VALLAURIS II CLO PLC - Irish Stock Exchange

Coverage Tests would each be satisfied if recalculated following such
application, to the extent only that all other amounts required to be transferred
to the Payment Account in accordance with this Condition 3(i) (Accounts) for
application on such Payment Date in accordance with Condition 3(c)(i)
(Application of Interest Proceeds) and 3(c)(ii) (Application of Principal Proceeds)
would be insufficient to cause each such Coverage Test to be satisfied upon
recalculation following such application;
(c)
(d)
in the event of the occurrence of an Effective Date Rating Event the Balance
standing to the credit of the Additional Collateral Account will, on the first
Business Day prior to the Payment Date (and each subsequent Payment Date to
the extent required) falling immediately after the Initial Effective Date or Final
Effective Date, as applicable, be transferred as Principal Proceeds to the
Payment Account and shall be applied in redemption of the Class I Senior
Notes, the Class II Senior Notes and the Class III Mezzanine Notes in
accordance with the Priorities of Payment to the extent necessary until an
Effective Date Rating Event is no longer continuing;
upon confirmation by the Rating Agencies of the Initial Ratings assigned to the
Rated Notes of each Class after the Final Effective Date, the Balance standing
to the credit of the Additional Collateral Account shall, at the discretion of the
Collateral Manager, acting on behalf of the Issuer, be paid to the Interest
Account or the Principal Account for reinvestment in Substitute Collateral Debt
Obligations, provided that the amount paid to the Interest Account pursuant to
this paragraph (d) shall neither (i) exceed an amount equal to one per cent. of
the aggregate principal amount outstanding of the Notes Outstanding at the
relevant time nor (ii) reduce the CDO Principal Balance to an amount less than
the Target Par Amount;
(e) all interest accrued on the Additional Collateral Account to the Interest
Account; and
(f) amounts required for the purchase of Notes pursuant to Condition 7(i)
(Purchase of Notes by the Issuer).
(E)
Collateral Enhancement Account
The Issuer will procure that the following amounts are paid into the Collateral
Enhancement Account:
(1) on each Payment Date, all amounts of interest and principal payable in respect
of the Subordinated Notes which the Collateral Manager, acting on behalf of
the Issuer, determines at its discretion shall be applied in payment into the
Collateral Enhancement Account pursuant to, respectively, paragraph (X) of
Condition 3(c)(i) (Application of Interest Proceeds) and paragraph (P) of
Condition 3(c)(ii) (Application of Principal Proceeds), subject to the limit
specified in such paragraphs;
(2) all Distributions and Sale Proceeds (including any proceeds of liquidation)
received in respect of the Collateral Enhancement Obligations; and
(3) the proceeds of each Collateral Manager Advance to the extent not applied in
the acquisition of or exercise of rights under Collateral Enhancement
Obligations.
The Balance standing to the credit of the Collateral Enhancement Account from
time to time may be applied (in whole or in part) by the Collateral Manager,
acting on behalf of the Issuer:
(a) in the acquisition of any Collateral Enhancement Obligations or the
exercise of any rights thereunder in accordance with the Collateral
Management Agreement;
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