Common use of Interest Rate Switches and the Switch Option Clause in Contracts

Interest Rate Switches and the Switch Option. The Lender may permit a Borrower under any Credit to switch the Guaranteed Interest Rate applicable to such Credit (or any part thereof) one or more times (each such option, an “Interest Rate Switch”) in accordance with the terms and conditions set forth in the relevant Credit Agreement; provided (i) if the Interest Rate Switch is to a floating rate, Ex-Im Bank shall have approved such floating rate in the relevant Ex-Im Bank Approval; (ii) the Lender has notified Ex-Im Bank’s Asset Management Division of the new rate in writing no more than ten (10) Business Days following the exercise of such Interest Rate Switch; and (iii) such Interest Rate Switch may be exercised only as long as no Event of Default has occurred under such Credit. Unless Ex-Im Bank otherwise agrees, the following shall apply: (a) Ex-Im Bank shall only endorse a Guarantee Legend or issue a Guaranteed Note Certificate once with respect to any replacement Note or Note Series issued in connection with a single exercise of an Interest Rate Switch. This one-time only right of the Lender to request that Ex-Im Bank so endorse its Guarantee Legend or issue a Guaranteed Note Certificate pursuant to the preceding sentence shall be referred to as the “Switch Option”. (b) If, under an Interest Rate Switch, the Borrower issues a replacement Note or Note Series, as the case may be, on a day that is not a Payment Date, such replacement Note or Note Series must be dated the date of issuance by the Borrower, all previously accrued interest on the relevant Credit must be paid in full on the date of issuance of the replacement Note or Note Series, and such Note or Note Series must begin accruing interest at the new rate of interest on the date of issuance. (c) Interest Rate Switches may only be applied to all Serial Notes of a particular Note Series, and not to any individual Serial Note of such Note Series.

Interest Rate Switches and the Switch Option. The Lender Agent may permit a Borrower under any Credit to switch the Guaranteed Interest Rate applicable to such Credit (or any part thereof) one or more times (each such option, an “Interest Rate Switch”) in accordance with the terms and conditions set forth in the relevant Credit Agreement; provided (i) if the Interest Rate Switch is to a floating rate, Ex-Im Bank shall have approved such floating rate in the relevant Ex-Im Bank Approval; (ii) the Lender Agent has notified Ex-Im Bank’s Asset Project and Corporate Portfolio Management Division of the new rate in writing no more than ten (10) Business Days following the exercise of such Interest Rate Switch; and (iii) such Interest Rate Switch may be exercised only as long as no Event of Default has occurred under such Credit. Unless Ex-Im Bank otherwise agrees, the following shall apply: (a) Ex-Im Bank shall only endorse a Guarantee Legend or issue a Guaranteed Note Certificate once with respect to any replacement Note or Note Series issued in connection with a single exercise of an Interest Rate Switch. This one-time only right of the Lender Agent to request that Ex-Im Bank so endorse its Guarantee Legend or issue a Guaranteed Note Certificate pursuant to the preceding sentence shall be referred to as the “Switch Option”. (b) If, under an Interest Rate Switch, the Borrower issues a replacement Note or Note Series, as the case may be, whether or not on a day that is not a Payment Date, such replacement Note or Note Series must be dated the date of issuance by the Borrower, all previously accrued interest on the relevant Credit must be paid in full on the date of issuance of the replacement Note or Note Series, and such Note or Note Series must begin accruing interest at the new rate of interest on the date of issuance. (c) Interest Rate Switches may only be applied to all Serial Notes of a particular Note Series, and not to any individual Serial Note of such Note Series.