The Settlement Bank's liability for a Principal under the Letter of Guarantee and Indemnity on any Settlement Day shall be the Net Debit Balance of the Principal on that Settlement Day, together with interest thereon.

The Settlement Bank's maximum liability for a Principal under the Letter of Guarantee and Indemnity at any time on a Settlement Day (exclusive of liability for a Block Trade affirmed in accordance with Rule 13) shall be a value that is equal to the highest positive value (together with interest thereon) derived from any of the following formulae; i.e.

(A - B) or [(A - B) + (C - D)] or (C - D)

Amended on 3 October 20093 October 2009.

Notwithstanding anything herein and subject to Rule 13.3.2, the maximum liability of the Settlement Bank for a Principal under the Letter of Guarantee at any time on a Settlement Day shall not exceed the Guaranteed Value. The Guaranteed Value shall be a value equal to the highest Principal Net Debit Cap fixed by the Settlement Bank for the Principal for the period beginning from the earliest Settlement Day for which transactions whose due date for settlement is the current Settlement Day could be matched and validated in advance and ending on the current Settlement Day together with all interest thereon.

Example 3B: Assume that on Settlement Day 1, the Principal Net Debit Cap stands at $2 million at 9.00 a.m. The Principal proceeds to submit a receiving instruction valued at $2 million for settlement on Settlement Day 2. Assume also that the earliest Settlement Day for which advance submission whose due date for settlement is on Settlement Day 2 is Settlement Day 1. The Settlement Bank then reduces the Principal Net Debit Cap to $1 million at 12 noon on Settlement Day 1 and the Principal Net Debit Cap remains unchanged at $1 million on Settlement Day 2.

Settlement Bank's Liability: The Principal's liability on Settlement Day 1 is zero and therefore the Settlement Bank's liability for the Principal under the Letter of Guarantee and Indemnity on Settlement Day 1 is zero. However, the Principal is liable on Settlement Day 2 to pay CDP $2 million. The Settlement Bank's liability for the Principal under the Letter of Guarantee and Indemnity on Settlement Day 2 is $2 million, notwithstanding that the Principal Net Debit Cap on Settlement Day 2 is $1 million. The Guaranteed Value for the purposes of Settlement Day 1 is $2 million, as this is the highest Principal Net Debit Cap for Settlement Day 1 and the Guaranteed Value for the purposes of Settlement Day 2 is also $2 million as this is the highest Principal Net Debit Cap for the period beginning from the earliest period for which advance submission due for settlement on Settlement Day 2 could be made (i.e. Settlement Day 1) and ending on the current Settlement Day (i.e. Settlement Day 2).

Amended on 3 October 20093 October 2009.