Division (5) Cap on new lending. Consistent with the objective to work out the merged entity’s post-NAMA loan book over a 10-year period and commitment (3) above, the merged entity’s net commercial loan book will not exceed plan forecasts by more than […] in any single year during the plan period, excluding currency movements. That cap applies to the full commercial lending activity of the merged entity, including lending described under point (7).

In addition, the following lending commitment will apply to the mortgage loan book: The merged entity shall limit further advances to contractually committed amounts and amounts arising as part of the restructuring of existing mortgage facilities. The aggregate total of further residential mortgage advances is capped at a maximum of […] for the period starting 1 January 2011 and ending 31 December 2012, and […] per annum thereafter.

Specific lending commitments on the commercial book. The following specific lending commitments will also apply to the commercial loan book.

1. (a)

   Contractually committed but not yet paid-out amounts: The merged entity may advance funds under contractually committed but not yet paid-out loan facilities. However, such payments will not exceed a cumulative amount of EUR 1,4 billion over the entire plan period with regard to the merged entity’s legacy loan book, consisting of EUR 1,1 billion of contractually committed, but undrawn facilities and EUR 0,3 billion of contractually committed off-balance-sheet guarantees (as of 30 June 2010 interim accounts). Revolving facilities will be counted on the basis of the overall limit amount rather than on individual draw downs.

2. (b)

   Additional financing to existing regulatory groups: The merged entity may not provide additional financing which is not contractually committed at the time of the approval of the restructuring plan (in line with commitment (2) above). As an exception to that prohibition, the merged entity may provided additional amounts to existing regulatory groups if it complies with the commitment in point (3) and

   • It is strictly necessary to preserve the value of the loan collateral (e.g. to cover collateral maintenance, insurance, tax, security, insolvency or legal costs); or

   • It is otherwise related to minimising capital losses and/or enhancing the expected recovery value of a loan or other asset on an NPV basis (e.g. meet essential investment working capital or liquidity needs of the underlying business/regulatory group).

   • The additional financing is subject to the following limitation:

     • If the nominal exposure to the regulatory group concerned is below […], the additional financing will not exceed […] of the nominal exposure;

     • If the nominal exposure to the regulatory group concerned is between […] and […], the additional financing will not exceed […];

   • If the nominal exposure to the regulatory group concerned exceeds EUR […] million, the additional financing will not exceed […] % of the nominal exposure.

3. (c)

   New regulatory groups

   New lending to new regulatory groups: The merged entity may lend to a new regulatory group only where the following conditions are cumulatively met:

   • Proceeds are used to reduce the exposure of an existing regulatory group; and

   • The transaction overall does not increase the total net exposure to the merged entity; and

   • The new lending minimises the expected capital losses and/or enhances expected recovery values (as measured by NPV) compared to other restructuring or foreclosure strategies; and

   • There is no capitalisation of interest (interest roll-up).