Document:

Exhibit
4.17

         

      

      DATED
AS OF 13 OCTOBER 2008

       

       

       

      
 

       

      THE
ROYAL BANK OF SCOTLAND GROUP PLC

       

      

       

      UBS
LIMITED

       

      

       

      MERRILL
LYNCH INTERNATIONAL

       

      

       

      THE
COMMISSIONERS OF HER MAJESTY’S TREASURY

       

      

       

        
          

        

      

      
        

         

        AMENDMENT
AGREEMENT

        
 

         

          
            

          

        

        

      

      

       

      Slaughter and
May

      One Bunhill
Row

      London

      EC1Y
8YY

      (NV/PIRD/OJS)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

    

     

    THIS AGREEMENT is
made this 28th day of November 2008 and is deemed effective as of 13 October
2008 among:

     

    
      	
              (1)  

            	
              THE ROYAL BANK OF SCOTLAND
      GROUP PLC, a company incorporated in Scotland with registered
      number 45551 and whose registered office is at 36 St Andrew Square,
      Edinburgh EH2 2YB (the “Company”);

            

    

     

    
      	
              (2)  

            	
              UBS LIMITED, a company
      incorporated in England and Wales with registered number 2035362, whose
      registered office is at 1 Finsbury Avenue, London EC2M 2PP (“UBS”);

            

    

     

    
      	
              (3)  

            	
              MERRILL LYNCH
      INTERNATIONAL, a company incorporated in England and Wales with
      registered number 02312079 and whose registered office is at Merrill Lynch
      Financial Centre, 2 King Edward Street, London EC1A 1HQ (“Merrill Lynch”);
      and

            

    

     

    
      	
              (4)  

            	
              THE COMMISSIONERS OF HER
      MAJESTY’S TREASURY of 1 Horse Guards Road, London SW1A 2HQ (“HM
      Treasury”).

            

    

     

    WHEREAS:

     

    
      	
              (A)  

            	
              The Company,
      UBS, Merrill Lynch and HM Treasury entered into a Placing and Open Offer
      Agreement effective as of 13 October 2008 (the “Placing
      Agreement”);

            

    

     

    
      	
              (B)  

            	
              The Company
      and HM Treasury entered into a Preference Share Subscription Agreement
      effective as of 13 October 2008 (the “Preference Share
      Agreement”); and

            

    

     

    
      	
              (C)  

            	
              The Company,
      UBS, Merrill Lynch and HM Treasury desire to amend and restate the Placing
      Agreement and the Preference Share Agreement pursuant to the terms of this
      Agreement.

            

    

     

    NOW, THEREFORE, IN
CONSIDERATION FOR THE MUTUAL PROMISES CONTAINED HEREIN, THE SUFFICIENCY OF WHICH
IS HEREBY ACKNOWLEDGED, IT IS HEREBY AGREED AS FOLLOWS:

     

    
      	
              1.  

            	
              INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              Unless
      otherwise defined herein, terms and phrases used in this Agreement shall
      have the meanings given to them in the Preference Share Agreement, or, in
      the absence of any meaning given to it in the Preference Share Agreement,
      the Placing Agreement.

            

    

     

    
      	
              1.2  

            	
              In this
      Agreement, unless otherwise
specified:

            

    

     

    
      	
              (A)  

            	
              the headings
      are inserted for convenience only and shall not affect the construction of
      this Agreement;

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              (B)  

            	
              any reference
      to an enactment or statutory provision is a reference to it as it may have
      been, or may from time to time be, amended, modified, consolidated or
      re-enacted (and includes all instruments or orders made under the
      enactment);

            

    

     

    
      	
              (C)  

            	
              references to
      Clauses are to the Clauses of this Agreement;
  and

            

    

     

    
      	
              (D)  

            	
              references to
      “pounds” and
      “£” are references
      to the currency of the United
Kingdom.

            

    

     

    
      	
              2.  

            	
              AMENDMENTS
      TO THE PLACING AGREEMENT

            

    

     

    
      	
              2.1  

            	
              Definitions

            

    

     

    
      	
              (i)  

            	
              The
      definition of “JerseyCo Preference Shares” contained in the Placing
      Agreement shall be deleted and replaced with the
  following:

            

    

     

    ““JerseyCo Preference Shares”
means the JerseyCo “A” Preference Shares and the JerseyCo “B” Preference
Shares;”

     

    
      	
              (ii)  

            	
              The
      definition of “JerseyCo Ordinary Shares” contained in the Placing
      Agreement shall be deleted and replaced with the
  following:

            

    

     

    ““JerseyCo Ordinary Shares”
means the ordinary shares in the capital of JerseyCo to be issued to one of the
Joint Sponsors under the terms of the Option Agreement and the Subscription and
Transfer Agreement;”

     

    
      	
              (iii)  

            	
              The
      definition of “Preference Share Subscription Agreement” contained in the
      Placing Agreement shall be deleted and replaced with a definition of
      “Preference Share Acquisition Agreement”, which shall read as
      follows:

            

    

     

    ““Preference Share Acquisition
Agreement” means the agreement between the Company, UBS and HM Treasury
being effective as of the Effective Date pursuant to which HM Treasury agrees to
acquire the Preference Shares;”

     

    and the term
“Preference Share Subscription Agreement” shall be deleted, wherever it appears
in the Placing Agreement, and replaced with the term “Preference Share
Acquisition Agreement”

     

    
      	
              (iv)  

            	
              The
      definition of “Preference Share Subscription” contained in the Placing
      Agreement shall be deleted and replaced with a definition of “Preference
      Share Acquisition”, which shall read as
follows:

            

    

     

    “”Preference Share Acquisition”
means the proposed acquisition of Preference Shares pursuant to the Preference
Share Acquisition Agreement;””

     

    and the term
“Preference Share Subscription” shall be deleted, wherever it appears in the
Placing Agreement, and replaced with the term “Preference Share
Acquisition”.

     

    
      	
              (v)  

            	
              the following new definitions shall be
      added to clause 1.1 of the Placing
Agreement:

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    ““JerseyCo “A” Preference
Shares” means the redeemable “A” preference shares in the capital of
JerseyCo to be issued to one of the Joint Sponsors or a third party, in each
case under the terms of the Subscription and Transfer Agreement;”

     

    ““JerseyCo “B” Preference
Shares” means the redeemable “B” preference shares in the capital of
JerseyCo to be issued to one of the Joint Sponsors or a third party, in each
case under the terms of the Subscription and Transfer Agreement;”
and

     

    ““Preference Share Acquisition
Date” means 1 December 2008;”

     

    
      	
              (vi)  

            	
              The phrases
      “subscription for Preference Shares” and “subscription for the Preference
      Shares” shall be deleted, wherever they appear in the Placing Agreement,
      and replaced with the phrases “acquisition of Preference Shares” and
      “acquisition of the Preference Shares”
  respectively.

            

    

     

    
      	
              2.2  

            	
              Delivery
      of Documents

            

    

     

    In clause 2.1
(M)(vi) of the Placing Agreement the words “immediately prior to Preference
Admission” shall be replaced by the words “before 8 a.m. on the Preference Share
Acquisition Date”.

     

    
      	
              2.3  

            	
              Preference
      Admission

            

    

     

    
      	
              (i)  

            	
              Clause
      2.1(BB) of the Placing Agreement shall be deleted and replaced with the
      following:

            

    

     

    “there is no
indication on 1 December 2008 that Preference Admission will not occur on 2
December 2008.”

     

    
      	
              (ii)  

            	
              in clause 2.1
      (EE) the words “, subject only to Preference Admission,” shall be
      deleted;

            

    

     

    
      	
              (iii)  

            	
              in clause
      3.12(B) the words “(subject only to the allotment of the Preference
      Shares)” shall be deleted;

            

    

     

    
      	
              (iv)  

            	
              in clause
      3.28 the term “Preference Admission” shall be replaced by the words “8
      a.m. on the Preference Share Acquisition Date”;
  and

            

    

     

    
      	
              (v)  

            	
              in the
      heading to Part IV to Schedule 2 the term “Preference Admission “ shall be
      replaced by the words “8 a.m. on the Preference Share Acquisition
      Date”.

            

    

     

    
      	
              2.4  

            	
              Consideration

            

    

     

    Clause 4.3 of the
Placing Agreement shall be deleted and replaced with the following:

     

    “The consideration
for (i) the allotment and issue of the New Shares to the Open Offer Acceptors
and the Placees pursuant to clauses 4.1, 4.2 and 6.3 and (ii) the allotment and
issue of the Preference Shares to HM Treasury pursuant to Clause 2.1 of the
Preference Share Acquisition Agreement shall consist of the 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    transfer to the
Company by one of the Joint Sponsors (or a third party to whom its obligations
under the Subscription and Transfer Agreement are novated), in its capacity as
subscriber of the Consideration Shares, of the Consideration Shares (as more
particularly set out below in this clause 4.3) pursuant to the Subscription and
Transfer Agreement, PROVIDED THAT the JerseyCo Ordinary Shares and the JerseyCo
“B” Preference Shares shall constitute consideration only in respect of the
allotment and issue of the New Shares and not in respect of the allotment and
issue of any Preference Shares. Subject to Admission taking place, one of the
Joint Sponsors (or a third party to whom its obligations under the Subscription
and Transfer Agreement are novated) shall, as shall be set out in the
Subscription and Transfer Agreement and in its capacity as subscriber of the
Consideration Shares, deliver to, or as may be directed by, the Company duly
executed instruments of transfer in respect of the Consideration Shares held by
it, by which the Consideration Shares are transferred to the Company (or such
persons as the Company may direct). For the avoidance of doubt, UBS and Merrill
Lynch will be under no obligation to subscribe for Consideration Shares in an
amount in excess of the amount received by them (a) from Placees (other than HM
Treasury); (b) from Qualifying Shareholders pursuant to the Open Offer; and (c)
from HM Treasury.

     

    The Company acknowledges that neither
the New Shares nor the Preference Shares will be issued for less than their
respective nominal values.”

     

    
      	
              2.5  

            	
              Amendment
      to the Entire Agreement clause

            

    

     

    Clause 16.6 of the
Placing Agreement shall be amended by the insertion of the following text
between the term “Preference Share Subscription Agreement” (which will itself be
amended to “Preference Share Acquisition Agreement” pursuant to this Agreement)
and the phrase “(in the case of the Company...”:

     

    “(each as amended
by the Amendment Agreement made on 28November 2008 and effective as of 13
October 2008 between the parties hereto)”.

     

    
      	
              3.  

            	
              AMENDMENTS
      TO THE PREFERENCE SHARE AGREEMENT

            

    

     

    
      	
              3.1  

            	
              Title
      of the Preference Share Agreement

            

    

     

    The title of the
Preference Share Agreement (as appears on the front cover thereof and by way of
reference elsewhere in the Schedules thereto and pro-forma documents existing
thereunder) shall be changed from “Preference Share Subscription Agreement” to
“Preference Share Acquisition Agreement”.

     

    
      	
              3.2  

            	
              Introduction

            

    

     

    The first
occurrence of the word “is” shall be deleted from the phrase “THIS IS AGREEMENT
IS EFFECTIVE AS OF 13 OCTOBER 2008 BETWEEN:”.

     

    
      	
              3.3  

            	
              Additional
      parties to the Preference Share
Agreement

            

    

     

    UBS Limited, a
company incorporated in England and Wales with registered number 2035362, whose
registered office is at 1 Finsbury Avenue, London EC2M 2PP is hereby

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    added, and consents
to being added, as a party to the Preference Share Agreement. UBS Limited shall
be defined therein as “UBS”.

     

    
      	
              3.4  

            	
              Amendment
      to the Recital

            

    

     

    The Recital to the
Preference Share Agreement shall be amended by the deletion of the words
“subscribe for” and their replacement with the word “acquire”.

     

    
      	
              3.5  

            	
              Definitions

            

    

     

    
      	
              3.5.1  

            	
              The following
      additional definitions shall be added to Clause 1.1 of the Preference
      Share Agreement:

            

    

     

    “”Acquisition Date” means 1
December 2008;”

     

    ““Consideration Shares” means
the JerseyCo “A” Preference Shares;”

     

    ““JerseyCo “A” Preference
Shares” means redeemable “A” preference shares in the capital of JerseyCo
to be issued to UBS under the terms of the Subscription and Transfer
Agreement;”

     

    ““Receiving Agent” means the
receiving agent to be appointed pursuant to Clause 3.8 of the Placing
Agreement;” and

     

    ““Subscription and Transfer
Agreement” has the meaning ascribed to it in the Placing
Agreement.”

     

    
      	
              3.5.2  

            	
              The
      definition of “Subscription Date” shall
      be deleted.

            

    

     

    
      	
              3.6  

            	
              RBS
      Account

            

    

     

    The definition of
“RBS Account” contained in the Preference Share Agreement shall be deleted and
replaced with the following:

     

    ““RBS Account” means the account
in the name of the Receiving Agent with the following details :

     

    Bank: Royal Bank of Scotland
Plc

    Branch: London, City
Office

    Sort Code:
16-08-13

    Account No:
10005576

    Account Name: The Royal Bank
of Scotland Group plc Open Offer

    SWIFT code:
RBOSGB2L

    IBAN:
GB64RBOS16081310005576

     

    
      	
              3.7  

            	
              “Subscription
      Amount” and “Subscription Date”

            

    

     

    All references to
“Subscription Amount” and “Subscription Date” shall be deleted and replaced,
wherever they appear in the Preference Share Agreement, with the terms
“Acquisition Amount” and “Acquisition Date” respectively.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              3.8  

            	
              Clause
      2 to the Preference Share Agreement

            

    

     

    Clause 2 of the
Preference Share Agreement shall be deleted in its entirety and replaced with
the following:

     

    “2.           Agreement
to Acquire Preference Shares

     

    
      	
              2.1  

            	
              Upon the
      terms and subject to the conditions set out in Clause 3 of this Agreement
      and in reliance on the Warranties, HM Treasury agrees to acquire, and RBS
      agrees to allot and issue to HMT, the Preference
  Shares.

            

    

     

    
      	
              2.2  

            	
              The
      consideration for the allotment and issue of the Preference Shares to HM
      Treasury pursuant to clause 2.1 shall consist of the transfer to the
      Company by UBS in its capacity as subscriber of the Consideration Shares,
      of the Consideration Shares (as more particularly set out below in this
      clause 2.2) pursuant to the Subscription and Transfer Agreement, PROVIDED
      THAT such transfer shall also, in accordance with the terms of the Placing
      Agreement, constitute consideration in respect of the allotment and issue
      of the New Shares (as defined in the Placing Agreement) pursuant to
      clauses 4.1, 4.2 and 6.3 of the Placing Agreement. Subject to Admission
      (as defined in the Placing Agreement) taking place, UBS shall, as shall be
      set out in the Subscription and Transfer Agreement and in its capacity as
      subscriber of the Consideration Shares, deliver to, or as may be directed
      by, the Company duly executed instruments of transfer in respect of the
      Consideration Shares held by it, by which the Consideration Shares are
      transferred to the Company (or such persons as the Company may
      direct).  For the avoidance of doubt, UBS will be under no
      obligation to subscribe for Consideration Shares in an amount in excess of
      the amount received by it from HM
Treasury.

            

    

     

    The Company acknowledges that neither
the New Shares nor the Preference Shares will be issued for less than their
respective nominal values.

     

    
      	
              2.3  

            	
              As between
      the Company and UBS, any amounts received by UBS in respect of the
      Preference Shares from HM Treasury shall be received by UBS and the
      Company shall have no rights to receive such amounts from UBS or from HM
      Treasury. Such amounts shall be paid by HM Treasury into the RBS Account,
      being an account established on terms approved by HM Treasury, acting
      reasonably.

            

    

     

    
      	
              2.4  

            	
              For the
      avoidance of doubt, nothing in this Agreement confers or imposes on HM
      Treasury any right or obligation (conditional or otherwise) to subscribe
      for or acquire any shares in the capital of
  JerseyCo.”

            

    

     

    
      	
              3.9  

            	
              References
      to subscription for Preference
Shares

            

    

     

    The phrases
“subscription for Preference Shares” and “subscription for the Preference
Shares” shall be deleted, wherever they appear in the Preference Share
Agreement, and replaced with the phrases “acquisition of Preference Shares” and
“acquisition of the Preference Shares”, respectively. Any similar reference in
the Preference Share Agreement to the subscription for the Preference Shares
shall be deemed to be replaced with a reference to the acquisition of the
Preference Shares.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              3.10  

            	
              Warranties

            

    

     

    In clause 4.1(B) of
the Preference Share Agreement the term “Preference Admission” shall (on each
occasion when it is used) be replaced by the words “Admission (as defined in the
Placing Agreement)”.

     

    
      	
              3.11  

            	
              Insertion
      of a new Clause 5.1 to the Preference Share
  Agreement

            

    

     

    Clause 5.1 of the
Preference Share Agreement shall be deleted in its entirety and replaced with
the following:

     

    “Following delivery
of the instruments of transfer in respect of the Consideration Shares in
accordance with Clause 2.2 above, the Company shall allot and issue the
Preference Shares to HM Treasury (or its nominee) credited as fully paid and
procure that the Receiving Agent will, without delay on the day of Admission,
effect the registration, without registration fee, of HM Treasury (or its
nominee) as the holder of the Preference Shares and shall procure that such
Preference Shares are credited to any relevant accounts as specified in CREST
(without charging any administration fee).”

     

    
      	
              3.12  

            	
              Amendment
      to Clause 6

            

    

     

    Clause 6 of the
Preference Share Agreement shall be amended by the deletion of the word
“Subscription” in the title to that Clause, and its replacement with the word
“Acquisition”.

     

    
      	
              3.13  

            	
              Amendment
      to Clause 9

            

    

     

    Clause 9 of the
Preference Share Agreement shall be deleted and replaced with the
following:

     

    
      	
               
      

            	
              “RBS shall
      bear the costs and expenses of all parties in relation to the negotiation,
      execution, delivery, performance or enforcement of this Agreement and the
      acquisition and delivery of, and allotment and issue of, the Preference
      Shares (including, without limitation, any stamp duty or stamp duty
      reserve tax and any related interest and penalties) and shall indemnify
      the other parties hereto on an after-tax basis against such costs and
      expenses

            

    

     

    
      	
              3.14  

            	
              Amendment
      to the Entire Agreement clause

            

    

     

    Clause 11 of the
Preference Share Agreement (Entire Agreement) shall be
amended by the insertion of the following text between the term “Placing
Agreement” and the word “constitute”:

     

    “(each as amended
by the Amendment Agreement made on 28 November 2008 and effective as of 13
October 2008 between the parties hereto)”

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              3.15  

            	
              Notices

            

    

     

    UBS Limited shall
be deemed to be referred to in clause 12 with the same contact details as are
provided in respect of it in clause 18 of the Placing Agreement.

     

    
      	
              3.16  

            	
              Amendment
      to the Pro-forma Novation Agreement

            

    

     

    The Pro-forma
Novation Agreement set out in Schedule 2 to the Preference Share Agreement shall
be amended by (i) the addition of UBS as a party thereto; (ii) the deletion of
the phrase “subscribe for” as it appears in Recital (A) and its replacement with
the word “acquire”; and (iii) those other consequential changes stipulated
above.

     

    
      	
              4.  

            	
              OTHER
      PROVISIONS

            

    

     

    
      	
              4.1  

            	
              Governing
      law and jurisdiction

            

    

     

    This Agreement and
any non-contractual obligations arising out of or in connection with this
Agreement shall be governed by, and construed in accordance with, English
law.  The parties hereto submit irrevocably to the exclusive
jurisdiction of the English courts in relation to any dispute arising out of or
in connection with this Agreement.  Any proceeding, suit or actions
arising in connection therewith shall be brought in the English
courts.

     

    
      	
              4.2  

            	
              Counterparts

            

    

     

    
      	
              4.2.1  

            	
              This
      Agreement may be executed in any number of counterparts, and by the
      parties on separate counterparts, but shall not be effective until each
      party has executed at least one
counterpart.

            

    

     

    
      	
              4.2.2  

            	
              Each
      counterpart shall constitute an original of this Agreement, but all the
      counterparts shall together constitute but one and the same
      instrument.

            

    

     

    
      	
              4.3  

            	
              Agent
      for service of process in England and
Wales

            

    

     

    The Company shall
at all times maintain an agent for service of process and for service of any
other documents and proceedings in England and Wales, or any other proceedings
in connection with this Agreement.  Such agent shall be the London
office of the Company at 280 Bishopsgate, London and any writ, judgment or other
notice of legal process shall be sufficiently served on the Company if delivered
to such address for the time being.  The Company irrevocably
undertakes not to revoke the authority of the above agent and if, for any
reason, the agent ceases to act as such, the Company shall appoint a replacement
agent having an address for service in England and Wales and shall notify the
other parties to this Agreement of the name and address of such replacement
agent by notice in writing to their address first above written.  If
the Company fails to appoint another agent, HM Treasury (on behalf of itself and
the other parties hereto) shall be entitled to appoint one on the Company’s
behalf and at the Company’s expense.

     

    
      	
              4.4  

            	
              Costs
      and expenses

            

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    The Company shall bear the costs and expenses
of all parties in relation to the negotiation, execution, delivery, performance
or enforcement of this Agreement and the acquisition and delivery of, and
allotment and issue of, the Preference Shares (including, without limitation,
any stamp duty or stamp duty reserve tax and any related interest and penalties)
and shall indemnify the other parties hereto on an after-tax basis against such
costs and expenses.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    IN WITNESS of which
this Agreement has been duly executed by the parties hereto on the date
indicated above.

     

    

     

    
      	
              SIGNED by and
      for and on behalf of

              THE
      ROYAL BANK OF SCOTLAND GROUP PLC

               

              Date: 28
      November 2008

            	
              )

              )

              )

            	/s/
      [illegible]

    

     

     

    
      	
              SIGNED by and
      for and on behalf of

              UBS
      LIMITED

               

              Date:

            	
              )

              )

               

            	
              /s/
      [illegible]

              Director

            	
              /s/ David
      Seal

              David
      Seal

              Associate
      Director

            

    

     

     

    
      	
              SIGNED by and
      for and on behalf of

              MERRILL
      LYNCH INTERNATIONAL

               

              Date:

            	
              )

              )

               

            	/s/
      illegible

    

     

     

    
      	
              SIGNED by two
      of

              THE
      COMMISSIONERS OF HER MAJESTY’S TREASURY

              in the
      presence of:

               

              Date:

            	
              )

              )

              )

              )

            	/s/
      DeWatts	/s/ Steve
      McLabe

    

    

     

    
       

      
        10Exhibit
4.18

       

      November 2008

       

       

       

       

      UBS
LIMITED

       

       

      MERRILL
LYNCH INTERNATIONAL

       

       

      ENCUENTRO
LIMITED

       

       

      THE
ROYAL BANK OF SCOTLAND GROUP PLC

       

       

       

      
        

        

      

       

      
        FIRST
SUBSCRIPTION AND TRANSFER

        DEED

        relating
to

        ENCUENTRO
LIMITED

         

        
          
             

            
              

              

            

          

          
 

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      

       

       

      CONTENTS

      
         

         

      

      
        
          	CLAUSE	 	 PAGE
	 	 	 
	
                   1.
      

                	
                   INTERPRETATION
      

                	
                    
       1

                
	
                   2.
      

                	
                   SUBSCRIPTION FOR
      “A” PREFERENCE SHARES  

                	   
      4
	
                   3.
      

                	
                   SALE
      

                	   
      5
	
                   4.
      

                	
                   REPRESENTATIONS,
      WARRANTIES AND UNDERTAKINGS  

                	 
      	   
      7
	
                   5.
      

                	
                   INDEMNITY
      

                	 
      10
	
                   6.
      

                	
                   TERMINATION
      

                	 
      10
	
                   7.
      

                	
                   FURTHER ASSURANCE
      

                	 
      11
	
                   8.
      

                	
                   ASSIGNMENT AND
      NOVATION 

                	 
      11
	
                   9.
      

                	
                   VARIATION
      

                	 
      12
	
                   10.
      

                	
                   WAIVER

                	 
      12
	
                   11.
      

                	
                   NO PARTNERSHIP OR
      AGENCY

                	 
      12
	
                   12.
      

                	
                   INVALIDITY
      

                	 
      12
	
                   13.
      

                	
                   CONTINUANCE AFTER
      ADMISSION

                	 
      13
	
                   14.
      

                	
                   TIME OF THE
      ESSENCE

                	 
      13
	
                   15.
      

                	
                   COSTS
      

                	 
      13
	
                   16.
      

                	
                   DOUBLE
      RECOVERY

                	 
      13
	
                   17.
      

                	
                   ENTIRE
      AGREEMENT

                	 
      13
	
                   18.
      

                	
                   CONTRACTS (RIGHTS
      OF THIRD PARTIES) ACT 1999 

                	 
      14
	
                   19.
      

                	
                   NOTICES

                	 
      14
	
                   20.
      

                	
                   COUNTERPARTS
      

                	 
      15
	
                   21.
      

                	
                   SERVICE OF
      PROCESS 

                	 
      16
	
                   22.
      

                	
                   CONFIDENTIALITY

                	 
      16
	
                   23.
      

                	
                   GOVERNING
      LAW

                	 
      16
	
                   24.
      

                	
                   JURISDICTION
      

                	 
      16
	 SCHEDULE
      1 WARRANTIES 	 
      17
	 SCHEDULE 2
      DEED OF NOVATION	 
      20

        

      

      
 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

         

      

    

    THIS DEED is made
on           November
2008

     

    Between:

     

    
      	
              (1)  

            	
              UBS LIMITED, a company
      incorporated under the laws of England and Wales with registered number
      2035362, whose registered office is at 1 Finsbury Avenue, London EC2M 2PP
      (UBS);

            

    

     

    
      	
              (2)  

            	
              MERRILL LYNCH
      INTERNATIONAL, a company incorporated under the laws of England and
      Wales with registered number 02312079, whose registered office is at
      Merrill Lynch Financial Centre, 2 King Edward Street, London EC1A 1HQ
      (Merrill
      Lynch and, together with UBS, the Joint
      Sponsors);

            

    

     

    
      	
              (3)  

            	
              ENCUENTRO LIMITED, a
      company incorporated in Jersey with registered number 99953, whose
      registered office is at Whiteley Chambers, Don Street, St Helier, Jersey
      JE4 9WG (the Company);
      and

            

    

     

    
      	
              (4)  

            	
              THE ROYAL BANK OF SCOTLAND
      GROUP PLC, a company incorporated under the laws of Scotland with
      registered number 45551, whose registered office is at 36 St Andrew
      Square, Edinburgh EH2 2YB (RBSG).

            

    

     

    Whereas:

     

    (A) As at the
date of this Deed the Company has an authorised share
capital of 200 Ordinary Shares, 500,000,000 “A” Preference Shares and
500,000,000 “B” Preference Shares, of which 100 Ordinary Shares will, at the
time of Admission, be issued and held as to 89 per cent. by RBSG and as to 11 per cent. by the
Subscriber.

     

    (B) The
Commissioners of Her Majesty’s Treasury (HM
Treasury) and RBSG, among others, have entered into a placing and open
offer agreement effective as of 13 October 2008 (the Placing
Agreement), pursuant to which, subject to the conditions stated therein,
RBSG Ordinary
Shares are to be placed at 65.5 pence per share with placees procured by the
Joint Sponsors, subject to clawback by ordinary shareholders of RBSG pursuant to
an open offer, and, to the extent not placed with such placees or acquired by
such ordinary shareholders, are to be taken up by HM
Treasury.

     

    1. Interpretation

     

    1.1 In this
Deed, the following expressions shall have the following meanings:

     

    “A” Preference
Shares means redeemable “A” preference shares of £0.01 each in the
capital of the Company having the rights set out in the Articles of
Association;

     

    Articles of
Association means the articles of association of the
Company;

     

    “B” Preference
Shares means redeemable “B” preference shares of £0.01 each in the
capital of the Company having the rights set out in the Articles of
Association;

     

    Business
Day means a day (other than a Saturday or Sunday) on which banks are open
for ordinary banking business in London and Edinburgh;

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Dealing
Day means a day on which London Stock Exchange plc’s main market for
listed securities is open for business;

     

    Encumbrance
means any mortgage, charge (whether legal or equitable and whether fixed or
floating), security, lien, pledge, option, right to acquire, right of
pre-emption, equity, assignment, hypothecation, title retention, claim,
restriction or power of sale;

     

    Further Ordinary
Shares has the meaning given to it in the Second Subscription and
Transfer Agreement;

     

    HM Treasury’s
Placing Costs means:

     

    
      	
              (i)

            	
              the
      commissions payable by RBSG to HM Treasury under clause 8.1 of the Placing
      Agreement; and

            

    

     

    
      	
              (ii)

            	
              those
      other costs, expenses, Taxes or amounts payable or reimbursable by RBSG to
      HM Treasury under the Placing Agreement which are notified by HM Treasury
      to RBSG and the Joint Sponsors prior to
  Admission,

            

    

     

    to the
extent HM Treasury does not, pursuant to clause 8.4 of the Placing Agreement,
deduct such commissions, costs, expenses, Taxes or amounts from any payment to
be made by it under clause 6.3 of the Placing Agreement;

     

    Joint Sponsors’
Placing Costs means:

     

    
      	
              (i)

            	
              the
      fees payable by RBSG to each of the Joint Sponsors as agreed pursuant to
      clause 8.3 of the Placing Agreement;
and

            

    

     

    
      	
              (ii)

            	
              those
      other costs, expenses, Taxes or amounts payable or reimbursable by RBSG to
      each of the Joint Sponsors under the Placing Agreement, the Option
      Agreement or this Deed,

            

    

     

    and the case
of (ii) which are notified by either of the Joint Sponsors to RBSG prior to
Admission and in all cases excluding any amounts which are payable at the
discretion of RBSG;

     

    Ogier
means Ogier, solicitors and advocates of Whiteley Chambers, Don Street, St
Helier, Jersey JE4 9WG;

     

    Option Agreement
means the letter agreement entered into as a deed between the Joint
Sponsors, the Company and RBSG on the date of this Deed regarding, among other
things, the subscription by the Subscriber for Ordinary Shares;

     

    Ordinary
Shares means ordinary shares of £1.00 each in the capital of the
Company;

     

    RBSG Ordinary
Shares means ordinary shares of 25 pence each in the capital of
RBSG;

     

    Receiving Agent
Agreement means the deed of appointment and instruction appointing
Computershare Investor Services plc as receiving agents and registrars to the
Placing and Open Offer to be entered into on or about the date of this Deed,

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    setting out,
among other things, the arrangements governing the ownership and application of
the funds standing to the credit of the Transaction Bank Account;

     

    Second
Subscription and Transfer Deed means the deed entitled “Second
Subscription and Transfer Deed” to be entered into on the date of this Deed
between the Joint Sponsors, the Company and RBSG;

     

    Sponsor
Indemnified Person means any UBS Indemnified Person and any Merrill
Lynch Indemnified
Person;

     

    Subscriber
means UBS or, if RBSG elects by written notice to the other parties to this
Deed, such notice to be received at least 3 Business Days prior to Admission,
and otherwise subject to clause 8.4 below, Merrill
Lynch;

     

    Subscriber
Ordinary Shares means the 11 Ordinary Shares to be subscribed for by the
Subscriber pursuant to the Option Agreement;

     

    Subscription
Amount means the amount standing to the credit of the Transaction Bank
Account in cleared funds immediately prior to Admission less:

     

    (a)           the
Joint Sponsors’ Placing Costs;

     

    (b)           HM
Treasury’s Placing Costs, if applicable;

     

    
      	
              (c)

            	
              the
      Scale-Back Amounts (as defined in the Receiving Agent Agreement) as
      notified to the Joint Sponsors; and

            

    

     

    
      	
              (d)

            	
              the
      fixed elements of the fees of Computershare Investor Services PLC in
      connection with the Placing and Open Offer as agreed with the Company and
      as notified to the Joint Sponsors which Computershare Investor Services
      PLC is entitled to deduct from the sums standing to the credit of the
      Transaction Bank Account in accordance with the terms of the Receiving
      Agent Agreement;

            

    

     

    Tax or Taxation
means all forms of taxation and statutory, governmental, state,
provincial, local, governmental or municipal impositions, duties, contributions
and levies in each case whether of the United Kingdom or elsewhere in the world
whenever imposed and whether chargeable directly or primarily against or
attributable directly or primarily to a person or otherwise and all penalties,
charges, costs and interest relating thereto;

     

    Transaction
means the transactions and arrangements contemplated by the Transaction
Documents;

     

    Transaction Bank
Account means the bank account referred to in clause 2.4 of the Placing
Agreement, being the “Acceptance Account” as defined in the Receiving Agent
Agreement;

     

    Transaction
Documents means this Deed, the Second Subscription and Transfer Deed, the
Placing Agreement, the Receiving Agent Agreement, the Option Agreement

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    and all
documents entered into pursuant to or in connection with such deeds and
agreements; and

     

    Warranties
means the representations and warranties given by the Company and RBSG set out
in Schedule 1.

     

    Capitalised
terms used in this Deed, unless otherwise defined herein, shall have the meaning
given to them in the Placing Agreement.

     

    1.2 In this
Deed, unless the context otherwise requires:

     

    
      	
              (a)  

            	
              references
      to “persons” shall
      include individuals, bodies corporate (wherever incorporated),
      unincorporated associations and
partnerships;

            

    

     

    
      	
              (b)  

            	
              the
      headings are inserted for convenience only and shall not affect the
      construction of this Deed;

            

    

     

    
      	
              (c)  

            	
              any
      reference to an enactment or statutory provision is a reference to it as
      it may have been, or may from time to time be, amended, modified,
      consolidated or re-enacted except to the extent that any such amendment,
      consolidation or re-enactment after the date of this Deed would increase
      or extend the liability of any person
hereunder;

            

    

     

    
      	
              (d)  

            	
              references
      to “pounds”,
      “£” and “pence” are references to
      the currency of the United Kingdom;

            

    

     

    
      	
              (e)  

            	
              any
      schedule to this Deed shall take effect as if set out in this Deed and
      references to this Deed shall be deemed to include its
      schedules;

            

    

     

    
      	
              (f)  

            	
              when
      construing any provision relating to VAT, any reference in this Deed to
      any person shall (where appropriate) be deemed, at
      any time when such person is a member of a group of companies for VAT
      purposes, to include a reference to the representative member of such
      group at such time; and

            

    

     

    
      	
              (g)  

            	
              references
      to a Joint Sponsor in clauses 4.5 and
      4.6 and
      clauses 4.8 to
      4.13 of
      this Deed shall be deemed to include any other Sponsor Indemnified Person
      of the relevant Joint
Sponsor.

            

    

     

    2. Subscription
for “A” Preference Shares

     

    2.1 Upon and
subject to the terms and conditions of this Deed and in reliance on the
Warranties contained herein, the Subscriber agrees to subscribe for, and the
Company agrees to allot and issue to the Subscriber, 150,000,000 “A” Preference
Shares (the Subscriber “A”
Preference Shares), free from all Encumbrances and together with all
rights attaching thereto and on the condition that immediately following such
allotment and following payment of the Subscription Amount to the Company (or as
the Company directs) the Subscriber “A” Preference Shares are transferred by the
Subscriber to RBSG as provided in clause 3.1.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.2 In
consideration of the agreement to allot, and following the allotment of, the
Subscriber “A” Preference Shares, and subject to clause 2.3 below, the Subscriber hereby undertakes to procure
the payment of the Subscription Amount from the Transaction Bank Account to the
Company (or as the Company directs) immediately before the transfer of the
Subscriber “A” Preference Shares to RBSG pursuant to this Deed, and in any event
by no later than 5.00 p.m. (or as otherwise agreed between the parties) on the
date of Admission (the Payment
Undertaking).  Each Subscriber “A” Preference Share so allotted
shall be credited as fully paid against the Payment
Undertaking.

     

    2.3 The
obligations of the Subscriber and the Company pursuant to clauses 2.1
and 2.2 of
this Deed are conditional upon the Placing Agreement becoming unconditional in
all respects and not having been terminated in accordance with its terms, at
which time allotment of the Subscriber “A” Preference Shares to the Subscriber
shall occur and the Payment Undertaking shall become
effective.

     

    2.4 For the
avoidance of doubt, the Subscriber shall be under no obligation:

     

    
      	
              (a)  

            	
              to
      procure the payment of the Subscription Amount from the Transaction Bank
      Account to the Company (or as the Company directs) until Admission has
      taken place; or

            

    

     

    
      	
              (b)  

            	
              to
      subscribe for “A” Preference Shares in an amount in excess of the
      Subscription Amount (without prejudice to the Payment
      Undertaking).

            

    

     

    2.5 Following
allotment as aforesaid, the Company shall procure that, within the jurisdiction
of Jersey, the name of the Subscriber shall be entered in the register of
members of the Company (itself held in Jersey) in respect of the “A” Preference
Shares allotted to it and prepare and deliver to the Subscriber (or as the
Subscriber directs):

     

    
      	
              (a)  

            	
              a
      share certificate evidencing the number of “A” Preference Shares allotted
      and issued to it; and

            

    

     

    
      	
              (b)  

            	
              a copy
      of the minutes of the board meeting approving the allotment and the
      updated register of members (the name of the Subscriber having been
      entered into the register), certified as a true copy by the secretary or a
      director of the Company.

            

    

     

    2.6 For the
avoidance of doubt, nothing in this Deed shall confer or impose on any Placee
(including HM Treasury) or any Qualifying Shareholder any right or obligation
(conditional or otherwise) to subscribe for or acquire any Ordinary Shares,
Subscriber “A” Preference Shares or Subscriber “B” Preference
Shares.

     

    3. Sale

     

    3.1 Subject to
(i) the Placing Agreement becoming unconditional in all respects and not
having been terminated in accordance with its terms and (ii) the Subscriber
“A” Preference Shares having been allotted to the Subscriber in accordance with
clause 2, the Subscriber shall, immediately
following such allotment and following 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    payment of
the Subscription Amount to the Company (or as the Company directs), transfer to
RBSG:

     

    
      	
              (a)  

            	
              the
      Subscriber Ordinary Shares allotted and issued to it pursuant to the
      Option Agreement; and

            

    

     

    
      	
              (b)  

            	
              the
      Subscriber “A” Preference Shares allotted and issued to it pursuant to
      clause 2,

            

    

     

    in each case
fully paid up.

     

    3.2 The transfer
of the Subscriber Ordinary Shares and the Subscriber “A” Preference Shares
pursuant to clause 3.1, together with the transfer of the Further Ordinary
Shares and the Subscriber “B” Preference Shares pursuant to the Second
Subscription and Transfer Deed, shall be the consideration for the allotment and
issue by RBSG of the RBSG Ordinary Shares as set out in the Placing Agreement,
provided that the value of the consideration allocated to the Subscriber
Ordinary Shares and the Further Ordinary Shares shall respectively be £11.00 and
£12.00, and the remainder of the consideration shall be allocated to the
Subscriber “A” Preference Shares and the Subscriber “B” Preference
Shares.

     

    3.3 The
obligation of the Subscriber to transfer Subscriber “A” Preference Shares and
Subscriber Ordinary Shares pursuant to clause 3.1
shall be satisfied by the execution of and the delivery to RBSG, or as it may
direct, of duly executed stock transfer forms in favour of RBSG (the
originals being kept in Jersey insofar as reasonably practicable) together with
the share certificates in respect of the Subscriber “A” Preference Shares and
Subscriber Ordinary Shares transferred pursuant to clause 3.1.

     

    3.4 The Company
shall hold a board meeting in the United Kingdom at which it shall be resolved
that the transfers relating to the Subscriber “A” Preference Shares and
Subscriber Ordinary Shares shall be approved for registration, subject to
performance by the Subscriber of its obligations under clause 3.1
, 3.2 and
3.3, and
that RBSG be registered as the holder of the Subscriber “A” Preference Shares
and Subscriber Ordinary Shares in the Company’s register of members (itself held
in Jersey).

     

    3.5 The
Subscriber, as security for its obligations hereunder, hereby
appoints:

     

    
      	
              (a)  

            	
              Ogier
      (and all partners and other authorised signatories of Ogier (in each case
      acting singly)); and

            

    

     

    
      	
              (b)  

            	
              RBSG
      (and each of its directors, officers and authorised signatories (in each
      case acting singly))

            

    

     

    as its
attorney, in its name and on its behalf or otherwise, at such time and in such
manner as the attorney thinks fit, to do and perform all such acts or things,
and to execute, complete and deliver all such documents (including any stock
transfer forms), as the attorney may, in its absolute discretion, consider
necessary or desirable in connection with the transfer of all or any of the
Subscriber Ordinary Shares and all 

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    or any of
the Subscriber “A” Preference Shares to RBSG in accordance with this Deed,
provided always that such power of attorney shall not be exercisable until the
Payment Undertaking has become effective in accordance with the terms of clause
2.3 hereof.  Such
appointment shall be irrevocable unless the rights and obligations of the
Subscriber for the time being under this Deed are novated to a third party in
accordance with the provisions of clause 8.2 or
Merrill Lynch replaces UBS as the Subscriber pursuant to clause 8.4, in which
case such appointment shall lapse and have no further effect.  For the
avoidance of doubt, the New Subscriber appointed pursuant to clause 8.2 or
Merrill Lynch, if it replaces UBS as Subscriber pursuant to clause 8.4, shall be
deemed to have appointed Ogier (and all partners and other authorised
signatories of Ogier (in each case acting singly) and RBSG (and each of its
directors, officers and authorised signatories (in each case acting singly) as
its attorney in accordance with this clause. This power of attorney shall remain
in full force and effect until the date occurring one year from the date
hereof.

     

    4. Representations,
warranties and undertakings

     

    4.1 The Company
and RBSG jointly and severally represent and warrant on the date hereof to each
of the Joint Sponsors in the terms of the Warranties set out in paragraphs 1, 3,
and 4 of Schedule 1 (the
Joint
Warranties) and RBSG represents
and warrants on the date hereof to each of the Joint Sponsors in the terms of
the Warranties set out in paragraph 2 of Schedule 1 (the
Issuer
Warranties).  The Company and RBSG further jointly and
severally represent and warrant to each of the Joint Sponsors that
the Joint Warranties, and RBSG further represents and warrants to each of the
Joint Sponsors that
the Issuer Warranties, shall be true and accurate in all respects and not
misleading on the date of Admission in any respect as if they had been made or
given on the date of Admission (on the basis that references in the Warranties
to any fact, matter or thing existing, occurring or having (or not having)
occurred at or before the date of this Deed shall be construed as references to
it having (or not having) so done at or before the date of
Admission).

     

    4.2 Until the
date upon which the Subscriber has transferred the Subscriber “A” Preference
Shares and Subscriber Ordinary Shares to RBSG pursuant to clause 3,
the parties undertake to each other to procure (in so far as they are able) that
no amendments will be made to the Articles of Association.

     

    4.3 Until the
date upon which the Subscriber no longer holds any interest in the Company’s
share capital, the Company undertakes to each of the Joint Sponsors that it will
not, and RBSG undertakes to each of the Joint Sponsors that it will procure
(insofar as it is able) that the Company will not, undertake any activities
other than those contemplated under this Deed, the Second Subscription and
Transfer Deed or the Option Agreement.

     

    4.4 If at any
time up to Admission any event occurs or circumstances exist as a result of
which RBSG or the Company becomes aware that any of the Warranties would be
untrue or incorrect if such Warranty had been given or made at such time by
reference to the facts and circumstances then existing, RBSG and/or the Company
(as the case may be) shall immediately notify the Joint Sponsors, and RBSG
and/or the Company will take such steps as the Subscriber reasonably requests to
remedy the 

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    matter and,
if so requested by the Subscriber (acting reasonably and in good faith), RBSG
will make a public announcement in respect of such matter.  For the
avoidance of doubt, a request by the Subscriber to remedy a matter will only be
“reasonably” requested under this clause 4.4
where that matter is capable of being remedied.

     

    4.5 RBSG
undertakes to account to the relevant Tax Authority within the applicable time
limits for any stamp duty, stamp duty reserve tax or any similar issuance or
transfer tax (and any interest, fines or penalties in relation thereto) which is
payable by either of the Joint Sponsors in connection with any issue or transfer
of the Subscriber Ordinary Shares and/or the Subscriber “A” Preference Shares,
or any right to or interest in the Subscriber Ordinary Shares and/or the
Subscriber “A” Preference Shares pursuant to or in connection with this Deed,
save that if and to the extent such amount comprises UK stamp duty (including
any interest, fines or penalties) this clause 4.5 shall
apply only if and to the extent such Joint Sponsor is required to account for
such amount for the purposes of enforcing any right in connection with the
Subscriber Ordinary Shares or the Subscriber “A” Preference Shares or this
Deed.

     

    4.6 If any of
the Joint Sponsors accounts to the relevant Tax Authority for any such stamp
duty, stamp duty reserve tax or other issuance or transfer tax referred to in
clause 4.5
(and any interest, fines or penalties in relation thereto), RBSG shall
reimburse, and indemnify, such Joint Sponsor on demand for the amount so
accounted for by such Joint Sponsor (together with an amount equal to any
reasonable costs incurred by such Joint Sponsor in connection therewith), save
that if and to the extent such amount comprises UK stamp duty (including any
interest, fines or penalties) this clause 4.6 shall
apply only if and to the extent such Joint Sponsor is required to account for
such amount for the purposes of enforcing any right in connection with the
Subscriber Ordinary Shares or the Subscriber “A” Preference Shares or this
Deed.

     

    4.7 RBSG
undertakes to pay, or procure that another person pays, to the relevant Tax
Authority on behalf of or by the Company within the applicable time limits, any
Taxation for which the Company becomes liable.

     

    4.8 RBSG
undertakes to indemnify each Joint Sponsor for any Taxation for which such Joint
Sponsor becomes (or would but for the availability to such Joint Sponsor of a
relief become) liable in connection with or as a result of any subscription,
transfer, redemption or other disposal of any shares of the Company, or any
other matter contemplated by this Deed, or the Placing Agreement (including,
without limitation, the receipt of any payment referred to in the Placing
Agreement or any discharge of the undertaking to procure the payment of the
Subscription Amount except any Taxation on the overall actual net income of such
Joint Sponsor in respect of any fee or commission payable to it).

     

    4.9 All payments
by RBSG or the Company under this Deed shall be paid without set-off or
counterclaim, and free and clear of and without deduction or withholding for or
on account of Tax, unless required by law.  If any Tax is required by
law to be deducted or withheld from or in connection with any such payment, RBSG
or the Company (as relevant) will:

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              promptly
      upon becoming aware thereof, notify the relevant Joint Sponsor or the
      Company (as relevant) thereof;

            

    

     

    
      	
              (b)  

            	
              make
      that deduction or withholding and any payment of Tax required in
      connection with that deduction or withholding within the time allowed and
      in the minimum amount required by
law;

            

    

     

    
      	
              (c)  

            	
              deliver
      to the payee such receipts, statements or other documents as the payee may
      reasonably request by way of evidence that the deduction or withholding
      has been made and any appropriate payment of Tax made to the relevant Tax
      Authority; and

            

    

     

    
      	
              (d)  

            	
              increase
      the amount payable so that the amount received by the payee (after such
      deduction or withholding, including for the avoidance of doubt any
      additional deduction or withholding required as a result of such increase)
      is equal to the amount which the payee would have received if no such
      deduction or withholding had been
made.

            

    

     

    4.10 If any Joint
Sponsor or the Company (as relevant) is subject to Tax in respect of any sum
payable under this Deed, or if any such sum is taken into account in computing
the taxable profits or income of such Joint Sponsor or the Company (as
relevant), the sum payable shall be increased to such amount as will ensure that
after payment of such Tax, (including, for the avoidance of doubt, any
additional Tax payable as a result of such increase), such Joint Sponsor or the
Company (as the case may be) retains a sum equal to the sum that it would have
received and retained in the absence of such Tax.

     

    4.11 If RBSG or
the Company makes an increased payment in accordance with clause 4.9 or 4.10 and
the recipient of such payment (the Recipient)
determines in good faith that it has obtained, utilised and retained a relief
from Tax or a refund of Tax which is attributable to such increased payment made
by RBSG or the Company, then the Recipient shall reimburse to RBSG or the
Company (as the case may be) as soon as reasonably practicable an amount equal
to such proportion of the Tax so saved or refunded as will leave the Recipient,
after such reimbursement, in the same after-Tax position (having regard to the
time value of money) that it would have been in if the circumstances giving rise
to such additional payment had not arisen.  For the avoidance of
doubt, nothing in this Deed shall require any Joint Sponsor or the Company to
disclose any information in relation to its Tax affairs to RBSG or any person
acting for or on behalf of RBSG or the Company (as the case may
be).

     

    4.12 All sums
payable by RBSG or the Company (the Payer) to
any Joint Sponsor or (where relevant) the Company (the Payee)
pursuant to this Deed are expressed exclusive of any amount in respect of VAT
which is chargeable on the supply or supplies for which such sums (or any part
thereof) is or are the whole or part of the consideration for VAT
purposes.  If any Payee makes (or is deemed for VAT purposes to make)
any supply to the Payer pursuant to this Deed and VAT is or becomes chargeable
in respect of such supply, the Payer shall pay to the Payee (within 14 days of
the receipt of a valid VAT invoice) an additional sum equal to the amount of
such VAT.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    4.13 In any case
where RBSG or the Company is obliged to pay a sum to any Joint Sponsor or the
Company (as relevant) under this Deed by way of indemnity, reimbursement,
damages or compensation for or in respect of any fee, liability, cost, charge or
expense (the Relevant
Cost), RBSG or the Company shall pay to such Joint Sponsor or the Company
(as relevant) at the same time an additional amount determined as
follows:

     

    
      	
              (a)  

            	
              if the
      Relevant Cost is for VAT purposes the consideration for a supply of goods
      or services made to such Joint Sponsor or the Company (including, for the
      avoidance of doubt, where such supply is made to such Joint Sponsor or the
      Company (as relevant) acting as agent for RBSG or the Company (as
      relevant) within the terms of section 47 Value Added Tax Act 1994), such
      additional amount shall be equal to any input VAT which was incurred by
      such Joint Sponsor or the Company (as relevant) in respect of that supply
      and which it is not able to recover from the relevant Tax Authority;
      and

            

    

     

    
      	
              (b)  

            	
              if the
      Relevant Cost is for VAT purposes a disbursement incurred by such Joint
      Sponsor or the Company as agent on behalf of RBSG or the Company and the
      relevant supply is made to RBSG or the Company for VAT purposes, such
      additional amount shall be equal to any amount in respect of VAT which was
      paid in respect of the Relevant Cost by such Joint Sponsor or the Company
      (as relevant), and such Joint Sponsor or the Company (as relevant) shall
      use reasonable endeavours to procure that the relevant third party issues
      a valid VAT invoice in respect of the Relevant Cost to RBSG or the
      Company.

            

    

     

    5. Indemnity

     

    RBSG agrees
to fully and effectively indemnify and hold harmless each Sponsor Indemnified
Person from and against any and all Losses or Claims, whatsoever, as incurred
(and whether or not the relevant Loss or Claim is suffered or incurred or arises
in respect of circumstances or events existing or occurring before, on or after
the date of this Deed and regardless of the jurisdiction in which such Loss or
Claim is suffered or incurred) if such Losses or Claims arise, directly or
indirectly, out of, or are attributable to, or connected with, anything done or
omitted to be done by any person (including the relevant Sponsor Indemnified
Person) in connection with this Deed, such indemnity being given by RBSG on the
same terms as set out in clauses 11 and 12 of the Placing Agreement, mutatis mutandis, and as if
references to “the Company” were to “RBSG”, references to “Indemnified Person”
were to “Sponsor Indemnified Person” and references to “JerseyCo” were to “the
Company”.

     

    6. Termination

     

    6.1 In the event
(i) of termination of the Placing Agreement in accordance with its terms, or
(ii) that both UBS and Merrill Lynch have
ceased to be sponsors to RBSG in connection with the Transaction otherwise than
in connection with clause 8.2
below, this Deed shall, unless, upon the occurrence of (ii) above, RBSG elects
to exercise its novation rights pursuant to clause 8.2
below, terminate and have no further force or effect and no party shall have any
claim against any other under this Deed except that:

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              such
      termination shall be without prejudice to any accrued rights or
      obligations under this Deed; and

            

    

     

    
      	
              (b)  

            	
              the
      provisions of this clause 6
      and clauses 1,
      4,
      5,
      8,
      9,
      10,
      11,
      15,
      16,
      17,
      18,
      19,
      20,
      21,
      22,
      23 and
      24
      shall remain in full force and
effect.

            

    

     

    6.2 For the
avoidance of doubt, clause 6.1
above contains the only provisions pursuant to which this Deed may be
terminated.

     

    7. Further
assurance

     

    At any time
after the date hereof each party agrees that it shall, promptly upon being
required to do so by any other party hereto and so far as within its power, do
or procure that there shall be done all such acts and things and execute or
procure the execution of all such documents and instruments as such other party
may from time to time reasonably require (before or after the date of Admission)
in order to give full effect to this Deed (including, without limitation,
procuring that the Subscriber “A” Preference Shares are allotted and issued as
freely transferable shares), subject to the provisions of this
Deed.

     

    8. Assignment
and novation

     

    8.1 Subject to
clauses 8.2 and
8.4, no
party may assign or purport to assign:

     

    
      	
              (a)  

            	
              this
      Deed;

            

    

     

    
      	
              (b)  

            	
              all or
      any of its rights or obligations arising under or out of this Deed;
      or

            

    

     

    
      	
              (c)  

            	
              the
      benefit of all or any of any other party’s obligations under this
      Deed.

            

    

     

    8.2 Notwithstanding
clause 8.1, the parties agree that
they shall execute a deed of novation substantially in the terms of Schedule 2
to this Deed (the Deed of
Novation) which shall operate so as to novate the rights and obligations
of the Subscriber under this Deed to any third party nominated by RBSG (the
New
Subscriber), provided that the parties receive written notice
from RBSG at least
3 Business Days prior to Admission requesting that the parties enter into such
Deed of Novation and that a corresponding deed of novation is also to be entered
into in connection with the Second Subscription and Transfer Deed and the Option
Agreement.

     

    8.3 For the
avoidance of doubt, if the rights and obligations of the Subscriber are novated
to a third party in accordance with clause 8.2:

     

    
      	
              (a)  

            	
              the
      Subscriber shall have no
      rights or obligations under the terms of this Deed after the execution of
      the Deed of Novation except in respect of rights and obligations accrued
      prior to such execution and not novated to the New Subscriber;
      and

            

    

     

    
      	
              (b)  

            	
              the
      right of RBSG to elect that Merrill Lynch shall replace UBS as the
      Subscriber in accordance with the terms of this Deed shall
      terminate.

            

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    8.4 RBSG may
only elect that Merrill Lynch shall replace UBS as the Subscriber if
RBSG elects that Merrill Lynch shall also replace UBS as the Subscriber for the
purposes of the Second Subscription and Transfer Deed and the Option
Agreement.  If RBSG elects that Merrill Lynch shall replace UBS as the Subscriber in
accordance with the terms of this Deed, such election shall take effect on
receipt, or deemed receipt, of the notice of election by the last of the parties
to receive, or be deemed to receive, such notice (the Effective
Time).  With immediate effect from the Effective Time, Merrill
Lynch shall assume the rights and obligations of the Subscriber under this Deed
and UBS shall have none of the rights or obligations expressed to be rights or
obligations of the Subscriber
pursuant to this Deed except in respect of rights and obligations accrued prior
to the Effective Time and not assumed by Merrill Lynch. For the avoidance of
doubt, the provisions of the immediately preceding sentence shall be without
prejudice to any of UBS’s rights or obligations (including such as may have
accrued at the Effective Time) pursuant to this Deed in its capacity as Joint
Sponsor.

     

    9. Variation

     

    No variation
of this Deed shall be effective unless made in writing and signed by or on
behalf of each of the parties to this Deed.

     

    10. Waiver

     

    10.1 No failure
or delay by the parties hereto to exercise any right, power or remedy provided
by law or hereunder shall operate as a waiver of the same or of some other
right, power or remedy, nor shall any partial exercise thereof preclude any
further exercise of the same or of some other right, power or remedy. The rights
and remedies provided under this Deed are cumulative and are not exclusive of
any rights and remedies provided by law or otherwise.

     

    10.2 Any waiver
of any right, power or remedy under this Deed must be in writing and may be
given subject to such conditions as the grantor may in its absolute discretion
decide. Any such waiver (unless otherwise specified) shall only be a waiver in
the particular instance and for the particular purpose for which it was
given.

     

    11. No
partnership or agency

     

    11.1 Nothing in
this Deed shall constitute a partnership between the parties or constitute any
as agent of the others for any purpose whatever and none shall have authority or
power to bind the others or to contract in the name of or create liability
against the others in any way or for any purpose save as expressly authorised in
writing by the others from time to time.

     

    11.2 Each party
is entering into this Deed for its respective benefit and not for the benefit of
any other person.

     

    12. Invalidity

     

    Each of the
provisions of this Deed is severable. If any such provision or part thereof is
or becomes illegal, invalid or unenforceable in any respect, such provision or
part 

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    shall to
that extent be deemed not to form part of this Deed but the legality, validity
and enforceability of the remaining provisions hereunder shall not in any way be
affected or impaired thereby.

     

    13. Continuance
after Admission

     

    The
provisions of this Deed, and of all other documents referred to herein, shall
not (save where the context otherwise requires) be extinguished or affected by
the performance of the obligations contained herein.

     

    14. Time
of the essence

     

    14.1 Any time,
date or period mentioned in this Deed may be extended by agreement in writing
between the parties hereto or otherwise as provided herein.

     

    14.2 Any time,
date or period mentioned in this Deed shall be of the essence and, if such time,
date or period is extended as aforesaid, then such extended time, date or period
shall also be of the essence.

     

    15. Costs

     

    15.1 Whether or
not Subscriber “A” Preference Shares are allotted and issued to the Subscriber,
the properly incurred costs and expenses of each party in relation to the
negotiation, preparation, execution and implementation of, and the enforcement
of, or preservation of any rights under, this Deed including all costs and
expenses (including all legal fees and out-of-pocket expenses) properly incurred
by the Joint Sponsors and, where applicable, VAT, shall be paid by
RBSG.  RBSG shall forthwith upon demand by either Joint Sponsor
(accompanied by the relevant receipt therefor) reimburse such Joint Sponsor the
amount of any such costs and expenses paid by such Joint Sponsor on behalf of
RBSG.

     

    15.2 For the
avoidance of doubt, any costs or expenses arising in relation to stamp duty,
stamp duty reserve tax and similar issuance or transfer taxes will be governed
by the provisions of clauses 4.5
to 4.8.

     

    16. double
recovery

     

    No party to
this Deed shall be entitled to recover damages or obtain recovery, payment,
reimbursement or indemnity to the extent that such party has already obtained
recovery, payment, reimbursement or indemnity in respect of the same matter
under any other Transaction Document.

     

    17. Entire
agreement

     

    17.1 This Deed
(together with the other Transaction Documents) contains the entire agreement
and understanding between the parties with respect to the
Transaction.

     

    17.2 Except in
the case of fraud, each of the parties to this Deed acknowledges and agrees that
it does not enter into this Deed on the basis of and does not rely, and has not
relied, upon any statement or representation (whether negligent or innocent) or

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    warranty or
other provision (in any case whether oral, written, express or implied) made,
given or agreed to by any person (whether a party to this Deed or not) except
those expressly repeated or referred to in this Deed and the other Transaction
Documents.

     

    17.3 Nothing in
this Deed shall be read or construed as excluding any liability or remedy in
respect of fraud.

     

    18. Contracts
(Rights of Third Parties) Act 1999

     

    18.1 A person who
is not a party to this Deed shall have no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any of its terms (other than as provided in
clause 18.2
below).

     

    18.2 Each of the
Sponsor Indemnified Persons who is not a party to this Deed shall have the right
under the Contracts (Rights of Third Parties) Act 1999 to enforce their
respective rights under clauses 4.5, 4.6, 4.8 to
4.13 and
5 as
amended from time to time, provided that the Joint Sponsor of which such Sponsor
Indemnified Person is an affiliate shall have sole conduct of any action on
behalf of any such Sponsor Indemnified Person and no enforcement shall be
permitted by any such Sponsor Indemnified Person without the consent of the
relevant Joint Sponsor.

     

    18.3 Notwithstanding
the provisions of clause 18.2, any
rights arising by virtue of the Contracts (Rights of Third Parties) Act 1999 may
be rescinded or varied in any way and at any time by the parties to this Deed
without the consent of any of the Sponsor Indemnified Persons who is not a party
to this Deed.  The Joint Sponsors shall not have any responsibility to
any third party as a result of this Deed.

     

    19. Notices

     

    19.1 Any notice
or other document to be served under this Deed shall be in writing and may be
delivered by hand or sent by facsimile to the party to be served at its address
or facsimile number shown below and marked for the attention of the person
indicated. Either party may change any such details by giving no fewer than five
days’ notice in accordance with this clause 19 to
the other parties to this Deed.

     

    19.2 Any notice
or document delivered or sent in accordance with clause 19.1 shall
be deemed to have been served:

     

    
      	
              (a)  

            	
              if
      delivered by hand, at the time of delivery;
or

            

    

     

    
      	
              (b)  

            	
              if
      sent by facsimile, at the time of
transmission,

            

    

     

    provided
that if delivery by hand or facsimile occurs on a day which is not a Dealing Day
or after 6.00 p.m. on a Dealing Day, service shall be deemed to occur at 9.00
a.m. on the following Dealing Day.

     

    19.3 The person
to whom notices or documents should be addressed for the purposes of this
clause 19 are:

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              if to
      be served on the Company:

            

    

     

    For the
attention of the Company Secretary

     

    Ogier SPV
Services Limited (FAO Peter Gatehouse)

    Whiteley
Chambers

    Don
Street

    St
Helier

    Jersey JE4
9WG

     

    Facsimile
number: 01534 504 444

     

    
      	
              (b)  

            	
              if to
      be served on RBSG:

            

    

     

    For the
attention of Group General Counsel and Group Secretary

     

    RBS
Gogarburn

    Edinburgh

    EH12
1HQ

    

    Facsimile
number: 0131 626 2997

     

    
      	
              (c)  

            	
              if to
      be served on UBS:

            

    

     

    For the
attention of Equity Capital Markets

     

    UBS
Limited

    1 Finsbury
Avenue

    London EC2M
2PP

    

    Facsimile
number: +44 20 7567 4127

     

    
      	
              (d)  

            	
              if to
      be served on Merrill Lynch:

            

    

     

    For the
attention of ECM Syndicate Desk

     

    Merrill
Lynch International

    2 King
Edward Street

    London EC1A
1HQ

    

    Facsimile
number: +44 20 7995 2516

     

    The parties
agree that the provisions of this clause 19
shall not apply to the service of any writ, summons, order, judgement or other
document relating to or in connection with any legal proceedings.

     

    20. Counterparts

     

    This Deed
may be executed in any number of counterparts and by the parties on different
counterparts, but shall not be effective until each party has executed at least

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    one
counterpart. Each counterpart shall be deemed an original, but all the
counterparts shall together constitute one and the same agreement.

     

    21. Service
of process

     

    The Company
hereby irrevocably appoints Hackwood Secretaries Limited at the date hereof
situated at One Silk Street, London EC2Y 8HQ (for the attention of the Company
Secretary for the time being) or such other person as the Company may from time
to time approve for the purpose of accepting service of process on its behalf in
England in respect of any proceedings arising out of or in connection with this
Deed.  Such service shall be deemed completed on delivery to Hackwood Secretaries
Limited whether or not it is forwarded to or received by the
Company).

     

    22. Confidentiality

     

    The parties
agree that the identity of the Subscriber and the exercise of any discretion or
right under this Deed or under any other agreements relating to the arrangements
set out herein, including, without limitation, the transfer of rights and
obligations under this Deed to Merrill Lynch and the novation of rights and
obligations under this Deed to any New Subscriber, shall be kept confidential
and that they will not disclose such to any person other than the parties to
this Deed, Computershare Investor Services plc and any New Subscriber, save as
may be required by law or regulation (in which case the disclosing party shall,
where permissible, consult with the other parties hereto and take account of
their reasonable comments).

     

    23. Governing
law

     

    This Deed
and any non-contractual obligations arising out of or in relation to this Deed
are governed by and shall be construed in accordance with English
law.

     

    24. Jurisdiction

     

    24.1 Subject to
clause 24.2,
the parties irrevocably agree that the English courts shall have exclusive
jurisdiction to settle any dispute arising out of or in connection with this
Deed and each party irrevocably agrees to submit to the exclusive jurisdiction
of the English courts for all purposes relating to this Deed.

     

    24.2 Notwithstanding
the provisions of clause 24.1,
in the event that any Sponsor Indemnified Person becomes subject to proceedings
brought by a third party (the Foreign
Proceedings) in the courts of any country other than England (the Foreign
Jurisdiction), such Sponsor Indemnified Person shall be entitled, without
objection by RBSG or the Company, to take such steps as are available in the
Foreign Jurisdiction, in the circumstances of the Foreign Proceedings, including
(if reasonably necessary) the issuing of separate proceedings, to ensure that
any issues between any such Sponsor Indemnified Person and RBSG and/or the
Company are determined in the Foreign Jurisdiction as part of, or as closely
connected (as the procedure of the Foreign Jurisdiction will permit) with, the
Foreign Proceedings, and RBSG and the Company each hereby submit to the
jurisdiction of the Foreign Jurisdiction for this purpose.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    In
witness whereof the parties have executed this Deed on the date and year
first above written.

     

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                
                  SIGNED and DELIVERED

                  as a DEED
      by ENCUENTRO
      LIMITED

                  acting
      by two Directors or

                  a
      Director and the
      Secretary 

                

              	
                )

                )

                )

                )

              	
                /s/
      [illegible]

                /s/ [illegible]

              

      

      

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

     

     

       

      
        	
                
                  
                    SIGNED and DELIVERED

                    as a
      DEED by THE ROYAL BANK
      OF

                    SCOTLAND GROUP
      PLC

                    acting
      by two Directors or

                    a
      Director and the
      Secretary

                  

                

              	
                )

                )

                )

                
                  )
)

              	
                /s/
      [illegible]

                /s/ [illegible]

              

      

      

    

    
       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

    

     

     

       

      
        	
                
                  
                    SIGNED and DELIVERED

                    as a
      DEED by UBS LIMITED

                    acting
      by authorised signatories

                  

                

              	
                )

                )

                )

              	
                /s/
      [illegible]

                /s/ David Seal

                Associate
      Dirrector

              

      

       

      
 

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

     

      

       

      
        	
                
                  
                    
                      SIGNED and DELIVERED

                      as a
      DEED
      by         

                      MERRILL LYNCH
      INTERNATIONAL

                    

                  

                

              	
                )

                )

                )

              	/s/
      [illegible]

      

       

      Witnessed
by:  /s/ Deborah
Yates               

    

     

    Name: Deborah
Yates                                   

    

    Occupation: AVP, Origination
counsel       

    Address:
2 King Edward St, London EC1A
1HQ

     

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
 

    

    SCHEDULE 1

     

    WARRANTIES

     

    1. The
Company’s Capacity

     

    1.1 The Company
is a private limited company incorporated under Jersey law and since
incorporation:

     

    
      	
              (a)  

            	
              it has
      been in continuous existence;

            

    

     

    
      	
              (b)  

            	
              it has
      not traded or carried on any business or activity of any nature other than
      amending its memorandum and articles of association in contemplation and
      for the purposes of the steps contemplated by the Transaction Documents;
      and

            

    

     

    
      	
              (c)  

            	
              it has
      not incurred any liabilities in excess of
£100.

            

    

     

    1.2 This Deed
has been duly authorised, executed and delivered by, and constitutes a valid and
legally binding agreement of, the Company, and is enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors’ rights generally and to general principles of
equity.

     

    1.3 The
execution and delivery by the Company of, and the performance by the Company of
its obligations under, this Deed:

     

    
      	
              (a)  

            	
              have
      been duly authorised by all corporate or other action required under
      Jersey law;

            

    

     

    
      	
              (b)  

            	
              do not
      and will not require any consent, approval, authorisation or order of, or
      filing with, any governmental or other agency or body or any court;
      and

            

    

     

    
      	
              (c)  

            	
              will
      not conflict with or result in a breach or violation of any of the terms
      and provisions of, or constitute a default
  under:

            

    

     

    
      	
              (i)  

            	
              any
      statute, or any rule, regulation or order, judgement or decree of any
      government, governmental agency or body or any court applicable in respect
      of the Company or any of its
property;

            

    

     

    
      	
              (ii)  

            	
              any
      agreement or instrument or other obligation to which the Company is a
      party or by which the Company or any of its properties, undertakings,
      assets or revenues are bound; or

            

    

     

    
      	
              (iii)  

            	
              the
      constitutional documents of the
Company.

            

    

     

    2. RBSG’s Capacity

     

    2.1 RBSG is a
public limited company incorporated under the laws of Scotland and since
incorporation has been in continuous existence.

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    2.2 This Deed
has been duly authorised, executed and delivered by, and constitutes a valid and
legally binding agreement of, RBSG, and is enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and to general principles of equity.

     

    2.3 The
execution and delivery by RBSG of, and the performance by RBSG of its
obligations under, this Deed:

     

    
      	
              (a)  

            	
              have
      been duly authorised by all corporate or other action required under
      Scottish law;

            

    

     

    
      	
              (b)  

            	
              do not
      and will not require any consent, approval, authorisation or order of, or
      filing with, any governmental or other agency or body or any court;
      and

            

    

     

    
      	
              (c)  

            	
              will
      not conflict with or result in a breach or violation of any of the terms
      and provisions of, or constitute a default
  under:

            

    

     

    
      	
              (i)  

            	
               any
      statute, or any rule, regulation or order, judgment or decree of any
      government, governmental agency or body or any court applicable in respect
      of RBSG or any of its property;

            

    

     

    
      	
              (ii)  

            	
              any
      agreement or instrument or other obligation to which RBSG is a party or by
      which RBSG or any of its properties, undertakings, assets or revenues are
      bound; or

            

    

     

    
      	
              (iii)  

            	
              the
      constitutional documents of RBSG.

            

    

     

    3. The
Shares

     

    3.1 Save for any
Encumbrance created pursuant to this Deed, there will be no Encumbrance over or
in relation to the Subscriber “A” Preference Shares at the time of their
allotment and issue.

     

    3.2 At the date
of allotment of the Subscriber “A” Preference Shares, the directors of the
Company shall have due authority to allot the Subscriber “A” Preference Shares
and such shares shall be:

     

    
      	
              (a)  

            	
              issued
      as freely transferable shares with the rights set out in the Articles of
      Association and ranking pari passu among
      themselves; and

            

    

     

    
      	
              (b)  

            	
              duly
      authorised and validly issued and will be credited as fully paid
      up.

            

    

     

    3.3 At the date
of allotment of the Subscriber Ordinary Shares, the directors of the Company
shall have due authority to allot the Subscriber Ordinary Shares and such shares
when allotted and issued will have been duly and validly authorised and, upon
allotment and issue as provided in this Deed, will be fully paid and free from
any Encumbrances.

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    4. Taxation

     

    4.1 The Company
is and, during any period in which the Subscriber holds, or is contractually
obliged to subscribe for, shares in the Company (and for the time immediately
thereafter) will remain, resident in the United Kingdom and nowhere else for
United Kingdom Taxation purposes.

     

    4.2 RBSG has not
caused or permitted any issue or transfer of shares or debentures in the Company
which is unlawful for the purposes of section 765 of the Income and Corporation
Taxes Act 1988.

     

    4.3 No share
register of the Company is located or kept in the United Kingdom.

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    SCHEDULE 2

     

    DEED
OF NOVATION

     

    THIS DEED is made on [  ] 2008

     

    BETWEEN:

     

    
      	
              (1)  

            	
              UBS LIMITED a company
      incorporated under the laws of England and Wales with registered number
      2035362, whose registered office is at 1 Finsbury Avenue, London EC2M 2PP
      [(the Subscriber)] [(UBS)];

            

    

     

    
      	
              (2)  

            	
              MERRILL LYNCH
      INTERNATIONAL, a company incorporated under the laws of England and
      Wales with registered number 02312079, whose registered office is at
      Merrill Lynch Financial Centre, 2 King Edward Street, London EC1A 1HQ
      [(the Subscriber)] [(Merrill
      Lynch)];

            

    

     

    
      	
              (3)  

            	
              ENCUENTRO LIMITED, a
      company incorporated in Jersey with registered number 99953, whose
      registered office is at Whiteley Chambers, Don Street, St Helier, Jersey
      JE4 9WG (the Company);

            

    

     

    
      	
              (4)  

            	
              THE ROYAL BANK OF SCOTLAND
      GROUP PLC, a company incorporated under the laws of Scotland with registered
      number 45551, whose registered office is at 36 St Andrew Square, Edinburgh
      EH2 2YB (RBSG);
      and

            

    

     

    
      	
              (5)  

            	
              [ ], a company
      incorporated under the laws of [ ] with registered
      number [ ], whose
      registered office is at [
      ] (the New
      Subscriber).

            

    

     

    Whereas:

     

    (A) Pursuant to
the First Subscription and Transfer Deed, the Subscriber has agreed to subscribe
for, and the Company has agreed to allot and issue to the Subscriber, the
Subscriber “A” Preference Shares, and Subscriber has agreed to transfer the
Subscriber “A” Preference Shares and the Subscriber Ordinary Shares to
RBSG.

     

    (B) RBSG wishes
the Subscriber to be released and discharged from the First Subscription and
Transfer Deed as from the date of this Deed (the Effective
Date) and the New Subscriber has agreed to release and discharge the
Subscriber from the Effective Date upon the terms of the New Subscriber’s
undertaking to perform and discharge the Subscriber’s obligations, duties and
liabilities under the First Subscription and Transfer Deed and be bound by the
terms of the First Subscription and Transfer Deed in place of the
Subscriber.

     

    1.           Interpretation

     

    1.1           In
this Deed, the following expressions shall have the following
meanings:

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    First
Subscription and Transfer Deed means the deed entitled “First
Subscription and Transfer Deed” entered into on [  ] 2008 between,
among others, the Subscriber, the Company and RBSG;

     

    Capitalised
terms used in this Deed, unless otherwise defined herein, shall have the meaning
given to them in the First Subscription and Transfer Deed.

     

    1.2           In
this Deed, unless the context otherwise requires:

     

    
      	
              (a)  

            	
              references
      to “persons” shall
      include individuals, bodies corporate (wherever incorporated),
      unincorporated associations and
partnerships;

            

    

     

    
      	
              (b)  

            	
              the
      headings are inserted for convenience only and shall not affect the
      construction of this Deed; and

            

    

     

    
      	
              (c)  

            	
              any
      reference to an enactment or statutory provision is a reference to it as
      it may have been, or may from time to time be, amended, modified,
      consolidated or re-enacted except to the extent that any such amendment,
      consolidation or re-enactment after the date of this Deed would increase
      or extend the liability of any Joint Sponsor hereunder (whether in its
      capacity as Subscriber or not).

            

    

     

    2.Novation

     

    On the date
of this Deed, and in consideration for the parties’ mutual obligations under
this Deed:

     

    
      	
              2.1

            	
              the
      Subscriber novates to the New Subscriber its rights and benefits under the
      First Subscription and Transfer
Deed;

            

    

     

    
      	
              2.2

            	
              the
      New Subscriber assumes and shall be obliged and undertakes to perform and
      discharge the Subscriber’s obligations, duties and liabilities under the
      First Subscription and Transfer Deed in place of the Subscriber to the
      extent falling to be performed and discharged after the date of this
      Deed;

            

    

     

    
      	
              2.3

            	
              the
      New Subscriber shall have all the rights and benefits, and shall bear all
      the obligations, duties and liabilities, of the Subscriber under the First
      Subscription and Transfer Deed from the date of this
  Deed;

            

    

     

    
      	
              2.4

            	
              the
      Subscriber is released from all of its obligations, duties and liabilities
      under the First Subscription and Transfer Deed to the extent falling to be
      performed and discharged after the date of this Deed (but without
      prejudice to accrued rights); and

            

    

     

    
      	
              2.5

            	
              the
      Company, RBSG and [UBS] [Merrill Lynch] consent and
      agree:

            

    

     

    
      	
               
      

            	
              (i)

            	
              to the
      terms of this Deed and the novation effected by
  it;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              to be
      bound by the First Subscription and Transfer Deed in every way as if the
      New Subscriber were expressly named as the Subscriber under the First
      Subscription and Transfer Deed; and

            

    

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              to
      discharge the Subscriber from all claims, liabilities and demands by the
      Company, RBSG or [UBS] [Merrill Lynch] under the First
      Subscription and Transfer Deed, save to the extent these have accrued
      prior to the date of this Deed.

            

    

     

    3.           Notice
and acknowledgment

     

    
      	
              3.1

            	
              The
      Subscriber notifies each of the other parties of the novation referred to
      in clause 2.

            

    

     

    
      	
              3.2

            	
              Each
      of the other parties consents to the novation referred to in clause 2 and
      acknowledges receipt and sufficiency of the notification given by the
      Subscriber in clause 3.1.

            

    

     

    4.           Variation

     

    
      	
              4.1

            	
              No
      variation of this Deed shall be valid unless it is in writing and signed
      by or on behalf of each of the parties.  The expression
      “variation” shall include without limitation any supplement, deletion,
      novation or replacement howsoever
effected.

            

    

     

    
      	
              4.2

            	
              Unless
      expressly agreed, no variation shall constitute a general waiver of any
      provisions of this Deed, nor shall it affect any rights, obligations or
      liabilities under or pursuant to this Deed which have already accrued up
      to the date of variation, and the rights and obligations of the parties
      under or pursuant to this Deed shall remain in full force and effect,
      except and only to the extent that they are so
  varied.

            

    

     

    5.           FURTHER
ASSURANCE

     

    Each party
agrees to perform all further acts and things, and execute and deliver such
further documents, as may be required by law or as may be necessary or
reasonably desirable to implement and/or give effect to this Deed.

     

    6.    Assignments
and transfer

     

    Other than
in accordance with the provisions of clause 8 of the First Subscription and
Transfer Deed, no party may assign any of its rights or transfer any of its
rights or obligations under this Deed.

     

    7.    Partial
invalidity

     

    If any
provision of this Deed is or becomes invalid, illegal or unenforceable in any
jurisdiction, that shall not affect the legality, validity or enforceability of
the remaining provisions in that jurisdiction or of that provision in any other
jurisdiction.

     

    8.           WAIVER OR
VARIATION

     

    No failure
or delay by any Party in exercising any right or remedy relating to this Deed
shall affect or operate as a waiver or variation of that right or remedy or
preclude its exercise at any subsequent time.  No single or partial
exercise of any such 

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    right or
remedy shall preclude any further exercise of it or the exercise of any other
remedy.

     

    9.           NOTICES 

     

    
      	
              9.1

            	
              The
      provisions of clause 18 (Notices) of the First
      Subscription and Transfer Deed shall apply to this
  Deed.

            

    

     

    
      	
              9.2

            	
              For
      the purpose of the First Subscription and Transfer Deed, the New
      Subscriber’s address for notices shall be as
  follows:

            

    

     

    For the
attention of [name or position]

     

    [address]

     

    Facsimile
number: [number]

     

    10.           COUNTERPARTS

     

    This Deed
may be executed in any number of counterparts and by the parties on different
counterparts, but shall not be effective until each party has executed at least
one counterpart.  Each counterpart shall be deemed an original, but
all the counterparts shall together constitute one and the same
agreement.

     

    11.    Contracts
(Rights of Third Parties) Act 1999

     

    A person who
is not a party to this Deed shall have no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any of its terms.

     

    12.    Service of
process

     

    The Company
hereby irrevocably appoints Hackwood Secretaries Limited at the date hereof
situated at One Silk Street, London EC2Y 8HQ (for the attention of the Company
Secretary for the time being) or such other person as the Company may from time
to time approve for the purpose of accepting service of process on its behalf in
England in respect of any proceedings arising out of or in connection with this
Deed.  Such service shall be deemed completed on delivery to Hackwood
Secretaries Limited whether or not it is forwarded to or received by the
Company).

     

    13.    Governing
law

     

    This Deed
and any non-contractual obligations arising out of or in relation to this Deed
are governed by and shall be construed in accordance with English
law.

     

    14.    Jurisdiction

     

    The parties
irrevocably agree that the English courts shall have exclusive jurisdiction to
settle any dispute arising out of or in connection with this Deed and each party
irrevocably agrees to submit to the exclusive jurisdiction of the English courts
for all purposes relating to this Deed.

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    IN WITNESS whereof the parties
have executed this Deed on the date and year first above written.

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  
                    SIGNED and DELIVERED

                    as a DEED
      by ENCUENTRO
      LIMITED

                    acting
      by a Directors and

                    [a
      Director] [the
      Secretary] 

                  

                	
                  )

                  )

                  )

                  )

                	 
      

        

         

      

      
         

        
          	
                  
                    
                      SIGNED and DELIVERED

                      as a DEED by THE ROYAL BANK
      OF

                      SCOTLAND GROUP
      PLC

                      
                        acting
      by a Directors and

                        [a
      Director] [the
      Secretary] 

                      

                    

                  

                	
                  )

                  )

                  )

                  
                    )
)

                	 
      

        

         

         

      

      
        
          	
                  
                    
                      SIGNED and DELIVERED

                      as a
      DEED by UBS LIMITED

                      acting
      by authorised signatories

                    

                  

                	
                  )

                  )

                  )

                	 
      

        

          

      

      
         

        
          	
                  
                    
                      
                        SIGNED and DELIVERED

                        as a
      DEED
      by         

                        MERRILL LYNCH
      INTERNATIONAL

                      

                    

                  

                	
                  )

                  )

                  )

                	 
      

        

         

        Witnessed
by:  .....................................

      

      

      Name:
...................................................

      

      Occupation: ..........................................

      

      Address:
..............................................

       

    

    
      
         

        
          	
                  
                    SIGNED and DELIVERED

                    as a DEED
      by 

                    [NEW
      SUBSCRIBER]

                    acting
      by a Directors and

                    [a
      Director] [the
      Secretary] 

                  

                	
                  )

                  )

                  )

                  )

                  )

                	 
      

        

         

        30

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