Document:

EXHIBIT
4.21

       

       

      Dated 19 January
2009

       

       

      

       

      THE
ROYAL BANK OF SCOTLAND GROUP PLC

       

      and

       

      UBS
LIMITED

       

      and

       

      MERRILL
LYNCH INTERNATIONAL

       

      and

       

      THE
COMMISSIONERS OF HER MAJESTY’S TREASURY

       

       

       

        
          

        

      

       

      PLACING
AND OPEN OFFER AGREEMENT

      

      
        
          

        

      

      
 

       

      Slaughter and
May

      One Bunhill
Row

      London

      EC1Y
8YY

      (NV/PIRD)

      CD090170002

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        Contents

         

        Page

         

        
          	
                  1.

                	
                  INTERPRETATION

                	
                  2

                
	 	 	 
	
                  2.

                	
                  CONDITIONS

                	
                  18

                
	 	 	 
	
                  3.

                	
                  THE
      PLACING AND OPEN OFFER AND APPOINTMENTS

                	
                  24

                
	 	 	 
	
                  4.

                	
                  ALLOTMENT
      OF THE NEW SHARES, CONSIDERATION AND REGISTRATION

                	
                  29

                
	 	 	 
	
                  5.

                	
                  OVERSEAS
      SHAREHOLDERS

                	
                  31

                
	 	 	 
	
                  6.

                	
                  HM
      TREASURY ACQUISITION

                	
                  34

                
	 	 	 
	
                  7.

                	
                  CAPACITY

                	
                  36

                
	 	 	 
	
                  8.

                	
                  FEES,
      COMMISSIONS, EXPENSES AND VAT

                	
                  37

                
	 	 	 
	
                  9.

                	
                  COVENANTS

                	
                  39

                
	 	 	 
	
                  10.

                	
                  REPRESENTATIONS,
      WARRANTIES AND UNDERTAKINGS

                	
                  42

                
	 	 	 
	
                  11.

                	
                  INDEMNITIES

                	
                  44

                
	 	 	 
	
                  12.

                	
                  CONTRIBUTION

                	
                  47

                
	 	 	 
	
                  13.

                	
                  TERMINATION

                	
                  48

                
	 	 	 
	
                  14.

                	
                  EXCLUSIONS
      OF LIABILITY

                	
                  51

                
	 	 	 
	
                  15.

                	
                  MISCELLANEOUS

                	
                  52

                
	 	 	 
	
                  16.

                	
                  GENERAL

                	
                  52

                
	 	 	 
	
                  17.

                	
                  ASSIGNMENT
      OR NOVATION

                	
                  55

                
	 	 	 
	
                  18.

                	
                  NOTICES

                	
                  55

                
	 	 	 
	
                  19.

                	
                  GOVERNING
      LAW AND SUBMISSION TO JURISDICTION

                	
                  56

                

        

         

         

        
          	
                  SCHEDULE
      1 CERTIFICATES TO BE DELIVERED

                	
                  58

                
	 	 
	
                  SCHEDULE
      2 DOCUMENTS TO BE DELIVERED

                	
                  62

                
	 	 
	
                  SCHEDULE
      3 WARRANTIES

                	
                  68

                

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

         

        
          	
                  SCHEDULE
      4 PRO FORMA NOVATION AGREEMENT

                	
                  86

                
	 	 
	
                  SCHEDULE
      5 US INVESTOR LETTER

                	
                  91

                
	 	 
	
                  SCHEDULE
      6 CONDITIONS TERM SHEET

                	
                  95

                

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

     

    
      THIS AGREEMENT is dated 19 January 2009
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
      and HM Treasury have agreed that the Preference Shares are to be redeemed
      early as provided in this Agreement.  The amount payable on
      redemption is to be funded by the issue of the New
  Shares.

              

      

       

      
        	
                (B)

              	
                The Company
      proposes to invite Qualifying Shareholders to apply to subscribe for New
      Shares at the Issue Price by way of an open offer and on the terms and
      subject to the conditions to be set out in the Circular, the Prospectus
      and (in the case of Qualifying Non-CREST Shareholders only) the
      Application Form.

              

      

       

      
        	
                (C)

              	
                Each of UBS
      and Merrill Lynch is willing (severally and not jointly or jointly and
      severally), on the terms and subject to the conditions set out in this
      Agreement, to use reasonable endeavours to procure Placees to subscribe
      for the New Shares on such terms and conditions as may be agreed by the
      Company and HM Treasury, including the Treasury Solicitor, and at a price
      not lower than the Issue Price on the basis that the New Shares shall be
      subject to clawback to the extent they are taken up under the Open
      Offer.

              

      

       

      
        	
                (D)

              	
                To the extent
      not placed or taken up under the Open Offer and subject to the provisions
      of this Agreement, HM Treasury is willing to subscribe for (or procure
      that its nominee subscribes for) such New Shares
  itself.

              

      

       

      
        	
                (E)

              	
                The Company
      proposes, subject, inter
      alia, to the passing of the Resolutions, to allot and issue the New
      Shares to such persons as UBS and/or Merrill Lynch may (with the consent
      of HM Treasury) direct, or, failing which, to HM Treasury (or its nominee)
      as Placee.

              

      

       

      
        	
                (F)

              	
                The Company
      has agreed to appoint the Joint Sponsors to act as joint sponsors in
      connection with the applications for Admission and the publication of the
      Circular and as joint bookrunners and placing agents in connection with
      the Placing.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (G)

              	
                Application
      will be made to the FSA and the London Stock Exchange for the admission of
      the New Shares to the Official List and to trading on the London Stock
      Exchange’s market for listed securities and to the regulated market of
      Euronext.

              

      

       

      NOW THEREFORE IT IS AGREED as
follows:

       

      
        1.        
INTERPRETATION

      

       

      
        	
                1.1

              	
                In this
      Agreement (including the Recitals):

              

      

       

      
        	 	
                "ABN
      Amro"

              	 	
                means ABN
      Amro Holding N.V.;

              
	 	 	 	 
	 	
                "ABN
      Amro Accounts"

              	 	
                means the
      audited consolidated accounts of ABN Amro and its subsidiary undertakings
      for the three years ended 31 December 2005, 2006 and 2007  and,
      when published, for the year ended 31 December 2008 (including, without
      limitation, the related directors’ and auditors’ reports, the consolidated
      income statement, the consolidated balance sheet, the consolidated
      cashflow statement, the consolidated statement of changes in equity and
      all related notes);

              
	 	 	 	 
	 	
                "Acceptance"

              	 	
                means
      application and payment validly made (or, where the context so requires,
      treated as validly made) in accordance with the procedures to be set out
      in the Prospectus and (where appropriate) the Application Form (including,
      for the avoidance of doubt, any such application and payment validly made
      in respect of New Shares in addition to Qualifying Shareholders’
      pre-emptive entitlements);

              
	 	 	 	 
	 	
                "Accepted
      Shares"

              	 	
                has the
      meaning given in clause 6.1(A);

              
	 	 	 	 
	 	
                "Accounts"

              	 	
                means, until
      the Posting Date, the audited consolidated accounts of the Group for the
      three years ended 31 December 2005, 2006 and 2007 and, on and following
      the Posting Date, the audited consolidated accounts of the Group for the
      three years ended 31 December 2006, 2007 and 2008 (including, without
      limitation, the related directors’ and auditors’ reports, the consolidated
      income statement, the consolidated balance sheet, the consolidated
      cashflow statement, the consolidated statement of recognised income and
      expense and all related notes);

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Accounts
      Date"

              	 	
                means, until
      the Posting Date, 31 December 2007 and on and after the Posting Date, 31
      December 2008;

              
	 	 	 	 
	 	
                "Admission"

              	 	
                means the
      admission of the New Shares to the Official List becoming effective in
      accordance with paragraph 3.2.7G of the Listing Rules and admission to
      trading on the London Stock Exchange’s  market for listed
      securities becoming effective in accordance with paragraph 2.1 of the
      Admission and Disclosure Standards and admission of the New Shares to
      listing and trading on the regulated market of Euronext becoming effective
      in accordance with the Euronext Rule Books;

              
	 	 	 	 
	 	
                "Admission
      and Disclosure Standards"

              	 	
                means the
      Admission and Disclosure Standards of the London Stock Exchange, as
      amended from time to time;

              
	 	 	 	 
	 	
                "Adverse
      Interest”

              	 	
                means any
      option, lien, mortgage, charge, equity, trust, any other right or interest
      of any third party and any other encumbrance of any
  kind;

              
	 	 	 	 
	 	
                "Affiliate"

              	 	
                means, unless
      otherwise specified herein, "affiliate" as defined in Rule 405 under the
      Securities Act or, as the context may require, Rule 501(b) under
      Regulation D of the Securities Act;

              
	 	 	 	 
	 	
                "Application
      Form"

              	 	
                means the
      application form, in a form acceptable to HM Treasury and to the Joint
      Sponsors, acting reasonably, to be despatched to Qualifying Non-CREST
      Shareholders for use in connection with the Open Offer;

              
	 	 	 	 
	 	
                "Auditors"

              	 	
                means
      Deloitte LLP;

              
	 	 	 	 
	 	
                "Board"

              	 	
                means the
      Board of Directors of the Company or a duly authorised committee
      thereof;

              
	 	 	 	 
	 	
                "Business
      Day"

              	 	
                means any day
      (other than a Saturday or Sunday) on which clearing banks are open for a
      full range of banking transactions in London;

              
	 	 	 	 
	 	
                "CA
      1985"

              	 	
                means the
      Companies Act 1985;

              
	 	 	 	 
	 	
                "CA
      2006"

              	 	
                means the
      Companies Act 2006;

              

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Capital
      Resources Requirement"

              	 	
                has the
      meaning given in the FSA Rules;

              
	 	 	 	 
	 	
                "Circular"

              	 	
                means the
      circular, in a form acceptable to HM Treasury and to the Joint Sponsors,
      to be sent to the Qualifying Shareholders (other than the Prohibited
      Shareholders and US Shareholders) giving details of the Placing and Open
      Offer and redemption of the Preference Shares and containing notice of the
      GM;

              
	 	 	 	 
	 	
                "Claims"

              	 	
                means any and
      all claims, actions, liabilities, demands, proceedings, investigations,
      judgments or awards whatsoever (and in each case whether or not
      successful, compromised or settled and whether joint or several)
      threatened, asserted, established or instituted against any Indemnified
      Person and “Claim”
      shall be construed accordingly;

              
	 	 	 	 
	 	
                "Closing
      Date"

              	 	
                means the
      last date for Acceptance under the terms of the Open
  Offer;

              
	 	 	 	 
	 	
                "Companies
      Acts"

              	 	
                means the CA
      1985 and/or the CA 2006 as the context requires;

              
	 	 	 	 
	 	
                "CREST"

              	 	
                means the
      relevant system (as defined in the Regulations) in respect of which
      Euroclear is the Operator (as defined in the
  Regulations);

              
	 	 	 	 
	 	
                "Dealing
      Day"

              	 	
                means a day
      on which dealings in securities may take place on and with the authority
      of the London Stock Exchange and Euronext;

              
	 	 	 	 
	 	
                "Directors"

              	 	
                means the
      directors of the Company from time to time;

              
	 	 	 	 
	 	
                "DTRs"

              	 	
                means the
      Disclosure and Transparency Rules, as amended from time to time, made by
      the FSA pursuant to Part VI of FSMA;

              
	 	 	 	 
	 	
                "EEA"

              	 	
                means the
      European Economic Area;

              
	 	 	 	 
	 	
                "Effective
      Date"

              	 	
                means the
      date of this Agreement;

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Enablement
      Letter"

              	 	
                means a
      letter, in a form acceptable to HM Treasury and to the Joint Sponsors,
      acting reasonably, from the Company to Euroclear confirming that the
      conditions for admission of the New Shares to CREST are
      satisfied;

              
	 	 	 	 
	 	
                “Engagement
      Letters”

              	 	
                means the
      engagement letters between the Company and each of the Joint Sponsors
      dated on or about the Effective Date and relating to the Placing and Open
      Offer;

              
	 	 	 	 
	 	
                "Euroclear"

              	 	
                means
      Euroclear UK & Ireland Limited;

              
	 	 	 	 
	 	
                “Euroclear
      Nederland”

              	 	
                means
      Nederlands Centraal Instituut voor Giraal Effectenverkeer B.V., the Dutch
      depositary and settlement institute;

              
	 	 	 	 
	 	
                "Euronext"

              	 	
                means
      Euronext Amsterdam NV;

              
	 	 	 	 
	 	
                “Euronext
      Rule Books”

              	 	
                means the
      rule books of Euronext from time to time;

              
	 	 	 	 
	 	
                "Exchange
      Act"

              	 	
                means the
      United States Securities Exchange Act of 1934;

              
	 	 	 	 
	 	
                "FCPA"

              	 	
                means the US
      Foreign Corrupt Practices Act of 1977 including the rules and regulations
      thereunder;

              
	 	 	 	 
	 	
                "Form
      of Proxy"

              	 	
                means the
      form of proxy, in a form acceptable to HM Treasury and to the Joint
      Sponsors, acting reasonably, to be sent to Qualifying Shareholders (other
      than Prohibited Shareholders and US Shareholders) in connection with the
      GM;

              
	 	 	 	 
	 	
                "FSA"

              	 	
                means the
      Financial Services Authority acting in its capacity as the competent
      authority for the purposes of Part VI of the FSMA;

              
	 	 	 	 
	 	
                “FSA
      Rules”

              	 	
                means the
      rules, as amended from time to time, made by the FSA under the
      FSMA;

              
	 	 	 	 
	 	
                "FSMA"

              	 	
                means the
      Financial Services and Markets Act 2000, including any regulations made
      pursuant thereto;

              
	 	 	 	 
	 	
                "GM"

              	 	
                means the
      general meeting of the Company to be convened at which the Resolutions are
      to be proposed, or any adjournment of
it;

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "GM
      Date"

              	 	
                means the
      date on which the GM is held, being no later than 1 April 2009, or such
      later date as the Company, HM Treasury and the Joint Sponsors may
      agree;

              
	 	 	 	 
	 	
                "Group"

              	 	
                means the
      Company and its subsidiary undertakings from time to time and "Group Company" means any
      of them (and, for the avoidance of doubt, references in this Agreement to
      the “Group”, “Group Companies” and “members of the Group” include, without
      limitation ABN Amro and each of its subsidiary
    undertakings);

              
	 	 	 	 
	 	
                "HMT
      Indemnified Persons"

              	 	
                means:

                 

                (a)    
      The Commissioners of Her Majesty’s Treasury;

                 

                (b)    
      the Treasury;

                 

                (c)    
      the Treasury Solicitor;

                 

                (d)    
      any entity to which HM Treasury novates its rights and obligations under
      this Agreement pursuant to clause 17;
      and

                 

                (e)    
      any person who is, on or at any time after the date of this agreement, a
      director, officer, official, agent or employee of or under any person
      specified in paragraph (a), (b), (c) or (d) above;

                 

                and “HMT Indemnified Person”
      shall be construed accordingly;

              
	 	 	 	 
	 	
                “IFRS”

              	 	
                means
      International Financial Reporting Standards as adopted by the European
      Union;

              
	 	 	 	 
	 	
                "Indemnified
      Persons"

              	 	
                means each
      and any HMT Indemnified Person, each and any UBS Indemnified Person and
      each and any Merrill Lynch Indemnified Person and “Indemnified Person”
      shall be construed accordingly;

              

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Intellectual
      Property Rights"

              	 	
                means
      patents, trade marks, service marks, logos, get-up, trade names, rights in
      designs, copyright (including rights in computer software), internet
      domain names, moral rights, utility models, rights in know how, rights in
      databases and other intellectual property rights, in each case whether
      registered or unregistered and including applications for the grant of any
      such rights and all rights or forms of protection having equivalent or
      similar effect anywhere in the world;

              
	 	 	 	 
	 	
                "Interim
      Accounts"

              	 	
                means the
      unaudited consolidated financial information for the Group in respect of
      the six month period ended 30 June 2008;

              
	 	 	 	 
	 	
                "Interim
      Management Statement"

              	 	
                means the
      interim management statement released by the Company on 4 November
      2008;

              
	 	 	 	 
	 	
                "Investment
      Company Act"

              	 	
                means the
      United States Investment Company Act of 1940;

              
	 	 	 	 
	 	
                "Issue
      Documents"

              	 	
                means the
      Press Announcement, the Application Form, the Circular, the Form of Proxy,
      the Prospectus, any Supplementary Prospectus, the Presentation, any
      interim management statement published after the Effective Date and before
      Admission and any other document published or issued after the Effective
      Date by or on behalf of the Company in connection with the Placing or the
      Open Offer or the redemption of the Preference Shares;

              
	 	 	 	 
	 	
                "Issue
      Price"

              	 	
                means the
      price of 31.75 pence per New Share;

              
	 	 	 	 
	 	
                "Joint
      Sponsors"

              	 	
                means UBS and
      Merrill Lynch;

              
	 	 	 	 
	 	
                "Listing
      Rule Resolutions"

              	 	
                means those
      resolutions, in a form acceptable to HM Treasury, if and to the extent
      required under Chapters 10 and 11 of the Listing Rules in connection with
      the Placing and Open Offer and the redemption of the Preference Shares to
      be proposed at the GM;

              
	 	 	 	 
	 	
                "Listing
      Rules"

              	 	
                means the
      Listing Rules made by the FSA pursuant to section 73A of the FSMA, as
      amended from time to time;

              
	 	 	 	 
	 	
                "London
      Stock Exchange"

              	 	
                means London
      Stock Exchange plc;

              

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Losses"

              	 	
                means any and
      all loss, damage, cost, liability, demand, charge or expense (including
      legal fees), in each case whether joint or several, which any Indemnified
      Person may suffer or incur (including, but not limited to, all Losses
      suffered or incurred in investigating, preparing for or disputing or
      defending or settling any Claim and/or in establishing its right to be
      indemnified pursuant to clause 11 and/or in
      seeking advice regarding any Claim or in any way related to or in
      connection with the indemnity contained in clause 11) and “Loss” shall be construed
      accordingly;

              
	 	 	 	 
	 	
                "Material
      Adverse Effect"

              	 	
                means an
      event has occurred or is reasonably likely to occur which has resulted in
      or may result in a material adverse change in or affecting the condition
      (financial, operational, legal or otherwise), profitability, prospects,
      solvency, business affairs or operations of the Group, taken as a whole,
      whether or not arising in the ordinary course of
  business;

              
	 	 	 	 
	 	
                "Material
      Subsidiaries"

              	 	
                means The
      Royal Bank of Scotland plc, National Westminster Bank plc, Ulster Bank
      Limited, Citizens Financial Group, Inc., Greenwich Capital Markets, Inc.,
      RBS Insurance Group Limited and ABN Amro Bank N.V.;

              
	 	 	 	 
	 	
                "Merrill
      Lynch Indemnified Persons"

              	 	
                means:

                 

                (a)    
      Merrill Lynch and any subsidiary, branch or affiliate of Merrill
      Lynch;

                 

                (b)    
      a person who is, on or at any time after the date of this Agreement, a
      director, officer, partner or employee of an undertaking specified in
      paragraph (a) above; and

                 

                (c)    
      Merrill Lynch, their selling agents and each person, if any, who controls
      Merrill Lynch within the meaning of Section 15 of the Securities Act or
      Section 20 of the Exchange Act and Merrill Lynch’s respective affiliates,
      subsidiaries, branches, affiliates, associates and holding companies and
      the subsidiaries of such subsidiaries, branches, affiliates, associates
      and holding companies and each of such person’s respective directors,
      officers and employees,

              

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                and “Merrill Lynch Indemnified
      Person” shall be construed accordingly;

              
	 	 	 	 
	 	
                "New
      Shares"

              	 	
                means
      15,905,511,812 new Ordinary Shares together with such number of Ordinary
      Shares as shall, at the Issue Price, give rise to issue proceeds equal to
      the amount of the Preference Share Dividend and the total commission
      payable to HM Treasury in terms of clauses 8.1(A) and 8.1(B), in each case
      determined, to the extent practicable, immediately prior to the Posting
      Date and which are to be allotted and issued pursuant to the Placing and
      the Open Offer;

              
	 	 	 	 
	 	
                “NFSA”

              	 	
                means the
      Netherlands Financial Supervision Act (Wet Op Het Financieel
      Toezicht);

              
	 	 	 	 
	 	
                “Non-Accepted
      Shares”

              	 	
                has the
      meaning given in clause 6.1(B);

              
	 	 	 	 
	 	
                “Notifying
      Sponsor”

              	 	
                has the
      meaning given in clause 13.4;

              
	 	 	 	 
	 	
                “OECD
      Convention”

              	 	
                means the
      OECD Convention on Combating Bribery of Foreign Public Officials in
      International Business Transactions;

              
	 	 	 	 
	 	
                “Official
      List”

              	 	
                means the
      Official List maintained by the FSA in its capacity as UK Listing
      Authority;

              
	 	 	 	 
	 	
                “Open
      Offer”

              	 	
                means the
      conditional invitation by the Company to Qualifying Shareholders to apply
      to subscribe for New Shares on the basis to be referred to in the
      Circular, the Prospectus and (for Qualifying Non-CREST Shareholders only)
      the Application Form;

              
	 	 	 	 
	 	
                “Open
      Offer Acceptors”

              	 	
                means those
      Qualifying Shareholders that have validly applied (or are treated as
      having validly applied) to subscribe for New Shares under the Open
      Offer;

              
	 	 	 	 
	 	
                “Open
      Offer Documents”

              	 	
                means the
      Circular, the Prospectus, any Supplementary Prospectus, the Form of Proxy
      and the Application Form;

              
	 	 	 	 
	 	
                “Open
      Offer Entitlement”

              	 	
                an
      entitlement to apply to subscribe for New Shares allocated to a Qualifying
      Shareholder pursuant to the Open Offer;

              
	 	 	 	 
	 	
                “Ordinary
      Shareholders”

              	 	
                means holders
      of Ordinary Shares;

              

      

       

      
         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

      

       

      
        	 	
                “Ordinary
      Shares”

              	 	
                means
      ordinary shares of 25 pence each in the capital of the
      Company;

              

      

       

      
        	 	
                “Overall
      Financial Resources Rule”

              	 	
                has the
      meaning given in the FSA Rules;

              
	 	 
    	 	 
    
	 	
                “Participating
      Security”

              	 	
                has the
      meaning given to it in the Regulations (and “Participating
      Securities” shall be construed accordingly);

              
	 	 	 	 
	 	
                “Placees”

              	 	
                means any
      placees procured by the Joint Sponsors pursuant to this Agreement to
      subscribe for New Shares pursuant to the Placing, and approved by HM
      Treasury in advance of any subscription by them of New Shares, which may
      include QIBs in the United States and HM Treasury in respect of any
      Residual Shares;

              
	 	 	 	 
	 	
                “Placing”

              	 	
                means the
      proposed arrangements for the procuring of Placees for the New Shares on
      such terms and conditions as may be agreed by HM Treasury, including the
      Treasury Solicitor, and at a price not lower than the Issue Price, subject
      to a right of clawback in respect of any New Shares which are taken up
      under the Open Offer;

              
	 	 	 	 
	 	
                “Placing
      and Open Offer”

              	 	
                means the
      Placing and the Open Offer or any of them;

              
	 	 	 	 
	 	
                “Placing
      Documents”

              	 	
                means the
      Press Announcement, the Presentation, the Prospectus and the Placing
      Letters;

              
	 	 	 	 
	 	
                “Placing
      Letters”

              	 	
                means the UK
      Placing Letter and the US Placing Letter;

              
	 	 	 	 
	 	
                “Placing
      Schedule”

              	 	
                has the
      meaning given in clause 3.5;

              
	 	 	 	 
	 	
                “Posting
      Date”

              	 	
                means the
      date on which the Company publishes the Prospectus and despatches the
      Circular to Shareholders, being no earlier than 27 February
      2009;

              
	 	 	 	 
	 	
                “Preference
      Share Dividend”

              	 	
                means the
      dividend accrued on the Preference Shares from and including 1 December
      2008 to but excluding the date of
Admisson;

              

      

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Preference
      Shares"

              	 	
                means the
      5,000,000 Non-cumulative Sterling Preference Shares of £1.00 each, Series
      2, in the Company owned by HM Treasury;

              
	 	 	 	 
	 	
                "Presentation"

              	 	
                means any
      presentation, in the form to be agreed, used by the Company during
      presentations to institutional investors in connection with the Placing
      and any other publicity materials relating to the redemption of the
      Preference Shares and/or the Placing and Open Offer prepared by or at the
      request of the Company;

              
	 	 	 	 
	 	
                "Press
      Announcement"

              	 	
                means the
      press announcement dated the Effective Date giving details of, inter alia,
      the Placing and Open Offer and the redemption of the Preference
      Shares;

              
	 	 	 	 
	 	
                "Previous
      Announcements"

              	 	
                means all
      documents issued and announcements (other than the Press Announcement)
      made by or on behalf of the Company or any member of the Group through a
      Regulatory Information Service (including by way of a public regulatory
      filing) since the Accounts Date and before the Effective Date and
      including the Interim Management Statement;

              
	 	 	 	 
	 	
                “Previous
      Prospectus”

              	 	
                means the
      prospectus issued by the Company in respect of Ordinary Shares on 4
      November 2008;

              
	 	 	 	 
	 	
                "Prohibited
      Shareholders"

              	 	
                means holders
      of Ordinary Shares with registered addresses in Canada, Australia, South
      Africa or such other jurisdiction(s) as may be agreed by the Company and
      the Joint Sponsors;

              
	 	 	 	 
	 	
                "Prospectus"

              	 	
                means the
      prospectus (including the information incorporated by reference therein)
      comprising a prospectus for the purposes of the Prospectus Rules to be
      published by the Company in relation to the Placing and Open Offer, in the
      form to be agreed;

              
	 	 	 	 
	 	
                “Prospectus
      Directive”

              	 	
                means
      Directive 2003/71/EC;

              
	 	 	 	 
	 	
                "Prospectus
      Rules"

              	 	
                has the
      meaning given in Section 73A(4) of FSMA;

              
	 	 	 	 
	 	
                "Qualifying
      CREST Shareholders"

              	 	
                means
      Qualifying Shareholders whose Ordinary Shares on the register of members
      of the Company at the close of business on the Record Date are in
      uncertificated form;

              

      

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Qualifying
      Non-CREST Shareholders"

              	 	
                means
      Qualifying Shareholders whose Ordinary Shares on the register of members
      of the Company at the close of business on the Record Date are in
      certificated form;

              
	 	 	 	 
	 	
                "Qualifying
      Shareholders"

              	 	
                means holders
      of Ordinary Shares whose names are on the register of members of the
      Company as at the close of business on the Record Date;

              
	 	 	 	 
	 	
                "QIB
      Purchasers"

              	 	
                has the
      meaning given in clause 5.8(C)(i);

              
	 	 	 	 
	 	
                "QIBs"

              	 	
                has the
      meaning given in clause 5.2;

              
	 	 	 	 
	 	
                "Receiving
      Agent"

              	 	
                means the
      receiving agent to be appointed pursuant to clause 3.8;

              
	 	 	 	 
	 	
                "Receiving
      Agent Agreement"

              	 	
                means an
      agreement among the Company, HM Treasury and the Receiving Agent relating
      to the Placing and Open Offer, in the form to be
agreed;

              
	 	 	 	 
	 	
                "Record
      Date"

              	 	
                means the
      record date for the Open Offer being such date as the Company, the Joint
      Sponsors and HM Treasury shall agree, all acting
    reasonably;

              
	 	 	 	 
	 	
                "Registrars"

              	 	
                means
      Computershare Investor Services PLC;

              
	 	 	 	 
	 	
                "Regulations"

              	 	
                means the
      Uncertificated Securities Regulations 2001;

              
	 	 	 	 
	 	
                "Regulation
      D"

              	 	
                means
      Regulation D under the Securities Act;

              
	 	 	 	 
	 	
                "Regulation
      S"

              	 	
                means
      Regulation S under the Securities Act;

              
	 	 	 	 
	 	
                "Regulatory
      Information Service"

              	 	
                has the
      meaning given in the Listing Rules;

              
	 	 	 	 
	 	
                "Relevant
      Cost"

              	 	
                has the
      meaning given in clause 8.9;

              
	 	 	 	 
	 	
                "Relevant
      Member State"

              	 	
                has the
      meaning given in clause 5.6;

              
	 	 	 	 
	 	
                “Relevant
      Time”

              	 	
                has the
      meaning given in clause 6.1(C)(iii);

              
	 	 	 	 
	 	
                "Residual
      Shares"

              	 	
                has the
      meaning given in clause 6.3;

              
	 	 	 	 
	 	
                "Resolutions"

              	 	
                means the
      Share Capital Resolutions and the Listing Rule
  Resolutions;

              
	 	 	 	 
	 	
                "SDRT"

              	 	
                means stamp
      duty reserve tax;

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Securities
      Act"

              	 	
                means the
      United States Securities Act of 1933;

              
	 	 	 	 
	 	
                "Share
      Capital Resolutions"

              	 	
                means the
      resolutions, in a form acceptable to HM Treasury, acting
      reasonably:

              
	 	 	 	 
	 	 
    	 	
                (a)    
      to increase the authorised share capital of the Company to allow for the
      creation and issue of the New Shares;

                 

                (b)    
      to authorise the Directors to allot under Section 80 of CA 1985 such
      number of Ordinary Shares as equals or exceeds the number of New Shares;
      and

                 

                (c)    
      to amend the articles of association of the Company to enable redemption
      of the Preference Shares on the date of Admission, to be
      proposed at the GM;

              
	 	 	 	 
	 	
                "Specified
      Event"

              	 	
                means an
      event occurring or matter arising on or after the Effective Date,
      which:

              
	 	 	 	 
	 	 
    	 	
                (a)    
      if it had occurred or arisen before or at the Effective Date;
      or

                 

                (b)    
      if it had been known by the Directors before or at the Effective
      Date,

              
	 	 	 	 
	 	 
    	 	
                would have
      rendered any of the Warranties untrue, inaccurate or misleading in any
      respect;

              
	 	 	 	 
	 	
                "Stamp
      Tax"

              	 	
                means any
      stamp, documentary, registration or capital duty or tax (including,
      without limitation,  stamp duty, SDRT and any other similar duty
      or similar tax) and any fines, penalties and/or interest relating
      thereto;

              
	 	 	 	 
	 	
                "Supplementary
      Prospectus"

              	 	
                means any
      prospectus supplementary to the Prospectus published by the Company
      pursuant to section 87G to FSMA;

              

      

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Tax" or
    "Taxation"

              	 	
                means all
      forms of taxation and statutory, governmental, state, provincial, local
      governmental or municipal impositions, duties, contributions and levies
      (including, for the avoidance of doubt, Stamp Tax), in each case in the
      nature of taxation, duty, contribution or levy, 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
      Group Company or any other person and all penalties, charges, costs and
      interest relating thereto;

              
	 	 	 	 
	 	
                "Tax
      Authority"

              	 	
                means any
      government, state, municipal, local, federal or other fiscal, revenue,
      customs or excise authority, body or official anywhere in the world having
      the power to impose, collect or administer any Tax or exercising a fiscal,
      revenue, customs or excise function with respect to Tax (including,
      without limitation, H.M. Revenue and Customs);

              
	 	 	 	 
	 	
                “Time
      of Sale”

              	 	
                means, with
      respect to the Placing, each time identified to the Company by the Joint
      Sponsors as a Time of Sale (with respect to which they are obtaining
      commitments from Placees to take up the New Shares), provided that there
      shall not be more than two times that are treated as a "Time of Sale" for
      purposes of this Agreement without the consent of the Company; such
      consent will not be unreasonably withheld;

              
	 	 	 	 
	 	
                “Time
      of Sale Documents”

              	 	
                means the
      documents specified as being delivered at, or with respect to, the Time of
      Sale in Part III of Schedule 2;

              
	 	 	 	 
	 	
                “Treasury
      Solicitor”

              	 	
                has the same
      meaning as in the Treasury Solicitor Act 1876;

              
	 	 	 	 
	 	
                "UBS
      Indemnified Persons"

              	 	
                means:

                 

                (a)    
      UBS and any subsidiary, branch or affiliate of UBS;

                 

                (b)    
      a person who is, on or at any time after the date of this Agreement, a
      director, officer, partner or employee of an undertaking specified in sub
      paragraph (a) above; and

                 

                (c)    
      UBS, their selling agents and each person, if any, who controls UBS within
      the meaning of

              

      

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                Section 15 of
      the Securities Act or Section 20 of the Exchange Act and UBS’s respective
      affiliates, subsidiaries, branches, affiliates, associates and holding
      companies and the subsidiaries of such subsidiaries, branches, affiliates,
      associates and holding companies and each of such person’s respective
      directors, officers and employees;

              
	 	 	 	 
	 	 	 	
                and “UBS Indemnified Person”
      shall be construed accordingly;

              
	 	 	 	 
	 	
                "UK
      Listing Authority"

              	 	
                means the
      Financial Services Authority acting in its capacity as the competent
      authority for the purposes of Part VI of the FSMA and in the exercise of
      its functions in respect of the admission of securities to the Official
      List otherwise than in accordance with Part VI of the
  FSMA;

              
	 	 	 	 
	 	
                "UK
      Placing Letter"

              	 	
                means a
      letter, in a form acceptable to HM Treasury, to the Joint Sponsors and to
      the Company, each acting reasonably, to be sent by the Company to, and
      executed by, Placees (other than QIBs and HM Treasury) by which New Shares
      are to be offered to Placees on such terms and conditions as may be agreed
      by HM Treasury, including the Treasury Solicitor, and at a price not lower
      than the Issue Price, subject to a right of clawback in respect of any New
      Shares which are taken up under the Open Offer;

              
	 	 	 	 
	 	
                "United
      States"

              	 	
                means the
      United States of America, its territories and possessions, any state of
      the United States and the District of Columbia;

              
	 	 	 	 
	 	
                "US
      Placing Letter"

              	 	
                means a
      letter, in a form acceptable to HM Treasury, to the Joint Sponsors and to
      the Company, each acting reasonably, to be sent by the Company to, and
      executed by, QIBs by which New Shares are to be offered to QIBs on such
      terms and conditions as may be agreed by HM Treasury, including the
      Treasury Solicitor and at a price not lower than the Issue Price, subject
      to a right of clawback in respect of any New Shares which are taken up
      under the Open Offer;

              

      

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "US
      Shareholders"

              	 	
                means
      Ordinary Shareholders who are within the United States or are holding
      Ordinary Shares on behalf of, or for the account or benefit of, persons
      within the United States for whom they are acting without investment
      discretion (but only with respect to any such
holdings);

              
	 	 	 	 
	 	
                "VAT"

              	 	
                means:

              
	 	 	 	 
	 	 
    	 	
                (a)    
      any tax imposed in conformity with the council directive of 28 November
      2006 on the common system of value added tax (EC Directive 2006/112)
      (including, in relation to the United Kingdom, value added tax imposed by
      the VATA and legislation and/or any regulations supplemental thereto);
      and

                 

                (b)    
      any other tax of a similar nature (whether imposed in a member state of
      the European Union in substitution for or in addition to the tax referred
      to in sub-paragraph (a) or imposed elsewhere);

              
	 	 	 	 
	 	
                "VATA"

              	 	
                means the
      Value Added Tax Act 1994;

              
	 	 	 	 
	 	
                "Verification
      Materials"

              	 	
                means
      verification materials in a form acceptable to HM Treasury and to the
      Joint Sponsors, acting reasonably, evidencing the verification process
      supporting the accuracy of certain information contained in the Issue
      Documents;

              
	 	 	 	 
	 	
                "Warranties"

              	 	
                means the
      representations, warranties and undertakings contained in Schedule
      3;

              
	 	 	 	 
	 	
                “Wholly
      Owned Entity”

              	 	
                has the
      meaning given in clause 17.1; and

              
	 	 	 	 
	 	
                "Working
      Capital Report"

              	 	
                means the
      working capital review report to be prepared by the Auditors, in the form
      to be agreed, relating to the Group, to be dated the date of the
      Prospectus and supporting the working capital statements contained in the
      Prospectus.

              

      

       

      
        	
                1.2

              	
                Any reference
      to a document being "in
      the agreed form" or “form to be agreed” means
      in the form of the draft or proof thereof signed or initialled for the
      purpose of identification by Linklaters LLP (on behalf of the Company),
      Slaughter and May (on behalf of HM Treasury) and Freshfields Bruckhaus
      Deringer LLP (on behalf of the Joint Sponsors), or (in the case of
      documents to be agreed) in such form as may be satisfactory to HM Treasury
      and the Joint Sponsors (acting reasonably), and initialled, for the
      purposes of identification only, by such firms on behalf of their clients,
      provided that, in the determination of whether a document to be agreed is
      satisfactory to the Joint 

              

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

       

      
        Sponsors, the
requirement that the Joint Sponsors act reasonably shall not apply in respect of
(i) the Working Capital Report, (ii) the Prospectus (or any Supplementary
Prospectus), (iii) the Circular and (iv) any references to the Joint Sponsors in
any of the Issue Documents (in respect of each of which their discretion shall
be absolute provided that they shall act in good faith). No such initialling
shall imply approval of all or any part of its contents by or on behalf of the
person initialling it or any of the parties to this
Agreement.

      

       

      
        	
                1.3

              	
                The
      Interpretation Act 1978 shall apply to this Agreement in the same way as
      it applies to an enactment.

              

      

       

      
        	
                1.4

              	
                References to
      a statutory provision include any subordinate legislation made from time
      to time under that provision.

              

      

       

      
        	
                1.5

              	
                References to
      a statutory provision include that provision as from time to time
      modified, supplemented or re-enacted so far as such modification or
      re-enactment applies or is capable of applying to any transactions entered
      into in accordance with this
Agreement.

              

      

       

      
        	
                1.6

              	
                In this
      Agreement, a reference to a "subsidiary undertaking"
      or "parent
      undertaking" is to be construed in accordance with section 1162
      (and Schedule 7) of the CA 2006 and a "subsidiary" or "holding company" is to
      be construed in accordance with section 1159 of the CA
    2006.

              

      

       

      
        	
                1.7

              	
                Expressions
      defined or used in the Regulations shall have the same meaning in this
      Agreement (except where the context otherwise
  requires).

              

      

       

      
        	
                1.8

              	
                References to
      this Agreement include its Schedules and references in this Agreement to
      clauses, sub-clauses and Schedules are to clauses and sub-clauses of, and
      Schedules to, this Agreement.

              

      

       

      
        	
                1.9

              	
                The
      obligations of the Joint Sponsors under this Agreement shall be several
      and not joint or joint and several.  No provision of this
      Agreement shall impose any liability on either of the Joint Sponsors for,
      nor shall the rights or remedies of either of the Joint Sponsors be
      adversely affected by, any act or omission by the other Joint Sponsor or
      for any breach by the other Joint Sponsor of the provisions of this
      Agreement.  The obligations owed by the Company to the Joint
      Sponsors are owed to them as separate and independent obligations, and
      each Joint Sponsor shall have the right to protect and enforce its rights
      hereunder without joining the other Joint Sponsor in any
      proceedings.

              

      

       

      
        	
                1.10

              	
                Headings
      shall be ignored in construing this
Agreement.

              

      

       

      
        	
                1.11

              	
                References to
      time of day are to London time unless otherwise
  stated.

              

      

       

      
        	
                1.12

              	
                When
      construing any provision relating to VAT, any reference in this Agreement
      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.

              

      

       

      
        	
                1.13

              	
                Any reference
      to any indemnity, covenant to pay or payment (a “Payment Obligation”)
      being given or made on an “after-Tax basis” or
      expressed to be calculated on an “after-

              

      

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

      
        Tax basis” means that, in
calculating the amount payable pursuant to such Payment Obligation (the “Payment”), there shall be
taken into account (if and to the extent that the same has not already been
taken into account in the calculation of the Payment):

         

      

      
        	
                 
      

              	
                (A)

              	
                any Tax
      suffered by the person entitled to receive the Payment to the extent that
      it arises as a result of the matter giving rise to the Payment Obligation
      or as a result of receiving, or being entitled to receive, the Payment;
      and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                any relief,
      exemption, allowance or credit which is available to set against any Tax
      otherwise payable or against any income, profits or gains for Tax
      purposes, and any right to any refund or reimbursement of any Tax, which
      in each case is available to the person entitled to receive the Payment if
      and to the extent that the same arises as a result of the matter giving
      rise to the Payment Obligation or as a result of receiving, or being
      entitled to receive, the Payment,

              

      

       

      such that the
person entitled to receive the Payment is in the same economic position after
Tax that it would have been in if the matter giving rise to the Payment
Obligation had not occurred.

       

      
        	
                1.14

              	
                Each
      reference in this Agreement to the Joint Sponsors or either of them by any
      description or in any capacity includes a reference to it in each other
      capacity in which it may act pursuant to this Agreement or otherwise with
      the agreement of the Company in connection with the Placing and Open
      Offer.

              

      

       

      
        	
                1.15

              	
                Any reference
      to the Joint Sponsors or to HM Treasury approving or agreeing the form of
      an Issue Document, shall be a reference to such approval or agreement
      being given solely for the purposes of this
  Agreement.

              

      

       

      
        	
                1.16

              	
                A reference
      to “certificated”
      or “certificated
      form“ in relation to a share or other security is a reference to a
      share or other security title to which is recorded on the relevant
      register of the share or other security as being held in certificated
      form.

              

      

       

      
        	
                1.17

              	
                A reference
      to “uncertificated” or
      “uncertificated
      form“ in relation to a share or other security is a reference to a
      share or other security title to which is recorded on the relevant
      register of the share or other security as being held in uncertificated
      form, and title to which, by virtue of the Regulations, may be transferred
      by means of CREST.

              

      

       

      
        	
                1.18

              	
                Words and
      expressions defined in the Companies Acts shall bear the same
      meaning.

              

      

       

      
        2.        
CONDITIONS

      

       

      
        	
                2.1

              	
                The
      obligations of HM Treasury and of the Joint Sponsors under this Agreement
      (save for the obligations under clauses 3.3 and 3.4 and such other
      obligations hereunder which fall due for performance before Admission) are
      conditional on:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                the release
      of the Press Announcement via a Regulatory Information Service by 8.00
      a.m. on the Effective Date;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                there having
      occurred, as at Admission, no material default or breach by the Company of
      the terms of this Agreement;

              

      

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (C)

              	
                the New
      Shares being validly created under applicable law and forming part of the
      Company’s authorised but unissued share
capital;

              

      

       

      
        	
                 
      

              	
                (D)

              	
                the Directors
      being duly authorised under applicable law to allot and issue the New
      Shares in accordance with the terms of this
  Agreement;

              

      

       

      
        	
                 
      

              	
                (E)

              	
                the Company
      having obtained such approvals, authorisations, permits and consents as
      may be required by any government, state or other regulatory body and all
      necessary filings having been made and all necessary waiting periods
      having expired, in each case in any part of the world and as a consequence
      of the actions contemplated by this
Agreement;

              

      

       

      
        	
                 
      

              	
                (F)

              	
                HM Treasury
      having obtained such approvals, authorisations, permits and consents as
      may be required by any governmental, state or other regulatory body in any
      part of the world and all necessary filings having been made and all
      necessary waiting periods having expired, in each case as a consequence of
      the issue of New Shares and redemption of the Preference Shares
      contemplated by this Agreement;

              

      

       

      
        	
                 
      

              	
                (G)

              	
                each Warranty
      in Part I of Schedule 3 of this Agreement being true and accurate in all
      material respects and not misleading in any material respect as at the
      date of this Agreement and remaining true and accurate in all material
      respects and not misleading in any material respect on the Posting Date,
      at such time as a Supplementary Prospectus shall be issued in accordance
      with this Agreement before Admission, at each Time of Sale (if any) and
      immediately prior to Admission, in each case by reference to the facts and
      circumstances then existing;

              

      

       

      
        	
                 
      

              	
                (H)

              	
                each Warranty
      in Part II of Schedule 3 of this Agreement being true and accurate in all
      material respects and not misleading in any material respect on the
      Posting Date and remaining true and accurate in all material respects and
      not misleading in any material respect, at such time as a Supplementary
      Prospectus shall be issued in accordance with this Agreement before
      Admission, at each Time of Sale (if any) and immediately prior to
      Admission, in each case by reference to the facts and circumstances then
      existing;

              

      

       

      
        	
                 
      

              	
                (I)

              	
                there being,
      in the opinion of HM Treasury (acting in good faith) no Material Adverse
      Effect;

              

      

       

      
        	
                 
      

              	
                (J)

              	
                there being
      no contracts or arrangements to which the Company or any member of the
      Group are party which would become capable of being terminated by a party
      thereto (other than a member of the Group) or would permit such a party to
      exercise a right against a member of the Group or may otherwise give rise
      to material adverse consequences for the Group as a whole, in each case as
      a result of the issue of New Shares and/or redemption of the Preference
      Shares contemplated by this Agreement, in each case where this or any
      other consequences thereof would be, or would be reasonably likely to be,
      material in the context of the business of the Group or the Placing and
      Open Offer, the redemption of the Preference Shares or any subscription
      for New

              

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      
        Shares by HM
Treasury, Qualifying Shareholders or Placees, Admission or post-Admission
dealings in the Ordinary Shares;

      

       

      
        	
                 
      

              	
                (K)

              	
                the delivery
      to HM Treasury and to the Joint Sponsors, as
  applicable:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                simultaneously
      with the execution of this Agreement, of the documents listed in Part I of
      Schedule 2;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                prior to
      despatch of the Circular and the publication of the Prospectus, of the
      documents listed in Part II of Schedule
2;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                at the date
      of each Supplementary Prospectus, the documents (or “bring downs” from
      such documents) listed in Part II of Schedule 2 (as applicable) requested
      by the Joint Sponsors and by HM Treasury in respect of such Supplementary
      Prospectus and dated as of such
date;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                at each Time
      of Sale, if any, the Time of Sale Documents required to be delivered at
      such Time of Sale listed in Part III of Schedule 2;
  and

              

      

       

      
        	
                 
      

              	
                (v)

              	
                immediately
      prior to Admission, of the documents listed in Part III of Schedule
      2,

              

      

       

      in
each case to the extent not already delivered and provided that HM Treasury
shall not be entitled to rely on this condition in the case of non-delivery of
any document which is not material, in the respective judgements of HM Treasury
and the Joint Sponsors, in the context of the Placing and Open Offer or the
application for Admission or the redemption of the Preference
Shares;

       

      
        	
                 
      

              	
                (L)

              	
                the GM being
      duly convened and held no later than the GM
  Date;

              

      

       

      
        	
                 
      

              	
                (M)

              	
                subject to
      applicable law (including directors’ fiduciary duties), the Directors
      recommending (without qualification and maintaining such recommendation)
      that the Company’s shareholders vote in favour of the
      Resolutions;

              

      

       

      
        	
                 
      

              	
                (N)

              	
                subject to
      applicable law, the Directors voting all Ordinary Shares held by them in
      favour of the Resolutions;

              

      

       

      
        	
                 
      

              	
                (O)

              	
                the Company's
      shareholders passing the Resolutions (without amendment) at the
      GM;

              

      

       

      
        	
                 
      

              	
                (P)

              	
                the
      Prospectus and, to the extent necessary, the Circular being approved by
      the FSA in accordance with the Prospectus Rules, the Listing Rules and
      FSMA;

              

      

       

      
        	
                 
      

              	
                (Q)

              	
                the Company
      having reached agreement with the FSA as to the redemption of the
      Preference Shares on the date of
Admission;

              

      

       

      
        	
                 
      

              	
                (R)

              	
                subject to
      satisfaction of the condition set out in clause 2.1(P), the Prospectus
      being made available to Qualifying Shareholders (other than Prohibited
      Shareholders and US Shareholders) in accordance with the Prospectus
      Rules;

              

      

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (S)

              	
                subject to
      satisfaction of the conditions set out in clause 2.1(P), the posting to
      Qualifying Shareholders (other than Prohibited Shareholders and US
      Shareholders) of the Circular and the Form of Proxy with, in the case of
      Qualifying Non-CREST Shareholders, an Application Form, in accordance with
      clause 3;

              

      

       

      
        	
                 
      

              	
                (T)

              	
                the Company
      having applied for Admission and admission of the New Shares to CREST as
      Participating Securities and all of the conditions to such admission
      having been satisfied, in each case, on or before
    Admission;

              

      

       

      
        	
                 
      

              	
                (U)

              	
                the Company
      allotting, subject only to Admission, the New Shares to the relevant
      Placees in accordance with clauses 3 and 4 or to HM Treasury (or its
      nominee) in accordance with clause
6;

              

      

       

      
        	
                 
      

              	
                (V)

              	
                the Directors
      having waived all change of control provisions set out in their respective
      service contracts which would otherwise be or have been triggered as a
      result of the redemption of the Preference Shares and/or the issue of New
      Shares contemplated by this
Agreement;

              

      

       

      
        	
                 
      

              	
                (W)

              	
                no event
      referred to in Section 87G of the FSMA arising between the time of
      publication of the Prospectus and the time of Admission and no
      Supplementary Prospectus being published by or on behalf of the Company
      before Admission which, in any of the foregoing cases, HM Treasury or the
      Joint Sponsors consider in their respective sole judgments acting in good
      faith to be (singly or in the aggregate) material in the context of the
      business of the Group, the Placing and Open Offer, the redemption of the
      Preference Shares, any subscription for New Shares by HM Treasury,
      Ordinary Shareholders or Placees or Admission or post-Admission dealings
      in the Ordinary Shares;

              

      

       

      
        	
                 
      

              	
                (X)

              	
                Admission
      occurring at or before 8.00 a.m. on 6 April 2009 (or such later time or
      date as HM Treasury may agree);

              

      

       

      
        	
                 
      

              	
                (Y)

              	
                the
      Prospectus and the Circular not containing disclosure of any fact, matter
      or circumstance material in the context of the Group or the Placing and
      Open Offer, any subscription for New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares or
      Admission or post-Admission dealings in the Ordinary Shares which has not
      previously been fairly disclosed, whether in the Press Announcement, any
      of the Previous Announcements or otherwise in writing to HM Treasury and
      to the Joint Sponsors; and

              

      

       

      
        	
                 
      

              	
                (Z)

              	
                HM Treasury,
      having consulted with the Company, being satisfied, as at 27 February
      2009, that the arrangements contemplated by this Agreement continue to be
      proportionate and appropriate for the maintenance of the financial
      stability of the Company, each in the context of the general economic and
      market conditions then prevailing.

              

      

       

      
        	
                2.2

              	
                Subject to
      the fiduciary duties of the Directors, the Company shall use all
      reasonable endeavours to procure the fulfilment of the conditions set out
      in clause 2.1 and, where applicable, by the times and dates stated therein
      (or such later times and/or dates as

              

      

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

       

      
        HM
Treasury may agree) and shall notify HM Treasury forthwith in the event that the
Company or any of the Directors becomes aware that any of the conditions set out
in clause 2.1 has become or might reasonably be expected to
become incapable of fulfilment by the time and/or date stated in such condition
(or such later time and/or date as HM Treasury may agree) or at
all.  In addition, the Company shall provide HM Treasury with such
information as it may reasonably require to enable it to ascertain whether the
condition in clause 2.1(J) has been
satisfied.

      

       

      
        	
                2.3

              	
                Each Joint
      Sponsor shall use its reasonable endeavours to provide to the Company such
      assistance as the Company shall reasonably request in connection with the
      procedural steps required for the performance of the obligations of the
      Company set out in clauses 2.1(P), 2.1(T) and
  2.1(X).

              

      

       

      
        	
                2.4

              	
                Subject to
      clause 2.7, HM Treasury shall be entitled, in its absolute discretion and
      upon such terms as it shall think fit, to waive fulfilment of all or any
      of the conditions set out in clause 2.1 (other than clauses 2.1(C) to
      2.1(E), 2.1(O), 2.1(P) and 2.1(X)) or to extend the time provided for
      fulfilment of any of the conditions set out in clause 2.1 in respect of
      all or any part of the performance
thereof.

              

      

       

      
        	
                2.5

              	
                The Company
      shall be entitled to waive fulfilment of the condition set out in clause
      2.1(E).

              

      

       

      
        	
                2.6

              	
                If the
      condition set out in clause 2.1(E) is not satisfied at the time at which
      all other conditions set out in clause 2.1 are satisfied or, to the extent
      permitted, waived, the parties shall treat such condition as waived (and
      the Company shall be deemed to have waived such condition) if the relevant
      matter in respect of which the condition has not been satisfied is not
      likely to lead to material consequences for the Company or the Directors
      and is not material in the context of the Placing, the Open Offer, the
      redemption of the Preference Shares, Admission or post-Admission dealings
      in the Ordinary Shares and, in all cases, for the avoidance of doubt,
      taking account of the financial circumstances of the
    Company.

              

      

       

      
        	
                2.7

              	
                If:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                any of the
      conditions set out in clause 2.1 (other than clause 2.1(Z)) are not
      fulfilled or, if capable of waiver pursuant to clause 2.4 or clause 2.5,
      waived, or treated as waived pursuant to clause 2.6, by the time and/or
      date specified therein (or such later time and/or date as HM Treasury may
      agree); and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                HM Treasury
      does not consider it to be necessary that the arrangements contemplated by
      this Agreement proceed to completion in order to maintain the financial
      stability of the United Kingdom,

              

      

       

      or

       

      
        	
                 
      

              	
                (C)

              	
                the condition
      set out in clause 2.1(Z) is not fulfilled as at 27 February
      2009,

              

      

       

      then on notice from
HM Treasury to the Joint Sponsors and the Company, the Joint Sponsors shall, on
behalf of the Company, withdraw any application made to the FSA and/or the
London Stock Exchange and/or Euronext in connection with Admission, this

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

       

      Agreement shall
cease and determine and no party to this Agreement shall have any claim against
any other party to this Agreement for costs, damages, compensation or otherwise
except as provided in clause 2.9.

       

      
        	
                2.8

              	
                Without
      prejudice to the rights of HM Treasury and the Joint Sponsors under clause
      13, if any of the conditions set out in clause 2.1 are not fulfilled or,
      if capable of waiver pursuant to clause 2.4 or clause 2.5, waived, or
      treated as waived pursuant to clause 2.6, by the date and/or time
      specified herein (or such later time as HM Treasury may agree) and if HM
      Treasury does consider it necessary that the arrangements contemplated by
      this Agreement proceed to completion in order to maintain the financial
      stability of the United Kingdom, HM Treasury shall treat as waived any
      outstanding conditions in clause 2.1 (other than any condition referred to
      as not being waivable by HM
Treasury).

              

      

       

      
        	
                2.9

              	
                Where this
      Agreement has terminated pursuant to clause
2.7:

              

      

       

      
        	
                 
      

              	
                (A)

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

              

      

       

      
        	
                 
      

              	
                (B)

              	
                the Company
      shall pay any commissions, fees and expenses as are payable in such
      circumstance under and in accordance with clauses 8.1 and 8.2;
      and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                the
      provisions of this clause 2.9 and clauses 1, 8, 9.1, 9.2, 9.3, 9.4, 9.6,
      9.9, 10, 11, 12, 14, 15, 16, 17, 18 and 19 shall remain in full force and
      effect.

              

      

       

      
        	
                2.10

              	
                HM Treasury
      and the Company shall use all reasonable endeavours to procure that, by no
      later than Admission, all approvals, authorisations and consents as may be
      required from any government, state or other regulatory body shall have
      been obtained in order that the conditions set out in clauses 2.1(E) and
      2.1(F) may be satisfied.  The Company and HM Treasury shall
      co-operate with each other (at the cost of the Company) in order that the
      conditions set out in clauses 2.1(E) and 2.1(F) may be satisfied, which
      co-operation shall include the
Company:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                promptly
      providing to HM Treasury and to HM Treasury’s lawyers and other advisers
      where appropriate, any necessary information and documents reasonably
      required for the purpose of obtaining such approvals, authorisations,
      permits and consents and making such necessary
  filings;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                promptly
      notifying HM Treasury or HM Treasury’s lawyers and other advisers where
      appropriate, of any material communications received in the course of
      obtaining such approvals, authorisations, permits and consents and making
      such necessary filings; and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                generally
      supporting HM Treasury in obtaining such approvals, authorisations,
      permits and consents and making such necessary
  filings.

              

      

       

      
        	
                2.11

              	
                Upon
      Admission, each of the conditions set out in clause 2.1 shall, to the
      extent not fulfilled, be deemed to have been fulfilled or
      waived.

              

      

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

       

      
        3.        
THE
PLACING AND OPEN OFFER AND APPOINTMENTS

      

       

      
        	
                3.1

              	
                The Company
      hereby:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                appoints each
      of UBS and Merrill Lynch as joint sponsors in connection with the
      applications for Admission and, if required by the UK Listing Authority,
      the publication of the Circular and as joint bookrunners and placing
      agents in connection with the Placing and Open Offer and each of UBS and
      Merrill Lynch accepts such
appointments;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                confirms that
      such appointments confer on each of the Joint Sponsors all powers,
      authorities and discretions on behalf of the Company which are necessary
      for or incidental to, the performance of its function as Joint Sponsor,
      joint bookrunner and placing agent to the Placing and Open Offer
      (including the power to appoint sub-agents or to delegate the exercise of
      any of its powers, authorities or discretions to such persons as it may
      think fit); and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                agrees to
      ratify and approve all documents, acts and things which each of the Joint
      Sponsors shall lawfully do in the exercise of such appointments, powers,
      authorities and discretions.

              

      

       

      
        	
                3.2

              	
                The Company
      hereby agrees, subject always to clause 5.1, to invite Qualifying
      Shareholders (who are not Prohibited Shareholders or US Shareholders) by
      means of the Prospectus and (in the case of Qualifying Non CREST
      Shareholders who are not Prohibited Shareholders or US Shareholders) the
      Application Form to apply to subscribe for the New Shares at the Issue
      Price and otherwise on the terms and conditions set out
      therein.  The Company shall procure that under the terms of the
      Placing and Open Offer Qualifying Shareholders (other than Prohibited
      Shareholders or US Shareholders) shall be entitled (i) to subscribe for
      their pre-emptive entitlements, and, (ii) to the extent reasonably
      practicable (and provided always that such Qualifying Shareholders who are
      not Prohibited Shareholders or US Shareholders are treated equally), and
      to the extent that such pre-emptive entitlements are not taken up by other
      Qualifying Shareholders (who are not Prohibited Shareholders or US
      Shareholders), to apply to subscribe for additional New Shares (either in
      their capacity as Qualifying Shareholders or, if such structure is not
      reasonably practicable, as Placees whose application for additional New
      Shares the parties hereby agree will be allocated in full to the extent
      possible, and failing which will be scaled back on a pro rata
      basis).

              

      

       

      
        	
                3.3

              	
                Subject to
      the next following sentence, each of the Joint Sponsors hereby agrees
      severally (and not jointly or jointly and severally) and in reliance on
      the representations, warranties and undertakings of the Company set out in
      this Agreement, as agent of the Company, to use reasonable endeavours to
      procure Placees to subscribe for the New Shares on such terms and
      conditions as may be agreed upon by HM Treasury, including the Treasury
      Solicitor, and at a price not lower than the Issue Price, subject to a
      right of clawback as a result of the New Shares being subscribed for under
      the Open Offer and otherwise upon and subject to the terms and conditions
      in the Placing Letters and on the basis of the information in the other
      Placing Documents, it being understood that if having used such reasonable
      endeavours the Joint Sponsors are unable to procure Placees, or if any
      Placees who are so procured fail to meet their payment obligations, for
      all or any of the New Shares, the Joint Sponsors shall not themselves
      be

              

      

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

       

      
        obliged to
subscribe for such New Shares which shall be Residual Shares to be taken up
solely by HM Treasury in accordance with clause 6.3.  Any obligation
of each of the Joint Sponsors to use reasonable endeavours to procure Placees
pursuant to the preceding sentence shall not apply until publication of the
Prospectus in accordance with the provisions of this Agreement, provided that
each of the Joint Sponsors shall be permitted to endeavour to procure Placees
prior to such publication.

      

       

      
        	
                3.4

              	
                Subject to
      compliance with this clause 3 and with the restrictions in clause 5, each
      of UBS and Merrill Lynch shall have discretion to procure Placees in the
      manner and otherwise as it thinks fit in compliance, in all material
      respects, with applicable laws as are customarily complied with by banks
      of international reputation, including the last time at which Placing
      Letters may be despatched, allocations pursuant thereto may be made and
      acceptances pursuant thereto
  received.  

              

      

       

      
        	
                3.5

              	
                UBS and
      Merrill Lynch will procure that a schedule is delivered to the Company (or
      the Registrar on behalf of the Company) and to HM Treasury no later than
      5 p.m. on the second Business Day following the Closing Date
      following completion of the procedure set out in clause 3.4 showing the
      names and registration details of Placees allocated Non-Accepted Shares
      (and the number of New Shares comprised in such allocations) and shall
      specify whether such shares are to be issued in certificated or
      uncertificated form together with details of (and the number of New Shares
      comprised in) the proposed number of Residual Shares to be subscribed for
      by HM Treasury (or its nominee) pursuant to clause 6.3 (the "Placing
      Schedule").  HM Treasury, the Company and the Joint
      Sponsors will consult each other in respect of, and agree a final version
      of, the Placing Schedule within one Business Day of the date of its
      delivery pursuant to this clause
3.5.

              

      

       

      
        	
                3.6

              	
                Without
      prejudice to the Joint Sponsors' obligations under Chapter 8 of the
      Listing Rules, the Company acknowledges and agrees that neither of the
      Joint Sponsors nor HM Treasury is responsible for and has not authorised
      and will not authorise the contents of any Issue Document and that neither
      of the Joint Sponsors nor HM Treasury shall be responsible for verifying
      the accuracy, completeness or fairness of any information in any of the
      Issue Documents (or any supplement or amendment to any of the
      foregoing).

              

      

       

      
        	
                3.7

              	
                The Company
      consents to each Joint Sponsor disclosing to the FSA at any time before or
      after Admission, any information that such Joint Sponsor is required to
      disclose to satisfy its obligations as a sponsor under the Listing Rules
      and/or the DTRs provided that, where legally permitted and practicable,
      such Joint Sponsor notifies the Company prior to making, and consults as
      to the timing and manner of, such
disclosure.

              

      

       

      
        	
                3.8

              	
                The Company
      undertakes that it will appoint a receiving agent to act as registrar and
      receiving agent in connection with the Placing and Open Offer on terms
      acceptable to HM Treasury and in particular
  that:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                until
      Admission, all proceeds of subscriptions for New Shares received from
      Ordinary Shareholders and Placees pursuant to the Placing and Open Offer
      will be held for the benefit of the relevant Ordinary Shareholders and
      Placees (including, if relevant, HM Treasury) under the Placing and Open
      Offer, in proportion to the amounts they have each
  paid;

              

      

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (B)

              	
                on and after
      Admission, to the extent that such amounts are to be used to subscribe for
      the New Shares, such amounts will be held for the benefit of the Company,
      such amount to be used solely for the purpose of redeeming the Preference
      Shares in accordance with the terms of this agreement (including an amount
      equal to the Preference Share Dividend) and paying the commissions due to
      HM Treasury in terms of clauses 8.1(A) and 8.1(B);
  and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                immediately
      upon redemption of the Preference Shares and until completion of the
      transfer of such amount to HM Treasury, such amount will be held on trust
      for the benefit of HM Treasury,

              

      

       

      and that the
Receiving Agent will be admitted as registrar and receiving agent in respect of
CREST. The Company shall not unreasonably refuse consent to executing such
documents and doing such things as HM Treasury may reasonably require to ensure
that amounts received by the Receiving Agent in connection with the Placing and
Open Offer are applied to redeem the Preference Shares in accordance with the
terms of this agreement (including an amount equal to the Preference Share
Dividend) and to pay the commissions due to HM Treasury in terms of clauses
8.1(A) and 8.1(B) on the date of Admission.

       

      
        	
                3.9

              	
                The Company
      shall give all such assistance and provide all such information as each of
      the Joint Sponsors may reasonably require for the making and
      implementation of the Placing and Open Offer and will do (or procure to be
      done) all such things and execute (or procure to be executed) all such
      documents as may be reasonably necessary or desirable to be done or
      executed by the Company or by its officers, employees or agents in
      connection therewith.

              

      

       

      
        	
                3.10

              	
                The Company
      undertakes that it shall release the Press Announcement to a Regulatory
      Information Service at, or as soon as practicable after, 7.00 a.m. on the
      Effective Date.

              

      

       

      
        	
                3.11

              	
                The Company
      undertakes to:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                make an
      application (within the meaning of and for the purposes of the Prospectus
      Rules) to the FSA for the approval of the Prospectus and, to the extent
      required, the Circular; and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                apply to the
      FSA, to the London Stock Exchange and to Euronext for Admission and
      further undertakes to provide such information, supply and/or execute such
      documents, pay such fees, give such undertakings and do all such acts and
      things as may be required (a) by the UK Listing Authority and the
      London Stock Exchange for the purposes of obtaining formal approval of the
      Circular (to the extent required) and the Prospectus, any Supplementary
      Prospectus and obtaining Admission, and (b) to comply with the
      Listing Rules, the Prospectus Rules, the Admission and Disclosure
      Standards, FSMA and the Companies Acts, and (c) by the UK Listing
      Authority and/or the Netherlands Authority for the Financial Markets for
      the passporting of the Prospectus into the Netherlands in accordance with
      the NFSA, and (d) by Euroclear for the purpose of obtaining permission for
      the admission of the New Shares as Participating Securities in CREST and
      (e) by the FSA, the London Stock Exchange or Euronext, in each case to
      obtain the grant of such Admission. Subject to the fiduciary duties of
      the

              

      

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

       

      
        Directors, the
Company will use all reasonable endeavours to obtain the grant of Admission
(subject only to the allotment of the New Shares) by no later than 8.00 a.m. on
6 April 2009 (or such later time or date as HM Treasury may agree in
writing).

      

       

      
        	
                3.12

              	
                The Company
      undertakes that it shall not include any reference to HM Treasury or the
      Joint Sponsors in any of the Issue Documents without the prior written
      consent of HM Treasury or the Joint Sponsors, as
    applicable.

              

      

       

      
        	
                3.13

              	
                Subject to
      obtaining the approval of the Prospectus (and of the Circular, but only to
      the extent required) by the FSA and having issued a passporting statement
      to the Netherlands Authority for the Financial Markets and such other
      regulators as may be appropriate, the Company shall procure
      that:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                the Circular
      and Forms of Proxy are posted to all Qualifying Shareholders (in each case
      other than Prohibited Shareholders and US Shareholders) on the Posting
      Date, and the Prospectus is made available to Qualifying Shareholders (in
      each case other than Prohibited Shareholders and US Shareholders) in
      accordance with the Prospectus Rules and the NFSA, in each case subject to
      clause 5;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                a copy of
      each of the Prospectus and the Circular is filed with the FSA pursuant to
      the Prospectus Rules and the Listing Rules
  respectively;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                copies of the
      Prospectus, together with any other required documents, are made available
      to the public by or on behalf of the Company in accordance with the
      Prospectus Rules;

              

      

       

      
        	
                 
      

              	
                (D)

              	
                Application
      Forms are posted to all Qualifying Non-CREST Shareholders (other than
      Prohibited Shareholders and US Shareholders) with the Prospectus and
      Circular; and

              

      

       

      
        	
                 
      

              	
                (E)

              	
                the Open
      Offer Entitlements of Qualifying CREST Shareholders (other than Prohibited
      Shareholders and US Shareholders) are credited to their respective stock
      accounts on the first Dealing Day after the Ordinary Shares go “ex” the
      entitlement to apply under the Open
Offer.

              

      

       

      
        	
                3.14

              	
                As soon as
      practicable after the Posting Date, the Company shall procure delivery to
      Euroclear of security application forms in a form acceptable to HM
      Treasury and to the Joint Sponsors, acting reasonably, in respect of the
      Open Offer Entitlements and the New Shares and the Company undertakes to
      use reasonable endeavours to obtain permission for the admission of each
      of the Open Offer Entitlements and the New Shares as a Participating
      Security in CREST.

              

      

       

      
        	
                3.15

              	
                On the
      Posting Date, prior to publication of the Prospectus, and (to the extent
      reasonably requested) prior to the publication of each Supplementary
      Prospectus, the Company shall deliver or procure there are delivered to
      the Joint Sponsors and to HM Treasury those documents listed in Part II of
      Schedule 2.

              

      

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.16

              	
                At or with
      respect to the date of any Time of Sale, the Company shall deliver or
      procure there are delivered to the Joint Sponsors and to HM Treasury the
      documents listed in Part III of Schedule
2.

              

      

       

      
        	
                3.17

              	
                The Company
      authorises the Joint Sponsors to date the Enablement Letter and deliver it
      to Euroclear.

              

      

       

      
        	
                3.18

              	
                Subject
      always to the fiduciary duties of the Directors, the Company shall procure
      that the GM is duly convened and held no later than 1 April 2009 and that
      the Resolutions are proposed at it.

              

      

       

      
        	
                3.19

              	
                Subject to
      clause 3.20, neither the Placing and Open Offer nor any of its terms and
      conditions shall be varied, extended, amended or withdrawn without the
      prior written consent of HM Treasury, except as required by any applicable
      law or regulation.

              

      

       

      
        	
                3.20

              	
                If at any
      time between the Posting Date and the Closing Date: (i) any event shall
      have occurred as a result of which the Prospectus, as amended or
      supplemented from time to time, would include an untrue statement of a
      material fact or omit to state any material fact necessary in order to
      make the statements therein, in the light of the circumstances under which
      they were made when such document is delivered, not misleading, or if for
      any other reason, including compliance with Section 87G of FSMA, it shall
      be necessary to amend or supplement the Prospectus, the Company will
      (without prejudice to the rights of HM Treasury and the Joint Sponsors
      under this Agreement) promptly:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                notify HM
      Treasury and the Joint Sponsors of the relevant
    circumstances;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                consult with
      HM Treasury and the Joint Sponsors in considering any requirement to
      publish a Supplementary Prospectus;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                consult with
      HM Treasury and the Joint Sponsors as to the contents of any Supplementary
      Prospectus and comply with all reasonable requirements of in relation
      thereto; and

              

      

       

      
        	
                 
      

              	
                (D)

              	
                publish such
      Supplementary Prospectus in such manner as may be required by the
      Prospectus Rules.

              

      

       

      
        	
                3.21

              	
                Immediately
      prior to Admission the Company shall deliver or procure that there are
      delivered to the Joint Sponsors and to HM Treasury those documents listed
      in the Part III of Schedule 2.

              

      

       

      
        	
                3.22

              	
                The Company
      shall procure (to the extent that it lies in its power to do so) to be
      communicated or delivered to the Joint Sponsors all such information and
      documents (signed by the appropriate person where so required) as the
      Joint Sponsors may reasonably require to enable them to discharge their
      obligations hereunder and pursuant to or in connection with obtaining
      Admission, the Placing and Open Offer or as may be required to comply with
      the requirements of the FSMA, the FSA or the London Stock
      Exchange.

              

      

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.23

              	
                The Company
      confirms to the Joint Sponsors and to HM Treasury that a meeting or
      meetings of the Board has been held (and/or, in the case of (C), (E) and
      (F) below, undertakes to hold such a meeting) which has (or will have, as
      the case may be):

              

      

       

      
        	
                 
      

              	
                (A)

              	
                authorised
      the Company to enter into and perform its obligations under this
      Agreement;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                approved the
      form and release of the Press
Announcement;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                approved the
      form of the Circular, Prospectus, and the Form of Proxy and authorised and
      approved the publication of the Circular, Prospectus, Form of Proxy, each
      of the other Issue Documents and all other documents connected with the
      Placing and Open Offer, the redemption of the Preference Shares and
      Admission, as appropriate;

              

      

       

      
        	
                 
      

              	
                (D)

              	
                approved the
      making of the Placing and Open Offer and the redemption of the Preference
      Shares; 

              

      

       

      
        	
                 
      

              	
                (E)

              	
                approved the
      making of the applications for Admission;
and

              

      

       

      
        	
                 
      

              	
                (F)

              	
                authorised
      (or authorise, as the case may be) all necessary steps to be taken by the
      Company in connection with each of the above
  matters.

              

      

       

      
        	
                3.24

              	
                The Company
      irrevocably authorises each of the Joint Sponsors to give to the
      Registrars and/or Euroclear any instructions consistent with this
      Agreement and/or the Issue Documents that it reasonably considers to be
      necessary for, or incidental to, the performance of its functions as joint
      sponsor or joint bookrunner or placing agent (as the case may
      be).

              

      

       

      
        	
                3.25

              	
                The Company
      acknowledges that the Joint Sponsors’ responsibilities as sponsors
      pursuant to the Listing Rules are owed solely to the FSA and that agreeing
      to act as sponsor does not of itself extend any duties or obligations to
      any one else, including the
Company.

              

      

       

      
        4.        
ALLOTMENT
OF THE NEW SHARES, CONSIDERATION AND REGISTRATION

      

       

      
        	
                4.1

              	
                The Company
      shall, prior to Admission, pursuant to a resolution of the Board, allot,
      conditional only on Admission, the New Shares to the Open Offer Acceptors
      in each case in accordance with the terms of the Open Offer
      Documents.

              

      

       

      
        	
                4.2

              	
                The Company
      shall, in relation to the Placing, as soon as reasonably practicable
      following receipt of the Placing Schedule and in any event (subject only
      to such receipt) prior to
Admission:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                as regards
      the New Shares required by Placees to be certificated shares, pursuant to
      a resolution of the Board, allot, conditional only upon Admission, such
      New Shares as certificated shares, subject to the prior consent of HM
      Treasury and to the terms of the Placing Documents, to the Placees of such
      New Shares in the proportions set out in the Placing Schedule;
      and

              

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (B)

              	
                as regards
      the New Shares which are required by Placees to be uncertificated shares,
      pursuant to a resolution of the Board, allot, conditional only upon
      Admission, such New Shares as uncertificated shares, subject to the prior
      consent of HM Treasury and to the terms of the Placing
      Documents:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                in the case
      of Placees procured by UBS, to such CREST account of such person as will
      be notified by UBS to the Company no later than five Business Days prior
      to Admission, such person to hold such New Shares as nominee for such
      Placees; and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                in the case
      of Placees procured by Merrill Lynch, to such CREST account of such person
      as will be notified by Merrill Lynch to the Company no later than five
      Business Days prior to Admission, such person to hold such New Shares as
      nominee for such Placees.

              

      

       

      
        	
                4.3

              	
                On the date
      of Admission, and subject to compliance by the Company with the provisions
      of clauses 4.1 and 4.2:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                subject to
      clause 3.3, UBS shall pay or procure payment to the Receiving Agent (on
      behalf of the Company) of an amount equal to the aggregate amount it has
      received from Placees procured by UBS in terms of this Agreement (if any);
      and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                subject to
      clause 3.3, Merrill Lynch shall pay or procure payment to the Receiving
      Agent (on behalf of the Company) of an amount equal to the aggregate
      amount is has received from Placees procured by Merrill Lynch in terms of
      this Agreement (if any).

              

      

       

      For the avoidance
of doubt, UBS and Merrill Lynch will be under no obligation to pay or procure
payment to the Receiving Agent of an amount in excess of the amount received by
them from Placees.

       

      
        	
                4.4

              	
                Following
      payment of the consideration to the Receiving Agent (on behalf of the
      Company) in accordance with clause 4.3, the Company shall procure that the
      Receiving Agent will, without delay on the day of
    Admission:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                effect the
      registration, without registration fee, of the persons referred to in
      clauses 4.1 and 4.2(B) above and, as appropriate, HM Treasury (or its
      nominee) in accordance with clause 6.3, as the holders of the relevant New
      Shares and shall procure that such New Shares are credited to any relevant
      accounts as specified in CREST (without charging any administration fee);
      and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                effect the
      registration, without registration fee, of the Placees referred to in
      clause 4.2(A) in the register of members and, to issue definitive
      certificates.

              

      

       

      
        	
                4.5

              	
                The New
      Shares will, as from the date when they are issued, rank pari passu in all
      respects with, and be identical to, the Ordinary Shares then in issue and
      will rank in full for all dividends and other distributions declared, made
      or paid on the Ordinary Shares after such date of issue.  The
      New Shares shall be allotted and issued free from all Adverse
      Interests.

              

      

       

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

       

      
        5.       
 OVERSEAS
SHAREHOLDERS

      

       

      
        	
                5.1

              	
                The Company
      shall procure that no Application Forms and no copies of the Prospectus
      (or any Supplementary Prospectus) shall be posted to Prohibited
      Shareholders and that no Open Offer Entitlements are credited to stock
      accounts in CREST of Prohibited Shareholders unless they have supplied the
      Company with an address in the United Kingdom for the giving of notices to
      them.

              

      

       

      
        	
                5.2

              	
                The
      Application Forms, together with the Prospectus and any Supplementary
      Prospectus shall specify, to the reasonable satisfaction of the Joint
      Sponsors, such procedures as to ensure that no New Shares are credited to
      the account or for the benefit of any person located in the United States
      unless they have established to the reasonable satisfaction of the Company
      that, in the case of US Shareholders, they are qualified institutional
      buyers ("QIBs") as
      defined in Rule 144A under the Securities Act or accredited investors as
      defined in Rule 501 under the Securities Act, or in the case of Prohibited
      Shareholders, they may take up their entitlements to the New Shares in
      accordance with an applicable exemption from local securities
      laws.

              

      

       

      
        	
                5.3

              	
                The Company
      shall not without the written consent of the Joint Sponsors, not to be
      unreasonably withheld, make the New Shares available to the holders of
      American Depositary Shares representing the Ordinary Shares with respect
      to any Ordinary Shares underlying such holder’s American Depositary
      Shares.

              

      

       

      
        	
                5.4

              	
                Each of the
      Joint Sponsors (severally and not jointly or jointly and severally) and
      the Company acknowledges and agrees that offers and sales of New Shares
      will be made as described in the Prospectus and in accordance with the
      terms of this Agreement.  The rights of Prohibited Shareholders
      and US Shareholders to participate in the Open Offer and Placing shall be
      limited as set out in the Prospectus and in this
  Agreement.

              

      

       

      
        	
                5.5

              	
                It is agreed
      and understood that the New Shares do not meet the eligibility requirements
      of Rule 144A under the Securities Act. 

              	
              

      

       

      
        	
                5.6

              	
                Each of the
      Company and the Joint Sponsors (severally and not jointly or jointly and
      severally) confirms and agrees that except in relation to each Member
      State of the EEA which has implemented the Prospectus Directive (each a
      “Relevant Member
      State”), none of the New Shares have been or will be offered to the
      public for the purposes of the Prospectus Directive in that Relevant
      Member State prior to the publication of a prospectus in relation to the
      New Shares which has been approved by the competent authority in that
      Relevant Member State or, where appropriate, approved in another Relevant
      Member State and notified to the competent authority in that Relevant
      Member State, all in accordance with the Prospectus Directive,
      except:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                to legal
      entities which are authorised or regulated to operate in the financial
      markets or, if not so authorised or regulated, whose corporate purpose is
      solely to invest in securities;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                to any legal
      entity which has two or more of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                an average of
      at least 250 employees during the last financial
  year;

              

      

       

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (ii)

              	
                a total
      balance sheet of more than €43,000,000;
and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                an annual net
      turnover of more than €50,000,000, as shown in its last annual or
      consolidated accounts; or

              

      

       

      
        	
                 
      

              	
                (C)

              	
                in any other
      circumstances which do not require the publication by the Company of a
      prospectus pursuant to Article 3 of the Prospectus
    Directive,

              

      

       

      provided that no
such offer of any New Shares shall result in a requirement for the publication
of a prospectus pursuant to Article 3 of the Prospectus Directive or any measure
implementing the Prospectus Directive in the Relevant Member State.

       

      For the purposes of
this provision, the expression an "offer of New Shares to the
public" in relation to any New Shares in any Relevant Member State means
the communication in any form and by any means of sufficient information on the
terms of the offer and the New Shares to be offered so as to enable an investor
to decide to purchase or subscribe for the New Shares, as the same may be varied
in that Member State by any measure implementing the Prospectus Directive in
that Member State.

       

      
        	
                5.7

              	
                Each of the
      Company, HM Treasury and the Joint Sponsors (severally and not jointly or
      jointly and severally) acknowledges and agrees that the New Shares and the
      Open Offer Entitlements have not been and will not be registered under the
      Securities Act and may not be offered or sold except in accordance with
      Rule 903 of Regulation S, to QIBs or to certain pre-identified US
      employees of the Company who are accredited investors (as defined in Rule
      501 under the Securities Act) only if such employees have executed and
      delivered to the Company an investor letter in a form reasonably
      satisfactory to the Joint Sponsors and HM Treasury, in each case pursuant
      to an exemption from, or in a transaction not subject to, the registration
      requirements of the Securities Act.

              

      

       

      
        	
                5.8

              	
                Each of the
      Company, HM Treasury and the Joint Sponsors (severally and not jointly or
      jointly and severally) represents, warrants and agrees that
      it:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                has not
      engaged and will not engage in any directed selling efforts (within the
      meaning of Regulation S) in the United States with respect to the New
      Shares;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                has not
      offered or sold and will not offer or sell New Shares in the United States
      by means of any form of general solicitation or general advertising within
      the meaning of Rule 502(c) under the Securities Act or in a manner
      involving a public offering within the meaning of Section 4(2) of the
      Securities Act;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                has only
      solicited and will only solicit subscriptions of and has only offered or
      sold and will only offer or sell the New
Shares:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                to persons
      that it reasonably believes are QIBs pursuant to an exemption from, or in
      a transaction not subject to, the registration requirements of the
      Securities Act, ("QIB
      Purchasers") and only if such QIB Purchasers have executed and
      delivered an investor letter in the form of Schedule 5 of this Agreement,
      which in the case of the Joint Sponsors does not need to be until the
      delivery of any New Shares to any such QIB
  Purchasers;

              

      

       

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (ii)

              	
                to certain
      pre-identified US employees of the Company who are accredited investors
      (as defined in Rule 501 under the Securities Act) only if such employees
      have executed and delivered to the Company an investor letter in a form
      reasonably satisfactory to the Joint Sponsors in accordance with an
      applicable exemption from local securities
laws;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                in reliance
      upon and in compliance with Regulation S;
or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                to Prohibited
      Shareholders in accordance with an applicable exemption from local
      securities laws and in reliance upon and in compliance with Regulation S;
      and

              

      

       

      
        	
                 
      

              	
                (D)

              	
                has complied
      and will comply with all applicable provisions of FSMA and all other
      applicable securities laws with respect to anything done by it in relation
      to any New Shares in, from or otherwise involving the United
      Kingdom.

              

      

       

      
        	
                5.9

              	
                The Company
      acknowledges and agrees that it has not, directly or
      indirectly:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                made nor will
      it make offers or sales of any
security;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                solicited nor
      will it solicit offers or sales of any
security;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                otherwise
      negotiated nor will it negotiate in respect of any
    security;

              

      

       

      
        	
                 
      

              	
                (D)

              	
                taken nor
      will it take any other action,

              

      

       

      in
any of the foregoing cases under circumstances that would require registration
of the New Shares under the Securities Act.

       

      
        	
                5.10

              	
                For so long
      as any New Shares are "restricted securities" within the meaning of Rule
      144(a)(3) under the Securities Act, the Company will during any period in
      which it is neither subject to Section 13 or 15(d) of the Exchange Act nor
      exempt from reporting pursuant to Rule 12g3-2(b) thereunder, provide to
      any holder or beneficial owner of such restricted securities or to any
      prospective purchaser of such restricted securities designated by such
      holder or beneficial owner, upon the request of such holder, beneficial
      owner or prospective purchaser, the information required to be provided by
      Rule 144A(d)(4) under the Securities Act; this undertaking is also for the
      benefit of the holders and beneficial owners from time to time of such
      restricted securities and prospective purchasers designated by such
      holders or beneficial owners from time to
time.

              

      

       

      
        	
                5.11

              	
                The Company
      shall ensure that each of its Affiliates and each person acting on behalf
      of the Company or its Affiliates (other than the Joint Sponsors and their
      respective Affiliates and persons acting on behalf of any of the Joint
      Sponsors and their respective Affiliates) has complied and will comply
      with clauses 5.6, 5.7, 5.8 and 5.9.

              

      

       

      
        	
                5.12

              	
                Each of the
      Joint Sponsors shall ensure that each of its Affiliates and each person
      acting on its behalf or on behalf of its Affiliates has complied and will
      comply with clauses 5.6, 5.7 and
5.8.

              

      

       

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

       

      
        6.        
HM
TREASURY SUBSCRIPTION

      

       

      
        	
                6.1

              	
                For the
      purposes of this clause 6:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                "Accepted Shares" shall
      mean any New Shares in respect of which an Acceptance has been made before
      11.00 a.m. on the Closing Date;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                "Non-Accepted Shares"
      shall mean any New Shares which are not Accepted Shares together with any
      New Shares which are treated as Non-Accepted Shares pursuant to clauses 6.1(C);
and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                the Company
      shall, with the consent of HM Treasury, be entitled to treat as
      Non-Accepted Shares:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                any New
      Shares comprised in an Acceptance which has been validly rejected by the
      Company, with the consent of HM Treasury, not later than 2.00 p.m. on the
      Closing Date in accordance with the terms of the Open Offer, by reason of
      insufficient evidence as to identity having been received by that time in
      accordance with the procedures maintained by the Registrars under the
      Money Laundering Regulations 2007;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                any New
      Shares comprised in an Acceptance which has been validly withdrawn
      pursuant to the rights of investors to withdraw acceptances in accordance
      with Section 87Q of FSMA;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                any New
      Shares comprised in an Acceptance in respect of which cleared payment has
      not been received by 5.00 p.m. on the third Business Day following the
      Closing Date (the “Relevant Time”);
      and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                any New
      Shares comprised in any other Acceptance which the Company, with the
      consent of HM Treasury, has elected not later than 2.00 p.m. on the
      Closing Date to treat as invalid, in accordance with the terms of the Open
      Offer.

              

      

       

      
        	
                6.2

              	
                Without
      prejudice to clause 8, if there are no Non-Accepted Shares, obligations
      with regards to Non-Accepted Shares under this clause 6 will
      cease.

              

      

       

      
        	
                6.3

              	
                If by the
      Relevant Time there are Non-Accepted Shares for which no Placees have been
      arranged and consented to by HM Treasury (being “Residual Shares”) and
      subject to the conditions set out in clause 2.1 having been satisfied or,
      where permitted by clauses 2.4 to 2.6, waived or treated as waived and to
      this Agreement not having been terminated under clause 2.7 or clause 13,
      and subject to clause 8.4, HM Treasury shall itself (or shall procure that
      its nominee shall) subscribe for such Residual Shares at the Issue Price
      and on the terms, subject to the conditions and on the basis of the
      information contained in the Issue Documents and in reliance on the
      Warranties given under clause 10.

              

      

       

      
        	
                6.4

              	
                If HM
      Treasury is required to subscribe for any Residual Shares pursuant to
      clause 6.3, on Admission HM Treasury will hold the subscription monies for
      such Residual Shares for the benefit of the Company and the Company hereby
      irrevocably and unconditionally 

              

      

       

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

       

      
        authorises HM
Treasury to apply such subscription monies in redemption, pro tanto, of the
Preference Shares on the date of Admission (including an amount equal to the
Preference Share Dividend) and in paying the commissions due to HM Treasury in
terms of clauses 8.1(A) and 8.1(B).  Such application shall constitute
a complete discharge of HM Treasury’s obligations to make payment in respect of
the Residual Shares. If, following the Relevant Time, payment is dishonoured in
respect of any Acceptances previously made, the relevant New Shares shall be
dealt with in accordance with the terms of the Open Offer and shall not be
Residual Shares.

      

       

      
        	
                6.5

              	
                If HM
      Treasury (or its nominee) subscribes for New Shares pursuant to this
      clause 6, it has, in addition to any other rights and remedies it may
      have, the rights and remedies of a person acquiring New Shares on the
      basis of the Issue Documents.

              

      

       

      
        	
                6.6

              	
                The Company
      agrees that it shall, on the date of
Admission

              

      

       

      
        	
                 
      

              	
                (A)

              	
                amend the
      terms of the registration rights agreement entered into with HM Treasury
      on 1 December 2008 (the “US Registration Rights
      Agreement”) to include any New Shares subscribed for hereunder as
      “Registrable Securities” (as defined in the US Registration Rights
      Agreement); and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                enter into a
      registration rights agreement with HM Treasury in form and substance
      reasonably satisfactory to HM Treasury and on substantially the same terms
      as the US Registration Rights Agreement in order to enable the Ordinary
      Shares owned and any of the New Shares to be owned by HM Treasury to be
      sold in such jurisdictions and in such manner as HM Treasury may
      determine, including the provision of assistance with due diligence and
      such documentation (including without limitation any offering memorandum,
      whether or not a prospectus) as HM Treasury may reasonably
      require.

              

      

       

      
        	
                6.7

              	
                The Company
      confirms to the Joint Sponsors that any information which the Joint
      Sponsors may obtain as to whether or not Placees have been procured to
      take up any Non-Accepted Shares or, if any such Placees have been so
      procured, as to the identities of any such persons, is not information
      obtained by the Joint Sponsors as financial advisers to the Company.
      Accordingly (and notwithstanding any relationship which Joint Sponsors may
      have with the Company as financial adviser), the Joint Sponsors shall be
      under no obligation to disclose to the Company any of such
      information.

              

      

       

      
        	
                6.8

              	
                Without
      prejudice to the condition in clause 2.1(W), in the event that a
      Supplementary Prospectus is issued by the Company two or fewer Business
      Days prior to the Closing Date (or such later date as may be agreed
      between the parties) all references to Closing Date in this Agreement
      (other than in this clause 6.8) shall be deemed to be the date which is
      three Business Days after the date of issue of the Supplementary
      Prospectus and all dates in this Agreement referenced to the Closing Date
      shall also be extended mutatis mutandis and the obligations of the parties
      under this Agreement shall, to the extent applicable, be required to be
      performed by the relevant party by reference to such extended
      dates.

              

      

       

      
        	
                6.9

              	
                Each party
      shall execute such documents (including, without limitation, any agreement
      varying the terms of this Agreement) and do such acts and things as may be
      required

              

      

       

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

       

      
        for the purpose of
giving full effect to the extension of the timetable for the Placing and Open
Offer as contemplated by clause 6.8 above.

      

       

      
        7.        
CAPACITY

      

       

      
        	
                7.1

              	
                Any
      transaction carried out by the Joint Sponsors pursuant to clause 3.3 will
      constitute a transaction carried out in the capacity of agent at the
      request of the Company and not in respect of the Joint Sponsors' own
      account.

              

      

       

      
        	
                7.2

              	
                Notwithstanding
      that the Joint Sponsors may act as the Company's agent in connection with
      the Placing and Open Offer, the Joint Sponsors and any of their respective
      Affiliates and/or their agents may:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                receive and
      keep for their own benefit any commissions, fees, brokerage or other
      benefits paid to or received by them in connection with the Placing and
      Open Offer and shall not be liable to account to the Company for any such
      commissions, fees, brokerage or other benefits;
  and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                acting as
      investors for their own account, take-up their entitlements to, or
      subscribe for or purchase New Shares in the Open Offer and, in that
      capacity, may retain, purchase, sell or offer to sell for their own
      account(s) such New Shares and any securities of the Company or related
      investments issued otherwise than in connection with the Placing and Open
      Offer.

              

      

       

      
        	
                7.3

              	
                The Joint
      Sponsors will not be responsible for any loss or damage to any person
      arising from any insufficiency or alleged insufficiency of the amount
      obtained from the Placing or the Open Offer or from the timing of any such
      transaction.

              

      

       

      
        	
                7.4

              	
                The Company
      acknowledges and agrees that HM Treasury and the Joint Sponsors are acting
      solely pursuant to a contractual relationship with the Company on an arm’s
      length basis with respect to the Placing and Open Offer and the redemption
      of the Preference Shares (including in connection with determining the
      terms of the Placing and Open Offer) and not, in relation to the Placing
      and Open Offer or the redemption of the Preference Shares, as financial
      advisers (except, in the case of Merrill Lynch and UBS, solely on and
      subject to the strict terms of the Engagement Letters) or fiduciaries to
      the Company or any other person.  Additionally, the Company
      acknowledges that neither HM Treasury nor the Joint Sponsors are advising
      the Company or any other person as to any legal, tax, investment,
      accounting or regulatory matters in any jurisdiction.  The
      Company shall consult with its own advisors concerning such matters and
      shall be responsible for making its own independent investigation and
      appraisal of the transactions contemplated hereby and neither HM Treasury
      nor the Joint Sponsors shall have any responsibility or liability to the
      Company with respect thereto.  The Company further acknowledges
      and agrees that any review by HM Treasury and/or the Joint Sponsors (or
      their respective advisers and agents) of the Company, the Placing and Open
      Offer, the redemption of the Preference Shares, the Issue Documents and
      other matters relating thereto will be performed solely for the benefit of
      HM Treasury and/or the Joint Sponsors and shall not be on behalf of the
      Company or any other person.  This is without prejudice to any
      obligations of the Joint Sponsors under the FSA
  Rules.

              

      

       

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

       

      
        8.        
FEES,
COMMISSIONS, EXPENSES AND VAT

      

       

      
        	
                8.1

              	
                Subject to
      clause 8.2, in consideration of HM Treasury and the Joint Sponsors
      agreeing to provide their services under this Agreement, the Company shall
      pay:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                to HM
      Treasury a commission of 0.5 per cent. of the aggregate value of the New
      Shares at the Issue Price per New Share;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                subject to
      Admission occurring, to HM Treasury a further commission of 1 per cent. of
      the aggregate value of the New Shares subscribed for by Placees (including
      for the avoidance of doubt HM Treasury) at the Issue Price per New Share;
      and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                each of HM
      Treasury and the Joint Sponsors’ legal and other costs and expenses
      (properly incurred in the case of the Joint Sponsors) and the costs and
      expenses of HM Treasury’s financial advisers, in each case incurred for
      the purpose of or in connection with the Placing and Open Offer, the
      redemption of the Preference Shares or any arrangements referred to in, or
      contemplated by, this Agreement or the Placing
  Letters.

              

      

       

      
        	
                8.2

              	
                With respect
      to the fees, commissions and expenses payable pursuant to clause 8.1
      above:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                the
      commissions referred to in clause 8.1(A) shall be payable on the earlier
      of Admission and the second Business Day after the day on which this
      Agreement is terminated;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                the
      commissions referred to in clause 8.1(B) shall be payable on the date of
      Admission; and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                the expenses
      referred to in clause 8.1(C) shall be payable whether or not this
      Agreement becomes unconditional or is terminated for any reason and shall
      be payable on the earlier of Admission and the second Business Day after
      the day on which this Agreement is
terminated.

              

      

       

      
        	
                8.3

              	
                Each of the
      Joint Sponsors and the Company agree that, with the exception of the
      reimbursement of expenses referred to in clause 8.1(C) above, no fees or
      commissions shall be payable to the Joint Sponsors or either of them by
      the Company for the services to be performed by such Joint Sponsor under
      this Agreement or otherwise in connection with or in any way related to
      the transactions contemplated by this
Agreement.

              

      

       

      
        	
                8.4

              	
                HM Treasury
      may deduct the amount of the commissions and expenses payable under clause
      8.1 together with, in each case, an amount in respect of any VAT
      chargeable thereon, from any payment to be made by HM Treasury to the
      Company under clause 6.3.

              

      

       

      
        	
                8.5

              	
                The Company
      shall bear all costs and expenses of or incidental to the Placing and Open
      Offer and the redemption of the Preference Shares (including, for the
      avoidance of doubt, any applicable amounts in respect of VAT thereon, in
      accordance with clause 

              

      

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

       

      
        8.9), such expenses
including, without limitation, the fees and expenses of its professional
advisers, the cost of preparation, advertising, printing and distribution of the
Issue Documents and all other documents connected with the Placing and Open
Offer, the redemption of the Preference Shares, the Registrars' fees, the
listing fees of the FSA, any charges by CREST and the fees of the London Stock
Exchange and Euronext. The Company shall forthwith (and, in relation to VAT, in
accordance with clause 8.9) upon demand by HM Treasury or either of the Joint
Sponsors (accompanied by the relevant receipt therefor) reimburse such person
the amount of any such expenses.  This clause 8.5 shall not apply to
any Tax, provision for which is, for the avoidance of doubt, made in clauses
8.6, 8.7, 8.8 and 8.9, except to the extent provided for in clauses 8.6, 8.7,
8.8 or 8.9.  

      

       

      
        	
                8.6

              	
                The Company
      shall pay and bear any Stamp Tax which is payable or paid (whether by HM
      Treasury either of the Joint Sponsors or otherwise) in connection with the
      allotment and issue of the New Shares, the delivery of the New Shares
      and/or the subscription for the New Shares or the redemption of the
      Preference Shares in the manner contemplated by this Agreement or the
      execution, delivery, performance or enforcement of this Agreement,
      provided that this clause 8.6 shall not apply
  to:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                any Stamp Tax
      payable in respect of transfers of, or agreements to transfer, New Shares
      subsequent to any such New Shares having been subscribed for by HM
      Treasury in the manner contemplated by this Agreement;
  or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                any stamp
      duty chargeable at a rate determined under section 67 or 70 of the Finance
      Act 1986 or SDRT chargeable under section 93 or 96 of the Finance Act 1986
      other than to the extent that it is provided in the Prospectus that the
      Company shall bear the cost of any SDRT which is chargeable in connection
      with the issue or transfer to Euroclear Nederland of New Shares subscribed
      for by a Qualifying Shareholder.

              

      

       

      References in this
clause 8.6 to New Shares include any interest in or rights to allotment of New
Shares.

       

      
        	
                8.7

              	
                If either of
      the Joint Sponsors, HM Treasury or any other Indemnified Person is subject
      to Tax in respect of any sum payable under this Agreement, other than any
      fees or commission payable under clause 8.1, clause 8.2 or clause 8.3 or
      any amounts payable on redemption of the Preference Shares, or if any such
      sum is taken into account in computing the taxable profits or income of
      either of the Joint Sponsors or HM Treasury or such other Indemnified
      Person, 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) the relevant
      Joint Sponsor or HM Treasury or the relevant Indemnified Person (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.

              

      

       

      
        	
                8.8

              	
                All sums
      (including, for the avoidance of doubt, any fees or commission payable
      under clause 8.1, clause 8.2 or clause 8.3) payable by the Company (the
      "Payer") to HM
      Treasury, to the Joint Sponsors (or any of them) or to any other
      Indemnified Person (the "Payee") pursuant to this
      Agreement 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

              

      

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

       

      
        makes (or is deemed
for VAT purposes to make) any supply to the Payer pursuant to this Agreement 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.

      

       

      
        	
                8.9

              	
                In any case
      where the Company is obliged to pay a sum to HM Treasury, to the Joint
      Sponsors (or any one of them) or to any other Indemnified Person under
      this Agreement by way of indemnity, reimbursement, damages or compensation
      for or in respect of any fee, liability, cost, charge or expense (the
      "Relevant Cost"),
      the Company shall pay to HM Treasury, to the Joint Sponsors (or any one of
      them) or to any other Indemnified Person (as the case may be) 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 HM Treasury, to the Joint Sponsors (or any one of
      them) or to any other Indemnified Person (including, for the avoidance of
      doubt, where such supply is made to HM Treasury, the Joint Sponsors (or
      any of them) or any other Indemnified Person acting as agent for the
      Company within the terms of section 47 VATA), such additional amount shall
      be equal to any input VAT which was incurred by HM Treasury, by any Joint
      Sponsor or by any other Indemnified Person (as the case may be) 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 HM Treasury,
      any Joint Sponsor or any other Indemnified Person as agent on behalf of
      the Company and the relevant supply is made to 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 HM Treasury, by
      any Joint Sponsor or by any other Indemnified Person, and HM Treasury, the
      relevant Joint Sponsor or the relevant other Indemnified Person shall use
      reasonable endeavours to procure that the relevant third party issues a
      valid VAT invoice in respect of the Relevant Cost to the
      Company.

              

      

       

      
        9.        
COVENANTS

      

       

      
        	
                9.1

              	
                The Company
      shall comply in all material respects with the Companies Acts, FSMA, the
      Prospectus Rules, the Listing Rules, the DTRs and the Admission and
      Disclosure Standards and all other applicable laws and regulations
      (including the rules of NFSA and the Euronext Rule Books), in each case
      insofar as they are relevant to the Placing and Open Offer (including, for
      the avoidance of doubt, the allotment and issue of the New Shares), the
      redemption of the Preference Shares or
  Admission.

              

      

       

      
        	
                9.2

              	
                Except for
      the publication of the Issue Documents, the Company undertakes to HM
      Treasury and to the Joint Sponsors that, until the close of business on
      the sixtieth day after the Closing Date, it shall not, and will procure
      that each Group Company does not, publish, make or despatch a public
      announcement or communication concerning, or which is reasonably likely to
      be material in the context of, the Placing and Open Offer or the
      redemption of the Preference
Shares:

              

      

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (A)

              	
                where the
      announcement or communication is required by law, the FSA, the DTRs, the
      LSE, Euronext or under the Regulations or the rules, practices and
      procedures laid down by Euroclear, without prior consultation with HM
      Treasury and the Joint Sponsors (where legally permitted and practicable)
      and having due regard to all reasonable requests which HM Treasury or the
      Joint Sponsors may make; or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                in any other
      case, without the prior consent of HM Treasury and the Joint Sponsors as
      to the content, timing and manner of the publication, making or despatch
      of the announcement or communication (such consent not to be unreasonably
      withheld).

              

      

       

      
        	
                9.3

              	
                Between the
      date of this Agreement and the close of business on the sixtieth day after
      the Closing Date, the Company undertakes to HM Treasury and to the Joint
      Sponsors that it shall:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                not, and
      shall procure that each Group Company shall not, without the prior written
      consent of HM Treasury and the Joint Sponsors, take any steps (including,
      without limitation, making any public statement or issuing or publishing
      any material or document) which, in the opinion of HM Treasury or the
      Joint Sponsors (acting in good faith), would be materially inconsistent
      with any expression of policy or intention or statement contained in the
      Prospectus, subject in each case to applicable law and regulation
      (including the fiduciary duties of the Directors) (provided that where any
      Group Company considers itself, or the directors thereof consider
      themselves, bound by law or by regulation to take any such steps they
      shall consult with HM Treasury and the Joint Sponsors before doing
      so);

              

      

       

      
        	
                 
      

              	
                (B)

              	
                use, and
      shall procure that each Group Company uses, all reasonable endeavours to
      ensure that the Company or Group Company concerned consults with HM
      Treasury and the Joint Sponsors as early as reasonably practicable in
      advance of the entry into or variation (other than in the ordinary course
      of business) of any commitment, agreement or arrangement, or any Group
      Company placing itself in a position where it is obliged to announce that
      any commitment, agreement or arrangement may be entered into or varied
      which, in any case, is either material in the context of the Group or may
      involve an increase in the issued capital of a Group Company (other than
      an increase in the issued capital of a Group Company where all the capital
      is to be issued to another Group
Company);

              

      

       

      
        	
                 
      

              	
                (C)

              	
                consult with
      HM Treasury and the Joint Sponsors as early as reasonably practicable in
      advance regarding any public statement or document which relates to the
      Group’s results, dividends or prospects, or to any acquisition, disposal,
      re-organisation, takeover, management development or any other significant
      matter (whether or not similar to the foregoing) and which it or any Group
      Company proposes to make or publish;
and

              

      

       

      
        	
                 
      

              	
                (D)

              	
                consult with
      HM Treasury and the Joint Sponsors as early as reasonably practicable in
      advance with respect to any other information which may
  be

              

      

       

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

       

      
        required to be
notified to a Regulatory Information Service in accordance with Chapter 2 of the
DTRs.

      

       

      
        	
                9.4

              	
                The Company
      shall use all reasonable endeavours to procure that employees of the
      Company and its subsidiaries and advisers to and agents of the Company
      (other than Joint Sponsors and their respective Affiliates) and its
      subsidiaries observe the restrictions set out in clauses 9.2 and 9.3 as if
      they were parties thereto.

              

      

       

      
        	
                9.5

              	
                The Company
      shall not (without the prior written consent of HM Treasury) directly or
      indirectly, issue, offer, pledge, sell, contract to issue or sell, issue
      or sell any option or contract to purchase or subscribe, purchase any
      option or contract to sell or issue, grant any option, right or warrant to
      purchase, deposit into any depositary receipt facility or otherwise
      transfer or dispose of (or publicly announce any such issue, pledge, sale,
      grant, deposit, transfer or disposal of) any Ordinary Shares or any
      securities convertible into or exercisable or exchangeable for Ordinary
      Shares or enter into any swap or other agreement that transfers, in whole
      or in part, directly or indirectly any of the economic consequences of the
      ownership of Ordinary Shares at any time before the expiry of the period
      of 60 days following Admission save in respect of the New Shares and any
      Ordinary Shares to be issued pursuant to the grant or exercise of options,
      awards or other rights to acquire Ordinary Shares pursuant to any employee
      share scheme or the grant of options or making of awards under the Group’s
      employee share incentive plans provided that this clause 9.5 shall not
      prevent the Company from doing any thing or executing any document which
      is conditional upon this Agreement lapsing, failing to become
      unconditional or being terminated.

              

      

       

      
        	
                9.6

              	
                The Company
      undertakes to make all such announcements concerning the Placing and Open
      Offer and the redemption of the Preference Shares as shall be necessary to
      comply with the Listing Rules, the DTRs, the Prospectus Rules, the
      Admission and Disclosure Standards and section 118, sections 118A to
      118C inclusive and section 397 of the FSMA, and the NFSA or which any
      of the Joint Sponsors or HM Treasury otherwise reasonably considers to be
      necessary or desirable and any of the Joint Sponsors and HM Treasury shall
      be entitled to make any such announcement if the Company fails (in the
      opinion of HM Treasury or such Joint Sponsor acting in good faith)
      promptly to fulfil its obligations under this
    clause 9.6.

              

      

       

      
        	
                9.7

              	
                The Company
      undertakes to provide:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                publications,
      reports and other information with respect to the Company and its
      subsidiaries and affiliates and their businesses;
  and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                access to the
      books and records and management and other employees of the Company and
      its subsidiaries and affiliates and their
  businesses,

              

      

       

      as
may be required in order to allow HM Treasury (including any agent or nominee of
HM Treasury) to comply fully with all legal and regulatory and other
requirements under the laws and regulations of any jurisdiction applicable to HM
Treasury (and/or any such agent or nominee of HM Treasury) as a direct or
indirect consequence of its shareholdings in the Company, including by
subscription for New Shares and the redemption of the Preference
Shares.

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

       

      
        	
                9.8

              	
                The Company
      undertakes to HM Treasury that it shall apply the proceeds of the issue of
      the New Shares to effect the redemption of the Preference Shares and to
      pay the commissions due to HM Treasury in terms of clauses 8.1(A) and
      8.1(B) and, to the extent the proceeds of the issue of the New Shares are
      insufficient for such purpose, shall provide additional finance from its
      own resources and make use of its own reserves to enable such redemption
      to be effected in full.  The Company and HM Treasury agree that
      the Preference Shares shall be redeemed on the date of Admission at an
      amount equal to £5,050,000,000 together with an amount equal to the
      dividend accrued on the Preference Shares from and including 1 December
      2008 to but excluding the date of Admission.  The Company shall,
      as soon as is practicable after the date hereof, propose such amendments
      to the terms of the Preference Shares to enable such redemption to take
      place and HM Treasury agrees, in its capacity as the holder of the
      Preference Shares, to vote in favour of such amendments and, in its
      capacity as a holder of Ordinary Shares, to vote in favour of the
      Resolutions (to the extent permitted to do so under the Listing Rules and
      applicable law.  Upon such redemption, the Preference Share
      Subscription Agreement will terminate without further liability for any
      party thereto (but without prejudice to any accrued rights
      thereunder).

              

      

       

      
        	
                9.9

              	
                The Company
      undertakes to HM Treasury to comply in full with all statements,
      conditions and undertakings which are set out in either the Press
      Announcement or Schedule 6.

              

      

       

      
        	
                9.10

              	
                The Company
      undertakes to HM Treasury that it shall not issue any New Shares which are
      to be subscribed for by HM Treasury pursuant to this Agreement to any
      person referred to in section 67 or 70 of the Finance Act 1986 or section
      93 or 96 of the Finance Act 1986 (such that stamp duty or SDRT would apply
      at the rate determined under any such section) unless HM Treasury requests
      that such New Shares are to be so
issued.

              

      

       

      
        10.      
REPRESENTATIONS,
WARRANTIES AND UNDERTAKINGS

      

       

      
        	
                10.1

              	
                The Company
      represents, warrants and undertakes to HM Treasury and to each of the
      Joint Sponsors that the representations, warranties and undertakings set
      out in Part I of Schedule 3 are true, accurate and not misleading as at
      the date of this Agreement.

              

      

       

      
        	
                10.2

              	
                The Company
      agrees with HM Treasury and with each of the Joint Sponsors
      that:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                each
      statement set out in Parts I and II of Schedule 3 will be true and
      accurate and not misleading on the Posting Date, at such time as a
      Supplementary Prospectus shall be issued in accordance with this Agreement
      (whether before or after Admission), and at each Time of Sale, if
      any;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                each
      statement set out in Parts I and II of Schedule 3 will be true and
      accurate and not misleading and immediately prior to
      Admission,

              

      

       

      in
each case by reference to the facts and circumstances then existing and will be
treated as Warranties given and/or repeated on such dates.  Warranties
shall be deemed to be repeated under this clause in relation to the relevant
document, announcement or event on the basis that any reference in any such
Warranty to something being done or something being the case in relation to such
document, 

       

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

       

      announcement or
event which is expressed in the future tense shall be regarded as being
expressed in the present tense.

       

      
        	
                10.3

              	
                The Company
      will notify HM Treasury and the Joint Sponsors immediately if it comes to
      the knowledge of the Company or any of the Directors that any of the
      Warranties was breached or untrue or inaccurate when made and/or that any
      of the Warranties is or would be breached or untrue or inaccurate if it
      were to be repeated by reference to the facts and circumstances or the
      knowledge, opinions, intentions or expectations of any of the Directors
      subsisting at any time up to immediately prior to
      Admission.  The Company will make reasonable enquiries to
      ascertain whether any of the Warranties was, or if so repeated would be,
      breached or untrue or inaccurate and as to whether a Specified Event has
      occurred.

              

      

       

      
        	
                10.4

              	
                If, at any
      time prior to Admission, HM Treasury and the Joint Sponsors shall receive
      a notice pursuant to clause 10.3 or otherwise become aware of any of the
      Warranties being or becoming or being likely (if repeated as referred to
      in clause 10.3) to become untrue or inaccurate, HM Treasury and the Joint
      Sponsors may (without prejudice to any other provision of this Agreement)
      require the Company, at its own expense, to make or procure the making of
      such announcement or announcements and/or despatch such communication to
      Ordinary Shareholders as HM Treasury and the Joint Sponsors shall, in
      their absolute discretion but after consultation with the Company,
      consider necessary.

              

      

       

      
        	
                10.5

              	
                The
      Warranties shall remain in full force and effect notwithstanding
      completion of the Placing and Open Offer and the redemption of the
      Preference Shares and all other matters and arrangements referred to in or
      contemplated by this Agreement.

              

      

       

      
        	
                10.6

              	
                The Company
      will deliver to HM Treasury and the Joint Sponsors a certificate in the
      form set out in Part A of Schedule 1 prior to and with effect immediately
      before Admission and in the form set out in Part B of Schedule 1 prior to
      and with effect immediately before the issue of any Supplementary
      Prospectus and at each Time of Sale, if
any.

              

      

       

      
        	
                10.7

              	
                The Company
      acknowledges that HM Treasury and the Joint Sponsors are entering into
      this Agreement in reliance on the Warranties and each such representation,
      warranty and undertaking shall not be limited by reference (express or
      implied) to the terms of any other representation, warranty or undertaking
      or any other provision of this
Agreement.

              

      

       

      
        	
                10.8

              	
                For the
      purposes of this clause 10 and Schedule 3, references to the knowledge,
      awareness or belief of the Directors or the Company in respect of matters
      relating to the Group shall be read and construed as references to such
      knowledge, awareness or belief after due and careful
    enquiry.

              

      

       

      
        	
                10.9

              	
                The Company
      undertakes to HM Treasury and to the Joint
  Sponsors:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                promptly to
      give notice to HM Treasury and to the Joint Sponsors of the occurrence of
      any Specified Event, which shall come to the knowledge of the Company
      prior to the earlier of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                this
      Agreement being terminated in accordance with its terms;
    and

              

      

       

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (ii)

              	
                the date of
      allotment of the New Shares pursuant to clauses 4 and/or 6 (as
      appropriate) (whichever is later);
and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                not to cause
      and to use all reasonable endeavours not to permit, and to procure that
      each Group Company and the Directors do not cause and use all reasonable
      endeavours not to permit, any Specified Event to occur before the earlier
      of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                this
      Agreement being terminated in accordance with its terms;
    and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the date of
      allotment of the New Shares pursuant to clauses 4 and/or 6 (as
      appropriate) (whichever is later),

              

      

       

      provided that any
breach of the covenant in this clause 10.9(B) will not give rise to a remedy in
damages against the Company in respect of such breach in circumstances where
this Agreement has been terminated pursuant to clause 13 as a result of a
Specified Event.

       

      
        	
                10.10

              	
                For the
      purpose of clauses 10.9(A) and 10.9(B), each of the Warranties and the
      undertakings contained in this clause 10 shall take effect with the
      exclusion of any qualification contained therein with respect to the
      knowledge, information, awareness or belief of the Company or any of the
      Directors or any other person.

              

      

       

      
        	
                10.11

              	
                Each Joint
      Sponsor severally represents, warrants and undertakes to the Company that
      it is an “accredited investor” as defined in Rule 501(a) of Regulation D
      under the Securities Act.

              

      

       

      
        11.    
   INDEMNITIES

      

       

      
        	
                 
      

              	
                11.1

              	
                The Company
      agrees to fully and effectively indemnify and hold harmless each
      Indemnified Person on an after-Tax basis 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 Agreement 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 by the relevant
      Indemnified Person) in connection with the Placing and Open Offer, the
      redemption of the Preference Shares, Admission or the arrangements
      contemplated by the Issue Documents or any of them (or any amendment or
      supplement to any of them), or this Agreement or any other agreement
      relating to the Placing and Open Offer or the redemption of the Preference
      Shares, including but not limited
to:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                any and all
      Losses or Claims whatsoever, as incurred, arising out of the Issue
      Documents, or any of them (or any amendment or supplement to any of them)
      not containing or fairly presenting, or being alleged not to contain or
      not to fairly present, all information required to be contained therein,
      or arising out of any untrue or inaccurate statement or alleged untrue or
      inaccurate statement of a material fact contained in the Issue Documents,
      or any of them (or any amendment or supplement to any of them), or the
      omission or alleged omission 

              

      

       

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

       

      
        therefrom of a fact
necessary in order to make the statements therein not misleading in any material
respect, or any statement therein being or being alleged to be in any respect
not based on reasonable grounds, in the light of the circumstances in which they
were made; and/or

      

       

      
        	
                 
      

              	
                (B)

              	
                any and all
      Losses or Claims whatsoever, as incurred, arising out of any breach or
      alleged breach by the Company of any of its obligations, including any of
      the Warranties, or the representations, covenants and undertakings set out
      in this Agreement or out of the arrangements contemplated by the Issue
      Documents, or any of them (or any amendment or supplement to any of them)
      or this Agreement or any other agreement relating to the Placing and Open
      Offer or the redemption of the Preference Shares;
  and/or

              

      

       

      
        	
                 
      

              	
                (C)

              	
                any and all
      Losses or Claims whatsoever, as incurred, in connection with or arising
      out of the issue, publication or distribution of the Issue Documents, or
      any of them (or any amendment or supplement to any of them) and/or any
      other documents or materials relating to the applications for Admission;
      and/or

              

      

       

      
        	
                 
      

              	
                (D)

              	
                any and all
      Losses or Claims whatsoever, as incurred, in connection with or arising
      out of any failure or alleged failure by the Company or any of the
      Directors or any of its or his agents, employees or advisers to comply
      with CA 1985, CA 2006, FSMA, the Listing Rules, the Prospectus Rules, the
      DTRs, the rules and regulations of the London Stock Exchange and the
      Admission and Disclosure Standards, the NFSA and the Euronext Rule Books
      or any other requirement or statute or regulation in any jurisdiction in
      relation to the applications for Admission, the Placing and Open Offer, or
      the arrangements contemplated by the Issue Documents (including, without
      limitation, the issue and allotment of the New Shares and the redemption
      of the Preference Shares), or any of them (or any amendment or supplement
      to any of them), or this Agreement or any other agreement relating to the
      Placing and Open Offer or the redemption of the Preference Shares;
      and/or

              

      

       

      
        	
                 
      

              	
                (E)

              	
                any and all
      Losses or Claims whatsoever, as incurred, suffered or incurred by such
      Indemnified Person:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                as a person
      who has communicated or approved the contents of any financial promotion
      (other than the Issue Documents, or any of them, or any amendment or
      supplement to any of them) made in connection with the Placing and Open
      Offer or the applications for Admission for the purpose of section 21 of
      FSMA; or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                (in the case
      of each of the Joint Sponsors only) in their capacity as sponsor to the
      Company’s applications for Admission and as sponsor in relation to the
      publication of the Circular,

              

      

       

      PROVIDED THAT, the
indemnity contained in this clause 11.1 shall not apply to any Losses or Claims
(i) in respect of HM Treasury (otherwise than in connection with the matters
referred to in clauses 11.1(A), (B), (C), (D) and (E)) to the extent finally and
judicially determined to have arisen as a result of the fraud, bad faith or
wilful default of that HMT Indemnified Person; (ii) in respect of UBS and
Merrill Lynch (otherwise than in 

       

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

       

      connection with the
matters referred to in clauses 11.1(A), (B), (C) and (D)) to the extent finally
and judicially determined to have arisen as a result of the fraud, gross
negligence, bad faith or wilful default of that UBS Indemnified Person or that
Merrill Lynch Indemnified Person or (iii) if and to the extent arising out of a
decline in market value of the New Shares suffered or incurred by HM Treasury as
a result of it having been required to subscribe for New Shares pursuant to
clause 6, save to the extent such decline is caused by or results from or is
attributable to or would not have arisen but for (in each case directly or
indirectly) the neglect or default of the Company in relation to the content,
publication, issue or distribution of the Issue Documents or any breach by the
Company of any of its obligations under this Agreement, including any of the
Warranties, representations, undertakings or covenants.  This clause
11.1 shall not apply to any Loss or Claim in respect of Tax which is covered by
clauses 8.6, 8.7, 8.8 and 8.9 (or which would have been so covered but for any
exclusion contained therein).

       

      
        11.2     
Each
Indemnified Person shall and shall procure that its Indemnified Persons
shall:

      

       

      
        	
                 
      

              	
                (A)

              	
                give notice
      as promptly as reasonably practicable to the Company of any action
      commenced against it after receipt of a written notice of any Claim or the
      commencement of any action, claim, suit, investigation or proceeding in
      respect of which a Claim for indemnification may be sought under this
      clause 11; and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                as promptly
      as reasonably practicable notify the Company after any such action is
      formally commenced (by way of service with a summons or other legal
      process giving information as to the nature and basis of the
      claim),

              

      

       

      and shall keep the
Company informed of, and, to the extent reasonably practicable, consult with the
Company in relation to, all material developments in respect thereof, but in
each case, only insofar as may be consistent with the terms of any relevant
insurance policy and provided (in each case) that to do so would not, in such
Indemnified Person’s view (acting in good faith), be prejudicial to it (or to
any Indemnified Person connected to it) or to any obligation of confidentiality
or other legal or regulatory obligation which that Indemnified Person owes to
any third party or to any regulatory request that has been made of
it.  However, the failure to so notify the Company and keep the
Company informed shall not relieve the Company from any liability hereunder to
the extent it is not materially prejudiced as a result thereof and in any event
shall not relieve the Company from any liability which it may have otherwise
than on account of the indemnity set out in this clause 11.

       

      
        	
                11.3

              	
                Legal
      advisers for Indemnified Persons shall be selected by HM Treasury in
      respect of HMT Indemnified Persons, UBS in respect of UBS Indemnified
      Persons and Merrill Lynch in respect of Merrill Lynch Indemnified Persons.
      The Company may participate at its own expense in the defence of any
      action commenced against it provided however that legal advisers for the
      Company shall not (except with the consent of the relevant Indemnified
      Person) also be legal advisers for the Indemnified
  Person.

              

      

       

      
        	
                11.4

              	
                In no event
      shall the Company be liable for fees and expenses of more than one legal
      adviser (in addition to any local legal advisers) separate from its own
      legal advisers for all UBS Indemnified Persons and Merrill Lynch
      Indemnified Persons in connection with any one action or separate but
      similar or related actions in the same jurisdiction arising out of the
      same general allegations or
circumstances.

              

      

       

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

       

      
        	
                11.5

              	
                The Company
      shall not, without the prior written consent of the relevant Indemnified
      Persons (acting in good faith), settle or compromise or consent to the
      entry of any judgment with respect to any litigation, or any investigation
      or proceeding by any governmental agency or body, commenced or threatened,
      or any claim whatsoever in respect of which indemnification or
      contribution could be sought under this clause 11 or clause 12 (whether or
      not the Indemnified Persons are actual or potential parties thereto),
      unless such settlement, compromise or
consent:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                includes an
      unconditional release of each Indemnified Person from all liability
      arising out of such litigation, investigation, proceeding or claim;
      and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                does not
      include a statement as to or an admission of fault, culpability or a
      failure to act by or on behalf of any Indemnified
  Person.

              

      

       

      
        	
                11.6

              	
                The Company
      will promptly notify HM Treasury and each of the Joint Sponsors of any
      limitation (whenever arising) on the extent to which the Company and/or
      any of its respective subsidiary undertakings, affiliates, or associates
      may claim against any third party or parties and/or of any waiver or
      release of any right of the Company to so claim (each a “Limitation”) in respect
      of anything which may arise, directly or indirectly, out of or is based
      upon or is in connection with the Placing and Open Offer, the redemption
      of the Preference Shares, Admission or the subject matter of the
      obligations or services to be performed under this Agreement or in
      connection with the Placing and Open Offer itself or the redemption of the
      Preference Shares, by HM Treasury or by the Joint Sponsors or on its or
      their behalf.  Where any damage or loss is suffered by the
      Company for which any Indemnified Person would otherwise be jointly and
      severally liable with any third party or third parties to the Company, or
      any of its relevant subsidiary undertakings, affiliates, or associates,
      the extent to which such damage or loss will be recoverable from the
      Indemnified Person shall be limited so as to be in proportion to the
      contribution of the Indemnified Person to the overall fault for such
      damage or loss, as agreed between the parties, or, in the absence of
      agreement, as determined by a court of competent jurisdiction, but in any
      event, the Indemnified Person shall have no greater liability than if the
      Limitation did not apply.

              

      

       

      
        	
                11.7

              	
                The degree to
      which any Indemnified Person shall be entitled to rely on the work of any
      adviser to the Company or any other third party will be unaffected by any
      limitation (as defined in clause 11.6) which the Company may have agreed
      with any third party.

              

      

       

      
        	
                11.8

              	
                The
      provisions of this clause 11 will remain in full force and effect
      notwithstanding the completion of all matters and arrangements referred to
      in or contemplated by this
Agreement.

              

      

       

      
        12.      
CONTRIBUTION

      

       

      
        	
                12.1

              	
                If and to the
      extent that the indemnification provided for in clause 11 is unavailable
      to or insufficient to hold harmless (to the extent specified in clause 11) an Indemnified Person in respect of any Loss
      or Claim referred to therein, then the Company, in lieu of indemnifying
      such Indemnified Person thereunder, shall contribute to the amount paid or
      payable by such Indemnified Person as a result of such Loss or Claim (i)
      in such proportion as is appropriate to reflect the relative benefits
      received by the Company on the one hand and HM Treasury or the Joint
      Sponsors on the other hand from the

              

      

       

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

       

      
        Placing and Open
Offer or (ii) if the allocation provided by sub-clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in sub-clause (i) above but also the
relative fault of the Company on the one hand and HM Treasury or the Joint
Sponsors on the other in connection with the statements or omissions that
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative benefits received by HM Treasury
on the one hand and the Company on the other shall be deemed to be in the same
respective proportions respectively as the total fees received by HM Treasury
pursuant to this Agreement bear to the aggregate Issue Price. The relative
benefits received by the Company on the one hand and the Joint Sponsors on the
other shall be deemed to be in the same respective proportions respectively as
the aggregate Issue Price and the total fees received by the Joint Sponsors, as
set forth in the Engagement Letters and not paid to Placees, bear to the
aggregate Issue Price. The relative fault of the Company on the one hand and HM
Treasury or the Joint Sponsors on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or by HM Treasury or the Joint Sponsors and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

      

       

      
        	
                12.2

              	
                Notwithstanding
      the provisions of this clause 12 neither HM Treasury nor the Joint
      Sponsors will be entitled to recover from the Company by way of
      contribution under clause 12.1 any amount in excess of the amount that the
      Company would have been liable to pay to HM Treasury or to the Joint
      Sponsors (as the case may be) had the indemnification provided for in the
      clause 11 been available to the extent provided in that clause in respect
      of the relevant Loss or Claim.

              

      

       

      
        	
                12.3

              	
                The parties
      hereto agree that it would not be just and equitable if contribution
      pursuant to this clause 12 were determined by pro rata allocation (even if
      HM Treasury and the Joint Sponsors were treated as one entity for such
      purposes) or by any other method of allocation that does not take account
      of the equitable considerations referred to in clause 12.1. The amount
      paid or payable by an Indemnified Person as a result of the Loss or Claim
      referred to in clause 12.1 shall be deemed to include, any legal or other
      expenses incurred by such Indemnified Person in connection with
      investigating or defending any such action or
  claim.

              

      

       

      
        	
                12.4

              	
                The indemnity
      and contribution agreements contained in this clause 12 are in addition to
      and shall not be construed to limit, affect or prejudice any liability
      which the Company may otherwise have to the Indemnified Persons referred
      to above or any other right or remedy in law or otherwise available to any
      Indemnified Person.

              

      

       

      
        13.       
 TERMINATION

      

       

      
        	
                13.1

              	
                If following
      the date of this Agreement but before Admission it shall come to the
      notice of HM Treasury or either of the Joint Sponsors
  that:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                any statement
      contained in the Issue Documents (or any amendment or supplement thereto)
      has become or been discovered to be untrue, inaccurate or misleading;
      or

              

      

       

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (B)

              	
                matters have
      arisen or have been discovered which would, if any of the Issue Documents
      (or any amendment or supplement thereto) were to be issued at that time,
      constitute an omission therefrom and which would render any such Issue
      Documents (or any amendment or supplement thereto) to be misleading;
      or

              

      

       

      
        	
                 
      

              	
                (C)

              	
                there has
      been a breach of any of the Warranties or of any other provision of this
      Agreement; or

              

      

       

      
        	
                 
      

              	
                (D)

              	
                a Specified
      Event has occurred; or

              

      

       

      
        	
                 
      

              	
                (E)

              	
                the Company’s
      application to the UK Listing Authority for admission of the New Shares to
      the Official List and/or the Company’s application to the London Stock
      Exchange for admission to trading of the New Shares on the London Stock
      Exchange’s market for listed securities and/or the Company’s admission to
      Euronext for admission to listing and trading of the New Shares on the
      regulated market of Euronext is withdrawn by the Company and/or refused by
      the UK Listing Authority or London Stock Exchange or Euronext (as
      appropriate),

              

      

       

      which, in each
case, is in HM Treasury’s or either of the Joint Sponsors’ sole judgement,
material in the context of the Group and/or the context of the Placing and Open
Offer or redemption of the Preference Shares or Admission, HM Treasury or such
Joint Sponsor may forthwith give notice thereof to the Company in which case
clause 13.3 shall apply.

       

      
        	
                13.2

              	
                If following
      the date of this Agreement but before
Admission:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                in the sole
      opinion of HM Treasury (acting in good faith) there shall have been any
      Material Adverse Effect, whether or not foreseeable at the date of this
      Agreement; or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                any matter
      has arisen which would require the publication of a Supplementary
      Prospectus; or

              

      

       

      
        	
                 
      

              	
                (C)

              	
                there has
      been:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a change in
      national or international financial, political, economic or stock market
      conditions (primary or secondary);

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                an incident
      of terrorism, outbreak or escalation of hostilities, war, declaration of
      martial law or any other calamity or
crisis;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                a suspension
      or material limitation in trading of the securities of the Company by the
      London Stock Exchange or by Euronext on any exchange or over-the-counter
      market, or if trading generally on the New York Stock Exchange, the NASDAQ
      National Market, the London Stock Exchange or Euronext has been suspended
      or limited, or minimum or maximum prices for trading have been fixed, or
      maximum ranges for prices have been required, by any of such exchanges or
      by such system or by order of the SEC, the National Association of
      Securities 

              

      

       

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

       

      
        Dealers, Inc. or
any governmental authority, or a material disruption has occurred in commercial
banking or securities settlement or clearance services in the United States or
in the EEA; or

      

       

      
        	
                 
      

              	
                (iv)

              	
                a moratorium
      in commercial banking has been declared by the United States, the United
      Kingdom or a member state of the
EEA,

              

      

       

      as
would in the opinion of HM Treasury, acting in good faith, be likely to
materially prejudice the success of the Placing and Open Offer or dealings in
the New Shares in the secondary market, then HM Treasury may give notice of any
such matter to the Company in which case clause 13.3 shall apply.

       

      
        	
                13.3

              	
                Where this
      clause applies and:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                notice has
      been given to the Company pursuant to clause 13.1 or 13.2 by HM Treasury,
      HM Treasury may in its sole
discretion:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                allow the
      Placing and Open Offer to proceed on the basis of the Issue Documents
      subject, if HM Treasury so requests, to (i) the publication of a
      Supplementary Prospectus pursuant to section 87G of FSMA (ii) the
      publication of a supplementary Circular and (iii) to any additional
      requirements of the Prospectus Rules or the FSA;
  or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if it does
      not consider it to be necessary that the arrangements contemplated by this
      Agreement proceed to completion in order to maintain the financial
      stability of the United Kingdom, give notice to the Company and to the
      Joint Sponsors at any time prior to Admission to the effect that this
      Agreement shall terminate and cease to have effect;
  and/or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                notice has
      been given to the Company pursuant to clause 13.1 by either of the Joint
      Sponsors, then clause 13.4 shall
apply.

              

      

       

      
        	
                13.4

              	
                Where this
      clause applies, the Joint Sponsor that gave notice to the Company pursuant
      to clause 13.1 (the “Notifying Sponsor”) may,
      having consulted with HM Treasury and the UK Listing Authority, give
      notice to the Company and to HM Treasury terminating its appointment under
      this Agreement and all obligations of the Notifying Sponsor under this
      Agreement shall thereupon terminate
and:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                if an
      application for Admission and/or a declaration on production of a circular
      has been submitted to the FSA, the Notifying Sponsor shall notify the FSA
      of the termination of its appointment as sponsor in respect of the Placing
      and Open Offer and/or the publication of the
  Circular;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                all
      references in this Agreement to the Joint Sponsors shall be deemed to be
      references to the Joint Sponsor that is not the Notifying Sponsor (if
      any);

              

      

       

      
        	
                 
      

              	
                (C)

              	
                in respect of
      the Notifying Sponsor, the Notifying Sponsor shall have no claim against
      any other party to this Agreement and no other party to this Agreement
      

              

      

       

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

       

      
        shall have any
claim against the Notifying Sponsor, in each case for fees, costs, damages,
compensation or otherwise except that:

      

       

      
        	
                 
      

              	
                (i)

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

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      provisions of this clause 13.4 and clauses 1, 8, 9.1, 9.2, 9.3, 9.4, 9.6,
      10, 11, 12, 14, 15, 16, 17, 18 and 19 shall remain in full force and
      effect and in particular the Company shall pay the commission and fees (to
      HM Treasury) and the costs and expenses as are payable in such
      circumstances under and in accordance with clause 8.1 and 8.2;
      and

              

      

       

      
        	
                 
      

              	
                (D)

              	
                the Company
      shall consult with HM Treasury and with any Joint Sponsor that is not the
      Notifying Sponsor to determine whether a further sponsor should be
      appointed in relation to the Placing and Open Offer and/or the publication
      of the Circular, as appropriate.

              

      

       

      
        	
                13.5

              	
                HM Treasury
      and the Joint Sponsors shall have no right to terminate this Agreement on
      or after Admission, without prejudice to any of the rights and remedies of
      HM Treasury and the Joint Sponsors in respect of any breach by the Company
      of its obligations under this
Agreement.

              

      

       

      
        	
                13.6

              	
                In the event
      that this Agreement is terminated by HM Treasury pursuant to the
      provisions of this clause 13, no party to this Agreement will have any
      claim against any other party to this Agreement for fees, costs, damages,
      compensation or otherwise except
that:

              

      

       

      
        	
                 
      

              	
                (A)

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

              

      

       

      
        	
                 
      

              	
                (B)

              	
                the Company
      shall pay the commissions, fees, costs and expenses as are payable in such
      circumstance under and in accordance with clause 8.1 and clause 8.2;
      and

              

      

       

      
        	
                 
      

              	
                (C)

              	
                the
      provisions of this clause 13.6 and clauses 1, 8, 9.1, 9.2, 9.3, 9.4, 9.6,
      9.9, 10, 11, 12, 14, 15, 16, 17, 18 and 19 shall remain in full force and
      effect.

              

      

       

      
        14.      
EXCLUSIONS
OF LIABILITY

      

       

      
        	
                14.1

              	
                Without
      prejudice to clause 14.2, no claim shall be made by the Company or any of
      its subsidiary undertakings, affiliates or associates or by HM Treasury,
      or any of the directors, officers or employees of any of them in any
      jurisdiction against any Indemnified Person to recover any Loss or Claim
      suffered or incurred by any person and which arises out of the carrying
      out by any Indemnified Person of obligations or services in connection
      with this Agreement, or the redemption of the Preference Shares or any
      other agreements relating to the Placing and Open Offer or the redemption
      of the Preference Shares, or in connection with the Placing and Open Offer
      itself or the redemption of the Preference Shares except (otherwise than
      in connection with the matters set out in clauses 11 or 12 or otherwise
      than as a result of a payment made or an obligation or liability to make
      payment arising under clauses 11 or 12) to the extent
  

              

      

       

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

       

      
        only that the Loss
or Claim is determined in a final judgement by a court of competent
jurisdiction, in the case of a HMT Indemnified Person, to have resulted from the
fraud, bad faith or wilful default of such HMT Indemnified Person and, in the
case of a UBS Indemnified Person or a Merrill Lynch Indemnified Person, to have
resulted from the fraud, bad faith, gross negligence or wilful default of that
UBS Indemnified Person or Merrill Lynch Indemnified Person.

      

       

      
        	
                14.2

              	
                Notwithstanding
      any rights or claims which the Company or any of its respective subsidiary
      undertakings, affiliates or associates or any of the directors, officers
      or employees of any of them may have or assert against the Joint Sponsors
      in connection with this Agreement, the Placing and Open Offer, the
      redemption of the Preference Shares, or any of the other arrangements
      contemplated by the Issue Documents, or any of them, or this Agreement, no
      claim will be brought by the Company or by any of its respective
      subsidiary undertakings, affiliates or associates or any of the directors,
      officers or employees of any of them against any director or any other
      officer and/or employee of any Indemnified Person in respect of any
      conduct, action or omission by the individual concerned in connection with
      this Agreement or the Placing and Open Offer, the redemption of the
      Preference Shares, or any of the other arrangements contemplated by the
      Issue Documents, or any of them, or this
  Agreement.

              

      

       

      
        15.      
MISCELLANEOUS

      

       

      
        	
                15.1

              	
                For the
      avoidance of doubt, the Company acknowledges and agrees that it is
      responsible for its own due diligence carried out in relation to the
      Placing and Open Offer and the redemption of the Preference Shares and
      that neither HM Treasury nor any of the Joint Sponsors shall be
      responsible to the Company or any Director for any due diligence of the
      Company in relation thereto unless it or they have agreed in writing to
      take specific responsibility for such due
  diligence.

              

      

       

      
        	
                15.2

              	
                The Company
      agrees that for the purpose of the Placing and Open Offer (including for
      the purposes of seeking Placees for the New Shares), the redemption of the
      Preference Shares and of obtaining Admission, neither HM Treasury nor any
      of the Joint Sponsors shall be responsible for the provision of or
      obtaining advice as to the requirements of any applicable laws or
      regulations of any jurisdictions nor shall any such person be responsible
      where it or the Company has acted in the absence of such advice or in
      reliance on any advice obtained by the Company in respect
      thereof.

              

      

       

      
        16.      
GENERAL

      

       

      
        	
                16.1

              	
                Any liability
      to any party under this Agreement may in whole or in part be released,
      compounded or compromised and time or indulgence may be given by any party
      in its absolute discretion as regards any other person under such
      liability without in any way prejudicing or affecting the first party’s
      rights against such other person under the same or a similar liability,
      whether joint and several or otherwise. For the avoidance of doubt, any
      reference in this Agreement to the agreement or consent of, or any notice
      or waiver by, HM Treasury or the Joint Sponsors shall be construed as the
      agreement or consent of, or any notice or waiver by (as the case may be),
      HM Treasury and each of the Joint Sponsors, except where expressly
      provided to the contrary.

              

      

       

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

       

      
        	
                16.2

              	
                No failure of
      any party to exercise, and no delay by it in exercising, any right, power
      or remedy in connection with this Agreement will operate as a waiver
      thereof, nor will any single or partial exercise of any such right
      preclude any other or further exercise of such right or the exercise of
      any other right. The rights provided in this Agreement are cumulative and
      not exclusive of any other rights (whether provided by law or otherwise).
      Any express waiver of any breach of this Agreement shall not be deemed a
      waiver of any subsequent breach.

              

      

       

      
        	
                16.3

              	
                Each of the
      parties hereto acknowledges that the Warranties given by the Company and
      the indemnity contained in clause 11 are, subject as provided in clause
      16.12, given to HM Treasury, the Joint Sponsors and the Indemnified
      Persons (as the case may be), for themselves and not to them as agent of,
      trustee for or otherwise for the benefit of any other person including
      (without limitation) any person who may subscribe or purchase any of the
      New Shares.

              

      

       

      
        	
                16.4

              	
                Time shall be
      of the essence of this Agreement, both as regards any dates, times or
      periods mentioned and as regards any dates, times or periods which may be
      substituted for them in accordance with this Agreement or by agreement in
      writing between the parties.

              

      

       

      
        	
                16.5

              	
                This
      Agreement may be entered into in any number of counterparts and by the
      parties to it on separate counterparts, each of which when so executed and
      delivered shall be an original, but all the counterparts shall together
      constitute one and the same
instrument.

              

      

       

      
        	
                16.6

              	
                This
      Agreement, together with the Engagement Letters (in the case of the
      Company and the Joint Sponsors, only), constitutes the whole agreement and
      understanding between the parties in relation to the Placing and Open
      Offer and the redemption of the Preference Shares.  All previous
      agreements, understandings, undertakings, representations, warranties and
      arrangements of any nature whatsoever between the parties or any of them
      with any bearing on the Placing and Open Offer or the redemption of the
      Preference Shares are superseded and extinguished (and all rights and
      liabilities arising by reason of them, whether accrued or not at the date
      of this Agreement, are cancelled) to the extent they have such a
      bearing.  In the event of any conflict between the terms of the
      Engagement Letters and this Agreement, this Agreement shall (as between
      the parties to the Engagement Letters)
prevail.

              

      

       

      
        	
                16.7

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

              

      

       

      
        	
                16.8

              	
                At any time
      after the date of this Agreement the Company and the Joint Sponsors shall,
      and shall use all reasonable endeavours to procure that any necessary
      third party shall, at the cost of that party execute such documents and do
      such acts and things as the party may reasonably require for the purpose
      of giving full effect to all the provisions of this Agreement by which it
      is bound.

              

      

       

      
        	
                16.9

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

              

      

       

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

       

      
        	
                16.10

              	
                All payments
      by the Company under this Agreement 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, the Company will:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                promptly upon
      becoming aware thereof, notify HM Treasury and the Joint Sponsors
      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.

              

      

       

      
        	
                16.11

              	
                If the
      Company makes an increased payment to HM Treasury, any Joint Sponsor or
      any other Indemnified Person in accordance with clause 8.7 or 16.10 and HM
      Treasury, the relevant Joint Sponsor or such other Indemnified Person (as
      the case may be) 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 the Company, then HM Treasury, the relevant
      Joint Sponsor or such other Indemnified Person (as the case may be) shall
      reimburse to the Company as soon as reasonably practicable an amount equal
      to such proportion of the Tax so saved or refunded as will leave HM
      Treasury, the relevant Joint Sponsor or the relevant other Indemnified
      Person (as the case may be), 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 Agreement shall require HM Treasury, a Joint Sponsor or any other
      Indemnified Person to disclose any information in relation to its Tax
      affairs to the Company or any person acting for or on behalf of the
      Company.

              

      

       

      
        	
                16.12

              	
                Each
      Indemnified Person shall have the right under the Contracts (Rights of
      Third Parties) Act 1999 (which shall apply to this Agreement only to the
      extent provided in this clause 16.12) to enforce its rights against the
      Company under clause 11, clause 12, this clause 16 or clause 19.3,
      provided that HM Treasury will have the sole conduct of any action to
      enforce such rights on behalf of the HMT Indemnified Persons, UBS will
      have the sole conduct of any action to enforce such rights on behalf of
      the UBS Indemnified Persons and Merrill Lynch will have the sole conduct
      of any action to enforce such rights on behalf of the Merrill Lynch
      Indemnified Persons.  Except as provided above and as provided
      in clause 5.10, a person who is not a party to this Agreement has no right
      under the Contracts (Rights of Third Parties) Act 1999 to enforce any term
      of this Agreement.  HM Treasury, the Joint Sponsors and the
      Company may agree to terminate 

              

      

       

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

       

       

      
        this Agreement or
vary any of its terms without the consent of any Indemnified Person or any other
third party. Neither HM Treasury nor the Joint Sponsors will have any
responsibility to any Indemnified Person under or as a result of this
Agreement.

      

       

      
        17.      
ASSIGNMENT
OR NOVATION

      

       

      
        	
                17.1

              	
                Subject to
      clause 17.2, HM Treasury shall be permitted to novate its rights and
      obligations under this Agreement (including any obligation to subscribe
      for New Shares), to any entity which is wholly owned, directly or
      indirectly, by HM Treasury (a “Wholly Owned Entity”)
      and each of the Company, UBS and Merrill Lynch agrees to consent to, and
      to execute and deliver all such documentation as may be necessary to
      effect, any such novation provided that such novation is effected on
      substantially the same terms as are contained in the pro forma novation
      agreement set out in Schedule 4 to this
  Agreement.

              

      

       

      
        	
                17.2

              	
                In the event
      that HM Treasury novates its rights and obligations under this Agreement
      pursuant to clause 17.1, HM Treasury shall
      procure that, immediately prior to any such Wholly Owned Entity ceasing to
      be wholly-owned directly or indirectly by HM Treasury, such rights and
      obligations under this Agreement shall be novated to HM Treasury or any
      other Wholly Owned Entity.

              

      

       

      
        	
                17.3

              	
                Subject to
      clause 17.1, no party to this Agreement shall be permitted to assign or
      novate, or purport to assign or novate, all or any part of the benefit of,
      or its rights or benefits under, this Agreement to any other person
      without the prior written consent of each other
  party.

              

      

       

      
        18.      
NOTICES

      

       

      
        	
                18.1

              	
                Any notice,
      claim, demand or other communication in connection with this Agreement
      shall be in writing and shall be sufficiently given or served if delivered
      or sent:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                in the case
      of the Company to:

              

      

       

      RBS
Gogarburn

      Edinburgh

      EH12
1HQ

       

      Fax: 0131 626
2997

       

      Attention: Group
General Counsel

       

      
        	
                 
      

              	
                (B)

              	
                in the case
      of the Joint Sponsors to:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                UBS
      Limited

              

      

      
        	
                 
      

              	
                1 Finsbury
      Avenue,

              

      

      
        	
                 
      

              	
                London EC2M
      2PP

              

      

       

      Fax: +44 20 7567
4127

       

      Attention: Equity
Capital Markets

       

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       

       

      and

       

      
        	
                 
      

              	
                (ii)

              	
                Merrill Lynch
      International

              

      

      
        	
                 
      

              	
                2 King Edward
      Street,

              

      

      
        	
                 
      

              	
                London EC1A
      1HQ

              

      

       

      Fax: +44 20 7995
2516

       

      Attention: ECM
Syndicate Desk

       

      
        	
                 
      

              	
                (C)

              	
                in the case
      of HM Treasury to:

              

      

       

      1
Horse Guards Road

      London SW1A
2HQ

       

      Fax: 020 7270
7562

       

      Attention: Jeremy
Pocklington (Team Leader of Corporate and Private Finance).

       

      
        	
                18.2

              	
                Any such
      notice or other communication shall be delivered by hand or sent by fax or
      pre-paid first class post.  In the absence of evidence of
      earlier receipt, a notice or other communication is deemed given: (i) if
      delivered by hand, when left at the address referred to in clause 18.1;
      (ii) if sent by fax, when confirmation of its transmission has been
      recorded on the sender's fax machine; and (iii) if sent by post, 48 hours
      from the time of posting.

              

      

       

      
        	
                18.3

              	
                Any notice
      given by HM Treasury or by a Joint Sponsor under clause 13.1 or 13.2 may
      also be given to the Company’s representative referred to in clause 18.1
      or to any Director by any director or other authorised representative of
      HM Treasury or the Joint Sponsors either personally or by telephone (to be
      confirmed immediately in writing) and shall have immediate
      effect.

              

      

       

      
        	
                18.4

              	
                Any party may
      notify the other party to this Agreement of a change of its name, relevant
      addressee, address or fax number for the purposes of clause 18.1 provided
      that such notification shall only be effective
  on:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                the date
      specified in the notification as the date on which the change is to take
      place; or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                if no date is
      specified or the date specified is less than five Business Days after the
      date on which notice is given, the date falling five Business Days after
      notice of any such change has been
given.

              

      

       

      
        19.      
GOVERNING
LAW AND SUBMISSION TO JURISDICTION

      

       

      
        	
                19.1

              	
                This
      Agreement and any non-contractual obligations arising out of or in
      connection with it shall be governed by and construed in accordance with
      English law.

              

      

       

      
        	
                19.2

              	
                Subject to
      clause 19.3, the courts of England have exclusive jurisdiction to hear and
      decide any suit, action or proceedings, and to settle any disputes
      (including claims for set-off and counterclaims), which may arise out of
      or in connection with this
Agreement

              

      

       

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

       

      
        (respectively,
"Proceedings" and "Disputes") and, for these
purposes, the Company and the Joint Sponsors irrevocably submit to the
jurisdiction of the courts of England.

      

       

      
        	
                19.3

              	
                Notwithstanding
      the provisions of clause 19.2, in the event that any Indemnified Person
      becomes subject to proceedings brought by a third party (the "Foreign Proceedings") in
      the courts of any country other than England (including, without prejudice
      to the generality of the foregoing, in any court of competent jurisdiction
      in the United States) (the "Foreign Jurisdiction"),
      such Indemnified Person shall be entitled, without objection by 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 Indemnified Person and 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
      the Company hereby submits to the jurisdiction of the Foreign Jurisdiction
      for this purpose.

              

      

       

      
        	
                19.4

              	
                The Company
      and the Joint Sponsors irrevocably waive any objection to the jurisdiction
      of any courts referred to in this clause
19.

              

      

       

      
        	
                19.5

              	
                The Company
      and the Joint Sponsors irrevocably agree that a judgment and/or order of
      any court referred to in this clause 19 based on any matter arising out of
      or in connection with this Agreement (including but not limited to the
      enforcement of any indemnity) shall be conclusive and binding on it and
      may be enforced against it in any other jurisdiction, whether or not
      (subject to due process having been served on it) it participates in the
      relevant proceedings.

              

      

       

      
        	
                19.6

              	
                The Company
      agrees to appoint an agent for service of process in any Foreign
      Jurisdiction other than England in which any other party is subject to
      legal suit, action or proceedings based on or arising under this Agreement
      within 14 days of receiving written notice of such legal suit, action or
      proceedings and the request to appoint such agent for
      service.  In the event that the Company does not appoint such an
      agent within 14 days of the notice requesting it to so, such other party
      may appoint a commercial agent for service for the Company on the
      Company's behalf and at the Company's expense and the Company agrees that
      subject to being notified of such appointment in writing, service upon
      such commercial agent will constitute service upon the
      Company.

              

      

       

      
        	
                19.7

              	
                Process by
      which any Proceedings are begun in England may be served on a party by
      being delivered in accordance with clause 18.  Nothing contained
      in this clause 19.7 affects the right to serve process in another manner
      permitted by law.

              

      

       

       

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

       

    

    
       

      
         

        SCHEDULE
1

        CERTIFICATES
TO BE DELIVERED

         

        Part
A

         

        Certificate
to be delivered pursuant to clause 10.6 prior to and

        with
effect immediately before Admission

         

        [Company
Letterhead]

         

        
          	
                  To:

                	
                  The
      Commissioners of Her Majesty’s
Treasury

                

        

        
          	
                   
      

                	
                  1 Horse
      Guards Road

                

        

        
          	
                   
      

                	
                  London SW1A
      2HQ

                

        

         

        
          	
                   
      

                	
                  Attention of:
      Jeremy Pocklington (Team Leader of Corporate and Private
      Finance)

                

        

         

        UBS
Limited

        1
Finsbury Avenue

        London  EC2M
2PP

         

        Attention of: Equity Capital
Markets

         

        Merrill Lynch
International

        2
King Edward Street

        London  EC1A
1HQ

         

        Attention of: ECM Syndicate
Desk

         

         

        [date]

         

        Dear
Sirs

         

        Proposed
Placing and Open Offer of [ ̃] Ordinary
Shares of 25 pence each (the "Placing and Open Offer")

         

        Further to the
placing and open offer agreement between us dated [ ̃] January 2009
(the "Agreement"), we confirm that:

         

        
          	
                  (a)

                	
                  the FSA has
      agreed to admit the New Shares to the Official List subject only to the
      making of an announcement in accordance with paragraph 3.2.7G of the
      Listing Rules;

                

        

         

        
          	
                  (b)

                	
                  the LSE has
      agreed to admit the New Shares to trading on the LSE subject only to the
      making of an announcement in accordance with paragraph 2.1 of the
      Admission and Disclosure Standards;

                

        

         

        
          	
                  (c)

                	
                  Euronext has
      agreed to admit the New Shares to the regulated market of
      Euronext;

                

        

         

        
          	
                  (d)

                	
                  it has not
      come to the notice of any Director that there is any fact or circumstance
      which constitutes a breach of any of the Warranties given under the
      Agreement or which has caused or would or might cause any of the
      Warranties given pursuant to the
Agreement

                

        

         

         

        
          
            
            

          

          
            58

            
              

            

          

          
            
            

          

        

         

         

        
          to become untrue,
inaccurate or misleading by reference to the facts or circumstances existing at
8.00 a.m. on [—];

        

         

        (e)        it
has not come to the notice of any Director that a Material Adverse Effect has
occurred;

         

        
          	
                  (f)

                	
                  it has not
      come to the notice of any Director that any other event has occurred that
      would entitle HM Treasury to terminate the
  Agreement;

                

        

         

        
          	
                  (g)

                	
                  the
      Resolutions have been passed without amendment at the
  GM;

                

        

         

        
          	
                  (h)

                	
                  it has not
      come to the notice of any Director that the Company is in breach of any of
      its obligations under the Agreement;
and

                

        

         

        
          	
                  (i)

                	
                  insofar as
      the Directors are aware (subject only to the giving of this letter and
      excluding any conditions set out in clause 2.1 of the Agreement the
      satisfaction of which has been waived by HM Treasury pursuant to clause
      2.4 of the Agreement or by the Company pursuant to clause 2.5 of the
      Agreement or which is treated as waived pursuant to clause 2.6 of the
      Agreement) the conditions set out in clause 2.1 of the Agreement (other
      than condition 2.1(X)) have all been
fulfilled.

                

        

         

        For the purpose of
this letter, where in a representation, warranty or undertaking there is an
express or implied reference to the "date of this Agreement", that reference is
to be construed as a reference to "immediately prior to Admission".

         

        Yours
faithfully

         

        

        Director

         

        for and on behalf
of

        The Royal Bank of
Scotland Group plc

         

        

        
          
            
            

          

          
            59

            
              

            

          

          
            
            

          

        

         

         

        Part
B

         

        Certificate
to be delivered pursuant to clause 10.6 prior to and with effect

        immediately
before the issue of any Supplementary Prospectus

        and
at each Time of Sale, if any

         

        

         

        To:       The
Commissioners of Her Majesty’s Treasury

        1 Horse Guards Road

        London SW1A 2HQ

         

        
          	
                   
      

                	
                  Attention of:
      Jeremy Pocklington (Team Leader of Corporate and Private
      Finance)

                

        

         

        UBS
Limited

        1
Finsbury Avenue

        London EC2M
2PP

         

        Attention of: Equity Capital
Markets

         

        Merrill Lynch
International

        2
King Edward Street

        London EC1A
1HQ

         

        Attention of: ECM Syndicate
Desk

         

        [date]

         

        Dear
Sirs

         

        Proposed
Placing and Open Offer of [ ̃] ordinary
shares of 25 pence each (the "Placing and Open Offer")

         

        Further to the
placing and open offer agreement between us dated [ ̃] January 2009
(the "Agreement"), we
confirm that:

         

        
          	
                  (a)

                	
                  it has not
      come to the notice of any Director that there is any fact or circumstance
      which constitutes a breach of any of the Warranties given under the
      Agreement or which has caused or would or might cause a Warranty to become
      untrue, inaccurate or misleading by reference to the facts or
      circumstances existing at 8.00 a.m. on [•];
and

                

        

         

        
          	
                  (b)

                	
                  it has not
      come to the notice of any Director that the Company is in breach of any of
      its obligations under the
Agreement;

                

        

         

        
          	
                  (c)

                	
                  it has not
      come to the notice of any Director that a Material Adverse Effect has
      occurred; and

                

        

         

        
          	
                  (d)

                	
                  it has not
      come to the notice of any Director that any other event has occurred that
      would entitle HM Treasury to terminate the
  Agreement.

                

        

         

         

        
          
            
            

          

          
            60

            
              

            

          

          
            
            

          

        

         

         

        For the purpose of
this letter, where in a representation, warranty or undertaking there is an
express or implied reference to the "date of this Agreement", that reference is
to be construed as a reference to "immediately prior to [—]”.

         

        Yours
faithfully

         

        

        Director

        for and on behalf
of

        The Royal Bank of
Scotland Group plc

         

         

        
          
            
            

          

          
            61

            
              

            

          

          
            
            

          

        

         

         

        SCHEDULE
2

        DOCUMENTS
TO BE DELIVERED

         

        Part
I

        Documents
to be delivered prior to or on execution of this Agreement

         

        The following
documents are to be delivered by the Company to HM Treasury and to the Joint
Sponsors at execution of this Agreement:

         

        
          	
                  1.

                	
                  a certified
      copy of an extract of the minutes of a meeting of the Board at which it
      was approved and authorised (or of the duly authorised committee of such
      Board), or of a resolution of the Board (or of the duly authorised
      committee of such Board) approving and authorising, the issue and/or
      execution of this Agreement and, the Press Announcement (and, if the said
      resolution is of such a committee, a certified copy of the resolution of
      the Board appointing such
committee);

                

        

         

        2.         three
certified copies of the Press Announcement.

         

         

        
          
            
            

          

          
            62

            
              

            

          

          
            
            

          

        

        
 

         

        Part
II

        Documents
to be delivered on the Posting Date under clause 3.15

         

        The following
documents are to be delivered by the Company to the Joint Sponsors and to HM
Treasury on the Posting Date as referred to in clause 3.15 and, where reasonably
requested, the date of publication of each Supplementary
Prospectus.

         

        The documents
referred to at items 8, 11, 15, 16, 18, 19, 25 and 26 shall be delivered to HM
Treasury upon HM Treasury executing a release letter in favour of Deloitte LLP
in respect of such reports (in substantially the same terms as the release
letter between Deloitte & Touche LLP and HM Treasury dated 28 November
2008):

         

        1.         copies
of the signed applications for admission to the Official List of the New
Shares;

         

        
          	
                  2.

                	
                  copies of the
      signed applications for admission to trading of the New Shares on the
      London Stock Exchange;

                

        

         

        
          	
                  3.

                	
                  a copy of the
      passporting statement for the Prospectus issued by the UK Listing
      Authority to the Netherlands Authority for Financial Markets, the AMF in
      France, the BaFIN in Germany and the CMNV in
  Spain;

                

        

         

        
          	
                  4.

                	
                  a completed
      ‘Form A’, to be submitted to the FSA in accordance with paragraph 3.1.1(1)
      of the Prospectus Rules for approval of a prospectus in accordance with
      Part VI of the FSMA;

                

        

         

        
          	
                  5.

                	
                  a copy of the
      Prospectus bearing evidence of the formal approval of the FSA pursuant to
      the Listing Rules and a copy of the Circular bearing evidence of the
      formal approval of the FSA pursuant to the Listing
  Rules;

                

        

         

        
          	
                  6.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Company’s counsel in relation to paragraphs 8.3.4,
      8.4.12 and 8.4.13 of the UK Listing Rules and dated the Posting
      Date;

                

        

         

        
          	
                  7.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Company in relation to paragraphs 8.3.4, 8.4.12 and
      8.4.13 of the UK Listing Rules and dated the Posting
  Date;

                

        

         

        
          	
                  8.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Auditors in relation to paragraphs 8.4.12(1) and
      8.4.13(3) of the UK Listing Rules and dated the Posting
    Date;

                

        

         

        
          	
                  9.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Company’s counsel in relation to paragraphs 8.4.8 and
      8.4.9 of the UK Listing Rules and dated the Posting
  Date;

                

        

         

        
          	
                  10.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Company in relation to paragraphs 8.4.8 and 8.4.9 of
      the UK Listing Rules and dated the Posting
Date;

                

        

         

         

        
          
            
            

          

          
            63

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  11.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Company’s auditors in relation to paragraphs 8.4.8(1),
      8.4.8(2) and 8.4.9(3) of the UK Listing Rules and dated the Posting
      Date;

                

        

         

        
          	
                  12.

                	
                  two original
      letters in a form acceptable to the Joint Sponsors, acting reasonably,
      signed by each of the Directors authorising the publication of the
      Prospectus and the Circular, accepting responsibility for information
      contained in the Prospectus, the Circular and any Supplementary Prospectus
      and acknowledging their understanding of their responsibilities under the
      UK Listing Rules and the Disclosure Rules in accordance with paragraph
      8.3.4 of the UK Listing Rules;

                

        

         

        
          	
                  13.

                	
                  the
      Verification Materials prepared in connection with the Press Announcement,
      the Circular and the Prospectus signed by or on behalf of each person to
      whom responsibility is therein assigned and copies of all evidence
      supporting answers in the notes;

                

        

         

        
          	
                  14.

                	
                  a certified
      copy of the resolution of the Board of Directors (or of the duly
      authorised Committee of such Board) approving and authorising the issue of
      the Prospectus, the Circular, the Application Form and the Form of Proxy
      (and if the said resolution is of such a Committee, a certified copy of
      the resolution of the Board of Directors appointing such
      Committee);

                

        

         

        
          	
                  15.

                	
                  an original
      copy of any pro forma financial information report incorporated in the
      Prospectus duly signed by the Company’s auditors and dated the Posting
      Date;

                

        

         

        
          	
                  16.

                	
                  an original
      copy of any pro forma financial information report (as incorporated in the
      Circular) duly signed by the Company’s auditors and dated the Posting
      Date;

                

        

         

        
          	
                  17.

                	
                  a certified
      copy of each of the other documents stated in the Prospectus and the
      Circular as being available for
inspection;

                

        

         

        
          	
                  18.

                	
                  an original
      copy of the letter in acceptable to the Joint Sponsors, acting reasonably,
      duly signed by the Auditors and dated the Posting
  Date:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  providing
      comfort on there being no significant change in the financial and trading
      position (including indebtedness) of the Group and confirming the proper
      and accurate extraction of financial information contained in the
      Prospectus and the Circular; and

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  to the extent
      relevant, giving consent to the inclusion in the Circular and the
      Prospectus of their respective reports and letters in the form and context
      in which they are respectively
included;

                

        

         

        
          	
                  19.

                	
                  original
      copies of letters in a form acceptable to the Joint Sponsors, acting
      reasonably, duly signed by the Company’s auditors and dated the same date
      as the Prospectus on the matters contemplated in the U.S. Statement of
      Auditing Standards No. 72 (including a “SAS 72 lookalike” letter) with
      respect to the financial statements and certain financial information
      contained, or incorporated by reference, in the
  Prospectus;

                

        

         

         

        
          
            
            

          

          
            64

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  20.

                	
                  an original
      copy of the letter in a form acceptable to the Joint Sponsors, acting
      reasonably, duly signed by the Company and dated the Posting Date
      providing comfort on there being no significant change in the financial
      and trading position (including indebtedness) of the Group since 31
      December 2008;

                

        

         

        
          	
                  21.

                	
                  a written
      English opinion in a form acceptable to the Joint Sponsors and to HM
      Treasury, acting reasonably, from Linklaters LLP (as English counsel for
      the Company):

                

        

         

        
          	
                  22.

                	
                  a rule 10b-5
      disclosure letter and tax disclosure, Investment Company Act and
      no-registration opinion in a form acceptable to the Joint Sponsors and to
      HM Treasury, acting reasonably, from Linklaters LLP (as U.S. counsel for
      the Company) and a rule 10b-5 disclosure letter and no-registration
      opinion from Freshfields Buckhaus Deringer LLP (as US Counsel for the
      Joint Sponsors) in a form acceptable to the Joint Sponsors and to HM
      Treasury, acting reasonably;

                

        

         

        
          	
                  23.

                	
                  certified
      copies of any power of attorney pursuant to which any Director signed any
      of the documents mentioned above in a form acceptable to the Joint
      Sponsors, acting reasonably;

                

        

         

        
          	
                  24.

                	
                  a certified
      copy of a memorandum to the Directors from Linklaters LLP in connection
      with the Placing and Open Offer explaining the nature of their
      responsibilities and obligations as directors of a listed company under
      the Listing Rules and DTRs in a form acceptable to the Joint Sponsors,
      acting reasonably;

                

        

         

        
          	
                  25.

                	
                  the Working
      Capital Report relating to the Group duly signed by the Auditors in a form
      acceptable to the Joint Sponsors, acting reasonably, and dated the Posting
      Date;

                

        

         

        
          	
                  26.

                	
                  a letter to
      the Joint Sponsors dated the Posting Date from the Auditors relating to
      the said Working Capital Report, the financial information contained in
      the Circular and the Prospectus and any current trading statements in the
      Circular and the Prospectus, in a form acceptable to the Joint Sponsors,
      acting reasonably;

                

        

         

        
          	
                  27.

                	
                  a letter to
      the Joint Sponsors from the Company relating to the adequacy of the
      Group’s working capital in a form acceptable to the Joint Sponsors, acting
      reasonably, and dated the Posting
Date;

                

        

         

        
          	
                  28.

                	
                  a certified
      copy of any registrar’s agreement entered into by the Company with the
      Registrar in relation to the Placing and Open Offer and of the Receiving
      Agent Agreement;

                

        

         

        29.       three
certified copies of the press release relating to the posting of the
Prospectus;

         

        30.       a
certified copy of the Memorandum and Articles of Association of the
Company;

         

        
          	
                  31.

                	
                  a written
      Scottish opinion in a form acceptable to the Joint Sponsors and to HM
      Treasury, acting reasonably, from Dundas & Wilson CS LLP (as Scottish
      counsel for the Company) to the extent reasonably
  required;

                

        

         

        
          	
                  32.

                	
                  such other
      documents as may be reasonably required by HM Treasury and/or the Joint
      Sponsors.

                

        

         

         

        
          
            
            

          

          
            65

            
              

            

          

          
            
            

          

        

        
 

         

         

        
          
            
            

          

          
            66

            
              

            

          

          
            
            

          

        

         

         

        PART
III

        Documents
to be delivered immediately prior to Admission

        and
at each Time of Sale, if any

         

        The following
documents are to be delivered by the Company to HM Treasury and to the Joint
Sponsors not later than 5.00 p.m. on the Dealing Day immediately preceding the
proposed date of Admission or Time of Sale, if any (where
indicated).

         

        The second
paragraph of Part II of Schedule 2 shall apply, mutatis mutandis, to the
documents to be delivered to HM Treasury by Deloitte LLP under items 5 and 6
below:

         

        1.         a
certified copy of the Resolutions;

         

        
          	
                  2.

                	
                  a certified
      copy of the resolution of the Board (or of the duly authorised committee
      of the Board) provisionally allotting the New Shares (and, if the said
      resolution is of such a committee, a certified copy of the resolution of
      the Board appointing such committee (if not previously delivered to the HM
      Treasury and the Joint Sponsors));

                

        

         

        
          	
                  3.

                	
                  a certified
      copy of the resolution of the Board of Directors (or of the duly
      authorised committee of the Board) approving the redemption of the
      Preference Shares (and, if the said resolution is of such a committee, a
      certified copy of the resolution of the Board appointing such committee
      (if not previously delivered to HM Treasury and to the Joint
      Sponsors));

                

        

         

        
          	
                  4.

                	
                  a letter
      addressed to HM Treasury and to the Joint Sponsors in the form set out in
      Part A of Schedule 1 dated as of the date of Admission (such letter also
      to be delivered at each Time of Sale, if
any);

                

        

         

        
          	
                  5.

                	
                  updating
      versions of the letters referred to in paragraphs 8, 9, 10, 18, 19, 20,
      21, 22 and 36 of Part II of this Schedule 2 to the extent in each case
      such letters related to the Prospectus and written opinions in the form
      previously provided to HM Treasury and the Joint Sponsors from Linklaters
      LLP, from Freshfields Bruckhaus Deringer LLP and from Dundas & Wilson
      CS LLP, all dated the date of Admission (and, in the case of the items
      referred to in paragraph 22, also referencing each Time of Sale, if
      any);

                

        

         

        
          	
                  6.

                	
                  as of each
      Time of Sale, if any, “bring down” letters with respect to the matters
      referred to in paragraphs 18 and 19 of Part II of this Schedule;
      and

                	
                

        

         

        
          	
                  7.

                	
                  such other
      documents as may be reasonably required by HM Treasury and/or the Joint
      Sponsors.

                

        

         

        Note:  It
is agreed that, other than in respect of the Linklaters opinion, the parties
will discuss (acting reasonably) the extent, to which it is necessary and
customary to update all of the documents referred to in paragraph
5.

         

         

        
          
            
            

          

          
            67

            
              

            

          

          
            
            

          

        

         

         

        SCHEDULE
3

        WARRANTIES

         

        PART
I

         

        Representations,
warranties and undertakings given on the date of this Agreement,

        on
the Posting Date, at each Time of Sale, if any, at the date of publication of
any Supplementary Prospectus and immediately prior to Admission

         

        1.         Compliance

         

        
          	
                  1.1

                	
                  Each Group
      Company has been duly incorporated and is validly existing as a company
      with limited liability under the laws of the country of its incorporation
      with full corporate power and authority to own, lease and operate the
      properties which it owns, leases and operates and to own its other assets
      and carry on its business as presently carried on and as intended to be
      carried on as described in the Prospectus, when
  published.

                

        

         

        
          	
                  1.2

                	
                  All licences,
      permissions, authorisations and consents which are material for carrying
      on the business of the Group have been obtained and are in full force and
      effect and, so far as the Company is aware, there are no circumstances
      which might lead to any of such licences, permissions, authorisations and
      consents being revoked, suspended, varied or refused renewal to an extent
      which would, or would be reasonably likely to, be (singly or in the
      aggregate) material in the context of the Placing and Open Offer, any
      subscription for New Shares by HM Treasury, Ordinary Shareholders or
      Placees, the redemption of the Preference Shares, Admission, or
      post-Admission dealing in the Ordinary
Shares.

                

        

         

        
          	
                  1.3

                	
                  All sums due
      in respect of the issued share capital of the Company at the date of this
      Agreement have been paid to and received by the Company.  No
      owner or holder of any of the share capital of the Company shall, with
      effect from Admission, have any right, in his capacity as such, in
      relation to the Group other than as set out in the memorandum and articles
      of association of the Company.

                

        

         

        
          	
                  1.4

                	
                  The Company
      is the beneficial owner free from all Adverse Interests of the shares it
      holds in each Material Subsidiary.

                

        

         

        
          	
                  1.5

                	
                  The Company
      and the Directors have at all times complied with the provisions of the
      Company’s memorandum and articles of association and the Companies Acts
      and, subject to the passing of the Resolutions, have or will have the
      right, power and authority under the memorandum and articles of
      association of the Company, or pursuant to resolution passed in general
      meeting, to enter into and perform this Agreement (including, without
      limitation, the power to pay commissions, fees, costs and expenses
      provided for in this Agreement), to make the Placing and Open Offer, to
      allot and issue the New Shares in certificated and uncertificated form, to
      redeem the Preference Shares, to issue the Issue Documents in the manner
      proposed without any sanction or consent by members of the Company or any
      class of them and, subject to Admission, there are no other consents,
      authorisations or approvals required by the Company in connection with the
      entering into and the performance of this Agreement, and the actions
      referred to in this paragraph 1.5 which have not been irrevocably and
      unconditionally obtained.  The Company’s existing Ordinary
      Shares are participating securities in, and have not been suspended from,
      CREST.

                

        

         

         

        
          
            
            

          

          
            68

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  1.6

                	
                  The allotment
      and issue of the New Shares, the Placing and Open Offer, the redemption of
      the Preference Shares, the issue and distribution of the Issue Documents
      and any other document by or on behalf of the Company in connection with
      Admission, the Placing and Open Offer or the redemption of the Preference
      Shares will comply in all material respects with all agreements to which
      any Group Company is a party or by which any such Group Company is bound
      and will comply with: (a) all applicable laws and regulations of the
      United Kingdom (including, without limitation, the Companies Acts, FSMA,
      the Listing Rules, the Prospectus Rules, the DTRs and the Admission and
      Disclosure Standards) and all applicable United States and Dutch laws and
      regulations (including without limitation the NFSA and the rules and
      regulations of Euronext) and (in all material respects) with, all
      applicable laws and regulations of any relevant jurisdiction; (b) the
      memorandum and articles of association of the Company; and (c) when
      published, the Working Capital Report; and will not exceed or infringe any
      restrictions or the terms of any contract, indenture, security,
      obligation, commitment or arrangement by or binding upon the board of
      directors of any Group Company or their respective properties, revenues or
      assets or result in the implementation of any right of pre emption or any
      other material provision thereof, or result in the imposition or variation
      of any material rights or obligations of any Group
  Company.

                

        

         

        1.7       The
statement set out in clause 2.1(J) is true and accurate and not
misleading.

         

        
          	
                  1.8

                	
                  The New
      Shares will, upon allotment, be free from all Adverse Interests and will
      rank pari passu in all respects with the existing issued shares in the
      issued share capital of the
Company.

                

        

         

        
          	
                  1.9

                	
                  The Company
      has complied in all material respects with the requirements of Euroclear
      and the Regulations.

                

        

         

        
          	
                  1.10

                	
                  No member of
      the Group or any person acting on its behalf has taken, directly or
      indirectly, any action designed to or which has constituted or which might
      reasonably be expected to cause or result in stabilisation or manipulation
      of the price of any security of the
Company.

                

        

         

        
          	
                  1.11

                	
                  The Company
      has not paid or agreed to pay to any person any compensation for
      soliciting another to purchase any New Shares (except as contemplated in
      this Agreement).

                

        

         

        
          	
                  1.12

                	
                  All
      information provided by the Company, its subsidiary undertakings or any of
      its or their officers or employees to HM Treasury and/or to the Joint
      Sponsors and/or the Auditors in connection with its or their due diligence
      enquiries or similar requests for information has been supplied in good
      faith and such information was when supplied, and remains, true and
      accurate in all material respects and no further information requested has
      been withheld, the absence of which might reasonably be considered to be
      material to such due diligence enquiries or requests for
      information.

                

        

         

        2.         Announcements

         

        
          	
                  2.1

                	
                  The Press
      Announcement does not contain any untrue statement of a material fact or
      omit to state a material fact necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading, provided that this

                

        

         

         

        
          
            
            

          

          
            69

            
              

            

          

          
            
            

          

        

         

         

        
          warranty shall not
cover information contained in the Press Announcement which is furnished in
writing to the Company by the Joint Sponsors expressly for use therein; and all
expressions of opinion, intention, belief or expectation of the Company or the
Directors contained in the Press Announcement are truly and honestly held and
made on reasonable grounds after due and careful enquiry.

        

         

        
          	
                  2.2

                	
                  With respect
      to all Previous Announcements, all statements of fact contained therein
      were at the date of the relevant Previous Announcement and, save to the
      extent corrected, amended or supplemented in any document or announcement
      issued or made by or on behalf of the Company or any member of the Group
      subsequent thereto, remain true and accurate in all material respects and
      not misleading in any material respect and all estimates, expressions of
      opinion or intention or expectation of the Directors contained therein
      were made on reasonable grounds and were honestly held by the Directors
      and were fairly based and there were no facts known (or which could on
      reasonable enquiry have been known by the Directors) the omission of which
      would make any statement of fact or estimate or statement or expression of
      opinion, intention or expectation in any of the Previous Announcements
      misleading and all Previous Announcements complied with the memorandum and
      articles of association of the Company, the Listing Rules, the DTRs, the
      Prospectus Rules, the Companies Acts, FSMA, all applicable rules and
      requirements of the London Stock Exchange, the FSA and Euronext, the NFSA
      and all applicable US and Dutch laws and regulations and (in all material
      respects) all other applicable requirements of statute, statutory
      regulation or any regulatory body.  There is no existing profit
      forecast outstanding in respect of the Company, the Group taken as a
      whole, or any member thereof.

                

        

         

        3.         Accounts

         

        3.1       The
Accounts:

         

        
          	
                   
      

                	
                  (A)

                	
                  have been
      prepared and audited in accordance and comply with IFRS, the Companies
      Acts and all applicable laws and
regulations;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  give a true
      and fair view of the financial condition and of the state of affairs of
      the Company and the Group as at the end of each of the relevant financial
      periods (including the Accounts Date) and of the profit, loss, cash flow
      and changes in equity of the Company and the Group for such periods;
      and

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  either made
      proper provision for, or, where appropriate, in accordance with IFRS,
      include a note in respect of all liabilities or commitments, whether
      actual, deferred, contingent or disputed, of the
  Group.

                

        

         

        3.2       The
Interim Accounts:

         

        
          	
                   
      

                	
                  (A)

                	
                  have been
      prepared in accordance with, and comply with, IFRS and all applicable laws
      and regulations;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  present
      fairly in all material respects the financial position of the Group as at
      30 June 2008 and the results of operations and the cash flows of the Group
      for the financial period ended on 30 June 2008;
  and

                

        

         

         

        
          
            
            

          

          
            70

            
              

            

          

          
            
            

          

        

         

         

        
          	
                   
      

                	
                  (C)

                	
                  either made
      proper provision for, or, where appropriate, in accordance with IFRS,
      include a note in respect of all liabilities or commitments, whether
      actual, deferred, contingent or disputed, of the
  Group.

                

        

         

        3.3       The
ABN Amro Accounts:

         

        
          	
                   
      

                	
                  (A)

                	
                  have been
      prepared and audited in accordance and comply with IFRS, applicable Dutch
      law and all applicable laws and
regulations;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  give a true
      and fair view of the financial condition and of the state of affairs of
      ABN Amro and its subsidiary undertakings as at the end of each of the
      relevant financial periods (including the Accounts Date) and of the
      profit, loss, cash flow and changes in equity of ABN Amro and its
      subsidiary undertakings for such periods;
and

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  either made
      proper provision for, or, where appropriate, in accordance with IFRS,
      include a note in respect of all liabilities or commitments, whether
      actual, deferred, contingent or disputed of ABN Amro and its subsidiary
      undertakings.

                

        

         

        
          	
                  3.4

                	
                  The Directors
      have established procedures which provide a reasonable basis for them to
      make proper judgements on an ongoing basis as to the financial position
      and prospects of the Company and each Group
  Company.

                

        

         

        
          	
                  3.5

                	
                  There are no,
      and during the past five years have been no: (i) material weaknesses in
      the Company’s internal controls over financial reporting (whether or not
      remediated) of the Company or the Group; (ii) changes in the Company’s
      internal controls over financial reporting of the Company or the Group
      that have materially adversely affected, or would be reasonably likely to
      materially adversely affect, the Company’s internal controls over
      financial reporting of the Company or the Group; or (iii) fraud that
      involves any current member of management of the Company or (so far as the
      Company is aware) of any member of the Group and no material fraud that
      involves any employee of the Company or (so far as the Company is aware)
      of any member of the Group.

                

        

         

        4.         Guarantees,
indemnities, borrowings and default

         

        4.1       Save
for:

         

        
          	
                   
      

                	
                  (A)

                	
                  guarantees or
      indemnities given by any Group Company in the ordinary course of business;
      and

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  any
      indemnities given by the Company to HM Treasury and/or the Joint
      Sponsors,

                

        

         

        no
Group Company has given or has agreed to give any guarantee or indemnity or
similar obligation in favour of a third party and no Group Company has any
current or known future liability, howsoever arising which, in any of the
foregoing cases, would, or would be reasonably likely to, be (singly or in the
aggregate) material in the context of the Placing and Open Offer, any
subscription for New Shares by HM Treasury, Ordinary Shareholders or Placees,
the redemption of the Preference Shares, Admission or post-Admission dealings in
the Ordinary Shares.

         

         

        
          
            
            

          

          
            71

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  4.2

                	
                  No event has
      occurred nor have any circumstances arisen (and the making and completion
      of the Placing and Open Offer. the redemption of the Preference Shares and
      the allotment and issue of the New Shares will not give rise to any such
      event or circumstance) so that any person is or would be entitled, or
      could, with the giving of notice or lapse of time or the fulfilment of any
      condition or the making of any determination, become entitled, to require
      repayment before its stated maturity of, or to take any step to enforce
      any security for, any indebtedness of any member of the Group and no
      person to whom any indebtedness, of any member of the Group which is
      payable on demand is owed has demanded or threatened to demand repayment
      of, or taken or threatened to take any step to enforce any guarantee,
      indemnity or other security for, the same, which, in any of the foregoing
      cases, would, or would be reasonably likely to, be (singly or in the
      aggregate) material or have material consequences in each case in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealings in the Ordinary
      Shares or the business of the
Group.

                

        

         

        
          	
                  4.3

                	
                  There are no
      companies, undertakings, partnerships or joint ventures in existence in
      which any Group Company has an ownership interest but whose results are
      not consolidated with the results of the Group, but whose default would
      affect the indebtedness or increase the contingent liabilities of the
      Group to an extent which would, or would be reasonably likely to, be
      (singly or in the aggregate) material in the context of the Placing and
      Open Offer, any subscription of New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealing in the Ordinary
  Shares.

                

        

         

        
          	
                  4.4

                	
                  No event or
      circumstance exists, has occurred or arisen or, so far as the Company is
      aware, is about to occur which constitutes or results in, or would with
      the giving of notice and/or lapse of time and/or the making of a relevant
      determination, constitute, or result in, termination of or a default or
      the acceleration or breach of any obligation under any agreement,
      instrument or arrangement to which any Group Company is a party or by
      which any such Group Company or any of its properties, revenues or assets
      are bound, in any of the foregoing cases to an extent which would, or
      would be reasonably likely to, be (singly or in the aggregate) material in
      the context of the Placing and Open Offer, any subscription for New Shares
      by HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares.

                

        

         

        5.         Taxation

         

        
          	
                   
      

                	
                  No stamp
      duty, SDRT or other issuance or transfer taxes or similar duties are
      payable in connection with the allotment, issue and delivery of the New
      Shares or the redemption of the Preference Shares by the Company in
      accordance with the terms of this Agreement, save for any stamp duty or
      SDRT payable under sections 67, 70, 93 or 96 of the Finance Act 1986 in
      relation to the issue of the New
Shares.

                

        

         

        6.         Intellectual
property

         

        
          	
                  6.1

                	
                  Except to an
      extent that would not (singly or in the aggregate) be material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares, and so far as the Company is aware, the Group does not infringe
      the Intellectual Property Rights of any third party nor so far as the
      Company is aware does any third party infringe the Intellectual Property
      Rights owned or used by the Group.

                

        

         

         

        
          
            
            

          

          
            72

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  6.2

                	
                  All material
      Intellectual Property Rights used by the Group are either legally or
      beneficially owned by the Group in all material respects or are used under
      a licence and are not subject to any Adverse Interests to an extent that
      would or might (singly or in the aggregate) be material in the context of
      the Placing and Open Offer, any subscription for New Shares by HM
      Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares.

                

        

         

        
          	
                  6.3

                	
                  Save as would
      not (singly or in the aggregate) be material in the context of the Placing
      and Open Offer, any subscription for New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealings in the Ordinary Shares, (i) all
      Intellectual Property Rights registered in the name of a Group Company (if
      any) are beneficially owned by it and subsisting and if granted not
      subject to revocation and (ii) all requisite registration and renewal fees
      in respect thereof have been duly and timeously
  paid.

                

        

         

        
          	
                  6.4

                	
                  Save as would
      not (singly or in the aggregate) be material in the context of the Placing
      and Open Offer, any subscription for New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealings in the Ordinary Shares, (i) all
      Intellectual Property Rights owned and used or reasonably likely to be
      used by the Group and capable of legal protection are subject to
      appropriate and enforceable protection (including, where reasonably
      appropriate, by registration), and (ii) so far as the Company is aware
      there is no restriction of the Group’s rights to use any Intellectual
      Property Rights owned by or licensed to the Company to engage in any of
      the activities presently or proposed to be undertaken by
    it.

                

        

         

        7.         Insurance

         

        The Group is
insured to adequate levels against all risks which the Company reasonably
believes to be commonly insured against by persons carrying on the same or
similar businesses as those carried on by the Group and against all risks
against which the Group might reasonably be expected to insure in the particular
circumstances of the businesses carried on by each Group Company, all such
insurances are in full force and effect and to the best knowledge, information
and belief of the Company, there are no circumstances which could render any
such insurances void or voidable and there is no material insurance claim,
pending, threatened or outstanding against any Group Company and all premiums
due in respect of all insurances have been duly paid.

         

        8.         Rating

         

        Except as publicly
announced the Company has not received notice of any intended or potential
downgrading of  the rating assigned to any of the Company’s (or any
other member of its Group’s) credit or debt by a ratings agency.

         

         

        
          
            
            

          

          
            73

            
              

            

          

          
            
            

          

        

         

         

        9.         Insolvency

         

        
          	
                  9.1

                	
                  No Group
      Company is unable to pay its debts within the meaning of section 123 of
      the Insolvency Act 1986 or is otherwise
  insolvent.

                

        

         

        
          	
                  9.2

                	
                  Save in the
      context of a solvent voluntary winding up or otherwise as would not
      (singly or in the aggregate) be material in the content of the Placing and
      Open Offer, any subscription for New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealings in the Ordinary Shares, no order has
      been made, petition presented or resolutions passed for the winding up of
      any Group Company and no meeting has been convened for the purpose of
      winding up any Group Company.  No Group Company has been a party
      to any transaction which could be avoided in a winding
  up.

                

        

         

        
          	
                  9.3

                	
                  No steps have
      been taken for the appointment of an administrator or receiver (including
      an administrative receiver) of all or any part of the assets of any Group
      Company.

                

        

         

        
          	
                  9.4

                	
                  By reason of
      actual or anticipated financial difficulties, no Group Company has
      commenced negotiations with its creditors or any class of its creditors
      with a view to rescheduling any of its indebtedness or has made or
      proposed any arrangement or composition with its creditors or any class of
      its creditors.

                

        

         

        10.       Regulatory

         

        
          	
                  10.1

                	
                  Each Group
      Company required to be licensed (as a bank or otherwise) is duly licensed
      in its jurisdiction of incorporation and domicile and, except as would not
      reasonably be expected to be material, is duly licensed or authorised in
      each other jurisdiction where it is required to be licensed or authorised
      to conduct its business.

                

        

         

        
          	
                  10.2

                	
                  Save as
      otherwise as would not (singly or in the aggregate) be material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares, the Company is not subject to any special or additional
      surveillance or supervision by the FSA or to any special or additional
      reporting requirements in relation to its assets, liquidity position,
      funding position or otherwise and the Company has not been subject to any
      visits, beyond customary visits, by the
FSA.

                

        

         

        
          	
                  10.3

                	
                  The
      operations of each Group Company are and have been conducted at all times
      in material compliance with the money laundering statutes of all
      jurisdictions, the rules and regulations thereunder and any related or
      similar rules, regulations or guidelines, issued, administered or enforced
      by any governmental agency (collectively, the “Money Laundering Laws”)
      and no action, suit or proceeding by or before any court or governmental
      agency, authority or body or any arbitrator involving any Group Company
      with respect to the Money Laundering Laws is pending or, to the best
      knowledge of the Company,
threatened.

                

        

         

        
          	
                  10.4

                	
                  None of the
      Company, any other member of the Group or, to the knowledge of the
      Company, any director, officer, agent, employee or Affiliate of the
      Company is currently subject to any sanctions administered by the U.S.
      Department of the Treasury (“OFAC”)
  

                

        

         

         

        
          
            
            

          

          
            74

            
              

            

          

          
            
            

          

        

         

         

        
          or any similar
sanctions imposed by the European Union, the United Nations or any other body,
governmental or other, to which the Company or ay of its Affiliates is subject
(collectively, “other economic
sanctions”); and the Company will not directly or indirectly use the
proceeds of the Placing and Open Offer, or lend, contribute or otherwise make
available such proceeds to any other member of the Group, joint venture partner
or other person or entity, for the purpose of financing the activities of any
person currently subject to any sanctions administered by OFAC or any other
economic sanctions.

        

         

        
          	
                  10.5

                	
                  None of the
      Company, any other member of the Group or, to the knowledge of the
      Company, any director, officer, agent, employee or Affiliate of the
      Company, is aware of or has taken any action, directly or indirectly, that
      could result in a violation by such persons of the U.S. Foreign Corrupt
      Practices Act of 1977, as amended, or the rules and regulations thereunder
      (the FCPA) (including, without limitation, making use of the mail or any
      means or instrument of interstate commerce corruptly in furtherance of an
      offer, payment, promise to pay or authorisation of the payment of any
      money, or other property, gift, promise to give, or authorisation of the
      giving of anything of value to any “foreign official” (as such term is
      defined in the FCPA) or any foreign political office, in contravention of
      the FCPA), the OECD Convention on Bribery of Foreign Public Officials in
      International Business Transactions (the OECD Convention) or any similar
      law or regulation, to which the Company, any other member of the Group,
      any director, officer, agent, employee of any member of the Group or, to
      the knowledge of the Company, any Affiliate is subject; and the Company,
      each member of the Group and, to the knowledge of the Company, its
      Affiliates have conducted their businesses in compliance with the FCPA,
      the OECD Convention and any applicable similar law or regulation and have
      instituted and maintain policies and procedures designed to ensure, and
      which are reasonably expected to continue to ensure, continued compliance
      therewith.

                

        

         

        11.       United
States Securities Regulations

         

        
          	
                  11.1

                	
                  The Company
      is a “foreign issuer” (as defined in Regulation S under the Securities
      Act).

                

        

         

        
          	
                  11.2

                	
                  The Company
      reasonably believes that there is no “substantial US market interest” (as
      defined in Rule 902(j) of Regulation S under the Securities Act) in any of
      the New Shares.

                

        

         

        
          	
                  11.3

                	
                  The Company
      does not believe that it is and does not expect to become (whether as a
      result of the receipt and application of the proceeds of the sale of the
      New Shares or otherwise) a "passive foreign investment company" within the
      meaning of section 1297 of the US Internal Revenue Code of
      1986.

                

        

         

        
          	
                  11.4

                	
                  The Company
      is not, and, immediately after giving effect to the offering and sale of
      the New Shares and the application of the proceeds thereof as set forth in
      the Draft Prospectus and, when published, the Prospectus, will not be, an
      "investment company" as such term is defined in the US Investment Company
      Act of 1940.

                

        

         

        
          	
                  11.5

                	
                  There are no
      persons with registration rights or other similar rights to have any
      shares registered by the Company under the Securities
  Act.

                

        

         

         

        
          
            
            

          

          
            75

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  11.6

                	
                  During the
      period of six months after Admission, the Company will not, and will not
      permit any of its Affiliates to, resell any New Shares which constitute
      "restricted securities" under Rule 144 that have been reacquired by any of
      them other than in transactions that meet the applicable requirements of
      Regulation S.

                

        

         

         

        
          
            
            

          

          
            76

            
              

            

          

          
            
            

          

        

         

        
 

         

        PART
II

         

        Representations,
warranties and undertakings given on the Posting Date, on the date of
publication of each Supplementary Prospectus, at each Time of Sale, if any, and
immediately prior to Admission

         

        All Warranties in
paragraphs 5 to 13 and in paragraph 14 of this Part II of Schedule 3 are
qualified by reference to matters which are fairly disclosed in the Prospectus
or if such Warranties are given on or after the publication of any Supplementary
Prospectus, as fairly disclosed in the Prospectus as supplemented by such
Supplementary Prospectus.

         

        1.         The
Issue Documents

         

        
          	
                  1.1

                	
                  The Issue
      Documents contain all particulars and information required by, and comply
      in all respects with the memorandum and articles of association of the
      Company, the Companies Acts, FSMA, the Listing Rules (in case of the
      Circular including, without limitation, Chapters 10, 11 and 13 of the
      Listing Rules (as applicable)), the DTRs, the Prospectus Rules, the City
      Code on Takeovers and Mergers, the NFSA, all applicable rules and
      requirements of the London Stock Exchange, the FSA and Euronext and all
      applicable US and Dutch laws and regulations and all other applicable
      requirements of statute, statutory regulation or any regulatory
      body.

                

        

         

        
          	
                  1.2

                	
                  The Issue
      Documents (and any amendments or supplements thereto) do not and will not
      contain any untrue statement of a material fact or omit to state any
      material fact necessary to make the statements therein, in the light of
      the circumstances under which they were made, not
    misleading.

                

        

         

        
          	
                  1.3

                	
                  All
      expressions of opinion, intention or expectation contained in any Issue
      Document are, and were on the respective dates of such Issue Document,
      honestly held by the Directors and are fairly based and have been made on
      reasonable grounds after due and careful consideration and
      enquiry.

                

        

         

        
          	
                  1.4

                	
                  There are no
      facts or matters known, or which could on reasonable enquiry have been
      known, to the Company or any of the Directors omitted from any Issue
      Document, the omission of which would make any statement of fact or
      expression of opinion, intention or expectation contained in a Issue
      Document misleading.

                

        

         

        
          	
                  1.5

                	
                  Having regard
      to the particular nature of the Company and the Group and the Company’s
      share capital and the other matters referred to in section 87A of the
      FSMA, the Issue Documents contain all information about the Group which is
      or might be material for disclosure to potential investors and their
      professional advisers and which they would reasonably require and
      reasonably expect to find there for the purpose of making an informed
      assessment of the matters specified in section 87A(2) of the
      FSMA.

                

        

         

        
          	
                  1.6

                	
                  There is no
      fact or circumstance which is not disclosed with sufficient prominence in
      the Issue Documents which ought to be taken into account by the UK Listing
      Authority or Euronext in considering the application for listing of the
      New Shares.

                

        

         

        
          	
                  1.7

                	
                  The Placing
      and Open Offer (including without limitation, the creation, allotment and
      issue of the New Shares and the publication and distribution of the Issue
      Documents) 

                

        

         

         

        
          
            
            

          

          
            77

            
              

            

          

          
            
            

          

        

         

         

        
          has been and will
be conducted in all material respects in accordance with the terms and
conditions of the Issue Documents and the Company has complied and will comply
with all laws, rules and regulations applicable to the Placing and Open Offer in
each jurisdiction in which the New Shares are offered.

        

         

        2.         Provision
of Information

         

        
          	
                  2.1

                	
                  The pro forma
      financial information on the Group set out, or incorporated by reference,
      in the Prospectus has been duly and carefully prepared on the bases set
      out in the Prospectus, in accordance with the Prospectus Rules and is
      presented on a basis consistent with the accounting principles, standards
      and practices normally applied by the
Company.

                

        

         

        
          	
                  2.2

                	
                  The summary
      and selected financial information on the Group set out in the Prospectus
      has been duly and carefully extracted from the Accounts and has been
      properly compiled on a basis consistent with the accounting policies
      applied in the Accounts.

                

        

         

        
          	
                  2.3

                	
                  The
      capitalisation and indebtedness table set out in the Prospectus has been
      properly compiled on a basis that is consistent with the accounting
      policies applied in the Accounts.

                

        

         

        
          	
                  2.4

                	
                  No Group
      Company has any off balance sheet financing, investment or liability
      material for disclosure in the Prospectus that is not so fairly
      disclosed.

                

        

         

        
          	
                  2.5

                	
                  There are no
      facts or circumstances, which have not been included the Prospectus or any
      other information provided to the UK Listing Authority, which would cause
      the UK Listing Authority not to be satisfied that the Company’s capital
      adequacy is regulated by the FSA or suitably regulated by another
      regulatory body.

                

        

         

        
          	
                  2.6

                	
                  The
      particulars of the employees schemes contained in the Prospectus or, when
      published, any Supplementary Prospectus and, in particular, the
      information as to the dates on which options or other rights may be
      exercised and the number of options or other rights granted (conditionally
      or otherwise) on or before the date of this Agreement are accurate in all
      material respects and not
misleading.

                

        

         

        3.         Working
capital report

         

        
          	
                  3.1

                	
                  All
      information supplied by the Company to the Joint Sponsors and/or the
      Auditors for the purposes of the Working Capital Report and/or any other
      report prepared by the Auditors in connection with the Placing and Open
      Offer and in respect of any updates thereto, has been supplied to them in
      good faith; and such information was when supplied and remains true and
      accurate in all material respects and not misleading, and no information
      has been withheld the absence of which might reasonably have affected the
      contents of the Working Capital Report and/or any other such
      report.

                

        

         

        
          	
                  3.2

                	
                  The Working
      Capital Report has been approved by the Directors or a duly authorised
      committee thereof and has been made after due and careful enquiry and
      consideration, all statements of fact therein are true and accurate in all
      material respects and not misleading, all expressions of opinion,
      intention or expectation contained therein will be made on reasonable
      grounds after due and careful enquiry and consideration and
    

                

        

         

         

        
          
            
            

          

          
            78

            
              

            

          

          
            
            

          

        

         

         

        
          honestly held by
the Directors and fairly based, there are no other facts known or which could on
reasonable enquiry have been known to the Company on the date of the Working
Capital Report or the date of the Prospectus or at Admission, the omission of
which would make any such statement or expression in the Working Capital Report
misleading, all the bases and assumptions on which the Working Capital Report
will be based are and will be reasonable and, so far as the Company is aware,
there are no other assumptions on which the Working Capital Report ought to have
been based which will not have been made.

        

         

        
          	
                  3.3

                	
                  The working
      capital statement contained in the Prospectus is true and
      accurate.

                

        

         

        4.         Derogation

         

        Each statement made
by or on behalf of the Company (and of which the Company is aware) in connection
with any application to the London Stock Exchange or the UK Listing Authority or
Euronext for information to be omitted from the Prospectus is true, complete and
accurate and not misleading. There is no information which has not been
disclosed in writing to the London Stock Exchange, the UK Listing Authority or
Euronext in connection with such an application which by its omission makes such
a statement untrue, inaccurate or misleading.

         

        
          	
                  5.

                	
                  Compliance

                

        

         

        
          	
                  5.1

                	
                  Each Group
      Company has conducted its business in all material respects in accordance
      with all applicable laws and regulations of the United Kingdom and all
      relevant foreign countries or authorities, and there is no order, decree
      or judgment of any court or any governmental or other competent authority
      or agency of the United Kingdom or any foreign country outstanding against
      any Group Company or any person for whose acts any Group Company is
      vicariously liable which in any of the foregoing cases would, or would be
      reasonably likely to, be (singly or in the aggregate) material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares.

                

        

         

        
          	
                  5.2

                	
                  This
      Agreement and the other agreements to be entered into by the Company in
      connection with Admission, the redemption of the Preference Shares and the
      Placing and Open Offer have been or will be duly authorised, executed and
      delivered on behalf of the Company and assuming due authorisation,
      execution and delivery by the other parties thereto, do or will constitute
      valid and binding obligations of the Company enforceable against it in
      accordance with their terms (subject to mandatory rules of law relating to
      insolvency).

                

        

         

        
          	
                  5.3

                	
                  Other than
      pursuant to options or other rights granted under the Group’s share option
      schemes and save as otherwise would not (singly or in the aggregate) be
      material in the context of the Placing and Open Offer, any subscription
      for New Shares by HM Treasury, Ordinary Shareholders or Placees, the
      redemption of the Preference Shares, Admission or post-Admission dealing
      in the Ordinary Shares, there are no rights (conditional or otherwise) (i)
      to require the issue of any shares or other securities (including without
      limitation, any loan capital) or securities convertible into or
      exchangeable for, or warrants, rights or options to purchase, or
      obligations, commitments or intentions to create the same or (ii) to sell
      or otherwise dispose of any shares or other securities of a Group Company
      (other than to another Group Company, as the case may be) which are
      outstanding and in force.

                

        

         

         

        
          
            
            

          

          
            79

            
              

            

          

          
            
            

          

        

         

         

        6.         Position
since Accounts Date

         

        
          	
                  6.1

                	
                  Since the
      Accounts Date and save as disclosed in the Interim Accounts, the Interim
      Management Statement, the Previous Prospectus, the Press Announcement or
      via a Regulatory Information
Service:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  each Group
      Company has carried on its respective business in the ordinary course in
      all material respects, and there has been no Material Adverse
      Effect;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  there has
      been no material impairment to charges in respect of any assets of the
      Company or of any Group Company, and there has been no increase in the
      provisions in respect of losses in relation to any mortgage, loans or
      other assets of the Company or of any Group Company that, in any of the
      foregoing cases, would, or would be reasonably likely to, be (singly or in
      the aggregate) material in the context of the Placing and Open Offer, any
      subscription for New Shares by HM Treasury, Ordinary Shareholders or
      Placees, the redemption of the Preference Shares, Admission or
      post-Admission dealings in the Ordinary
Shares;

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  save for any
      utilisation by the Company of the short-term liquidity measures being made
      available by the Bank of England (in the form notified by HM Government to
      the European Commission on 12 October 2008), no Group Company has,
      otherwise than in the ordinary course of business, entered into or assumed
      or incurred any contract, commitment (whether in respect of capital
      expenditure or otherwise), borrowing, indebtedness in the nature of
      borrowing, guarantee, liability (including contingent liability) or any
      other agreement or obligation that, in any of the foregoing cases, would,
      or would be reasonably likely to, be (singly or in the aggregate) material
      in the context of the Placing and Open Offer, any subscription for New
      Shares by HM Treasury, Ordinary Shareholders or Placees, the redemption of
      the Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares;

                

        

         

        
          	
                   
      

                	
                  (D)

                	
                  other than in
      the ordinary course of business, no debtor has been released by the
      Company to an extent which (singly or in the aggregate) is material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealings in the Ordinary
      Shares on terms that he pays less than the book value of his debt and no
      debt of such material amount owing to the Company or any Group Company has
      been deferred, subordinated or written off or has proven irrecoverable to
      any material extent;

                

        

         

        
          	
                   
      

                	
                  (E)

                	
                  no Group
      Company has been involved in any transaction (other than any transaction
      provided for in this Agreement or a previous placing and open offer
      agreement between the parties entered into as of 13 October 2008) which
      has resulted or would be reasonably likely to result (singly or in the
      aggregate) in any liability for Tax on the Company or any Group Company,
      which, in any of 

                

        

         

         

        
          
            
            

          

          
            80

            
              

            

          

          
            
            

          

        

         

         

        
          the foregoing
cases, would, or would be reasonably likely to, be (singly or in the aggregate)
material in the context of the Placing and Open Offer, any subscription for New
Shares by HM Treasury, Ordinary Shareholders or Placees, the redemption of the
Preference Shares, Admission or post-Admission dealing in the Ordinary Shares
other than a transaction in the ordinary course of business;
and

        

         

        
          	
                   
      

                	
                  (F)

                	
                  no Group
      Company has been in default in any material respect under any agreement or
      arrangement to which any Group Company is a party and which is or is
      reasonably likely to be material and there are no circumstances likely to
      give rise to such default, to an extent which (singly or in the aggregate)
      would, or would be reasonably likely to, be material in the context of the
      Placing and Open Offer, any subscription for New Shares by HM Treasury,
      Ordinary Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealing in the Ordinary
  Shares.

                

        

         

        
          	
                  6.2

                	
                  Since the
      Accounts Date, and save as disclosed in the Interim Management Statement,
      the Previous Prospectus or the Press Announcement, there has been no
      significant change in the trading or financial results of ABN Amro and its
      subsidiary undertakings, taken as a whole which is material in the context
      of the financial results of the
Group.

                

        

         

        7.         Litigation

         

        
          	
                  7.1

                	
                  No Group
      Company nor any of its officers or agents or employees is involved, or has
      during the recent past (being not less than 12 months ending on the date
      of this Agreement) been involved in any civil, criminal, arbitration,
      administrative, governmental or other proceedings or governmental
      regulatory or similar investigation or enquiry, whether as plaintiff,
      defendant or otherwise which, by itself or with other proceedings, which
      would be, or is reasonably likely to be, material in the context of the
      Placing and Open Offer, any subscription for New Shares by HM Treasury,
      Ordinary Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealing in the Ordinary
  Shares.

                

        

         

        
          	
                  7.2

                	
                  No litigation
      or arbitration, administrative, governmental, civil, criminal or other
      proceedings nor governmental, regulatory or similar investigation or
      enquiry are pending or have been threatened by or against any Group
      Company or any of their respective officers, agents or employees in
      relation to the affairs of any Group Company and, to the best of the
      knowledge, information and belief of the Company and the Directors, there
      are no facts or circumstances likely to give rise to any such litigation
      or arbitration, administrative, criminal, governmental, civil, or other
      proceedings or governmental, regulatory or similar investigation or
      enquiry, in each case, to an extent which, by itself or with other
      proceedings, would be, or is reasonably likely to be, material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealing in the Ordinary
      Shares.

                

        

         

        
          	
                  7.3

                	
                  No Group
      Company nor any of its officers or agents or employees in relation to the
      affairs of any Group Company has been a party to any undertaking or
      assurance given to any court or governmental agency or the subject of any
      injunction which in any of the foregoing cases is still in force and
      which, by itself or with other proceedings,
  which

                

        

         

         

        
          
            
            

          

          
            81

            
              

            

          

          
            
            

          

        

         

         

        
          would be, or is
reasonably likely to be, material in the context of the Placing and Open Offer,
any subscription for New Shares by HM Treasury, Ordinary Shareholders or
Placees, the redemption of the Preference Shares, Admission or post-Admission
dealing in the Ordinary Shares.

        

         

        
          	
                  7.4

                	
                  For the
      purpose of this paragraph 7, proceedings includes any action by any
      governmental, public or regulatory authority (including any investment
      exchange or any authority or body which regulates investment business or
      takeovers or which is concerned with regulatory, licensing, competition,
      taxation matters or matters concerning Intellectual Property
      Rights).

                

        

         

        8.         Arrangements
with directors and shareholders

         

        
          	
                  8.1

                	
                  Save for the
      articles of association of the Company, any service agreement with a
      Director and any contracts entered into in the ordinary course of
      business, there are no existing contracts or engagements or other
      arrangements to which any Group Company is a party and in which any of the
      directors of any Group Company and/or any associate of any of them is
      interested which would be material in the context of the Placing and Open
      Offer, any subscription for New Shares by HM Treasury, the redemption of
      the Preference Shares, Admission or post-Admission dealings in the
      Ordinary Shares; and to the extent that any such contracts, engagements or
      other arrangements exist they comply with the related party requirements
      of the Listing Rules of the UK Listing Authority (or other relevant
      regulator).

                

        

         

        
          	
                  8.2

                	
                  No
      Shareholder has any rights, in his capacity as such, in relation to any
      Group Company other than as set out in the articles of association of the
      Company.

                

        

         

        
          	
                  8.3

                	
                  The Company
      is not aware of any claim, demand or right of action against any Group
      Company otherwise than for accrued remuneration in accordance with their
      contracts of employment by any officer or employee (or former officer or
      employee) of the Group and/or any associate of them in any of the
      foregoing cases, to an extent that (singly or in the aggregate) would, or
      would be reasonably likely to, be material in the context of the Placing
      and Open Offer, any subscription for New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealing in the Ordinary
  Shares.

                

        

         

        
          	
                  8.4

                	
                  So far as the
      Company is aware, no Director nor any person connected with such Director
      nor any of the employees of the Group nor any person connected with any
      such employee is in breach of any restrictive covenant, employment
      agreement or contract for services which would, or would be reasonably
      likely to, affect the Company or any other Group Company and so far as the
      Company is aware, there are no circumstances which might give rise to any
      claim of such a breach or any other dispute with any employer, former
      employer or other person for whom any Director or employee of the Group
      provides or has provided services, in any of the foregoing cases to an
      extent that (singly or in the aggregate) would, or would be reasonably
      likely to, be material in the context of the Placing and Open Offer, any
      subscription for New Shares by HM Treasury, Ordinary Shareholders or
      Placees, the redemption of the Preference Shares, Admission or
      post-Admission dealing in the Ordinary
Shares.

                

        

         

        
          	
                  8.5

                	
                  For the
      purpose of this paragraph 8, associate has the
  meaning:

                

        

         

         

        
          
            
            

          

          
            82

            
              

            

          

          
            
            

          

        

         

         

        
          	
                   
      

                	
                  (A)

                	
                  in the case
      of an individual, given to “connected person” under section 96B(2) of
      FSMA; and

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  in the case
      of a body corporate, given to “associated company” in sections 416 et seq. of the Income
      and Corporation Taxes Act 1988.

                

        

         

        9.         Information
technology

         

        Save as otherwise
would not (singly or in the aggregate) be material in the context of the Placing
and Open Offer, any subscription for New Shares by HM Treasury, Ordinary
Shareholders or Placees, the redemption of the Preference Shares, Admission or
post-Admission dealings in the Ordinary Shares:

         

        
          	
                   
      

                	
                  (A)

                	
                  systems used
      or planned to be used in connection with the businesses of the Group are
      all the systems required for the present needs of the business of the
      Group, including, without limitation, as to system capacity and ability to
      process current peak volumes and anticipated volumes in a timely
      manner;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  in the 12
      months prior to the date of this Agreement, the Group not suffered any
      failures or bugs in or breakdowns of any systems used in connection with
      the businesses of the Group which have caused any substantial disruption
      or interruption in or to its use and the Company is not aware of any fact
      or matter which may so disrupt or interrupt or affect the use of such
      equipment following the date of this Agreement on the same basis as it is
      presently used;

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  all hardware
      comprised in any systems, excluding any software and any external
      communications lines, used in the businesses of the Group are owned
      (except those items which are subject to finance leases) and operated by
      and are under the control of a Group Company and are not wholly or partly
      dependent on any facilities which are not under the ownership, operation
      or control of the Group or (where governed by outsourcing or other similar
      arrangements) are otherwise openly accessible to the Group;
      and

                

        

         

        
          	
                   
      

                	
                  (D)

                	
                  each Group
      Company is validly licensed to use the software used in its
      business.

                

        

         

        10.       Share
Schemes

         

        
          	
                   
      

                	
                  Save as
      otherwise would not (singly or in the aggregate) be material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of the
      Preference Shares, Admission or post-Admission dealings in the Ordinary
      Shares, except for options or other rights granted under the Company’s
      approved share option schemes or other employee incentive arrangements in
      accordance with normal practice, there are no arrangements which
      (contingently or otherwise) may give rise to an obligation on the Company
      or any Group Company to allot, issue or grant any relevant securities as
      defined in section 80 of the CA
1985.

                

        

         

         

        
          
            
            

          

          
            83

            
              

            

          

          
            
            

          

        

         

         

        11.       Pension
schemes

         

        Save as would
otherwise not (singly or in the aggregate) be material in the context of the
Placing and Open Offer, any subscription for New Shares by HM
Treasury, Ordinary Shareholders or Placees, the redemption of the Preference
Shares, Admission or post-Admission dealings in the Ordinary Shares, the Group
is not paying, and is not under any liability (actual or contingent) to pay or
secure (other than by payment of employers’ contributions under national
insurance or social security legislation), any pension or other benefit on
retirement, death or disability or on the attainment of a specified age or on
the completion of a specified number of years of service.

         

        12.       Agreements

         

        Save otherwise as
would not (singly or in the aggregate) be material in the context of the Placing
and Open Offer, any subscription for New Shares by HM
Treasury, Ordinary Shareholders or Placees, the redemption of the Preference
Shares, Admission or post-Admission dealings in the Ordinary Shares, there is no
agreement, undertaking, instrument or arrangement requiring the creation,
allotment, issue, redemption or repayment, or the grant to any person of the
right (whether conditional or not) to require the allotment, issue, redemption
or repayment, of any shares in the capital of the Company or a Material
Subsidiary (including, without limitation, an option or right of pre-emption or
conversion).

         

        13.       Regulatory

         

        
          	
                  13.1

                	
                  No Group
      Company nor any of its officers has failed to comply with any statutory
      provision or any rules, regulations, directions, requirements, notices and
      provisions of the FSA or any other regulatory body applying to such Group
      Company in relation to its business including (without limitation) in
      respect of the maintenance of its Capital Resources Requirement and
      satisfaction of the Overall Financial Resources Rule and any equivalent
      capital requirements in any other jurisdiction that are applicable to any
      Group Company; no obligation has arisen in respect of the general
      notification requirements under Chapter 15.3 of SUP, save in any of the
      foregoing cases to an extent which would not (singly or in the aggregate)
      be material in the context of the Placing and Open Offer, any subscription
      for New Shares by HM Treasury, Ordinary Shareholders or Placees, the
      redemption of the Preference Shares, Admission or post-Admission dealing
      in the Ordinary Shares.

                

        

         

        
          	
                  13.2

                	
                  Save as
      otherwise would not (singly or in the aggregate) be material in the
      context of the Placing and Open Offer, any subscription for New Shares by
      HM Treasury, Ordinary Shareholders or Placees, the redemption of
      the Preference Shares, Admission or post-Admission dealings in the
      Ordinary Shares, no Group Company is the subject of any investigation,
      enforcement action (including, without limitation to vary the terms of any
      permission of licence) or disciplinary proceeding by the FSA or any other
      regulatory body having jurisdiction over such Group Company, and no such
      investigation, enforcement action or disciplinary proceeding is threatened
      or pending.

                

        

         

         

        
          
            
            

          

          
            84

            
              

            

          

          
            
            

          

        

         

         

        14.       Competition

         

        
          	
                  14.1

                	
                  No Group
      Company is a party to (or is concerned in) any agreement, arrangement,
      concerted practice or course of conduct which infringes, or of which
      particulars have or should have been delivered to any relevant
      governmental or other authority in any jurisdiction under any relevant
      legislation in any territory regarding anti-competitive or restrictive
      trade or business practices or which falls within Articles 81 and/or 82 of
      the EC Treaty, or otherwise, in any of the foregoing cases to an extent
      that (singly or in the aggregate) would, or would be reasonably likely to,
      be material in the context of the Placing and Open Offer, any subscription
      for New Shares by HM Treasury, Ordinary Shareholders or Placees, the
      redemption of the Preference Shares, Admission or post-Admission dealing
      in the Ordinary Shares.

                

        

         

        
          	
                  14.2

                	
                  No Group
      Company is, or has been, in connection with its business or that of any
      other Group Company, engaged in any practice which contravenes any such
      legislation as is referred to in the preceding paragraph or which is under
      investigation by any authority referred to in the preceding paragraph or
      which is the subject of undertakings to any such authority and, so far as
      the Company is aware, none of the practices carried on by any Group
      Company contravenes or may contravene any such legislation or is
      reasonably likely to be subject to such investigation, in any of the
      foregoing cases to an extent that would, or would be reasonably likely to,
      be (singly or in the aggregate) material in the context of the Placing and
      Open Offer, any subscription for New Shares by HM Treasury, Ordinary
      Shareholders or Placees, the redemption of the Preference Shares,
      Admission or post-Admission dealing in the Ordinary
  Shares.

                

        

         

         

         

        
          
            
            

          

          
            85

            
              

            

          

          
            
            

          

        

         

         

        SCHEDULE
4

        PRO
FORMA NOVATION AGREEMENT

         

        
          	
                   
      

                	
                  THIS NOVATION
      AGREEMENT is made the [●] day of [●], 20[●]

                

        

         

        BETWEEN:

         

        
          	
                  1.

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

                

        

         

        
          	
                  2.

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

                

        

         

        
          	
                  3.

                	
                  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");

                

        

         

        
          	
                  4.

                	
                  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

                

        

         

        
          	
                  5.

                	
                  [                          ]
      of
      [                                                                        ]
      (registered in England No.
      [                          ])
      (the “Company”)

                

        

         

        
          	
                   
      

                	
                  WHEREAS:

                

        

         

        
          	
                  (A)

                	
                  HMT, RBS, UBS
      and Merrill Lynch have entered into the Placing Agreement (as defined in
      this agreement).

                

        

         

        
          	
                  (B)

                	
                  HMT wishes to
      be released and discharged from the Placing Agreement and RBS, UBS and
      Merrill Lynch have agreed to release and discharge HMT from the Placing
      Agreement upon the terms of the Company’s undertaking to perform the
      Placing Agreement and be bound by its terms in the place of HMT and HMT
      agreeing to guarantee the Company’s obligations in respect of the Placing
      Agreement.

                

        

         

        
          	
                   
      

                	
                  NOW IT IS
      AGREED as follows:-

                

        

         

        1.         INTERPRETATION

         

        1.1        In
this agreement:

         

        
          	
                  “Placing
      Agreement”

                	
                  means the
      agreement dated [ ̃] 2009
      between HMT, RBS, UBS and Merrill Lynch relating to the placing and open
      offer of a number of RBS’s ordinary shares; and

                   

                
	
                  “Continuing
      Parties”

                	
                  means RBS,
      UBS and Merrill Lynch and “Continuing Party” shall
      be construed accordingly.

                

        

         

         

        
          
            
            

          

          
            86

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  1.2

                	
                  In this
      agreement, unless otherwise
specified:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  references to
      clauses and sub-clauses are to clauses and sub-clauses of this agreement;
      and

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  headings to
      clauses and schedules are for convenience only and do not affect the
      interpretation of this agreement.

                

        

         

        2.         COMPANY’S
UNDERTAKING

         

        With effect from
the date of this agreement and in consideration of the undertakings given by the
Continuing Parties in clause 3, the Company
hereby undertakes to observe, perform, discharge and be bound by the Placing
Agreement as if the Company were a party to that agreement in the place of
HMT.  Notwithstanding this undertaking, nothing in this agreement
shall:

         

        
          	
                   
      

                	
                  (A)

                	
                  require the
      Company to perform any obligation created by or arising under the Placing
      Agreement falling due for performance, or which should have been
      performed, before the date of this
agreement;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  make the
      Company liable for any act, neglect, default or omission in respect of the
      Placing Agreement committed by HMT or occurring before the date of this
      agreement; or

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  impose any
      obligation on the Company for or in respect of any obligation performed by
      HMT under the Placing Agreement before the date of this
      agreement.

                

        

         

        3.         CONTINUING
PARTIES’ UNDERTAKING AND RELEASE OF HMT

         

        
          	
                  3.1

                	
                  With effect
      from the date of this agreement and in consideration of the undertakings
      given by the Company in clause 2 and
      the undertakings and guarantee given by HMT in clauses 4 and 5
      respectively, each of the Continuing Parties
  hereby:

                

        

         

        
          	
                   
      

                	
                  (A)

                	
                  releases and
      discharges HMT from all obligations to observe, perform, discharge and be
      bound by the Placing Agreement;

                

        

         

        
          	
                   
      

                	
                  (B)

                	
                  accepts the
      Company’s undertaking to observe, perform, discharge and be bound by the
      Placing Agreement (such undertaking being set out in clause 2);
      and

                

        

         

        
          	
                   
      

                	
                  (C)

                	
                  agrees to
      observe, perform, discharge and be bound by the Placing Agreement as if
      the Company were a party to the Placing Agreement in the place of
      HMT.

                

        

         

        
          	
                  3.2

                	
                  Notwithstanding
      the provisions of sub-clause
      3.1(A), nothing in this agreement shall affect or prejudice any
      claim or demand whatsoever which any Continuing Party may
  

                

        

         

         

        
          
            
            

          

          
            87

            
              

            

          

          
            
            

          

        

         

         

        
          have against HMT in
relation to the Placing Agreement and arising out of matters prior to the date
of this agreement.

        

         

        4.         HMT’S
UNDERTAKING AND RELEASE OF THE CONTINUING PARTIES

         

        With effect from
the date of this agreement and in consideration of the undertakings given by the
Continuing Parties in clause 3, HMT hereby
releases and discharges each of the Continuing Parties from all obligations to
observe, perform, discharge and be bound by the Placing
Agreement.  Notwithstanding this undertaking and release, nothing in
this agreement shall affect or prejudice any claim or demand whatsoever which
HMT may have against any Continuing Party in relation to the Placing Agreement
and arising out of matters prior to the date of this agreement.

         

        5.         GUARANTEE
AND INDEMNITY

         

        
          	
                  5.1

                	
                  In
      consideration of the undertakings given by the Continuing Parties in clause 3, HMT
      hereby unconditionally and irrevocably guarantees to each Continuing Party
      the due and punctual performance and observance by the Company of all its
      obligations, commitments and undertakings under or pursuant to this
      agreement and agrees to indemnify each Continuing Party on an after-tax
      basis against all loss, damage, costs and breach by the Company of its
      obligations, commitments or undertakings under or pursuant to this
      agreement.  The liability of HMT under this agreement shall not
      be released or diminished by any variation of the terms of this agreement
      or the Placing Agreement as novated by this agreement (whether or not
      agreed by HMT), any forbearance, neglect or delay in seeking performance
      of the obligations hereby imposed or any granting of time for such
      performance.

                

        

         

        
          	
                  5.2

                	
                  If and
      whenever the Company defaults for any reason whatsoever in the performance
      of any obligation or liability undertaken or expressed to be undertaken by
      the Company under or pursuant to this agreement, HMT shall forthwith upon
      demand unconditionally perform (or procure performance of) and satisfy (or
      procure the satisfaction of) the obligation or liability in regard to
      which such default has been made and so that the same benefits shall be
      conferred on each Continuing Party as such party would have received if
      such obligation or liability had been duly performed and satisfied by the
      Company.

                

        

         

        
          	
                  5.3

                	
                  This
      guarantee is to be a continuing guarantee and accordingly is to remain in
      force until all the obligations, commitments and undertakings of the
      Company referred to in sub-clause 5.1
      shall have been performed or satisfied.  This guarantee is in
      addition to and without prejudice to and not in substitution for any
      rights or security which any Continuing Party may now or hereafter have or
      hold for the performance and observance of the obligations, commitments
      and undertakings of the Company under or in connection with this
      agreement.

                

        

         

        
          	
                  5.4

                	
                  As a separate
      and independent stipulation HMT agrees that any obligation expressed to be
      undertaken by the Company (including, without limitation, any moneys
      expressed to be payable under this agreement or the Placing Agreement as
      novated by this agreement) which may not be enforceable against or
      recoverable from the Company by reason of any legal limitation, disability
      or incapacity on or of the Company or any other fact or circumstance
      (other than any limitation imposed by this agreement or the
      Placing

                

        

         

         

        
          
            
            

          

          
            88

            
              

            

          

          
            
            

          

        

         

         

        
          Agreement as
novated by this agreement) shall nevertheless be enforceable against and
recoverable from HMT as though the same had been incurred by HMT and HMT were
the sole or principal obligor in respect thereof.

           

        

        6.         COMPANY
CEASES TO BE WHOLLY OWNED BY HMT

         

        In
the event that the Company at any time after the date of this agreement ceases
to be directly or indirectly wholly-owned by HMT, the Company shall, and HMT
will procure that the Company shall, enter into a novation agreement upon
substantially the same terms as this agreement such that the rights and
obligations assumed by the Company under this agreement are novated either to
HMT or to an entity which is, directly or indirectly, wholly owned by HMT. The
Continuing Parties agree to consent to, and to execute and deliver all such
documentation as may be necessary to effect, such novation.

         

        7.         NOTICES

         

        For the purposes of
all provisions in the Placing Agreement concerning the service of notices, the
address of the Company is its registered office as shown above from time to time
and its fax number is [●].  All notices served on the Company under
the Placing Agreement should be marked for the attention of [●].

         

        8.         COUNTERPARTS

         

        
          	
                  8.1

                	
                  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.

                

        

         

        
          	
                  8.2

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

                

        

         

        9.         GOVERNING
LAW

         

        The Continuing
Parties and the Company hereby agree that this Agreement and any non-contractual
obligations arising out of or in connection with it shall be governed by and
construed in accordance with English law and that the courts of England and
Wales are to have exclusive jurisdiction to settle any matter, claim or dispute
arising hereunder and submits to the jurisdiction of the English
Courts.

         

        [To be included if the Company is not
a company incorporated in England:

         

        10.        AGENT
FOR SERVICE OF PROCESS

         

        The Company shall at all times
maintain an agent for service of process and for service of any other documents
and proceedings in England, or any other proceedings in connection with this
Agreement. Such agent shall be [agent with address in England] and any writ,
judgment or other notice of legal process shall be sufficiently served on the
Company if delivered to such agent at its 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 

         

         

        
          
            
            

          

          
            89

            
              

            

          

          
            
            

          

        

         

         

        agent having an address for service
in England and shall notify the Continuing Parties of the name and address of
such replacement agent. If the Company fails to appoint another agent, any of
the Continuing Parties shall be entitled to appoint one on the Company’s behalf
and at the Company’s expense.]

         

        

         

        IN
WITNESS of which this Agreement has been executed on the date which first
appears on page 1 of this Agreement.

        

         

        
          .................................................................

        

        

         

        .................................................................

        For and on behalf
of

        THE
COMMISSIONERS OF HER MAJESTY’S TREASURY

        

         

        .................................................................

        For and on behalf
of

        THE
ROYAL BANK OF SCOTLAND GROUP PLC

        

         

        
          .................................................................

        

        For and on behalf
of

        UBS
LIMITED

        

         

        
          .................................................................

        

        For and on behalf
of

        MERRILL
LYNCH INTERNATIONAL

        

         

        .................................................................

        For and on behalf
of

        [Insert name of the
Company]

         

         

        
          
            
            

          

          
            90

            
              

            

          

          
            
            

          

        

         

         

        SCHEDULE
5

        US
INVESTOR LETTER

         

        

         

        
          	
                  [Name, address, fax number and
      attention details for the Company]

                  [Names, addresses, fax numbers
      and attention details for the Placing Agents]

                   

                	 
    	 
    
	 
    	 
    	 
    
	
                  cc: [You must
      fax a copy of this letter to the financial intermediary through which your
      existing ordinary shares are held. Accordingly please insert here name,
      address and contact details of the relevant financial
      intermediary.]

                	 
    	 
    

        

        

        _________________,
2008

         

        

        Ladies and
Gentlemen

         

        In connection with
our proposed subscription for new shares (the “New Shares”) of [insert name of company] (the “Company”), which are being
offered by way of a placing and open offer (the “Placing and Open Offer”), we
represent, warrant, agree and confirm that:

         

        
          	
                  1.

                	
                  To the extent
      we are an existing shareholder of the Company, we are the beneficial
      holder of and/or exercise full investment discretion with respect to our
      ordinary shares of the Company.

                

        

         

        
          	
                  2.

                	
                  We are an
      institution which (a) has such knowledge and experience in financial and
      business matters that we are capable of evaluating the merits and risks of
      our investments in the New Shares, and (b) we, and any accounts for which
      we are acting, are able to bear the economic risk, and sustain a complete
      loss, of such investment in the New
Shares.

                

        

         

        
          	
                  3.

                	
                  We are a
      “qualified institutional buyer” (a “QIB”) as defined in Rule
      144A (“Rule 144A”)
      under the US Securities Act of 1933, as amended (the “Securities Act”). Further, if we
      are acquiring the New Shares as a fiduciary or agent for one or more
      investor accounts, (a) each such account is a QIB, (b) we have investment
      discretion with respect to each account, and (c) we have full power and
      authority to make the representations, warranties, agreements and
      acknowledgements herein on behalf of each such
  account.

                

        

         

        
          	
                  4.

                	
                  We will base
      our investment decision on a copy of the Company’s prospectus dated [●],
      2008, including the documents incorporated by reference therein (the
      “Prospectus”).
      

                

        

         

         

        
          
            
            

          

          
            91

            
              

            

          

          
            
            

          

        

         

         

        
          We acknowledge that
neither the Company nor any of its affiliates nor any other person (including
[insert names of placing
agents] (together, the “Placing Agents”)) has made any
representations, express or implied, to us with respect to the Company, the
Placing and Open Offer, the New Shares or the accuracy, completeness or adequacy
of any financial or other information concerning the Company, the Placing and
Open Offer or the New Shares, other than (in the case of the Company and its
affiliates only) the information contained or incorporated by reference in the
Prospectus. We acknowledge that we have not relied on any information contained
in any research reports prepared by the Placing Agents or any of their
respective affiliates. We understand that the Prospectus has been prepared in
accordance with UK format, style and content, which differs from US format,
style and content. In particular, but without limitation, the financial
information contained in the Prospectus have been prepared in accordance with
International Financial Reporting Standards, and thus may not be comparable to
financial statements of US companies prepared in accordance with US generally
accepted accounting principles. We will not distribute, forward, transfer or
otherwise transmit the Prospectus, or any other presentational or other
materials concerning the Placing and Open Offer (including electronic copies
thereof) to any person within the United States (other than a QIB on behalf of
which we act). We acknowledge that we have read and agreed to the matters set
forth under the heading “[insert name of relevant section of
Prospectus containing notices to oversees investors, including US
investors]” in the Prospectus.

        

         

        
          	
                  5.

                	
                  We will make
      our own independent investigation and appraisal of the business, results,
      financial condition, prospects, creditworthiness, status and affairs of
      the Company and we will make our own investment decision to subscribe for
      the New Shares. We understand that there may be certain consequences under
      US and other tax laws resulting from an investment in the New Shares,
      including that we must bear the economic risk of an investment in the New
      Shares for an indefinite period of time, and we will make such
      investigation and consult such tax and other advisors with respect thereto
      as we deem appropriate.

                

        

         

        
          	
                  6.

                	
                  Any New
      Shares we subscribe for will be for our own account (or for the account of
      a QIB as to which we exercise sole investment discretion and have
      authority to make the statements contained in this letter) for investment
      purposes, and not with a view to resale or distribution within the meaning
      of the US securities laws, subject to the understanding that the
      disposition of our property shall at all times be and remain within our
      control.

                

        

         

        
          	
                  7.

                	
                  We understand
      that the New Shares are being offered in a transaction not involving any
      public offering in the United States within the meaning of the Securities
      Act and that the New Shares are not being and will not be registered under
      the Securities Act or with any State or other jurisdiction of the United
      States. We acknowledge and agree that we are not taking up the New Shares
      as a result of any general solicitation or general advertising (as those
      terms are defined in Regulation D under the Securities Act). We understand
      and agree that, although offers and sales of the New Shares are being made
      in the United States to QIBs, they are not being made under Rule 144A, and
      that the New Shares are not eligible for resale pursuant to Rule
      144A.

                

        

         

        
          	
                  8.

                	
                  We understand
      that the New Shares will be “restricted securities” within the meaning of
      Rule 144(a)(3) under the Securities Act and we agree that for so long as
      such securities are “restricted securities” (as so defined), they may not
      be deposited into any unrestricted depositary facility established or
      maintained by any depositary bank, 

                

        

         

         

        
          
            
            

          

          
            92

            
              

            

          

          
            
            

          

        

         

         

        
          including the
current American Depositary Receipt (“ADR”) facility maintained by
The Bank of New York Mellon, as depositary for the Company’s ADR facility (the
“Depositary”).

        

         

        
          	
                  9.

                	
                  As long as
      the New Shares are “restricted securities” within the meaning of Rule
      144(a)(3) under the Securities Act, we will not reoffer, resell, pledge or
      otherwise transfer the New Shares, except in an offshore transaction in
      accordance with Rule 903 or Rule 904 of Regulation S under the Securities
      Act (which, for the avoidance of doubt, includes a sale over the London
      Stock Exchange) and in accordance with any applicable securities laws of
      any state or other jurisdiction of the United
  States.

                

        

         

        
          	
                  10.

                	
                  We understand
      that, to the extent the New Shares are delivered in certificated form, the
      certificate delivered in respect of the New Shares will bear a legend
      substantially to the following effect for so long as the securities are
      “restricted securities” within the meaning of Rule 144(a)(3) under the
      Securities Act:

                

        

         

        THE
SHARES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH
ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION OF THE
UNITED STATES, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE FOREGOING, THE SHARES MAY NOT BE
DEPOSITED INTO ANY UNRESTRICTED DEPOSITARY RECEIPT FACILITY IN RESPECT OF SHARES
ESTABLISHED OR MAINTAINED BY A DEPOSITARY BANK. EACH HOLDER, BY ITS ACCEPTANCE
OF THESE SHARES, REPRESENTS THAT IT UNDERSTANDS AND AGREES TO THE FOREGOING
RESTRICTIONS.

         

        
          	
                  11.

                	
                  We
      acknowledge that, whether or not we currently hold the Company’s ADRs, we
      will receive the New Shares in the form of ordinary shares and not in the
      form of ADRs.

                

        

         

        
          	
                  12.

                	
                  We
      acknowledge that until six months after the latest date on which the New
      Shares are delivered in the Placing and Open Offer (which is currently
      expected to be [•] 2008), the Depositary will not accept deposits of the
      New Shares in the ADR facility, or permit pre-releases of the Company’s
      American Depositary Shares from the ADR facility, unless we (or a broker
      on behalf of us) certify, among other things, that the shares to be
      deposited were not subscribed or purchased pursuant to the Placing and
      Open Offer, and that we have not borrowed shares to be deposited with the
      intention of replacing them with New Shares subscribed or purchased
      pursuant to the Placing and Open
Offer.

                

        

         

        
          	
                  13.

                	
                  We understand
      and acknowledge that the Company shall have no obligation to recognize any
      offer, sale, pledge or other transfer made other than in compliance with
      the restrictions on transfer set forth and described herein and that the
      Company may make notation on its records or give instructions to [insert name of
      registrar] and any transfer agent of the New Shares and to the
      Depositary under its ADR facility in order to implement such
      restrictions.

                

        

         

        
          	
                  14.

                	
                  We understand
      that the foregoing representations, warranties, agreements and
      acknowledgements are required in connection with United States and other
      securities laws and that the Company, its affiliates, the Placing Agents
      and their respective affiliates, and others are entitled to rely upon the
      truth and accuracy of the

                

        

         

         

        
          
            
            

          

          
            93

            
              

            

          

          
            
            

          

        

         

         

        
          representations,
warranties, agreements and acknowledgements contained herein. We agree that if
any of the representations, warranties, agreements and acknowledgements made
herein are no longer accurate, we shall promptly notify the Company and the
Placing Agents. All representations, warranties, agreements and acknowledgements
we have made in this letter shall survive the execution and delivery
hereof.

        

         

        
          	
                  15.

                	
                  We confirm
      that, to the extent we are purchasing the New Shares for the account of
      one or more other persons, (a) we have been duly authorized to sign this
      letter and make the confirmations, acknowledgements and agreements set
      forth herein on their behalf and (b) the provisions of this letter
      constitute legal, valid and binding obligations of us and any other person
      for whose account we are acting.

                

        

         

        
          	
                  16.

                	
                  We
      irrevocably authorize the Company, its affiliates, the Placing Agents and
      their respective affiliates and any person acting on their behalf to
      produce this letter or a copy hereof to any interested party in any
      administrative or legal proceedings, dispute or official inquiry with
      respect to the matters covered
hereby.

                

        

         

        
          	
                  17.

                	
                  This letter
      shall be governed by, and construed in accordance with, the laws of the
      State of New York.

                

        

         

        
          	
                  18.

                	
                  We agree to
      promptly notify you if, at any time prior to [insert relevant date],
      any of the foregoing ceases to be
true.

                

        

         

        

         

        Yours
truly,

         

        [Signature of
authorized signatory]

         

        

        ON BEHALF OF
[Institution]

         

        

        By:  
    [Name of authorized signatory]

         

        [Title of authorized signatory]

         

        [Institution]

         

        [Address]

         

        

         

        [Name of nominee,
if applicable]

         

         

         

        
          
            
            

          

          
            94

            
              

            

          

          
            
            

          

        

         

         

        SCHEDULE 6

        CONDITIONS
TERM SHEET

         

        
          	
                  1.

                	
                  The Company
      agrees to extend the lending commitments made to HM Treasury in the
      placing and open offer agreement between them dated as of 13 October 2008
      in respect of the UK mortgage and SME lending markets. These commitments
      will now also apply to the Company's lending to larger commercial and
      industrial companies in the UK.

                

        

         

        
          	
                  2.

                	
                  A commitment
      to increase the level at which competitively priced lending is made
      available and actively marketed by the Group in the UK by £6bn. The terms
      on which this increased lending is to be made available (including the
      base level from which it is to be calculated and the timeframe over which
      it is to be made available) are to be agreed by the parties within one
      week from the date of this
Agreement.

                

        

         

        

         

         

        
          
            
            

          

          
            95

            
              

            

          

          
            
            

          

        

         

         

        IN
WITNESS WHEREOF this agreement has been entered into on the date which first
appears on page 1 of this agreement.

         

        

         

        
          	
                  SIGNED by and
      for and on behalf of

                  THE
      ROYAL BANK OF SCOTLAND
GROUP PLC

                   

                   

                	
                  ) /s/
      [illegible]

                  )

                  )

                	 
    

        

        

         

        
          	
                  SIGNED by and
      for and on behalf of

                  UBS
      LIMITED

                   

                   

                	
                  

                    ) /s/
      [illegible]

                  

                  

                    )
      /s/ [illegible]

                  

                   

                	 
    

        

        

         

        
          	
                  SIGNED by and
      for and on behalf of

                  MERRILL
      LYNCH INTERNATIONAL

                   

                   

                	
                  

                    ) /s/
      [illegible]

                  

                  )

                   

                	 
    

        

        

         

        
          	
                  SIGNED by two
      of

                  THE
      COMMISSIONERS OF HER
MAJESTY’S TREASURY

                   

                   

                   

                	
                  

                    ) /s/
      [illegible]

                  

                  

                    )
      /s/ [illegible]

                  

                  )EXHIBIT
4.22

     

    

    

    

    

    Her
Majesty’s Treasury (the “Treasury”)

    1 Horse
Guards Road

    London

    SW1A
2HQ

    

    26
February 2009

    

    Ladies
and Gentlemen,

    

    ASSET
PROTECTION SCHEME: PRE-ACCESSION COMMITMENTS

    

    1.           Introduction

    

    The Royal
Bank of Scotland plc (the “Participating Institution”) notes that:

    

    
      	
              (A)

            	
              the
      Participating Institution is currently in discussions with the Treasury
      concerning the potential participation by members of the Participating
      Group (as defined below) in the Asset Protection Scheme (the “APS”)
      announced by the Government on 19 January 2009;
      and

            

    

     

    
    

    
      	
              (B)

            	
              such
      participation in the APS is subject (amongst other things) to a legally
      binding agreement on the terms of any such participation and is expected
      to be subject to a number of conditions
  precedent.

            

    

     

    In
anticipation of such potential participation in the APS, this document is being
entered into by the Participating Institution by way of a deed poll in favour of
the Treasury and specifies certain undertakings (“Pre-Accession Undertakings”)
being given by the Participating Institution (for itself and on behalf of each
member of the Participating Group).

    

    References
in this Deed Poll to: (i) “Participating Group” mean the Participating
Institution and each of its group undertakings (as defined in the Companies Act
2006) and any other entity in which it or any such group undertaking has an
ownership interest; and (ii) the “Interim Asset Management Undertakings” means
the undertakings set out in paragraphs 6 to 12 (inclusive).  Unless
otherwise defined herein, capitalised terms used in this Deed Poll shall have
the meanings ascribed to them in the term sheet for the APS (the “Term Sheet”),
the terms of which have been published by the Treasury on the date
hereof.

    

    2.           Nature
of Pre-Accession Undertakings

    

    The
Participating Institution agrees that: (i) the Pre-Accession Undertakings are
intended to be binding on it and each member of the Participating Group (subject
to paragraph 15); (ii) such

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    undertakings
are a pre-requisite to the Participating Group’s participation in the APS; and
(iii) such
undertakings are without prejudice to the Treasury’s right to determine whether
or not the Participating
Group is eligible to participate in the APS.

    

    The
Participating Institution will use its best endeavours to comply with the
Pre-Accession Undertakings
in good faith, and to work constructively and in an open and transparent way
with the
Treasury so as to facilitate the implementation of the APS and the potential
participation by the
Participating Group in the APS in an expedited and cost- and resource-efficient
manner.

    

    3.           Duration
of Pre-Accession Undertakings

    

    The
Participating Institution undertakes to implement the Pre-Accession Undertakings
with immediate effect (or, where a period for compliance is expressly provided
for below, within such period).  The Pre-Accession Undertakings will
cease to apply on the earliest of: (i) the date on which the Participating
Institution accedes to the APS; (ii) the date when the Participating Institution
indicates to the Treasury in writing that it no longer wishes to accede to the
APS; and (iii) 31
December 2009 or such other date as may be agreed between the Participating
Institution and the Treasury (such period, the “Interim Period”).  If
the Participating Group does not participate in the APS neither the
Participating Institution nor any member of the Participating
Group will be liable for any matters arising hereunder.

    

    4.           Information
and assistance

    

    4.1           General

    

    The
Participating Institution shall provide the Treasury (and its officials,
employees, representatives, agents and advisers (together “Representatives”))
with all such assistance, and information and data, as is reasonably requested
by the Treasury or its Representatives which is pertinent to the implementation
of the APS and the Participating Group’s potential participation in the
APS.

    

    The
Participating Institution will take all reasonable steps to ensure that the
information and data provided to the Treasury or its Representatives is accurate
and up-to-date.

    

    Nothing
in this paragraph 4 shall require any member of the Participating Group to
provide to the Treasury any information or data that it has already provided to
the Treasury (or its Representatives) prior to the date of this Deed
Poll.

    

    4.2           Information:
Identification of Proposed Assets

    

    It is
acknowledged and agreed that the Treasury intends that any assets, commitments
and exposures to be included by the Participating Group within the APS will be
agreed by no later than 30 April 2009.

    

    In order
to achieve that intention, the Participating Institution shall provide to the
Treasury as soon as practicable an indicative list of the assets, commitments
and exposures that it proposes to include within the APS (such assets,
commitments and exposures the “Proposed Assets” and such list of Proposed Assets
the “Proposed Assets Schedule”).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    The
Proposed Asset Schedule shall specify such information in respect of Proposed
Assets as the Treasury may in its reasonable discretion deem necessary or
appropriate for each type of Proposed Asset (the “Indicative Asset Information”)
which may include, without limitation, the following: (i) its asset class; (ii)
its outstanding principal balance (or equivalent) as at 31 December 2008: (iii)
the provisions made in respect of it, and the value ascribed to it, in the
audited consolidated balance sheet of the Participating Group as at 31 December
2008 (the “2008 Balance Sheet”); (iv) the counterparty or counterparties to that
Proposed Asset; (v) whether any failure to pay (whether interest, principal or
otherwise), bankruptcy, restructuring or other similar event (a “Trigger”) has
occurred in relation to it, and, if so, the date of occurrence of that Trigger;
(vi) its currency; (vi) its maturity date(s); (vii) the member(s) of the
Participating Group that is(are) the legal owner(s) of that Proposed Asset or
holds a significant economic interest in that Proposed Asset (each such entity a
“Relevant Entity”); (viii) its location (where applicable); (ix) any credit risk
mitigation that the Participating Group has effected (and that remains in place)
in relation to that Proposed Asset; (x) any pledge or other security interest or
repo, stock loan or other title transfer arrangement or other encumbrance
affecting it (any such arrangement an “Arrangement”); and (xi) to the extent
available, the Participating Institution’s most recent assessments (if any) of
the probability of default and loss given default.

    

    As soon
as practicable after entry into this Deed Poll, the Participating Institution
will discuss and use its best endeavours to agree in good faith with the
Treasury a satisfactory timetable for providing the Proposed Assets Schedule and
the Indicative Asset Information to the Treasury in order to achieve the
intention set out in the first paragraph of this paragraph 4.2.

    

    Development
and finalisation of the Proposed Assets Schedule and the Indicative Asset
Information will be an iterative process and, as such: (i) if the relevant
Indicative Asset Information for a particular type of Proposed Asset is not
available to the Participating Group at the time that Proposed Asset is included
in the Proposed Asset Schedule the Participating Institution shall provide such
information to the Treasury as soon as practicable; and (ii) the Participating
Institution shall provide to the Treasury an updated Proposed Assets Schedule
and Indicative Asset Information as promptly as practicable upon: (1) any asset,
commitment or exposure becoming or ceasing to be a Proposed Asset; or (2) any
information included in the Proposed Asset Schedule and Indicative Asset
Information relating to a Proposed Asset ceasing to be accurate or
up-to-date.

    

    4.3           Information:
due diligence on proposed assets

    

    The
Participating Institution shall as promptly as practicable provide to the
Treasury (or its Representatives) information and data reasonably requested by
the Treasury (or its Representatives) for the purposes of conducting due
diligence on the Proposed Assets, determining whether the Proposed Assets
satisfy the Asset Eligibility Criteria and quantifying the financial exposure
which may result from the inclusion of such Proposed Assets in the
APS.  Such information and data may include: (i) up-to-date details of
provisions, impairments or write-downs,

    changes
to mark-to-market valuations, rollovers, refinancings or capitalisation of
interest in respect of Proposed Assets; and (ii) where a Trigger has occurred in
respect of a Proposed Asset, up-to-date information and data as to the amount of
any Losses (and any Recoveries or expected Recoveries).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    The
Participating Institution shall as soon as practicable after the date of this
Deed Poll appoint a major international firm of accountants to co-ordinate the
confirmatory due diligence process within the Participating Group relating to
information provided (or to be provided) to the Treasury in relation to the APS,
the specific scope of such engagement to be determined by the

    Participating
Institution acting reasonably (in consultation with the Treasury).

    

    4.4           Information:
other requirements

    

    The
Participating Institution shall as promptly as practicable provide information
and data reasonably requested by the Treasury (or its Representatives)
concerning:

    

    
      	
              (A)

            	
              the
      Participating Group’s business, financial condition and affairs
      (regardless of whether such information is directly pertinent to the
      Proposed Assets or the scope or implementation of the
  APS);

            

    

     

    
      	
              (B)

            	
              the
      financial performance and its risk assessment of Proposed
      Assets;

            

    

     

    
      	
              (C)

            	
              the
      Participating Group’s proposed strategy with respect to the management of
      the Proposed Assets (the “Asset Management Strategy”) and transactions
      relating to Proposed Assets, including the anticipated costs of managing
      the Proposed Assets;

            

    

     

    
      	
              (D)

            	
              the
      Participating Group’s: (i) current remuneration policy or procedure and
      any proposed changes thereto; (ii) organisational structures, including,
      without limitation, in respect of staffing and resourcing; and (iii)
      monitoring, reporting, risk management and conflict processes, systems and
      controls, in each case including actions and steps being taken or proposed
      to be taken to adapt, change or replace the foregoing in preparation for
      the Participating Group’s potential participation in the APS;
      and

            

    

     

    
      	
              (E)

            	
              any
      other material actions and steps being taken by the Participating Group to
      prepare for the implementation of the APS and the potential participation
      by the Participating Group in the
APS.

            

    

     

    No member
of the Participating Group shall be required to comply with any requests from
the Treasury or its Representatives under this paragraph 4.4 to the extent that
they are excessive or constitute an unreasonable interference with the
Participating Group’s commercial operations.

    

    4.5           Access
and assistance

    

    The
Participating Institution shall procure that:

    

    
      	
              (A)

            	
              the
      Treasury and its Representatives are given access to the Participating
      Group’s premises, books and records;
and

            

    

     

    
      	
              (B)

            	
              its
      senior executives, managers and other relevant personnel, together with
      its accountants, auditors and other advisers, are made available upon
      reasonable notice to give (and are instructed to give as promptly as
      practicable) all information, explanations and assistance requested by the
      Treasury (or its Representatives),

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    in either
case as the Treasury deems reasonably necessary: (i) to facilitate
implementation of the APS and the potential participation by the Participating
Group in the APS; and (ii) to conduct due diligence on the Proposed
Assets.

    

    The
Treasury shall, in particular (but without limitation), be entitled to require
the Participating Institution to allow the Treasury’s reporting accountants such
access to the Participating Group’s premises, books and records as it deems
reasonably necessary to monitor and oversee the management of the Proposed
Assets.

    

    No member
of the Participating Group shall be required to comply with any requests from
the Treasury or its Representatives under this paragraph 4.5 to the extent that
they are excessive or constitute an unreasonable impediment to personnel of the
Participating Group of their ability to fulfil their day to day functions at the
Participating Group.

    

    5.           Consultation
rights

    

    The
Participating Institution will consult fully with the Treasury with regard
to:

    

    
      	
              (A)

            	
              the
      design, preparation and implementation of the operational and management
      structures within the Participating Group to manage the Proposed Assets,
      including the remuneration policy applying to personnel involved in
      managing the Proposed Assets;

            

    

     

    
      	
              (B)

            	
              its
      Asset Management Strategy (including, without limitation, any proposals:
      (i) to amend its existing ordinary course business practices for the
      management of the Proposed Assets; or (ii) to apply materially different
      ordinary course business practices for the management of the Proposed
      Assets on the one hand and assets which the Participating Institution does
      not propose to include within the APS on the other hand (such assets, the
      “non-APS Assets”));

            

    

     

    
      	
              (C)

            	
              the
      development of conflict resolution processes which ensure that any
      conflicts, or potential conflicts, arising in respect of the management of
      Proposed Assets and the non-APS Assets are managed without regard to any
      benefits that may be provided by the APS;
and

            

    

     

    
      	
              (D)

            	
              proposals
      to adapt, change or replace the Participating Group’s policies, processes,
      systems and controls (including, without limitation, in relation to
      monitoring, reporting, risk management, conflicts, auditing and
      compliance) in each case to the extent such proposals relate to the
      implementation of the APS or the Participating Group’s potential
      participation in the APS.

            

    

     

    6.           Oversight
and control procedures

    

    The
Participating Institution shall, during the Interim Period, use its best
endeavours (giving regard to reasonable operational requirements) to maintain
regular, adequate and effective monitoring, reporting, risk management and audit
controls and procedures that:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              (A)

            	
              provide
      the directors and senior management of the Participating Group with a
      reasonable level of assurance that the Proposed Assets are being managed
      in accordance with the Interim Asset Management
    Undertakings;

            

    

     

    
      	
              (B)

            	
              ensure
      that risks relating to key business processes which affect the Proposed
      Assets are identified, assessed and reported, and are managed and
      mitigated appropriately; and

            

    

     

    
      	
              (C)

            	
              are
      designed to ensure that material information relating to the Proposed
      Assets is made known to the directors and senior management of the
      Participating Institution.

            

    

     

    7.           Management
of assets

    

    The
Participating Institution will during the Interim Period use its best
endeavours:

    

    
      	
              (A)

            	
              to
      ensure that the management of all of its assets (including both the
      Proposed Assets and the non-APS Assets) is undertaken without regard to
      any benefits that may be provided by the
APS;

            

    

     

    
      	
              (B)

            	
              to
      manage all Proposed Assets (including all Proposed Assets in respect of
      which a Trigger has occurred) in accordance with (i) usual business and
      banking practices as a prudent banking institution without regard to any
      benefits that may be provided by the
APS;

            

    

     

    
      	
              (C)

            	
              to
      act in a way that aims to maximise the long-term value of any Proposed
      Assets without regard to any benefits that may be provided by the APS and,
      in particular, will use all commercially reasonable efforts to mitigate
      Losses and maximise Recoveries with respect to Proposed Assets;
      and

            

    

     

    
      	
              (D)

            	
              not
      to sell or dispose of, nor make any amendment or modification to the terms
      of a Proposed Asset, other than on a commercially reasonable basis
      consistent with the other Interim Asset Management
      Undertakings.

            

    

     

    8.           Remuneration
Policy

    

    The
Participating Institution acknowledges that the Treasury and the FSA propose to
commence a consultation in relation to a Code of Remuneration Practice for
banking institutions and confirms that it will comply with any such Code, and
any other other legal or regulatory requirements relating to remuneration
policies, to which it becomes subject from time to time.

    

    9.           Liability
Management

    

    The
Participating Institution will use its reasonable endeavours to develop and
implement a liability management plan in respect of the business of the
Participating Group which aims to achieve an increase in its total Core Tier 1
capital of at least £4.7 billion (in addition to any increases resulting from
the APS, the Credit Guarantee Scheme and any other government scheme, including
recapitalisation) by no later than 30 June 2009 and seeks to achieve a further
increase in its Core Tier 1 capital of at least £1.2 billion by 31 December
2009, in each case

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    subject
to market conditions.  If market conditions result in a failure to
increase total Core Tier 1 capital by these amounts in these periods, the
Treasury and the Participating Institution will discuss in good faith a suitable
extension to those periods taking account of such market
conditions.

    

    10.           Deferred
Tax Assets

    

    
      	
              (A)

            	
              The
      Participating Institution has agreed in principle that if (and only if)
      the Participating Institution accedes to the APS, its Deferred Tax Assets
      will be dealt with as described below.  The Treasury and the
      Participating Institution will work together prior to accession with a
      view to agreeing appropriate means of implementing the following
      principles, which will be reflected in the detailed provisions to be
      included in the relevant accession agreement.  For these
      purposes, any reference to the Participating Institution’s “Deferred Tax
      Assets” means any tax losses, allowances, credits or other tax benefits
      (including, for the avoidance of doubt, any trading losses, Schedule A
      losses, non-trading deficits on loan relationships, non-trading losses on
      intangible fixed assets, carried forward expenses of management, carried
      forward allowable losses for chargeable gains purposes, carried forward
      unrelieved foreign tax and carried forward eligible unrelieved foreign
      tax) which (but for the undertaking mentioned below) would arise for UK
      tax purposes to any member of the Participating Institution’s group in
      respect of any accounting period ending on or after 31 December 2008 and
      would be available for carry forward to any subsequent accounting
      period.  The relevant principles are as
  follows:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Participating Institution (and each member of its group) will not claim,
      and (where relevant) the Participating Institution (and each member of its
      group) will disclaim, any Deferred Tax Assets, provided that such
      undertaking will not apply in respect of any Deferred Tax Asset which
      would (but for such undertaking) have first arisen in the Relevant Period
      or any subsequent accounting period.  For these purposes, the
      “Relevant Period” means the earlier of (a) the first accounting period
      beginning more than five years after the relevant accession date and (b)
      the first accounting period beginning after the relevant accession date in
      which the Participating Institution’s group becomes
      profitable;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              prior
      to accession, the Treasury will discuss in good faith with the
      Participating Institution whether any Deferred Tax Assets should be
      excluded from the undertaking mentioned above in order to address any UK
      tax issues arising for the Participating Institution (or any member of its
      group) from the implementation of any other aspects of the APS and/or any
      intra-group arrangements entered into by members of the Participating
      Institution’s group in connection with the implementation of the
      APS;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Participating Institution will (and will ensure that each member of its
      group will), at its own cost, promptly appoint a firm of accountants
      (approved in advance by the Treasury) to investigate and report on the
      amount of any Deferred Tax Assets which would (but for the above
      undertaking) be available to any member of the Participating Institution’s
      group in respect of any accounting period ending on or after 31 December
      2008, provided that this obligation
will

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              not
      apply in relation to the Relevant Period or any subsequent accounting
      period. Each such report is to be provided to both the Participating
      Institution and the Treasury; and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      relevant accession agreement will contain undertakings by the
      Participating Institution to ensure that the purpose of the above
      undertaking is not frustrated by actions taken by the Participating
      Institution or any member of its group (for example, by the Participating
      Institution’s entering into any transaction, arrangement or other action
      one of whose main purposes is to avoid or defer any UK tax liability which
      would otherwise have arisen, or the accrual or realisation of any income,
      profits or gains which would otherwise have arisen for UK tax purposes,
      against which any Deferred Tax Asset could (but for the undertaking
      mentioned above) have been set off, subject to such exceptions as may be
      agreed between the Treasury and the Participating Institution prior to
      accession).

            

    

     

    
      	
              (B)

            	
              The
      Participating Institution will (and will ensure that each member of its
      group will) promptly provide any information reasonably requested by the
      Treasury for the purpose of determining whether any Proposed Asset and/or
      any Deferred Tax Asset arises (or has arisen) from any transaction,
      arrangement or other action one of whose main purposes is to avoid or
      defer any UK tax liability or the accrual or realisation of any income,
      profits or gains for UK tax purposes.  Without limitation, the
      Participating Institution will (and will ensure that each member of its
      group will) authorise H.M.  Revenue and Customs to disclose to
      the Treasury any relevant information set out in any tax returns or
      related claims, elections, notices or other correspondence, including any
      notification submitted by any member of the Participating Institution’s
      group pursuant to Part 7 Finance Act
2004.

            

    

     

    11.           Commitment
regarding deleveraging activities

    

    At or
around the same as this Deed Poll, the Participating Institution has agreed
certain commitments in relation to its lending activities, including commitments
in respect of financing facilities to be made available to “Large Corporates”
(being UK businesses with a turnover which is
typically in excess of £500 million) (the “Large Corporate Lending
Commitment”).  The Participating Institution will inform the
Department of Business, Enterprise and Regulatory Reform prior to making
significant reductions in the level of lending being made available to existing
Large Corporate borrowers or counterparties (where such borrowers or
counterparties are creditworthy and meet the Participating Institution’s
ordinary course commercial and risk assessment criteria).

    

    12.           Servicing
of assets

    

    The
Participating Institution shall use its best endeavours to continue
to:

    

    
      	
              (A)

            	
              ensure
      that internal services within the Participating Group (including, without
      limitation, IT, accounting, audit, tax, legal, compliance and
      administrative) reasonably required for the management of the Proposed
      Assets are provided: (i) on a basis which is no less favourable than the
      basis upon which services are provided to non-APS
  assets,

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (including,
      without limitation, with regard to the level and quality of such
      services); and (ii) in accordance with: (1) usual business and banking
      practices as a prudent banking
institution;

            

    

     

    
      	
              (B)

            	
              dedicate
      sufficient staff (with the requisite qualifications) to the management of
      the Proposed Assets to ensure compliance with the Pre-Accession
      Undertakings; and

            

    

     

    
      	
              (C)

            	
              ensure
      that such other resources are deployed in the management of the Proposed
      Assets as are necessary to comply with the Pre-Accession
      Undertakings.

            

    

     

    The
Participating Institution shall provide written notification to the Treasury
promptly after the execution
of any contract pursuant to which any third party (other than a member of the
Participating
Group) will manage any of the Proposed Assets.

    

    13.           Public
disclosure

    

    The
Participating Institution understands that the Treasury will not publicly
announce the details of the Pre-Accession Undertakings.

    

    14.           Confidentiality

    

    The
Participating Institution’s disclosure obligations hereunder will be subject to
any confidentiality obligations imposed on it by applicable law or regulation
and (to the extent in existence at the date of this Deed Poll) contractual
limitations on the Participating Institution’s or any member of the
Participating Group’s ability to disclose information, save to the extent that
compliance with any such obligation or limitation can be achieved by anonymising
data or information to preserve customer confidentiality.  If
requested by the Treasury, the Participating Institution shall demonstrate to
the Treasury’s reasonable satisfaction the existence (and details) of any such
obligation or limitation which results in the Participating Institution being
unable to provide any confidential information which it would otherwise be
required to provide hereunder.

    

    Confidential
information or data provided to the Treasury (or its Representatives) pursuant
to this Deed Poll will be subject to the confidentiality agreement entered into
between the Participating Institution and the Treasury on 17 February
2009.

    

    The
Treasury will have regard to any commercial sensitivities of the Participating
Institution in relation to the sharing of any information under this Deed Poll
(for example, where any Representative who receives information is a competitor
of the Participating Institution).

    

    15.           Non-Wholly
Owned Entitles

    

    It is
acknowledged that there are entities within the Participant’s Group which are
not wholly-owned (directly or indirectly) by the Participating Institution (such
entities being “Non-Wholly Owned Entities”).  The obligations of the
Participating Institution under this Deed Poll to ensure compliance with the
Pre-Accession Undertakings by any Non-Wholly Owned Entities shall be limited to
the Participating Institution using its best endeavours to procure compliance by
such Non-Wholly Owned Entities.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    16.           Miscellaneous

    

    16.1         Representations
and warranties

    

    The
Participating Institution represents and warrants that:

    

    
      	
              (A)

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

            

    

     

    
      	
              (B)

            	
              it
      is duly organised and validly existing under the laws of its jurisdiction
      of organisation, and the execution of this Deed Poll and the carrying out
      its obligations, and the undertakings given by it, hereunder have been
      duly authorised by all necessary action, and no other act or proceeding,
      corporate or otherwise, on its part is necessary to authorise the
      execution of this Deed Poll or the carrying out its obligations, and the
      undertakings given by it, hereunder;
and

            

    

     

    
      	
              (C)

            	
              it
      has duly executed and delivered this Deed
Poll.

            

    

     

    16.2         Costs

    

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

    

    16.3         Remedies

    

    The
Participating Institution acknowledges and agrees that:

    

    
      	
              (A)

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

            

    

     

    
      	
              (B)

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

            

    

     

    
      	
              (C)

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

            

    

     

    16.4         Invalidity

    

    If any
provision of this Deed Poll shall be held to be illegal, invalid or
unenforceable, in whole or in part, under any enactment or rule of law, such
provision or part shall to that extent be deemed

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    not to
form part of this Deed Poll but the legality, validity and enforceability of the
remainder of this Deed Poll shall not be affected.

    

    16.5           Variation

    

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

    

    16.6           Governing
law

    

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    IN WITNESS WHEREOF this Deed
Poll has been executed and delivered as a deed on 26 February 2009.

    

    
      	
              The
      Royal Bank of Scotland plc

            	
              )

            	
              By:  /s/ J.M.
      Hill                                                    

            
	 
      	
              )

            	 
      
	 
      	
              )

            	
              duly
      authorised by power of attorney to act as

            
	 
      	
              )

            	
              attorney
      on its behalf in executing and delivering

            
	 
      	
              )

            	
              this
      Deed Poll

            
	 	 	 
	 	 	 
	 	 	 
	
              /s/
      Robert J. Elliott

            	 
      	
              Name:

            	
              Jennifer M.
      Hill                                         

            
	 
      	 
      	 
      	 
      
	
              Robert
      J. Elliott

            	 
      	
              Title:

            	
              Attorney

            
	
              Solicitor

            	 
      	 
      	 
      
	
              London
      EC2

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