.a

SNSREAAL

Ministerie van Financiën

T.a.v. mevrouw Drs. G.J. Salden en de heer drs.W. Raab
Postbus 20201
2500 EE Den Haag
Raad van Bestuur
Croeselaan 1
Postbus 8444
3503 RK Utrecht
T 030 291 51 24
E ronald.latenstein@snsreaal.nl
Onze referentie
Uw referentie
Onderwerp
Datum 1 november 2012
Mogelijke combinatie ASR en SNS REAAL met kapitaalinjectie door CVC consortium
Geachte mevrouw Salden, heer Raab, beste Gita en Wouter,
Al geruime tijd vindt er regelmatig tripartiet overleg plaats tussen MinFin, DNB en SNS REAAL over verschillende scenario's om de kapltaalsbasis van SNS REAAL te versterken. SNS REAAL streeft daarbij naar een oplossing die op een evenwichtige wijze rekening houdt met de belangen van al haar stakeholders. Zoals eerder aangegeven, waarderen wij deze gesprekken als Raad van Bestuur van SNS REAAL (RvB) zeer.
Tijdens de gesprekken is een breed scala aan mogelijke scenario's besproken, waarbij de volgende drie scenario's het meest recent zijn besproken.
- Een scenario waarin een APS voor de Property Finance portefeuille van SNS REAAL door de Nederlandse Staat wordt gecombineerd met een kapitaalinjectie door de grootbanken (Rabobank, ING Bank en ABN AMRO Bank), aangevuld met een verkoop van de verzekeringsactiviteiten op termijn.
- Een scenario waarin een APS voor de Property Finance portefeuille van SNS REAAL door de Nederlandse Staat wordt gecombineerd met een kapitaalinjectie van circa €750 miljoen door CVC en enkele internationale, private mede-investeerders, zodat de kapitaalsbasis van SNS REAAL wordt versterkt. Een uitwerking van dit scenario hebben wij jullie uitgereikt en toegelicht tijdens ons overleg van 23 oktober jl.
- Een scenario waarin SNS REAAL fuseert met ASR. Het overtollig kapitaal van ASR van hierbij gebruikt worden om de verliezen van de Property Finance portefeuille van SNS REAAL op te vangen, waardoor een APS mogelijkerwijs niet noodzakelijk is. Een uitwerking van dit scenario, opgesteld in overleg met NLFI, hebben wij jullie toegestuurd op 11 oktober jl.
Elk van de bovenstaande scenario's gaat uit van een conversie van de CT1 securities van de Nederlandse Staat en van een conversie van de CT1 securities en Baandelen van Stichting Beheer SNS REAAL (Stichting Beheer). De conversie van de CT1 securities en B aandelen van Stichting Beheer gaat gepaard met een zeer significante burden sharing.
SNS REAAL N.V. gevestigd Ie Utrecht KvK 16062627 www.snsreaal.nl

SNSREAAL

iiiiiiiiii(zie bijlage voor nadere informatie) (samen het CVG Consortium), ook mogelijkheden zien om een constructieve rol te spelen in een mogelijke combinatie van

genoemde scenario's.
In bijgevoegd document doet het CVG Consortium een eerste voorstel waarin het concreet aangeeft hoe een dergelijke transactie vormgegeven kan worden. Het voorstel omvat verschillende elementen die onderwerp van onderhandeling zullen zijn tussen de Nederlandse Staat, Stichting Beheer en het CVG Consortium. Dit geldt onder andere voor de behandeling van de CT1 securities van de Nederlandse Staat, de conversie van de CT1 securities en B aandelen van Stichting Beheer, de waarderingen van ASR en SNS REAAL en het aangrijppunt van de APS. Het voorstel gaat ook uit van een bijdrage van de grootbanken aan de kapitaalinjectie. In het voorstel geeft het CVG Consortium zijn visie op deze elementen in een mogelijke transactie.
Op hoofdlijnen bevat het voorstel van het CVG Consortium de volgende onderdelen:
Het CVG Consortium zal een kapitaalinjectie doen van circa €0.9 miljard door middel van het underwriten van een discounted claimemissie. Aangenomen wordt dat daarnaast de grootbanken op dezelfde wijze een aanvullende kapitaalinjectie zullen doen van circa
€300m, zodat de kapitaalsbasis van SNS REAAL met circa €1,2 miljard privaat kapitaal wordt versterkt.
In het kader van burden sharing, verwacht het CVG Consortium dat de Stichting Beheer instemt met een volledige afschrijving van haar CT1 securities en B aandelen. Daarnaast verwacht het CVG consortium om burden sharing toe te passen op de hybride Tier 1 instrumenten.
De Nederlandse Staat ontvangt €565m in contanten als terugbetaling voor de CT1 securities, conform de voorwaarden van deze effecten.
- Het CVG Consortium beschouwt een APS voor de Property Finance portefeuille van SNS REAAL door de Nederlandse Staat als voorwaarde voor een kapitaalinjectie. Het CVG Consortium is van mening dat het staartrisico van deze portefeuille niet door een private partij dient te worden gedragen. Het CVG consortium stelt daarom de volgende structuur voor. De verliezen van PF worden gegarandeerd boven een niveau van €1,265m, waarbij overwogen kan worden of een gedeelte van het resterende staartrisico door de grootbanken
gegarandeerd kan worden. De Nederlandse Staat wordt gevraagd het resterende staartrisico te garanderen tegen een passende fee.
- De Nederlandse Staat ontvangt €61Om aan dividend vanuit ASR via NLFI.
- SNS REAAL en ASR fuseren. Na bovengenoemde private kapitaalsinjectie in SNS REAAL van €1.2 miljard, de afschrijving van de Stichting CT1 securities en B aandelen, en de dividenduitkering door ASR aan de Nederlandse Staat van € 610m voorziet het CVG Consortium een ruilverhouding van 64% voor SNS REAAL en 36% voor ASR gebaseerd op hun relatieve waarderingen.

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SNSREAAL

De RvB is van mening dat dit voorstel net als de drie eerder genoemde scenario's overwogen zou moeten worden. Het voorstel van het CVG Consortium voorziet in een kapitaalinjectie waarvan €goo miljoen afkomstig is van partijen buiten de Nederlandse (financiële) sector. Hiermee wordt SNS REAAL gestabiliseerd en het risico van de Proparty Finance portefeuille van SNS REAAL grotendeels afgedekt. Het voorstel voorziet hiernaast in de eerste stappen om ASR weer naar privaat eigendom te brengen. Het CVG Consortium is samengesteld uit gerenommeerde partijen, die in eerdere transacties hebben aangetoond op een constructieve wijze met nationale staten samen te werken.
Aangezien het CVG Consortium twee concreet uitgewerkte voorstellen heeft neergelegd en gelet op de gewenste snelheid die onder de huidige omstandigheden gewenst is, is de RvBvan mening dat het CVG Consortium de gelegenheid dient te krijgen een eerste boekenonderzoek op hoofdlijnen uit te voeren. Om die reden heeft CVG sinds 1 november toegang tot de
dataroom van SNS REAAL.
Graag plannen wij op korte termijn een bespreking om het voorstel van CVG en de verhouding tussen de verschillende scenario's nader toe te lichten en om gezamenlijke vervolgstappen te bespreken. CVG heeft daarbij aangeboden om samen met haar mede investeerders, indien MinFin dit wenst, ook zelf dit voorstel toe te lichten.
We achten het in het belang van SNS REAAL en al haar stakeholders dat er op korte termijn een beslissing genomen wordt over een eindoplossing voor SNS REAAL.

e.c. Jan Sijbrand en Petri Hofste, De Nederlandscha Bank

NON-BINDING AND SUBJECT TO CONTRACT STRICTLY PRIVATE & CONFIDENTlAL

Draft Terms Sheet for an investment in SNS REAAL Group N.V. {"SNS") and the potential combination with

Assurantie der Stad Rotterdam {"ASR") for discussion with the Dutch State

We welcome the opportunity to submit this proposed Term Sheet regarding an investment by funds ("CVC Funds") advised by CVC Capita! Partners Limited and its affiliates ("CVC"), tagether with

(the "SWFs" and tagether with CVC "the Consortium"), into SNS and the potentlal strategie combination with ASR.

Sinee we started discussing this potentlal investment with SNS in the summer we have conducted substantial due diligence on the company and the market and we continue to be very interested in the possibility of investing in SNS. We believe we can offer an attractive alternative to the other solutions, which would require substantial investments from the Dutch State and the involvement of the three largest Dutch banks. While our proposal requires the current stakeholders to share the burden of historie losses, we believe our proposed transaction structure is balanced and provides the best possible outcome for each of the key constituents given the current criticai situation.

One of the conclusions of our recent due diligence was that in order to properly provision for property finance lossesin alllikely scenarios a larger rights issue than originally envisaged would be required. As such, we have updated our proposalto include a larger capita! injection from the Consortium in combination with a minority investment from ING, Ra bobank and ABN Amro (the "Banks") who we believe wilI be supportive. Furthermore, we believe the direct involvement of the sovereign wealth funds demonstrates confidence in the Dutch economy by long term investors.

In summary, we believe that our proposed transaction will allow SNS to leave behind the issues related to Property Finance and to become a well capitalised institution. lt will also allow the State to receive total proceeds of €1,175m at closing as well as providing the State with a clear route to exit its ASR investment, whilst retaining significant upside from synergies and future value creatlon resulting from the combination of SNS and ASR.

Subject to timely progress of these discussions, we have a high degree of confidence that we could complete our due diligence on SNS and ASR quickly and that the Consortium could be in a position to sign and announce a transaction withall the key stakeholders by the end of the year.

A potentlal investment in the combination of SNS and ASR is a top priority for CVC and we have received strong support from our lnvestment Committee.

We would welcome the opportunity to discuss this proposal with the State or any of its advisers.

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This proposed Term Sheet is made on the basis thot the State, SNS and its officers and advisers wil/ keep the infarmation contoined herein confidentia/ and wil/ nat disclose or publish such informatian to any other person (other than as is necessory in conneetion with the contemploted transoction) withoutour prior written consent.

Nothing in this praposed Term Sheet sha/1 give rise to or be copoble of giving rise to any /ega/ abligations whotsoever on the part of CVC or the CVC Funds, but the preceding parograph is intended to be binding an the State, SNS, its officers and odvisers, and any other party to whom the informatian set aut herein is disc/osed.

1

1 Discounted Rights Issue by SNS

lJ: !J i JL _

1_::€0::·c:.7.p::.e5=:r.s,h::.:::a: r- e_·:,. ·------·---··-------··-··----------·-·----·--·--···---·
_1::

c:J, ? ! '!l _i -'- _Q r:r_J_i !_ota ---------------------·--------·--------------·

1.3. Foundation pre­
Foundation agrees not to exercise its pre-emption rights.

_'::'!lE!i() Eig ! -----------------·------·-------------·-··-------·------·-------··-·

1.4. Free float pre- Free float holders provided with capped pre-emption rights that would
emption rights allow them to invest (as a group) up to 50% of their ratabie share in the

rights issue (i.e. Ufl to c.€300m). -------------·---- -·--·-------·

l.S. lnvestment by
the Consortium
1.6. lnvestment by ether key
investors
Subscribe for €905m of the rights issue, with CVC Funds as single largest
subscriber.
CVC Funds and the SWFs would each invest into SNS through one or more special purpo - _ll_icles incorporated_!<J. .! '::.fl. EP..<J _e of the transaction, _ The Banks underwrite €300m of the rights issue. lf there is insufficient de mand from free float holders then the Banks would be allowed to place
the shares (on terms to be agreed with the Consortium) with ether
investors if there is sufficient demand.

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1.7. Underwriting and transaction fees

cvc may charge an appropriate underwriting or transaction fee and/or

ongoing monitoring fees relating to the transaction.

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1.8. Rights issue
proceeds used to support Property Finance provision
1.9. Other use of rights issue proceeds
1.10. Public/ private status
€975m of the proceeds will be used to create immediate provision of
€1,265m on the Care and Non-Care Property Finance portfolies totalling
€8.7bn of net outstanding as at Hl2012.
This will consist of €1,000m write-down to achieve the current SNS best estimate of the provision required in the Property Finance portfolio, plus a further €265m of secend loss relating to the stress scenarios recently completed by Ernst & Young.
We believe that this write down should qualify to support the creation of a tax asset at SNS !E'!. '::!-2':: E'!c _o agreem nt with company auditors. _ Any excess investment will be kept as excess capita! in SNS to finance the repayment of the State Care Tier 1 securities, further boost the day one financial strength of the company and to support repayment of double
leverage. ---------··------------------------·---­ Post transaction, SNS is expected to remain public.
There are several benefits of the company remaining public:
• A full take private will increase complexity of the transaction (e.g. approval procedure, minority squeeze out, eventual re-listing, etc.) and will result in increased capita! exiting the Dutch financial services sector;
• No meaningful difference on reporting/ disciosure requirements since the company is regulated and will need to continue to provide regular updates to the market, regulators and rating agencies;
• Continued public status helps maintain liquidity of shares and certainty on eventual exit for the State and Consortium; and
• Allows individuals and institutions to buy into a large Dutch financial
.................................................................... -=institu:tio n.

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1.11. Mechanics Transaction to be approved by shareholders under SNS existing corporate
gavernanee rules.
We understand it is likely that as set out above the proposed investment will create the need for a mandatory offer from the Consortium at an equitable value (which we would expect to be the discounted rights issue share price). The Foundation and the Banks (if they hold shares pursuant to the underwriting) will commit not to take up any mandatory offer and the
Banks wilI agree to underwrite the theoretica! funding requirement for up
to c.€110m related to any shareholders w _()_ ake up the offer. _
1.12. Burden sharing by Hybrid Tier 1 instrument holders
This refers to the holdersof instruments at the SNS and SNS subsidiary level. We believe they should be asked to forego or defer their coupon on their financial instruments as part of the overall deal burden sharing and we understand that the European Commission may regard this is as important positive element in coming toa deelsion on the proposed transaction.
We would ask that the State supports this proposal for burden sharing from holders of these instruments with the European Commission.

2. Treatment of State Care Tier 1Securities in SNS (at the same time as Step 1above)

2.1. Amount €565 million payable in cash at closing as per contractual position assuming the State deeldes not to exercise their right to convertata price of €5.25 I share. The State would have no further claims under the Care Tier 1
Securities_foi <J_\,1/}_ .!L uch payment. _
2.2. Farm of consideration
The €565 million wilI be financed with the excess capitaI generated by (i) the rights issue, (ii) the merger with ASR and (iii) the de-consolidation of the Property Finance risk weighted assets. This would be subject to the DNB approval which we believe wilI be possible in the context of the proposed
transaction.

3. Treatment of Foundation Securities in SNS (at the same time as Step 1&2 above)


We believe it is appropriate and necessary that the Foundation wilI share a large portion of the burden related to this transaction. The proposed negotiation and agreement with the Foundation wilI be led by SNS with support as appropriate from CVC.
3.1. Co re Tier 1 20% penalty fully foregone.
securities
3.2. B shares

100% write off _by !e Fo::..u::.:n.:.:d:;-:a'-'t:-'io:.:.n::.. _

100% write off by the Foundation.

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4. ASR merger (at the same time as Steps 1, 2 & 3 or shortly after with contractual certainty at the time of signing and announcement)

4.1. Pre-completion ASR will distribute a €610m dividend from its excess capita! to the NLFI
dividends befare completion subject to the approval from DNB and the Supervisory
Board of ASR (and sufficient reserves being available) which we believe

should be pos !IJJe in the context of the propo ..:.c!_!ransact. ()_11.:_ ..

.... _
4.2. Transaction structure/ mechanics
Merger of SNS and ASR wilI be conducted via means of a share swap based on established valuation parameters previously discussed with the State, adjusted for the recapitalisation of SNS and the pre-completion dividend to ASR.
The NLFI's ASR shares would be swapped in exchange for 36% of the shares in SNS. The pre-merger shareholders of SNS would continue to hold the

........................................ __r:(è_'!iain -!!.§:". :-----------------------······················-··-········-··--··-··-···· ·-----·········

4.3. Post-merger
ownership
The Consortium 41%
Dutch State 36% Foundation/ Free float1' 1 10%
The Banks 14%
··---······--·······--·-··············-·········--······ (1) This assume_s na free float take up under t..!!l. - Jssue _
4.4. Publief private The combined entity is expected to remain publicly listed, for the reasans status highlighted in Sectien 1.10. In addition, given the strategie importance and size of the combined business, public market ownership is the most likely
·······--·····- .. _l.c:Jng term_ !. ! _! t.he _?! - !- the Consortium and the Banks. _
4.5. lntegration plan The management of ASR and SNS will jointly develop and commit to an
integration plan (with appropriate support from Works Council) which will be approved by the Consortium and the State befare signing of the

.......................................................................... ..... -trans- a-ction-.------------=------.,--

4.6. Due diligence We expect management of SNS tagether with the
on ASR complete the due diligence on ASR in a timely fashion.
support of CVC to
We would ask the NLFI and the State to support our ability to undertake this diligence with access to the necessary members of the management and information required on a timely basis.

5. Managementand Gavernanee

Our views on the proposed gavernanee are subject to regulatory and corporate gavernanee

considerations and further discussion with the management teams of SNS and ASR.

5.1. Management of The Consortium, the State and NLFI wilI agree the composition of the the business Executive Board.
Management continue to manage and operate the combined SNS/ASR
entity and its subsidiaries.

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-·-·-··--·-·-·-·-·····-·-·-·"""""""""""" ·-·-·-· --------------··-·---·--------·--;---::·-----------·-·-·----------·,---------------·---

5.2. Combined We would expect the Supervisory Board to reflect the ongoing ownership

entity structure of the combined business, consisting of the following:

Supervisory • 1independent Chairman, to be jointly appointed by the Consortium and

Board the State;

composition • 4 members appointed by the Consortium;

• 2 members appointed by the State I NLFI; and

• 2 members appointed by the Works Council.

5.3. Board

Committees

5.4. Quorum and logistics

We would a lso welcome the opportunity to discuss the possibility of other independent non-executive directars with relevant expertise (including current members of SNS or ASR Supervisory Boards) to be jointly appointed by shareholders. We would see this as important in giving comfort to the Free Float that their interests are being adequately safeguarded through sound corporate governance.

Maintain SNS' current number of committees (Nomination, Remuneration, Audit, Risk), with the possible addition of an Asset and Liability committee to be discussed. Composition to be agreed with the Consortium to reflect shareholdings, but will include at least one Consortium appointed director

and_<:J_rJ_e State appointed direct r'----

A Consortium appointed director and a State appointed director must be present (in person or by proxy) at any Supervisory Board meeting for that meeting to be quorate.

The Supervisory_ll_oa --continues tomeet at_!-'0 - _!six times a year.

5.5. Gavernanee Maintain Supervisory Board rights based on current SNS set up, with clear rights of in dusion of monitoring of business performance against budget, a ppraval of Supervisory major strategie decisions and reserved rights for the Consortium and the

Board State.

""""""""""""""""""""""" ·-·-·-··-·-·-·-·-·-·-·-·-- ·-···-·-· ---------·-- -----------

5.6. Deadlock Agreed arrangements for dispute resolution.


resolution

5.7. Interaction with DNB and other regulators

Daily interactions will continue to be led by management and relevant compliance officers.

The Consortium and the State directars expect to be involved in all

----"--"""""-------···-----



Supe_r_lliSD!_'L oard level interactions wit _the regulators. _

5.8. Distribution

policy

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5.9. Publicity

Subject to discussions with regulator, SNS's operating subsidiaries will

distribute shareholder funds in excessof regulatory or other prudent capitaI

requirements by way of dividends to SNS holding.

Post transaction it is expected that the retail banking activities will be initially capitalised with a Care Tier 1 capita! ratio of at least 12% and the insurance activities with a Solvency Ratio of 215%.


Distributable profits available at SNS holding will first be used to reduce double leverage to below 105%, with residual available to shareholders as divi_de':ds,subjecttoa ppraval bthe regula"'to;:-rc:.·-::----,

Gavernanee arrangements between SNS, the Consortium, the State and

others will need to be documented in (a combination of) the articles of association and contractually. Certain key terms may need to be made public.

5

6. Special Purpose Vehicle ("SPV") for SNS Property Finance


We believe that the proposed €1,265m of provisions in the Property Finance business reflects both the expected provisions (€1,000m) and a second loss element (€265m) relating to the stress scenario for the portfolio of loans.
6.1. SPV set up An SPV will be set up and owned by SNS holding but will be operated at arm's length from other subsidiaries of SNS. We believe that having SNS own the SPV would create alignment of interest with the Dutch State with
................................................... regards to maximising the valufO!_of_!he portf:.::o:::li o.:..--:--,----.,----,
6.2. Scope of asset Both Non-Core and Core Property Finance Portfolios, with total net sale to the SPV outstanding amount of€8.7bn as of H12012.
We note that the Property Finance subsidiary of SNS Bank already contains this portfolio and materially no other assets. Therefore, the most likely approach would beforthls subsidiary ofthe SNS Bank to be transferredtoa
..................................................................... - .E:c: u- ! Y !.!.J:l...E!n. ew SPV, whieh itself !.fi!!. !:-ubsi_ ! !.Y --
6.3. Coverage of Any losses that emerge from the SPV will be initially covered by any
losses accumulated profits within the SPV.
Any excess loss will be covered by an insurance arrangement underwritten
................................................................. by the State ("State Guarantee"). .............
_ _
6.4. Impact of the
SPV
We believe it wilI be possible to ensure that the SPV will allow SNS and SNS
retail banking operations to apply zero risk weighing on these loans from a capital perspective.
Subject to further technicaI advice, we believe that it wilI also be possible to ensure that the State will not need to consolidate the loans on its own balanee sheet.

""""""""""""""""""""·-·-·--·--··-·-·-·-·-·-·-·-·-·-·-·-·-·-·- ····-···-·-·-· -·---· -- ---------·--- -----

6.5. Compensation An annual fee of SObps of the net outstanding amount of loans at the
for State beginning of that year in the SPV will be payable to the State in return for
............ - <!':!!':':......... the State Guarantee. The amount wiii_ ':.P.§I.Y.. !Jie..::b:I.y..::S N::::S:._-,-----"
6.6. Operatiens All the costs and staff relevant to servicing the assets in the SPV will be
identified, and they wilI be either transferred to the SPV or recharged to the

...................................................................

S:P:V:a.t:c:o:s: t.

" _

6.7. Restrictions on
actlvities ofthe SPV due to the State Guarantee
The SPV wilI agree not to distribute dividends to its shareholder unless:
a) the net outstanding amount of loans in the SPV is below the level of equity in the SPV, in which case the excess equity wilI become available for distribution to SNS holding; or
b) the level of excess capitaI in the SPV exceeds a pre-agreed level for a
sustained period of time, in which case a proportion of the excess capitaI wilI become available for distribution to SNS holding; or

c) the State Guarantee is terminaled by SNS (at its election).

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7. Share Issue and Transfers

Our proposal here is subject to further input from experts in the listing rules and discussions with the listing authorities. These proposals are being made in the interests of the Consortium, the Banks and the State to ensure an orderly re-emergence of SNS as a stabie
public company in the Netherlands.

7.1. lnvestment holding period
Within the first two years after the investment, nosale of shares would be allowed by the Consortium, the Banks ar the State unless explicitly agreed

... l!l() gst y llp rtiE!s:..........................................................................................................................................................................

7.2. Share transfers
lf the State or the Banks wish to sell any of its shares in SNS (other than by way of customary permitted transfer), such sale would be undertaken in
coordination with the Consortium with appropriate rights of first offer.

8. Transaction Process

8.1. Response from the State

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8.2. Exclusivity

_ ....

8.3. Time line

8.4. Communication with the European Commission

In order to ensure that we can develop momenturn in our diligence exercise,we would request that the State provides SNS and the Consortium with an initial response and indication of support within two weeks of submission of this proposal. This would allow the Consortium to complete its due diligence in time to announce a transaction by year end.

We believe this is particularly important given the negative watch placed on

SNS by S&P and the need to maintain market confidence in SNS.

·'·'····'··=······'··"=:··:·'················'······:· ..:........................:........... :. ::: ..:••:,:::.........:,::..:...:.. ......................... ...:,... ....,......:. ............,.. .: ·:································

Once diligence has progressed further, the State and SNS would each agree

that the Consortium is granted an appropriate period of exclusivity to

..C(JI!lPIE!tE!it? diligen E!<l E!g(Jtia!i()f1_()nthe J?!()P()?ed t ansa tion.

We would propose to target signing and announcing of the transaction by year end 2012 subject to timely access to managementand information for bath SNS and ASR.

Prior to announcement, it will be important for the Consortium to confirm the view of the European Commission to the proposed transaction.

We would request and expect the State wilI wish to lead interactions with the European Commission. The Consortium is wiling to provide support as

,Pn"i'Prl

8.S. Approvals

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8.6. Rating impact

The signing and announcement of a transaction wilI be subject to the final approval of CVC's lnvestment Committee and the general partner of the relevant CVC Funds and the investment committees of the other SWFs.

Closing wilI be subject to:

• The approval ofthe DNB; and

• Approval to the proposed investment without remedies by the European

Commission. - ....... ·-··-····--·---............................... ··············-····-·-···· ···············- .,,_,,_,,_, ............

·····-··········-··························-··-····-·········· ,.,

We would aim to hold discussions with rating agencies (S&P and Moody's)

in advance of completion to receive their clear indications on the impact of the transaction on the credit ratings of SNS and the combined group.

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9. Other Assumptions relating to this proposal

9.1. Representations The Consortium will propose appropriate representations and warranties

...... -n11\/ T! ! .. E St()Jl1 ryt() rll\lri!i JLacg_ isitj()n trall ti()lls.:......

9.2. Deal Costs Each party shall pay its own costs and expenses in relation to the

negotiation, preparation, execution and implementation of this Term Sheet provided, however, if a transaction is consummated, SNS shall reimburse the Consortium for reasanabie third-party and out-of-pocket expenses.

Any questions relating to this proposal shou/d be directed to any of the following:

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