user’s guide: 2004 asian currency non-deliverable foreign

Non-deliverableForeign ExchangeDocumentation

35

User’s Guide:2004 ASIAN CURRENCY

Effective as of December 1, 2004

Singapore Foreign Exchange Market Committee10 Shenton WaySingapore 079117

EMTA, Inc.360 Madison Avenue18th FloorNew York, NY 10017

Foreign Exchange Committee33 Liberty Street9th FloorNew York, NY 10045

36 FOREIGN EXCHANGE COMMITTEE 2004 ANNUAL REPORT

Introduction . . . . . . . . . . . . . . . . . . 37

The 2004 Template Terms . . . . . . . . 38Overview of Key Amendments

to the 2001 Templates ..................................38Adding a 14-Day Deferral Period

for Unscheduled Holiday.............................39Valuation Postponement

as the New First Disruption Fallback ...........40SFEMC Indicative Survey Rate as the

New Second Disruption Fallback ................40Fallback Survey Valuation Postponement

as the New Third Disruption Fallback ..........41Calculation Agent Determination

as the Final Disruption Fallback ....................41Limiting the Deferral Period or

the Maximum Days of Postponement.........42Specifying the Maximum Days

of Postponement ..........................................42Specifying the Valuation City..........................43Endnotes..........................................................43

Revisions to Annex A RateSource Definitions . . . . . . . . . . . . . . 43

SFEMC Indicative SurveyMethodology . . . . . . . . . . . . . . . . . . 44

Appendix A – Chinese Renminbi . . . 472004 SFEMC, EMTA & FXC

Template Terms.............................................47Amended Chinese Renminbi

Rate Source Definition .................................50CNY Indicative Survey Rate Methodology.....5 1

Appendix B – Indonesian Rupiah . . . 542004 SFEMC, EMTA & FXC

Template Terms.............................................54Indonesian Rupiah Rate Source Definition....57IDR Indicative Survey Rate Methodology......58

Appendix C – Indian Rupee . . . . . . . 612004 SFEMC, EMTA & FXC

Template Terms .............................................61Amended Indian Rupee

Rate Source Definition .................................64INR Indicative Survey Rate Methodology......65

Appendix D – Korean Won . . . . . . . . 682004 SFEMC, EMTA & FXC

Template Terms ............................................68Amended Korean Won

Rate Source Definition ..................................71KRW Indicative Survey Rate Methodology....72

Appendix E – Philippine Peso . . . . . . 752004 SFEMC, EMTA & FXC

Template Terms.............................................75Amended Philippine Peso

Rate Source Definition .................................78PHP Indicative Survey Rate Methodology .....79

Appendix F – Taiwanese Dollar. . . . . 822004 SFEMC, EMTA & FXC

Template Terms.............................................82Amended Taiwanese Dollar

Rate Source Definition .................................85TWD Indicative Survey Rate Methodology ...87

Table of Contents

IntroductionThe Singapore Foreign Exchange Market Committee (SFEMC), EMTA, Inc. (EMTA),and the Foreign Exchange Committee (FXC) have cosponsored the publication ofupdated template terms for non-deliverable foreign exchange transactions for sixAsian currencies (the “2004 Templates”). The Tokyo Foreign Exchange MarketCommittee and the Treasury Markets Forum of Hong Kong support the cospon-sors in their publication of the updated documentation for the benefit of marketparticipants.

The 2004 Templates are intended for use with the 1998 FX and Currency OptionDefinitions (including Annex A thereto) published by ISDA, Inc., EMTA, and the FXC(the “1998 Definitions”). The six Asian currencies that the 2004 Templates addressare the Chinese Renminbi (CNY), the Indonesian Rupiah (IDR), the Indian Rupee(INR), the Korean Won (KRW), the Philippine Peso (PHP), and the Taiwan Dollar(TWD). In conjunction with the 2004 Templates, the cosponsors have publishedrelated survey methodologies (the “Methodologies”) and amendments to the ratesource definitions in Annex A of the 1998 Definitions. The 2004 Templates providesuggested contract terms to which market participants may agree on a bilateral basisin order to reduce documentation and settlement risk, generally promote soundmarket practice, and contribute to overall efficiency of the non-deliverable FXmarketplace. Notwithstanding, the SFEMC, EMTA, and FXC recognize each marketparticipant’s need to develop standards for contractual relationships that reflect its

37

Non-deliverableForeign ExchangeDocumentation

User’s Guide:2004 ASIAN CURRENCY

Effective as of December 1, 2004


own policies, procedures, and tolerance forrisk. Each market participant is encouraged touse the 2004 Templates in their entirety or inpart, in light of individual considerations.

In 2001, EMTA introduced to the industrystandardized terms for the above currencies(the “2001 Templates”) (excluding theIndonesian Rupiah, for which final templateterms were never published) that reflectedthen-current market practice and helped topromote market efficiencies and reducedocumentation risk. Since 2001, significantdevelopments have taken place in the non-deliverable FX markets, and in particular inseveral of the Latin American markets.Substantial efforts have been made toimprove the documentation architecture forthese markets to better address concernsregarding the possibility of an extendedclosure of a local market and to improvevaluation options and procedures in theevent of such an occurrence. In large part, thiseffort has involved a move away from relianceon Calculation Agent Determination and theintroduction of intermediate, market-basedvaluation alternatives.

The 2004 Templates extend the documen-tation improvements made in the LatinAmerican markets into the Asian non-deliverable FX markets, modified as appropriateto take account of regional differences inmarket practices and conventions. Amongother differences, while the templates forLatin American currencies are tailored to eachmarket, a single standard for all six of theAsian currencies was deemed appropriate. Asa result, all of the 2004 Templates and the sixrelated Methodologies are substantially the

same, with only very minor differences amongthem. These differences include the currencyaddressed by the template terms, theSettlement Rate Option, the Valuation City forValuation Date purposes and, in the case ofone of the Methodologies, the start time forthe fallback survey. Accordingly, it is possibleto discuss the 2004 Templates and theMethodologies generically in this User’sGuide, while noting these minor differences,where relevant. A more detailed descriptionof the key terms in the 2004 Templatesfollows.

Capitalized terms in this User’s Guide havethe meanings ascribed to them in the 1998Definitions, the 2004 Templates, and theMethodologies.

The 2004 Template Terms

Overview of Key Amendmentsto the 2001 TemplatesThe key characteristics of the 2001 Templateswere inclusion of Price Source Disruption asthe sole Disruption Event, a first DisruptionFallback of Currency Reference Dealers(CURA4) (a Calculation Agent poll of fourdealers in the relevant currency), and a finalDisruption Fallback of Calculation AgentDetermination, as well as reliance on aneight-day Drop-dead Date following anUnscheduled Holiday. For purposes of the2001 Templates, an Unscheduled Holidaywould occur if the market failed to open forbusiness and the market had less than 48hours’ notice of this occurrence.

In the 2004 Templates, the definition ofUnscheduled Holiday has been retained, but

39ASIAN CURRENCY NON-DELIVERABLE FX DOCUMENTATION

the 2001 Template concept of an eight-dayDrop-dead Date has been replaced with a 14-calendar-day Deferral Period. In addition, the2004 Templates alter the “waterfall” ofDisruption Fallbacks to provide for a new firstDisruption Fallback of Valuation Postpone-ment for Price Source Disruption (a period ofup to 14 calendar days) and the new SFEMCIndicative Survey (the “Indicative Survey”). Forthe third Disruption Fallback, a secondvaluation postponement period of three days(Fallback Survey Valuation Postponement) willapply if the Indicative Survey fails, before a finalreliance on Calculation Agent Determination.

The sole Disruption Event in the 2004Templates continues to be Price SourceDisruption. A few additional new terms (e.g.,Cumulative Events and Maximum Days ofPostponement) also are added to facilitateoperation of the new Disruption Fallbacks.

Adding a 14-Day Deferral Period forUnscheduled HolidayThe term Drop-dead Date included in the 2001Templates has been deleted and a new term,Deferral Period for Unscheduled Holiday,appears in the 2004 Templates. This changewas made first in the updated EMTA 2002Amended ARS NDF Documentation.1 ADeferral Period of 14 calendar days is adoptedin Asia as more market-appropriate, as com-pared to a 30-day Deferral Period adopted forthe Latin American currencies. The 2004Templates provide that, upon the occurrenceof an Unscheduled Holiday, the Deferral

Period will commence on the ScheduledValuation Date for the transaction. If theUnscheduled Holiday continues, valuation ofthe transaction may be deferred for up to 14consecutive calendar days. The Valuation Datewill occur on the earlier of (i) the first BusinessDay after the Unscheduled Holiday ceases toexist and (ii) the first day after the DeferralPeriod lapses (the 15th calendar day, assumingit would have been a Business Day but for theUnscheduled Holiday). At that time, a SpotRate may be determined for the contract basedon the next available Disruption Fallback.

With respect to certain Latin Americancurrencies, the market has developedconsensus on a 30-day Deferral Period, basedon its experience with closures in countriessuch as Argentina and Venezuela that havelasted for several weeks and resulted fromsystemic political or economic events. In Asia,foreign exchange markets generally haveexperienced shorter-term closures, more oftenin response to the occurrence of a naturaldisaster. For the 2004 Templates, agreementwas reached on lengthening the period of timethat valuation would be deferred from eightdays to 14 days, which was considered asufficient time period in the context of Asia toallow the market opportunity to reopen.Allowing the market adequate time to resumenormalcy enhances the opportunity fortransparent, open-market pricing, whichmarket participants deemed to be preferableto a forced close-out of contracts at a timewhen price discovery is more difficult.

1 See EMTA’s User’s Guide to Revised ARS NDF Documentation, effective as of January 2, 2003.

Valuation Postponement as theNew First Disruption FallbackValuation Postponement is set forth as the firstDisruption Fallback following a Price SourceDisruption. In the 2004 Templates, ValuationPostponement for Price Source Disruptionoperates in a parallel fashion to a DeferralPeriod in the event of an UnscheduledHoliday. Under the 1998 Definitions, a PriceSource Disruption occurs when it becomesimpossible to obtain the Settlement Rate onthe Valuation Date. The 2004 Templates con-tinue to rely on the Settlement Rate Optionoriginally identified for each currency in the2001 Templates, many of which are officialrates. Accordingly, if the Settlement RateOption is unavailable on the Valuation Datefor the contract, Valuation Postponement forPrice Source Disruption operates to postponeits valuation until the earlier to occur of (i) theavailability of the Settlement Rate Option and(ii) the lapse of the Maximum Days ofPostponement. The Maximum Days ofPostponement for the 2004 Templates is 14consecutive calendar days (paralleling thelength of the Deferral Period). Upon reachingthe Maximum Days of Postponement after aPrice Source Disruption, the next BusinessDay will be deemed to be the Valuation Datefor purposes of the contract, and a Spot Ratemay be determined for the contract based onthe next applicable Disruption Fallback.

Current market practice is to use a “rolling”approach to deferring or postponingvaluation of non-deliverable FX contracts.That is, the Deferral Period or Valuation Post-ponement commences on the ScheduledValuation Date of each contract. Under this

approach, valuation of each contract is rolledforward until the 14-day time period fordeferral or postponement has beencompleted for that contract. The IndicativeSurvey would continue to be conductedthroughout the time that the UnscheduledHoliday or Price Source Disruption continues,which may extend well beyond any initialdeferral or postponement period, unless theSFEMC discontinues it due to InsufficientResponses (see page 10 below). Thisapproach has been adopted in the 2004Templates to be consistent with marketpractice for certain Latin Americancurrencies. It also enhances the integrity ofthe Settlement Rate by maximizing thecircumstances in which contracts can bevalued based on the primary settlement rate,given the potential for the market to reopenand normalize over time.

SFEMC Indicative Survey Rate as theNew Second Disruption FallbackIn the event the primary rate source is notavailable and the Deferral Period or theMaximum Days of Postponement, as the casemay be, have lapsed, the 2004 Templatesnow provide for a more market-based pricingmechanism in the form of an indicative surveyof active market participants. The SFEMC willsponsor, and a service provider will adminis-ter, the Indicative Survey. It is designed tooperate the same way for each of the Asiancurrencies, and is intended to provide themarket with a rate quotation that potentiallycould function for long periods of time evenin the event of significant market dislocation,illiquidity, or other disruption. The Indicative


Survey is specifically designed to be market-based and obtained from active, offshoreparticipants in the relevant non-deliverableFX market and to produce an indicative ratequotation that may be obtained in times ofmarket closure or disruption when a spot or areal dealing rate otherwise is not available.The Indicative Survey would be conductedpursuant to a Methodology specific to thecurrency, and the resulting rate would bepublished on the websites of the SFEMC andthe Association of Banks in Singapore (ABS),as well as on the screens of Telerate.

Fallback Survey ValuationPostponement as the New ThirdDisruption FallbackIf the Indicative Survey is commenced butultimately fails to result in the posting of a rate,the new Disruption Fallback, Fallback SurveyValuation Postponement, will operate topostpone valuation of the transaction for upto three additional Business Days. If theIndicative Survey fails on the first BusinessDay, the SFEMC will attempt the IndicativeSurvey for up to two additional Business Days.If the Indicative Survey fails on the thirdBusiness Day, the non-deliverable FX contractwill be valued on that day pursuant to the nextDisruption Fallback, which is CalculationAgent Determination.

Given the significance of the IndicativeSurvey as a fallback mechanism for valuing non-deliverable FX contracts, it was consideredimportant to provide a reasonable opportunityfor the Indicative Survey to begin to functionproperly. For this reason, the 2004 Templatesbuild in an additional three days of valuation

postponement. Failure of the IndicativeSurvey to result in the posting of a rate forthree consecutive days may signal that themarket has been severely compromised. Atthat point, market participants may decide toinitiate a close-out of outstanding contractson a bilateral basis. The SFEMC intends toabandon the Indicative Survey after a failureto obtain a rate for three consecutive pollingdays, although the Methodology allows theSFEMC flexibility and discretion to initiateand/or continue to operate the IndicativeSurvey if the circumstances warrant.

Calculation Agent Determinationas the Final Disruption FallbackThe industry has recognized in recent yearsthe inherent frailties in relying on CalculationAgent Determination in a closed or disruptedmarket. The concern over significant, systemicbasis risk for market participants in such situa-tions was a motivating factor in addressing thiscontract term in EMTA’s revised (and now cur-rent) template terms for Argentina and Brazilnon-deliverable FX transactions. These initia-tives responded to the FXC’s recommenda-tion that EMTA work with market participantsto develop valuation methodologies thatwould be more dependable and effective inthe event of unscheduled market holidays.

While the 2004 Templates introduce inter-mediary Disruption Fallbacks in order tomake more remote the likelihood that aCalculation Agent Determination actually willbe needed, it ultimately is necessary to rely onCalculation Agent Determination forvaluation when no other attempt to derive arate source has succeeded. Accordingly, the


2004 Templates retain this as the finalDisruption Fallback.

Limiting the Deferral Period or theMaximum Days of PostponementA new term, Cumulative Events, eliminates thepossibility that valuation could be deferred orpostponed for unreasonably long periods oftime by the interaction or overlapping of theDeferral Period for Unscheduled Holiday andthe Maximum Days of Postponement. TheCumulative Events paragraph operates to limitthe amount of time that valuation may bedeferred or postponed under such circum-stances to a maximum of 14 calendar days.

The EMTA Latin America confirmationtemplates introduced this paragraph, and itis used in the 2004 Templates with someadditional language to make a clarificationconsistent with its operation in the LatinAmerica templates. For purposes of theoperation of Cumulative Events, this addedlanguage clarifies that the transaction will bevalued not later than the day after 14 calendardays have lapsed if the Unscheduled Holidayor Price Source Disruption is continuing onthat day. The Unscheduled Holiday or PriceSource Disruption is treated as notcontinuing on any day that is a weekend dayor otherwise is not a scheduled Business Day

(e.g., a national holiday). In such a case,valuation of the transaction will be furtherpostponed or deferred until Monday or thenext Business Day (or day that would havebeen a Business Day but for an UnscheduledHoliday). In addition, it should be noted thatthe Cumulative Events paragraph will notoperate to limit the application of FallbackSurvey Valuation Postponement. That is,valuation may be postponed for up to anadditional three consecutive polling daysbeyond the 14 calendar days of a DeferralPeriod or the Maximum Days of Postponement,despite the proscription contained in theCumulative Events paragraph.2

Specifying the Maximum Daysof PostponementAs noted above, the 2004 Templates also incor-porate the new term, Maximum Days ofPostponement, for purposes of ValuationPostponement. This is the same number of cal-endar days as the Deferral Period in order toachieve consistent treatment in the time peri-ods for deferral or postponement of a contractfollowing occurrence of either an UnscheduledHoliday or a Price Source Disruption. TheMaximum Days of Postponement operates tolimit the number of days valuation of a contractwill be deferred following the occurrence of aPrice Source Disruption.


2 To illustrate, if a Price Source Disruption occurs on September 1st (Monday in the local market) and an Unscheduled Holiday occurs onSeptember 10th (Wednesday), Cumulative Events ensures that deferral/postponement of valuation is limited to September 15th(Monday). The SFEMC will attempt the Survey on September 15th and, if it fails on September 15th due to insufficient responses, will re-attempt the Survey on September 16th and September 17th. Valuation of non-deliverable FX contracts with an original ScheduledValuation Date of September 1st may be postponed to no later than September 17th. If the Survey fails on September 17th, the nextapplicable Disruption Fallback will apply. This example assumes that September 15, 16, and 17 would have been Business Days in thelocal market but for a continuing Unscheduled Holiday.

Specifying the Valuation CityAll of the 2004 Templates, with the exceptionof the IDR Template, refer exclusively to thelocal currency market to determine whether itis a Business Day for Valuation Date purposes.Thus, the 2004 Templates specify a ValuationCity of Beijing for CNY, Mumbai for INR, Seoulfor KRW, Manila for PHP, and Taipei for TWD,which is consistent with current market prac-tice in Asia. For IDR, however, market practiceis to observe holidays in both Jakarta andSingapore, given the importance of theSingapore-based trading community to theoffshore market, and both are specified asValuation Cities in the 2004 IDR Template.

EndnotesThe 2004 Templates include endnotes thatincorporate references to the newMethodologies. Also provided is an optionalprovision that dealers who participate in therelevant SFEMC Indicative Survey may includeat their discretion, to alert counterparties tothe possibility that their rate quotation as aSurvey Participant for any Valuation Date mayaffect the calculation of the Settlement Ratefor the specific non-deliverable FX contract.

Revisions to Annex A RateSource DefinitionsTogether with the publication of the 2004Templates and the related Methodologies,ISDA, EMTA, and the FXC have adopted revi-sions to Annex A of the 1998 Definitions, inorder to add a new SFEMC Indicative SurveyRate definition for each currency and to makecertain other revisions. Annex A now includesrate source definitions for the new SFEMC

Indicative Survey Rate for each Asian currency:

(1) CNY - SFEMC CNY INDICATIVE SURVEYRATE or CNY02,

(2) IDR - SFEMC IDR INDICATIVE SURVEYRATE or IDR02,

(3) INR - SFEMC INR INDICATIVE SURVEYRATE or INR02,

(4) KRW - SFEMC KRW INDICATIVE SURVEYRATE or KRW04,

(5) PHP - SFEMC PHP INDICATIVE SURVEYRATE or PHP05, and

(6) TWD - SFEMC TWD INDICATIVE SURVEYRATE or TWD04.

They each contemplate a rate published bythe SFEMC based on bid and offer quotessolicited from dealers in the offshore marketsfor the relevant currency and are pegged tothe underlying Methodology (see below).

In addition to the above amendments, anew rate source definition for IDR has beenadded to Annex A. Previously, Annex A had norate source definition for IDR, and the marketby informal consensus referred to a ratereported by the Association of Banks inSingapore (derived from a poll of offshorebanks based on their perception of onshorerates) as the primary fixing rate for IDR. This rateis now formally included in Annex A as IDR ABSor IDR01 and is used as the Primary SettlementRate Option in the new IDR 2004 Template.

Second, the TWD Rate Source definitionsin Annex A (TWD Telerate 6161 or TWD01 andTWD TAIFX1 or TWD03) have been revised topermit a limited delay in reporting the spot


rate of the first trade that takes place throughthe Taipei Forex Inc. without triggering a PriceSource Disruption. The first trade usually takesplace through Taipei Forex Inc. at 11 a.m.Taipei time, and its spot rate is posted in thefirst 15-minute segment. However, the firsttrade could take place and its spot rate couldbe posted at a later 15-minute interval. The2001 TWD Template treated failure to reportthe spot rate of the first trade by 11 a.m. Taipeitime as a Price Source Disruption but alsoprovided, in the first Disruption Fallback, thatthe first spot rate posted at any succeeding15-minute interval after 11 a.m., up to andincluding 12 Noon Taipei time, would be usedto value the transaction. The 2004 Templateseliminate this provision as the first DisruptionFallback and no longer treat delayed reportingof the spot rate as a Price Source Disruption.Instead, Annex A’s TWD Rate SourceDefinitions incorporate the possibility ofpublication of the first spot rate in any 15-minuteinterval between 11 a.m. and 12 Noon Taipeitime. 12 Noon Taipei time was deemed to bean appropriate cut-off point before resortingto the SFEMC TWD Indicative Survey Rate,because failure of a trade to take placethrough Taipei Forex Inc. by this time wouldindicate a disruption in the local market.

SFEMC Indicative SurveyMethodologyThe Methodology related to each of the 2004Templates is the same, with one exception forINR noted below, in order to both reflect andpromote a consistent approach to valuationof Asia non-deliverable FX currencies in theevent of local market closures or disruptions.

The Methodologies require the polling tocommence for the SFEMC Indicative SurveyRate after any 14-day Deferral Period or afterthe Maximum Days of Postponement havelapsed. SFEMC (through a service provider)will poll offshore financial institutions that areactive participants in the relevant currencymarket and included in a list of ParticipatingBanks published on the SFEMC’s website.Although multiple offices of financial institu-tions in different regions will be included inthe poll, only one office of each financial insti-tution (the first to submit a quote) will beincluded as a Participating Bank in eachIndicative Survey. The Indicative Survey is lim-ited to offshore offices of Participating Banksin order to increase the chances of receivingreliable rate quotes under adverse marketconditions that can impede the ability of on-shore offices to provide them.

As an example of the way theMethodologies work, to generate a ratequotation for the KRW Indicative Survey,Participating Banks will be asked to providetheir reasonable judgment of what is (or, inthe case of an Unscheduled Holiday, wouldbe) the current prevailing free market KRW spotrate (bid-offer pair) for a standard size KRW/U.S.Dollar wholesale financial transaction for same-day settlement in the Seoul marketplace onthe Valuation Date. In arriving at thisindicative quotation, Participating Banks areasked to consider all relevant available rates,whether expressed or implied, as well as thehistorical relationships between such ratesand the free market KRW/USD wholesalefinancial spot rate. Listed below are some ofthe types of rates that may be taken into


consideration in the determination of thisindicative rate:

� the spot rate(s) implied in the offshorenon-deliverable foreign exchange marketfor KRW/U.S. Dollar transactions;

� the spot rate implied by any other financialmarket transactions (to the extent openfor business);

� the spot rate used in connection with anycommercial transactions for goods orservices from offshore suppliers andproviders;

� any existing rate for trade finance transac-tions; and

� any other existing, unofficial rate forKRW/U.S. Dollar transactions (commer-cial or otherwise).

The factors are intended to be non-exclusivefactors that could, in the dealer’s discretionunder the prevailing circumstances, be takeninto consideration in arriving at its ratequotation.

For all of the Asian currencies except INR,the Indicative Survey will commence at 11 a.m.Singapore time (or as soon as practicablethereafter) through an automated process bywhich Survey Participants will submit quotes.To better accommodate the opening of themarket in India, the Indicative Survey willcommence at 12 Noon Singapore time (or assoon as practicable thereafter) for the INR.The SFEMC, ABS, and Telerate will publish ontheir websites the SFEMC Indicative SurveyRate at 3:30 p.m. Singapore time (or as soonas practicable thereafter).

The SFEMC Indicative Survey Rate will bederived by averaging the mid-point of each bid-offer pair, with highs and lows discardedaccording to the Methodology, resulting in asingle Settlement Rate for all contracts with thatValuation Date. A minimum of five responseswas deemed prudent to ensure the integrity ofthe SFEMC Indicative Survey Rate while alsorecognizing that, compared to non-deliverableFX markets in other regions such as LatinAmerica, the Asia currency non-deliverable FXmarkets are smaller and involve fewerparticipants. To further ensure the integrity ofthe Indicative Survey and to increasetransparency to the market, SFEMC will publishindividual rate quotations comprising surveyresponses the Business Day followingpublication of the SFEMC Indicative SurveyRate. Individual rate quotations (with attributionto the quoting dealers) that are subsequentlypublished will be stale information and notrepresentative of an actual dealing rate by thetime they are published. This practice followsthat of EMTA in its administration of industryand indicative surveys, and experience hasindicated that this practice confers significantbenefit on the marketplace by directlypromoting transparency.

The SFEMC will discontinue the IndicativeSurvey when the primary rate source againbecomes available or when, for threeconsecutive polling days, no SFEMC IndicativeSurvey Rate is obtained due to InsufficientResponses. The SFEMC retains discretion tocontinue or re-initiate the Indicative Surveybased on its judgment of market conditions atthe time. The Methodology addressessituations in which the SFEMC Indicative



Survey Rate has successfully commenced andbeen conducted for some period of time, buthas begun to fail. Abandonment of theIndicative Survey due to InsufficientResponses from Survey Participants wouldsignal a lack of need of such institutions for acontinuing rate quotation, due to naturalattrition in the marketplace as contractsmature or are settled bilaterally by marketparticipants. Nonetheless, the mechanics of

the Indicative Survey are structured to ensurethat polling can continue and a rate can bequoted for long periods of time during marketdisruption (and theoretically indefinitely) if theparameters of the Methodology can beobserved. In addition, the SFEMC hasdiscretion to make appropriate changes to theMethodology to ensure its continuedoperation and integrity.


Appendix A – Chinese Renminbi2004 Template TermsAnnex A Rate Source DefinitionsSFEMC Indicative Survey Methodology

2004 SFEMC, EMTA & FXC Template Termsfor CNY/USD Non-Deliverable FX Transaction

General Terms:

Trade Date:

[Date of Annex A]1:

Reference Currency: CNY

[Notional Amount]2:

[Forward Rate]2:

[Reference CurrencyNotional Amount]2:

Reference Currency Buyer:

Reference Currency Seller:

Settlement Currency: U.S. Dollars

Settlement Date: [DATE CERTAIN], provided, however, that if the Scheduled Valuation Date isadjusted in accordance with the Following Business Day Convention, then theSettlement Date shall be as soon as practicable after the Valuation Date, but inno event later than two Business Days after such date.

Settlement: Non-Deliverable

Settlement Rate Option: CNY SAEC (CNY01)3

Valuation Date: [DATE CERTAIN] (“Scheduled Valuation Date”), subject to adjustment in accordance with the Preceding Business Day Convention; and in theevent of an Unscheduled Holiday, subject to adjustment in accordancewith the Following Business Day Convention.

Disruption Events:

Price Source Disruption: Applicable

Disruption Fallbacks:

1. Valuation Postponement

2. Fallback Reference Price: SFEMC CNY Indicative Survey Rate (CNY02)4,5

3. Fallback Survey ValuationPostponement

4. Calculation AgentDetermination ofSettlement Rate

Other Terms:

“Unscheduled Holiday”: “Unscheduled Holiday” means that a day is not a Business Day and the market wasnot aware of such fact (by means of a public announcement or by referenceto other publicly available information) until a time later than 9:00 a.m. local timein the Principal Financial Center(s) of the Reference Currency two Business Daysprior to the Scheduled Valuation Date.

“Deferral Period” for In the event the Scheduled Valuation Date becomes subject to the Following Unscheduled Holiday: Business Day Convention, and if the Valuation Date has not occurred on or

before the 14th consecutive day after the Scheduled Valuation Date (any suchperiod being a “Deferral Period”), then the next day after the Deferral Period thatwould have been a Business Day but for the Unscheduled Holiday, shall bedeemed to be the Valuation Date.

“Valuation Postponement” “Valuation Postponement” means, for purposes of obtaining a Settlement Rate,for Price Source Disruption: that the Spot Rate will be determined on the Business Day first succeeding the

day on which the Price Source Disruption ceases to exist, unless the Price SourceDisruption continues to exist (measured from the date that, but for theoccurrence of the Price Source Disruption, would have been the Valuation Date)for a consecutive number of calendar days equal to the Maximum Days ofPostponement. In such event, the Spot Rate will be determined on the nextBusiness Day after the Maximum Days of Postponement in accordance with thenext applicable Disruption Fallback.

“Fallback Survey Valuation “Fallback Survey Valuation Postponement” means that, in the event that the Postponement”: Fallback Reference Price is not available on or before the 3rd Business Day (or

day that would have been a Business Day but for an Unscheduled Holiday)succeeding the end of either (i) Valuation Postponement for Price SourceDisruption, (ii) Deferral Period for Unscheduled Holiday, or (iii) CumulativeEvents, then the Settlement Rate will be determined in accordance with the nextapplicable Disruption Fallback on such day. For the avoidance of doubt,Cumulative Events, if applicable, does not preclude postponement of valuationin accordance with this provision.



Cumulative Events: Except as provided below, in no event shall the total number of consecutivecalendar days during which either (i) valuation is deferred due to anUnscheduled Holiday, or (ii) a Valuation Postponement shall occur (or anycombination of (i) and (ii)), exceed 14 consecutive calendar days in the aggregate.Accordingly, (x) if, upon the lapse of any such 14 day period, an UnscheduledHoliday shall have occurred or be continuing on the day following such periodthat otherwise would have been a Business Day, then such day shall be deemedto be a Valuation Date, and (y) if, upon the lapse of any such 14 day period, aPrice Source Disruption shall have occurred or be continuing on the day followingsuch period on which the Spot Rate otherwise would be determined, thenValuation Postponement shall not apply and the Spot Rate shall be determinedin accordance with the next Disruption Fallback.

Maximum Days of Postponement: 14 calendar days

Relevant City for Business Dayfor Valuation Date: Beijing

Relevant City for Business Dayfor Settlement Date: New York

Calculation Agent:6

ENDNOTES

1. Include only if parties wish to modify the presumption that Annex A is incorporated as amended through the Trade Date.

2. Parties must specify either (a) a Notional Amount and a Reference Currency Notional Amount or (b) a Forward Rate and either aNotional Amount or a Reference Currency Notional Amount.

3. The CNY SAEC (CNY01) Rate is published at approximately 5:00 p.m. Beijing time on the Valuation Date.

4. The SFEMC CNY Indicative Survey Rate is determined pursuant to the SFEMC CNY Indicative Survey Rate Methodology datedDecember 1, 2004.

5. A party may wish to include the following additional provision if such party is or may be a participant in the SFEMC CNY IndicativeSurvey:

[Quoting Dealer Disclaimer:]

The parties acknowledge that one or both parties to this Transaction acting directly or through a branch or an affiliate may be requestedto provide a quotation or quotations from time to time for the purpose of determining the SFEMC CNY Indicative Survey Rate and suchquotation may affect, materially or otherwise, the settlement of the Transaction.

6. The following may be applicable for inter-dealer trades where parties agree to be Joint Calculation Agents:

Calculation Agents: Party A and Party B

If the parties are unable to agree on a determination within one Business Day, each party agrees to be bound by the determination ofan independent leading dealer in Reference Currency/Settlement Currency Transactions not located in the Reference Currency jurisdic-tion (“independent leading dealer”), mutually selected by the parties, who shall act as the substitute Calculation Agent, with the feesand expenses of such substitute Calculation Agent (if any) to be met equally by the parties. If the parties are unable to agree on an inde-pendent leading dealer to act as substitute Calculation Agent, each party shall select an independent leading dealer and such inde-pendent dealers shall agree on an independent third party who shall be deemed to be the substitute Calculation Agent.

Effective as of December 1, 2004, Annex A ofthe 1998 FX and Currency Option Definitions(the “1998 Definitions”) is amended to add anew section, Section 4.5(a)(i)(B), as follows:

(B) “SFEMC CNY INDICATIVE SURVEY RATE”or “CNY02” each means that the SpotRate for a Rate Calculation Date will bethe Chinese Renminbi/U.S. DollarSpecified Rate for U.S. Dollars, expressedas the amount of Chinese Renminbi perone U.S. Dollar, for settlement in twoBusiness Days, as published on SFEMC’swebsite (www.sfemc.org) at approximately3:30 p.m. (Singapore time), or as soonthereafter as practicable, on such RateCalculation Date. The Spot Rate will becalculated by SFEMC (or a serviceprovider SFEMC may select in its sole dis-cretion) pursuant to the SFEMC CNYIndicative Survey Methodology (whichmeans a methodology, dated as ofDecember 1, 2004, as amended fromtime to time, for a centralized industry-wide survey of financial institutions thatare active participants in the ChineseRenminbi/U.S. Dollar markets for the pur-pose of determining the SFEMC CNYIndicative Survey Rate).

Practitioner’s Note:� Parties that specify in confirmations that a

particular version of Annex A applies totheir trades should reference Annex A effec-tive as of December 1, 2004, if they desireto incorporate the new Chinese Renminbirate source definition into their trades. Ifparties do not specify in their confirmationsa particular version of Annex A, the aboveChinese Renminbi rate source definitionwill apply to trades that incorporate the1998 Definitions and have a trade date onor after December 1, 2004.

Amended Chinese Renminbi Rate Source Definition



Singapore Foreign Exchange Market Committee (“SFEMC”)CNY Indicative Survey Rate MethodologyDated as of December 1, 2004

Capitalized terms not defined below aredefined in the 1998 FX and Currency OptionDefinitions as published by the InternationalSwaps and Derivatives Association, EMTA,Inc. and the Foreign Exchange Committee, orin the 2004 SFEMC, EMTA & FXC TemplateTerms for CNY/USD Non-Deliverable FXTransaction.

I. The SFEMC CNY Indicative Survey� Commencing the CNY Indicative Survey:

SFEMC (itself or through a service providerSFEMC will select in its sole discretion) willconduct a survey of financial institutions forthe purpose of determining the SFEMCCNY Indicative Survey Rate, beginning at11:00 a.m. (Singapore time) or as soonthereafter as practicable on a Business Dayin Beijing (or a calendar day that wouldhave been a Business Day but for anUnscheduled Holiday), following any 14calendar day period during which valuationis deferred or postponed (or both).

� Polled Banks: For purposes of determin-ing the CNY Indicative Survey Rate for aValuation Date, SFEMC (itself or through aservice provider) will survey financialinstitutions that are active participants inthe CNY/U.S. Dollar market (each, a“Participating Bank”) and included in a cur-rent list of Participating Banks publishedon the SFEMC’s website (www.sfemc.org)(the “Publication Site”). Only one office ofeach financial institution will be included

as a Participating Bank in each CNYIndicative Survey.

� Survey Question: Each ParticipatingBank will be asked to provide its reason-able judgment of what is (or, in the case ofan Unscheduled Holiday, would be) thecurrent prevailing free market CNY spotrate (bid-offer pair) for a standard sizeCNY/U.S. Dollar wholesale financialtransaction for same-day settlement in theBeijing marketplace on the ValuationDate. In arriving at this indicative quota-tion, each Participating Bank will be directedto take such factors into consideration as itdeems appropriate, which factors may(but need not) include any or all of the fol-lowing: the spot rate(s) implied in the off-shore non-deliverable foreign exchangemarket for CNY/U.S. Dollar transactions;the spot rate implied by any other finan-cial market transactions (to the extent thatsuch other financial markets are open forbusiness); the spot rate used in connec-tion with any commercial transactions forgoods or services from offshore suppliersor providers; any existing rate for tradefinance transactions; and any other exist-ing unofficial rate for CNY/U.S. Dollartransactions (commercial or otherwise).

II. Use of Survey Results� SFEMC (itself or through a service

provider) will determine the mid-point ofeach bid-offer pair. The arithmetic meanof the mid-points will be used to deter-

mine the CNY Indicative Survey Rate,rounded to the fourth decimal point asdescribed below.

� If the CNY Indicative Survey results in 21 ormore responses, then the 4 highest and 4lowest mid-points will be eliminated, andthe arithmetic mean of the remaining mid-points will be computed and will consti-tute the CNY Indicative Survey Rate forsuch Valuation Date. For purposes of elim-inating the 4 highest and 4 lowest mid-points, if more than 4 mid-points have thesame highest value or lowest value, thenonly 4 such mid-points will be eliminated.

� If the CNY Indicative Survey results in lessthan 21 but 11 or more responses, then the2 highest and 2 lowest mid-points will beeliminated, and the arithmetic mean of theremaining mid-points will be computedand will constitute the CNY IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the 2 highest and2 lowest mid-points, if more than 2 mid-points have the same highest value orlowest value, then only 2 such mid-pointswill be eliminated.

� If the CNY Indicative Survey results in lessthan 11 but 8 or more responses, then thehighest and the lowest mid-points will beeliminated and the arithmetic mean of theremaining mid-points will be computedand will constitute the CNY IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the highest andlowest mid-points, if more than 1 mid-pointhas the same highest value or lowest value,then only 1 such mid-point will be eliminated.

� If the CNY Indicative Survey results inless than 8 but 5 or more responses, thenno mid-points will be eliminated and thearithmetic mean of all mid-points will becomputed and will constitute the CNYIndicative Survey Rate for such ValuationDate.

� Quotes will be provided to the fourthdecimal point (e.g., 1.0000).

III. Insufficient Responses� If the CNY Indicative Survey results in less

than 5 responses from Participating Banks(“Insufficient Responses”), no CNYIndicative Survey Rate will be available forthe relevant Valuation Date. The next CNYIndicative Survey will take place on thenext succeeding Business Day in Beijing(or calendar day that would have been aBusiness Day but for an UnscheduledHoliday), subject to Section V below.

IV. CNY Indicative Survey RatePublication

� The CNY Indicative Survey Rate will bepublished on the Publication Site at3:30 p.m. (Singapore time), or as soonthereafter as practicable.

� As soon as it is determined that the CNYIndicative Survey will result in InsufficientResponses, a notice that no CNYIndicative Survey Rate is available for theValuation Date will be published on thePublication Site.

� The response of each Participating Bankto the Indicative Survey (bid-offer pair)will be available on the Publication Site at



9:00 a.m. (Singapore time) on the firstBusiness Day in Beijing (or calendar daythat would have been a Business Day butfor an Unscheduled Holiday) followingthe Business Day on which the relevantCNY Indicative Survey Rate is published,or as soon thereafter as practicable.

V. Discontinuing the CNYIndicative Survey

� The CNY Indicative Survey will be discon-tinued (i) on the calendar day first follow-ing the Business Day in Beijing on whichthe CNY SAEC (CNY 01) is available for thedetermination of a Settlement Rate, or (ii)on the calendar day first following pollingfor the CNY Indicative Survey that resultsin Insufficient Responses for three consec-utive polling days. Notwithstanding theforegoing, nothing herein will be con-strued to prevent SFEMC from continuingor re-initiating the CNY Indicative Surveyat an appropriate time.

� A notice that the CNY Indicative Surveyhas been discontinued will be publishedon the Publication Site.

VI.Amendments to the Methodology� SFEMC may, in its discretion, from time to

time, make such administrative, proce-dural or other modifications to thisMethodology as are appropriate toensure the continued operation andintegrity of the CNY Indicative Survey.

VII. Disclaimer� SFEMC (and any service provider SFEMC

may select) disclaim liability for the CNYIndicative Survey Rate, and no representa-tion or warranty, express or implied, ismade concerning the CNY IndicativeSurvey Rate (including, without limitation,the methodology for determining theCNY Indicative Survey Rate and its suit-ability for any particular use).

2004 SFEMC, EMTA & FXC Template Termsfor IDR/USD Non-Deliverable FX Transaction

General Terms:

Trade Date:

[Date of Annex A]1:

Reference Currency: IDR

[Notional Amount]2:

[Forward Rate]2:





Settlement Date: [DATE CERTAIN], provided, however, that if the Scheduled Valuation Date isadjusted in accordance with the Following Business Day Convention, then theSettlement Date shall be as soon as practicable after the Valuation Date, butin no event later than two Business Days after such date.


Settlement Rate Option: IDR ABS (IDR01)3

Valuation Date: [DATE CERTAIN] (“Scheduled Valuation Date”), subject to adjustment in accordancewith the Preceding Business Day Convention; and in the event of an Unscheduled Holiday, subject to adjustment in accordance with the Following Business Day Convention.

Appendix B – Indonesian Rupiah2004 Template TermsAnnex A Rate Source DefinitionsSFEMC Indicative Survey Methodology


Disruption Events:




2. Fallback Reference Price: SFEMC IDR Indicative Survey Rate (IDR02)4,5


4. Calculation Agent Determination of Settlement Rate

Other Terms:

“Unscheduled Holiday”: “Unscheduled Holiday” means that a day is not a Business Day and the marketwas not aware of such fact (by means of a public announcement or by referenceto other publicly available information) until a time later than 9:00 a.m. localtime in the Principal Financial Center(s) of the Reference Currency two Business Days prior to the Scheduled Valuation Date.

“Deferral Period” for In the event the Scheduled Valuation Date becomes subject to the FollowingUnscheduled Holiday: Business Day Convention, and if the Valuation Date has not occurred on or


“Valuation Postponement” “Valuation Postponement” means, for purposes of obtaining a Settlement Rate, for Price Source Disruption: that the Spot Rate will be determined on the Business Day first succeeding the

day on which the Price Source Disruption ceases to exist, unless the Price SourceDisruption continues to exist (measured from the date that, but for the occurrenceof the Price Source Disruption, would have been the Valuation Date) for aconsecutive number of calendar days equal to the Maximum Days ofPostponement. In such event, the Spot Rate will be determined on the nextBusiness Day after the Maximum Days of Postponement in accordance with thenext applicable Disruption Fallback.

“Fallback Survey Valuation “Fallback Survey Valuation Postponement” means that, in the event that the Postponement”: Fallback Reference Price is not available on or before the 3rd Business Day (or day

that would have been a Business Day but for an Unscheduled Holiday) succeeding the end of either (i) Valuation Postponement for Price Source Disruption, (ii)Deferral Period for Unscheduled Holiday, or (iii) Cumulative Events, then theSettlement Rate will be determined in accordance with the next applicable DisruptionFallback on such day. For the avoidance of doubt, Cumulative Events, if applicable,does not preclude postponement of valuation in accordance with this provision.



Cumulative Events: Except as provided below, in no event shall the total number of consecutivecalendar days during which either (i) valuation is deferred due to anUnscheduled Holiday, or (ii) a Valuation Postponement shall occur (or anycombination of (i) and (ii)), exceed 14 consecutive calendar days in the aggregate.Accordingly, (x) if, upon the lapse of any such 14 day period, an Unscheduled Holiday shall have occurred or be continuing on the day following such periodthat otherwise would have been a Business Day, then such day shall be deemedto be a Valuation Date, and (y) if, upon the lapse of any such 14 day period, aPrice Source Disruption shall have occurred or be continuing on the day followingsuch period on which the Spot Rate otherwise would be determined, thenValuation Postponement shall not apply and the Spot Rate shall be determinedin accordance with the next Disruption Fallback.


Relevant City for Business Dayfor Valuation Date: Jakarta and Singapore


Calculation Agent:6

ENDNOTES



3. The IDR ABS (IDR01) Rate is published at approximately 11:00 a.m. Singapore time on the Valuation Date.

4. The SFEMC IDR Indicative Survey Rate is determined pursuant to the SFEMC IDR Indicative Survey Rate Methodology datedDecember 1, 2004.

5. A party may wish to include the following additional provision if such party is or may be a participant in the SFEMC IDR IndicativeSurvey:


The parties acknowledge that one or both parties to this Transaction acting directly or through a branch or an affiliate may be requestedto provide a quotation or quotations from time to time for the purpose of determining the SFEMC IDR Indicative Survey Rate and suchquotation may affect, materially or otherwise, the settlement of the Transaction.





Effective as of December 1, 2004, Annex A ofthe 1998 FX and Currency Option Definitions(the “1998 Definitions”) is amended to addnew Sections 4.5(a)(vii)(A) and 4.5(a)(vii)(B) asfollows:

(A) “IDR ABS” or “IDR01” each mean that theSpot Rate for a Rate Calculation Date willbe the Indonesian Rupiah/U.S. Dollarspot rate, expressed as the amount ofIndonesian Rupiah per one U.S. Dollar,for settlement in two Business Days,reported by the Association of Banks inSingapore which appears on the TeleratePage 50157 to the right of the caption“Spot” under the column “IDR” at approx-imately 11:00 a.m., Singapore time on thatRate Calculation Date.

(B) “SFEMC IDR INDICATIVE SURVEY RATE”or “IDR02” each means that the Spot Ratefor a Rate Calculation Date will be theIndonesian Rupiah/U.S. Dollar SpecifiedRate for U.S. Dollars, expressed as theamount of Indonesian Rupiah per oneU.S. Dollar, for settlement in two BusinessDays, as published on SFEMC’s website(www.sfemc.org) at approximately 3:30 p.m.,Singapore time, or as soon thereafter aspracticable, on such Rate CalculationDate. The Spot Rate will be calculated bySFEMC (or a service provider SFEMC mayselect in its sole discretion) pursuant tothe SFEMC IDR Indicative SurveyMethodology (which means a methodol-ogy, dated as of December 1, 2004, asamended from time to time, for a central-

ized industry-wide survey of financialinstitutions that are active participants inthe Indonesian Rupiah/U.S. Dollar mar-kets for the purpose of determining theSFEMC IDR Indicative Survey Rate).

Practitioner’s Notes:� “IDR ABS” or “IDR01” refer to a rate reported

by the Association of Banks in Singapore,which is derived from a poll of offshorebanks based of their perception of onshorerates.

� Parties that specify in confirmations that aparticular version of Annex A applies to theirtrades should reference Annex A effective asof December 1, 2004, if they desire to incor-porate any or all of the new IndonesianRupiah rate source definitions into theirtrades. If parties do not specify in their con-firmations a particular version of Annex A,the above Indonesian Rupiah rate sourcedefinitions will apply to trades that incorpo-rate the 1998 Definitions and have a tradedate on or after December 1, 2004.

Indonesian Rupiah Rate Source Definition


Capitalized terms not defined below aredefined in the 1998 FX and Currency OptionDefinitions as published by the InternationalSwaps and Derivatives Association, EMTA,Inc. and the Foreign Exchange Committee, orin the 2004 SFEMC, EMTA & FXC TemplateTerms for IDR/USD Non-Deliverable FXTransaction.

I. The SFEMC IDR Indicative Survey� Commencing the IDR Indicative Survey:

SFEMC (itself or through a serviceprovider SFEMC will select in its sole dis-cretion) will conduct a survey of financialinstitutions for the purpose of determin-ing the SFEMC IDR Indicative Survey Rate,beginning at 11:00 a.m. (Singapore time)or as soon thereafter as practicable on aBusiness Day in both Jakarta andSingapore (or a calendar day that wouldhave been a Business Day but for anUnscheduled Holiday), following any 14calendar day period during which valua-tion is deferred or postponed (or both).

� Polled Banks: For purposes of determin-ing the IDR Indicative Survey Rate for aValuation Date, SFEMC (itself or through aservice provider) will survey financial insti-tutions that are active participants in theIDR/U.S. Dollar market (each, a“Participating Bank”) and included in acurrent list of Participating Banks pub-lished on the SFEMC’s website(www.sfemc.org) (the “Publication Site”).

Only one office of each financial institu-tion will be included as a ParticipatingBank in each IDR Indicative Survey.

� Survey Question: Each Participating Bankwill be asked to provide its reasonablejudgment of what is (or, in the case of anUnscheduled Holiday, would be) the cur-rent prevailing free market IDR spot rate(bid-offer pair) for a standard sizeIDR/U.S. Dollar wholesale financial trans-action for same-day settlement in theJakarta marketplace on the ValuationDate. In arriving at this indicative quota-tion, each Participating Bank will bedirected to take such factors into consid-eration as it deems appropriate, whichfactors may (but need not) include any orall of the following: the spot rate(s)implied in the offshore non-deliverableforeign exchange market for IDR/U.S.Dollar transactions; the spot rate impliedby any other financial market transactions(to the extent that such other financialmarkets are open for business); the spotrate used in connection with any com-mercial transactions for goods or servicesfrom offshore suppliers or providers; anyexisting rate for trade finance transactions;and any other existing unofficial rate forIDR/U.S. Dollar transactions (commercialor otherwise).

Singapore Foreign Exchange Market Committee (“SFEMC”)IDR Indicative Survey Rate MethodologyDated as of December 1, 2004



provider) will determine the mid-point ofeach bid-offer pair. The arithmetic meanof the mid-points will be used to deter-mine the IDR Indicative Survey Rate,rounded to the fourth decimal point asdescribed below.

� If the IDR Indicative Survey results in 21 ormore responses, then the 4 highest and 4lowest mid-points will be eliminated, andthe arithmetic mean of the remaining mid-points will be computed and will consti-tute the IDR Indicative Survey Rate forsuch Valuation Date. For purposes of elim-inating the 4 highest and 4 lowest mid-points, if more than 4 mid-points have thesame highest value or lowest value, thenonly 4 such mid-points will be eliminated.

� If the IDR Indicative Survey results in lessthan 21 but 11 or more responses, then the2 highest and 2 lowest mid-points will beeliminated, and the arithmetic mean ofthe remaining mid-points will be computedand will constitute the IDR IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the 2 highest and2 lowest mid-points, if more than 2 mid-points have the same highest value orlowest value, then only 2 such mid-pointswill be eliminated.

� If the IDR Indicative Survey results in lessthan 11 but 8 or more responses, then thehighest and the lowest mid-points will beeliminated and the arithmetic mean of theremaining mid-points will be computedand will constitute the IDR IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the highest andlowest mid-points, if more than 1 mid-point has the same highest value or lowest

value, then only 1 such mid-point will beeliminated.

� If the IDR Indicative Survey results in lessthan 8 but 5 or more responses, then nomid-points will be eliminated and the arith-metic mean of all mid-points will be com-puted and will constitute the IDR IndicativeSurvey Rate for such Valuation Date.


III. Insufficient Responses� If the IDR Indicative Survey results in less

than 5 responses from Participating Banks(“Insufficient Responses”), no IDRIndicative Survey Rate will be available forthe relevant Valuation Date. The next IDRIndicative Survey will take place on thenext succeeding Business Day in bothJakarta and Singapore (or calendar daythat would have been a Business Day butfor an Unscheduled Holiday), subject toSection V below.

IV. IDR Indicative Survey RatePublication

� The IDR Indicative Survey Rate will bepublished on the Publication Site at3:30 p.m. (Singapore time), or as soonthereafter as practicable.

� As soon as it is determined that the IDRIndicative Survey will result in InsufficientResponses, a notice that no IDRIndicative Survey Rate is available for theValuation Date will be published on thePublication Site.

� The response of each Participating Bankto the Indicative Survey (bid-offer pair)will be available on the Publication Site at


9:00 a.m. (Singapore time) on the firstBusiness Day in both Jakarta andSingapore (or calendar day that wouldhave been a Business Day but for anUnscheduled Holiday) following theBusiness Day on which the relevant IDRIndicative Survey Rate is published, or assoon thereafter as practicable.

V. Discontinuing the IDRIndicative Survey

� The IDR Indicative Survey will be discon-tinued (i) on the calendar day first follow-ing the Business Day in both Jakarta andSingapore on which the IDR ABS (IDR 01)is available for the determination of aSettlement Rate, or (ii) on the calendarday first following polling for the IDRIndicative Survey that results in InsufficientResponses for three consecutive pollingdays. Notwithstanding the foregoing,nothing herein will be construed to pre-vent SFEMC from continuing or re-initiat-ing the IDR Indicative Survey at an appro-priate time.

� A notice that the IDR Indicative Survey hasbeen discontinued will be published onthe Publication Site.

VI. Amendments to the Methodology� SFEMC may, in its discretion, from time to

time, make such administrative, proce-dural or other modifications to thisMethodology as are appropriate toensure the continued operation andintegrity of the IDR Indicative Survey.

VII.Disclaimer� SFEMC (and any service provider SFEMC

may select) disclaim liability for the IDRIndicative Survey Rate, and no representa-tion or warranty, express or implied, ismade concerning the IDR IndicativeSurvey Rate (including, without limitation,the methodology for determining the IDRIndicative Survey Rate and its suitabilityfor any particular use).


Appendix C – Indian Rupee2004 Template TermsAnnex A Rate Source DefinitionsSFEMC Indicative Survey Methodology

2004 SFEMC, EMTA & FXC Template Termsfor INR/USD Non-Deliverable FX Transaction

General Terms:

Trade Date:

[Date of Annex A]1:

Reference Currency: INR

[Notional Amount]2:

[Forward Rate]2:







Settlement Rate Option: INR RBIB (INR01)3

Valuation Date: [DATE CERTAIN] (“Scheduled Valuation Date”), subject to adjustment in accordancewith the Preceding Business Day Convention; and in the event of an UnscheduledHoliday, subject to adjustment in accordance with the Following Business DayConvention.


Disruption Events:




2. Fallback Reference Price: SFEMC INR Indicative Survey Rate (INR02)4,5

3. Fallback SurveyValuation Postponement

4. Calculation Agent Determinationof Settlement Rate

Other Terms:

“Unscheduled Holiday”: “Unscheduled Holiday” means that a day is not a Business Day and the market wasnot aware of such fact (by means of a public announcement or by reference to other publicly available information) until a time later than 9:00 a.m. local time inthe Principal Financial Center(s) of the Reference Currency two Business Days priorto the Scheduled Valuation Date.

“Deferral Period” for In the event the Scheduled Valuation Date becomes subject to the FollowingUnscheduled Holiday: Business Day Convention, and if the Valuation Date has not occurred on or


“Valuation Postponement” “Valuation Postponement” means, for purposes of obtaining a Settlement for Price Source Disruption: Rate, that the Spot Rate will be determined on the Business Day first succeeding

the day on which the Price Source Disruption ceases to exist, unless the PriceSource Disruption continues to exist (measured from the date that, but for theoccurrence of the Price Source Disruption, would have been the Valuation Date) for a consecutive number of calendar days equal to the Maximum Days ofPostponement. In such event, the Spot Rate will be determined on the nextBusiness Day after the Maximum Days of Postponement in accordance with thenext applicable Disruption Fallback.

“Fallback Survey Valuation “Fallback Survey Valuation Postponement” means that, in the event that thePostponement”: Fallback Reference Price is not available on or before the 3rd Business Day (or day

that would have been a Business Day but for an Unscheduled Holiday) succeedingthe end of either (i) Valuation Postponement for Price Source Disruption,(ii) Deferral Period for Unscheduled Holiday, or (iii) Cumulative Events, then theSettlement Rate will be determined in accordance with the next applicableDisruption Fallback on such day. For the avoidance of doubt, CumulativeEvents, if applicable, does not preclude postponement of valuation inaccordance with this provision.


Cumulative Events: Except as provided below, in no event shall the total number of consecutivecalendar days during which either (i) valuation is deferred due to an UnscheduledHoliday, or (ii) a Valuation Postponement shall occur (or any combination of (i) and(ii)), exceed 14 consecutive calendar days in the aggregate. Accordingly, (x) if, uponthe lapse of any such 14 day period, an Unscheduled Holiday shall have occurred orbe continuing on the day following such period that otherwise would have been aBusiness Day, then such day shall be deemed to be a Valuation Date, and (y) if, upon the lapse of any such 14 day period, a Price Source Disruption shall haveoccurred or be continuing on the day following such period on which the Spot Rateotherwise would be determined, then Valuation Postponement shall not apply andthe Spot Rate shall be determined in accordance with the next Disruption Fallback.


Relevant City for Business Dayfor Valuation Date: Mumbai


Calculation Agent:6

ENDNOTES



3. The INR RBIB (INR01) Rate is published at approximately 2:30 p.m. Mumbai time on the Valuation Date.

4. The SFEMC INR Indicative Survey Rate is determined pursuant to the SFEMC INR Indicative Survey Rate Methodology datedDecember 1, 2004.

5. A party may wish to include the following additional provision if such party is or may be a participant in the SFEMC INR IndicativeSurvey:


The parties acknowledge that one or both parties to this Transaction acting directly or through a branch or an affiliate may be requestedto provide a quotation or quotations from time to time for the purpose of determining the SFEMC INR Indicative Survey Rate and suchquotation may affect, materially or otherwise, the settlement of the Transaction.



If the parties are unable to agree on a determination within one Business Day, each party agrees to be bound by the determination ofan independent leading dealer in Reference Currency/Settlement Currency Transactions not located in the Reference Currency juris-diction (“independent leading dealer”), mutually selected by the parties, who shall act as the substitute Calculation Agent, with the feesand expenses of such substitute Calculation Agent (if any) to be met equally by the parties. If the parties are unable to agree on anindependent leading dealer to act as substitute Calculation Agent, each party shall select an independent leading dealer and suchindependent dealers shall agree on an independent third party who shall be deemed to be the substitute Calculation Agent.


Effective as of December 1, 2004, Annex A ofthe 1998 FX and Currency Option Definitions(the “1998 Definitions”) is amended to add anew section, Section 4.5(a)(ii)(B), as follows:

(B) “SFEMC INR INDICATIVE SURVEY RATE”or “INR02” each means that the Spot Ratefor a Rate Calculation Date will be theIndian Rupee/U.S. Dollar Specified Ratefor U.S. Dollars, expressed as the amountof Indian Rupee per one U.S. Dollar, forsettlement in two Business Days, as pub-lished on SFEMC’s website (www.sfemc.org)at approximately 3:30 p.m. (Singaporetime), or as soon thereafter as practicable,on such Rate Calculation Date. The SpotRate will be calculated by SFEMC (or aservice provider SFEMC may select in itssole discretion) pursuant to the SFEMCINR Indicative Survey Methodology(which means a methodology, dated as ofDecember 1, 2004, as amended fromtime to time, for a centralized industry-wide survey of financial institutions thatare active participants in the IndianRupee/U.S. Dollar markets for the pur-pose of determining the SFEMC INRIndicative Survey Rate).


particular version of Annex A applies totheir trades should reference Annex A effec-tive as of December 1, 2004, if they desireto incorporate the new Indian Rupee ratesource definition into their trades. If partiesdo not specify in their confirmations aparticular version of Annex A, the aboveIndian Rupee rate source definition willapply to trades that incorporate the 1998Definitions and have a trade date on orafter December 1, 2004.

Amended Indian Rupee Rate Source Definition


Capitalized terms not defined below aredefined in the 1998 FX and Currency OptionDefinitions as published by the InternationalSwaps and Derivatives Association, EMTA,Inc. and the Foreign Exchange Committee, orin the 2004 SFEMC, EMTA & FXC TemplateTerms for INR/USD Non-Deliverable FXTransaction.

I. The SFEMC INR Indicative Survey� Commencing the INR Indicative Survey:

SFEMC (itself or through a service providerSFEMC will select in its sole discretion) willconduct a survey of financial institutionsfor the purpose of determining the SFEMCINR Indicative Survey Rate, beginning at12:00 Noon (Singapore time) or as soonthereafter as practicable on a Business Dayin Mumbai (or a calendar day that wouldhave been a Business Day but for anUnscheduled Holiday), following any 14calendar day period during which valua-tion is deferred or postponed (or both).

� Polled Banks: For purposes of determin-ing the INR Indicative Survey Rate for aValuation Date, SFEMC (itself or through aservice provider) will survey financial insti-tutions that are active participants in theINR/U.S. Dollar market (each, a“Participating Bank”) and included in acurrent list of Participating Banks pub-lished on the SFEMC’s website(www.sfemc.org) (the “Publication Site”).Only one office of each financial institu-

tion will be included as a ParticipatingBank in each INR Indicative Survey.

� Survey Question: Each Participating Bankwill be asked to provide its reasonablejudgment of what is (or, in the case of anUnscheduled Holiday, would be) the cur-rent prevailing free market INR spot rate(bid-offer pair) for a standard size INR/U.S.Dollar wholesale financial transaction forsame-day settlement in the Mumbai mar-ketplace on the Valuation Date. In arrivingat this indicative quotation, eachParticipating Bank will be directed to takesuch factors into consideration as it deemsappropriate, which factors may (but neednot) include any or all of the following: thespot rate(s) implied in the offshore non-deliverable foreign exchange market forINR/U.S. Dollar transactions; the spot rateimplied by any other financial markettransactions (to the extent that such otherfinancial markets are open for business);the spot rate used in connection with anycommercial transactions for goods orservices from offshore suppliers orproviders; any existing rate for tradefinance transactions; and any other existingunofficial rate for INR/U.S. Dollar transac-tions (commercial or otherwise).



Singapore Foreign Exchange Market Committee (“SFEMC”)INR Indicative Survey Rate MethodologyDated as of December 1, 2004

mine the INR Indicative Survey Rate,rounded to the fourth decimal point asdescribed below.

� If the INR Indicative Survey results in 21 ormore responses, then the 4 highest and 4lowest mid-points will be eliminated, andthe arithmetic mean of the remainingmid-points will be computed and willconstitute the INR Indicative Survey Ratefor such Valuation Date. For purposes ofeliminating the 4 highest and 4 lowestmid-points, if more than 4 mid-pointshave the same highest value or lowestvalue, then only 4 such mid-points will beeliminated.

� If the INR Indicative Survey results in lessthan 21 but 11 or more responses, then the2 highest and 2 lowest mid-points will beeliminated, and the arithmetic mean ofthe remaining mid-points will be computedand will constitute the INR IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the 2 highest and2 lowest mid-points, if more than 2 mid-points have the same highest value orlowest value, then only 2 such mid-pointswill be eliminated.

� If the INR Indicative Survey results in lessthan 11 but 8 or more responses, then thehighest and the lowest mid-points will beeliminated and the arithmetic mean of theremaining mid-points will be computedand will constitute the INR IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the highest andlowest mid-points, if more than 1 mid-point has the same highest value or lowestvalue, then only 1 such mid-point will beeliminated.

� If the INR Indicative Survey results in lessthan 8 but 5 or more responses, then nomid-points will be eliminated and thearithmetic mean of all mid-points will becomputed and will constitute the INRIndicative Survey Rate for such ValuationDate.


III. Insufficient Responses� If the INR Indicative Survey results in less

than 5 responses from Participating Banks(“Insufficient Responses”), no INRIndicative Survey Rate will be available forthe relevant Valuation Date. The next INRIndicative Survey will take place on thenext succeeding Business Day in Mumbai(or calendar day that would have been aBusiness Day but for an UnscheduledHoliday), subject to Section V below.

IV. INR Indicative Survey RatePublication

� The INR Indicative Survey Rate will bepublished on the Publication Site at3:30 p.m. (Singapore time), or as soonthereafter as practicable.

� As soon as it is determined that the INRIndicative Survey will result in InsufficientResponses, a notice that no INR IndicativeSurvey Rate is available for the ValuationDate will be published on the PublicationSite.

� The response of each Participating Bankto the Indicative Survey (bid-offer pair)will be available on the Publication Site at9:00 a.m. (Singapore time) on the first



Business Day in Mumbai (or calendar daythat would have been a Business Day butfor an Unscheduled Holiday) followingthe Business Day on which the relevantINR Indicative Survey Rate is published, oras soon thereafter as practicable.

V. Discontinuing the INRIndicative Survey

� The INR Indicative Survey will be discon-tinued (i) on the calendar day first follow-ing the Business Day in Mumbai on whichthe INR RBIB (INR 01) is available for thedetermination of a Settlement Rate, or (ii)on the calendar day first following pollingfor the INR Indicative Survey that results inInsufficient Responses for three consecu-tive polling days. Notwithstanding theforegoing, nothing herein will be con-strued to prevent SFEMC from continuingor re-initiating the INR Indicative Survey atan appropriate time.

� A notice that the INR Indicative Survey hasbeen discontinued will be published onthe Publication Site.


time, make such administrative, proce-dural or other modifications to thisMethodology as are appropriate toensure the continued operation andintegrity of the INR Indicative Survey.


may select) disclaim liability for the INRIndicative Survey Rate, and no representa-tion or warranty, express or implied, ismade concerning the INR IndicativeSurvey Rate (including, without limitation,the methodology for determining the INRIndicative Survey Rate and its suitabilityfor any particular use).


Appendix D – Korean Won2004 Template TermsAnnex A Rate Source DefinitionsSFEMC Indicative Survey Methodology

2004 SFEMC, EMTA & FXC Template Termsfor KRW/USD Non-Deliverable FX Transaction

General Terms:

Trade Date:

[Date of Annex A]1:

Reference Currency: KRW

[Notional Amount]2:

[Forward Rate]2:







Settlement Rate Option: KRW KFTC18 (KRW02)3

Valuation Date: [DATE CERTAIN] (“Scheduled Valuation Date”), subject to adjustment in accordancewith the Preceding Business Day Convention; and in the event of an UnscheduledHoliday, subject to adjustment in accordance with the Following BusinessDay Convention.


Disruption Events:




2. Fallback Reference Price: SFEMC KRW Indicative Survey Rate (KRW04)4,5


4. Calculation AgentDetermination of Settlement Rate

Other Terms:

“Unscheduled Holiday”: “Unscheduled Holiday” means that a day is not a Business Day and the marketwas not aware of such fact (by means of a public announcement or by referenceto other publicly available information) until a time later than 9:00 a.m. local time in the Principal Financial Center(s) of the Reference Currency two Business Days prior to the Scheduled Valuation Date.


before the 14th consecutive day after the Scheduled Valuation Date (any such period being a “Deferral Period”), then the next day after the Deferral Period thatwould have been a Business Day but for the Unscheduled Holiday, shall be deemed to be the Valuation Date.

“Valuation Postponement” “Valuation Postponement” means, for purposes of obtaining a Settlement Rate, that for Price Source Disruption: the Spot Rate will be determined on the Business Day first succeeding the day on

which the Price Source Disruption ceases to exist, unless the Price Source Disruption continues to exist (measured from the date that, but for the occurrenceof the Price Source Disruption, would have been the Valuation Date) for aconsecutive number of calendar days equal to the Maximum Days of Postponement.In such event, the Spot Rate will be determined on the next Business Day after the Maximum Days of Postponement in accordance with the next applicableDisruption Fallback.

“Fallback Survey “Fallback Survey Valuation Postponement” means that, in the event that the Valuation Postponement”: Fallback Reference Price is not available on or before the 3rd Business Day (or day

that would have been a Business Day but for an Unscheduled Holiday) succeeding the end of either (i) Valuation Postponement for Price Source Disruption, (ii) Deferral Period for Unscheduled Holiday, or (iii) Cumulative Events, then theSettlement Rate will be determined in accordance with the next applicableDisruption Fallback on such day. For the avoidance of doubt, Cumulative Events, ifapplicable, does not preclude postponement of valuation in accordance with this provision.


Cumulative Events: Except as provided below, in no event shall the total number of consecutivecalendar days during which either (i) valuation is deferred due to an UnscheduledHoliday, or (ii) a Valuation Postponement shall occur (or any combination of (i) and(ii)), exceed 14 consecutive calendar days in the aggregate. Accordingly, (x) if, uponthe lapse of any such 14 day period, an Unscheduled Holiday shall have occurred orbe continuing on the day following such period that otherwise would have been aBusiness Day, then such day shall be deemed to be a Valuation Date, and (y) if, upon the lapse of any such 14 day period, a Price Source Disruption shall have occurred or be continuing on the day following such period on which the Spot Rateotherwise would be determined, then Valuation Postponement shall not apply andthe Spot Rate shall be determined in accordance with the next Disruption Fallback.


Relevant City for Business Dayfor Valuation Date: Seoul


Calculation Agent:6

ENDNOTES



3. The KRW KFTC18 (KRW02) Rate is published at approximately 5:30 p.m. Seoul time on the Valuation Date.

4. The SFEMC KRW Indicative Survey Rate is determined pursuant to the SFEMC KRW Indicative Survey Rate Methodology datedDecember 1, 2004.

5. A party may wish to include the following additional provision if such party is or may be a participant in the SFEMC KRW IndicativeSurvey:


The parties acknowledge that one or both parties to this Transaction acting directly or through a branch or an affiliate may be requestedto provide a quotation or quotations from time to time for the purpose of determining the SFEMC KRW Indicative Survey Rate and suchquotation may affect, materially or otherwise, the settlement of the Transaction.





Effective as of December 1, 2004, Annex A ofthe 1998 FX and Currency Option Definitions(the “1998 Definitions”) is amended to add anew section, Section 4.5(a)(iii)(C), as follows:

(C) “SFEMC KRW INDICATIVE SURVEY RATE”or “KRW04” each means that the SpotRate for a Rate Calculation Date will bethe Korean Won/U.S. Dollar SpecifiedRate for U.S. Dollars, expressed as theamount of Korean Won per one U.S.Dollar, for settlement in two BusinessDays, as published on SFEMC’s website(www.sfemc.org) at approximately 3:30 p.m.,Singapore time, or as soon thereafter aspracticable, on such Rate CalculationDate. The Spot Rate will be calculated bySFEMC (or a service provider SFEMC mayselect in its sole discretion) pursuant tothe SFEMC KRW Indicative SurveyMethodology (which means a methodol-ogy, dated as of December 1, 2004, asamended from time to time, for a central-ized industry-wide survey of financialinstitutions that are active participants inthe Korean Won/U.S. Dollar markets forthe purpose of determining the SFEMCKRW Indicative Survey Rate).


particular version of Annex A applies totheir trades should reference Annex A effec-tive as of December 1, 2004, if they desireto incorporate the new Korean Won ratesource definition into their trades. If partiesdo not specify in their confirmations a par-ticular version of Annex A, the aboveKorean Won rate source definition willapply to trades that incorporate the 1998Definitions and have a trade date on orafter December 1, 2004.

Amended Korean Won Rate Source Definition


Capitalized terms not defined below aredefined in the 1998 FX and Currency OptionDefinitions as published by the InternationalSwaps and Derivatives Association, EMTA, Inc.and the Foreign Exchange Committee, or in the2004 SFEMC, EMTA & FXC Template Terms forKRW/USD Non-Deliverable FX Transaction.

I. The SFEMC KRW IndicativeSurvey

� Commencing the KRW Indicative Survey:SFEMC (itself or through a service providerSFEMC will select in its sole discretion) willconduct a survey of financial institutions forthe purpose of determining the SFEMCKRW Indicative Survey Rate, beginning at11:00 a.m. (Singapore time) or as soonthereafter as practicable on a Business Dayin Seoul (or a calendar day that would havebeen a Business Day but for anUnscheduled Holiday), following any 14calendar day period during which valuationis deferred or postponed (or both).

� Polled Banks: For purposes of determiningthe KRW Indicative Survey Rate for aValuation Date, SFEMC (itself or through aservice provider) will survey financial institu-tions that are active participants in theKRW/U.S. Dollar market (each, a“Participating Bank”) and included in a cur-rent list of Participating Banks published onthe SFEMC’s website (www.sfemc.org) (the“Publication Site”). Only one office of eachfinancial institution will be included as a

Participating Bank in each KRW IndicativeSurvey.

� Survey Question: Each ParticipatingBank will be asked to provide its reason-able judgment of what is (or, in the case ofan Unscheduled Holiday, would be) thecurrent prevailing free market KRW spotrate (bid-offer pair) for a standard sizeKRW/U.S. Dollar wholesale financialtransaction for same-day settlement in theSeoul marketplace on the Valuation Date.In arriving at this indicative quotation,each Participating Bank will be directed totake such factors into consideration as itdeems appropriate, which factors may(but need not) include any or all of the fol-lowing: the spot rate(s) implied in the off-shore non-deliverable foreign exchangemarket for KRW/U.S. Dollar transactions;the spot rate implied by any other finan-cial market transactions (to the extent thatsuch other financial markets are open forbusiness); the spot rate used in connec-tion with any commercial transactions forgoods or services from offshore suppliersor providers; any existing rate for tradefinance transactions; and any other exist-ing unofficial rate for KRW/U.S. Dollartransactions (commercial or otherwise).



Singapore Foreign Exchange Market Committee (“SFEMC”)KRW Indicative Survey Rate MethodologyDated as of December 1, 2004


mine the KRW Indicative Survey Rate,rounded to the fourth decimal point asdescribed below.

� If the KRW Indicative Survey results in 21 ormore responses, then the 4 highest and 4lowest mid-points will be eliminated, andthe arithmetic mean of the remaining mid-points will be computed and will constitutethe KRW Indicative Survey Rate for suchValuation Date. For purposes of eliminatingthe 4 highest and 4 lowest mid-points, ifmore than 4 mid-points have the samehighest value or lowest value, then only 4such mid-points will be eliminated.

� If the KRW Indicative Survey results in lessthan 21 but 11 or more responses, then the2 highest and 2 lowest mid-points will beeliminated, and the arithmetic mean ofthe remaining mid-points will be computedand will constitute the KRW IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the 2 highest and2 lowest mid-points, if more than 2 mid-points have the same highest value orlowest value, then only 2 such mid-pointswill be eliminated.

� If the KRW Indicative Survey results in lessthan 11 but 8 or more responses, then thehighest and the lowest mid-points will beeliminated and the arithmetic mean of theremaining mid-points will be computedand will constitute the KRW IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the highest andlowest mid-points, if more than 1 mid-pointhas the same highest value or lowest value,then only 1 such mid-point will be eliminated.

� If the KRW Indicative Survey results in lessthan 8 but 5 or more responses, then nomid-points will be eliminated and thearithmetic mean of all mid-points will be

computed and will constitute the KRWIndicative Survey Rate for such ValuationDate.


III. Insufficient Responses� If the KRW Indicative Survey results in less

than 5 responses from Participating Banks(“Insufficient Responses”), no KRWIndicative Survey Rate will be available forthe relevant Valuation Date. The next KRWIndicative Survey will take place on thenext succeeding Business Day in Seoul (orcalendar day that would have been aBusiness Day but for an UnscheduledHoliday), subject to Section V below.

IV. KRW Indicative Survey RatePublication

� The KRW Indicative Survey Rate will bepublished on the Publication Site at3:30 p.m. (Singapore time), or as soonthereafter as practicable.

� As soon as it is determined that the KRWIndicative Survey will result in InsufficientResponses, a notice that no KRWIndicative Survey Rate is available for theValuation Date will be published on thePublication Site.

� The response of each Participating Bankto the Indicative Survey (bid-offer pair)will be available on the Publication Site at9:00 a.m. (Singapore time) on the firstBusiness Day in Seoul (or calendar daythat would have been a Business Day butfor an Unscheduled Holiday) followingthe Business Day on which the relevantKRW Indicative Survey Rate is published,or as soon thereafter as practicable.


V. Discontinuing the KRWIndicative Survey

� The KRW Indicative Survey will be discon-tinued (i) on the calendar day first followingthe Business Day in Seoul on which theKRW KFTC18 (KRW 02) is available for thedetermination of a Settlement Rate, or (ii)on the calendar day first following pollingfor the KRW Indicative Survey that resultsin Insufficient Responses for three con-secutive polling days. Notwithstandingthe foregoing, nothing herein will be con-strued to prevent SFEMC from continuing orre-initiating the KRW Indicative Survey at anappropriate time.

� A notice that the KRW Indicative Surveyhas been discontinued will be publishedon the Publication Site.


time, make such administrative, proce-dural or other modifications to thisMethodology as are appropriate toensure the continued operation andintegrity of the KRW Indicative Survey.


may select) disclaim liability for the KRWIndicative Survey Rate, and no representa-tion or warranty, express or implied, ismade concerning the KRW IndicativeSurvey Rate (including, without limitation,the methodology for determining theKRW Indicative Survey Rate and its suit-ability for any particular use).


Appendix E – Philippine Peso2004 Template TermsAnnex A Rate Source DefinitionsSFEMC Indicative Survey Methodology

2004 SFEMC, EMTA & FXC Template Termsfor PHP/USD Non-Deliverable FX Transaction

General Terms:

Trade Date:

[Date of Annex A]1:

Reference Currency: PHP

[Notional Amount]2:

[Forward Rate]2:





Settlement Date: [DATE CERTAIN], provided, however, that if the Scheduled Valuation Date isadjusted in accordance with the Following Business Day Convention, then theSettlement Date shall be as soon as practicable after the Valuation Date, but in noevent later than one Business Day after such date.


Settlement Rate Option: PHP PHPESO (PHP01)3

Valuation Date: [DATE CERTAIN] (“Scheduled Valuation Date”), subject to adjustment inaccordance with the Preceding Business Day Convention; and in the event of anUnscheduled Holiday, subject to adjustment in accordance with the FollowingBusiness Day Convention.


Disruption Events:




2. Fallback Reference Price: SFEMC PHP Indicative Survey Rate (PHP05)4,5



Other Terms:

“Unscheduled Holiday”: “Unscheduled Holiday” means that a day is not a Business Day and the market wasnot aware of such fact (by means of a public announcement or by reference to other publicly available information) until a time later than 9:00 a.m. local time in the Principal Financial Center(s) of the Reference Currency two Business Days prior to the Scheduled Valuation Date.

“Deferral Period” for In the event the Scheduled Valuation Date becomes subject to the Unscheduled Holiday: Following Business Day Convention, and if the Valuation Date has not occurred

on or before the 14th consecutive day after the Scheduled Valuation Date (any such period being a “Deferral Period”), then the next day after the Deferral Period that would have been a Business Day but for the Unscheduled Holiday,shall be deemed to be the Valuation Date.


day on which the Price Source Disruption ceases to exist, unless the Price SourceDisruption continues to exist (measured from the date that, but for theoccurrence of the Price Source Disruption, would have been the Valuation Date)for a consecutive number of calendar days equal to the Maximum Days ofPostponement. In such event, the Spot Rate will be determined on the next Business Day after the Maximum Days of Postponement in accordance with thenext applicable Disruption Fallback.

“Fallback Survey “Fallback Survey Valuation Postponement” means that, in the event that the Valuation Postponement”: Fallback Reference Price is not available on or before the 3rd Business Day (or

day that would have been a Business Day but for an Unscheduled Holiday)succeeding the end of either (i) Valuation Postponement for Price Source Disruption, (ii) Deferral Period for Unscheduled Holiday, or (iii) Cumulative Events, then the Settlement Rate will be determined in accordance with the nextapplicable Disruption Fallback on such day. For the avoidance of doubt, Cumulative Events, if applicable, does not preclude postponement of valuationin accordance with this provision.


Cumulative Events: Except as provided below, in no event shall the total number of consecutivecalendar days during which either (i) valuation is deferred due to an UnscheduledHoliday, or (ii) a Valuation Postponement shall occur (or any combination of (i) and (ii)), exceed 14 consecutive calendar days in the aggregate. Accordingly, (x) if, uponthe lapse of any such 14 day period, an Unscheduled Holiday shall have occurredor be continuing on the day following such period that otherwise would have beena Business Day, then such day shall be deemed to be a Valuation Date, and (y) if, upon the lapse of any such 14 day period, a Price Source Disruption shall have occurred or be continuing on the day following such period on which the Spot Rateotherwise would be determined, then Valuation Postponement shall not apply and the Spot Rate shall be determined in accordance with the next Disruption Fallback.


Relevant City for Business Dayfor Valuation Date: Manila


Calculation Agent:6

ENDNOTES



3. The PHP PHPESO (PHP01) Rate is published at approximately 12:30 p.m. Manila time on the Valuation Date.

4. The SFEMC PHP Indicative Survey Rate is determined pursuant to the SFEMC PHP Indicative Survey Rate Methodology datedDecember 1, 2004.

5. A party may wish to include the following additional provision if such party is or may be a participant in the SFEMC PHP IndicativeSurvey:


The parties acknowledge that one or both parties to this Transaction acting directly or through a branch or an affiliate may be requestedto provide a quotation or quotations from time to time for the purpose of determining the SFEMC PHP Indicative Survey Rate and suchquotation may affect, materially or otherwise, the settlement of the Transaction.





Effective as of December 1, 2004, Annex A ofthe 1998 FX and Currency Option Definitions(the “1998 Definitions”) is amended to add anew section, Section 4.5(a)(iv)(E), as follows:

(E) “SFEMC PHP INDICATIVE SURVEY RATE”or “PHP05” each means that the Spot Ratefor a Rate Calculation Date will be thePhilippine Peso/U.S. Dollar SpecifiedRate for U.S. Dollars, expressed as theamount of Philippine Pesos per one U.S.Dollar, for settlement in one Business Day,as published on SFEMC’s website(www.sfemc.org) at approximately 3:30 p.m.,Singapore time, or as soon thereafter aspracticable, on such Rate CalculationDate. The Spot Rate will be calculated bySFEMC (or a service provider SFEMC mayselect in its sole discretion) pursuant tothe SFEMC PHP Indicative SurveyMethodology (which means a methodol-ogy, dated as of December 1, 2004, asamended from time to time, for a central-ized industry-wide survey of financialinstitutions that are active participants inthe Philippine Peso/U.S. Dollar marketsfor the purpose of determining the SFEMCPHP Indicative Survey Rate).


particular version of Annex A applies totheir trades should reference Annex A effec-tive as of December 1, 2004, if they desireto incorporate the new Philippine Peso ratesource definition into their trades. If partiesdo not specify in their confirmations a par-ticular version of Annex A, the abovePhilippine Peso rate source definition willapply to trades that incorporate the 1998Definitions and have a trade date on orafter December 1, 2004.

Amended Philippine Peso Rate Source Definition


Capitalized terms not defined below aredefined in the 1998 FX and Currency OptionDefinitions as published by the InternationalSwaps and Derivatives Association, EMTA,Inc. and the Foreign Exchange Committee, orin the 2004 SFEMC, EMTA & FXC TemplateTerms for PHP/USD Non-Deliverable FXTransaction.

I. The SFEMC PHP Indicative Survey� Commencing the PHP Indicative Survey:

SFEMC (itself or through a service providerSFEMC will select in its sole discretion) willconduct a survey of financial institutions forthe purpose of determining the SFEMCPHP Indicative Survey Rate, beginning at11:00 a.m. (Singapore time) or as soonthereafter as practicable on a Business Dayin Manila (or a calendar day that wouldhave been a Business Day but for anUnscheduled Holiday), following any14 calendar day period during which valu-ation is deferred or postponed (or both).

� Polled Banks: For purposes of determin-ing the PHP Indicative Survey Rate for aValuation Date, SFEMC (itself or through aservice provider) will survey financial insti-tutions that are active participants in thePHP/U.S. Dollar market (each, a“Participating Bank”) and included in acurrent list of Participating Banks pub-lished on the SFEMC’s website(www.sfemc.org) (the “Publication Site”).Only one office of each financial institu-

tion will be included as a ParticipatingBank in each PHP Indicative Survey.

� Survey Question: Each Participating Bankwill be asked to provide its reasonablejudgment of what is (or, in the case of anUnscheduled Holiday, would be) the cur-rent prevailing free market PHP spot rate(bid-offer pair) for a standard sizePHP/U.S. Dollar wholesale financial trans-action for same-day settlement in theManila marketplace on the ValuationDate. In arriving at this indicative quotation,each Participating Bank will be directed totake such factors into consideration as itdeems appropriate, which factors may(but need not) include any or all of thefollowing: the spot rate(s) implied in theoffshore non-deliverable foreign exchangemarket for PHP/U.S. Dollar transactions;the spot rate implied by any other financialmarket transactions (to the extent thatsuch other financial markets are open forbusiness); the spot rate used in connec-tion with any commercial transactions forgoods or services from offshore suppliersor providers; any existing rate for tradefinance transactions; and any other exist-ing unofficial rate for PHP/U.S. Dollartransactions (commercial or otherwise).



Singapore Foreign Exchange Market Committee (“SFEMC”)PHP Indicative Survey Rate MethodologyDated as of December 1, 2004


mine the PHP Indicative Survey Rate,rounded to the fourth decimal point asdescribed below.

� If the PHP Indicative Survey results in 21 ormore responses, then the 4 highest and 4lowest mid-points will be eliminated, andthe arithmetic mean of the remaining mid-points will be computed and will constitutethe PHP Indicative Survey Rate for suchValuation Date. For purposes of eliminatingthe 4 highest and 4 lowest mid-points, ifmore than 4 mid-points have the samehighest value or lowest value, then only 4such mid-points will be eliminated.

� If the PHP Indicative Survey results in lessthan 21 but 11 or more responses, then the2 highest and 2 lowest mid-points will beeliminated, and the arithmetic mean ofthe remaining mid-points will be computedand will constitute the PHP IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the 2 highest and2 lowest mid-points, if more than 2 mid-points have the same highest value orlowest value, then only 2 such mid-pointswill be eliminated.

� If the PHP Indicative Survey results in lessthan 11 but 8 or more responses, then thehighest and the lowest mid-points will beeliminated and the arithmetic mean of theremaining mid-points will be computedand will constitute the PHP Indicative SurveyRate for such Valuation Date. For purposesof eliminating the highest and lowest mid-points, if more than 1 mid-point has the samehighest value or lowest value, then only 1such mid-point will be eliminated.

� If the PHP Indicative Survey results in lessthan 8 but 5 or more responses, then nomid-points will be eliminated and the arith-

metic mean of all mid-points will be com-puted and will constitute the PHP IndicativeSurvey Rate for such Valuation Date.


III. Insufficient Responses� If the PHP Indicative Survey results in less

than 5 responses from Participating Banks(“Insufficient Responses”), no PHPIndicative Survey Rate will be available forthe relevant Valuation Date. The next PHPIndicative Survey will take place on thenext succeeding Business Day in Manila(or calendar day that would have been aBusiness Day but for an UnscheduledHoliday), subject to Section V below.

IV. PHP Indicative Survey RatePublication

� The PHP Indicative Survey Rate will bepublished on the Publication Site at3:30 p.m. (Singapore time), or as soonthereafter as practicable.

� As soon as it is determined that the PHPIndicative Survey will result in InsufficientResponses, a notice that no PHPIndicative Survey Rate is available for theValuation Date will be published on thePublication Site.

� The response of each Participating Bankto the Indicative Survey (bid-offer pair)will be available on the Publication Site at9:00 a.m. (Singapore time) on the firstBusiness Day in Manila (or calendar daythat would have been a Business Day butfor an Unscheduled Holiday) followingthe Business Day on which the relevantPHP Indicative Survey Rate is published,or as soon thereafter as practicable.


V. Discontinuing the PHP IndicativeSurvey

� The PHP Indicative Survey will be discon-tinued (i) on the calendar day first followingthe Business Day in Manila on which thePHP PHPESO (PHP 01) is available for thedetermination of a Settlement Rate, or (ii)on the calendar day first following pollingfor the PHP Indicative Survey that results inInsufficient Responses for three consecu-tive polling days. Notwithstanding theforegoing, nothing herein will be construedto prevent SFEMC from continuing or re-initiating the PHP Indicative Survey at anappropriate time.

� A notice that the PHP Indicative Surveyhas been discontinued will be publishedon the Publication Site.


time, make such administrative, proce-dural or other modifications to thisMethodology as are appropriate toensure the continued operation andintegrity of the PHP Indicative Survey.


may select) disclaim liability for the PHPIndicative Survey Rate, and no representa-tion or warranty, express or implied, ismade concerning the PHP IndicativeSurvey Rate (including, without limitation,the methodology for determining the PHPIndicative Survey Rate and its suitabilityfor any particular use).


Appendix F – Taiwanese Dollar2004 Template TermsAnnex A Rate Source DefinitionsSFEMC Indicative Survey Methodology

2004 SFEMC, EMTA & FXC Template Termsfor TWD/USD Non-Deliverable FX Transaction

General Terms:

Trade Date:

[Date of Annex A]1:

Reference Currency: TWD

[Notional Amount]2:

[Forward Rate]2:





Settlement Date: [DATE CERTAIN], provided, however, that if the Scheduled Valuation Date is adjusted in accordance with the Following Business Day Convention, then the Settlement Date shall be as soon as practicable after the Valuation Date, but in no event later than two Business Days after such date.


Settlement Rate Option: TWD TAIFX1 (TWD03)3

Valuation Date: [DATE CERTAIN] (“Scheduled Valuation Date”), subject to adjustment in accordancewith the Preceding Business Day Convention; and in the event of an Unscheduled Holiday, subject to adjustment in accordance with the Following Business Day Convention.


Disruption Events:




2. Fallback Reference Price: SFEMC TWD Indicative Survey Rate (TWD04)4,5



Other Terms:

“Unscheduled Holiday”: “Unscheduled Holiday” means that a day is not a Business Day and the market wasnot aware of such fact (by means of a public announcement or by reference to other publicly available information) until a time later than 9:00 a.m. local time in the Principal Financial Center(s) of the Reference Currency two Business Days priorto the Scheduled Valuation Date.


before the 14th consecutive day after the Scheduled Valuation Date (any such period being a “Deferral Period”), then the next day after the Deferral Period thatwould have been a Business Day but for the Unscheduled Holiday, shall be deemed to be the Valuation Date.


day on which the Price Source Disruption ceases to exist, unless the Price SourceDisruption continues to exist (measured from the date that, but for theoccurrence of the Price Source Disruption, would have been the Valuation Date)for a consecutive number of calendar days equal to the Maximum Days ofPostponement. In such event, the Spot Rate will be determined on the next Business Day after the Maximum Days of Postponement in accordance with thenext applicable Disruption Fallback.

“Fallback Survey “Fallback Survey Valuation Postponement” means that, in the event that the FallbackValuation Postponement”: Reference Price is not available on or before the 3rd Business Day (or day that would

have been a Business Day but for an Unscheduled Holiday) succeeding the end ofeither (i) Valuation Postponement for Price Source Disruption, (ii) Deferral Period for Unscheduled Holiday, or (iii) Cumulative Events, then the Settlement Rate will be determined in accordance with the next applicable Disruption Fallback on such day. For the avoidance of doubt, Cumulative Events, if applicable, does not pre-clude postponement of valuation in accordance with this provision.


Cumulative Events: Except as provided below, in no event shall the total number of consecutivecalendar days during which either (i) valuation is deferred due to an Unscheduled Holiday, or (ii) a Valuation Postponement shall occur (or any combination of (i) and(ii)), exceed 14 consecutive calendar days in the aggregate. Accordingly, (x) if, uponthe lapse of any such 14 day period, an Unscheduled Holiday shall have occurredor be continuing on the day following such period that otherwise would have beena Business Day, then such day shall be deemed to be a Valuation Date, and (y) if, upon the lapse of any such 14 day period, a Price Source Disruption shall have occurred or be continuing on the day following such period on which the Spot Rateotherwise would be determined, then Valuation Postponement shall not apply and the Spot Rate shall be determined in accordance with the next Disruption Fallback.


Relevant City for Business Dayfor Valuation Date: Taipei


Calculation Agent:6

ENDNOTES



3. The TWD TAIFX1 (TWD03) Rate is published at approximately 11:00 a.m. Taipei time on the Valuation Date.

4. The SFEMC TWD Indicative Survey Rate is determined pursuant to the SFEMC TWD Indicative Survey Rate Methodology datedDecember 1, 2004.

5. A party may wish to include the following additional provision if such party is or may be a participant in the SFEMC TWD IndicativeSurvey:


The parties acknowledge that one or both parties to this Transaction acting directly or through a branch or an affiliate may be requestedto provide a quotation or quotations from time to time for the purpose of determining the SFEMC TWD Indicative Survey Rate andsuch quotation may affect, materially or otherwise, the settlement of the Transaction.





Effective as of December 1, 2004, Annex A ofthe 1998 FX and Currency Option Definitions(the “1998 Definitions”) is amended to add anew section, Section 4.5(a)(v)(D), and todelete Sections 4.5(a)(v)(A) and 4.5(a)(v)(C) intheir entirety and replace them as follows:

(A) “TWD TELERATE 6161” or “TWD01” eachmean that the Spot Rate for a RateCalculation Date will be the TaiwaneseDollar/U.S. Dollar spot rate, expressed asthe amount of Taiwanese Dollars per oneU.S. Dollar, for settlement in two BusinessDays, reported by the Taipei Forex Inc.which appears on the Telerate Page 6161under the heading “Spot” as of 11:00 a.m.,Taipei time, on that Rate Calculation Date,or if no rate appears as of 11:00 a.m., Taipeitime, the rate that first appears in any of thenext succeeding 15 minute intervals aftersuch time, up to and including 12:00 noon,Taipei time, on that Rate Calculation Date.

(C) “TWD TAIFX1” or “TWD03” each mean thatthe Spot Rate for a Rate Calculation Datewill be the Taiwanese Dollar/U.S. Dollarspot rate, expressed as the amount ofTaiwanese Dollars per one U.S. Dollar, forsettlement in two Business Days, reportedby the Taipei Forex Inc. which appears onthe Reuters Screen TAIFX1 Page under theheading “Spot” as of 11:00 a.m. Taipei time,on that Rate Calculation Date, or if no rateappears as of 11:00 a.m., Taipei time, therate that first appears in any of the next suc-ceeding 15 minute intervals after such time,up to and including 12:00 noon, Taipeitime on that Rate Calculation Date.

(D) “SFEMC TWD INDICATIVE SURVEY RATE”or “TWD04” each means that the Spot Ratefor a Rate Calculation Date will be theTaiwanese Dollar/U.S. Dollar SpecifiedRate for U.S. Dollars, expressed as theamount of Taiwanese Dollars per one U.S.Dollar, for settlement in two Business Days,as published on SFEMC’s website(www.sfemc.org) at approximately 3:30 p.m.,Singapore time, or as soon thereafter aspracticable, on such Rate Calculation Date.The Spot Rate will be calculated by SFEMC(or a service provider SFEMC may select inits sole discretion) pursuant to the SFEMCTWD Indicative Survey Methodology(which means a methodology, dated as ofDecember 1, 2004, as amended from timeto time, for a centralized industry-widesurvey of financial institutions that areactive participants in the TaiwaneseDollar/U.S. Dollar markets for the pur-pose of determining the SFEMC TWDIndicative Survey Rate).

Practitioner’s Notes:� “TWD Telerate 6161” or “TWD01” and

“TWD TAIFX1” or “TWD03” have beenrevised to permit a limited delay in reportingthe Spot Rate of the first trade that takesplace through the Taipei Forex Inc. The firsttrade usually takes place at 11 a.m. TaipeiTime, and its Spot Rate is posted in the first15-minute segment. However, the first tradecould take place and its Spot Rate could beposted at a later 15-minute interval. The ratesource definitions incorporate the possibilityof the first appearance of the Spot Rate in

Amended Taiwanese Dollar Rate Source Definition


any succeeding 15-minute interval from11 a.m. up to and including 12 Noon TaipeiTime. Noon Taipei Time was deemed to bean appropriate cut-off point, because failureof a trade to take place through Taipei ForexInc. by this time would indicate a disruptionin the local market. If a Spot Rate is notposted by 12 Noon Taipei Time on aValuation Date, a Price Source Disruptionwould be triggered as provided in the 1998Definitions and the relevant confirmation.

� “Parties that specify in confirmations that aparticular version of Annex A applies to theirtrades should reference Annex A effective asof December 1, 2004, if they desire to incor-porate any or all of the revised TaiwaneseDollar rate source definitions into theirtrades. If parties do not specify in their con-firmations a particular version of Annex A,the above Taiwanese Dollar rate source defi-nitions will apply to trades that incorporatethe 1998 Definitions and have a trade dateon or after December 1, 2004.


Capitalized terms not defined below aredefined in the 1998 FX and Currency OptionDefinitions as published by the InternationalSwaps and Derivatives Association, EMTA,Inc. and the Foreign Exchange Committee, orin the 2004 SFEMC, EMTA & FXC TemplateTerms for TWD/USD Non-Deliverable FXTransaction.

I. The SFEMC TWD Indicative Survey� Commencing the TWD Indicative Survey:

SFEMC (itself or through a service providerSFEMC will select in its sole discretion) willconduct a survey of financial institutions forthe purpose of determining the SFEMCTWD Indicative Survey Rate, beginning at11:00 a.m. (Singapore time) or as soonthereafter as practicable on a Business Dayin Taipei (or a calendar day that would havebeen a Business Day but for anUnscheduled Holiday), following any 14calendar day period during which valua-tion is deferred or postponed (or both).

� Polled Banks: For purposes of determin-ing the TWD Indicative Survey Rate for aValuation Date, SFEMC (itself or through aservice provider) will survey financial insti-tutions that are active participants in theTWD/U.S. Dollar market (each, a“Participating Bank”) and included in acurrent list of Participating Banks pub-lished on the SFEMC’s website(www.sfemc.org) (the “Publication Site”).Only one office of each financial institu-

tion will be included as a ParticipatingBank in each TWD Indicative Survey.

� Survey Question: Each Participating Bankwill be asked to provide its reasonablejudgment of what is (or, in the case of anUnscheduled Holiday, would be) the cur-rent prevailing free market TWD spot rate(bid-offer pair) for a standard sizeTWD/U.S. Dollar wholesale financialtransaction for same-day settlement in theTaipei marketplace on the Valuation Date.In arriving at this indicative quotation,each Participating Bank will be directed totake such factors into consideration as itdeems appropriate, which factors may(but need not) include any or all of the fol-lowing: the spot rate(s) implied in the off-shore non-deliverable foreign exchangemarket for TWD/U.S. Dollar transactions;the spot rate implied by any other finan-cial market transactions (to the extent thatsuch other financial markets are open forbusiness); the spot rate used in connec-tion with any commercial transactions forgoods or services from offshore suppliersor providers; any existing rate for tradefinance transactions; and any other exist-ing unofficial rate for TWD/U.S. Dollartransactions (commercial or otherwise).



Singapore Foreign Exchange Market Committee (“SFEMC”)TWD Indicative Survey Rate MethodologyDated as of December 1, 2004

mine the TWD Indicative Survey Rate,rounded to the fourth decimal point asdescribed below.

� If the TWD Indicative Survey results in 21 ormore responses, then the 4 highest and 4lowest mid-points will be eliminated, andthe arithmetic mean of the remaining mid-points will be computed and will constitutethe TWD Indicative Survey Rate for suchValuation Date. For purposes of eliminat-ing the 4 highest and 4 lowest mid-points, ifmore than 4 mid-points have the samehighest value or lowest value, then only 4such mid-points will be eliminated.

� If the TWD Indicative Survey results in lessthan 21 but 11 or more responses, then the2 highest and 2 lowest mid-points will beeliminated, and the arithmetic mean ofthe remaining mid-points will be computedand will constitute the TWD IndicativeSurvey Rate for such Valuation Date. Forpurposes of eliminating the 2 highest and2 lowest mid-points, if more than 2 mid-points have the same highest value orlowest value, then only 2 such mid-pointswill be eliminated.

� If the TWD Indicative Survey results in lessthan 11 but 8 or more responses, then thehighest and the lowest mid-points will beeliminated and the arithmetic mean of theremaining mid-points will be computed andwill constitute the TWD Indicative SurveyRate for such Valuation Date. For purposesof eliminating the highest and lowest mid-points, if more than 1 mid-point has thesame highest value or lowest value, thenonly 1 such mid-point will be eliminated.

� If the TWD Indicative Survey results in lessthan 8 but 5 or more responses, then nomid-points will be eliminated and the

arithmetic mean of all mid-points will becomputed and will constitute the TWDIndicative Survey Rate for such ValuationDate.


III. Insufficient Responses� If the TWD Indicative Survey results in less

than 5 responses from Participating Banks(“Insufficient Responses”), no TWDIndicative Survey Rate will be available forthe relevant Valuation Date. The nextTWD Indicative Survey will take place onthe next succeeding Business Day inTaipei (or calendar day that would havebeen a Business Day but for anUnscheduled Holiday), subject to SectionV below.

IV. TWD Indicative Survey RatePublication

� The TWD Indicative Survey Rate will bepublished on the Publication Site at3:30 p.m. (Singapore time), or as soonthereafter as practicable.

� As soon as it is determined that the TWDIndicative Survey will result in InsufficientResponses, a notice that no TWDIndicative Survey Rate is available for theValuation Date will be published on thePublication Site.

� The response of each Participating Bankto the Indicative Survey (bid-offer pair)will be available on the Publication Site at9:00 a.m. (Singapore time) on the firstBusiness Day in Taipei (or calendar daythat would have been a Business Day butfor an Unscheduled Holiday) followingthe Business Day on which the relevant


TWD Indicative Survey Rate is published,or as soon thereafter as practicable.

V. Discontinuing the TWDIndicative Survey

� The TWD Indicative Survey will be dis-continued (i) on the calendar day first fol-lowing the Business Day in Taipei onwhich the TWD TAIFX1 (TWD 03) is avail-able for the determination of a SettlementRate, or (ii) on the calendar day first fol-lowing polling for the TWD IndicativeSurvey that results in InsufficientResponses for three consecutive pollingdays. Notwithstanding the foregoing,nothing herein will be construed to pre-vent SFEMC from continuing or re-initiat-ing the TWD Indicative Survey at anappropriate time.

� A notice that the TWD Indicative Surveyhas been discontinued will be publishedon the Publication Site.


time, make such administrative, proce-dural or other modifications to thisMethodology as are appropriate toensure the continued operation andintegrity of the TWD Indicative Survey.


may select) disclaim liability for the TWDIndicative Survey Rate, and no representa-tion or warranty, express or implied, ismade concerning the TWD IndicativeSurvey Rate (including, without limitation,the methodology for determining theTWD Indicative Survey Rate and its suit-ability for any particular use).


user’s guide: 2004 asian currency non-deliverable foreign

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