Gearing and investment guidelines Jyske Bank Invest Loan

Gearing and investment guidelines Jyske Bank Invest Loan Gearing and investment guidelines – Jyske Bank Invest Loan – JGAM version – 04.2008 1/8 Asset class Green collateral value % of the asset market value Amber collateral value % of the asset market value Red collateral value % of the asset market value Cash balance Note 1) 85 90 95 Bonds Note 2) 80 85 95 Equities incl. convertible bonds Note 3) 67 75 90 US-securities Note 4) 50 65 85 Corporate bonds Note 5) Collateral value similar to that of a bond or equity depending on current rating. Emerging Market securities Note 6) 50 65 85 Mutual fund certificates Note 7) To be determined separately on the basis of the

fund risk profile. Structured products Note 8) To be determined separately on the basis of the product risk profile. Description of the rules applicable to the gearing and investment of assets placed as security for a Jyske Bank Invest Loan established through Jyske Bank Private Banking Copenhagen, Denmark As different types of assets involve different types of risk – credit risk and market risk – Jyske Bank has calculated dif- ferent collateral values for different types of asset classes. In other words, the higher the risk, the lower the collateral value. In addition, specific rules apply to rating, the breakdown of investments by amount and sector, as well as to market liquidity. The requirements are set out in the specifications for each asset class below. The asset classes acceptable to Jyske Bank as security are indicated below together with the matching collateral value. It is, however, a condition that accounts are kept and securities lodged with Jyske Bank. Jyske Bank calculates the Invest Loan collateral margin on the basis of a system whereby the collateral value is rated green, amber and red. To illustrate the various degree of risk, the notes below include calculation examples, and a purely hypothetical Invest Loan portfolio has been added to illustrate the calculation of the collateral margin. These margin rules are composed to be in accordance with Regulation X, Regulation U and the Single Credit Rule Gearing and investment guidelines Jyske Bank Invest Loan Gearing and investment guidelines – Jyske Bank Invest Loan – JGAM version – 04.2008 2/8 Invest Loan – calculation of collateral margin The calculation of the Invest Loan collateral margin is based on the relative risk associated with each of the asset classes placed as security for the loan. The higher the risk defined by the Bank, the lower the collateral value, i.e. the collateral margin increases compared with the loan value. The collateral value of low risk assets, on the other hand, is higher, i.e. the collateral margin decreases compared with the loan value. In the event that the value of the collateral falls below a pre-defined percentage compared with the loan value, the collateral will be rated amber, and the Bank may demand that further collateral be provided. In the event that the value of the collateral deteriorates even further, the collateral will be rated red, and the Bank shall be entitled to realise the collateral and redeem...

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