Exhibit 4(a) (vi)


Conformed copy


The Commissioners of Her
Majesty’s Treasury (the “Treasury”)

1 Horse Guards Road

London 

SW1A 2HQ


The Secretary of State,
Department for Business, Enterprise and Regulatory Reform (“BERR”)

1 Victoria Street

London 

SW1H 0ET


The Secretary of State,
Department for Communities and Local Government (“DCLG”)

Eland House

Bressenden Place

London

SW1E 5DU


6 March 2009


Ladies and Gentlemen,


LENDING COMMITMENTS


	
 

	
 


	
1.

	
Introduction


	
 

	
 


	
Lloyds Banking Group
 plc (the “Participating Institution”) notes that:


	
 

	
 


	
(A)

	
the Asset Protection
 Scheme (the “APS”) and the extension to the Credit Guarantee Scheme (the
 “CGS” and, together with the APS, the “Schemes”) announced by the Government
 on 19 January 2009 are part of a comprehensive package of measures the
 objective of which is to reinforce the stability of the financial system, and
 together with the Working Capital Scheme announced by the Government on 14
 January 2009 (the “WCS”), to increase confidence and capacity to lend, and in
 turn to support the recovery of the economy; 


	
 

	
 


	
(B)

	
participation in either
 or both of the Schemes by an institution having eligible liabilities (as
 determined by the Bank of England) above a threshold to be specified by the
 Treasury is subject to a verifiable commitment to be agreed between each
 participating institution and the Government to support lending to
 creditworthy borrowers in the real economy in a commercial manner; and 


	
 

	
 


	
(C)

	
in determining the
 requisite lending commitments, the Treasury, BERR and DCLG (together, the
 “Government Departments”) have consulted closely with each other in relation
 to sectors of the economy for which they have responsibilities, and will
 continue to consult closely with each other as appropriate in relation to the
 implementation and 












2


	
 

	
 


	
 

	
operation of the
 lending commitments given or to be given by certain institutions which
 participate in either or both of the Schemes.





In connection with the
above, this document is being entered into by the Participating Institution by
way of a deed poll in favour of the Government Departments and specifies: (i)
the lending commitments given by the Participating Institution for itself and
on behalf of its Group, in connection with its proposed participation in the
Schemes, comprising Business Lending Commitments and a Homeowner Lending
Commitment (each as defined in paragraph 3(A) and together, the “Lending
Commitments”); and (ii) certain associated undertakings being given by the
Participating Institution in connection with the implementation and operation
of the Lending Commitments. 


The Participating
Institution agrees that the undertakings given in this Deed Poll (including the
Lending Commitments) are intended to be binding on it and the provision of such
undertakings is a pre-requisite to the Participating Institution’s proposed
participation in the Schemes.


References in this Deed
Poll to the “Participating Institution” mean (where appropriate) the
Participating Institution and the members of the Participating Institution’s
Group forming part of its UK banking operations.


	
 

	
 


	
2.

	
Commencement
 of Lending Commitments


	
 

	
 


	
The Participating
 Institution undertakes (for itself and on behalf of its Group) to commence
 the implementation of the Lending Commitments with effect from 1 March 2009
 and in doing so, to act in good faith, having regard to the purpose of the
 Lending Commitments to support lending to creditworthy borrowers in the real
 economy in a commercial manner. The implementation of the Lending Commitments
 is subject to the terms and conditions of this Deed Poll.


	
 


	
3.

	
The
 Lending Commitments: General


	
 

	
 


	
The Participating
 Institution undertakes on the terms and subject to the provisions of this
 Deed Poll:


	
 


	
(A)

	
to increase the supply
 of lending by the UK banking operations of the Participating Institution to
 UK businesses (as further described in paragraph 4 below) (the “Business
 Lending Commitments”) and to homeowners (including first time buyers) (as
 further described in paragraph 5 below) (the “Homeowner Lending Commitment”);
 and 


	
 

	
 


	
(B)

	
to implement the
 Business Lending Commitments and the Homeowner Lending Commitment without
 distortion to its lending activities to other sectors of the real economy
 (including unsecured consumer lending) in the UK and, in doing so, to pay due
 regard to the level of demand and the normal distribution of maturities of
 lending to other sectors of the real economy.





Notwithstanding the
foregoing, the Participating Institution notes that the Lending Commitments are
not intended to require or cause the Participating Institution to do anything
that would constitute a breach by it of the Financial Services and Markets Act
2000 (“FSMA”), the rules made by the Financial Services Authority (“FSA”) or
the FSA’s supervisory framework (together,






3


the “FSA Requirements”),
to lend in excess of its single name or sectoral risk concentration limits or
otherwise to engage in uncommercial practices. 


In implementing the
Lending Commitments, the Participating Institution will adhere to Principle 6
of the FSA’s Principles for Business (“a firm must pay due regard to the
interests of its customers and treat them fairly”) in respect of its lending
activities.


The Lending Commitments
will be subject to the Participating Institution’s prevailing commercial terms
and conditions, including pricing, and risk assessment; and, additionally,
residential mortgage lending will be subject to the applicants meeting the
Participating Institution’s standard credit and other acceptance criteria which
must be reasonable for a prudent banking institution. 


	
 

	
 


	
4.

	
The
 Business Lending Commitments


	
 

	
 


	
4.1

	
Scope
 of Business Lending Commitments





The Business Lending
Commitments apply to lending by the UK banking operations of the Participating
Institution to the following UK business categories (each, a “Relevant Business
Category” and together, “Relevant Businesses”): 


	
 

	
 


	
(A)

	
small and medium sized
 enterprises (or “SMEs”), which means UK businesses which are categorised by
 the Participating Institution as being small or medium sized enterprises by reference
 to their turnover being £15 million or less;


	
 

	
 


	
(B)

	
“Mid-Corporates”, which
 means UK businesses with a turnover of £500 million or less, excluding SMEs;
 and


	
 

	
 


	
(C)

	
“Large Corporates”,
 which means UK businesses with a turnover in excess of £500 million.





For the purposes of this
Deed Poll: (i) “UK businesses” refers to firms, companies, partnerships, joint
ventures, associations and other undertakings engaged in economic activity in
the UK (including subsidiaries and branches of overseas entities
conducting such economic activities); and (ii) “turnover” refers to the
relevant UK business’s turnover, as stated in its most recent annual accounts
or, where the UK business is part of a group, the consolidated annual turnover
of the group.


As stated in paragraph 3,
lending pursuant to the Business Lending Commitments will be subject to the
Participating Institution’s prevailing commercial terms and conditions,
including pricing, and risk assessment.






4


	
 

	
 


	
4.2

	
 Baseline for determining
 compliance with Business Lending Commitments


	
 

	
 


	
The Participating
 Institution undertakes:


	
 


	
(A)

	
in respect of the 12
 month period commencing 1 March 2009 (the “2009 commitment period”) and the
 12 month period commencing 1 March 2010 (the “2010 commitment period”), to
 increase lending (as defined in paragraph 4.9) above the lending figure specified in the
baseline plan by the amounts
 specified in paragraphs 4.3 to 4.8 inclusive; and


	
 

	
 


	
(B)

	
to implement the
 Business Lending Commitments in line with demand from different industry
 sectors operating in the real economy and, subject to demand, in line with
 the normal distribution of maturities of loans to each Relevant Business
 Category.


	
 

	
 


	
 

	
For the purposes of  this
    Deed Poll, the "baseline plan" means
the Participating Institution’s forecast as at 31 December 2009 (before
the impact of the Lending Commitments) that the Participating Institution has
shared with the Government Departments.



	
 

	
 


	
4.3

	
Aggregate
 Business Lending Commitment


	
 

	
 


	
In respect of the 2009
 commitment period, the Participating Institution undertakes to increase its
 lending to Relevant Businesses by, in aggregate, an additional £11.0 billion
 above the amount shown in the baseline plan. In satisfying this aggregate lending
 commitment, the Participating Institution shall increase its lending to each
 Relevant Business Category by (at a minimum) the amount specified in paragraphs
 4.4 to 4.6 inclusive.


	
 


	
4.4

	
SMEs:
 2009 commitment


	
 

	
 


	
The Participating
 Institution undertakes that, in respect of the 2009 commitment period, its
 lending to SMEs will be at least ***1 above the amount shown in
 the baseline plan.


	
 


	
4.5

	
Mid-Corporates:
 2009 commitment


	
 

	
 


	
The Participating
 Institution undertakes that, in respect of the 2009 commitment period, its
 lending to Mid-Corporates will be at least ***1 above the amount
 shown in the baseline plan.


	
 

	
 


	
4.6

	
Large
 Corporates: 2009 commitment





The Participating
Institution undertakes that, in respect of the 2009 commitment period, its
lending to Large Corporates will be at least ***1 above the amount
shown in the baseline plan.


The Participating
Institution will work constructively by: (i) participating in forums
established or supported by the Government or the Bank of England; (ii) working
with the Government and the Bank of England to develop guidelines for lenders;
and (iii) continuing its ordinary course


	
 


	



	
 


	
1*** Indicates omission
of material, which has been separately filed,
pursuant to a request for confidential treatment. 












5


activities and processes
(including with respect to the syndication of facilities), to address or reduce
any risk concentrations arising from this Business Lending Commitment.


	
 

	
 


	
4.7

	
Inter-relationships
 between WCS and Business Lending Commitments





The Participating
Institution has agreed to participate in the WCS and undertakes that the
capital released by its participation in the Scheme will be redeployed in
support of lending to SMEs and Mid-Corporates for all forms of finance. This
release of capital will enable the Participating Institution to provide ***1 of
the £11.0 billion increase in lending referred to in paragraph 4.3 and, as
such, the Participating Institution notes that the commitment given in respect
of capital released by its participation in the WCS: (i) is incorporated within
the Business Lending Commitment for the Relevant Business Categories; and (ii)
will be subject to the monitoring, reporting and compliance arrangements
described in paragraphs 8, 9 and 11.


	
 

	
 


	
4.8

	
Lending
 to business: 2010 commitment





In respect of the 2010
commitment period, the Participating Institution undertakes to maintain similar
levels of lending to each of the Relevant Business Categories as in the 2009
commitment period, subject to adjustment of the commitments (pursuant to
paragraph 6) by agreement with the Treasury and BERR to reflect circumstances
at the start of the 2010 commitment period.


	
 

	
 


	
4.9

	
Application
 of Business Lending Commitments





For the purpose of the
Business Lending Commitments “lending” means financing facilities granted
(whether drawn or undrawn), in each case to real economy UK businesses,
including (without limitation) loans, overdrafts, hire purchase and leasing of
business assets, invoice discounting and export finance, but excluding (without
limitation) derivatives and interbank financing and which are outstanding as at
the end of the 2009 commitment period or the 2010 commitment period (as
appropriate). 


For the purposes of the
above: (i) debt which is exchanged for equity in a restructuring of a borrower,
and impairments and write-offs of outstanding lending (save to the extent such
impairments and write-offs are already reflected in the baseline plan),
shall be treated as if it was still lending, except to the extent that such
adjustments to the quantum of outstanding lending are recovered or are recoverable
through the APS; and (ii) debt which is repaid by a borrower as a consequence
of that borrower raising capital through other means, including (without
limitation) through disposals, equity issuance and bond issuance, shall be
treated as if it was still lending. 


	
 


	



	
 


	
1*** Indicates omission
of material, which has been separately filed,
pursuant to a request for confidential treatment. 












6


	
 

	
 


	
4.10

	
Marketing
 relating to Business Lending Commitments





The Participating
Institution undertakes that it will promptly ensure that its staff are aware of
the Business Lending Commitments and actively seek to implement such
commitments through sales and marketing activities which are targeted at
Relevant Businesses, which shall include both existing borrowers and new
potential borrowers. These activities will, where reasonably appropriate, make
specific provision for UK businesses that would be categorised by the
Participating Institution as Mid-Corporates or Large Corporates and whose
borrowings were financed, or are financed, by financial institutions that have
reduced, or are in the process of, reducing their lending activities to UK
businesses.


	
 

	
 


	
4.11

	
General
 provisions about lending to business





In relation to lending to
Relevant Businesses, the Participating Institution will:


	
 

	
 


	
(A)

	
commit to its lending
 allocation under the Enterprise Finance Guarantee Scheme, subject to the
 Participating Institution’s ordinary course pricing and other terms;


	
 

	
 


	
(B)

	
apply for and, if
 approved, use the European Investment Bank’s intermediated financing schemes
 aimed specifically at SMEs and “Midcaps” (as defined by the European
 Investment Bank);


	
 

	
 


	
(C)

	
actively and
 constructively participate in the funding of UK export credits where such
 funding is subject to the Export Credits Guarantee Department guarantee
 arrangements;


	
 

	
 


	
(D)

	
abide by the revised
 British Bankers’ Association statement of principles for small business
 lending released on 12 December 2008 (as agreed at the Small Business Finance
 Forum held on 11 November 2008);


	
 

	
 


	
(E)

	
not reduce or withdraw,
 or increase its charges on, working capital lines when credit insurance
 covering the borrower’s suppliers has been reduced or withdrawn, without due
 and careful consideration and unless it is satisfied, through the application
 of its ordinary course commercial and risk assessment, that there has been a
 material adverse change in the credit risk associated with the relevant
 business that justifies such an action;


	
 

	
 


	
(F)

	
continue to apply
 ordinary course commercial practices as a prudent banking institution in
 determining whether to call a default against a business to which it has made
 a loan; and


	
 

	
 


	
(G)

	
work constructively
 with other lenders and, where appropriate, the Government in exploring the
 full range of restructuring possibilities for corporate borrowers, and to do
 so in compliance with the International Association of Restructuring,
 Insolvency and Bankruptcy Professionals’ (INSOL) “Statement of Principles for
 a Global Approach to Multi-creditor Workouts”.












7


The Participating
Institution notes that it has already committed to, and is making, funding of
£6.25 million available through the Capital for Enterprise Fund (announced by
BERR on 14 January 2009), which is a fund to provide long term finance for
businesses which have exhausted their normal lending facilities and which is
part of Government’s commitment to support the de-leveraging of commercially
viable over-leveraged businesses.


	
 

	
 


	
5.

	
Homeowner
 Lending Commitment


	
 

	
 


	
5.1

	
Scope
 of Homeowner Lending Commitment





The Homeowner Lending
Commitment applies to residential mortgage lending by the UK banking operations
of the Participating Institution to residential homeowners, including first
time buyers and buy-to-let mortgage lending, in respect of properties in the UK.
Residential and buy-to-let mortgage lending which involves the Participating
Institution lending by way of remortgage in circumstances where no property
purchase is involved shall be disregarded for these purposes.


	
 

	
 


	
5.2

	
Homeowner
 Lending Commitment: 2009 commitment





The Participating
Institution undertakes that, in respect of the 2009 commitment period, its
gross residential mortgage
lending will be at least £3.0 billion above the amount shown in the baseline plan. 


As stated in paragraph 3,
residential mortgage lending will be subject to the Participating Institution’s
prevailing commercial terms and conditions, including pricing, and risk
assessment; and, additionally, the applicants meeting the Participating
Institution’s standard credit and other acceptance criteria which must be
reasonable for a prudent banking institution.


	
 

	
 


	
5.3

	
Homeowner
 Lending Commitment: 2010 commitment





In the 2010 commitment
period, the Participating Institution undertakes to maintain similar levels of
gross residential mortgage lending as in the 2009 commitment period, subject to
adjustment of the commitment (pursuant to paragraph 6) by agreement with the
Government Departments to reflect circumstances at the start of the 2010
commitment period.


	
 

	
 


	
5.4

	
Application
 of Homeowner Lending Commitment





For the purposes of the
Homeowner Lending Commitment, the Participating Institution will ensure that: 


	
 

	
 


	
(A)

	
a range of residential
 mortgage products are available for residential mortgage applicants for
 residential mortgages across the loan-to-value (“LTV”) bands and up to at
 least 90% LTV;






	
 


	



	
 












8


	
 

	
 


	
(B)

	
applications for
 residential mortgage products are promptly processed and granted, subject to
 applicants meeting the Participating Institution’s standard credit and other
 acceptance criteria which must be reasonable for a prudent banking
 institution and pay due regard to the obligation to sell appropriate products
 to applicants; and


	
 

	
 


	
(C)

	
additional residential
 mortgage lending is offered across a normal distribution of LTV bands and in
 accordance with ordinary course commercial practices as a prudent banking
 institution.


	
 

	
 


	
5.5

	
Marketing
 relating to Homeowner Lending Commitment





The Participating
Institution undertakes that it will promptly ensure that its staff are aware of
the Homeowner Lending Commitment and actively seek to implement such commitment
through sales and marketing activities targeted at residential homeowners
(including first time buyers). The communication of the Homeowner Lending
Commitment to staff, and the marketing of such commitment to residential
homeowners shall, in particular, address the specific obligations undertaken by
the Participating Institution pursuant to paragraph 5.4.


	
 

	
 


	
5.6

	
General
 provisions about lending to homeowners





The Participating
Institution will:


	
 

	
 


	
(A)

	
actively participate in
 the Government’s Homeowners Mortgage Support Scheme (when the detail of this
 scheme is finalised), Mortgage Rescue Scheme and Support for Mortgage
 Interest and work to ensure that its eligible borrowers have the opportunity
 to benefit from these Schemes (where appropriate) and avoid repossession; and


	
 

	
 


	
(B)

	
abide by the principles
 established by, and actively and constructively participate in, the Home
 Finance Forum (including policies for supporting individual borrowers in
 difficulty). 


	
 

	
 


	
5.7 

	
Other provisions 





The Participating
Institution will:


	
 

	
 


	
(A)

	
actively and
 constructively participate in the Consumer Finance Forum;


	
 

	
 


	
(B)

	
abide by the principles
 agreed as part of the Credit Card Summit on 28 November 2008; and


	
 

	
 


	
(C)

	
work closely with
 registered social landlords with a view to continuing the supply of
 appropriate finance.


	
 

	
 


	
6.

	
Adjustment
 of Lending Commitments





The Participating Institution
acknowledges that, as a consequence of its ongoing dialogue with the Government
Departments regarding the operation and implementation of the Lending
Commitments, it may be appropriate for the Government Departments (in their
discretion but acting reasonably and in consultation with the Participating
Institution) to: (i) reduce the






9


quantum of the Homeowner
Lending Commitment and/or one or more of the Business Lending Commitments; or
(ii) allow the Participating Institution to increase its lending to one or more
Relevant Business Categories by the amount of any shortfall in residential
mortgage lending (any such increase and shortfall being calculated as an
equivalent amount on a risk-weighted asset basis) (a “Commitment Adjustment”). 


The circumstances in
which the Government Departments may make such an adjustment to the Lending
Commitments include, but are not confined to, the following: 


	
 

	
 


	
(A)

	
changes to economic
conditions, the competitive market landscape and/or the economic assumptions
of the Participating Institution which have been shared with the Government
Departments and underlie the baseline plan (including, without limitation, the
    level of demand for business and residential mortgage lending at the Participating
    Institution’s ordinary
course pricing and terms and the level of availability within the market of
other forms of debt and equity finance to UK businesses); 


	
 

	
 


	
(B)

	
significant changes to
 the utilisation and drawdown rates of lending UK businesses assumed in the baseline plan;


	
 

	
 


	
(C)

	
changes to the
 Government Departments’ expectations as to the amount of lending needed to
 maintain economic activity; and


	
 

	
 


	
(D)

	
updated assessments of
 the extent to which the Participating Institution has relied on Government
 support and the nature of the support utilised by the Participating Institution.





In determining whether to
make a Commitment Adjustment, the Participating Institution understands that
the Government Departments will have regard to (and act reasonably in
considering) any submissions made by the Participating Institution as part of
its ongoing dialogue with the Government Departments regarding the operation
and implementation of the Lending Commitments (including (without limitation)
with respect to the Homeowner Lending Commitment and Business Lending
Commitments applicable in respect of the 2010 commitment period). 


If the Government
Departments are satisfied that the Lending Commitments are no longer necessary
to address the Government’s objectives of reinforcing the stability of the
financial system, increasing confidence and capacity to lend, and in turn
supporting the recovery of the economy, they may agree that they should cease
to apply.


The Participating
Institution will comply with the Lending Commitments in accordance with the
provisions of this Deed Poll on the understanding that: (i) the Schemes will be
established by the Government; and (ii) the Participating Institution will
participate in either or both of the


	
 


	



	
 












10


Schemes on terms to be
agreed with the Government. It is understood that the Government will, in
consultation with the Participating Institution and acting reasonably, make an
appropriate Commitment Adjustment if the APS is not implemented
within the timeframes anticipated for such implementation; and that if
the APS is not implemented within the timeframes anticipated for such
implementation and the Participating Institution only participates in the CGS,
that the Government will, in consultation with the Participating Institution
and acting reasonably, make an appropriate Commitment Adjustment having
regard to the quantum of financial support being provided by the Government to
the Participating Institution pursuant to the CGS.


If any preference shares
held by the Treasury in the capital of the Participating Institution are
exchanged for ordinary shares, the Participating Institution agrees that it
shall increase the lending being made available to support creditworthy
borrowers in the real economy. The quantum of such increased lending shall be
determined by reference to the increased lending capacity of the Participating
Institution after taking account of the long term effects of the exchange of
the preference shares. Such increased lending will take account of demand for
business and residential mortgage lending at the Participating Institution’s
prevailing terms and conditions, including pricing, and risk assessment; and,
additionally, any increased residential mortgage lending will be subject to the
applicants meeting the Participating Institution’s standard credit and other
acceptance criteria. 


	
 

	
 


	
7.

	
Interaction
 of Lending Commitments with previous commitments





The Participating
Institution notes that the Lending Commitments supersede the lending
commitments given by the Participating Institution in October 2008 in
connection with its participation in the Government’s Recapitalisation Scheme. 


	
 

	
 


	
8.

	
Monitoring
 and Reporting


	
 

	
 


	
8.1

	
General
 requirements





The Participating Institution
agrees that:


	
 

	
 

	
 


	
(A)

	
compliance with the
 Lending Commitments will be subject to a monitoring and reporting process
 between the Participating Institution and the Government Departments which
 will be detailed, transparent and determined by the Government Departments
 (acting reasonably) in consultation with the Participating Institution;


	
 

	
 

	
 


	
(B)

	
it will report to the
 Government Departments:


	
 

	
 

	
 


	
 

	
(i)

	
on a monthly basis in a
 format, with content and within timescales, to be determined by the
 Government Departments (acting reasonably) in consultation with the
 Participating Institution (the “monthly reports”) and that: (a) in respect of
 the Business Lending Commitments, the monthly report will include (without
 limitation) the information and data described in paragraph 8.2; and (b) in
 respect of the Homeowner Lending Commitment, each monthly report will include
 (without limitation) the information and data described in paragraph 8.3; and












11


	
 

	
 

	
 


	
 

	
(ii)

	
on an annual basis in a
 format, with content and within timescales, to be determined by the
 Government Departments (acting reasonably) in consultation with the
 Participating Institution (the “annual reports”) to facilitate the reporting
 by the Government Departments envisaged in paragraph 8.5(B) and that each annual
 report will include (without limitation) the information and data described
 in paragraph 8.4; and 


	
 

	
 


	
(C)

	
the monthly reports and
 annual reports will be submitted to the board of directors of the
 Participating Institution (the “Board”) prior to delivery to the Government
 Departments and, upon delivery to the Government Departments, will be
 accompanied by a certificate from a Board director that, to the best of his
 or her knowledge and belief, having made reasonable enquiries, the report
 fairly presents the relevant data and is not misleading for the purpose of
 assessing compliance with the Lending Commitments or the achievement of their
 purpose.





Without prejudice to the
specific requirements set out in this paragraph 8, the Participating
Institution undertakes to be open and honest in its dealings with the
Government Departments in relation to the implementation and operation of the
Lending Commitments and will promptly provide each Government Department with
such other information as it reasonably requires in connection with the Lending
Commitments.


	
 

	
 


	
8.2

	
Business
 Lending Commitments: monthly reports





In relation to the
Business Lending Commitments, the monthly reports will include:


	
 

	
 


	
(A)

	
a segmental analysis
 showing new and outstanding lending and commitments divided by both size of
 business (corresponding to the Relevant Business Categories) and industry
 sector;


	
 

	
 


	
(B)

	
(in respect of SMEs)
 application numbers and acceptance rates by type of financing, together with
 the credit risk rating of businesses;


	
 

	
 


	
(C)

	
a summary of the
 distributions of the pricing and terms on which lending is being made
 available and details of the credit and risk assessment methodology; 


	
 

	
 


	
(D)

	
a narrative commentary
 on new lending activities in respect of new and existing borrowers; and


	
 

	
 


	
(E)

	
a narrative commentary
 on the data, explaining the reasons for any significant variances in the
 amount of outstanding loans and availability of credit by size of business or
 sector from the baseline plan.








	
 


	



	
 












12


	
 

	
 


	
8.3

	
Homeowner
 Lending Commitment: monthly reports





In relation to the
Homeowner Lending Commitment, the monthly reports will include:


	
 

	
 


	
(A)

	
a segmental analysis
 showing new loans (gross new residential mortgage lending), credit
 availability and end of month stock of loans (net outstanding residential
 mortgage lending) divided by transaction type (including LTV and Loan to
 Disposable Income (“LDI”) ratios);


	
 

	
 


	
(B)

	
application numbers and
 acceptance rates by product, together with the bureau credit rating scores of
 applicants, against the corresponding numbers for 2008;


	
 

	
 


	
(C)

	
a summary of the
 distributions of the pricing and terms on which lending is
 being made available and of the credit and risk assessment methodology; and


	
 

	
 


	
(D)

	
a narrative commentary
on the data, explaining the reasons for any significant variances in the
amount of outstanding loans and availability of credit by transaction type from the baseline plan. 


	
 

	
 


	
8.4

	
Lending
 Commitments: annual reports


	
 


	
The annual reports will
 include information of a type which is broadly equivalent to the data and
 information to be contained in the monthly reports.


	
 


	
8.5

	
Public
 disclosure 


	
 


	
The Participating
 Institution agrees that:


	
 


	
(A)

	
the Government
 Departments may publicly announce details of the Lending Commitments and the
 associated obligations and undertakings of the Participating Institution as
 described in this Deed Poll; and 


	
 

	
 


	
(B)

	
each of the Government
 Departments may report to Parliament and Parliamentary committees (including
 the Public Accounts Committee and the House of Commons Treasury Select
 Committee) on implementation of, and compliance with, the Lending
 Commitments, with such reporting expected to be undertaken on an annual
 basis.


	
 

	
 


	
8.6

	
Confidentiality


	
 


	
Certain data and
 information to be included within the monthly reports, or otherwise provided
 to the Government Departments by the Participating Institution pursuant to
 this Deed Poll, will be anonymised to preserve customer confidentiality and
 will constitute confidential, commercially sensitive data. 







	
 


	



	
 












13


This Deed Poll (including the baseline plan),
and confidential information provided to Government Departments pursuant to
this Deed Poll (including the monthly and annual reports), is or will be
(without prejudice to the rights of the Government Departments described in
paragraph 8.5(A)) subject to confidentiality and freedom of information
arrangements between the Participating Institution and each of the Government
Departments on the terms set out in the confidentiality agreements between the
Participating Institution and each of the Government Departments dated 27
February 2009). 


	
 

	
 


	
9.

	
Implementation
 plan





The Participating
Institution undertakes that, as soon as practicable after the Lending
Commitments take effect, it will prepare and present to the Government
Departments a plan which will address how the Lending Commitments are to be
implemented. Such implementation plan will include the Participating
Institution’s proposals regarding the marketing and sales activities to be
undertaken pursuant to paragraphs 4.10 and 5.5. 


	
 

	
 


	
10.

	
Incentivisation





The Participating
Institution will, in applying its balanced scorecard approach to remuneration,
ensure that the performance assessment for staff employed in business units
responsible for delivery of the Lending Commitments will include an assessment
of new lending arising from the marketing and sales activities undertaken
pursuant to the Participating Institution’s obligations under paragraphs 4.10
and 5.5.


	
 

	
 


	
11.

	
Compliance





Any failure to comply
with the Lending Commitments or the other obligations of, or undertakings given
by, the Participating Institution under this Deed Poll will initially be
addressed through the reporting mechanism which will provide the Government
Departments with a framework to discuss with the Participating Institution the
background to and reasons for such failure.


In addition, failure to
comply with the Lending Commitments may result in the withdrawal or restriction
of the Participating Institution’s eligibility to roll over coverage under the
CGS from three to five years.


	
 

	
 


	
12.

	
Miscellaneous


	
 

	
 


	
12.1

	
Representations
 and warranties





The Participating
Institution represents and warrants that:


	
 

	
 


	
(A)

	
it has the corporate
 power and the authority to enter into this Deed Poll and to carry out its
 obligations, and the undertakings given by it, hereunder;








	
 


	



	
 












14


	
 

	
 


	
(B)

	
it is duly organised
 and validly existing under the laws of its jurisdiction of organisation, and
 the execution of this Deed Poll and the consummation of the transactions
 contemplated herein have been duly authorised by all necessary action, and no
 other act or proceeding, corporate or otherwise, on its part is necessary to
 authorise the execution of this Deed Poll or the consummation of any of the
 transactions contemplated hereby; and


	
 

	
 


	
(C)

	
it has duly executed
 and delivered this Deed Poll.


	
 

	
 


	
12.2

	
Costs





The Participating
Institution agrees that it shall pay its own costs and expenses in relation to
the negotiation, preparation, execution and carrying into effect of this Deed
Poll.


	
 

	
 


	
12.3

	
Remedies





The Participating
Institution agrees that:


	
 

	
 


	
(A)

	
(without prejudice to
 any other rights or remedies which any Government Department may have)
 damages would not be an adequate remedy for any breach by the Participating
 Institution of the provisions of this Deed Poll and each Government
 Department shall be entitled to seek the remedies of injunction, specific
 performance and other equitable relief for any threatened or actual breach of
 any such provision by the Participating Institution and no proof of special
 damages shall be necessary for the enforcement by any Government Department
 of its rights under this Deed Poll; 


	
 

	
 


	
(B)

	
no failure of any
 Government Department to exercise, and no delay by any Government Department
 in exercising, any right, power or remedy in connection with this Deed Poll
 will operate as a waiver thereof, nor will any single or partial exercise of
 any such right preclude any other or further exercise of such right or the
 exercise of any other right; and


	
 

	
 


	
(C)

	
the rights provided in
 this Deed Poll are cumulative and not exclusive of any rights (whether
 provided by law or otherwise). 


	
 

	
 


	
12.4

	
Invalidity





If any provision of this
Deed Poll shall be held to be illegal, invalid or unenforceable, in whole or in
part, under any enactment or rule of law, such provision or part shall to that
extent be deemed not to form part of this Deed Poll but the legality, validity
and enforceability of the remainder of this Deed Poll shall not be affected.


	
 

	
 


	
12.5

	
Assignment





The Participating
Institution agrees that each of the Government Departments may assign their
respective rights under this Deed Poll to: (i) a governmental,
quasi-governmental or regulatory body; or (ii) a body or entity established by,
or owned by, one or more of the Government Departments (including any body or
entity established to monitor and administer the APS). 






15


	
 

	
 


	
12.6

	
Variation





Any term of this Deed
Poll may be amended, and the observance of any term of this Deed Poll may be
waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Government Departments.


	
 

	
 


	
12.7

	
Governing
 law





This Deed Poll and any
non-contractual obligations arising out of or in connection with it shall be
governed by and construed in accordance with the laws of England.






16


IN WITNESS WHEREOF this Deed Poll has been
executed and delivered as a deed on 6 March 2009.


	
 

	
 

	
 

	
 


	
Executed and delivered
 as a deed by

	
)

	
 

	
 


	
LLOYDS BANKING GROUP PLC

	
)

	
 

	
 


	
acting by two directors
 / one director and its

	
)

	
By:

	
Sir Victor Blank


	
secretary

	
)

	
 

	
 


	
 

	
)

	
 

	
Chairman


	
 

	
)

	
 

	
 


	
 

	
)

	
 

	
 


	
 

	
)

	
 

	
 


	
 

	
)

	
By:

	
J. Eric Daniels


	
 

	
)

	
 

	
 


	
 

	
)

	
 

	
Group Chief Executive