This page describes how to enforce an eNote.

All transaction parties will enter into and be bound by arbitration agreements, which forms part of the eNote Registration Agreement (to which the issuer, first taker and all subsequent holders are bound). The terms subject all eNote-related disputes to arbitration in Switzerland. Arbitration avails the parties to business expertise, confidentiality, speed and very quick finality in dispute resolution.

In case the issuer does not pay a coupon or the principal of its eNote on time (= an event of default), these are the concrete steps:

1. Decide whether to coordinate with other investors

It is possible for every eNote investor to enforce the claims against the issuer individually, however, in practice the larger creditors often coordinate, which facilitates potential negotiations with the issuer. Interested parties may contact compliance@obligate.com to join other creditors in coordination for enforcement of claims against the issuer.

2. Send Notice of Arbitration

To initiate the arbitration procedure, the claiming party (“Claimant”) shall (electronically) submit a Notice of Arbitration to the Swiss Arbitration Court Secretariat of the Swiss Arbitration Centre (centre@swissarbitration.org). The Notice shall include, besides other aspects, details about the unpaid eNotes.

3. Arbitration Procedure

As a following step, the issuer (“Respondent”) will have to submit an answer. The terms foresee an expedited, document-based procedure and a sole arbitrator. The Claimant and the Respondent can together select the arbitrator, if they disagree, the arbitration court proceeds with an appointment. The language of the arbitration procedure will be English. Both parties submit statements to the arbitration court. Based on those, the court formally decides and issues an arbitral award.

4. Enforcement of Arbitral Award

The arbitral award is enforceable under the New York Convention on the Recognition and Enforceability of Arbitral Awards (“NYC”). This arbitral award can be presented to any relevant local public enforcement authority or court and will be granted enforcement without a further review of its merits. The NYC has been signed by more than 168 countries and has an outstanding reputation for adherence to it by its member states and their courts.

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