Payments” has
the meaning defined in the Pledge and Administration Agreement.

 

“Sovereign Guarantee Unenforceability
Date” means any date prior to the Preference Extension Date on which
a court of Belgium or France or a supranational or international body, in each
case exercising appropriate jurisdiction, has made a final and nonappealable
determination (décision ayant en force de
chose jugée) that the Sovereign Guarantee is invalid, not binding or
unenforceable against either the Belgian State or the French State.  “Preference Extension Date” means the date
occurring six months (or the time period of any longer suspect, preference or
hardening period as may then be in effect under applicable law) following the
Liquidity and Collateral Trigger Expiration Date.

 

 

Each of DCL and Dexia covenants and agrees that it will not initiate or
join, and will not permit any of its respective Affiliates to initiate or join,
any litigation or proceeding to question the validity or enforceability of the
Sovereign Guarantee, or make a pleading or stipulation in any such proceeding
that would question the validity or enforceability of the Sovereign Guarantee.

 

“Sovereign Guarantors”
means the Belgian State and the French State.

 

“Sovereign Guarantee”
means the First Demand Guarantee dated June 30, 2009, issued by the
Sovereign Guarantors under which the Sovereign Guarantors guarantee the joint
and several payment obligations of Dexia under this Agreement.

 

Capitalized terms used and not defined herein have the meanings
assigned in the Pledge and Administration Agreement or if not defined therein,
in the Confirmation dated of even date herewith and captioned “Guaranteed Put
Contract” (the “Confirmation”).

 

(b)                                 The “Credit
Support Default” provisions of Section 5(a)(iii) will not
apply to Party A or to Party B (without prejudice to the application of Section 5(a)(i) as
amended hereby to payments or deliveries required to be made by Party A under
the Credit Support Annex).

 

(c)                                  Prior to the earlier of (x) March 30,
2035 and (y) any Sovereign Guarantee Unenforceability Date (the “Bankruptcy Coverage Expiration Date”), the “Bankruptcy” provisions of Section 5(a)(vii) will
not apply to Party A except where (x) a Dexia Bankruptcy has occurred, (y) Party
A has failed to pay the Put Settlement Amount following exercise of the Put
Option pursuant to the Bankruptcy Trigger, and (z) the Sovereign
Guarantors have failed to perform their payment obligations in relation to such
Put Settlement Amount in a timely manner pursuant to the terms of the Sovereign
Guarantee.

 

From and after the Bankruptcy Coverage Expiration Date,
the “Bankruptcy” provisions of Section 5(a)(vii) will
apply to Party A only where a Dexia Voluntary/Involuntary Bankruptcy has
occurred.

 

Section 5(a)(vii) will
not apply to Party B.

 

“Dexia Bankruptcy” means
the occurrence with respect to Dexia of an event described in Section 5(a)(vii),
provided, however, that on or before the Bankruptcy Coverage Expiration Date,
for purposes of determining whether a “Bankruptcy Trigger” shall have occurred
under the Confirmation, subclause (4) of Section 5(a)(vii) shall
be amended to read as follows:  “(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 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.”

 

“Dexia Voluntary/Involuntary
Bankruptcy” means the occurrence
with respect to Dexia of an event described in Section 5(a)(vii),
provided, however, that, subclause (4) of Section 5(a)(vii) shall
be amended so that the reference to “30 days” in subclause (4)(B) of Section 5(a)(vii) shall
refer to “60 days”.

 

For the avoidance of doubt, the occurrence only with respect to DCL,
and not with respect to Dexia, of an event described in Section 5(a)(vii) does
not constitute a Dexia Bankruptcy or Dexia Voluntary/Involuntary Bankruptcy.

 

2

 

(d)                                 Section 5(a)(vi) (Cross Default) will not apply to Party B and will apply to
Party A, provided that with respect to Party A, Section 5(a)(vi) will
be deleted in its entirety and replaced with the following:

 

“the occurrence of any Dexia Event of Default (other than an Event of
Default under Section 5(a) as modified by the Schedule) either (A) prior
to the earlier of (x) the Liquidity and Collateral Trigger Expiration Date
and (y) the Sovereign Guarantee Unenforceability Date, which Dexia Event
of Default has continued through such earlier date, or (B) on or after the
earlier of (x) the Liquidity and Collateral Trigger Expiration Date and (y) the
Sovereign Guarantee Unenforceability Date.”

 

“Dexia Event of Default”
has the meaning specified in the Pledge and Administration Agreement.

 

(e)                                  Section 5(a)(ii) (Breach of
Agreement), Section 5(a)(iv) (Misrepresentation), Section 5(a)(v) (Default
Under Specified Transaction) and Section 5(a)(viii) (Merger Without
Assumption) will not apply to Party A or Party B.

 

(f)                                    “Specified Entity” will not apply in relation to either
Party A or Party B.

 

(g)                                 “Termination Events”.  The  provisions
of Section 5(b) will not apply to Party A or Party B.

 

(h)                                 The “Automatic Early
Termination” provision of Section 6(a) will not apply to
Party A prior to the Bankruptcy Coverage Expiration Date, and thereafter will
apply to Party A.  Section 6(a) will
not apply to Party B at any time.  Party
B may not declare an Early Termination Date prior to the Bankruptcy Coverage
Expiration Date without written consent from FSA permitting it to do so,
provided that Party B shall declare an Early Termination Date at the direction
of FSA in accordance with Section 5.2(a)(iv) of the Pledge and
Administration Agreement, and any purported declaration by Party B without the
prior written consent of FSA shall be void ab initio and
of no effect.

 

(i)                                     “Payments on Early
Termination.   Notwithstanding anything to the contrary in Section 6(e) of
this Agreement, the amount payable by Party A in respect of any Early
Termination Date shall be an amount equal to the sum of (x) all net Unpaid
Amounts (subject to the delivery to Party A of any Put Settlement Assets
corresponding to any Put Settlement Amounts included in Unpaid Amounts), plus
(y) the applicable Exposure as determined by the Valuation Agent under the
Credit Support Annex as of such Early Termination Date.  Notwithstanding anything to the contrary in Section 6(e),
no amounts will be payable by Party B in respect of any Early Termination Date.

 

(j)                                     “Termination Currency” means U.S. Dollars.

 

(k)                                  “Additional Termination
Events” will not apply.

 

3

 

Part 2.           Tax Representations

 

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

 

It is not required by any applicable law, as modified by the practice
of any relevant governmental revenue authority, of any Relevant Jurisdiction to
make any deduction or withholding for or on account of any Tax from any payment
(other than interest under Section 2(e), 6(d)(ii) or 6(e) of
this Agreement) to be made by it to the other party under this Agreement.  In making this representation, it may rely on
(i) the accuracy of any representations made by the other party pursuant
to Section 3(f) of this Agreement, (ii) the satisfaction of the
agreement contained in Section 4(a)(i) or 4(a)(iii) of this
Agreement and the accuracy and effectiveness of any document provided by the
other party pursuant to Section 4(a)(i) or 4(a)(iii) of this
Agreement and (iii) the satisfaction of the agreement of the other party
contained in Section 4(d) of this Agreement, 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.

 

Payee
Representations.  For the purpose of Section 3(f) of
this Agreement, (i) Dexia represents that it is a company duly organized
under the laws of Belgium, (ii) DCL represents that it is a French share Company licensed as a bank under French
law, and (iii) Party B represents that it is a limited liability company organized
under the law of the State of Delaware.

 

4

 

Part 3.           Agreements to Deliver Documents

 

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

 

(a)                                  Tax forms, documents or certificates to
be delivered are:

 

	
  Party
  required to

  deliver document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date by which to be

  delivered

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A and Party B

  	
   

  	
  Any form, document or
  certificate reasonably required by the other party to enable it to pay free
  of or at a reduced rate of withholding tax

  	
   

  	
  As soon as practicable
  after written request is made

  

 

(b)                                 Other documents to be delivered are:

 

	
  Party
  required to

  deliver document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date by which

  to be delivered

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A and Party B

  	
   

  	
  Certificate or other
  documents evidencing the capacity of the party to enter into this Agreement
  and the Transaction hereunder and the authority of the
  person(s) executing this Agreement or a Confirmation, as the case may
  be.

  	
   

  	
  On or before execution
  of this Agreement.

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A

  	
   

  	
  Consolidated annual
  financial statements of Dexia, prepared in accordance with generally accepted
  accounting principles in the country in which the party is organized.

  	
   

  	
  Promptly after request
  (unless publicly available on the website of Dexia)

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A

  	
   

  	
  Each Credit Support
  Document

  	
   

  	
  On or before execution
  of this Agreement

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Party A

  	
   

  	
  A legal opinion as to
  enforceability of this Agreement and the Confirmation evidencing the
  Transaction hereunder.

  	
   

  	
  On or before execution
  of this Agreement.

  	
   

  	
  No

  

 

5

 

Part 4.           Miscellaneous

 

	
  (a)

  	
  Addresses for Notices. For the purpose of
  Section 12(a) of this Agreement:

  
	
   

  	
   

  
	
   

  	
  Address for notices or
  communications to Party A:

  
	
   

  	
   

  
	
   

  	
  Dexia Crédit Local, New
  York branch

  
	
   

  	
  445 Park Avenue

  
	
   

  	
  7th Floor

  
	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  
	
   

  	
  And

  
	
   

  	
   

  
	
   

  	
  Dexia SA

  
	
   

  	
  Place Rogier 11

  
	
   

  	
  B-1210 Brussels

  
	
   

  	
  Belgium

  
	
   

  	
  Attn.: Secretary General

  
	
   

  	
  e-mail:
  secretarygeneral@dexia.com and olivier.vanherstraeten@dexia.com

  
	
   

  	
  Telephone:
  +32-2-213.57.42 or +32-2-213.50.43

  
	
   

  	
  Telecopy No:
  +32-2-213.58.90

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Dexia Crédit Local, head
  office

  
	
   

  	
  Address: Dexia Crédit
  Local

  
	
   

  	
  Tour Dexia Défense 2

  
	
   

  	
  1, Passerelle des
  Reflets

  
	
   

  	
  TSA 92202

  
	
   

  	
  92919 La Défense Cedex

  
	
   

  	
  Attention: Tax and
  Legal Director

  
	
   

  	
  Facsimile No: +33 1 58
  58 69 90

  
	
   

  	
  Telephone No.: +33 1 58
  58 58 70

  
	
   

  	
   

  
	
   

  	
  Address for notices or
  communications to Party B:

  
	
   

  	
   

  
	
   

  	
  As set forth in the Pledge and Administration Agreement.

  
	
   

  	
   

  
	
   

  	
  Address for notices or communications to FSA:

  
	
   

  	
   

  
	
   

  	
  As set forth in the Pledge and Administration Agreement.

  
	
   

  	
   

  
	
  (b)

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

  
	
   

  	
   

  	
   

  
	
   

  	
  Party A appoint

  	
   

  
	
   

  	
  as their Process Agent:

  	
  Dexia Crédit Local, New
  York branch

  
	
   

  	
   

  	
  445 Park Avenue

  
	
   

  	
   

  	
  7th Floor

  
	
   

  	
   

  	
  New York, New York 10022

  

 

6

 

(c)                                  Offices. 
The provisions of Section 10(a) will apply to Party A and
Party B.  In furtherance, and not in
limitation, of Section 10(a) of this Agreement, DCL irrevocably
agrees that, if and to the extent that it enters into any Transaction or
Transactions hereunder through an Office other than its head or home office
(including, without limitation, its New York Branch), its obligations to Party
B in connection with such Transaction or Transactions shall be the same as if
it had entered into such Transaction or Transactions through its head or home
office; and if any or all of the claims of Party B against such other Office in
connection with such Transaction or Transactions are, in connection with any
insolvency, bankruptcy or other similar proceedings relating to such other
Office, disallowed as against such other Office by virtue of any law or rule disallowing,
or permitting the disallowance of, any such claim or claims in any such
proceedings by reason of the fact that Party B is (or was) an Affiliate of DCL
(including, without limitation, Section 606.4(a) of the New York
Banking Law), then such disallowance shall not affect the obligations of DCL
hereunder in relation to such Transaction or Transactions or the right of Party
B to enforce such obligations against the head or home office of DCL, or any
rights of Party B under the Credit Support Annex hereto.

 

(d)                                 Multibranch Party.  For the purpose
of Section 10(c):

 

DCL is a Multibranch Party and may act through its New York branch or
Paris Head Office.

 

Dexia and Party B are not Multibranch Parties.

 

(e)                                  Calculation Agent. 
As specified in the Confirmation.

 

(f)                                    Credit Support Documents. 
Details of Credit Support Documents and the Sovereign Guarantee:

 

Party A:  The
Credit Support Annex hereto and the Sovereign Guarantee.

Party B:  Not applicable.

 

(g)                                 Credit Support Provider. 
Credit Support Provider means

 

in relation to
Party A:  Prior to the expiration of the
term of the Sovereign Guarantee, the Sovereign Guarantors

 

in relation to
Party B:  None

 

(h)                                 Nontransferability.  Section 7 is replaced with the
following:

 

“Neither this
Agreement nor any interest or obligation in or under this Agreement or the
Sovereign Guarantee may be transferred (whether by way of security or
otherwise) by Party B without the consent of Party A, FSA and the Sovereign
Guarantors, other than (x) to pledge such rights to the Collateral Agent
as part of the FSAM Collateral, or (y) pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (an “Party B Merger”) where FSA and the
Sovereign Guarantors have given their consent to such Party B Merger (but
without prejudice to any other right or remedy under this Agreement).

 

Neither this
Agreement nor any interest or obligation in or under this Agreement or the
Sovereign Guarantee may be transferred (whether by way of security or
otherwise) by Dexia or DCL without the prior written consent of Party B, the
Sovereign Guarantors, and FSA, other than pursuant to a consolidation with, or merger with or
into, or transfer of all or substantially all its assets to, another entity (a “Corporate Reorganization”), provided that the Remedies 

 

7

 

Nonimpairment Condition
(as defined in the Pledge and Administration Agreement) is satisfied in
relation to such Corporate Reorganization.

 

FSA will not have the right to transfer any of its rights under this
Agreement without the consent of Party A and the Sovereign Guarantors, except
pursuant to a consolidation or amalgamation with, or merger with or into, or
transfer of all or substantially all FSA’s assets to, another entity (but
without prejudice to any other right or remedy under this Agreement).

 

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

 

(i)                                     Governing Law; Exclusive
Jurisdiction.

 

(i)                                     THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK AND THE MANDATORY CHOICE OF
LAW RULES CONTAINED IN THE UCC.

 

(ii)                                  Section 13(b) is hereby deleted
and replaced by the following:

 

“Each of the parties
hereto hereby irrevocably submits to the exclusive jurisdiction of any U.S.
federal or state court in The City of New York for the purpose of any suit,
action, proceeding or judgment arising out of or relating to this
Agreement.  Each of the parties hereto
hereby consents to the laying of venue in any such suit, action or proceeding
in New York County, New York, and hereby irrevocably waives any claim that any
such suit, action or proceeding brought in such a court has been brought in an
inconvenient forum and agrees not to plead or claim the same.  Notwithstanding the foregoing, nothing
contained in this Agreement shall limit or affect the rights of any party
hereto to exercise remedies under this Agreement or any of the other
Transaction Documents (as defined in the Pledge and Administration Agreement),
or to enforce any judgment with respect thereto, in any jurisdiction or venue.”

 

(j)                                     Netting of Payments.  Section 2(c) of
this Agreement will not apply.

 

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

 

(m)                               Set-off.  The rights and
obligations of the parties hereunder shall not be subject to, and shall not
form the basis for, any rights of setoff arising from a transaction not subject
to this Agreement; provided, that if on any day there are amounts
in the same currency payable both by Party A to Party B and by Party B to Party
A, in accordance with the Priority of Payments, such amounts may be set off
against one another and only a single net amount transferred by Party A to
Party B, or by Party B to Party A, as the case may be.

 

(n)                                 Relationship Between Parties.  Each party will be deemed to represent to the
other party on the date on which it enters into a
Transaction that (absent a written agreement between the parties that expressly
imposes affirmative obligations to the contrary for that Transaction):

 

(i)                                     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 is based upon its own
judgement 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 

 

8

 

considered 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 the Transaction.

 

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

 

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

 

Part 5.           Other Provisions.

 

(a)                                  No Agency. 
Each of Party A and Party B is entering into this Agreement and each
Transaction as principal (and not as agent or in any other capacity, fiduciary
or otherwise).

 

(b)                                 Assignment and Pledge
Under the Pledge and Administration Agreement. Party A acknowledges and consents to Party B’s grant
of all its right, title and interest in, to and under, in each case, whether
now owned or existing, or hereafter acquired or arising, this Agreement or any
Transaction hereunder (including, without limitation, its right to payments due
to it hereunder or with respect hereto), to the Collateral Agent pursuant to
and in accordance with the terms of the Pledge and Administration Agreement,
for the benefit of the persons identified therein.  Party B hereby irrevocably appoints the
Collateral Agent and FSA as its agents and attorneys-in-fact for enforcing its
rights hereunder upon the events and in the manner specified in the Pledge and
Administration Agreement, which appointment is coupled with an interest, and
Party B confirms that notice of such appointment has been effectively given to
the Collateral Agent and FSA.  Party A
agrees that, unless notified in writing by the Collateral Agent of other
payment instructions (or as otherwise provided in the Credit Support Annex with
respect to transfers of Eligible Collateral), any and all amounts payable by
Party A to Party B under this Agreement will be paid to the FSAM Cash Account,
at such account as the Collateral Agent specifies in writing to Party A.

 

Party A and Party B acknowledge and agree that FSA may directly enforce
the rights of Party B under this Agreement (A) at any time that it is the
Secured Party Representative or (B) in the circumstances specified in this
Agreement (including the Schedule, Confirmation and Credit Support Annex),
without prejudice to or limitation of any rights given to FSA as a third party
beneficiary under this Agreement.  Party
B hereby irrevocably designates FSA its agent and attorney-in-fact for purposes
of enforcing such rights, which designation is coupled with an interest.

 

(c)                                  Amendments. 
No amendment, modification, supplement or termination of any provision
of this Agreement or any of the Schedule, the Confirmation or the Credit
Support Annex shall in any event be effective unless the same shall be in
writing and signed by Party A, Party B and FSA. 
No waiver of any provision of this Agreement or consent to any departure
by Party A or Party B herefrom shall in any event be effective unless the same
shall be in writing and signed by (x) in the case of a waiver or consent
to be granted by Party A, Party A, and (y) in the case of a waiver or
consent to be granted by Party B, Party B and FSA.  Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which
given.  No notice to or demand on a party
in any case shall, of itself, entitle such party to any other or further notice
or demand in similar or other circumstances. 
Notwithstanding the foregoing, any amendment, 

 

9

 

modification, supplement, termination of any provision of this
Agreement or any of the Schedule, the Confirmation or the Credit Support Annex
entered into by Party A and Party B, or any waiver or consent to any departure
by Party A from any provision of this Agreement or any of the Schedule, the
Confirmation or the Credit Support Annex granted by Party B without the prior
written consent of FSA shall be void ab initio.

 

(d)                                 Third Party Beneficiaries. 
Nothing in this Agreement expressed or implied, shall give to any
person, other than the parties hereto and their successors hereunder and FSA
(which shall be an express third party beneficiary of this Agreement), any
benefit or any legal or equitable right, remedy or claim under this Agreement;
provided, however that the parties hereto acknowledge and agree that the
Sovereign Guarantors shall each be an express third party beneficiary of Part 4(i) with
the right to enforce any rights or remedies thereunder to the same extent as if
the Sovereign Guarantors were parties to this Agreement.

 

(e)                                  Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY ACKNOWLEDGES AND AGREES THAT IT
HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION.

 

(f)                                    Single Transaction. Each party acknowledges and agrees that
the Transaction evidenced by the Confirmation dated as of the date hereof will
be the only Transaction governed by this Agreement.

 

(g)                                 Non-Petition. 
DCL and Dexia each agrees that it will not, prior to the Senior Release
Date (as defined in the Pledge and Administration Agreement), acquiesce,
petition or otherwise institute against, or join any other person in
instituting against, Party B, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any federal
or state bankruptcy, or similar law, including without limitations proceedings
seeking to appoint a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of Party B or any substantial part of
its property; provided, that this provision shall not restrict or
prohibit Dexia or DCL from joining any such proceedings which shall have
already commenced under applicable laws and not in violation of this
provision.  This provision shall survive
the termination of this Agreement for any reason.

 

(h)                                 Limited Recourse.  The obligations of Party B in relation to this
Agreement and any Transaction hereunder are limited recourse obligations,
payable solely from the proceeds of the FSAM Collateral (as defined in the
Pledge and Administration Agreement) available under and applied in accordance
with the Priority of Payments set forth in the Pledge and Administration
Agreement.  Upon application of the FSAM
Collateral and proceeds thereof available to satisfy the obligations of Party B
hereunder in accordance with the Pledge and Administration Agreement, Dexia and
DCL shall not be entitled to take any further steps against Party B to recover
any sums due and shall not constitute a claim against Party B to the extent of
any insufficiency.  No recourse shall be
had for the payment of any amounts owing in respect of this Agreement against
any officer, director, employee, stockholder, member or incorporator of Party
B.  This provision shall survive the
termination of this Agreement for any reason.

 

(i)                                     Bankruptcy Code Acknowledgment.  Each of Party A and Party B agrees and
acknowledges that this Agreement is:

 

(A)                              intended to be a “securities contract,”
as such term is defined in Section 741(7) of the United States
Bankruptcy Code, with respect to which: (1) the contractual rights of
Party B hereunder to cause the liquidation, termination or acceleration of a
securities contract are intended to be among those protected under Section 555
of the United States Bankruptcy Code; (2) the 

 

10

 

termination, netting and
collateral liquidation provisions hereof are intended to be among those
excepted from the automatic stay under Section 362(b)(6) of the
United States Bankruptcy Code; and (3) each transfer, payment and delivery
hereunder or in connection herewith is intended to be a “margin payment”, as
defined in Section 741(5) of the United States Bankruptcy Code,
and/or a “settlement payment” as defined in Section 741(8) of the
United States Bankruptcy Code, under a securities contract, and is therefore,
under Section 546(e) of the United States Bankruptcy Code, not
avoidable; and

 

(B)                                intended to be a “swap agreement,” as
such term is defined in Section 101(53B) of the Bankruptcy Code, with
respect to which: (1) the contractual rights of Party B hereunder to cause
the liquidation, termination or acceleration of a securities contract are
intended to be among those protected under Section 560 of the United
States Bankruptcy Code; (2) the termination, netting and collateral
liquidation provisions hereof are intended to be among those excepted from the
automatic stay under Section 362(b)(17) of the United States Bankruptcy
Code; and (3) each transfer, payment and delivery hereunder or in
connection herewith is intended to be a transfer under or in connection with a
swap agreement and is therefore, under Section 546(g) of the United
States Bankruptcy Code, not avoidable.

 

(j)                                     NY Banking Law Acknowledgment.  Each of Party A and Party B agrees and
acknowledges that this Agreement is intended to be a “qualified financial
contract” as such term is defined in Section 618-a of the New York Banking
Law (NYBL).

 

(k)                                  French Monetary and Financial
Code Acknowledgment. 
Each of Party A and Party B agrees and acknowledges that (A) this Agreement constitutes a financial
agreement (contrat financier) as such term is
defined under article L. 211-1 and D. 211-1 A of the French Monetary and
Financial Code, (B) each transaction contemplated by this Agreement
constitutes a transaction on financial instruments (opération
sur instruments financiers) within the meaning of article L.211-36
and L.211-1 of the French Monetary and Financial Code, (C) each of Party A
and Party B is an entity falling within the scope of article 211-36 1° of the
French Monetary and Financial Code.

 

(l)                                     Belgian Code Acknowledgment. 
Each of Party A and Party B agrees and acknowledges that the Collateral Support Annex and any
pledge agreement entered into with respect to the MPAA Account (as defined in
the Credit Support Annex) are financial collateral arrangements (zakelijke zekerheidsovereenkomsten/conventions
constitutives de sûreté réelle) and this Agreement and any
Transactions hereunder constitute a “netting agreement” (nettingovereenkomst/convention
de netting) as such terms are defined in Article 3 of the
Belgian Act of 15 December 2004 on financial collateral arrangements and
several tax dispositions in relation to security collateral arrangements and
loans of financial instruments.

 

(m)                               No Gross Up by Party B.

 

(i)                                     Section 2(d)(i)(4) is hereby
deleted and replaced by the following:

 

“(4)                            (A)                              If Party A is the party so required to deduct or
withhold, then Party A shall make such additional payment as is necessary
to ensure that the net amount actually received by Party B (free and clear
of all Taxes, whether assessed against it or Party B) will equal the full
amount Party B would have received had no such deduction or withholding
been required; and

 

(B)                                if Party B is the party so required
to deduct or withhold, then Party B shall make the relevant payment
subject to such deduction or withholding and Party B will not be required
to gross up.

 

11

 

For the avoidance of
doubt, the fact that any payment is made by Party B subject to the
provisions of (B) above shall at no time affect the obligations of
Party A under (A) above.”

 

(ii)                                  Indemnifiable Tax.  Notwithstanding the definition of “Indemnifiable Tax”
in Section 14 of this Agreement, all Taxes in relation to payments by
Party A shall be Indemnifiable Taxes and in relation to payments by
Party B, no Tax shall be an Indemnifiable Tax.

 

(n)                                 Payments by DCL.  Any cash payments (“Pre-Collateral Posting Payments”) required
to be made by Party A under this Agreement on or prior to the date on which (i) the
Collateral Replacement Date has occurred and (ii) Eligible Collateral
having a Value equal to the Delivery Amount determined on the Collateral
Replacement Date shall have been Transferred under the Credit Support Annex,
shall be considered paid for purposes of this Agreement (including without
limitation Section 5(a)(i)) only if payment is made to Party B by DCL (and
not by Dexia), provided that (A) payments by the Sovereign Guarantors
under the Sovereign Guarantee shall always be considered to have been paid for
purposes of this Agreement (including without limitation Section 5(a)(i))
notwithstanding that they are made in respect of a guarantee of the obligations
of Dexia and (B) this provision shall not prejudice (i) any rights of
Party B to enforce Dexia’s obligation to make payment of Pre-Collateral Posting
Payments at Party B’s election, (ii) any rights of Party B against Dexia
or DCL arising from nonpayment of Pre-Collateral Posting Payments by DCL or (iii) any
rights and remedies as between Dexia and DCL in relation to their joint and
several obligations under this Agreement.

 

(o)                                 FSAM  Lien
Release Date.  If an FSAM Lien
Release Date has occurred as defined in the Pledge and Administration
Agreement, then pursuant to Section 2.5(d) of the Pledge and
Administration Agreement and notwithstanding the rights of FSA as third party
beneficiary hereunder or the other provisions of this Agreement or the
Confirmation relating to rights of the Collateral Agent and FSA, this Agreement
and the Confirmation may be amended by Party A and Party B, with the consent of
the Sovereign Guarantors, to disapply provisions relating to the rights of the
Collateral Agent and FSA for purposes of transactions occurring or rights
accruing under this Agreement after the FSAM Lien Release Date.

 

(p)                                 Sovereign Guarantee
Termination.  Party A and FSAM agree for the benefit of FSA
that Party A and FSAM shall not enter into any agreement with the Sovereign
Guarantors for an optional termination of the Sovereign Guarantee unless the
Collateral Agent has confirmed that the FSAM Lien Release Date has occurred.

 

12

 

The parties executing the
Schedule have executed the Master Agreement and have agreed as to the contents
of this Schedule.

 

Yours faithfully,

 

 

	
  FSA ASSET MANAGEMENT LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEXIA
  SA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  DEXIA
  CREDIT LOCAL S.A.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Guaranteed Put ScheduleExhibit 10.3.3

 

EXECUTION VERSION

 

PUT OPTION CONFIRMATION

Guaranteed Put Contract

 

	
  DATE:

  	
  June 30, 2009

  
	
   

  	
   

  
	
  TO:

  	
  FSA Asset Management LLC

  
	
   

  	
   

  
	
  FROM:

  	
  Dexia SA  

  
	
   

  	
  Dexia Crédit Local S.A.

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Put Option Transaction

  

 

The
purpose of this communication is to set forth the terms and conditions of the
above referenced transaction entered into on the Trade Date specified below
(the “Put Option Transaction”)
between Dexia SA (“Dexia”) and  Dexia Crédit Local S.A., acting through
its New York Branch (“DCL”), jointly
and severally (“Party A”) and FSA
Asset Management LLC (“Party B”).  This communication constitutes a “Confirmation”
as referred to in the Agreement specified below.

 

This Confirmation supplements, forms a part
of and is subject to the ISDA Master Agreement dated as of June 30, 2009  (including the Schedule and Credit Support
Annex thereto (each captioned “Guaranteed Put
Contract”) as amended and supplemented from time to time (the “Agreement”) between Party A and Party
B.  Capitalized terms used and not
defined herein have the meanings set forth in the Agreement.  All provisions contained in, or incorporated
by reference to, the Agreement shall govern this Confirmation except as
expressly modified below.

 

This Confirmation is subject to, and
incorporates the 2000 ISDA Definitions (the “2000
Definitions”), as published by the International Swaps and
Derivatives Association, Inc. 
Notwithstanding the foregoing, Articles 11 and 12 of the 2000
Definitions shall not apply.  In the
event of any inconsistency between this Confirmation, the 2000 Definitions, or
the Agreement, as the case may be, this Confirmation will control for purposes
of this Put Option Transaction.

 

	
  1.

  	
  General Terms:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trade
  Date:

  	
  June 30, 2009

  
	
   

  	
   

  	
   

  
	
   

  	
  Effective
  Date:

  	
  June 30, 2009

  

 

1

 

	
   

  	
  Scheduled
  Termination Date:

  	
  The last to occur of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the expiration of any applicable preference period
  following the last Effective Maturity Date;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the
  expiration of any applicable preference period following the last Shortfall
  Payment Date;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)
  

  	
  the expiration of any applicable preference period
  following the last Put Settlement Date; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  the expiration of any applicable preference period
  following the date on which no Put Portfolio Assets remain in the Put
  Portfolio Annex.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  The “Term” of this
  Transaction shall begin on and include the Effective Date and end on and
  include the Scheduled Termination Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Calculation
  Agent:

  	
  The Calculation Agent will
  be HF Services LLC, provided that if HF Services LLC is no longer acting as
  Administrator, Party A, Party B and FSA shall agree in good faith on a
  successor Calculation Agent, and pending such agreement the Reporting Agent
  shall act as successor Calculation Agent.

  
	
   

  	
   

  	
   

  
	
   

  	
  Calculation
  Agent City:

  	
  New York

  
	
   

  	
   

  	
   

  
	
   

  	
  Business
  Day:

  	
  Brussels, New York and
  Paris.

  
	
   

  	
   

  	
   

  
	
   

  	
  Business
  Day Convention:

  	
  Following (which, with the exception of the Effective Date,
  any Final Amortization Date, each Put Portfolio Asset Payment Date and the
  period end date of each Put Portfolio Asset Calculation Period, shall apply
  to any date referred to in this Confirmation that falls on a day that is not
  a Business Day).

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Portfolio Assets:

  	
  The
  assets identified in Annex 1 hereto (the “Put
  Portfolio Annex”), each of which was included in the total balance
  sheet assets of Party B as at September 30, 2008 (each a “Put Portfolio Asset” and the portfolio of
  assets so designated the “September 30
  Put Portfolio”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Put Portfolio Annex shall identify the following information in relation to
  the September 30 Put Portfolio and each Put Portfolio Asset:  Issuer; CUSIP/ISIN; FSAM ID Number;
  Insurer; Put Portfolio Asset; Applicable Percentage; Legal Final Maturity
  Date; Initial Face Amount; Original Principal Amount; Initial Factor;
  Underlying Policy.

  

 

2

 

	
   

  	
   

  	
  Each of (a) any Put Portfolio Asset in relation to which a Put
  Settlement Date has occurred, (b) any Put Portfolio Asset sold by Party
  B from time to time (other than under repurchase agreements as described in (ii) under
  “Representation as to Exposure” below) and (c) any Put Portfolio Asset
  in relation to which a Call Settlement Date has occurred, will cease to
  constitute a Put Portfolio Asset hereunder upon receipt of payment by or on
  behalf of Party B in respect of such Put Portfolio Asset and (in the case of (a) and
  (c)) delivery of such Put Portfolio Asset pursuant to this Transaction, and
  will be deemed excluded from the Put Portfolio Annex and cease to be eligible
  for further delivery by Party B under the Put Option or Call Option
  documented hereby, to the extent of the portion of the Outstanding Principal
  Amount of the Put Portfolio Asset subject to such Put Settlement Date or sale
  or Call Settlement Date, effective as of such Put Settlement Date, date of
  such sale or such Call Settlement Date, as applicable.

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Put Premium Payments:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Premium Payer:

  	
  Party B

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Premium Rate:

  	
  .25% per annum.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Premium Period End Date:

  	
  Each June 30, September 30,
  December 31 or March 31.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Premium Calculation
  Periods:

  	
  Each period from (and
  including) a Put Premium Period End Date (or in the case of the first Put
  Premium Calculation Period, the Effective Date) to (but excluding) the next
  Put Premium Period End Date (or in the case of the last Put Premium
  Calculation Period, the Scheduled Termination Date).

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Premium Payment Dates:

  	
  The third Business Day
  after each Put Premium Period End Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On each Put Premium Payment
  Date, Party B shall pay to Party A the Put Premium Amount determined for the
  Put Premium Calculation Period ending on the Put Premium Period End Date
  immediately preceding such Put Premium Payment Date, subject to funds being
  available for such distribution under the Priority of Payments.

  

 

3

 

	
   

  	
  Put Premium Amount:

  	
  With
  respect to any Put Premium Payment Date, an amount equal to the product of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the Put Premium Rate;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  an amount determined by the Calculation Agent equal
  to:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  the aggregate Outstanding Principal Amount of the
  Put Portfolio Assets as at 5:00 p.m. in the Calculation Agent City on
  each day in the applicable Put Premium Calculation Period; divided by

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  the actual number of days in the applicable Put
  Premium Calculation Period; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  the actual number of days in the applicable Put
  Premium Calculation Period divided by 360.

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Put Triggers and Put Settlement

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Option:

  	
  Party A hereby grant Party
  B a put option in relation to each Put Portfolio Asset exercisable in
  accordance with the terms hereof upon the occurrence of a relevant Put
  Trigger at any time during the Term of this Put Option Transaction (the “Put Option”).

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Triggers:

  	
  Party B (or FSA directly
  as third party beneficiary as provided in “Secured Party Exercise”) will have
  the right to cause exercise of the Put Option upon occurrence of any of the
  following events (each a “Put Trigger”)
  on any date during the Term of this Transaction:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a) if an Asset
  Default has occurred with respect to any Put Portfolio Asset (an “Asset Default Trigger”);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b) if, prior to the
  Liquidity and Collateral Trigger Expiration Date, a Liquidity Default has
  occurred and is continuing: provided, that in respect of the Liquidity and
  Collateral Trigger Expiration Date if the occurrence of a Liquidity Default
  would otherwise be subject to the expiration of a grace period, such grace
  period shall be deemed to have expired on the Business Day immediately
  preceding the Liquidity and Collateral Trigger Expiration Date (a “Liquidity Default Trigger”);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (c) if, prior to the
  Liquidity and Collateral Trigger Expiration Date, a Collateral Posting

  

 

4

 

	
   

  	
   

  	
   

  	
  Default has occurred and
  is continuing: provided, that in respect of the Liquidity and Collateral
  Trigger Expiration Date if the occurrence of a Collateral Posting Default
  would otherwise be subject to the expiration of a grace period, such grace
  period shall be deemed to have expired on the Business Day immediately
  preceding the Liquidity and Collateral Trigger Expiration Date (a “Collateral Default Trigger”); or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (d) if a Dexia
  Bankruptcy has occurred and is continuing (a “Bankruptcy Trigger”);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (the date of any exercise
  of the Put Option a “Put Exercise Date”).  The Put Option may be exercised separately
  from time to time in relation to one or more separately occurring Put
  Triggers.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put
  Exercise Amounts:

  	
  The Put Option may be
  exercised by Party B (or by FSA directly as third party beneficiary as
  provided in “Secured Party Exercise”):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)           if the Put Option is exercised in relation to any Asset
  Default Trigger, with respect to the Outstanding Principal Amount of the
  Defaulted Asset;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)           if the Put Option is exercised in relation to any
  Liquidity Default Trigger, with respect to an aggregate Outstanding Principal
  Amount of Put Portfolio Assets selected by the Collateral Agent or by FSA
  directly as third party beneficiary as provided in “Secured Party Exercise”,
  equal to the lesser of (1) the relevant Defaulted Liquidity Amount or (2) the
  GIC Balance (less any Committed Settlement Amount), provided that in making
  such selection the Collateral Agent or FSA as third party beneficiary, as
  applicable, shall comply with the Maximum Asset Value Restriction;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (c)           if the Put Option is exercised in relation to any
  Collateral Default Trigger, with respect to an aggregate Outstanding
  Principal Amount of Put Portfolio Assets selected by the Collateral Agent or
  by FSA directly as third party beneficiary as provided in “Secured Party
  Exercise”, equal to the lesser of (1) (x)  the relevant Defaulted
  Collateral Amount plus (y) the net Delivery Amount that would arise
  under the Credit Support Annex as a result of Delivery of the Put Settlement Assets
  on the Put Settlement

  

 

5

 

	
   

  	
   

  	
   

  	
  Date and (2) the GIC
  Balance (less any Committed Settlement Amount), provided that in making such
  selection the Collateral Agent or FSA as third party beneficiary, as
  applicable, shall comply with the Maximum Asset Value Restriction; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (d)           if the Put Option is exercised in relation to a
  Bankruptcy Trigger, with respect to an Outstanding Principal Amount of Put
  Portfolio Assets selected by the Collateral Agent or FSA directly as third
  party beneficiary as provided in “Secured Party Exercise”, equal to the
  lesser of (1) 100% of the aggregate Outstanding Principal Amount of all
  the Put Portfolio Assets or (2) the GIC Balance (less any Committed
  Settlement Amount).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (the relevant Outstanding
  Principal Amount of Put Portfolio Assets with respect to which the Put Option
  has been exercised as described above on any date, subject to “Affected
  Collateral Delivery” below, the “Put
  Settlement Assets”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Maximum Asset Value Restriction” means
  that the Collateral Agent or by FSA directly as third party beneficiary as
  provided in “Secured Party Exercise” shall select assets (which may or may
  not be Defaulted Assets) for which the weighted average of the most recently
  determined FSAM Asset Value is not more than 5% higher than the weighted
  average FSAM Asset Value of all remaining Put Portfolio Assets as a whole
  (provided that if it would not be possible to deliver Put Portfolio Assets of
  such maximum average value due to minimum denomination restrictions, the
  Collateral Agent, or FSA directly as third party beneficiary as provided in
  “Secured Party Exercise,” shall only be required to select assets that comply
  with such limitation to the extent reasonably practicable).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Committed Settlement Amount” means, in
  relation to any Collateral Default Trigger, Liquidity Default Trigger or
  Bankruptcy Trigger, the Outstanding Principal Amount of all Put Portfolio
  Assets which have been identified for purposes of a different Collateral
  Default Trigger, Liquidity Default Trigger or Bankruptcy Trigger for which
  the relevant Put Settlement Date has not yet occurred.

  
	
   

  	
   

  	
   

  
	
   

  	
  Exercise
  Notice:

  	
  In relation to any
  exercise of the Put Option, Party B (or FSA directly as third party
  beneficiary as provided in “Secured Party Exercise”) will be required to
  provide to Party A and FSA at the notice addresses

  

 

6

 

	
   

  	
   

  	
  specified below, an
  exercise notice in the form of Annex 2 (the “Exercise Notice”) (which shall be delivered by email or
  facsimile, return receipt requested) which shall also include (i) in the
  case of an exercise of the Put Option in relation to an Asset Default
  Trigger, a servicer or trustee report, advice from a paying agent, record of
  a clearance system, statement by a rating agency, or similar information
  documenting the relevant Interest Shortfall Amount, Principal Shortfall
  Amount or Writedown Amount (any a “Shortfall
  Amount”), (ii) in the case of an exercise of the Put Option
  in relation to an Liquidity Default Trigger, a calculation of the relevant
  Defaulted Liquidity Amount including evidence of the relevant notice or
  request for payment and confirmation by the Collateral Agent of nonreceipt of
  funds, and of the GIC Balance (iii) in the case of an exercise of the
  Put Option in relation to a Collateral Default Trigger, a calculation of the
  relevant Defaulted Collateral Amount including evidence of the relevant
  demand for Transfer of a Delivery Amount and confirmation by the Collateral
  Agent of nonreceipt of such Delivery Amount, and of the GIC Balance or (iv) in
  the case of an exercise of the Put Option in relation to a Bankruptcy
  Trigger, a calculation of the aggregate current Outstanding Principal Amount
  plus accrued interest of the Put Portfolio Assets and of the GIC Balance
  (each of (i), (ii), (iii) or (iv) in relation to any exercise of
  the Put Option the “Shortfall Information”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Simultaneously with the
  delivery of the Put Exercise Notice to Party A and FSA, Party B or the
  Collateral Agent (including FSA acting on behalf of the Collateral Agent)
  will deliver a copy of such Put Exercise Notice to the Sovereign Guarantors,
  together with the relevant Shortfall Information.  

  
	
   

  	
   

  	
   

  
	
   

  	
  Secured
  Party Exercise:

  	
  Party A acknowledges and
  agrees that, without limitation of the rights of Party B hereunder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           an Exercise Notice may be delivered by the Collateral
  Agent or by FSA directly as third party beneficiary under this Agreement (i) in
  relation to any Asset Default Trigger following a failure of Party B to
  deliver an Exercise Notice within five Business Days after the occurrence of
  the relevant Asset Default or (ii) in relation to any Liquidity Default
  Trigger, any Collateral Default Trigger or any Bankruptcy Trigger;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           the Collateral Agent or FSA directly as third party
  beneficiary under this Agreement may specify the related Put Exercise Amounts
  and select Put Portfolio Assets in relation to any Liquidity Default 

  

 

7

 

	
   

  	
   

  	
  Trigger, any Collateral
  Default Trigger or any Bankruptcy Trigger and deliver any Shortfall
  Information (whether or not it delivered the related Exercise Notice); and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)           FSA directly as third party beneficiary under this
  Agreement may make demands and request and dispute valuations as set forth in
  the Credit Support Annex.

  
	
   

  	
   

  	
   

  
	
   

  	
  Defaulted Asset:

  	
  A
  Put Portfolio Asset in relation to which an Asset Default has occurred.

  
	
   

  	
   

  	
   

  
	
   

  	
  Asset Default:

  	
  The
  occurrence of a Failure to Pay Principal, Interest Shortfall or Writedown.

  
	
   

  	
   

  	
   

  
	
   

  	
  Liquidity Default:

  	
  A
  payment default by Dexia or any of its Affiliates under any Guaranteed
  Liquidity Facility, including without limitation a failure to pay an
  Accelerated Downgrade Liquidity Draw by the Accelerated Downgrade Liquidity
  Draw Deadline on the relevant date (a “Deemed
  Downgrade Liquidity Default”). 
  The amount of any and all such failures to pay (i.e., the unpaid amount) on any date (net
  of any partial payments by Dexia or its Affiliates) is the “Defaulted Liquidity Amount”.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To
  the extent that the occurrence of a default under any Guaranteed Liquidity
  Facility is subject to the expiration of a grace period for payment, such
  grace period shall be deemed to have expired on the earlier of (i) its
  stated expiration date or (ii) the Business Day immediately preceding
  the Liquidity and Collateral Trigger Expiration Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Guaranteed Liquidity
  Facilities” means each of (i) the Liquidity Facility and the
  Repurchase Agreement Facility, in accordance with their terms as of the
  Effective Date (the “Existing Facilities”)
  and (ii) any additional liquidity facilities between Party B and either
  DCL or Dexia Bank Belgium SA (including any successors thereto by reason of
  Corporate Reorganization or any Affiliates thereof to whom their obligations
  are transferred in accordance with the terms of such Existing Facilities)
  entered into from time to time after the Effective Date, that are in substantially
  the same form as the Existing Facilities and are entered into for the purpose
  of providing liquidity to meet Party B’s payment obligations (including
  obligations to meet collateral posting requirements under the GICs) under the
  Master Repurchase Agreement to the GIC Issuers to service the GICs, if the
  aggregate maximum commitment amount of such facilities, when added to the
  maximum commitment amount of the Existing

  

 

8

 

	
   

  	
   

  	
  Facilities,
  does not exceed the GIC Balance on the date any such additional facilities
  are entered into.

  
	
   

  	
   

  	
   

  
	
   

  	
  Collateral Posting  Default:

  	
  A
  failure to Transfer Eligible Collateral having a Value equal to a required
  Delivery Amount on any date on or after the First Collateral Posting Date, in
  each case within the time required under Paragraph 4(b) of the Credit
  Support Annex.  The amount of any such
  failure to Transfer on any date (net of any partial amounts Transferred by
  Dexia or its Affiliates) is the “Defaulted
  Collateral Amount”.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  the avoidance of doubt, the Defaulted Collateral Amount applicable in
  relation to any Collateral Posting Default hereunder shall not be offset or
  decreased by any Defaulted Collateral Amount applicable under the Dexia
  Non-Guaranteed Put Contract.

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

9

 

	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  Affected Collateral Delivery:

  	
  In
  relation to any Put Settlement Date arising from a Collateral Default Trigger
  occurring during a No DCL Collateral Period or No Dexia Collateral Period,
  the Put Settlement Assets shall include, in addition to the Put Settlement
  Assets selected by the Collateral Agent or FSA as third party beneficiary, as
  applicable, under (c) of “Put Exercise Amount” above, the relevant
  Affected DCL Collateral or Affected Dexia Collateral as of the date of
  occurrence of the relevant Collateral Default Trigger.

  
	
   

  	
   

  	
   

  
	
   

  	
  Dexia Bankruptcy:

  	
  As
  defined in the Schedule.  The exercise
  of the Put Option following a Bankruptcy Trigger is not to be construed as
  the designation of an Early Termination Date, nor does exercise of the Put
  Option following a Bankruptcy Trigger prejudice to the right of Party B to
  designate an Early Termination Date subsequent to the Put Settlement Date for
  such Bankruptcy Trigger in the event that any Event of Default has occurred
  or is continuing after such Put Settlement Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Liquidity and Collateral

  Trigger Expiration Date:

  	
  31
  October 2011.

  
	
   

  	
   

  	
   

  
	
   

  	
  First Collateral Posting Date:

  	
  29
  September 2011.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Settlement:

  	
  On
  (x) the second Business Day after the relevant Put Exercise Date or (y) in
  the case of an Accelerated Downgrade Liquidity Default Exercise, on the first
  Business Day after the Put Exercise Date (as applicable, the “Put Settlement Date”) and subject to
  “Deferred Settlement Election” below, Party B or the Collateral Agent on
  behalf of Party B will Deliver to DCL or Dexia, as applicable, the relevant
  Put Settlement Assets, against payment of the Put Settlement Amount to Party
  B by Party A (such payment to occur by the time specified in the last
  paragraph under “Put Settlement Amount”). 
  In the event that the Defaulted Liquidity Amount on the Put 

  

 

10

 

	
   

  	
   

  	
  Exercise
  Date includes both amounts arising from an Accelerated Downgrade Liquidity
  Draw and other unpaid amounts under one or more Guaranteed Liquidity
  Facilities, separate Put Settlement Dates shall occur in relation to each
  relevant portion of the Put Exercise Amount.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Accelerated Downgrade Liquidity Default Exercise”
  means an exercise of the Put Option as a result of a Liquidity Default
  Trigger which occurs due to a Deemed Downgrade Liquidity Default.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delivery
  of Put Settlement Assets will be effected through an escrow, custody or
  similar arrangement with the Collateral Agent, such that the Put Settlement
  Assets will be Delivered by the Collateral Agent and the Put Settlement Amount
  will be paid to Party B, but the Put Settlement Assets will be Delivered (i) to
  Dexia if the Put Settlement Amount is paid to Party B by Dexia, (ii) to
  DCL if the Put Settlement Amount is paid to Party B by DCL or (iii) to
  Dexia if the Put Settlement Amount is paid to Party B by the Sovereign
  Guarantors.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Deliver” means to deliver, novate,
  transfer, assign or sell, as appropriate, in the manner customary for the
  settlement of the applicable Put Settlement Assets (which shall include
  executing all necessary documentation and taking any other necessary
  actions), in order to convey all right, title and interest in the Put
  Settlement Assets to Dexia or DCL, as applicable, free and clear of any and
  all liens, charges, claims or encumbrances; provided that, Dexia and DCL each
  hereby waive any right to object to the Delivery of a Put Settlement Asset (i) as
  failing to be free and clear of liens, charges, claims or encumbrances or (ii) for
  breach of any implied or express representation or warranty hereunder, except
  in the case of a lien, charge, claim or encumbrance that is predominantly
  attributable to actions of FSA taken after the Effective Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Without
  limitation of the foregoing, in relation to Put Settlement Assets which may
  be subject to a pledge or lien, Party A agrees that the settlement of the
  payment of the Put Settlement Amount by Party A and Delivery of the Put
  Settlement Assets by Party B may be effected by means of an undertaking by
  the Collateral Agent, acting as an escrow agent, custodian or in a similar
  capacity, to deliver such Put Settlement Assets to Party A following receipt
  of a payment hereunder (whether by treating such payment as a discharge of
  the relevant pledge or lien, as a substitution of cash collateral in place of
  such Put Settlement Assets for purposes of the relevant pledge 

  

 

11

 

	
   

  	
   

  	
  agreement,
  or otherwise).

  
	
   

  	
   

  	
   

  
	
   

  	
  Delayed Delivery Following

  DCL Belgian Corporate Reorganization:

  	
  In
  the event that a Put Settlement Date occurs (i) on or after a DCL
  Belgian Corporate Reorganization has occurred and (ii) on a date on
  which the relevant Put Settlement Amount would constitute a Pre-Collateral
  Posting Payment, and except in the case of a Put Settlement under which the
  Put Settlement Amount is paid to Party B by the Sovereign Guarantors, (A) Party
  A will be required to pay the Put Settlement Amount on the Put Settlement
  Date, (B) Party B will not be required to Deliver the related Put
  Settlement Assets until the date following the Put Settlement Date on which
  the Belgian Preference Period has expired and (C) pending such Delivery
  on the date referred to in (B), Party A will be deemed to have pledged the
  relevant Put Settlement Assets to Party B and Party B shall hold such Put Settlement
  Assets as additional Posted Collateral under the Credit Support Annex and
  treated as Repledged Assets thereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “DCL Belgian Corporate Reorganization”
  means any occurrence of a Corporate Reorganization (as defined in the
  Schedule) with respect to DCL such that Belgium is the jurisdiction of
  organization of DCL following such Corporate Reorganization.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Belgian Preference Period” means 6
  months, or if the period of time specified in Article 12 of the Belgian
  Bankruptcy Act of 8 August 1997 is amended, such amended period of time.

  
	
   

  	
   

  	
   

  
	
   

  	
  DCL Delivery:

  	
  DCL
  agrees that any Put Settlement Assets delivered to DCL hereunder which may be
  required to be delivered outside the United States or to non-United States
  persons, or with respect to which for any other reason delivery of such Put
  Settlement Asset in New York is impracticable, may at Party B’s election be
  delivered to a registered office of Dexia Crédit Local S.A. outside of the United
  States.

  
	
   

  	
   

  	
   

  
	
   

  	
  Put Settlement Amount:

  	
  An
  amount equal to 100% of the Outstanding Principal Amount of the Put
  Settlement Assets Delivered on the Put Settlement Date (other than any
  Affected DCL Collateral or Affected Dexia Collateral), plus (without
  duplication) (i) any Interest Shortfall Amount, Principal Shortfall
  Amount or Writedown Amount accrued but not yet paid hereunder as of the Put
  Settlement Date and (ii) accrued and unpaid interest (except to the
  extent already paid to Party B pursuant to a Deferred Settlement Election or
  under (i)) through the Put Settlement Date (in each case converted if
  applicable to USD at the Specified Currency Rate).

  

 

12

 

	
   

  	
   

  	
  The
  Put Settlement Asset Delivered on each Put Settlement Date will include the
  right to receive all accrued and unpaid interest in respect of the
  Outstanding Principal Amount of the Put Settlement Assets Delivered.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  obligation to pay any Put Settlement Amount pursuant to an Exercise Notice
  delivered prior to the occurrence of the Scheduled Termination Date shall
  survive the occurrence of the Scheduled Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  the case of an Accelerated Downgrade Liquidity Default Exercise, Party A will
  pay the Put Settlement Amount to Party B not later than 9:00 am New York City
  time on the Put Settlement Date.  In
  all other cases, Party A will pay the Put Settlement Amount to Party B not
  later than 4:00 pm Central European Time on the Put Settlement Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Cure of Defaulted Liquidity Amount or Defaulted

  Collateral Amount:

  	
  Notwithstanding
  exercise of the Put Option in relation to a Liquidity Default Trigger or
  Collateral Default Trigger, if the related Defaulted Liquidity Amount or
  Defaulted Collateral Amount has been cured in full on or prior to the
  relevant Put Settlement Date, the Put Settlement Date shall not occur and the
  Exercise Notice in relation thereto shall be deemed withdrawn.

  
	
   

  	
   

  	
   

  
	
   

  	
  Deferred Settlement Right:

  	
  In
  relation to any Put Exercise Date arising from an Asset Default Trigger,
  Party A may give a notice to Party B (with a copy to FSA), on or before the
  Put Settlement Date, electing to defer the Put Settlement Date (a “Deferred Settlement Election”) for any
  period of time prior to the earliest of (i) the Final Amortization Date
  of the Defaulted Asset, (ii) the Legal Final Maturity Date of the
  Defaulted Asset and (iii) the 30th day prior to the Sovereign Asset Guarantee
  Expiration Date, provided that during such period Party A shall periodically
  pay to Party B any Shortfall Amounts with respect to such Defaulted Asset on
  or before:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (I) in the case of
  the Put Portfolio Asset Payment Date occurring on or immediately preceding
  the Asset Default Trigger, the third Business Day following the Put Exercise
  Date, and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (II) in the case of
  each Put Portfolio Asset Payment Date occurring after the Put Portfolio Asset
  Payment Date in (I), (A) if a Dexia Event of Default has occurred and
  FSA is acting as the Secured Party Representative, the third Business Day
  after the later of (i) the date such amounts are determined under the
  provisions of the Underlying Instruments and holders of the

  

 

13

 

	
   

  	
   

  	
   

  	
  Defaulted Asset have been
  notified of such determination or (ii) the date of receipt of the
  relevant Shortfall Information by Party A or (B) otherwise, the third
  Business Day after the earlier of (i) the date such amounts are
  determined under the provisions of the Underlying Instruments and holders of
  the Defaulted Asset have been notified of such determination or (ii) the
  date of receipt of the relevant Shortfall Information by Party A (each a “Shortfall Payment Date”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On any date after Dexia,
  DCL or the Sovereign Guarantors have made a payment of Shortfall Amounts
  pursuant to a Deferred Settlement Election, such Deferred Settlement Election
  shall continue in effect and need not be renewed or repeated in relation to
  subsequent Asset Default Triggers for the same Put Portfolio Asset, provided
  that (a) Party A or the Sovereign Guarantors, as applicable, may cause
  the Put Settlement Date to occur with respect to the related Defaulted Asset
  upon two Business Days’ prior notice to Party B, the Collateral Agent
  and FSA, and (b) the Put Settlement Date shall occur immediately with
  respect to the related Defaulted Asset if (i) Dexia does not pay a Shortfall
  Amount (and DCL also does not pay such amount), (ii) the Sovereign
  Guarantors fail to pay such Shortfall Amount under the Sovereign Guarantee
  within the time permitted thereby (a “Sovereign
  Nonpayment”) and (iii) neither Dexia nor the Sovereign Guarantors
  cures such failure within 10 Business Days after receipt of a notice from
  Party B, on or after the date of Sovereign Nonpayment, requiring that the Put
  Settlement Date be accelerated.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For the avoidance of
  doubt, no Deferred Settlement Election may be made with respect to any
  Defaulted Assets selected in connection with any Put Option related to a
  Liquidity Default Trigger, a Collateral Default Trigger or a Bankruptcy
  Trigger.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The obligation to pay any
  Shortfall Amounts and Put Settlement Amount pursuant to a Deferred Settlement
  Election exercised prior to the occurrence of the Scheduled Termination Date
  shall survive the occurrence of the Scheduled Termination Date.

  
	
   

  	
   

  	
   

  
	
   

  	
  Offset of Collateral:

  	
  On any Put Settlement Date
  on or after a date on which a Dexia Event of Default has occurred where (x) the
  Subordinated Claims Payment Condition is not met, (y) Party B and the
  Collateral Agent are entitled to exercise the remedies under Paragraph 8 of
  the Credit Support Annex and (z) Party A would be entitled to receive a
  Return Amount under the Credit Support Annex, based on the current
  calculation of

  

 

14

 

	
   

  	
   

  	
  Exposure and the Value of
  Posted Credit Support held by Party B, but for the fact that the Subordinated
  Claims Payment Condition is not met (the Return Amount to which Party A would
  be so entitled a “Deemed Return Amount),
  (i) the Put Settlement Amount in relation to any Liquidity Default
  Trigger or Collateral Default Trigger shall be reduced by such Deemed Return
  Amount or (ii) without duplication of (i), the Shortfall Amount in
  relation to any Asset Default Trigger shall be reduced by such Deemed Return
  Amount (but in no event to less than zero).

  
	
   

  	
   

  	
   

  
	
   

  	
  Claims under the Sovereign Guarantee:

  	
  If a Put Settlement Date
  arises from an Asset Default Trigger, irrespective of whether Party A (i) has
  not made a Deferred Settlement Election, (ii) has made a Deferred
  Settlement Election, or (iii) has given notice causing the Put
  Settlement Date to occur, in the event that (A) Party A does not pay the
  relevant Shortfall Amounts on any date thereafter, (B) Party A does not
  pay the Put Settlement Amount on the Put Settlement Date and (C) Party B
  or the Collateral Agent, or FSA directly as third party beneficiary gives
  notice of such nonpayment to the Sovereign Guarantors, together with the
  relevant Shortfall Information, then at the option of the Sovereign
  Guarantors either (i) a Deferred Settlement Election shall be deemed to
  have been made and continued in effect, such that the Sovereign Guarantors
  shall, until the earlier of (x) the Final Amortization Date or (y) the
  Legal Final Maturity Date of the Defaulted Asset, pay only the relevant
  Shortfall Amounts under the Sovereign Guarantee (and not Put Settlement Amounts)
  or (ii) the Sovereign Guarantors shall pay the portion of the Put
  Settlement Amount not paid by Party A against the delivery of the Put
  Settlement Assets to Dexia, in each case within the time period for payment
  required under the Sovereign Guarantee. 
  Unless both Sovereign Guarantors shall opt for the application of
  sub-clause (ii) above, sub-clause (i) shall be deemed to apply;
  provided that no Deferred Settlement Election may be made or deemed made
  under sub-clause (i) if the related Put Settlement Date arose following
  a prior Deferred Settlement Election made or deemed made by the Sovereign
  Guarantors in relation to the related Defaulted Asset.

  
	
   

  	
   

  	
   

  
	
   

  	
  Currency Conversion:

  	
  In relation to any Put
  Settlement Asset not denominated in USD, the Put Settlement Amount and any
  Shortfall Amount shall still be denominated in USD, such amount to be
  determined by conversion of the Outstanding Principal Amount plus accrued
  interest, or Shortfall Amount, as applicable, at the Specified Currency Rate.

  

 

15

 

	
  4.

  	
  Call Right

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Call Option:

  	
  Party B hereby grants to
  Party A, a call option in relation to each Put Portfolio Asset exercisable in
  accordance with the terms hereof on any Business Day (the “Call Option”).  The Call Option may be exercised (i) by
  Party A only if there shall not have occurred any Dexia Event of Default and
  if such exercise would not cause Party B to violate § 6.5.1 or
  § 6.5.2. of the Sovereign Guarantee Reimbursement Agreement and (ii) prior
  to the Liquidity and Collateral Expiration Date, only by DCL.  In any event, no purported exercise of the
  Call Option shall be valid unless Party A shall deliver to Party B
  information from the Valuation Agent demonstrating that Party A has
  Transferred Eligible Collateral to the Custodian in an amount sufficient that
  no Delivery Amount would result or be outstanding after the exercise and
  settlement of the Call Option.

  
	
   

  	
   

  	
   

  
	
   

  	
  Exercise Notice:

  	
  In relation to any
  exercise of the Call Option, Party A will be required to provide to Party B,
  an exercise notice in the form of Annex 3 (the “Call Notice”).  The Call Notice shall specify the Put
  Portfolio Assets proposed to be purchased by Party A (the “Call Settlement Assets”).  Delivery of a Call Notice is irrevocable
  and shall constitute an indefeasible agreement to purchase the related Call
  Settlement Assets.

  
	
   

  	
   

  	
   

  
	
   

  	
  Call Settlement:

  	
  Settlement
  of the Call Option shall occur on the second Business Day after the delivery
  to Party B of the Call Notice (such date, the “Call Settlement Date”). 
  On the Call Settlement Date, the Collateral Agent will Deliver to DCL
  or Dexia, as applicable, the relevant Call Settlement Assets against payment
  of the Call Settlement Amount to Party B by Party A.  If Party A fails to pay the Call Settlement
  Amount, the Call Option will fail and the related Call Settlement Assets will
  not be delivered to Party A.

  
	
   

  	
   

  	
   

  
	
   

  	
  Call Settlement Amount:

  	
  At
  the election of Party A, in respect of the Call Settlement Asset, an amount
  equal to (A) either (x) 100% of the Outstanding Principal Amount or
  (y) the Mark to Market Value of the Call Settlement Assets Delivered on
  the Call Settlement Date (provided that if a DCL Belgian Corporate
  Reorganization has occurred, clause (x) shall not apply), plus (B) (i) any
  Interest Shortfall Amount, Principal Shortfall Amount or Writedown Amount
  accrued but not yet paid hereunder as of the Call Settlement Date plus,
  without duplication (ii) accrued and unpaid interest through the Call
  Settlement Date (in each case converted if applicable to USD at the Specified
  Currency Rate).

  

 

16

 

	
   

  	
   

  	
  The
  Call Settlement Asset Delivered on each Call Settlement Date will include the
  right to receive all accrued and unpaid interest in respect of the
  Outstanding Principal Amount of the Call Settlement Assets Delivered.

  
	
   

  	
   

  	
   

  
	
   

  	
  Currency Conversion:

  	
  In
  relation to any Call Settlement Asset not denominated in USD, the Call
  Settlement Amount shall still be denominated in USD, such amount to be
  determined by conversion of the Outstanding Principal Amount or Value, as the
  case may be, plus accrued interest at the Specified Currency Rate.

  
	
   

  	
   

  	
   

  
	
   

  	
  Multiple Exercise:

  	
  For the avoidance
  of doubt, the parties agree that
  with respect to this Call Option Transaction and notwithstanding anything to
  the contrary in the 2000 Definitions, multiple Call Settlement Dates may
  occur and multiple Call Settlement Amounts may be payable by Party A.

  
	
   

  	
   

  	
   

  
	
  5.  Additional Provisions:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Representation as to Exposure:

  	
  Party
  B represents to Party A in relation to the Put Portfolio Assets that on the
  Effective Date Party B either (i) beneficially owns the relevant Put
  Portfolio Asset or (ii) is obligated to purchase such Put Portfolio
  Asset under a repurchase agreement through which the purchase of the Put
  Portfolio Asset by Party B has been financed (or refinanced), with the result
  that (x) such Put Portfolio Asset is included in Party B’s balance sheet
  assets and (y) any income deriving from the Put Portfolio Asset accrues
  to Party B.

  
	
   

  	
   

  	
   

  
	
   

  	
  Obligations of Party A Unconditional:

  	
  In
  relation to its payment obligations under this Put Option Transaction each of Dexia and DCL waives
  all rights (whether by counterclaim, setoff or otherwise) and defenses
  (including, without limitation, the defense of fraud), to the extent that
  such rights and defenses may be available to Party A to avoid payment of
  their respective obligations under this Put Option Transaction in accordance
  with its terms (but subject to Party A’s right to receive Delivery of the Put
  Settlement Assets on any Put Settlement Date and
  the Call Settlement Assets on any Call Settlement Date).

  
	
   

  	
   

  	
   

  
	
   

  	
  Subrogation Rights:

  	
  Subject
  to and conditioned upon payment by DCL or Dexia (or, in the case of Dexia,
  payment by the Sovereign Guarantors under the Sovereign Guarantee), as
  applicable, in connection with a Deferred Settlement Election, DCL or Dexia,
  as applicable, shall be subrogated to the rights of Party B to receive
  reimbursement from the Issuer of the relevant Put Settlement Asset for the
  relevant Interest Shortfall, Principal Shortfall or Writedown Amount and to

  

 

17

 

	
   

  	
   

  	
  exercise
  any right, power or the like of Party B with respect thereto, provided that
  DCL or Dexia (as the case may be) may not exercise such subrogation rights
  unless at such time the Subordinated Claims Payment Condition is satisfied.

  
	
   

  	
   

  	
   

  
	
   

  	
  Effect of Payment by

  Sovereign Guarantors:

  	
  Notwithstanding a failure
  by Party A to make one or more payments under this Agreement (including
  without limitation any Delivery of Eligible Collateral), and as specified in
  the Schedule, no Event of Default shall be deemed to have occurred in
  relation to Dexia or DCL hereunder if the Sovereign Guarantee is still
  applicable to the relevant payment obligation or to a Dexia Bankruptcy (and
  no Sovereign Guarantee Unenforceability Date has occurred) and the Sovereign
  Guarantors perform their payment obligations in relation thereto in a timely
  manner pursuant to the terms of the Sovereign Guarantee.

   

  
	
   

  	
  Multiple Exercise:

  	
  For the avoidance
  of doubt, the parties agree that
  with respect to this Put Option Transaction and notwithstanding anything to
  the contrary in the 2000 Definitions, multiple Put Settlement Dates may occur
  and multiple Put Settlement Amounts may be payable by Party A.

  
	
   

  	
   

  	
   

  
	
   

  	
  Calculation Agent Determinations:

  	
  The Calculation
  Agent shall be responsible for determining and calculating (i) the Put
  Premium Amount payable on each Put Premium Payment Date; and (ii) the
  determination of Shortfall Amounts and providing the Shortfall Information;
  provided that notwithstanding the above, each of FSA, the Collateral Agent,
  Party B and Party A shall be entitled to determine and calculate the above
  amounts to the extent that FSA, the Collateral Agent, Party B or Party A, as
  applicable, have the right to deliver a notice to the other party demanding
  payment of such amount.  The
  Calculation Agent, FSA, the Collateral Agent, Party B or Party A, as
  applicable, shall make such determinations and calculations based solely on
  the basis of the Servicer Reports, to the extent such Servicer Reports are
  reasonably available to the Calculation Agent, FSA, the Collateral Agent,
  Party B or Party A, as applicable.  The
  Calculation Agent, FSA, the Collateral Agent, Party B or Party A, as
  applicable, shall, as soon as practicable after making any of the
  determinations or calculations specified in (i) and (ii) above,
  notify FSA and the parties or the other party, as applicable, of such
  determinations and calculations. For the avoidance of doubt, if an Interest
  Shortfall Amount is not explicitly set out in the Servicer Report but the
  Calculation Agent determines that an Interest Shortfall has occurred on the
  basis of information in such Servicer Report, then the relevant Interest
  Shortfall Amount shall be calculated and reported by the

  

 

18

 

	
   

  	
   

  	
  Calculation Agent
  on the basis of such information.

  
	
   

  	
   

  	
   

  
	
   

  	
  Adjustment of Calculation

  Agent Determinations

  	
  To
  the extent that a Servicer furnishes any Servicer Reports correcting
  information contained in previously issued Servicer Reports, and such
  corrections impact calculations pursuant to this Put Option Transaction, the
  calculations relevant to this Put Option Transaction shall be adjusted
  retroactively by the Calculation Agent to reflect the corrected information
  (provided that, for the avoidance of doubt, no amounts in respect of interest
  shall be payable by either party and provided that the Calculation Agent in
  performing the calculations pursuant to this paragraph will assume that no
  interest has accrued on any adjusted amount), and the Calculation Agent shall
  promptly notify both parties and FSA of any corrected payments required by
  either party. Any required corrected payments shall be made within five
  Business Days of the day on which such notification by the Calculation Agent
  is effective.

  
	
   

  	
   

  	
   

  
	
  6.  Notices and Account Details:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notices to Party
  B:

  	
  As set forth in the Schedule

  
	
   

  	
   

  	
   

  
	
   

  	
  Notices to Party
  A:

  	
  As set forth in
  the Schedule

  
	
   

  	
   

  	
   

  
	
   

  	
  Account Details of
  Party B:

  	
  The FSAM Cash Account (as defined in
  the Pledge and Administration Agreement)

  
	
   

  	
   

  	
   

  
	
   

  	
  Account Details of
  Party A:

  	
  To be advised in writing by Party A

  

 

7.  Additional
Definitions:

 

For the purposes of this Put Option Transaction
only, the following terms have the meanings given below:

 

“Accelerated Downgrade Liquidity Draw” has
the meaning specified in the relevant Guaranteed Liquidity Facility.

 

“Accelerated Downgrade Liquidity Draw Deadline”
means 9:00 am, New York City time on the first Business Day after the date on
which the relevant Accelerated Downgrade Liquidity Draw is deemed requested
(under the terms of the relevant Guaranteed Liquidity Facility).

 

“Actual Interest Amount” means, with respect
to any Put Portfolio Asset Payment Date, payment by or on behalf of the Issuer
of an amount in respect of interest due under the Put Portfolio Asset
(including, without limitation, any deferred interest or default interest but
excluding payments in respect of prepayment penalties, yield maintenance
provisions or principal, except that the Actual Interest Amount shall include
any payment of principal representing capitalized interest) to the holder(s) of
the Put Portfolio Asset in respect of the Put Portfolio Asset.

 

19

 

“Actual Principal Amount” means, with
respect to the Final Amortization Date, Principal Installment Date or the Legal
Final Maturity Date, an amount paid on such day by or on behalf of the Issuer
in respect of principal (excluding any amount representing capitalized
interest) to the holder(s) of the Put Portfolio Asset in respect of the
Put Portfolio Asset.

 

“Applicable
Percentage” means in relation to any Put Portfolio Asset the
percentage indicated as such in the Put Portfolio Annex.

 

“Collateral Agent”
has the meaning specified in the Pledge and Administration Agreement.

 

“DCL
Bankruptcy” means the occurrence with respect to DCL of an event
described in Section 5(a)(vii), provided, however, that subclause (4) of
Section 5(a)(vii) shall be amended so that the reference to “30 days”
in subclause (4)(B) of Section 5(a)(vii) shall refer to “60 days”.

 

“Effective
Maturity Date” in relation to any Put Portfolio Asset means the
earlier of the Legal Final Maturity Date or Final Amortization Date, each as
subject to adjustment in accordance with the Following Business Day Convention,
in relation to such Put Portfolio Asset.

 

“Expected
Interest Amount” means, with respect to any Put Portfolio Asset
Payment Date, the amount of current interest that would accrue during the
related Put Portfolio Asset Calculation Period calculated using the Put
Portfolio Asset Coupon on a principal balance of the Put Portfolio Asset equal
to (measured as of the first day of the related Put Portfolio Asset Calculation
Period) the Outstanding Principal Amount taking into account any reductions due
to a principal deficiency balance or realized loss amount (however described in
the Underlying Instruments) that are attributable to the Put Portfolio Asset,
and that will be payable on the related Put Portfolio Asset Payment Date
assuming for this purpose that sufficient funds are available therefor in
accordance with the Underlying Instruments.

 

Except as
provided in the previous sentence, the Expected Interest Amount shall be
determined without regard to (i) unpaid amounts in respect of accrued
interest on prior Put Portfolio Asset Payment Dates; (ii) any prepayment
penalties or yield maintenance provisions; or (iii) the effect of any
provisions (however described) of such Underlying Instruments that otherwise
permit the limitation of due payments to distributions of funds available from
proceeds of the Underlying Assets, or that provide for the capitalization or
deferral of interest on the Put Portfolio Asset, or that provide for the
extinguishing or reduction of such payments or distributions or (iv) any “available
funds cap” or “net WAC cap” or similar provision of the Underlying Instruments
(each a “Limitation Provision”)
(but, for the avoidance of doubt, taking account of any Writedown within the
definition of “Writedown” occurring in accordance with the Underlying
Instruments).

 

For the
purposes of calculating the Expected Interest Amount, and notwithstanding any
other provision herein, the Put Portfolio Asset Coupon shall be deemed to
include any cap stated in the Underlying Instrument that is not a Limitation
Provision (but any “available funds cap” or “net WAC cap” or similar provision
of the Underlying Instruments shall be deemed to constitute a Limitation
Provision and not a cap as described in this sentence).

 

“Expected Principal Amount” means (A) with
respect to the Final Amortization Date or the Legal Final Maturity Date, an
amount equal to (i) the Outstanding Principal Amount of the Put Portfolio
Asset payable on such day (excluding any amount representing capitalized
interest) assuming for this purpose that sufficient funds are available for
such payment, where such amount shall be determined in accordance with the
Underlying Instruments, minus (ii) the net aggregate principal deficiency
balance or realized loss amounts (however described in the Underlying
Instruments) that are attributable to the Put Portfolio Asset and (B) with
respect to any Principal Installment Date, the Principal Installment Amount for
such Principal Installment Date.  The
Expected Principal Amount shall be determined without regard to the effect of
any provisions (however described) of the Underlying Instruments that permit
the limitation of due payments or distributions of funds in accordance with the
terms of such Put Portfolio Asset or that provide for the extinguishing or

 

20

 

reduction of
such payments or distributions.

 

“Failure to Pay Principal” means (i) a
failure by the Issuer (and any applicable Insurer) to pay an Expected Principal
Amount on the Final Amortization Date, the Legal Final Maturity Date or a
Principal Installment Date, as the case may be, or (ii) payment on any
such day of an Actual Principal Amount that is less than the Expected Principal
Amount; provided that the failure by the Issuer (and any applicable Insurer) to
pay any such amount in respect of principal in accordance with the foregoing
shall not constitute a Failure to Pay Principal if such failure has been
remedied within any grace period applicable to such payment obligation under
the Underlying Instruments or, if no such grace period is applicable, within
five Business Days after the day on which the Expected Principal Amount was
scheduled to be paid.

 

“Final Amortization Date” means the first to
occur of (i) the date on which the Put Portfolio Asset Principal Amount is
reduced to zero and (ii) the date on which the Underlying Assets owned or
held by the Issuer are liquidated, distributed or otherwise disposed of in full
and the proceeds thereof are distributed or otherwise disposed of in full.

 

“GICs” means the guaranteed investment
contracts (including guaranteed investment contracts in the form of repurchase
agreements) entered into by the GIC Issuers on or prior to the Effective Date
and listed on Annex 4 hereto.

 

“GIC Balance” means on any date of
determination the aggregate outstanding principal balance of the GICs as most
recently reported under the Pledge and Administration Agreement on such date.

 

“GIC Issuers” means FSA Capital Markets
Services (Caymans) Limited, FSA Capital Management Services LLC and FSA Capital
Markets Services LLC.

 

“Initial Face Amount” means in relation to
any Put Portfolio Asset the amount indicated as such in the Put Portfolio
Annex.

 

“Initial Factor” means in relation to any
Put Portfolio Asset the factor indicated as such in the Put Portfolio Annex.

 

“Interest Shortfall” means, with respect to
any Put Portfolio Asset Payment Date, either (a) the non-payment of an
Expected Interest Amount or (b) the payment of an Actual Interest Amount
that is less than the Expected Interest Amount. 
For the avoidance of doubt, the occurrence of an event within (a) or
(b) shall be determined taking into account any payment made under the
Underlying Policy, if applicable.

 

“Interest Shortfall Amount” means with
respect to any Put Portfolio Asset Payment Date, an amount equal to the greater
of:

 

(a)                                  zero; and

 

(b)                                 the amount equal to
the product of:

 

(i)                                     (A)                              the Expected Interest
Amount;

 

minus

 

(B)                                the Actual
Interest Amount; and

 

(ii)                                  the Applicable
Percentage.

 

“Insurer” means in relation to any Put
Portfolio Asset the entity indicated as such, if any, in the Put Portfolio
Annex.

 

“Issuer” means in relation to any Put
Portfolio Asset the entity indicated as such in the Put Portfolio 

 

21

 

Annex.

 

“Legal Final Maturity Date” means in
relation to any Put Portfolio Asset the date set out in the Put Portfolio Annex
(subject, for the avoidance of doubt, to any business day convention applicable
to the legal final maturity date of the Put Portfolio Asset), provided that if
the legal final maturity date of the Put Portfolio Asset is amended, the Legal
Final Maturity Date shall be such date as amended.

 

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

 

“Master Repurchase Agreement” means the
Master Repurchase Agreement, dated as of June 30, 2009, among Party B,
each GIC Issuer and FSA as third party beneficiary, as the same may be
replaced, refinanced, or amended, supplemented or otherwise modified from time
to time.

 

“Original Principal Amount” means in relation to any Put
Portfolio Asset the amount indicated as such in the Put Portfolio Annex.

 

“Outstanding Principal Amount” means, as of
any date of determination with respect to the Put Portfolio Asset, the
outstanding principal balance of the Put Portfolio Asset as of such date, which
shall take into account:

 

(i)                                     all payments of
principal;

 

(ii)                                  all writedowns or
applied losses (however described in the Underlying Instruments) resulting in a
reduction in the outstanding principal balance of the Put Portfolio Asset
(other than as a result of a scheduled or unscheduled payment of principal);

 

(iii)                               forgiveness of any
amount by the holders of the Put Portfolio Asset pursuant to an amendment to
the Underlying Instruments resulting in a reduction in the outstanding
principal balance of the Put Portfolio Asset;

 

(iv)                              any payments reducing
the amount of any reductions described in (ii) and (iii) of this
definition; and

 

(v)                                 any increase in the
outstanding principal balance of the Put Portfolio Asset that reflects a
reversal of any prior reductions described in (ii) and (iii) of this
definition; and

 

(vi)                              any increase in the
outstanding principal balance of the Put Portfolio Asset that is attributable
to the deferral or capitalization of interest prior to the Effective Date.

 

For
the avoidance of doubt, the Outstanding Principal Amount shall not include any
portion of the outstanding principal balance of the Put Portfolio Asset that is
attributable to the deferral or capitalization of interest on or after the
Effective Date.

 

“Principal Installment Amount” means, with
respect to any Put Portfolio Asset having scheduled installment dates for the
repayment of principal, and a Principal Installment Date, the amount of the
relevant installment of principal payable on such Principal Installment Date.

 

“Principal Installment Date” means, with
respect to any Put Portfolio Asset having scheduled installment dates for the
repayment of principal, each such scheduled installment date (other than any
Legal Final Maturity Date or Final Amortization Date).

 

“Principal Payment” means, with respect to
any Put Portfolio Asset Payment Date, the occurrence of a payment of an amount
to the holders of the Put Portfolio Asset in respect of principal (scheduled or
unscheduled) in respect of the Put Portfolio Asset other than a payment in
respect of principal representing capitalized interest.

 

“Principal Payment Amount” means, with
respect to any Put Portfolio Asset Payment Date, an amount equal to the product
of (i) the amount of any Principal Payment on such date and (ii) the

 

22

 

Applicable
Percentage.

 

“Principal Shortfall Amount” means, in
respect of a Failure to Pay Principal, an amount equal to the greater of:

 

(i)                                     zero; and

 

(ii)                                  the amount equal to the
product of:

 

(A)                              the Expected Principal
Amount minus the Actual Principal Amount; and

 

(B)                                the Applicable Percentage.

 

If
the Principal Shortfall Amount would be greater than the Put Portfolio Asset
Principal Amount immediately prior to the occurrence of such Failure to Pay
Principal, then the Principal Shortfall Amount shall be deemed to be equal to
the Put Portfolio Asset Principal Amount at such time.

 

“Put
Portfolio Asset Calculation Period” means, with respect to each Put
Portfolio Asset Payment Date, a period corresponding to the interest accrual
period relating to such Put Portfolio Asset Payment Date pursuant to the Underlying
Instruments.

 

“Put
Portfolio Asset Coupon” means the periodic interest rate applied in
relation to each Put Portfolio Asset Calculation Period on the related Put
Portfolio Asset Payment Date (including any scheduled step-up or similar
scheduled adjustment to such interest rate from time to time provided under the
terms of the Underlying Instruments), as determined in accordance with the
terms of the Underlying Instruments as at the Effective Date, without regard to
any subsequent amendment to which Party A and the Sovereign Guarantors have not
given their prior written consent (other than an amendment with respect to
which the consent of the holder of the Put Portfolio Asset is not required).

 

“Put
Portfolio Asset Payment Date” means each scheduled distribution date
for the Put Portfolio Asset occurring on or after the Effective Date and on or
prior to the Legal Final Maturity Date for such Put Portfolio Asset, determined
in accordance with the Underlying Instruments.

 

“Put
Portfolio Asset Principal Amount” means the following:

 

On the
Effective Date, the product of:

 

(a)                                  the Original Principal
Amount;

 

(b)                                 the Initial Factor;
and

 

(c)                                  the Applicable
Percentage.

 

Following the
Effective Date, each Put Portfolio Asset Principal Amount will be:

 

(i)                                     decreased on each day
on which a Principal Payment is made by the relevant Principal Payment Amount;

 

(ii)                                  decreased on the day,
if any, on which a Failure to Pay Principal occurs by the relevant Principal
Shortfall Amount; and

 

(iii)                               decreased on each day
on which a Writedown occurs by the relevant Writedown Amount.

 

For the
avoidance of doubt, the Put Portfolio Asset Principal Amount shall not be
increased by any deferral or capitalization of interest or decreased by payment
of any portion of the principal balance of the Put Portfolio Asset that is
attributable to the deferral or capitalization of interest.

 

“Repurchase Agreement Facility” has the meaning specified in
the Pledge and Administration

 

23

 

Agreement.

 

“Servicer”
means any trustee, servicer, sub-servicer, master servicer, fiscal agent,
paying agent or other similar entity responsible for calculating payment
amounts or providing reports pursuant to the Underlying Instruments.

 

“Servicer
Report” means a periodic statement or report regarding the Put
Portfolio Asset provided by the Servicer to holders of the Put Portfolio Asset.

 

“Shortfall Amount”
means any Interest Shortfall Amount, Principal Shortfall Amount or Writedown
Amount.

 

“Sovereign
Asset Guarantee Expiration Date” means March 30, 2035 unless
such date is extended by the Sovereign Guarantors.

 

“Specified
Currency Rate” means in relation to any Put Settlement Asset (i) if Party A or
the Sovereign Guarantors assume all of the rights and obligations of Party B
under the a currency hedge identified as related to such Put Settlement Asset in the Hedge Agreement Register
under the Pledge and Administration Agreement such that Party B has no
further rights or obligations under such currency hedge, the rate of exchange
specified under such currency hedge or (ii) if (i) is not applicable,
by reference to the Federal Reserve Bank of New York 10:00 a.m. (New York
City time) mid-point rate as displayed on Reuters Page FEDSPOT on the
second Business Day preceding the relevant Put Settlement Date, or if such rate
is unavailable, in such other commercially reasonable manner as the Calculation
Agent shall determine after consultation with the parties.

 

“Subordinated Claims Payment Condition” has the meaning
specified in the Pledge and Administration Agreement.

 

“Underlying Assets” means the assets
securing the Put Portfolio Asset for the benefit of the holders of the Put
Portfolio Asset and which are expected to generate the cashflows required for
the servicing and repayment (in whole or in part) of the Put Portfolio Asset,
or the assets which secure and/or support the Issuer’s obligations to the
holder of such Put Portfolio Asset where such exposure is created
synthetically.

 

“Underlying Instruments” means the indenture,
trust agreement, pooling and servicing agreement or other relevant agreement(s)
setting forth the terms of the Put Portfolio Asset.

 

“Underlying Policy” means in relation to any
Put Portfolio Asset the guarantee or insurance policy, if any, indicated as
such in the Put Portfolio Annex.

 

“Writedown” means the
occurrence at any time on or after the Effective Date of:

 

(A)  a writedown or applied loss (however described in the
Underlying Instruments) resulting in a reduction in the Outstanding Principal
Amount (other than as a result of a scheduled or unscheduled payment of
principal); or

 

(B) 
the attribution of a principal deficiency or realized loss (however described
in the Underlying Instruments) to the Put Portfolio Asset resulting in a
reduction or subordination of the current interest payable on the Put Portfolio
Asset.

 

“Writedown Amount” means,
with respect to any day, the product of (i) the amount of any Writedown on
such day and (ii) the Applicable Percentage.

 

24

 

Please confirm your agreement to be
bound by the terms of the foregoing by executing a copy of this Confirmation
and returning it to us.

 

Yours faithfully,

 

 

	
  FSA ASSET MANAGEMENT
  LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEXIA SA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
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  DEXIA CRÉDIT LOCAL  S.A., acting through
  its New York Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Guaranteed
Put Confirmation

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