ALBA 2007 – 1 plc - Irish Stock Exchange

amount of any Note Principal Payment due on the Payment Date next following such
Calculation Date, (ii) the principal amount outstanding of each such Note on the Payment Date
next following such Calculation Date (after deducting any Note Principal Payment due to be
made on that Payment Date such deduction not to be made for the purposes of future
calculations with regard to Conditions 4, 5, 9 and 10 if the Note Principal Payment which has
become due has not been paid) (the "Principal Amount Outstanding") and (iii) the fraction
expressed as a decimal to the sixth point (the "Pool Factor"), of which the numerator is the
Principal Amount Outstanding of the Notes of that class (as referred to in (ii) above) and the
denominator is the denomination of the Notes. Each determination by or on behalf of the Issuer
of any Note Principal Payment, the Principal Amount Outstanding of any Note and the Pool
Factor shall in each case (in the absence of negligence, wilful default, bad faith or manifest
error) be final and binding on all persons.
With respect to each of the classes of Notes, the Issuer will cause each determination of a Note
Principal Payment, Principal Amount Outstanding and Pool Factor to be notified in writing
forthwith to the Trustee, the Swap Counterparty, the Paying Agents, the Agent Bank and (for so
long as the Notes are listed on one or more stock exchanges) the relevant stock exchanges, and
will immediately cause notice of each such determination to be given in accordance with
Condition 13 by not later than two Business Days prior to the relevant Payment Date. If no
Note Principal Payment is due to be made on the Notes on any Payment Date a notice to this
effect will be given to the Noteholders.
If the Issuer does not at any time for any reason determine (or cause the Cash Manager to
determine) with respect to each of the classes of Notes, a Note Principal Payment, the Principal
Amount Outstanding or the Pool Factor (as the case may be) in accordance with the preceding
provisions of this paragraph, such determination may be made by the Trustee in accordance
with this paragraph and each such determination or calculation shall be deemed to have been
made by the Issuer.
(d)
Optional Redemption
On or following the Payment Date on which the aggregate Principal Amount Outstanding of the
Notes is equal to or less than 10 per cent. of the aggregate Principal Amount Outstanding of the
Notes on the Issue Date, the Issuer may (but only if directed on any date after such Payment
Date by either (i) the holders of a majority of the then Principal Amount Outstanding of the
Subordinated Notes or (ii) the Special Servicer) give not more than 60 nor less than 30 days'
notice to the Trustee and the Noteholders in accordance with Condition 13 to redeem all (but
not some only) of the Notes at their Principal Amount Outstanding together with accrued and
unpaid interest, provided that prior to giving any such notice, the Issuer shall have provided to
the Trustee a certificate signed by two directors of the Issuer to the effect that it will have
sufficient funds, not subject to any interest of any other person, required to redeem the Notes as
aforesaid and to pay or make provision for all amounts ranking in priority thereto.
(e)
Optional Redemption for Tax Reasons
If the Issuer at any time immediately prior to the giving of the notice referred to below satisfies
the Trustee that (i) on the next Payment Date the Issuer or any Paying Agent would be required
by reason of a change in law, or the interpretation, application or administration thereof (1) to
deduct or withhold from any payment of principal or interest on the Notes (other than in
respect of default interest) or (2) if the Issuer is unable to enter into a replacement interest rate
swap in respect of which payments are not subject to withholding or deduction, the Interest Rate