ALBA 2007 – 1 plc - Irish Stock Exchange

In giving any consent to the foregoing, the Trustee may require the Issuer to make such modifications
or additions to the provisions of any of the Transaction Documents or may impose such other
conditions or requirements as the Trustee may deem expedient in the interests of the Subordinated
Noteholders.
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 Subordinated Note bears interest from (and including) the Issue Date. Each Subordinated
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 Subordinated Note Condition
(after as well as before any judgment or decree) up to (but excluding) the date on which all
sums due in respect of the Subordinated Notes up to that day are received by or on behalf of the
relevant Subordinated Noteholders, or (if earlier) the seventh day after notice is duly given by
the Principal Paying Agent to the holder thereof (in accordance with Subordinated Note
Condition 15) that it has received all sums due in respect of such Subordinated 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
Subordinated Note Condition 4(f). Whenever it is necessary to compute an amount of interest
in respect of any Subordinated 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 Subordinated Note Condition 6, interest on the Subordinated 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 Subordinated Notes
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 (ii) 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 Subordinated Note Conditions.
(c)
Rate of Interest
Subject to Subordinated Note 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 Subordinated
Notes will be determined on the basis of the provisions set out below:
(i)
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