Common use of Effect of this Module Clause in Contracts

Effect of this Module. You agree that the above terms shall continue in effect notwithstanding the termination of business dealings between us and you. APPENDIX G – FAILURE TO DELIVER OF JAPANESE GOVERNMENT SECURITIES In August 2010, the Japanese Securities Dealers Association (“JSDA”) announced that “The Japanese Government Securities Guidelines for Real Time Gross Settlement” will be partially amended and that the “Practical Guidelines for Handling of Fails Charges” will be implemented. The latest edition of these Guidelines can be viewed at JSDA’s website (xxx.xxxx.xx.xx/xx/xxxxx-xxxxxxxxxx/xxxxxxxxxx/). This reviewed market practice for settlement failures was introduced on 1st November 2010.∗ Under the reviewed market practice, if a fail occurs in any transaction in Japanese government securities based on a delivery-versus-payment (“DVP”) settlement, the party receiving the securities will be entitled to demand that the party failing to deliver the securities pays a Fails Charge (a financial penalty imposed on the failing party pursuant to the procedures specified in the “Practical Guidelines for the Handling of Fails Charges” ) This new practice is referred to as the “Fails Charge Handling Practice”. We have decided to adopt this Fails Charge Handling Practice for purposes of our transactions with all our counterparties, and accordingly, are notifying you that any delivery-versus-payment transactions in Japanese Government securities entered into between you and us will be subject to the following conditions, unless explicitly agreed otherwise with respect to a specific transaction. These terms are deemed to cover any transaction between you (“Trade Counterparty”) and us (“Company”) encompassing any DVP settlement of Japanese Government securities (including settlement by the delivery of government securities against the payment of funds on the same date in the case where an agreement to that effect is made between the parties to the transaction under which their mutual claims and debts are preserved explicitly). The term “any DVP settlement of Japanese Government securities” referred to in the previous sentence includes purchase and sale transactions and repurchase transactions which includes the start and closing legs of transactions in conditional purchase and sale transactions and lending and returning in lending transactions. The Fails Charge Handling Practice will apply to all settlements made on or after 1st November 2010 (the “Effective Date”) unless explicitly agreed upon in connection with and specific transaction. Similarly the Company will be deemed to have agreed that the Fails Charge Handling Practice will apply to all settlements unless otherwise explicitly agreed upon in connection with any specific transaction. In the event that either party fails to claim Fails Charges with respect to one or more transactions to which the Fails Charge Handling Practice applies, that party shall not be deemed to waive its right to claim Fails Charges in relation to other applicable transactions. In addition, either party’s claim of a Fails Charge shall not preclude the party from exercising any other right available under the agreement for the transaction in question or any applicable law, and none of the Trade Counterparty, Company or any third party shall in any way be deemed to have waived such a right. ∗ The JSDA has established the market practice for Fails Charges with the intention of preventing frequent settlement failures from occurring when the market is experiencing low interest rates. JSDA has reviewed and improved the market practice for settlement failures and partially amended the JSDA regulations (the “Regulations concerning handling of Short Sale and Lending transactions of Bonds” and the “Regulations concerning Handling of Conditional Sale and Purchase of Bonds, etc.”). In “The Japanese Government Securities Guidelines for real Time gross Settlement” to be amended at this time, the provisions for how to handle Fails Charges are stipulated in Part III “Guidelines concerning Fails”. In addition the “Practical Guidelines for handling of Fails Charges” will be created to stipulate how to introduce Fails Charges and the standard procedures for calculating, claiming and paying/receiving Fails Charges. In the new guidelines, the procedures relating to Fails Charges are specified, and it is recommended, in respect of bond lending transactions with cash collateral to execute a memorandum concerning fails to clearly specify the handling of a settlement failure if it has not yet been executed by the parties to a transaction. We will aim to submit any claims by the 10th business day of the following month. Payment or notice of claim rejection must be submitted to us by the last business day of that month. We will not submit claims for any charge of less than JPY 50,000 per calendar month.

Effect of this Module. You agree that the above terms shall continue in effect notwithstanding the termination of business dealings between us and you. APPENDIX G – FAILURE TO DELIVER OF JAPANESE GOVERNMENT SECURITIES In August 2010, the Japanese Securities Dealers Association (“JSDA”) announced that “The Japanese Government Securities Guidelines for Real Time Gross Settlement” will be partially amended and that the “Practical Guidelines for Handling of Fails Charges” will be implemented. The latest edition of these Guidelines can be viewed at JSDA’s website (xxx.xxxx.xx.xx/xx/xxxxx-xxxxxxxxxx/xxxxxxxxxx/). This reviewed market practice for settlement failures was introduced on 1st November 2010.∗ Under the reviewed market practice, if a fail occurs in any transaction in Japanese government securities based on a delivery-versus-payment (“DVP”) settlement, the party receiving the securities will be entitled to demand that the party failing to deliver the securities pays a Fails Charge (a financial penalty imposed on the failing party pursuant to the procedures specified in the “Practical Guidelines for the Handling of Fails Charges” ) This new practice is referred to as the “Fails Charge Handling Practice”). We have decided to adopt this Fails Charge Handling Practice for purposes of our transactions with all our counterparties, and accordingly, are notifying you that any delivery-versus-payment transactions in Japanese Government securities entered into between you and us will be subject to the following conditions, unless explicitly agreed otherwise with respect to a specific transaction. These terms are deemed to cover any transaction between you (“Trade Counterparty”) and us (“Company”) encompassing any DVP settlement of Japanese Government securities (including settlement by the delivery of government securities against the payment of funds on the same date in the case where an agreement to that effect is made between the parties to the transaction under which their mutual claims and debts are preserved explicitly). The term “any DVP settlement of Japanese Government securities” referred to in the previous sentence includes purchase and sale transactions and repurchase transactions which includes the start and closing legs of transactions in conditional purchase and sale transactions and lending and returning in lending transactions. The Fails Charge Handling Practice will apply to all settlements made on or after 1st November 2010 (the “Effective Date”) unless explicitly agreed upon in connection with and specific transaction. Similarly the Company will be deemed to have agreed that the Fails Charge Handling Practice will apply to all settlements unless otherwise explicitly agreed upon in connection with any specific transaction. In the event that either party fails to claim Fails Charges with respect to one or more transactions to which the Fails Charge Handling Practice applies, that party shall not be deemed to waive its right to claim Fails Charges in relation to other applicable transactions. In addition, either party’s claim of a Fails Charge shall not preclude the party from exercising any other right available under the agreement for the transaction in question or any applicable law, and none of the Trade Counterparty, Company or any third party shall in any way be deemed to have waived such a right. right ∗ The JSDA has established the market practice for Fails Charges with the intention of preventing frequent settlement failures from occurring when the market is experiencing low interest rates. JSDA has reviewed and improved the market practice for settlement failures and partially amended the JSDA regulations (the “Regulations concerning handling of Short Sale and Lending transactions of Bonds” and the “Regulations concerning Handling of Conditional Sale and Purchase of Bonds, etc.”). In “The Japanese Government Securities Guidelines for real Time gross Settlement” to be amended at this time, the provisions for how to handle Fails Charges are stipulated in Part III “Guidelines concerning Fails”. In addition the “Practical Guidelines for handling of Fails Charges” will be created to stipulate how to introduce Fails Charges and the standard procedures for calculating, claiming and paying/receiving Fails Charges. In the new guidelines, the procedures relating to Fails Charges are specified, and it is recommended, in respect of bond lending transactions with cash collateral to execute a memorandum concerning fails to clearly specify the handling of a settlement failure if it has not yet been executed by the parties to a transaction. We will aim to submit any claims by the 10th business day of the following month. Payment or notice of claim rejection must be submitted to us by the last business day of that month. We will not submit claims for any charge of less than JPY 50,000 per calendar month.

Effect of this Module. You agree that the above terms shall continue in effect notwithstanding the termination of business dealings between us and you. APPENDIX G – FAILURE TO DELIVER OF JAPANESE GOVERNMENT SECURITIES In August 2010, the Japanese Securities Dealers Association (“JSDA”) announced that “The Japanese Government Securities Guidelines for Real Time Gross Settlement” will be partially amended and that the “Practical Guidelines for Handling of Fails Charges” will be implemented. The latest edition of these Guidelines can be viewed at JSDA’s website (xxx.xxxx.xx.xx/xx/xxxxx-xxxxxxxxxx/xxxxxxxxxx/). This reviewed market practice for settlement failures was introduced on 1st November 2010.∗ 2010. Under the reviewed market practice, if a fail occurs in any transaction in Japanese government securities based on a delivery-versus-payment (“DVP”) settlement, the party receiving the securities will be entitled to demand that the party failing to deliver the securities pays a Fails Charge (a financial penalty imposed on the failing party pursuant to the procedures specified in the “Practical Guidelines for the Handling of Fails Charges” ) This new practice is referred to as the “Fails Charge Handling Practice”. We have decided to adopt this Fails Charge Handling Practice for purposes of our transactions with all our counterparties, and accordingly, are notifying you that any delivery-versus-payment transactions in Japanese Government securities entered into between you and us will be subject to the following conditions, unless explicitly agreed otherwise with respect to a specific transaction. These terms are deemed to cover any transaction between you (“Trade Counterparty”) and us (“Company”) encompassing any DVP settlement of Japanese Government securities (including settlement by the delivery of government securities against the payment of funds on the same date in the case where an agreement to that effect is made between the parties to the transaction under which their mutual claims and debts are preserved explicitly). The term “any DVP settlement of Japanese Government securities” referred to in the previous sentence includes purchase and sale transactions and repurchase transactions which includes the start and closing legs of transactions in conditional purchase and sale transactions and lending and returning in lending transactions. The Fails Charge Handling Practice will apply to all settlements made on or after 1st November 2010 (the “Effective Date”) unless explicitly agreed upon in connection with and specific transaction. Similarly the Company will be deemed to have agreed that the Fails Charge Handling Practice will apply to all settlements unless otherwise explicitly agreed upon in connection with any specific transaction. In the event that either party fails to claim Fails Charges with respect to one or more transactions to which the Fails Charge Handling Practice applies, that party shall not be deemed to waive its right to claim Fails Charges in relation to other applicable transactions. In addition, either party’s claim of a Fails Charge shall not preclude the party from exercising any other right available under the agreement for the transaction in question or any applicable law, and none of the Trade Counterparty, Company or any third party shall in any way be deemed to have waived such a right. ∗  The JSDA has established the market practice for Fails Charges with the intention of preventing frequent settlement failures from occurring when the market is experiencing low interest rates. JSDA has reviewed and improved the market practice for settlement failures and partially amended the JSDA regulations (the “Regulations concerning handling of Short Sale and Lending transactions of Bonds” and the “Regulations concerning Handling of Conditional Sale and Purchase of Bonds, etc.”). In “The Japanese Government Securities Guidelines for real Time gross Settlement” to be amended at this time, the provisions for how to handle Fails Charges are stipulated in Part III “Guidelines concerning Fails”. In addition the “Practical Guidelines for handling of Fails Charges” will be created to stipulate how to introduce Fails Charges and the standard procedures for calculating, claiming and paying/receiving Fails Charges. In the new guidelines, the procedures relating to Fails Charges are specified, and it is recommended, in respect of bond lending transactions with cash collateral to execute a memorandum concerning fails to clearly specify the handling of a settlement failure if it has not yet been executed by the parties to a transaction. We will aim to submit any claims by the 10th business day of the following month. Payment or notice of claim rejection must be submitted to us by the last business day of that month. We will not submit claims for any charge of less than JPY 50,000 per calendar month.

Effect of this Module. You agree that the above terms shall continue in effect notwithstanding the termination of business dealings between us and you. APPENDIX G – FAILURE TO DELIVER OF JAPANESE GOVERNMENT SECURITIES In August 2010, the Japanese Securities Dealers Association (“JSDA”) announced that “The Japanese Government Securities Guidelines for Real Time Gross Settlement” will be partially amended and that the “Practical Guidelines for Handling of Fails Charges” will be implemented. The latest edition of these Guidelines can be viewed at JSDA’s website (xxx.xxxx.xx.xx/xx/xxxxx-xxxxxxxxxx/xxxxxxxxxx/xxx.xxxx.xx.xx/xx/xxxxx- guidelines/guidelines/). This reviewed market practice for settlement failures was introduced on 1st November 2010.∗ Under the reviewed market practice, if a fail occurs in any transaction in Japanese government securities based on a delivery-versus-payment (“DVP”) settlement, the party receiving the securities will be entitled to demand that the party failing to deliver the securities pays a Fails Charge (a financial penalty imposed on the failing party pursuant to the procedures specified in the “Practical Guidelines for the Handling of Fails Charges” ) This new practice is referred to as the “Fails Charge Handling Practice”. We have decided to adopt this Fails Charge Handling Practice for purposes of our transactions with all our counterparties, and accordingly, are notifying you that any delivery-versus-payment transactions in Japanese Government securities entered into between you and us will be subject to the following conditions, unless explicitly agreed otherwise with respect to a specific transaction. These terms are deemed to cover any transaction between you (“Trade Counterparty”) and us (“Company”) encompassing any DVP settlement of Japanese Government securities (including settlement by the delivery of government securities against the payment of funds on the same date in the case where an agreement to that effect is made between the parties to the transaction under which their mutual claims and debts are preserved explicitly). The term “any DVP settlement of Japanese Government securities” referred to in the previous sentence includes purchase and sale transactions and repurchase transactions which includes the start and closing legs of transactions in conditional purchase and sale transactions and lending and returning in lending transactions. The Fails Charge Handling Practice will apply to all settlements made on or after 1st November 2010 (the “Effective Date”) unless explicitly agreed upon in connection with and specific transaction. Similarly the Company will be deemed to have agreed that the Fails Charge Handling Practice will apply to all settlements unless otherwise explicitly agreed upon in connection with any specific transaction. In the event that either party fails to claim Fails Charges with respect to one or more transactions to which the Fails Charge Handling Practice applies, that party shall not be deemed to waive its right to claim Fails Charges in relation to other applicable transactions. In addition, either party’s claim of a Fails Charge shall not preclude the party from exercising any other right available under the agreement for the transaction in question or any applicable law, and none of the Trade Counterparty, Company or any third party shall in any way be deemed to have waived such a right. ∗ The JSDA has established the market practice for Fails Charges with the intention of preventing frequent settlement failures from occurring when the market is experiencing low interest rates. JSDA has reviewed and improved the market practice for settlement failures and partially amended the JSDA regulations (the “Regulations concerning handling of Short Sale and Lending transactions of Bonds” and the “Regulations concerning Handling of Conditional Sale and Purchase of Bonds, etc.”). In “The Japanese Government Securities Guidelines for real Time gross Settlement” to be amended at this time, the provisions for how to handle Fails Charges are stipulated in Part III “Guidelines concerning Fails”. In addition the “Practical Guidelines for handling of Fails Charges” will be created to stipulate how to introduce Fails Charges and the standard procedures for calculating, claiming and paying/receiving Fails Charges. In the new guidelines, the procedures relating to Fails Charges are specified, and it is recommended, in respect of bond lending transactions with cash collateral to execute a memorandum concerning fails to clearly specify the handling of a settlement failure if it has not yet been executed by the parties to a transaction. We will aim to submit any claims by the 10th business day of the following month. Payment or notice of claim rejection must be submitted to us by the last business day of that month. We will not submit claims for any charge of less than JPY 50,000 per calendar month.

Effect of this Module. You agree that the above terms shall continue in effect notwithstanding the termination of business dealings between us and you. APPENDIX G – FAILURE TO DELIVER OF JAPANESE GOVERNMENT SECURITIES In August 2010, the Japanese Securities Dealers Association (“JSDA”) announced that “The Japanese Government Securities Guidelines for Real Time Gross Settlement” will be partially amended and that the “Practical Guidelines for Handling of Fails Charges” will be implemented. The latest edition of these Guidelines can be viewed at JSDA’s website (xxx.xxxx.xx.xx/xx/xxxxx-xxxxxxxxxx/xxxxxxxxxx/). This reviewed market practice for settlement failures was introduced on 1st November 2010.∗ 2010. Under the reviewed market practice, if a fail occurs in any transaction in Japanese government securities based on a delivery-versus-payment (“DVP”) settlement, the party receiving the securities will be entitled to demand that the party failing to deliver the securities pays a Fails Charge (a financial penalty imposed on the failing party pursuant to the procedures specified in the “Practical Guidelines for the Handling of Fails Charges” ) This new practice is referred to as the “Fails Charge Handling Practice”). We have decided to adopt this Fails Charge Handling Practice for purposes of our transactions with all our counterparties, and accordingly, are notifying you that any delivery-versus-payment transactions in Japanese Government securities entered into between you and us will be subject to the following conditions, unless explicitly agreed otherwise with respect to a specific transaction. These terms are deemed to cover any transaction between you (“Trade Counterparty”) and us (“Company”) encompassing any DVP settlement of Japanese Government securities (including settlement by the delivery of government securities against the payment of funds on the same date in the case where an agreement to that effect is made between the parties to the transaction under which their mutual claims and debts are preserved explicitly). The term “any DVP settlement of Japanese Government securities” referred to in the previous sentence includes purchase and sale transactions and repurchase transactions which includes the start and closing legs of transactions in conditional purchase and sale transactions and lending and returning in lending transactions. The Fails Charge Handling Practice will apply to all settlements made on or after 1st November 2010 (the “Effective Date”) unless explicitly agreed upon in connection with and specific transaction. Similarly the Company will be deemed to have agreed that the Fails Charge Handling Practice will apply to all settlements unless otherwise explicitly agreed upon in connection with any specific transaction. In the event that either party fails to claim Fails Charges with respect to one or more transactions to which the Fails Charge Handling Practice applies, that party shall not be deemed to waive its right to claim Fails Charges in relation to other applicable transactions. In addition, either party’s claim of a Fails Charge shall not preclude the party from exercising any other right available under the agreement for the transaction in question or any applicable law, and none of the Trade Counterparty, Company or any third party shall in any way be deemed to have waived such a right. ∗ right  The JSDA has established the market practice for Fails Charges with the intention of preventing frequent settlement failures from occurring when the market is experiencing low interest rates. JSDA has reviewed and improved the market practice for settlement failures and partially amended the JSDA regulations (the “Regulations concerning handling of Short Sale and Lending transactions of Bonds” and the “Regulations concerning Handling of Conditional Sale and Purchase of Bonds, etc.”). In “The Japanese Government Securities Guidelines for real Time gross Settlement” to be amended at this time, the provisions for how to handle Fails Charges are stipulated in Part III “Guidelines concerning Fails”. In addition the “Practical Guidelines for handling of Fails Charges” will be created to stipulate how to introduce Fails Charges and the standard procedures for calculating, claiming and paying/receiving Fails Charges. In the new guidelines, the procedures relating to Fails Charges are specified, and it is recommended, in respect of bond lending transactions with cash collateral to execute a memorandum concerning fails to clearly specify the handling of a settlement failure if it has not yet been executed by the parties to a transaction. We will aim to submit any claims by the 10th business day of the following month. Payment or notice of claim rejection must be submitted to us by the last business day of that month. We will not submit claims for any charge of less than JPY 50,000 per calendar month.