Octagon Investment Partners IX, Ltd. JPMorgan - Irish Stock Exchange

application of funds on deposit in or otherwise to the credit of the principal subaccount of the Currency Account
relating to each Currency Hedge Obligation will be as so directed, upon Issuer Order:
(A) in the case of amounts (including amounts received upon the sale of a Non-USD Debt Obligation)
received during each Due Period in respect of the Non-USD Debt Obligation forming a part of such Currency
Hedge Obligation or in respect of Eligible Investments that, if denominated in Dollars, would constitute
Principal Proceeds, at the sole discretion of the Collateral Manager:
(1) to the payment of Currency Hedge Termination Payments payable by the Issuer in
connection with the termination of the Currency Hedge forming part of such Currency Hedge Obligation as
a result of the sale, prepayment or default of the related Non-USD Debt Obligation;
(2) to the payment of Currency Hedge Principal Exchange Payments and all other amounts in
respect of any Non-USD Debt Obligation scheduled to be paid by the Issuer to a Hedge Counterparty under
the Currency Hedge forming a part of the Currency Hedge Obligation on the applicable Currency Hedge
Payment Date;
(3) at any time, subject to the Reinvestment Criteria, to the acquisition of additional
Collateral Debt Obligations that are Non-USD Debt Obligations and the entry into related Currency
Hedges, which are denominated in any Permitted Currency, if and to the extent necessary, after the
conversion of such amounts into another Permitted Currency pursuant to a Permitted Currency Exchange at
the Applicable Spot Market Exchange Rate;
(4) at any time, to apply toward the purchase of accrued interest in connection with the
acquisition of additional Collateral Debt Obligations that are Non-USD Debt Obligations only if and to the
extent that there are insufficient amounts available in the interest subaccount relating to such Non-USD
Debt Obligation (repayments of which will thereafter constitute Principal Proceeds); or
(5) at any time, in the case of Principal Proceeds remaining after reinvestment in additional
Non-USD Debt Obligations, to the Principal Collection Account as Principal Proceeds after the conversion
of such amounts into U.S. Dollars pursuant to a Permitted Currency Exchange at the Applicable Spot
Market Exchange Rate;
(B) at any time, out of Currency Hedge Termination Receipts paid into the principal subaccount of the
Currency Account relating to such Currency Hedge Obligation (at the direction of the Collateral Manager):
(1) to the payment of Currency Hedge Replacement Payments up to an amount equal to the
Currency Hedge Termination Receipts received by the Issuer upon termination of the Currency Hedge that
is being replaced; or
(2) if and to the extent that (x) the Collateral Manager, in its sole discretion, determines not
to replace a Currency Hedge and Rating Confirmation is obtained in respect of such determination, (y) the
termination of a Currency Hedge under which such Currency Hedge Termination Receipts are payable
occurs in connection with a redemption of the Notes in whole, or (z) such Currency Hedge Termination
Receipts are not required for application towards costs of entry into a replacement Currency Hedge, then to
the transfer of such amounts (except for accrued interest thereon) to the Principal Collection Account as
Principal Proceeds after conversion (if necessary) into U.S. Dollars pursuant to a Permitted Currency
Exchange at the Applicable Spot Market Exchange Rate;
(C) at any time, out of Currency Hedge Replacement Receipts paid into the principal subaccount of
the Currency Account relating to such Currency Hedge Obligation (at the direction of the Collateral Manager):
(1) to the payment of any Currency Hedge Termination Payments due and payable to a
Hedge Counterparty under the Currency Hedge being replaced; or
(2) if and to the extent that such Currency Hedge Replacement Receipts are not required for
payment of Currency Hedge Termination Payments under the Currency Hedge being replaced, then to the
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