SERIES C EURO-DM S E C U R W LIMITED

FOR THE YEAR ENDED 31s DECEMBER 2O1Q

Contents

S R I E S C EUJRO-DM SECURITIES LIMITED Ff NANGIAL S7ATEMENB

FOR THE YEAR ENDED 31ST DECEMBER 201Q

Directors' report

Independent Auditor's report

Balance sheet

Statement of cornprehenslve income

Statement of changes in equity

Statement of cash flow

Notes to the financial statements

Page

fhe dlredors submit h l r report and the audlted Rnmial statements b r the year ended 31st Decmber 2010.

INCORPORAnON

Tho Canpay was LPcaporaed h W, Chanel Wands, on 7th Hamh 1%.

The Company tdds a thbty year Schuldschsln fswred by Kraditdnstat fUr WWmufbau (W, Germany.

Tm results for the year are shown In the Stffement of CwnpFdwrnsive Incm en woe 7.

The d M o r s do not recommend the payment of a &idend In mspect d the year (200q NIL).

Campank (Jersey) Law 1991 requires tha dlractors to prepare Ranclal m n t s for each flnanclal year, whld glve a t r u e ~ n d ~ v i e w d t h e o f ~ a l r r o f t h e m p s n y a n d t h s profltandlos8fwthatyear.

* wlect suitabk amunthg pollctas and then wly them co&tently; * make fudgomsnls and estlmte6 that are reasonabk and prudent, * state whether applkable aammtIrg standards have been folbw& subw to any rnaterld departures

dlsdascddexdarnd bth4tbraddstatements;ad * p s p * e t h e ~ ~ s t a b c m r n e P m a ~ ~ b a s b u n l s , D b I n a p p o p ~ t o p m u n e W t h s

O a n p a n V w l l l u m t l n u e h ~

The Dks*ws confirm they haw m p l k d wlth all the above requirements h preparing the flnancbf statements.

TheDinctware~farkeePlnOPclper~npmords,whkhdlsdmewithnasaMbkaruracyItay tbmthc~inanddposi t landthecanpmymd~areMethcmb~mct thcRnaddst l#cmants~wl ththe Campanler (Jersey) Law 1991. They haw general r e s w for tdtlng such step m are reanably open to thsm to safeguard the assets d the nrrrpany and to prevent and detect fraud and other Imgularitlas.

S o r s s s t h e ~ s r s m w a r e , t h s r C L I ~ ) ~ ~ l n f O n M t i O n d ~ ~ C a n ~ ~ a r e ~ , a r l & D L a b D I h a c W ~ t h e ~ t h a h e w s h e ~ b h a v e ~ a b e n a r a d l n e t a h & t o r n a l r e ~ o r herseW swae cf any &want at& In- and to ssgbllsh that Mc Company's audllom are aware of that lnfonnstlon.

S T A T P n E N l Q P E ~ R e s # m D I I # c W f n a P l l ' H L I S S l E R wah rsagdm ~1001 /109FCdt tmEuopaa Unlon(th49f%'R)D&eUiveobective.), theDhe*asafths CompaycarRrmlpWbCStofthe*Imow(cdgatM&HwKBlSDlteme~twcheyeardg)usatn*adfslrvisw of the assets, Ilabllitles, flnanclal pmltbn and pofll and krs of the Company as required by the applkable eMuntlng standards. The Report of tha DAsctws g h a Mr revltw of the development d the Company's bmlness, flnandal posltfon and the impoctant events that h m occurred durlng the thandal year and thelr hpact on the Flnandal Statementr The Prhdpal rW and unaergbrtles faced by thc Cmpaq a disdosed In the no& of these flmbd stimmarb.

The directors of the Company who served durlng the year and subsequen* were as follows:

R M Rlchards (resigned 31st luly 2008) SPHwvey J P Le Maktre 0 E Smlth (resigned 24th August 201 0)

SECRETARY

Lloyds TSB (krsey) Management Lbnfted acted as Swetary throughout the year.

11 - 12 Espbn&, W Box 53, St. H* Jersey Channel &Ian& JE4 8W

EES Trustees I n t e m a t i i ~ l Limited Queensway H o w Hlgrove Street St Heller 1El 1ES Jersey

Commerzbank AG Malnzw LarulstraRe 151, 60327 Frankfurt am Maln Frankfurt G m n y

Pricewaterho~ Coopers CI LLP acted as auditors during the year and have expressed thelr willingness to continue In offlce.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SERIES C EURO-DM SECURITIES LIMITED

Report on the financial statements We have audited the accompanying financial statements of Series C ~uro-DM Securities Limited (the "Company") which comprise the balance sheet as of 31 December 2010 and the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.

Directors' responsibility for the financial statements The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards and with the requirements of Jersey law. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and pIan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or emor. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Company as of 31 December 2010 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and have been properly prepared in accordance with the requirements of the Companies (Jersey) Law 1991.

Report on other legal and regulatory requirements We read the other information contained in the Annual Report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. The other information comprises of only the directors' report.

In our opinion the information given in the directon' report is consistent with the financial statements.

This report, including the opinion, has been prepared for and only for the Company's members as a body in accordance with Article 113A of the Companies (Jersey) Law 1991 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. -* Michael Byrne For and on behalf of PricewaterhouseCoopers CI LLP Chartered Accountants and Recognized Auditor Jersey, Channel Islands 18 November 2011

v ( E x p r d in eum ;OOOs unless o t h e d stated)

Non-current ussesta Held to maturlty flnancial assets Prepaid ercpense

Currant asseta Receivable from nbted party

TOTAL ASSETS

Capital and raoenres (amibutabb to !he ecmpany'r equlty holders) Ordlnary share capital 6 Mamubted losses

rWAL EQUITY

wLrnEs

Nan-cunmt IIabllMes Financial liabilities at w n q ~ w d cost

Curmnt liebilrtlw Wade payable and accrued expenses

TOTAL EQUTPI AND LIABILITIES

The financial 5

The naLes on pages 10 to 17fonn an Inbgral part of these flnancial statements

Page 6

SERIES c EURO-DM S E C U ~ E S uMmP - ED 31s DECEMBER 2014

(-raged in Euro 'OODp unleor othemim stated)

a o m

.* MES 2010 2009

INCOME

Interest income

ADMINISTRATION EXPENSES

Secretarial fee Acmuntancy Audk fee Exempt company fee

Lem: Reimbursement

FINANCE C O m

Amwtlsatlon charge Prepaid expenses

NET LOSS FOR THE YEAR

The notes on pages 10 to 17 form an inh?gal part of these tlnamlal statements

W S C EURO-DM SECURXTXES LIMITED

STATEMENT OP .

31ST DECEMBER 2010

( E x p r e d In Euro '000s unless otherwise Mted)

Shw Accumulated Totel Capltal Lo- WulW

Net loss for the year attrikrtabk to ~QUW - 7 7 holders

Balance at 31 December 2010 _ ! l o e ) ( i o i ) 5

Net loss for the year alblbutabk to eqrdly - 4 4 holders Balance at 3 1 DeCamber 2009

The n o l s on pages 10 to 17 fwm an integral part d these financial statemen&

B R YHf! WAR W D 31ST DECEMBER U#j-

(Expressed In Euro '000s unlesr otherwise -1

CashnoM from operating ecblvitlap Cash used in operatlorn Interest received

Net cash genemted from operstlng actlvitlac

Cashrlmvs from f inandng actlulties Redernptlon d bearer bonds

Net Increase / (decrease) e)n cash and cash equlualbna

Cash and cash equhralenta a t beglnnlnp of year

Calh and c a l equivalents a t end'ot the year

L m b d o r a Q x

Adjustments for:

Interest Income at effectlve Interest rate 9

Amatlsatlon of dkwunt on bearer bonds at effective Interest rate 5

Changes In worWng capital:

( I n w e ) f decrease in receivable horn related party

Increase / (decrease) In tmde payable and accrued exbnres

Decrease In prepald expenses

The notes on pages 10 to 17 form an lnteqml part of these flnanclal statements

The principal aomuntSng pollcles applbd In the preparation of thpse flnnnchl statements am set out bebw. These golldes have been applied condstently to aU perlods presented unless othawk st8ted.

A m h me is a negaWo equw positkm s a 31 December 2010, h thc Dkectors' oplnlon lhe Canpany k 1 1 1 considered ta be a golng mncem RS ths Company k$ abk to meet I5 llabllltles as they fall due for tlm next 12 months and In accordance wkh an undertaking dated 2nd July 1986, Cmmerzbank AG as promoters of the ksue of Zero Coupon Deutsck Mark bearer bonds as desnibed h note 5, have agncd to reimtwnc the Company for all cxpems Inamd.Theex~andtheQ*raspondngrembuRementareshomIn~StaamKntdCompehensiveIname.

1.1 BllEb d pnprmtl#t Thca flnanclal statements have been prepared under the historlcel mst convention and h acmrrlanqe with Internatbnal Flnandal ReportlnO Standards (IFRS), kswd by Intematbnai Arcwntlng Standards Bolwd (IASB) and International FlMnCial Report4 I~erpretatbn CQmnRtee (IFRIC) I ~ L r r i .

ThcCanpanyhmacpulredaSchulQmehlssuedby-RfUr-(WM-&AG, funded by the proceeds of zero coupon Deutsche Mark bearer bands. The bonds sre Issued with a maurlly date cormspondlng to the payment date on ths Schukkcheln ban.

The Company nMhu has, nar wltl hew, any othw as& a IbMllt*s and hss ~ w e ~ n t e d not to cntn into any olher transadlans occ@ In O)nnccOkn with the SctwJdschein.

It should be noted that the term of lssue of the Deutsche Mark beamr bonds and certain of the agnwnems mntaln provlslons that I changs are made More the final redemption dam of the Sthuldxheln then the cakuk th of the amunts due Is on the bask set out In such tenns.

~hese fharsl slatemen& have been prepared kcplng h vkw that the tmmadh mentioned In the pwious pwapaphs are not rcpaable. Totd Income a r W g hom the SchukbM and W q e m a lrrmrred on the RModd Ilsbllltks (excluding the expenses petalnmg to redemption of such lifibflr#s) are rscognlsad in Me income statement durlng the ktm of the Schuldscheln and Deutsche Msrk bearer bonds respectively so as to produce a constant rate of return wer thelr term.

~ p e p a r a t a n d ~ ~ h ~ ~ l ~ ~ ~ r e q u i m h h a d d c n t a h ~ ~ c s t i m s l c r It a h requires rnanegement to em* Its judgement in the pmcess of applylng thc Company% accounting pollcfes. T k areas Involving a higher degree of Judgement or cornplexlty, or areas where essurnptlons and estimates are slgn,Viant to the fln~ndal statements, am disclosed h rote 1.2.

There have been no new standards or amendments to erdsting standards whlch are effective 1 January 2010 and appflcable to the CMnmny.

1 -TINO WUCIES I-

b) Standards and Inhpremt lons to rxlstlng s t a n l r d s that am not efkUve snd hew not been early adopted by tha Company The Company has not early adopted any standards or Interpretatlons.

IFRS 9 was first Issued in November 2009, at which tlrne It consisted of pmvklons relatkrg to the recognition aml

c) Standanis, amurdnwnts and intwpmtatlono e f f d w fn 2010 but not refevant

The following standards, amendments and lnterpretatlons to pubUshed standards are mandatory for accountlng periods beglnning on or aRer 1 Januw 2010 but they are not relevant to the Company's operatlons:

a lFRIC 17, 'Dlstributiohs of non cash aSSe$ to wnrer'; IAS 27 (Revised), 'Consolidated separate finandat statemen@ IAS 38, (Amendment) Intangible Assets;

lFRS 2 (Amenknents), 'Group cash settled Share-based payment transctkms';

a IFRS 3 (Revised), 'Business cornblnatlons' (effective fmm 1 July 2009): IFRIC 16, 'Hedges of Net Inwsbnent In a fbrelgn operation'; lFRIC 16, Transfers of aseb from customers' (EfFeclive horn 1 Juh, 2W).

Adoption of these standards, amendments and lnterpretatlons do not have an impact on CMnpany's financial statements.

1.2 CllUcal accountlng estmbs and judganmtm EsMates and Judgements are continually evaluated and are based on hlstorieal experlenee snd other factors indudlng expectations of future events that are bdkved to be reaso~ble under clrcumnances.

1.2.1 CriUat accountlng wtlmsbes and,mmptions The Comwnv makes estbnates and asurn&ons mnaernlng the future. The resulting accounthg estlmates wlll, by defmitlon, seldom equal and the related adua~ results. The estlmates and assmptlons that have a significant risk of causlng a material adlustment to the carrying amounh of assets and ltabllltles wlthln the next flnanal year are addressed b e b r

A m w t h d cost of Invcrtn#nt In Schuldaheln and Deut#ha Ma* baarat bands The amortlsed cast d the ShukkMn and Deutsche Mark bearer bonds are calculated uslng the estimated effeectlve Interest rate. Effective Interest rate was cakulated based throughout the I fe of the ShuldscMn and bearer bonds. The Company used its best judgement in estimaflng on the estimated cash In- and cash wmows the cash kwsfor the cakubtion of effedlve interest rate, The amortlsed cost of the Schuldscheln and Dellbche mark bearer bonds would be over w under estlrnated were the cash flom used to cakubte the effect~e interest rate to diflrer Rwn the manapment estimates.

m p a l m t d held ta rnntutity nnsmlol a& The Company follows the guidance of [AS 39 to determine when a held ta maturity financlal asset Is Impalred.

The determlnatbn requlres slgniflcant judgement In making this judgement, the Company evaluab, among other factors, the financlal health and business outlook of the Investee indudlng factors such as Industw and sector performance, changes in the operathnal and Inandng cash Row.

In accordam wlth IAS 39, the Company assses at each balance sheet date whether there Is any obpctlve evidence of impalrment; the determlnatlon requires slgnifkant judgement. I n rnaklng this judgement, Ihe Company evaluates, amng other bctors, the f l ~ n d a l heath and businea outlook d the SNldscheln Issuer (Land BadmWOrttpmburg) including factors urch as lndustty and sector pertwmance, changes In operational and financing ashflow,

The Dlrecton d the Company am of the oplnion that Stale of BaderrWemburg is (Inandany backed by tha Federal Rspubllc d Garrnany.

The Dlrechs ofthe Company have a duty to revlew the impalrment for year ended 31 December 2008 In acmrdame wlth lnternetlonal Flnancml Re~r t ing Standards (IFRS), aml to conclude whether the Company wwld suffer an addltlonal charge far impalrment

The Dlrecton of the Company are of the oplnion that the investment is k t currently impaired, although propose to conanue to monltw the sltuatbn, given the current adverse economic comlitlons.

FOR THE WAR ENDED 31 ST DECEMBER 2010

1.3 Hnanclal assets and li#litkr held at emortloed cost

Held-to-matwlty Investments are nowderlvlve flnandal assets with fked or detemhable payments and fixed rnaturitfes that the management has the posltive intention and aMMty to hold to maturity. The Company has deslgnated Its Investment In the Schuldscheln as held-to-maturity Investments, as the Company has the positbe lntentlon and abillty m hold the Investment In $e Schuldrhein to Its maturity. Flnancbl liabilltles arise when company has a contraawl obllgatlan to dellver cash or other flnandal assets to another entlty.

The Deutsche Mark bearer bonds issued by the Company are deslgnated as flnandal llablltles carried at armtised cost.

1.3.2 Recognition and meusurement IAS 39, Ananclal Instrlments: RecogntUon and Measurement, EqUlres helbto-maturity flnanclal assets and flnandal l b b l l i s at amortlsed cost to be measured on inltlal recognition at fair value plus transacbion costs that a n dlrPctfy attrlbutebk to the acqulsltlon or Issue of the financial asset The investment and flnandal lbbillties of the Company are I n l t Y ~ recorded at cost. However, thls departure has no material effect an the carrylng value of lmrestment or the flnanclal lbbillty as the management eschnates that the mst of the financial assets.and Rnanclal Ibbllltles approximated to their falr values at the time of the Inltial recognition.

1.33 Darecognltlon off lnancial asmts snd finandal HabflIW8 Financial assets are derecognlsed when the dgha to recehe cash flows fmm the Investments have expired or the Company has transfemed substantlalty all risk3 and rewards of ownership.

The falr v a k of f l ~ n ~ l d assets and IhbilRles that are not traded in an active market ((for examde, over-the-counter derivatives) is detmlned by using valuatJon technlques. The Fund us= a variety of methods and makes assumptions that a n based on market condltionS exlstlng at ear3 balance W t date. Valwtlon technlques used lndude the use of cornpatable recent arm's length transactions, reference to other m u m e n t s that are substantially the saw, dlsmunted cash flow analysls, optlon pricing mod& and other valuation technlques mmmonly used by market parbldpants rnaklng the maxlmwn use d mket Inpuk and relying as llttle as posslblc on entlty-spedflc Inputs. See note 3 and note 5 for the falr value estmatlon.

1.4 Cash and cash equivslenb Cash and cash equwaknnts includes cash ln hand, deposits held at call wlth banks, other short-term highly liquid lrivestments with orlginal rnaturttles of three months or less and bank overdrafts.

1.5.1 Functional and presentation currency m e Company has adopted the Eutu ("EUR") as its prcsentatlon and functional currency, as Me Company's prbnary a m K y is to Invest In Eum denomlnated acurltles. The Company has no exposure to mnency on Its investment, and only mlnlmal exposure m Pound Sterllng (''GBP9) and Unlted States Dollar ("USD") on its pay* and recekaks.

1.5.2 Ttanact ions and balances Transactions denomlnated In cunencles other than EUR have been banslated to EUR at the exchange rate rullng at the date if the transaction. Mon&ly Items on the balance sheet have been translated to EUR at the exchange rate rullng at the year end. Foreign.mrrency galns and losses on such transactions and translation are remgnked In the Statement of Comprehensive Income.

1.6 meomS Income, whlch Includes Interest Income and d i xwn t on the Schukkcheln, is recognised in the Statement of Compehenslve lncome uslng the effect i i interest rate method over the term of the Schuldscheln.

1.7 ~tno;t lmt lon charge Dlsmunt on Deubche Mark bearer bonds Is amortlsed thmugh the Statemm of Comprehenske l n m m over the life d the tntal liability using Me effective tnterest rate method.

SRIES C EURO-D-URITIFS U M I e D

TO THE S t A W E N l S f-

31ST DECE-

Costs necessarily lncuned In relation to the ksue of the Devtsche Mark bearer bonds are dasslM as transactfon costs. T h e transadmn msts are subsequen* amortlsed thmugh the Statement of Comprehensive lnmme uslng the effective Interest rate memod over the life of the related liablllty. Any unamortlsed t r a w l o n costs are presented by way of nettlng from the related liablllty to whkh they pertain,

1.9 OfbeMng flnnndsl insbumantr Flnandal assets and IlabYtUes are offset and the net amount reported In the balance sheet when thee 15 a legally enforceable rlght b orset the recognked m o t s and there Is an Intention to seW on a net basis, or nalke the asset and settle the Ilabllky slmultaneous~.

The Company has engaged the servlces,of Computershare ORshore (C.L) L N t e d to pmvide edmlnlstratlve mlm ffor a fixed fee of $10,000 pw annum and a fed $3,000 for bookeeplng and acmuntlng services pbs dlsbunernents.

Tot& secretarhl and accounting fees for the year amounted to €14,000 (2m €14,000).

1.11 Bond reknrptlon expansas According to the t e r n of ananpement the difference between the Interest instalments recelvaMe on the Schuldscheln and the redernptlon value d the r&varrt Deuhclle Mark beeref bob will be utiIlsed tor payment of costs pertaining to

. redemptlon of the DeLltsEhe Hark bearer bonds. Aamdngly, h d redemptlon expenses are recorded at the tlme when the bonds are actually redeemed.

1.12 Sham capital Ordlnary shares are classifled 8s equity,

The Company's actlvitles e- It to a variety of flnanclal rbks: wdit rkk, cuunter-pa* rkk, market dsk and liquidny risk as explained below.

2.1 Rnanclal t14( factors

i) Prlw rlok and I n l k s t rate hsk The overall posltlon and thecefore r&k is governed by terms of the detmincd loan document under the Sclnkkheln, and Is matched and funded by zero coupon Deutsche Mark bearer bonds. The interest rate on the Schuldscheln Is flxed and therefore interest rate risk 1s minimal.

il) Currency rlsk The Company's presenlatlon and f u n M 0 ~ l reporting currency is the Eum and there is no exchange rate risk on incme sjnce the DM was converted to the Euro in ZOO2 at a foted rate of 1.95583. There k some llmlted exposure on expenses charged In Sterllng and E D currencies, however these expenses an fully reimbursed by the hentrolllng company, Commerzbank AG.

ill) Swaltlvtty mnalyds

The Company has not provided a sensltivlty analysis, given mat bAh interest rate rMc and NtTenW risk are .fully hedged. Therefore In the Opinbn of the Directors, no sensftllty anah/s5 k requlred m fx dlsdosed.

Pap 13

FOR YEAR ENDED

2.1 Finandal rlsktectoa (continued)

b) Cradlt iisk and counter party risk

Credlt risk b the &that the eounter-partles wlll be unable to pay amounts In fun when due. The Company's single investment holding k the Schuldshein (as described In note 3), wlth an actwl balance ouWaodlng of E 221.4~ as at 31 December 2010 (2009: Q 2.08.I.m). The Company has convenanted not to enter Into any other transactions except in m u l w to the Schuldxheh. An hpalrment review was canled out within the bwlness in respea of the SchuMscheln and based on such dbctors are of the view that no Impairment prowon b requbed, as desolbed below.

The Schuldxheln Investment contlnws to be government backed and the loan orlglnates from an EU member state. Land Badeden-WUlttemberg eLBW3 as a state k among the most prosperous states in Gemny and Is m of the wealthlest reglons in Europe. LBW Is one of the sixteen states whlch are partly swerelgn mnstituent states of the Fedml RepuMlc of Germany.

LBW Is a key sharehalder in Landesbank Baden-WwrWRmberg rLBBWY) who are of M h syskrnic inportance to the Federal Republk of Germany. LBBW wlll contlnw to receive extraordinary financial support f r m LBW If needed,

The on& other asset subject to credlt rlsk 16 the rcoehabk from dated pnny, Cornmehank AG is the ultlmme- contmlllng patty of the Company. Glven that Comnetzbank AG, is a well regulated bank wlth a aedlt rating of A-1 the credk rlsk of the recekable from related patty Is deemed rn be mlnlmal.

The Directors have accepted on balance that there Is no evidence ta suggest Ulat the Schuklscheln lnvesbnent had suffered a decllne In falr value below the mst, or that any dedlne was prolonged or slgnlficant The Directors of the Company are therefore of the o p l n h that the inv&Timt Is nd cvtenth/ Irnpalred, although they did acknowledge that they will contlnue to monitor the sltuatlon, glven the current adverse emnomlc condltlonr

C) L l q ~ M l t y rl* Liquidity risk Is the rkk that the company is unable to meet the payment obllgatlons assodated with its flnanclal llabllltles when they fall due. ,

The Company currently has mlnlrnal exposure to IlquMIty rkk as Its obygatlons to meet Its Yabllitk are offset by the investment held In accordance wlth the terms of the loan apreement There ham been no defaults or breaches to date, in relatlon to financial obagatlons of the mmpany.

The maturlty of the Company's Ilabllttk are glven In the table below.

+s than 1 year Over 5 years

Eum' 0008 2 -5 Wrd Eum' 000s Trade payable and

. auruedexpenses 9

Flnanclal liabllltles at amoltlsed cost:

Less than 1 year ~ v e r I p n

Euro' 000s 2 -5 years Eum' 000s Trade payble and accrued expemes 9

Rnancbl Uabllltles at amwtlsed cost:

Interest income durlng the year at effective Interest rate 13,273 12,478

Amwttsed cost at tfre end of the year 13,US 12,478

The effecthe rate of the Schuldxheln ls 6.38% p.a. The amortlsed cog of the Schuiddwln presented In the balance sheet Is assumed to approximate Its fair value.

VRO-DM S E C L ! W E S U M W

IYO-WEN-

2.1. Capltal rlsk minagemant As of 31 Dec~rnbw 2010, the Company has an ordlnary share capltal of € 5,000 (2009: f 5,0i). The Company3 maln transactbn, acqulsltlon of Schuldschein was funded through Issue ol Deutsche Mark bearer bonds as described In note 5 to the flnanclal statements.

23 L l m W ncouroe There is no llmlted recourse In place, as the Rnantial aoets are not secured on any specific a m & of the Issuer Lwt are guaranteed by the Issuer for repayment

This represents an unlisted investment in a Schuldschein issad by Kreditanstatt fUr Wledemufbau, on 10 April 1986. The Schukkcheh whlch has a face value of 6169,629,774 was purchased at a cost of 6161,765,830.

The Sdwlldxheln bean hterest payabk In three equal lmtalments d 6137,145,672 due on 10 Aprll 1946, 2036 and 2016. The prlndpal amwnt due under me MlPdscheln k payable on 10 April 2016.

mk i n w s m n t is recwded intlally at c a and Is subsequentv measured at amxtlsed mst whkh Is detennlned after taking Into account Interest yiekl, dlscount arnortised and receipts of Interest Instahants as they become due,

m e khuldtaeln Is used to provide securlty for the Deutdx bearer bands detailed In ~ t e 5.

The carrylnp amount of the Investment is as follows: a aao.

Amortlsed'mst at beglnnlng of the year , 2011,lW 195,676 Interest Income during the year at effecthe Interest late 13,273 12,478

Amarttsed cost at the end of the year U1,421 M8,154

The effective rate of the Schuldschein Is 6.42% p.a. The Palr value of the Schuldscheln presented In the Balance Sheet is estimated to be €274,909,043 as at 31 December 2010 (2009: €254,943,512).

W E S C EURO-DM S-

FOR THE YEAR m T DECEMBER ZO&Q

Thls represents advance payments made in respect of Trustees and Paying Agents fees and k amortlsed through the lneane statement on a straight llne basls over the life of the Schuldsdwln.

Canylng cost at the beginnhg of the year Amortlsed during the year

Carr/ing cost at the end of the year

As mentioned In note 3 of these finenclal statements, the Gompariy Issued 1,136,460,000 Zero-Coupon Derrtsche Matt Bearer bonds d W d lnto three Derlsb, (Serks 1996, Scrk 2006 and Serles 2016). The bonds are llsted on the Frankfurt Stock Exchange. The Company sold Its rlght to receive the Interest due on the Schuldschein during the period 14 March 1986 to 13 March 1996 in wder to finance the purchase of the Schuldscheh These llabllkles are recorded In the Rnandal statements at theh amortlsed cost whkh Is determined aRer taklng lnto amount dkcount and bansaction cost arnortintlm and pawent of Interest Instahwnb to settle the IlaMllty arlslng on the sale of rlghk to remlve Interest on

Schuldsdwln, and are fully secured on the %huldscheln desdbed In note 3.

The caving value b as folbws : a m

Amortlsed cmt at the beginnlng of the year 208,372 195,914

PmortlsaUon d discount at effective interest rate 13,m 12,458

Amortlsed uxt at the erwl of the p i r

The e fk t lve Interest r a t e d the Deutsche Mark bearer bonds is 6.36% pa.

The contractual value at the maturity d the Deutsche Mark bearer bonds Is f #)6,7m (2009 - € 306,7m).

The amortlsed cost of the Deutsche Mark bearer bonds presented in the balance sheet Is assumed to appromate thelr fair value.

The falr value of the Deustche Mark Bearer Bonds presented In the Bahnce Sheet is estknated to be 474,909,W3 as at 31 Decmber 2010 (2009: €254,943,512)

e m

6ORDINARYSHARE.CAPTTAL. 1010 2009

Authoriid 10,000 shares of El each

Issued and f@ paid 1,009 shares of El each

Converted to € at the exchange rate ruling at the date on which the Deutsche Mark ('DM") ceased to be kgd t e w r . e 5 € 5

TQ THE-

7 CONTROLUNO P m

The lmmedlate CGntrolllng party of the Company k Uoyds TSB Offshore Trust Company Ltd (formerly known as Hlll Samuel Offshore Trust Company Llmlted), as trustee of a challtable trust. In the oplnlon of the trustee the ultimate CmtrOlllng patty 14 Commenbank AG, a regulated German bank.

T k company Is currently regktered in Jersey as an exempt company. The States of Jersey Income Tax Autholl& has ranted the Company exemptJon fmrn Jersey l n c m tax under the provision of Artkle l23A of the Incane Tax (Jersey) Law 1961. The Company has been charged the annual exemption fee of €600.

With effect from 1 Ianwty 2009, Jersey has abolkhed the exempt m n y regkne for exlsting mmpanies. At the same time the standard rate of income tax for companies has moved from 20% to 0%. Therefore some entfiles ptwiou5vious)y exempt from tax under the above pmvlslon are now taxed at 0%.

In accordance wlth an undertaldng dated 2nd Juty 1986, Commenbank AG as pwnoters of the ksue of Zem Coupon Deutsche Mark bearer bonds as desnlbed In note 4, have agreed to rehbune the Company for all expenses Incurred. The expenses and the comsponding relmbuaement are shown in the Income statement

Parties are considered related If one party has ablllly to control the other party or exercise Influence over ltle party In rnaklng fbwnclal or operational dectrlons. Tix folowlng are comldered by the directonof the Cornpany ta be related paties:

r Lloyds TSB Ofshore Trust Company Ltd as Immediate controlling party d the Company, The dlrecton of Lloyds TSB Offshore Company LtU are also dlrecton of the Company.

r Commehbank AG ss the ultimate controtling party and paylng agent of the Company. r LloydsW Offshore Trust Company M pmvlded adminktratlw and accountanw sewlcw for a fee of €10,000 (M07 € 10,000) durlng the year.

r Commerrbank AG has rehnbursed the Company of all admlnkatlve mpenses for the year of €11,000 (2007 - €11,000).

The balance rtlcekable from Cornmerzbank AG at 31 December 2010 k E 14,000 (2009 - 14,000),

11 BALANCE SHEET DATE

No significant events occurred bewen the belance sheet date and the date of slgnlng the finandal statements, whkh would requLe adjtlstrnents to, or disclosures in, the Rnandal statements.