You hold 1,000 interests in the Trust and we have a payment to make to you of as further explained below.

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1 ANSON CUSTODY LIMITED 30 November 2016 PO Box 405, Anson House, Havilland Street, St Peter Port, Guernsey, Channel Islands GY1 3GF Tel: 44 (0) Fax: 44 (0) Website: Example Example Example Example XX1 1XX Dear Sir or Madam, Introduction You are currently a registered beneficiary (a Holder ) of the CEAF 2011 Defaulting Note Trust (the Trust ), which was created as a result of the liquidation in 2011 of the Close European Accelerated Fund Limited with ISIN GB00B0DB8N84 (the Company ). You hold 1,000 interests in the Trust and we have a payment to make to you of as further explained below. IT IS IMPORTANT THAT YOU READ THIS LETTER AND RESPOND PROMPTLY USING THE AUTHORITY ATTACHED. If you do not understand this letter please seek guidance from your investment manager, your bank or other suitable financial adviser. FOR NOMINEE COMPANIES: An example version of this letter for a Holder with 1,000 interests is available on the Trust s website at When the Company closed, you received on 29 July 2011 a final redemption payment of being 69.5 pence per share PLUS 1,000 interests in the Trust, being one per share. The Trust At the closure of the Company in July 2011, the Company held the following two debt securities (the Notes ): Nominal Note Issuer 2011 Estimated value 6,000,000 Glitnir Banki HF 0% Euro MTN ,051,608 6,000,000 Kaupthing Bunardarbanki HF 0% Euro MTN ,051,608 The issuers were Icelandic banks under administration. Creditors were asked to lodge claims and this the Company did and the claim was first made for the estimated value shown above. The Trust was created with the specific purpose of holding each of these claims on trust for the shareholders in the Company; so that the Company could be liquidated thus saving the high cost of maintaining the company structure. Close Investments Limited ( CIL ), the Anson Custody Limited is registered in Guernsey, number Registered Office: Anson House, Havilland Street, St Peter Port, Guernsey GY1 2QE. Regulated by the Guernsey Financial Services Commission

2 Company s Manager, provided the Trustee with an Expense Balance to meet the ongoing fees and costs of the Trust for a period of years. It now transpires that the Expense Balance remaining is not sufficient to continue the Trust out to 2031, being the end date of the new Notes received for the old Notes; as further explained below. Therefore part of this letter contains a request for all Holders to agree to contribute to the future running costs of the Trust and it is essential that such consent is given. The Defaulting Assets Title to the Notes was in July 2011 transferred from the Company to the Trust and at that time, on a per share basis, they each equated to an anticipated value of 25 pence per share, or in aggregate 50 pence per share in the Company. Thus the liquidation of the Company entitled each shareholder to receive from the Company a redemption payment of 69.5 pence per share PLUS one interest in the Trust. The Trust has been holding title to the Notes waiting for them to be redeemed by the defaulting banks, if ever. We are pleased to announce that such redemption payments have started to flow; but advise you now that the original claim worth 50 pence per share has in the interim been seriously compromised; as further explained below. Following a period of adjudication with the administrators of the banks as to which claims would be accepted, and after conversion of the claims from sterling into Icelandic krona, the Trustee reached settlements with the banks in the amount of approximately 5m equivalent (or 13 pence per share) for Glitnir and approximately 5.7m equivalent for Kaupthing (or 14 pence per share), equating to a total of 27 pence per share. These settlements were accepted by all creditors as a class in which the Trust represented a minute percentage of the total vote. Towards the end of 2015 the Icelandic banks in distress had managed to realise for cash a material part of their balance sheets and were ready to make a payment to their creditors, which includes the Trust. This prospect caused the Icelandic government to impose a Stability Tax to help mitigate the stress to be placed on their economy by such a massive sale of the country s currency by the receiving creditors. Eventually a compromise was reached and all creditors were asked to voluntarily agree to a Stability Contribution, which would create a situation whereby payments were able to be made. As before, all creditors agreed and the effect of the tax (approximately 24% for Glitnir and 14.2% for Kaupthing) reduced the value of the Trust s claims to a combined total of approximately 8.7m, equating to approximately 22 pence per share. In late 2015, the Icelandic banks announced a composition to settle their respective claims and, as a result, in early 2016 the Trust received the following: 1,744,000 in cash; 668,651 Glitnir HoldCo ehf Amortising Zero Coupon Notes due 2030; 668,651 Glitnir HoldCo ehf. Shares; 1,262,355 Kaupthing Bank HF 0% Convertible Notes due 18/01/2031; and 5,548,709 Kaupthing ehf. Shares. 2

3 Since these assets were received by the Trust, the banks have been paying down the new Notes at par, thus reducing the nominal amount by the value of the payment being made. Today, the Trust holds: 2,327,256 in cash; 181,467 Glitnir HoldCo ehf Amortising Zero Coupon Notes due 2030; 668,651 Glitnir HoldCo ehf. Shares; 1,262,355 Kaupthing Bank HF 0% Convertible Notes due 18/01/2031 equalling a value of 1,055,475 after applying a pool factor** of %; and 5,548,709 Kaupthing ehf. Shares. and the portion attributed to your 1,000 interests in the Trust is: in cash; * 4 Glitnir HoldCo ehf Amortising Zero Coupon Notes due 2030; *16 Glitnir HoldCo ehf. Shares; * Kaupthing Bank HF 0% Convertible Notes due 18/01/2031 equalling a value of after applying the pool factor**; and *140 Kaupthing ehf. Shares. The Trustee is ready to pay you the cash amount shown above upon completion and return of the enclosed PINK Form of Authority. *Once the cash is paid to you, your continuing interest in the Trust will be the remaining four lines of securities shown immediately above. ** The Clearing systems reflect early partial repayments by attributing a pool factor to all positions held with custodians. Custodians records will continue to reflect the nominal amount of the Notes held, and the Outstanding Principal Amount can be calculated by applying the pool factor in effect at the time. The intention of each bank is to continue paying down on their new Notes until As Trustee, we have no way of knowing whether and when any further payments on the new Notes might be made or know when the shares might begin to accrue a meaningful value of their own, if ever. What we do know as Trustee is that custody fees are being incurred to hold title to these securities and all Holders must now contribute towards meeting these costs together with meeting the future fees of the Trustee. 3

4 Meeting Future Trustee Fees and Costs As the new securities are dated 2030/31 this suggests that the Trust could continue until then and such was not contemplated when the Trust was first established. Furthermore, the new securities need to be held within Euroclear and this has required the Trustee to establish special custody arrangements, at a cost to the Trust and, again, this is a cost not anticipated at the time the Trust was established. Accordingly, so that the Trust may continue, we are asking ALL Holders to consent to contributing to these new ongoing fees and expenses by Wednesday 21 December If a Holder does not give this consent the Trustee may withhold their payment in case it becomes necessary to use it to cover future fees and expenses. Under the Trust instrument, the Trustee is required to distribute to Holders the full amount of cash received to-date and is preparing to do so in the amount of pence per interest. The Trustee proposes to make future cash distributions in November each year where holders are due to receive more than the De Minimis Amount of 10. Based on your current holding of 1,000 interests, your entitlement to a cash payment now is As regards all future monies paid down on the two new Notes (if any) which are received by the Trustee, the Trustee proposes to deal with such cash as follows: 1. There will first be paid out of such cash all custody, bank and administration fees incurred by the Trust together with a ***reserve for future costs anticipated until 2031; and 2. there will next be paid out of such cash the fees of the Trustee which have accrued and not been paid, together with a ***reserve for future Trustee fees anticipated until 2031; and 3. further cash distributions to Holders will be made annually in November each year subject to the De Minimis Amount of 10 per payment. ***The Expense Balance, provided by CIL to support the work of the Trustee, currently stands at 29,000 and the two reserves above are estimated to amount to 5,425 per annum or pence per interest per annum (0.14 pence per thousand interests) from now to This indicative reserve is provided on the sole basis that none of the existing Holders of the 39,550,000 interests leave the Trust. After the immediate cash payment has been made, it is the view of the Trustee that there exists a high probability of the top twenty-five Holders in the Trust redeeming their interests and taking in specie direct ownership of their underlying securities. The Trustee bases this view on the fact that the top twenty-five holders are financial institutions already having Euroclear custody arrangements in which to hold such securities. These holders represent nearly 36 million interests being 91% of the Trust. If this were to happen then the apportioned cost mentioned above of pence per interest will increase at least ten fold. 4

5 Should it transpire that all the assets are realised for cash and the Trust can be wound up well before 2031 then any reserves made for future costs and fees under points 1 & 2 above will be distributed back to the remaining Holders in their final payment. Winding Up the Trust The Trustee recognises that it is neither practical nor economical for the Trust to continue for a further 15 years to Further, the existing Trustee will be wishing to resign within the next three to eight years. Under the Trust instrument the Trustee has the following powers: A. The Trustee may resign on the appointment of a new trustee approved of by the top five Holders or those holding 35% of all interests, which ever is greater (a Beneficiaries Resolution ). B. The Trustee may terminate the Trust in a number of ways as follows; a) if the Expense Balance is insufficient to meet fees and costs the Trustee may appoint a new trustee approved of by a Beneficiaries Resolution; b) if a) fails the Trustee may transfer the Trust Fund absolutely to any one or more of the Holders owning the ten largest number of interests; c) if a) and b) fail the Trustee may: i abandon, settle or compromise any claim against the issuer for zero value and so declare the Trust at an end; or ii distribute the Trust Fund to the charities named in the Trust instrument and declare the Trust at an end. Please be advised that it is the wish of the Trustee to consolidate dramatically the 89 Holders in this Trust so that a workable solution can be found to wind up the Trust and pass any unclaimed interests to the charities named in the Trust instrument. DISPOSING OF YOUR RESIDUAL HOLDING OF INTERESTS As first indicated on page 3 after the current payment of has been paid to you, your interests in the Trust will represent an underlying interest in the following four lines of securities. 4 Glitnir HoldCo ehf Amortising Zero Coupon Notes due 2030; 16 Glitnir HoldCo ehf. Shares; Kaupthing Bank HF 0% Convertible Notes due 18/01/2031 equalling a value of after applying the pool factor**; and 140 Kaupthing ehf. Shares. The Trustee invites all Holders to consider the following methods of disposal of their interests. Take ownership in specie You have the right to approach the Trustee to redeem your interests and request the transfer in specie of the underlying four securities into your name, or that of your nominee owning a Euroclear Account, provided you meet all the transaction costs of doing so including those of 5

6 the Trustee s own custodian. To effect a redemption of interests in specie the Trustee will charge a fee of 500. To help you identify what you or your nominee s own custody arrangements must be, the ISINs for the Kaupthing Bank HF 0% Convertible Notes due 18/01/2031 are XS (Unrestricted Global Notes Certificates) and XS (Restricted Global Notes Certificates). The Kaupthing ehf. Shares are held in book entry form. Both the Kaupthing notes and shares are held through Euroclear and Clearstream, with the costs of transferring these notes dependant upon the relevant depositories own Participant s Tariff. The Glitnir notes and shares are held in book entry form with the Bank s Information Agent, who charge a fee of 900 to transfer interests held. Sell your interests to a third party You have the right to sell your interests in the Trust at any time to a third party and if this is of attraction, we attach details of two interested third parties who you may wish to contact. A Transfer Request Form to transfer title of your interests to a third party can be found at DNT.pdf. Other willing purchasers will from time to time be posted on the Trust s website at The Trustee s fee for processing a transfer of interests to a third party is 25 if the transferee is already a Holder and 50 if they wish to become a Holder; provided always any new Holder will be acquiring in excess of 100,000 interests and is acceptable to the Trustee. Join our Auction of Interests To help those Holders owning a small number of interests dispose of them in a cost effect manner, by spreading disposal costs across many Holders, we propose organising for all Holders an auction of aggregated interests so a meaningful number can be placed on offer. The Trustee s terms and intentions for doing this are: i. Acceptance of the offer to auction your interests is irrevocable; ii. If a meaningful number of interests can be aggregated the Trustee will levy a Disposal iii. Fee of 1,000 to be paid out of the disposal proceeds; iv. All participating interests will be transferred into the name of the Trustee as nominee for the Holder; v. The Trustee will determine if it is better to sell the interests to an existing Holder or dispose of the underlying securities in an in specie sale; vi. Interested purchasers of either interests or securities will be asked via a telephone auction organised by the Trustee to place their bids; and a decision will be taken. vii. The net sale proceeds, once received by the Trustee, will be paid to participating Holders as soon as possible. By accepting this offer to auction your interests at Part B of the enclosed PINK Form of Authority, you consent to the Trustee having absolute discretion as to the fair method of disposal ultimately taken, you consent to the transfer of your interests into the name of the Trustee and finally, once the disposal has occurred and all fees costs and charges have been settled, you confirm you will receive the Trustee s payment to you of your net sale proceeds in full and final payment of your interest in the Trust. 6

7 Disclaimer of Benefit Each Holder has the right under the Trust instrument to disclaim permanently their interests in the Trust, whereupon such interests shall lapse and be held by the Trustee for the remaining Holders. The Trustee recognises that it is neither practical nor economical for the Trust to continue for a further 15 years to Accordingly, the Trustee urges all Holders owning less than 250,000 interests to consider disposing of their remaining interests. FATCA and CRS reporting Enclosed please find a YELLOW Self Certification Form we require each Holder to complete. Payment of your cash entitlement cannot proceed without this form being completed, signed and returned to the Trustee. This is a regulatory requirement regarding FATCA and CRS. We require you to complete this section with your personal information and we will report your benefits from the Trust to the Guernsey Income Tax Authority when obligated to do so. They in turn may share such information with your own country s tax authority. COMPLETION OF THE PINK FORM OF AUTHORITY Part A comprises four consents, is compulsory and must be signed by the Holder and returned to the Trustee by Wednesday 21 December Part B comprises five choices to indicate your continued relationship with the Trust. Of the choices given at sections 1, 2 or 3 please sign none or just one of them. Where you do not wish to sign either of sections 1, 2 or 3 please tick either of sections 4 or 5. Please do this and return the form to the Trustee by Wednesday 21 December Part C is where you must enter your bank details so payment can be made to you. The name of the bank account given must be in the name of the Holder. If this is not possible please contact the Trustee with an explanation. RETURNING FORMS & FUTURE NEWS Upon you returning to us both the enclosed PINK Form of Authority and your YELLOW Self Certification form duly completed and signed, we will pay to your designated bank account your current cash entitlement. Failure to complete either document correctly will result in your payment not being made to you. Following this event, as the Trust receives future pay downs on the Notes, these receipts and indications of any future distributions will be advised on our website at 7

8 Going forward the website is the Trustee s prime means of communication with all Holders. If you would like to have an advice of future postings to the website please add your to the PINK Form of Authority where indicated. Yours faithfully John R Le Prevost Director for Anson Custody Limited as trustee of the CEAF 2011 Defaulting Note Trust 8