Template:DRVF 6

6 Calculation Method for Interest-Rate Related Transactions

6(1) Each floating amount to be paid in respect of a Transaction shall be the product of

(a) the notional amount agreed for such Transaction,

(b) the floating interest rate (Base Rate) calculated in accordance with Clause 5 and the terms of such Transaction, expressed as a decimal figure, and

(c) the Day Count Fraction within the meaning of Clause 6(5) below.

6(2) Each fixed amount to be paid in respect of any Transaction shall be the amount stated in the terms of the Transaction, if the amount is specified as a figure. Otherwise it shall be the product of

6(2)(a) the notional amount agreed for such Transaction,

6(2)(b) the fixed interest rate (Fixed Rate) agreed for such Transaction, expressed as a decimal figure, and

6(2)(c) the Day Count Fraction within the meaning of Clause 6(5) below.

6(3) In the case of rate protection transactions, the Base Rate shall be in each case, subject to the terms of the relevant Transaction and without prejudice to the provisions of Clause 6(4) below

6(3)(a) for payments by the party designated as surplus payer (or Cap or FRA seller), the agreed Base Rate less the rate which is stated in the terms of the Transaction as the maximum rate (or cap rate) or as the forward rate, and

6(3)(b) for payments by the party designated as deficit payer (or Floor seller or FRA buyer), the rate which is stated in the terms of the Transaction as the minimum rate (or floor rate) or as the forward rate, less the agreed Base Rate.

6(3)(c) If a payment is not made upon expiration of the relevant Calculation Period, but at the beginning thereof, the amount to be determined in accordance with Clauses 6(1) or 6(2) above shall be discounted by dividing such amount by an amount which is calculated, in the case of a Calculation Period of one year or less in accordance with the formula 1+((L*D)/B) and in the case of a Calculation Period of more than one year in accordance with the formula (1+L) ^(D/B)

where

L means the Base Rate determined, or other discount rate agreed, in respect of the relevant Calculation Period, expressed as a decimal figure (i. e. 0.07, for instance, in the case of a Base Rate or discount rate of 7 %);

D means the number of days comprised in such Calculation Period;

B means 360, unless the agreed contractual currency is a currency for which it is market practice to calculate the Base Rate or other agreed discount rate on the basis of 365 or, for leap years, 366 days; in such case B means 365 or 366, respectively.

The provisions set forth above shall, unless agreed otherwise, generally apply to Forward Rate Agreements. In the case of other Transactions, they shall apply only if the terms of the Transaction provide for discounting.

6(4) Day Count Fraction means, as specified in the terms of the relevant Transaction, any of the following:

6(4)(a) the number of days actually elapsed within the Calculation Period for which the amount is to be calculated, divided by 360, (365/360) or

6(4)(b) the number of days elapsed within such Calculation Period, calculated on the basis of a 360-day year with 12 months of 30 days each, divided by 360, (360/360) or

6(4)(c) the number of days actually elapsed within such Calculation Period, divided by 365 or, in the case of a leap year, 366, (365/365) or

6(4)(d) the number of days actually elapsed within such Calculation Period, divided by 365 (366/365).

6(5) Calculation Period means the period beginning with, and including, the effective date of the Transaction, or a Payment Date, and ending with, but excluding, the next following Payment Date or the termination date, or, where the parties have specified Due Date/Due Date in the terms of the Transaction with respect to floating amounts, the period beginning with, and including, the effective date of the Transaction, or a Due Date, and ending with, but excluding, the next following Due Date or the termination date. For the purposes of this Agreement, Payment Date means the day on which the payment is actually to be made, where applicable after adjustment in accordance with Clause 3(5), and Due Date means the contractually agreed day for payment, without any such adjustment.

6(6) If a floating amount, or a fixed amount to be calculated pursuant to Clause 6(2) above, sentence 2, is due, the Bank shall notify the Counterparty of such amount, in the first case together with the applicable reference basis.