Gresham Capital CLO IV B.V. - Irish Stock Exchange

(B) Unscheduled Principal Proceeds in the event that the Synthetic Security or the Synthetic
Security Obligor’s security interest was subject to an early termination other than by the
Collateral Manager; or
(C) Euro Principal Proceeds or Sterling Principal Proceeds, as applicable in the event that the
Synthetic Security was terminated at its scheduled maturity.
The Collateral Manager, on behalf of the Issuer, shall use commercially reasonable efforts to sell and/or
procure a full discharge of each Reference Obligation delivered to the Issuer no earlier than 30 calendar days
after the delivery to the Issuer of such Reference Obligation and before the date which is 12 months after its
delivery to the Issuer but in any event no later than the date which is 5 Business Days prior the Maturity Date;
provided that if the delivery of such Reference Obligation would otherwise satisfy the requirements set out in
the Collateral Management Agreement applicable to the acquisition of Collateral Debt Securities, the Collateral
Manager, on behalf of the Issuer, may elect to treat such Reference Obligation delivered to the Issuer as part of
the Portfolio by notice to the Collateral Administrator and the Trustee no later than the Determination Date
following the delivery of such Reference Obligation and such Reference Obligation shall be treated as part of
the Portfolio for all purposes.
(b) Sterling Collateral Debt Securities and Non-Euro Collateral Debt Securities
In determining any Coverage Test, the Reinvestment OC Test and any Collateral Quality Test, the
outstanding Sterling principal or interest amount in respect of a Sterling Collateral Debt Security will be
converted into Euro at the Spot Rate.
In determining any Coverage Test, the Reinvestment OC Test and any Collateral Quality Test, the
outstanding non-Euro principal or interest amount in respect of a Non-Euro Collateral Debt Security will be
converted into Euro at the Asset Swap Transaction Exchange Rate.
(c) PIK Securities
In determining the Coverage Tests, the Reinvestment OC Test and any Collateral Quality Test, PIK
Securities will be treated as having an effective rate of interest in respect of such PIK Security equal to the rate
of current interest in respect of the relevant PIK Security.
8. The Collateral Quality Tests
(a) General
The Collateral Quality Tests will be used primarily as the criteria for purchasing Collateral Debt Securities.
The “Collateral Quality Tests” will consist of the Maximum Weighted Average Fitch Rating Factor Test, the
Minimum Fitch Weighted Average Recovery Rate Test, the Weighted Average Life Test, the Minimum
Weighted Average Spread Test, the S&P Minimum Weighted Average Recovery Rate Test and the CDO
Evaluator Test. The Collateral Administrator will carry out the Collateral Quality Tests:
(i) as of the Target Date;
(ii) upon a substitution of, or a default under, a Collateral Debt Security;
(iii) as of the date of acquisition of any Additional Collateral Debt Security (which calculation shall, if
such acquisition is to be funded by a drawing under the Class A1A Notes, be made within 2
Business Days of receipt of the Drawing Notice in respect thereof);
(iv) the 20 th day of each month after the Target Date commencing in January 2008 (or if such day is not
a Business Day, the following Business Day);
(v) each Determination Date after the Target Date; and
(vi) with reasonable notice, on any Business Day requested by any Rating Agency or the Trustee,
(any such date, a “Measurement Date”).
(b) S&P Test Matrix and Fitch Test Matrix
166