ISDA has prepared this brief summary of frequently asked questions to assist in your consideration of the Edscha AG European LCDS Auction Settlement Terms (the "Auction Terms").

THIS FREQUENTLY ASKED QUESTIONS DOES NOT PURPORT TO BE AND SHOULD NOT BE CONSIDERED A GUIDE TO OR AN EXPLANATION OF ALL RELEVANT ISSUES OR CONSIDERATIONS IN CONNECTION WITH THE AUCTION TERMS. PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER THEY DEEM APPROPRIATE PRIOR TO USING THE AUCTION TERMS. ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION OR OTHER DOCUMENTATION MAY BE PUT.

Scope of Transaction Coverage Relating to the Auction Terms
Will the Auction Terms affect my single name LCDS trades?
Yes. Single name ELCDS trades that incorporate the Credit Derivative Transactions on Leveraged Loans Standard Terms Supplement published on October 18, 2006 (the “Standard Terms Cancellable Form”) or any predecessor to the Standard Terms Cancellable Form or amended form thereafter will be subject to the Auction Terms, provided both parties adhered to the ISDA 2009 European Cancellable Form Loan CDS Protocol.

What other credit derivative transactions are affected by the Auction Terms?
LevX® trades that incorporate the iTraxx® LevX® Standard Terms Supplement for use with Credit Derivative Transactions on Leveraged Loans published on 30 October 2006 or any predecessor to such terms or amended form thereof and in each case referencing a LevX index published by International Index Company Ltd., will be covered by the Auction Terms, provided both parties adhered to the ISDA 2009 European Cancellable Form Loan CDS Protocol.

What credit derivative transactions are not affected by the Auction Terms?
Any credit derivative transaction that is not an ELCDS transaction, that is not documented in one of the ways described above, or that does not reference Edscha AG Mezzanine Loan will not be affected.

Auction
Who runs the auction?
The auction will be administered by Creditex and Markit and not by ISDA.

When is the auction?
The auction will be held on Thursday May 28, 2009. Details of the auction results will be posted at www.creditfixings.com.

Cash Settlement Date and Accruals
When is the cash settlement date?
The cash settlement date will be June 8, 2009.

Physical Settlement through the auction
I want to physically settle through the auction, what do I have to do?
Parties who wish to deliver or receive Deliverable Obligations may place a Physical Settlement Request with a Participating Bidder.  A Physical Settlement Request is an order to sell or buy Deliverable Obligations at the Final Price.  A Physical Settlement Request must be submitted in the form of the Customer Physical Settlement Request Letter set out in Exhibit 3 to the Auction Terms.  A form of Customer Physical Settlement Request Letter can be found on the Edscha AG Credit Event page. Parties wishing to submit a Customer Physical Settlement Request Letter should contact their dealer that is acting as a Participating Bidder in advance of the auction. A list of Participating Bidders will be available on our website.

Following the auction, each party that submitted a Physical Settlement Buy or Sell Request that is matched in the auction will be treated as if they had entered into an agreement with the relevant Participating Bidder on terms equal to a Representative  Auction-Settled Transaction (RAST). Parties that submitted a Physical Settlement Sell Request must send a Notice of Physical Settlement to the relevant Participating Bidder, specifying which Deliverable Obligations they will deliver in settlement of that transaction.  A form of Notice of Physical Settlement is contained in Exhibit 2 to the Auction Terms.  The deadline for sending this notice is specified as the "Notice of Physical Settlement Date" in the Auction Terms.