Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 112

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 112
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 if the Additional Tier 1 Securities were instead to convert into Ordinary Shares, such conversion
into Ordinary Shares would not cause a Relevant Tax Effect.

“Relevant Tax Effect” means
a circumstance, as at the Issue Date or at any time thereafter, that the Additional Tier 1 Securities fall outside the definition of “hybrid
capital instrument” in Section 475C of the Corporation Tax Act 2009.

No Change to the Terms on Non-Qualifying Relevant Event

If a Non-Qualifying Relevant Event occurs (including
if the Acquirer is a Governmental Entity), there is no provision for any automatic adjustment to the terms of the Additional Tier 1 Securities
whether in the manner provided for above in respect of a Qualifying Relevant Event, or at all, and therefore the provisions above under
“—Automatic Conversion” shall continue to apply and references herein to “Settlement Shares” and
“Ordinary Shares” will continue to refer to ordinary shares of LBG.

Conversion Price

The conversion price per Ordinary Share in respect
of the Additional Tier 1 Securities shall be £0.633, subject to the adjustments described under “—Anti-dilution Adjustment of the Conversion Price” below (the “Conversion Price”).

In addition to or as an alternative to any Settlement Shares Offer, LBG may (but is not obliged to) procure that a share sale facility is established by the Settlement Share Depository or another third party following a Trigger Event to enable holders of the Additional Tier 1 Securities (at their option) to sell any Settlement Shares which they are entitled to receive from the Settlement Share Depository. If such a share sale facility is established, LBG would also expect to provide a preferential allocation to existing shareholders of LBG, where in LBG’s sole discretion it considers it practicable to do so and subject to applicable laws and regulations.

Anti-dilution Adjustment of the Conversion Price

References to the Conversion Price and Ordinary
Shares below shall be deemed to include any New Conversion Price and any Relevant Shares, such that any New Conversion Price shall be
subject to price adjustments upon the occurrence of the events below, subject to any modifications as an Independent Adviser shall determine
to be appropriate.

Upon the occurrence of any of the events described
below, the Conversion Price shall be adjusted as follows:

| (i) | If and whenever there shall be a consolidation, reclassification, redesignation or subdivision in relation to the Ordinary Shares        
 which alters the number of Ordinary Shares in issue, the