ALBA 2007 – 1 plc - Irish Stock Exchange

(i)
(ii)
in the event that the aggregate funds (if any) calculated in accordance with the Pre-
Enforcement Interest Priority of Payments as being available to the Issuer on any
Payment Date for application in or towards the payment of interest which is, subject
to this Condition 4(f), due on each class of Notes junior to the Most Senior Class of
Notes outstanding on such Payment Date (such aggregate available funds being
referred to in this Condition 4(f) as the "Junior Residual Amount") are not sufficient
to satisfy in full the aggregate amount of interest which is, subject to this Condition
4(f), due on each class of Note junior to the Most Senior Class of Notes outstanding
on such Payment Date, there shall be payable on such Payment Date, by way of
interest on each such junior Note, a pro rata share of the Junior Residual Amount
available to each relevant class of junior Notes; and
in the event that, by virtue of the provisions of sub-paragraph (i) above, a pro rata
share of such Junior Residual Amount, is paid to Noteholders of each relevant class in
accordance with such provisions, the Issuer shall create provisions in its accounts for
the shortfall equal to the amount by which the aggregate amount of interest paid on
each class of Notes junior to the Most Senior Class of Notes outstanding on any
Payment Date in accordance with this Condition 4(f) falls short of the aggregate
amount of interest payable on the relevant class of junior Notes on that date pursuant
to the other provisions of this Condition 4. Such shortfall shall accrue interest at a
rate for each Interest Period during which it is outstanding equal to the applicable
(i) in the case of the Sterling Notes, Note LIBOR and (ii) in the case of the Euro
Notes, Note EURIBOR, plus the Relevant Margin for the relevant class of junior
Notes for such Interest Period, as applicable. A pro rata share of such shortfall plus
any interest accrued thereon shall be aggregated with the amount of, and treated for
the purpose of this Condition as if it were interest due, subject to this Condition 4(f),
on each class of Notes junior to the Most Senior Class of Notes outstanding on the
next succeeding Payment Date. This provision shall cease to apply on the Payment
Date referred to in Condition 5(a) at which time all accrued interest shall become due
and payable.
Payments of interest or any other amounts due on the Most Senior Class of Notes are not deferrable.
(g)
Determination and/or Calculation by Trustee
If the Agent Bank does not at any time for any reason determine the Rate of Interest and/or
calculate the Interest Amount in accordance with the foregoing paragraphs, the Trustee shall (i)
determine the Rate of Interest at such rate as, in its absolute discretion (having such regard as it
shall think fit to the procedure described above), it shall deem fair and reasonable in all the
circumstances and/or (as the case may be) (ii) calculate the Interest Amount in the manner
specified in paragraph (d) above, and any such determination and/or calculation shall be deemed
to have been made by the Agent Bank.
(h)
Notifications to be Final
All notifications, opinions, determinations, certificates, calculations, quotations and decisions
given, expressed, made or obtained for the purposes of this Condition, whether by the
Reference Banks (or any of them) or the Agent Bank or the Trustee shall (in the absence of
wilful default, bad faith or manifest error) be binding on the Issuer, the Reference Banks, the
Agent Bank, the Trustee and all Noteholders and (in such absence as aforesaid) no liability to
the Trustee or the Noteholders shall attach to the Issuer, the Reference Banks, the Agent Bank