Termination Events - ISDA Provision

Termination Events and Events of Default

Termination Events and Events of Default under an ISDA Master Agreement are similar in that when they occur to one party (the Affected Party or Defaulting Party) the other may terminate outstanding trades under the agreement. A crucial difference between them is that events of default may give rise to third-party default rights (where the relevant Cross Default extends to derivatives and trading documents) but generally termination events under an ISDA Master Agreement with another dealer will not.

Termination events are less likely (although sometimes they do) to trigger third-party defaults; however, they often will trigger termination rights that cut across all agreements with one dealer (i.e., Default Under Specified Transaction).

Section 5(b) 2002 ISDA Master

(b) Termination Events. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider
of such party or any Specified Entity of such party of any event specified below constitutes (subject to Section 5(c))
an Illegality if the event is specified in clause (i) below, a Force Majeure Event if the event is specified in clause
(ii) below, a Tax Event if the event is specified in clause (iii) below, a Tax Event Upon Merger if the event is
specified in clause (iv) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified
pursuant to clause (vi) below: