EFTA01388249.pdf

(c) "Basic Compounding Period Amount" means, for any Compounding Period, an amount calculated as if a Floating Amount were being calculated for that Compounding Period, using the formula set forth in Section 6.1(a). (f) "Additional Compounding Pcriod Amount" means, for any Compounding Period, an amount calculated on a formula basis for that Compounding Period as follows: Additional Floating Compounding Flat Rate Period = Compounding x Floating x Day Count Amount Amount Rate Fraction (g) "Flat Compounding Amount" means (i) in respect of the first Compounding Period in any Calculation Period, zero and (ii) in respect of each succeeding Compounding Period in that Calculation Period, an amount equal to the sum of the Basic Compounding Period Amounts and the Additional Compounding Period Amounts for each of the previous Compounding Periods in that Calculation Period. Section 6.4. Negative Interest Rates. For purposes of the calculation of a Floating Amount payable by a party, other than where the provisions of Section 6.2(a)(ii), Section 8.4(b) or Section 8.4(e) apply: (a) Unless the parties specify otherwise, "Negative Interest Rate Method" will be deemed to apply to a Swap Transaction. (b) If "Negative Interest Rate Method" is applicable to a Swap Transaction, "Compounding" or "Flat Compounding" is not specified for that Swap Transaction and the Floating Amount payable by a party on a Payment Date is a negative number (either due to a quoted negative Floating Rate or by operation of a negative Spread that is added to the Floating Rate), then the Floating Amount payable by that party on that Payment Date will be deemed to be zero, and the other party will pay to that party the absolute value of the negative Floating Amount as calculated, in addition to any amounts otherwise payable by the other party for the related Calculation Period, on that Payment Date. Any amounts paid by the other party with respect to the absolute value of a negative Floating Amount will be paid to such account as the receiving party may designate (unless such other party gives timely notice of a reasonable objection to such designation) in the currency in which that Floating Amount would have been paid if it had been a positive number (and without regard to the currency in which the other party is otherwise obligated to make payments). (c) If "Negative Interest Rate Method" is applicable to a Swap Transaction, either "Compounding" or "Flat Compounding" is specified to be applicable to that Swap Transaction and the Compounding Period Amount, the Basic Compounding Period Amount or the Additional Compounding Period Amount is a negative number (either due to a quoted negative Floating Rate or by operation of a negative Spread that is added to the Floating Rate), then the Floating Amount for the Calculation Period in which that Compounding Period or those Compounding Periods occur will be either the sum of all Compounding Period Amounts or the sum of all the Basic Compounding Period Amounts and all the Additional Compounding Period Amounts in that Calculation Period (whether positive or negative). If such sum is positive, then the Floating Rate Payer with respect to the Floating Amount so calculated will pay that Floating Amount to the other party. If such sum is negative, the Floating Amount payable by the party that would otherwise be required to pay that Floating Amount will be deemed to be zero, and the 19 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0091704 CONFIDENTIAL SDNY GM_00237888 EFTA01388249