Free Memorandum - District Court of Federal Claims - federal

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 1 of 15

CLARION CAPITAL~ LLC
10 Bay Street Westport, Connecticut 06880

:Mark Hutton

CF Adviso:i x.VU, LLC

Please find attached a summary of transactions done in "Clearmeadow InvestmeNts, LLC?" for the calendar year 2001. You will find a hsting of all transactions done and a cash summary for the parnership.
2001, was a year in the curency markets that was marked with uncertainty. For much of

the first

three quarters, the major currencies stayed in a fairly tight range waiting for some stimulus to
cause a break-out. After the unfortunate events of September 11th, this uncertainty was augmented and the ranges established m most currencies were strengthened. We were left with markets that were 'volatile in a range', meaning extremely choppy but not breaking QUt. The only exception to
this was the Japanese Yen which weakened materially in the last quarer of

the year.

2002, has begun wJth a bias towards a stronger US Dollar. The feeling in the curency markets is

that global uncertainty has once again established Our curency as the safe haven in the world. Our

effectiveness in handling the Afghamstan war, and OUr showing of strength militarly has
underscored to the rest of the world OUT predominant position. However) there are issues to be

considered before jumping on the dollar band-wagon:

1) US Equity market - are corporate earings which are weak already going to be
greatly eroded if curent accounting practices are changed and corporations forced to

show their real debt on the balance sheet.
2) Busp Administration - wil W. be able to maintain the nation's focus on his agenda

against terror.

3) Additwnal Terror - will there be furter mcidents against the US and its allies! I am
not sure that the market really knows how to react to this type ofuncertamty.

Thank you for using 'Clarion entity' as a part of your overall investment strategy. We appreciate your business and hope to be of service in the future.
Please call the following with any questions:
Damel Brooks
Cynthia Soriano

Marin Ganon
Baron Ganon & Co. Accounting :: DEFENDANT'S (203) 259-7876

Claron Capital, LLC (203) 341- 8585

Claron Capital, LLC Back Office

(212) 750-1774

l ~Æ
Telephone: (203) 341-8585
Facsimile: (203) 341-8755

22-P

46
98

'-.... -""'~'-l' '-L-ii i- i,l-D, LL~
Statement of Account
As of 12/29/01

10 Bay Street, Westport, CT 06880

Tel: 203-3418585 Fax: 2D3-34 i 8755

Page 2 of 15

.. .l
'"
I D l,ìJ 0 i
i

en ..
Clearmeadow Investments, LLC
Beginning Cash BalanC
S
Trade Date

287,500.00

.,..~
$

Q
(2,500.00) 3,122.00

1M

z tç\r ~Q..

~l~I

10/2212001

CHF CALUStrlke price: 1.6590 (Exp. Dt. 1112ZfG1)
Sold CHF CALL
$

10/29/2001

Filed 08/22/2007
11/7/2001 11/1612001

JPY PUTJSlrike price: 121.1500 (Exp. Dt. 12/06/01)
Sold JPY PUT
$ $

(2,500.00) 3,315.00
S

11/21/2001

CAD CALUStnke price: 1.5985 (Exp. Of. 12106101)

Trade Expire
11/21/2001

(2,500.00)
$

GBP CALUStrike price: 1.4190 (Exp. Df. 12106/01)
Trade Expired In The Money
$

$

(2,500.00) 4,602.00

Document 30-5
10/15/2001

Long Market Linked Deposit (MLD)IStrike price
Fixed Interest (3.665% annualized actual/360)

USD/JPY 124.65
usa 150,163

Depos¡t Amount EUR 27,472,520

r..
USD 25,000,000

Premium Paid EUR 2,747,252
Bonus Coupon (Variable Interest Income)

USD 2,500,000 USD 2,800,000

10/15/2001

Short Market Linked Deposit (MLD)IStrike price
Fixed Interest (3.665% annualized actual!360)

USDfJPY 124.67
usa 150.163

Case 1:05-cv-01223-FMA

Premium ReCived EUR 2,717,033
\i-\\wu\

Deposit Amount EUR 27,472,520

USD 25,000,000

Bonus Coupon (Variable Interest Expense)
Net Market Linked Deposit (Premium) Net Market Linked Deposit Variable Interest

USD 2,472,500 USD 2,769,200
"~âi~Ûf:(~?I~(J~~~.Q H

$ 30,800,00

Net cash from trading activity
$
Clarion Capital Fee

4,339.00
$

Dividend earned YTD Tax Withholdlng
CADIGA TEX (Buy )/S ell

$

1,01589
$

(10,000.00)
(37,71) (676.92) (40.00)

Wire fees

$ $

(. ..

Page 1 of 2

Z t

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 3 of 15

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48

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 4 of 15

- OC1l~l"1~12001
ii 'Iii: CI.EARMBADQW J'NVESiMeN'S. LLC Alto; Mr, JIUO!t s.tfn. C.ntl~)' &. Sed~
"'a~: J J 4.722-1713

from: LiliQnl GoWdlll / IRD Pe.
Tel: 212-271.71.5 F_: 212-27fl-7650

Rc; SO NY Ref# 2001017104

CONPIRMATrON FOR CURR.ENCY LINKED DI:SJ,. SWAP

The purp of this Insinimimt tthiii "ConftrmAtion"') ls to COlf1nn the teS and
condili.oM of 1M rrin-sions irii.nid inlo blweri us on th Tra Date i¡peified Oolow.

The clfinitioiii and prvisions cOllMincd in th 200 ISOA Pcfini1Kmi II publishe by

ihlt intemaiiøt\l Swa~ and Deties Association. Inc. (the USwa DeOnitio'1 an in th

l~R I'X and Cwrno Option DefinÍliofJ BI publiah by me Inl~lanl Swa- aM
OerivlUivea Aøiation. Inc-, th timerging MukelB Tr Aøoiation .l th foreien

nxçhanlc Commluee (te "1998 DonlilMa," 8rd togttha with th Swap DefiniticlU the
"OonnItIOlis') are lnonfrau into ibi~ Contirmat. In IhL\ even ofan)' iniioiial~nc bcwen
ihe ~Wiip neflnition!: an tho 1998 Definitions, the 1998 PofinÎt1orn will gonrn- In the evant of ,

au)' inøoiisísiecy betWØO the Derinitjo~ -iid t1l& ConfirmMiltm, Uil!i ConrinLo wUl govcm. i
a) Thl. Conflrmatlon evideces 8 coffPI81..nd bindinii i¡rement betwe you and

ul I. to the tenm of the TranaoßlI to wlìch thi5 Ci.firmaiii~n relzi~, '" adition, if we ha..e

I\t alread~ Mine so. you and Wl ~e to use all resonable dfol'li t. negotiate. ex and dolivOf an .l~neni In me fu of ,he ISOA Ma5t.r Agrment (Muhlcurrcy-C~ ~order),
including the) Scbeiilo th",ro that fom'! . pa theref (the uiSIJA fomi'. except thai

~uhpargrh (II) t'r Sttion 2(0) ihtC'( wil not apply iInd with I\h oter rnoditlcaloiiS as yOI.
8I~ ... will În gcm f'lt agre. Upon tr ..~ection b)' yoi and us Pr Junn ßt aircemenl. this

Culifiril1aii,m will supplemenl. fbmi ¡i11 or. ant! be subject IØ that agroeent A II pnwliiki 1,1l1liiinud iii ~r irioO'i. by rcr~ntt in that ~iimeni upon Iis exetio wil guv¡:rn lhi:;
Ciiiinrmiiti('l ~KCCf1i l' expressly miidìli-d ~1l;W, Until you íld we ClXtltute and dellv(,:r 1hilt 9~rl!ein~nt. thii; Coifimllllnii. tC'ge1her with all oth~r documelll$ re~rring to ihe H~OA Form

(each II '~.l!!)lujo,f,) (lnnflnTling tranllaclmis (each a "l'ranSA~') entered into betweell u$ (liotwìms~lldjnß iuyitiing to tlie oontrar in a Cotirmation). lfiitl supplement, form a par nf, and he sl1bject to. an aßremeot in thfi farm nf rho ISDA F~inn at if you llnd we tw e.ul~ an
"iveement iii such form (but witout an,) Schule rJJC09I fo th i1lectlOf of ..~'I as the

govcmiiiii law aiid US PDlla. as the TerinAtion Currncy) on the Tt"de Pale: or ihlt
Tl1l1ilCIiOllS Mnfírmed t\ere, In th~ e~ni Many inconiìi-teriy betwee the provision:! of Htal
'lr~lt"acli~il~.

agreemenT &.nrl this ConfiriliatìOl, this Confinnation will pre\lajl for the l'urrlS of 1hø!l

111 rhtl even! IhKl OepoÎl R.oclplont &hll not tu"ll reived fl complete, duly e)~uted

ISDA Fmm from il- n"poi~r no later than &even (7) 8u-lness Dayll af1tl i~ Tra~ lJate.
rkpo:ÚI Rc\.piçnl ~1iidl hiV~ ui" ri~i in its discretion, WI sh.ll not be reuiro, 10 1~IIinail any Transaction under tiiis ConfirmBiil)n,

17-P iC IU,r. iiii _...,""~.
NI "" 1t1~
Ul¿\~ 21& 600

~ .

DEFENDANTI5 EXHIBIT

49

I

Ib

86

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 5 of 15

b) i) TI1Cl follong Wrs fòrm a part of the çUlcy-linic depoit .w

TranllatiDf coñrmed ticrdy~

RefereJl: 200 i 01? 14
Tra Date: October 15, 200 I

Dopo$itor; CLBAeADOW INVesTME' LLC
Depo.llt Rec.ipient: So.;. Geerle. NY
o.it Amount EUR 27.472.520
Depolt Sm!ement Amount EUR i7.472S2()

Fixed ~lt~: 3.6650 %
Preium Desit Rate: euJC 4,395,604 (' ~ Absolut)

~y Cout Fraon: 301360
Date of Desit
Matrit Dae;

Ocbe 16, 200 i
Deber 14,2001
10;00 1m New York

"

Explratlon Time;

ßxpiration Dat:

Debe 14,2001
Dember 18, 200 I
BUR 2,747,252

Se~mlJnt Oa:

PrIum:
Premium Paymen Dlte:
Refer Eiuhang6 Rate:

Ocer 16,;r!
USDISPY

Tñrchala R.te:

USD/JPY 124,65

ii) Othe applieale tes ar 58 fullowil:

Business Day COrlcntion~
Calcull\tlon Agent:

lOIIo'ilni 8atking Da~;
SocIet Oenmle, New York Bmncn

Addl'B fur /'otice to the Depo~t()r:

CLEARMEAOW INVESTMENTS, LL
223 South Woi Sirct
Wi¡;!1 ita Kasa 672 i.3

:2

50
87

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 6 of 15

Addre&$ fur notic to the Degslt Røolplft: Socìet GOMi. , N.w YMl Br
1221 AvCIue orth Am..ii-

New y~ NY 10020

Transaon eonflrmed heby:

c. Thii follong ter~ for a pa f)f the initil llt cure cxcna¡e

Refnc:
Tra 0.: Oc~ 15.2001

SellU.lt f)tø: Oobc i 6.20 I
Spot ~lle; Cl.EARMSADOW lNVBSTMEN, LLC

Spo Pur Societ Oen.rale New Yor Brach
Curry Sold: U8D 27,500.00
Cum Pad: BUR

30,219.78

Spot&ch;e IW: 0.9100
d. On th &plrtion Da tM Depoit R.iptet will conve th Euro
amount pab~ puruat to s.on 3.. to LJ nìte St Dollars II N tlen spa ~iwge ni for

liuçh çurrl'el~ In the Spot Marlf and wil pa su Dolla fó ite Deitor on the Scement

Date :it ~ iiccunt spcified fp the Depositor in th rSDA Mat Agreit ben 1~

parde!!.

0) i) On the Mftrity Diú. du Depoit ~piBnt shl pa 10 th Delt.

an amount equal to th sum or (I) th Depciglt ~ttleait Amount, plus (iì) the Fixed Yield, plus (ii) the PNh¡m Yield, ifall.
ii) "fixe YIeld" mC*s inie on the Deit Amou fr the Da of
Desit to the Mal'ty Date calculated At the Deposit lntere$! Kate on Uie basis of the

o.y Count Frion.

Sxpiratioo Da. the Rll're E. Ra~ on th Spe Mark iii equal to or ~

íií) "Prmium Yiehf', if an)', mea~ an amoum oql to the prouct ()f the Prium Depolt Rat (fll) and lhc Pepoit Amount. If. at tte 6&plraimi Time on the

th the Threoold Rci. en the Setemant DA the OQpoit Tùlpient shall pay to the DtOJlrr tle Preium Ylold.

Iv) If, at tho ExiraiOl Time on the BXlratin Dioi ttc Rece
w!ln¡i RA Is le& Thn me Thruhold Rate: no pament ofth~ ?rium Y¡.ld ~1I
be du~; no oiw ~ymOln or indemnity ¡liII ht duç by enter part tD th othòc 1I~ Il reult
3

51

88

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 7 of 15

of such R~~ ~ Ra: aod the Prium shall be te/nod by thCl f)peii
Rlll;lpkmt.

v) For th pu~ ö'thia Seøtlori 3:
"Søot Mamt mc5ì tt~ i10baJ spt mreì,¡ exch maret be ba
(IndependclH of the Ca1culAtiQR Apn indlor ~rolc IllIUling spnt fori¡n giuban¡Je

tnu&aOtlS concluded vi iilcl1iC\ deing sy" aa whld shall be cW.emod to ~

opn cotiuously any wek 1fm Mondy .5:00 a.m. Sydney tJme to Fridy 6:00 p,m.
New York timc-

"'Deltr Bwin~-n mäni any diy Wbic Ii a Banking Day in thii plia whci. thc: Add.. of1l Ooltor ¡¡ Icliii,
d) Eacli pllrt rep~ to tne omr pa that (a) acept a8 pro\ide in Ule ISDA

other pa with ret to the Traaio comici bc. (b) it tw ~ knolc~ And
condition

Por, It doe not rely on an r.pi-WiDl (whe wr or orl) whatsev made by su
A and iiiks ofitis imsatlon (;) il is not ~Iying on aiiy inmnnation or oomiuiicaion

JihisictiQtl to il'ci appraisc and qiiemd 1bê finaial, ieaal ant! la COrm"

(writi or orl) tr iho ot pay u invøiii advicc or A recommendation, and it

~lrnowll!dge that the oter pa has not prvided any invesen advice or rcmcnio to "
enlcr thil1'sac!1on or any aiiiurci as to th explCl relts of this Trsact. (d) to the

oxtet ne it has consult it ~ Indopndi lel, finacial. ta and otm- adisors an

has deine tht this Traotlon Is a-proprll for it ii mad th dIQiaion to en int this Trasaion upo it own judgmen and the adice of i-uch advisors, and (.) &l oth. ~y Is no
acing as il fldlliary for or adlii to It.

5. CLBARMEADOW iN~STMBN, LLC rereent! to Soiet Genar th
CL5ARMEADOw INVESTMENTS. LL dOO8 (lot reive doiw of mon¡~ fN third

parties and is not engaed in thc buiness ofrelvln~ depiÌU ofmonio fr", third Jlrtles

i

6. Notwl1stadlng Sectlon 7 of the iSDA Fon thlri Cofiation tgptot wiil

the CQplete ISDA fgnn, may. pursnt to a d~i)' eXlCiieri Nlsi¡;mnent an Accetance A.ll~"'Mt 11' tM form of ~hlbit A 10 the. 8Qheule that fonnll 8 pa of the s¡~ned lSDA Fon.
be a~¡igned by Depositor to a single corption, iimite Ji¡bUtb COfpaY. partrship or oter

entity that Is majcrlty-QWled and con-rollod ~ Deìwr, but such asign shall be i;bj~ to
Sllc\ Setion 7_

7. CLf,ARMEAOOW INESTMBNTS, LLC ~ thm in the event
CLEARMeADOW INYBSTMS'NTS. L.LC is in ~falt under MY r.he agement beeen it

~d 80ìete Generle, New Yon., Soci~ Generale. New York wil have ch. rlsht to set-o,
counteclaim or wi1hold paymt in repe ofany paym¡int due hereundor by80illll Qenele,

New York against any iinpald II\C1btneu of CLe.R.MEAOOW INVESTMENS, LLC \l~r
such oter ii~ent.

4

52
89

Case 1:05-cv-01223-FMA

Document 30-5

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Page 8 of 15

axeelng tte Otpy of this ConrnailOl enc~ fo ~ purpse an remios it to us at tho addl' l1rs appeng abe,

Pleii cofirm that th fooing corry ~ fò th ics or 0I( a¡ment by

Yours ail'lY,

SOCIETE OeNEMLS, N6W YORK 8RANCH

~~;¿¿Title: Vice PrMdent

Name.: ~ ¡an Gowdie
titlo; Spcialiiñ

By: ~

~. /' J _'

Centime£ and agreed as of th date Mt
Above writ:

/ CLEARMEADOW fNvas~ t.LC

Niuo: t\ ~
Title:

8)' ~~~

5

53 90

Case 1:05-cv-01223-FMA

Document 30-5

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Page 9 of 15

II

Octoer ¡ S. 20 i

To: CLEARM~ADOW INVESTMRN, LLC
Al1ll: Mr. Jasn Safl. Catley &. Suaeii

from: Uliami Gowdio ¡iltD Det

T~I: 212-27&-1145
fax: " I ~-~'B. 7650

ln:; 214-722-1713
Rc: sa NY Refii :200101715

CONFIRMTION FOR CURR£CY l-INKEp DfìPOSIT SWl\l

Thii PUl'8 of thii lrwrunient (this '~finnlIiorn ïs to cofìmi lhe terms an
condillMS of the Transactions ente ¡ni(l betwn us on the Trae Date llpèificd below

ll-ii Ó4lÏniiil'l\f and pro\lisioo$ clmtaine In the 200 ISOA Definitions as pubij~h.c by

,hI. lntcl1iional SWlp' and Pelvilves Asiation, Inc. (the "SWlp Detliilticns'') and in th

t98 FX and Curreni:y Option Definitions. aa p\Jblished by th Intematonal Sweps and Dt\'lillveJ A!lciinion, lnç.. th Riiiering Marke1fò TI'de Assoia1iOl an the ~orign
Hxchlnae CommltttJ (to "199 ~finitiQTt" an togeiher whh th Swap ()ñniti~ th
"DetinilÎOl\1 ar il\Cnai Into ibis Confirmation. to me event or an)' IncoJliS1eocy tiw~

the swa Defll'itìOns and the 1998 DcflnltIOQi. th 1m DenltlOiS will govem_ In th event or.
any inc(lfsistimØ) ~ Ule OatlnirÎons a1d this Con ii rmai

ion this Confirmatio will goer.1

I. Thls ConflrmaOn e'id~ a oomplem and binding aar-nt ben )'C' an
us lU 1.1 LM ters ofdie TransactiOlI to whIch thb ConfirmlitiOf rela. lii addillOl. if we have

I'l already done so. )'Otl and W~ .g~ to use all rønablc effom io netial .,xecte and.

deliver ii agreeent in 1M ~rm nf the ISOA Maner Agroeent (Mùtici.rrc:Y-Cross 6oet).
including th Schedu~ dieró0 funl forms a part ihoot (the: "ISDA lon"), excet that

Sunp..~~raph (ll of S~ion 2(e) lhif will not aply iind with such OÙ1ör moificaions as yo
ßiid w~ wil hi goo faith agee, Upon lhe exouiion b:y you and uS of !Iuch an .~nient, ihiii

Confiiimltion will ~upplemcnt, form ¡: of, and be subje to 1h a~ein. All provrBion.

cimlained in or i~Oltod by reference in that agrement Upo it ~eilÎtin will ¡OVem this

Confirmation ex.ept as expreøly mO(lfld below, Uttii you an wt ~e an dehvci lMI
ai:reme

rlt, thil Conl1rmation. tog~ihr with ill oth doclJotenll ~rt:rriig to tho lSPA Form (each II "'oofirm8\lon") cQiifimiing trnstiOl (oach a "TiiBaiori) enter intI; beween US
lInd be imbJect tCl, !In asreeem in the form or (he ISDA Form as if )'011 and W' tud exe\"'~ an

(nolwiih.iindlng anything to the oontrry in 11 Confirmation), ihlll surplemci, lbrm a pa of.

tlgromem in lIuch form (out ..illul 21I1Y sohulo ex.cet for the election of "law" ~ IDe
iiiweming law and liS IXlla~ as th~ TermInation CUlcy) 00 the Trade f5i. ~if the

"rlnsatìont cxmnrnH~d hc:by. In me event of an incoruìstnçy bøtee ttr pr()\liiiions of that iigrenlet\1 and ,hili Ct\nfimiiitloii, this COnflnlAiiim wil preail tbr the purpClIN of thes
lniiiiiiicilcill.
In the IIlient thir Depositl' shall not llve received.a ooplwltl, duly c~eçLlt4d ISDA Fiinn
from ihe ~pt'~1t Redplent no later than sevin (7) Busioess Day¡ afir the Trll PaUl. oeitor

~hiill have th right in in di5orj~n, hut shiill not he rouirod to termiiwc MY Trasaction under
¡hiii Cl'lfjnnatj~n.
2. ! The following tòrmi ftinn a rw of the currllC~iìn'rd deposit swap

TrnSlcltilJ\ Clllnrmod lieretiy:

~~
wi 212 271 GOOO

~ DEFENDANT'S I

iì.~l .l oM 1M ~
~ \' t-lOQO

/7
18-P
54
9

l EXHIBI

Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 10 of 15

R.t.~
Trae Dat:

200 I 0 171 5

Ocolx 15, 200 1
Socleæ Generlo. NY

Deltr.
Diit ReipJe~
ne~1t Amóunt:
DepoSiT Selement AmO\or.
FIxe Depolt Rate:

CLEARMRADOW fNVESTM£NTS LLC
SUR :¡7.47220

EUR Z7.472,520
3.6650 %

Pr ium Depoit Ra:
Day Cont FratiOl:

SUR 4,347,2~~ (I ~ .824 ~ Abiihilc)
30/360

Dett of Deit

(ktobo 16, 200 I
December 14, ~ooi

Matii Pa:

Expiration Tìme: 10:00 am New yot
&pirAlon Datö: Dembar 14.2001
settlemen Date: J)hc 1 &, 200 1

Prium: EUR 2.717,033
PrimiL"m Payment Da: OQiobor 16,2001

Refmnce t.itchal'ge Rat: USO/JlY
Threshold Rate; USDIJlY 1:l4,67
b. Other appljeale ters ar .. follows:

Biisiness Day Corvimon: followil119ankirig Da~
Calculation Ailli, Societ Goerale, New York Brnoh

Addres for notiGe to the Depoìtor; Societ Geer, New York 8n1cm
1221 Avet\l oftle Aml.ion

New York NY lOOiO

2

55

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Case 1:05-cv-01223-FMA

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Page 11 of 15

Ad¡Jre f'ör notce ui the ~jt Recipient:

CLEAR-MEDOW INveTMENT' LL.
2233 South WMt .Str
Wiohlta Kasi 672 13

c. On UlEKpiraìon o.i- Ule Desit Reipient wíJ convert the :Buro llOUftl payable. pi~uat to Selo(\ 3.. to Uoitè Sia~ 'Dllar li tlui mOI spt ex¡t rate fO IUh
currcies in tho Spo Miret and wiU pa ~ct Dolla to dle Depoitor on the s.l-i-i Dan:

a1 the 4Ccount spçified for the Dettr In th ISOA Maste Agren beee th p4rtioa

3. a. On ISe Mltirl Da. the Deit Itlii~lrint shall pay to the Dspallto
An amOunt equal to ih sum of (l) th Deit Seleent Amøunt, plus (ij) th FixQd

Yiø14. plUl (iii) thø Ptium Yield. ¡farl.
b. "fidd ylqi\d" mea interest on th Deit Amount fr th Dale of Deosit to tho M- IÃre ealeuiat at the 'Dit Tnte Ra on ~ balii of th
o.y Count frion.
C. "Pl"lu1' Yield", if MY, mea an amout ec¡ual to tht pruct of

the

PrtWT l1poit Ra (fW) and th Oeit Amount. If. It me Exration Timll on tn,

Expiraon Da, th Kefece 5xcanic lU on th Spot Maret is eqal to or grte
th th Threhold Rate, on the 8eulomi:nt Da th Dt$Ît Recipient shall ~)I to th
Deositor th Prmium Yield.
d. If. ai the Bxlnrion Time on th &piralian Pa, th Refere
&chllge Rate is les il tho Throhold Rate: no payment or the Preiu Yield shall
b. dll; 11 ot payment iir indonnity shall be due by eltb part ui 't other as a relt

m such Rc~ Exchange Rate~ and the Premium sball be rlined by ih Deit
Reciplent.
e. For the p~~os of1hii Seoon 3;

"Spo Maiet" moans the global sp foign exge maret betwel! bas
(inder.t of the Calclation Agent) emiloi brkM lncludin¡ apt forign cxchangè tnsaionii ooolud via electric ~lIng symns, and whlcl shll be deøed to be

Op5 cotinuously an)' wek frm Monday 5;00 a.m. Sydney time to Friday 6.00 p.m,
New YOl lime,

"DepcsTtr Business Oa~' m-iø any day whioli ia a 2ankln¡: Day in the plao

where tl Addro otØle De or is locted,
4. Each pary repre to the OUler pa th (a) ext as provide in tt~ ISDA Fonn, iT does not rely On any rentation (wheWcn writt or on) ~tBoe madø b~ fluch
oth.r pa with repe ro th TrAsliction eofirmed he1, (b) it has the knowledge and sophiitica1io to Independently appraÎ~ and unóe me finacial, legal and ta lells,
condItions and ris\a of

this Tranucton, (c) it is not rolylrig on any infotlon or comunlcatJO~

(writ. or oral) frm the ather pl1' as invetment idvice or a reommencl1on, ~nd ,i
aclnowtgei tl\t ui Other PArt' I1s not provid,a any ín"estment ~v¡e or re..mcndallt)n to

entcr Ù,jE ~iOt Or any ~ura~ ai to the exped rcroulti of this Tra~;on, (d) to thi:
:1

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CXlet n~ l' hu aonBuft it ow indepde legal f1nancill, f4 an other advisr" and
üClini as a fiduciar for or adise to It.

has deine that thiti 'fraaation l! approai for It ind mad tho ckiiiki 10 0I1O InUl i:ii Tl'oi upo it¡ own judgmemt and the Ili;lee of !luoh ad \I lAll ll (c) tM oil pa ¡, not

5. CI.EARMBADOW lNV£S7'ENTS, LLC rets to Societ Oenele Ui
Cl. F.A R. MEAOOW INESEN, LLC doe not reive ikii of moni- frm third paR-

and is not ei~ in th busInes of riivlng dopS1 of mOlÏC ft thll' paea.

o. NotlT1lng S~lon 7 C) th lSDA For, tliìi COfirmation, ~bc wit
the compJe ISDA For, may, puiian to a duly eucd Asignent i1d Aocpianee

Agremen In the fb of l!~iblt A to the 8ce(ulti that fonn a pa of the signed ISPA Form, be mlgned by DesItor to a !lIngle corMfiCii\ t1mltc liabilit compay, panerip Of oth entit)' the II majDrlly-Cid and cotrlled b)' OoiWr. but iuch ualgne MIll be wbJoet to
.aØQre firs appnng iibove.

such Secion 7, Pleu oofinn that lh foreing ~cUy am fo th tce of ~llr -iOPt

by execng ,he co of this Cofirmnon anloso fu th purpse an returning it to IJ at å't

7. CLMJMOOW lNVESTMBNS, Ltc ~i¡ th in ih e\cn
CLeARMEADOW INVESTMENTS. LLC Is In defalt. un~ an)' other qrim be ii

and &olei Gence. New Y~, ~iei Oll\ie. New Yar wil hae the ri¡ht to set-off,
counteiiiim Or wrthhold paytllt in. rèpe of any paymnt due hiJndcr b) Soie Oenole. . 'New Yor agnst any unpad indebtne of CLEAEADOW JNVESTMENTS, LLC i.ndør .
suh other Ilfmint.

PIA ocmflnn tht the ft)f~goin8 ~ly ~s fo the tcir9 of our agrent by

exeuting the copy of this Conrnation eoclogo for th puilO and mumll\8 it ~ us at the

addr firs apring abve.

You sinooly.
socrfI GENERALE. NBW VORi(

BR.CH
Name: -ilimi ROse m

By. C. &!
Titi~ Vice P~í~ir \
By:

Naii¡
Title;
Confirmed aM agree as of

Ltß~, ( 1.~
Speialis

the dat firs

Ab~e writtn:

/ BY'~~
Name:: ~
írte:

Cl.EARMEAOOW INESTMEN, LL.C

4

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CLEARMEADOW INVESTMENTS, LLC 2233 S. West Street Wichita, Kansas 67213

(dl;.s i 2001

VIA TELECOPY (214) 740-7780
Mr. Craig Brubaker Deutsche Banc Alex Brown
200 Crescent Court

Suite 500 Dallas, Texas 75201

Re:

Dear Mr. Brubaker:

This letter constitutes your authorization to transfer the necessary funds to

complete the purchase of the market linked deposits in the notional amount of US $25,000,000 and to also pay the premiums totaling US $2,500,000
associated therewith from the above-referenced account to Societe Generale, New York ABA.
Please contact me if you have any questions regarding this matter.

Very truly yours,

"" ~ .
Ma k E. Hutton, Manager

19-P
58

;; DEFENDANT'S

J EXHIBIT

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Case 1:05-cv-01223-FMA

Document 30-5

Filed 08/22/2007

Page 15 of 15