MOL Hungarian Oil and Gas Public Limited Company

The tenor of the Forward Start Loan is 18 months which can be extended by 6 months uponto MOL’s request. As part of this transaction EUR 600 million was cancelled out of theEUR 2.1 billion facility agreement, because it was largely undrawn.As the diversification of funding is a high priority for MOL, it initiated negotiations withalternative lenders about raising further funding.On 17 June 2009 MOL signed an 8 year, EUR 200 million loan agreement with EBRD(European Bank for Reconstruction and Development) to finance the strategic andcommercial gas storage project.The existing bank facilities ensure both sufficient level of liquidity and financial flexibility forthe Group.The system of the company’s internal auditThe Financial and Risk-management Committee of the Board is responsible for thecompany’s risk management and its supervision by receiving regular information on theefficiency of the risk management processes, making the necessary steps to determine thekey risk areas, and determining the principles on the internal control systems.In 2006 the General Assembly formed an Audit Committee from the independent members ofthe Supervisory Board. The Audit Committee performs its tasks as it is required by thecorporate law.The internal control system created by the management and described in Operational &Organisational Rules ensures the handling of the risks associated with the company’sactivities and achieving the corporate goals. It is the management’s responsibility to createand maintain the control system.The company formed an independent internal audit function that reports to the Financial andRisk-management Committee of the Board and informs the Audit Committee at the sametime. The Internal Audit function reports the Financial and Risk-management Committee andthe Audit Committee at least quarterly on the application of the internal controls. The Boardidentifies the potential control weaknesses and revises the related control activities using thereports submitted by Internal Audit. Internal Audit operates by an approved audit plan. Theaudit plan is proposed by the Financial and Risk-management Committee and it is approvedby the Board.Research and developmentMOL Plc deals with technology and asset development, product development, environmentalprotection, and patent - invention development within the frameworks of research anddevelopment. MOL Plc spent HUF 1.5 bn on these developments in 2009. (2008 yearlyspending amounted to HUF 1.4 bn)Sustainable Development (SD) & Health, Safety and Environment (HSE)Two years ago our Company successfully and organically integrated the principles ofSustainable Development into its operations, and these requirements are present in thecorporate processes, targets, decision-making mechanism, and last but not least there is aprofessional team in our organisational structure that can coordinate and support theseactivities. Every business unit has now its own annual sustainability action plan as a clearresult of the enhanced practice in this field. We have been participating in the SAMBenchmarking program for years, and we have been reporting our performance in15