Text extracted via OCR from the original document. May contain errors from the scanning process.
The Confirmation shall describe the Purchased Securities (including CUSIP or !SIN or other
identifying number or numbers. if any). identify Buyer and Seller and set forth -
(i)
the Purchase Date:
(ii)
the Purchase Price:
(iii)
the Repurchase Date, unless the Transaction is to be terminable on demand (in which case the
Confirmation shall state that it is terminable on demur and):
(iv)
the Pricing Rate applicable to the Transaction:
(v)
in respect of each party the details of the bank accountisj to which payments to be made
hereunder arc to be credited:
(vi)
where the Buy/Sell Back Annex applies• whether the Transaction is a Repurchase Transaction
or a Buy/Sell Back Transaction:
(vii)
where the Agency Annex applies, whether the Transaction is an Agency Transaction and, if
so. the identity of the party which is acting as agent and the name. code or identifier of the
Principal: and
(viii)
any additional terms or conditions of the Transaction;
and may be in the form of Annex II hereto or may be in any other form to which the parties agree.
The Confirmation relating to a Transaction shall. together with this Agreement constitute prima facie
evidence of the terms agreed between Buyer and Seller for that Transaction, unless objection is made
with respect to the Confirmation promptly after receipt thereof. In the event of any conflict between the
terms of such Confirmation and this Agreement, the Confirmation shall prevail in respect of that
Transaction and those terms only.
(c)
On the Purchase Date for a Transaction• Seller shall transfer the Purchased Securities to Buyer or its
agent against the payment of the Purchase Price by Buyer.
(d)
Termination of a Transaction will be effected, in the case of on demand Transactions, on the date
specified for Termination in such demand, and. in the case of fixed term Transactions. on the date fixed
for Termination.
(c)
In the ease of on demand Transactions, demand for Termination shall be made by Buyer or Seller, by
telephone or otherwise, and shall provide for Termination to occur after not less than the minimum
period as is customarily required for the settlement or delivery of money or Equivalent Securities of the
relevant kind.
On the Repurchase Date. Buyer shall transfer to Seller or its agent Equivalent Securities against the
payment of the Repurchase Price by Seller (less any amount then payable and unpaid by Buyer to
Seller pursuant to paragraph 5).
4.
Margin Maintenance
(a)
If at any time either party has a Net Exposure in respect of the other party it may by notice to the other
party require the other party to make a Margin Transfer to it of an aggregate amount or value at least
equal to that Net Exposure.
(b)
A notice under subparagraph (a) above may be given orally or in writing
(c)
For the purposes of this Agreement a party has a Net Exposure in respect of the other party if the
aggregate of all the first party's Transaction Exposures plus any amount payable to the first party under
paragraph 5 but unpaid less the amount of any Net Margin provided to the first party exceeds the
aggregate of all the other parn•'s Transaction Exposures plus any amount payable to the other party
under paragraph 5 but unpaid less the amount of any Net Margin provided to the other party: and the
amount of the Net Exposure is the amount of the excess. For this purpose any amounts not
denominated in the Base Currency shall be converted into the Base Currency at the Spot Rate
prevailing at the relevant time.
(d)
To the extent that a party calling for a Margin Transfer has previously paid Cash Margin which has not
been repaid or delivered Margin Securities in respect of which Equivalent Margin Securities have not
been delivered to it. that party shall be entitled to require that such Margin Transfer be satisfied first by
6
Confidential
CONFIDENTIAL — PURSUANT TO FED. R CRIM. P. 6(e)
DB-SDNY-0115640
CONFIDENTIAL
SDNY_GM_00261824
EFTA01456448