Frequently Asked Questions

ISDA has prepared this brief summary of frequently asked questions to assist in your consideration of the 2006 Dana CDS Index Protocol (the “Dana Protocol”).

THIS FREQUENTLY ASKED QUESTIONS DOES NOT PURPORT TO BE AND SHOULD NOT BE CONSIDERED A GUIDE TO OR AN EXPLANATION OF ALL RELEVANT ISSUES OR CONSIDERATIONS IN CONNECTION WITH THE DANA PROTOCOL. PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER THEY DEEM APPROPRIATE PRIOR TO USING OR ADHERING TO THE DANA PROTOCOL. ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION OR OTHER DOCUMENTATION MAY BE PUT.

This Frequently Asked Questions webpage is divided into three sections: (i) questions relating to the submission of Adherence Letters; (ii) questions relating to the election of an entity not to participate in the Dana Protocol; and (iii) questions relating to the substance of the Dana Protocol itself.

Adherence Letter Submission Process
When do I need to send in my Adherence Letter?
The Dana Protocol is open between 9:00 a.m. New York Time on Thursday, March 16, 2006 and 5:00 p.m. New York Time on Thursday, March 23, 2006. Any entity must email its Adherence Letter to ISDA by 5:00 p.m. New York Time on Thursday, March 23, 2006, or it will not be able to participate in the Dana Protocol.

How do I send in my Adherence Letter?
All Adherence Letters must be delivered by email to danaprotocol@isda.org. In the email, you must submit both your conformed and executed copies of the Adherence Letter.

The Adherence Letter(s) should be on your institution’s letterhead. Nothing in the form Adherence Letter available on ISDA’s website may be changed with the exception of completing the details of your institutional name, date and signature block.

You are not required to send your original Adherence Letter(s) by mail to ISDA.

What is a conformed copy?
A conformed copy of the Adherence Letter means that the name of the authorized signatory (for example, Patricia Smith) is typed rather than having Patricia Smith’s actual signature on the letter. ISDA only posts on its website the conformed copy of all Adherence Letters.

You must also submit an executed, or signed, copy of the Adherence Letter in addition to the conformed copy of the Adherence Letter. ISDA keeps the executed copy of the Adherence Letter for its files and does not share the executed copy with anyone else.

Who is an authorized signatory?
An authorized signatory to the Adherence Letter is an individual who has the legal authority to bind the adhering institution.

What if I am an investment or asset manager – how do I complete the signature block?
If you are an investment or asset manager and act on behalf of multiple funds, you must indicate the following in the signature block: “Investment/Asset Manager, acting on behalf of the funds and accounts listed in the relevant Master Agreement between it and another Adhering Party”. A separate Adherence Letter for each fund or account does not need to be submitted to ISDA. Further, no specific names of clients of the investment/asset manager will be publicly disclosed on the ISDA website in connection with the Dana Protocol.

However, in order for Market Orders to be calculated by Participating Bidders, each such investment/asset manager is required to provide a list of all funds and accounts that it acts on behalf of to each Participating Bidder that has (or whose affiliate has) entered into a Master Agreement with any of those funds or accounts. As provided in paragraph (1) of the Auction Methodology set out in Exhibit 3 of the Dana Protocol, on the Business Day prior to the Auction Date, the Administrators (Markit and Creditex) will publish a list of the Participating Bidders on their respective websites. In addition, contact details will be available for the Participating Bidders through their Adherence Letters on the ISDA website.

Can I change the text of the Adherence Letter?
No. The Adherence Letter must be in the same format as the form letter published in the 2006 Dana CDS Index Protocol. You may obtain a copy of the form Adherence Letter by visiting the ISDA website, www.isda.org and clicking on “2006 Dana CDS Index Protocol” and then clicking on “Form of Adherence Letter”.

Does it cost any money to adhere to the Dana Protocol?
No.

Entities Electing Not to Adhere to the Dana Protocol
What happens if my institution or fund does not adhere to the Dana Protocol?
If your institution or fund elects not to participate in the Dana Protocol, then you must bilaterally settle each of your trade(s) with each of your counterparties as such trade(s) relate to Dana Corporation. You will not be able to take advantage of the auction mechanic and should contact your counterparty or counterparties immediately if you do not plan to participate in the Dana Protocol.

Details relating to the Dana Protocol
Does adhering to the Dana Protocol affect my single name trades?
Single name trades will not be part of the auction process provided for by the Dana Protocol. Thus, single name trades on Dana Corporation remain subject to the physical settlement procedures in those trades’ governing documentation.

Who runs the auction?
The auction will be administered by Creditex and Markit and not by ISDA.

When is the auction?
The auction is scheduled for 10:00 a.m. New York Time on Friday, March 31, 2006. Details of the auction results will be posted at www.creditfixings.com.

When is the Cash Settlement Date?
The Cash Settlement Date is expected to be Wednesday, April 12, 2006.

How are accruals calculated?
The Fixed Rate on the Dana Portion shall accrue to but exclude March 20, 2006 for purposes of the payment due on that date. However, a rebate of the Fixed Rate accrual on the Dana Portion for the period from and including March 7, 2006, to but excluding March 20, 2006, will be added to the Cash Settlement Amount to be paid to Buyer on the Cash Settlement Date.