VALLAURIS II CLO PLC - Irish Stock Exchange

7.11 Exercise of Warrants and Options
The Collateral Manager, acting on behalf of the Issuer, may exercise a warrant or option
attached to a Collateral Debt Obligation or comprised in a Collateral Enhancement Obligation and
shall request the Trustee to instruct the Account Bank to make any necessary payment pursuant to a
duly completed Acquisition/Disposal Order (as defined in the Collateral Management Agreement).
7.12 Margin Stock
The Collateral Management Agreement requires that the Issuer or the Collateral Manager,
acting on behalf of the Issuer, will sell any Collateral Debt Obligation, Defaulted Equity Security or
Collateral Enhancement Obligation which is, or at any time becomes, Margin Stock as soon as
practicable following such event.
7.13 Redemption or Purchase of the Notes
In the event of an optional redemption of the Notes in whole or upon receipt of notification
from the Trustee of the enforcement of the security over the Collateral or the purchase of the Notes
of any Class by the Issuer, the Issuer, or the Collateral Manager acting on behalf of the Issuer, will
(at the direction of the Trustee following the enforcement of such security), as far as practicable,
arrange for liquidation of the Collateral in order to procure that the proceeds thereof are in
immediately available funds by the Business Day prior to the applicable Redemption Date or date of
purchase and sell all or part of the Portfolio, as applicable, without regard to the foregoing
limitations, subject always to any limitations or restrictions set out in the Conditions of the Notes
and the Trust Deed.
7.14 Block Trades
The requirements set out in this Section 7 (Management of the Portfolio) shall be deemed to be
satisfied upon any sale and/or purchase of Collateral Debt Obligations on any day in the event that
such Collateral Debt Obligations satisfy such requirements in aggregate rather than on an individual
basis.
7.15 Eligible Investments
The Collateral Manager, acting on behalf of the Issuer, may from time to time purchase Eligible
Investments out of the Balances standing to the credit of the Accounts, provided that no such Eligible
Investment may be purchased at a price above par and provided further that, such Eligible
Investment shall not have a maturity beyond the next Payment Date if the Collateral Manager, acting
on behalf of the Issuer, determines that such Eligible Investment shall be used to make payments
pursuant to the Priorities of Payment on such Payment Date.
7.16 Synthetic Securities
Synthetic Securities may not be acquired by the Issuer and comprise a part of the Portfolio
unless and until the programme of activities of Natexis Asset Management is extended by the
Autorité des Marches Financier (or any relevant successor authority) to cover the management of
these assets, in accordance with applicable French law and regulations (or any other Collateral
Manager of the Issuer has such regulatory authority in respect of such assets at the relevant time).
Subject as provided in the preceding paragraph, the Collateral Manager, acting on behalf of the
Issuer, may from time to time acquire Collateral Debt Obligations which are Synthetic Securities. A
Synthetic Security is a security denominated in Euro which may be a swap transaction including,
without limitation, a credit default swap, total return swap, debt security, security issued by a trust or
similar vehicle or other investment (excluding any equity investment) purchased from or entered into
by the Issuer with a Synthetic Counterparty, the returns on which (as determined by the Collateral
Manager) are linked to the credit of one or more Reference Obligations but which may provide for a
different maturity, payment dates, interest rate, credit exposure or other credit or non-credit related
characteristics than such Reference Obligation(s).
The entry into, or acquisition of, any Synthetic Security will be subject to Rating Agency
Confirmation from S&P, which confirmation shall specify whether any Synthetic Security entered into
or acquired shall be treated as a Senior Secured Loan, a Second Lien Loan or a Mezzanine
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