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

assigning Selling Institution should have little effect on the ability of the Issuer to continue to receive payments of
principal or interest from the borrower. The Issuer will, however, assume the credit risk of the borrower.
A portion of the Principal Collateral Value may consist of Participations. See "Risk Factors—Nature of
Collateral; Default Risk—Bank Loans" for a discussion of factors to be considered in connection with the Issuer's
investment in Participations. At the time a Participation is acquired by the Issuer, the percentage of the Principal
Collateral Value that represents Participations purchased or entered into by the Issuer with a Selling Institution,
when combined with the Synthetic Securities purchased or entered into by the Issuer with such Selling Institution as
the Synthetic Security Counterparty will not exceed the individual percentage set forth in the table that is included in
the definition of Synthetic/Participation Sublimit for either the Moody's credit rating or the Standard & Poor's credit
rating of such Synthetic Security Counterparty (unless, with respect to the Standard & Poor's credit rating only, the
Issuer or the Trustee at the request of the Issuer notifies Standard & Poor's and requests that Standard & Poor's
modify the Standard & Poor's CDO Monitor accordingly), and the percentage of the Principal Collateral Value that
represents Participations purchased or entered into by the Issuer with the Selling Institutions (or their affiliates)
having the same credit rating, when combined with all Synthetic Securities purchased or entered into by the Issuer
with Synthetic Securities Counterparties having such rating will not exceed the aggregate percentage set forth in the
table that is included in the definition of Synthetic/Participation Sublimit for such credit rating.
Reinvestment Period
The "Reinvestment Period" will end on the first to occur of (a) the Distribution Date occurring in April 2013,
(b) the date of an Optional Redemption of the Notes pursuant to the Indenture and (c) the date of the acceleration of
the Notes pursuant to the Indenture following an occurrence of an Event of Default. In the event the Reinvestment
Period has been terminated due to such acceleration of the Notes following the occurrence of an Event of Default,
the Reinvestment Period will be reinstated if (i) such acceleration of the Notes has been rescinded and annulled in
accordance with the terms of the Indenture, (ii) the related Event of Default has been cured or waived, (iii) no other
events that would terminate the Reinvestment Period have occurred and are continuing, (iv) the Issuer shall have
obtained the consents to such reinstatement of the Collateral Manager and the Majority of the Controlling Class and
(v) the Issuer shall have obtained a Rating Confirmation with respect thereto.
The Coverage Tests, the Reinvestment Overcollateralization Test and Collateral Quality Tests
The Coverage Tests will be used primarily to determine whether interest may be paid on the Class B Notes or
the Class C Notes, whether any amounts are distributable to the holders of the Preferred Shares, whether the Class A
Notes, the Class B Notes or the Class C Notes will be required to be amortized on an accelerated basis and whether
the Collateral Manager may reinvest proceeds received upon the sale of Collateral Debt Obligations in new
Collateral Debt Obligations. Measurement of the degree of compliance with the Coverage Tests for the Notes will
be required on (a) the Effective Date and (b) after the Effective Date, on each Measurement Date and as part of the
Reinvestment Criteria. The "Coverage Tests" for the Notes will consist of the Overcollateralization Tests and the
Interest Coverage Tests. The "Overcollateralization Tests" will consist of the Class A Overcollateralization Test, the
Class B Overcollateralization Test and the Class C Overcollateralization Test, in each case as generally described
below. The "Interest Coverage Tests" will consist of the Class A Interest Coverage Test, the Class B Interest
Coverage Test and the Class C Interest Coverage Test, in each case as generally described below. The
"Overcollateralization Ratios" will consist of the Class A Overcollateralization Ratio, the Class B
Overcollateralization Ratio and the Class C Overcollateralization Ratio. The "Interest Coverage Ratios" will consist
of the Class A Interest Coverage Ratio, the Class B Interest Coverage Ratio and the Class C Interest Coverage Ratio.
The Reinvestment Overcollateralization Test will be used to determine whether a portion of the Interest
Proceeds that would otherwise be used to make distributions to the Preferred Shares on Distribution Dates occurring
on or after the Effective Date and during the Reinvestment Period will instead be deposited to the Principal
Collection Account as Principal Proceeds.
The Collateral Quality Tests will be used primarily as criteria for purchasing Collateral Debt Obligations. The
"Collateral Quality Tests" will consist of the Weighted Average Rating Factor Test, the Moody's Diversity Test, the
Weighted Average Life Test, the Weighted Average Coupon Test, the Weighted Average Spread Test, the Weighted
Average Recovery Rate Test and the Standard & Poor's CDO Monitor Test. Measurement of the degree of
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