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2005 Matrix Supplement to the 2003 ISDA Credit Derivatives Definitions

The 2005 Matrix Supplement (the “Matrix Supplement”) scheduled to be published by ISDA on 7 March 2005 will be the latest supplement to the 2003 ISDA Credit Derivatives Definitions. Provisions of the Matrix Supplement (the “Matrix Provisions”) will become Article XI of the 2003 Credit Derivatives Definitions.

The Matrix Provisions allow parties who wish to enter into a physically settled credit default swap (“CDS”) to incorporate the terms contained in a matrix published by ISDA called Credit Derivatives Physical Settlement Matrix (the “Matrix”). The Matrix will set out terms of different Transaction Type (e.g. North American Corporate, European Corporate and Asia Corporate) and will be updated from time to time.

The Parties will be able to use Matrix Provisions by referencing the Matrix Supplement and specifying the Transaction Type in the swap confirmation.

Unless the parties otherwise specify, the most recent version of the Matrix before the trade date will be applicable to the partiesE˝f transaction.

Last updated 1 March 2005

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