ALBA 2007 – 1 plc - Irish Stock Exchange

The Trustee shall not be responsible for monitoring, nor liable for any failure to monitor
compliance by the Issuer with the above covenants and will be entitled to rely upon certificates
signed on behalf of the Issuer as to compliance.
Condition 4: Interest
(a)
Period of Accrual
Each Note of each class bears interest from (and including) the Issue Date. Each Note shall cease to
bear interest from its due date for redemption unless, upon due presentation, payment of the relevant
amount of principal is improperly withheld or refused. In such event, interest will continue to accrue
thereon in accordance with this Condition (after as well as before any judgment or decree) up to (but
excluding) the date on which all sums due in respect of such Notes up to that day are received by or on
behalf of the relevant Noteholders, or (if earlier) the seventh day after notice is duly given by the
Principal Paying Agent or the Trustee to the holder thereof (in accordance with Condition 15) that it has
received all sums due in respect of such Notes (except to the extent that there is any subsequent default
in payment). Any interest shortfall shall accrue interest during each Interest Period during which it
remains outstanding in accordance with Condition 4(f). Whenever it is necessary to compute an amount
of interest in respect of any Notes for any period (including an Interest Period (as defined below)), such
interest shall be calculated on the basis of actual days elapsed in a 365 day year or a 366 day year if the
last day of such period falls in a leap year.
(b)
Payment Dates and Interest Periods
Subject to Condition 6, interest on the Notes is payable in arrear on 17 September 2007, and thereafter
quarterly in arrear on the 17 th day in December, March, June and September in each year, unless such
day is not a Business Day, in which case interest shall be payable on the following day which is a
Business Day (each such date, a "Payment Date"). "Business Day" (other than for the purposes of
Condition 6) means a day which is both (i) a day other than Saturday or Sunday on which banks are
open for business in London and a Target Business Day. "TARGET Business Day" means a day
(other than a Saturday or Sunday) on which TARGET (the Trans-European Automated Real-time Gross
settlement Express Transfer system) is open. The period from (and including) a Payment Date (or the
Issue Date) to (but excluding) the next (or first) Payment Date is called an "Interest Period" in these
Conditions.
(c)
Rate of Interest
Subject to Condition 7, the rate of interest payable from time to time (the "Rate of Interest") and the
Interest Amount (as defined below) in respect of the Notes will be determined on the basis of the
provisions set out below:
(i)
in the case of the Sterling Notes;
(a)
for the purpose of determining the London Interbank Offered Rate ("LIBOR")
for three month sterling deposits (or, in respect of the first Interest Period, an
annual rate obtained by linear interpolation of LIBOR for two month sterling
deposits and LIBOR for three month sterling deposits) ("Note LIBOR"), on
each Payment Date, or in respect of the first Interest Period, on the Issue Date
(each a "Sterling Interest Determination Date"), the Agent Bank will
determine the offered quotation to leading banks in the London interbank market
for three month sterling deposits (or in respect of the first Interest Period, an
annual rate obtained by linear interpolation of LIBOR for two month sterling