Conditions Of Issue Of Loanstock   In these Conditions "the Co-operative" and "Eighth Day" both mean On the Eighth Day Co-operative Limited, and "Loanstock" means 2003 Loanstock as issued under these conditions. £ means United Kingdom pounds sterling.   1. Issue
This issue of Loanstock was authorised at a General Meeting of the Co-operative on 6th March 2003, to be known as '2003 Loanstock', to be issued from 30th April 2003 and to mature on 29th April 2008. The issue is to be of no more than £1 million of Loanstock. Loanstock is to be issued in whole pound units only and is non-transferable.   2. Interest
Interest shall be paid on the amount of Loanstock shown on the application form, at the annual rate specified on the application form. The annual rate of interest shall be not more than 5%. The interest shall be calculated on the 29th April each year to the nearest penny. The interest shall be payable gross on the 29th April each year either in cash (our preferred option) or as a further allotment of Loanstock. For the interest to be paid as further Loanstock the pounds shall be issued as Loanstock and the pence shall stand as a debt of the Co-operative to the lender and be added to further interest payments. In the case of repayment of Loanstock on any date other than the 29th April, the sum repaid shall include interest calculated to the date of repayment.   3. Certificates
Certificates shall be given to show the issue of Loanstock. Further Certificates shall be given for the further Loanstock issued as interest payments. Consolidation of Certificates shall be possible upon receipt of the Certificates to be consolidated. Where part of the amount of Loanstock indicated on a Certificate is to be repaid, a new Certificate shall be issued in respect of the amount of Loanstock outstanding.   4. Repayment of Loanstock
The Loanstock shall be repaid in full on 29th April 2008. The Co-operative may, at its discretion, accept applications for early repayment of Loanstock subject to the following conditions:   a) A written notice stating the amount requested to be repaid shall be received at the registered office of the Co-operative together with the relevant Loanstock Certificate(s). b) Repayment shall normally be made after the period of time indicated below, depending on the amount to be repaid and so long as proper notice has been received:

Amount repaid	Notice
Less than £250	1 Week
Between £250 and £500	1 Month
More than £500	3 Months

  5. Repayment on Default
The co-operative shall repay its Loanstock in full immediately, if it should:a) Be in breach of these Conditions.b) Be overdue on any payment by 21 Days or more.c) Pass a resolution for winding up or make an effective instrument of dissolution or go into liquidation or have an administrative receiver appointed over any of its assets or have an administration order made against it.   6. Rights
Holding Loanstock confers no rights to attend meetings or participate in any way in the management of the Co-operative. Loanstock holders shall receive a copy of the Co-operative's annual report and accounts.   7. Order of Creditors
Note that the order of creditors for an Industrial and Provident Society like the Co-operative is; legal charges, preferential creditors, floating charges, unsecured creditors (which category includes Loanstock), trade creditors.